868.51/5–847
Memorandum by Mr. George C. McGhee, Special Assistant to the Under Secretary of State for Economic Affairs (Clayton), to the Assistant Secretary of State for Occupied Areas (Hilldring)
Subject: State Department Plan for Implementing the Greek-Turkish Loan (Aid Program)
I have delayed replying to your memorandum of May 8 on the above subject pending further developments of the Greece–Turkey [Page 181] Aid program. We have, in the meantime, discussed this matter in the Interim Greece–Turkey Assistance Committee.1
With the passage of the enabling legislation without amendments restricting expenditures for any particular part of the program, it would appear that the Department has an edict to proceed with the expenditure of the initial $100,000,000 in accordance with the testimony presented before Congress.
I agree that there is some slight risk that the Appropriation Bill might earmark funds for particular purposes or exclude certain portions of the program. In this event programs started under the initial $100,000,000 would have to be altered and some dislocation might result. However, it is believed that this is a slight risk and one which we must take. We propose to allocate funds only as actually required to implement the various programs as they are developed, which will mean that funds committed to any particular program will be kept at a minimum.
- The Interim Greek Assistance Committee in the Department of State held its first meeting on April 8, 1947. It was renamed the Greece–Turkey Assistance Committee by the time of its second meeting two days later (Minutes of Meetings, 868.00/5–2647). The announcement by the Department of State setting forth the membership and functions of the Committee is printed in the Department of State Bulletin, April 27, 1947, p. 777.↩