868.01/8–2747: Telegram
The Ambassador in Greece (MacVeagh) to the Secretary of State
1471. Tsaldaris called on me last night and in great agitation handed me memo given him by Stephanopoulos and purporting to be résumé of remarks made to latter by Griswold1 regarding proposed formation by Tsaldaris of government with Zervas and Gonatas. Memo, allegedly approved by Griswold, said such narrow government would be “inadmissible” because of bad impression on US public opinion [Page 319] and harmful effect in forthcoming GA. Added it would prevent AMAG from authorizing further intervention in support of drachma, since weakness would be due political factors, and would also result in suspension of AMAG construction program and in restriction of imports, except food, pending final evolution situation. Finally stressed Congressional sentiment in favor broad government and desirability of forming such government before forthcoming Congressional visits.
On basis this memo, Stephanopoulos told Tsaldaris he could not support proposed government. (Though not party leader, former’s attitude likely influence considerable number Populist deputies.)
Tsaldaris demanded to know whether Griswold speaking for US Government in declaring that a Greek Government constitutionally formed and accepted by Parliament would be “inadmissible”. Said he confused as to position Griswold, since Department had informed him Griswold “High Commissioner”, and if this so, asked “Where does Ambassador come in?” Excitedly added, “Does this mean you declare war on us?” I begged him be calm, and telephoned at once for Griswold. Latter did not deny essential accuracy of memo but agreed he had not meant narrow government would be “inadmissible” but only that it would be inadvisable since it would interfere with effectiveness of US aid program.
At Tsaldaris’ urgent request to correct the record, I incorporated this statement of Griswold’s in brief letter2 to Tsaldaris in which I also referred to our policy of non-intervention in details political affairs and reiterated my advice to continue seek broadest possible government. Tsaldaris accepted this oil on troubled waters, and letter contains nothing to indicate support of his efforts as distinguished those of others.
While I of course agree with Griswold as to undesirability of narrow government and have done and am doing all possible to secure broadening, I feel that any indication that we might fail to support duly constituted government or any threat of applying sanctions if such government not according our wishes, would be inadvisable and believe Department will take same view.