Special Message to the Congress Transmitting Report on Assistance to Greece and Turkey.

[Released November 10, 1947. Dated November 7, 1947]

To the Honorable the President of the Senate pro tempore and the Honorable the Speaker of the House of Representatives:

Last May the Congress enacted Public Law 75 enabling the United States to render financial, technical, and material aid to the Governments of Greece and Turkey. This was done in response to urgent appeals by those governments, which found that as a result of conditions arising out of the war their respective economies were unable to bear alone the financial burdens of reconstruction, of providing supplies for the civil population, even on a subsistence level, and of supporting the armed forces essential for the maintenance of security.

By Executive Order 9857, dated May 22, 1947, primary responsibility for the program's execution was delegated by me to the Secretary of State. The Department of State enjoys full cooperation of all other departments and agencies of the Government which can help in the implementation of the act.

Pursuant to the provisions of the act, I am submitting this, the first quarterly report on the activities and expenditure of funds under the authority of the act.

The economic situation in Greece has not basically improved since I addressed the Congress last spring about the need for American assistance. Although economic collapse, which might otherwise have resulted, has so far been averted through the extension of our aid, underlying causes of economic and political unrest remain of grave concern.

This first period of administration of the act has been largely one of preparation. Missions have been assembled and sent to Greece and to Turkey and are now working with the respective governments of those countries to assure effective and proper use of American aid funds. While many operational steps of major importance have been taken, such as the letting of contracts and the ordering and delivery of supplies, the effects of many of these actions will not be discernible until later in the fiscal year. The enclosed report reveals in some detail the action that has been taken thus far and some of the problems which have yet to be solved.

Since the time when the amount of assistance needed was determined, there have been several unfavorable developments which materially affect both programs but most seriously that for Greece. The Greek cereals harvest has been reduced by the general European drought, and by guerrilla activity, to a point where the expenditure of foreign exchange for food imports will be a great deal more than originally estimated if hunger and starvation are to be avoided. Intensification of military operations in that country has necessitated a transfer of funds from the economic to the military program. Rising prices in the United States and elsewhere have reduced the buying power of foreign exchange available to the Greek Government, with the effect that greater sums than were anticipated must be spent for minimum basic essentials. An added factor in Greece is that exports have not, because of internal economic and security conditions, reached as high a level as might reasonably have been expected some months ago.

The difficulties which hamper the success of this program must be overcome. Continuation of marginal subsistence only in Greece, without real progress toward recovery, will provide fertile ground for totalitarian ideologies.

Our Missions in both countries are striving to achieve one main objective--that of helping free peoples in their effort to maintain the form and composition of their governments in accordance with the wishes of the majority. If this end is attained, every dollar that we have or will put into Greece and Turkey will have been fully justified. The United States, in accordance with its obligations under the United Nations Charter, will have served all peace-loving nations of the world in contributing to the security and well-being of a vital area, which, under circumstances of economic collapse and disorder, would threaten peace and tranquillity throughout the world.

HARRY S. TRUMAN