CABINET MEETING, MARCH 7, 1947
(add Adm. Leahy)
PMG
Agri - absent
THE PRESIDENT
Will take up Greece. Asked Steelman to clear other matters first.
STEELMAN
OPA - OTC - out of business shortly because of Congressional action on appropriations.
THE PRESIDENT
Would like to veto. What would result -
TREAS.
Would affect veterans and other operations.
THE PRESIDENT
Well, how about signing bill and not pay any attention to Congress - continue functions under existing law.
GEN FLEMING
Recommends this course and say we will go on until job can be done somewhere else - controls on materials, transfer to Housing Expediters office for example. Now debating sugar controls be transferred to Agriculture. Are giving (Congress) thought to putting rent control in Courts and records in Commerce.
COMMERCE
Situation changing so fast that each Cabinet officer be instructed to dig in and eliminate controls as quickly as possible.
STEELMAN
Selective Service - liquidation plans now being given study.
PATTERSON
In favor of maintaining records in state headquarters but not at local level. Will have to set up new organization in event of approval of universal training.
THE PRESIDENT
Approves this suggestion.
FORRESTAL
Agreed with Patterson.
THE PRESIDENT
Greece and Turkey - about a week ago had the matter before Congressional leaders - asked Acheson to outline situation.
ACHESON
We have contributed $450,000,000 to Greece. British have also contributed. Complete disintegration of Greece is only a matter of weeks.
Turkey is much better off - is a good risk if peace is maintained. Russian war of nerves campaign has caused maintenance of too large an army. British are seeking to aid Turkey by improving efficiency of Turkish army and reducing military manpower.
We have been seeking to get treaties with Russia so that we could get Russian troops out of Germany. Russians have been moving to encircle Turkey and Germany through satellite nations.
Greece is key to encirclement movements in France, Italy, Hungary and Turkey.
While this has been going on the British have been weakening in economic structure. A crisis has now occurred - if we go in we cannot be certain of success in Middle East and Mediterranean. If we do not go in there will be collapse in these areas. There is possibility of military risk but it is doubtful if this will occur.
THE PRESIDENT
The decision is to ask Congress for 250 million and say this is only the beginning. It means U. S. going into European politics. It means the greatest selling job ever facing a President. Wants opinions of Cabinet.
TREASURY
Is convinced we will have to take this step but with assurances that other necessary steps must be accomplished.
(2) We must be prepared to answer charges that we are saving British interests and will return the area back to British if our activity is successful.
PATTERSON
It would be peril to U. S. to have Western Europe under Russian influence. We should step in but present Greek government should be cleaned out.
CLARK
We should do everything possible to stop spread of Russian influence.
FORRESTAL
Decision is clear. It is a question of method by which it is to be carried out.
(2) There are nuclei of strength in Europe - Belgium is one,
(3) We must draft the top businessmen to sell the program. The Govt can't do it alone.
(4) We cannot have a half-hearted approach.
KRUG
Agrees we must go in. It is primarily an economic problem. We should organize a high powered board. However, our decision in pulling out of China is in conflict with this approach.
ACHESON
Fundamentals of problems the same. The incidences are different.
THE PRESIDENT
Chiang Kai-shek will not fight it out. Communists will fight it out.- they are fanatical. It would be pouring sand in a rat hole under present situation.
LEAHY
Marshall has hopes for China at later date when we may assist China with a degree of success but not now.
COMMERCE
In 1943 Stalin double crossed Churchill on the agreement with Greece. There is not a doubt as to decision now. Cited Dutch boy dike story - 200 million is just a finger. We must rebuild the dike.
Agrees that half dozen top men to work this out must be drafted.
Greeks were first to fight Fascists. Any loans must be controlled but loans alone will not do the job. The application of loans is to be the deciding factor. It must be a major job in a small situation. It will have great effect on what will happen in China.
ACHESON
We will have to say that Greeks carry out certain economic controls. We will have to do things which will not make us popular in Greece.
HARRIMAN
We will not be popular with those in control now but we will with the rank & file of the Greek people.
SCHWELLENBACH
We are faced with the charge that we are saving the British life line.
THE PRESIDENT
The job is to get the facts to the country to get the support necessary. We can't afford to revive the isolationists and wreck the United Nations. Suggests OWMR advisory group.
STEELMAN
Is afraid they would not get the job done.
THE PRESIDENT
Maybe we should create new board.
HARRIMAN
Should draft the men to work with State Dept. Felt all along that the British have over-played their hand. The British situation should be carefully studied and we can then make our own conclusions.
THE PRESIDENT
Snyder, Harriman, Forrestal, Schwellenbach, Steelman and Anderson should get together and get a board set up.
LEAHY
Agreed with the decisions. It will work toward a major war - or a bobtail flush will cause the Russians to capitulate. Unless we have a govt in Greece with which we can work -
The people of the U. S. should be brought in and told - it is Communism or free enterprise.