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United States Department of State / Foreign relations of the United States, 1947. The Near East and Africa

United States economic and military aid to Greece and Turkey: the Truman Doctrine,   pp. 1-484 PDF (184.7 MB)

Page 4

   As alternative, suggestion might be made to Turks that they engage
 services experienced US firm of consulting engineers to carry out
 economic survey. Govt Iran just signed contract with Morrison-
 Knudsen construction firm which is sending consulting group Iran
 consisting seven or eight experts to study irrigation, dams, agriculture,
 transportation, power and fuel, industry, mining and communications,
 submitting detailed report within six months. Total cost $100,000.
 Report to have as specific object presentation carefully planned case
 for additional Eximbank or Int Bank loan.
 If idea appeals suggest you discuss informally with FonOff.
 Thought should be put forward as your own rather than as coming
 from US Govt. Stress importance expert preparation request for loan
 and try to direct Turk attention to Int Bank which was organized
 for express purpose financing development. You might point out Int
 Bank has not yet committed resources and so has greater lending poten-
 tial for Turkey. Early regularization Turk position Int Bank
868.00/1-1147: Telegram
The Ambassador in Greece (lacIVeagh) to the Secretary of State
SECRET                         ATHENS, January 11, 1947-3 p. m.
  30. At request of Prime Minister I am cabling in next following
message essential parts of his reply to my letter of January 7 ( mytel 23,
January 8 1). Dept will note that he "now deplores" that internal
Greek political questions were untouched during Washington talks,
which I also feel unfortunate. Dept will likewise observe that he lays
reluctance of opposition leaders to cooperate with him in formation
of broadened government chiefly to "difficult economic and financial
conditions of country" and that he expresses hope that prompt US
aid will overcome this. I long ago informed Dept that belief in collapse
of Tsaldaris as result lack of foreign support has been factor in creat-
ing offishness of opposition (mytel 1505, November 4, 1946 2 and pre-
vious), but I see no reason to accept recent suggestion of British
Foreign Office to, Norton 3 that Prime Minister himself has been
seeking [in] blackmailing fashion, to condition broadening of govt
on prompt receipt of US aid. On contrary, his repeated efforts before
  Not printed; it reported that the letter, which gave the gist of Department's
telegram 8 of January 3, had been sent to the Prime Minister and a copy to
King's political adviser (868.00/1-847).
  2 Not printed.
  8 Sir Clifford John Norton, British Ambassador in Greece.

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