Telegram from James Kelley to Secretary of State George Marshall

NAJ pp INCOMING TELEGRAM Fork DEPARTMENT OF STATE-DIVISION OF COMMUNICATIONS AND RECORDS TELEGRAPH BRANCH 9-N A Action: NEA Control 8397 Info: SS Rec'd November 29, 1947 UE 7:13 p.m. C FROM: Athens AA AP TO: Secretary of State UGT LE NO: 2060, November 29, 6 p.m. iTP OFD Tsaldaris asked Griswold and me call on him November 25 DCR He began conversation by expressing deep concern over whole situation in Greece. Said it strikes him that things are moving much too slowly; by the time recommendatione are made and acted upon measures too often prove inade- quate. Speaking frankly he saia many actions seem to be taken without full knowledge their implications or rami- fications. Cited this connection question balancing of budget which while necessary must be done with due regard inter-relationship of various factors. Also expressed conrern over limited powers Griswold saying that when they first met in Washington and he learned that Griswold would be made "High Commissioner" with full powers over aid pro- gram he was at first concerned as a Greek that any one man should be given such authority in his country but af- ter thinking matter over had reached conclusion that only thus could situation be saved. In practice, however, it seemed this has not been case and not only has Griswold only limited authority make decisions but his recommendations are not promptly approved by Washington. Gave as example inability of AMAG after two weeks effort to obtain decision re exchange of napoleons for sovereigns. Further example delay was long time consumed in ob aining approval recom- mendation give operational advice Greek Army and still further delay in implementation decision. Tsaldaris then went on discuss seriousness gold situation. Said Greeks, if absence consumers goods for purchase, put available money into gold, only commodity in which they have faith. This causing increase in price gold coins and con- sequent increase in prices. Said "orthodox" economists evidently unable understand situation in Greece which is entirely unorthodox. Gold is bought and sold here as com- modity. People not only demand gold but they demand one kind of gold--sovereigns--and one kind of sovereign "the old lady, (meaning Victoria soveriegns). In reply DECLASSIFIED TRUMAN Griswold's E.O. 12065, Sec. 3-402 State Dept. Guideline, June 12, 1979 S. ARCHIVES **ATIONAL SERVICE" RECORDS AND John By NLT: HC NARS, Date 10-20-60 Es INFORMATION COPY