Foreign Relations of the United States, 1947, The Near East and Africa, Volume V

868.51/5–2447: Telegram

The Secretary of State to the Embassy in Greece

secret
most urgent
niact

Washington, May 24, 1947—2 p. m.

697. Dept requested by Brit Embassy here to conclude understanding concerning arrangements for supply of equipment for Gk military forces. As background, UK covered foreign exchange costs, estimated 2 million pounds sterling, such supplies arriving in Greece between Mar 31 and Apr 30, out of Angellopoulos funds. However UK had made no provision for reimbursement arrivals after May 1.

Dept contemplates exchange of notes between UK and US establishing arrangement under which

A. Brit undertakes to continue furnishing minimum essential requirements Greek armed forces until American supplies arrive: (1) food consumption for 170,000 men through Oct 47; (2) minimum gasoline, fuel oil, ammunition and maintenance supplies on scale required by present Greek forces; and (3) such additional supplies which may be requested by US.

B. US would agree pay UK for supplies issued by Brit to Gk forces after May 22, 1947, effective date of Act. Such issues would include new arrivals after May 22 and issues from existing Brit stocks in Greece to which title had not passed to Gks before May 22 but would exclude initial equipment program 2 million sterling which we would expect Brit to continue to fulfill upon Gk demand and free of charge. Also excluded from payment would be other items which Brit had previously agreed to provide Gks free of charge and items covered by payment by Gks from advances made by Brit Govt (Angellopoulos funds).

Intent B relieve British financial burden for aid to Greek military after effective date of Act and assure arrival UK goods still undelivered to Greeks without, however, putting ourselves in position reimbursing British for supplies furnished Gk military from May 1 to May 22. Belief here that for most part arrivals UK supplies in Greece after May 1 would still be undelivered to Gks and in British stockpiles on May 22. Amount US liability re such stocks unknown but probably would not be large, say $5 to 8 million.

Notes would provide for clearance Gk requirements and Brit supply program by American missions as soon as practicable. Brit program could be amended by American mission. Dept will endeavor to secure Brit agreement that US not responsible financially for issues and arrivals not in accordance with amended program; but US would have to bear full financial liability including cancellation costs on new programs specified A above.

Notes would also provide representatives US and UK service departments work out accounting and reimbursement procedures in more detail later. US would request Brit keep detailed records ad interim.

UK Emb here pressing strongly for ‘assurance from US on basis of which it can continue Greek military supply program. Above proposal discussed here with representatives War and Navy. Dept requests your reactions before May 27 if possible.¹ Sent Athens as 697 repeated London as 2257.

Marshall

1. In telegram 775, May 27, the Embassy in Athens advised that the British military forces in Athens agreed in principle with the arrangements set forth in telegram 697. The Embassy further stated that it had no comment of its own to make. (868.51/5–2747)