868.51/4–2447
Memorandum of Conversation, by the Assistant Chief of the Division of Near Eastern Affairs (Jernegan)
| Participants: | Henry S. Villard, State Department |
| George M [C]. McGhee “ “ | |
| General J. K. Crain “ “ | |
| John D. Jernegan “ “ | |
| Rear Admiral Frank L. [Edmund T.] Wooldridge, Navy Department | |
| Captain G. A. Sinclair, Navy Department | |
| Captain M. M. Dupré, Navy Department | |
| Colonel T. W. Parker, War Department | |
| Lieut. Colonel Offer, War Department |
A group, which included all members of the SWNCC Subcommittee on the Near and Middle East, met as an ad hoc body to discuss problems affecting the preliminary allocation of funds as between the military, naval, and economic phases of the Greek-Turkish Assistance Program.
Admiral Wooldridge pointed out that the Navy Department had originally been given a tentative allocation of $10 million for its part in assistance to Greece, whereas present information indicated that [Page 150] twelve or twelve and one-half million dollars would be needed merely for maintenance and supply of the Greek Navy in its present form. In addition, it appeared that it would be necessary to furnish certain amphibious craft, at a cost of between $4 million and $5 million, which bad not been included in the original calculations. These craft would replace similar vessels now serving with the Greek Navy but which belonged to the British Navy and which the British had stated they must withdraw within six months. The Navy Department believed the Greek Navy would still need these vessels after the end of the six months period and it was therefore considered important that we be prepared to make replacements available. Since it was necessary to recondition the craft we would furnish, a task requiring some three months, the decision to do so could not be long delayed. In the light of the foregoing, the Navy Department felt that its preliminary allocation should be increased to about $17 million to enable it to make the necessary plans.
Colonel Parker stated the War Department’s view as being that there should be for the present no change in the original tentative allocations since it was still impossible to determine what the needs would be in the various phases of the program or the relative urgency of different categories of expenditures.
After discussion it was agreed by the group that the Navy’s preliminary allocation should be increased, tentatively, to twelve and one-half million dollars to cover logistic requirements and that a reserve fund of indeterminate size should be established out of the global amount of funds which would be available, this fund to be regarded as potentially including an additional $5 million for the Navy to cover the cost of supplying the amphibious craft if it should be determined that they were essential.
It was further agreed that the State Department should approach the British Government to see whether the British craft now serving with the Greek Navy could not be left on loan and so obviate the need for the U.S. to provide replacements.1 This approach was to ‘be based on the British assurance in their note of March 1[4], 1947 that the U.S. could continue to count upon British collaboration in supporting Greece and Turkey. Captain Sinclair was to provide the necessary factual information for the State Department’s action. It was further suggested that if the British refused to extend the loan of the craft in question, they might be asked to sell them, the thought being that this might be a cheaper and more expeditious method of assuring their use to the Greek Navy than to recondition laid-up American craft.
[Page 151]It was pointed out that preliminary administrative cost estimates were urgently needed for planning purposes in connection with the Greek program as a whole and that it was also important to decide quickly how the initial $100 million to be obtained under the Greek-Turkish bill from the RFC should be allocate!. With respect to this latter question, it was explained that we cannot be sure when the appropriations committees will approve the full $400 million figure and that this may easily not occur before July 1. Meanwhile it was essential to take care of the urgent needs of Greece.
It was agreed that the three Departments would each make estimates of their respective administrative costs in connection with the program, including costs attributable to the Turkish program, for the period ending July 1. It was further agreed that each Department would draw up a list of “must” expenditures and another list of “priority” expenditures for the period ending July 1.
A further meeting, not necessarily composed of the same persons, should be held in the next few days to correlate these estimates and arrive at agreed figures for administrative and other allocations.
- According to a marginal notation by Mr. Villard, Captain Sinclair later notified the Department that the Navy would approach the British Government on this matter.↩