Athens Embassy Files: Lot 5SF7: 420 Greek Army
The Embassy in Greece to the Greek Ministry of Foreign Affairs
No. 205
Aide-Mémoire
The Embassy acknowledges the unsigned Aide-Mémoire dated December 18, 1950,1 requesting increased U.S. military aid to defray [Page 441] partially the drachmae costs for the maintenance of the Greek military establishment.
The Embassy is aware of the many hardships suffered by the Greek people in her effort to stem communistic aggression, and of the great spirit shown in her contributions to the cause of the UN in Korea. Moreover, the United States government is cognizant of the requirement to curtail the reconstruction program, and the development in international affairs necessitating an augmentation of the military establishment in order to maintain security.
Nevertheless, it must be appreciated that conditions similar to these exist in many parts of the world, and that the U.S. Government has assumed tremendous responsibilities, financially and otherwise, to assist the peoples of these nations. In this connection, it is unnecessary to belabor the question of exorbitant expenditures made by the U.S. Government during this period of world need to bring relief and assistance to so many countries less fortunate.
The question of singling out any one country for special consideration or treatment, as proposed, does not afford full recognition of the worldwide problem, although it is believed Greece is now receiving special treatment among the nations receiving financial assistance from the U.S., and the question of further increasing aid to Greece must be considered as a part of an overall financial plan.
Subsidiary to the larger plan must be considerations of self-help, and it is unrealistic to take any one segment of the problem, such as military assistance, without analyzing the total problem. In other words, military aid, ECA aid, and the Greek government’s own tax returns must be combined to present an analysis of the problem having to do with the cost of maintaining civilian and military establishments. With this basic principle in mind, the financial plan which has been prepared, based on the current level of ECA and military aid, provides appropriate allowance for the military strengths2 mentioned in your Aide-Mémoire. It is not seen that the situation has changed to a degree which would justify an upward revision of assistance from the U.S. It is believed that Greece should pursue its best efforts to obtain revenue through the medium of tax assessments and collections to fully assume its responsibility in this respect.
Reference is made to the serious concern of the American tax-payer and the pressure under which he is presently subjected by virtue of the extraordinarily high taxes imposed on him to meet the U.S. government’s commitments throughout the world. Please be assured, however, that the interests of the Greek people are constantly before the [Page 442] attention of the U.S. government in connection with the determination of further assistance which may be forthcoming.