Memorandum from Acting Secretary of State Dean Acheson to President Harry S. Truman, with Attachment

DEPARTMENT OF STATE WASHINGTON August 7, 1946 MEMORANDUM FOR THE PRESIDENT SUBJECT: Greek Economic Mission 1. In January 1946 the Export-Import Bank signed an agreement with Greece for a $25 million loan. At the same time the American Ambassador in Athens delivered to the Greek Government a note that had been approved by you, pointing out the urgent need for the Greek Government to take immediate and energetic measures to solve its economic difficulties. 2. Up to the present time the Greek Government has not used any of the $25 million credit made available to it near- ly eight months ago. The information available to the Depart- ment indicates that the Greeks have not taken effective meas- ures to deal with their internal financial difficulties, or to make the most effective use of the foreign assets already available to the country. 3. Early in July the Greek Prime Minister indicated to our Ambassador in London that he would like to send a mission to this country to discuss an additional Export-Import Bank loan. The Department, after consultation with the Export- Import Bank, replied that the time was not opportune to dis- cuss a further loan, but that a mission to discuss the general Greek economic and financial situation would be welcomed. Our Ambassador in London conveyed this information to the Greek Prime Minister, and made clear that under present conditions there was no prospect of a new Export-Import Bank loan at this time. 4. The mission, however, in its early conferences with the Department has requested a new Export-Import Bank loan of $175 million, and urged the necessity of such a loan to prevent economic and political collapse. 5. UNRRA to July 31, 1946, provided $293 million of free assistance to Greece, and this assistance by the end of 1946 will total approximately $358 million. The Department, NATIONAL after RECORDS is o SERVICE"