GREEK DESIRE FOR MILITARY ASSISTANCE ON MOST FAVORABLE TERMS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90B01370R000300420016-6
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: November 30, 2010
• Sequence Number: 16
• Publication Date: January 16, 1984
• Content Type: CABLE

Sanitized Copy Approved for Release 2011/03/04 :CIA-RDP90B01370R000300420016-6
OLL/LD
INCOMING
PAGE 001
TOR: 1621322 JAN 84 ~
RR RUEAIIB
ZNY CCCCC ZOC STATE 2ZH
STU 1951
RR RUEHC
DE RUEHTH N0679 0161600
ZNY CCCCC ZZH
R 1615592 JAN 84
FM AMEMBASSY ATHENS
TO RUEHC/SECSTATE WASHDC 0891
INFO RUEHAK/AMEMBASSY ANKARA 3704
RUEHTH/AMCONSUL THESSALONIKI 5326
BT
CONF IDENT IALATHEN500679
E.O. 12356: DECL: OADR
TAGS: MASS, MARR, GR, TU, US
SUBJECT: GREEK DESIRE FOR MILITARY ASSISTANCE ON
- "MOST FAVORABLE TERMS"
REF: (A) STATE 9697 (1218972 JAN 84), (B) ATHENS
- 350 (1014'302 JAN 84 )
2. AMBASSADOR PAPOULIAS' JANUARY 10 PLEA FOR FMS
ON 'THE BEST POSSIBLE TERMS (REF A) FELL FAR SHORT
OF THE REMARK MADE BY DEPUTY FOREIGN MINISTER
KAPSIS THE FOLLOWING DAY TO CODEL ADDABBO (REF B).
KAPSIS, WHO IS GIVEN TO HYPERBOLE, WAS LEFT IN NO
DDUBT DURING THE DECA NEGOTIATIONS THAT MAP IS
NOT IN THE CARDS FOR GREECE AND THAT NEITHER THE
EXECUTIVE BRANCH NDR CONGRESS LOOKS ON BALANCE
IN THE AEGEAN AS A QUALITATIVE RPT QUALITATIVE
MEASURE FOR PURPOSES OF DETERMINING MILITARY AID
PROGRAMS FOR GREECE AND TURKEY.
3. WE SUSPECT THIS LATEST GREEK THRUST WAS
GENERATED BOTH BY INCREASING CONCERN OVER THE
COUNTRY'S STRAITENED ECONOMIC CIRCUMSTANCES AND
BY RECENT PRESS REPORTS ABOUT A SHIFT IN AMERICAN
MILITARY ASSISTANCE THINKING THAT WOULD DRO-
GRE552VELY REPLACE FMS WITH GRANT AID IN PART TO
RELIEVE RECIPIENTS OF BURDENSOME REPAYMENT OBLIGATIONS.
(WE HAD SEEN NOTHING OFFICIAL ABOUT SUCH A
4. AS WE SEE IT, THE U.S. SIDE LETTER OF SEPTEMBER 8
THAT ACCOMPANIED THE DECA, IN STATING THE USG
INTENTION "TO MAKE AVAILABLE SUCH FINANCING ON TERMS
PARTICULARLY FAVORABLE TO GREECE," WAS SIMPLY UNDER-
TAKING TO OFFER THE SAME TERMS AS WE HAVE IN THE
PAST, I.E., TEN-YEAR GRACE PERIOD AND TWENTY-YEAR
REPAYMENT PERIOD AT THE MOST FAVORABLE PREVAILING
INTEREST RATE. (WE UNDERSTAND THIS TO BE THE BEST
OFFERED TO ANY OF OUR FMS RECIPIENTS.) THE
TERMS "SUCH FINANCING" IS OF COURSE A CLEAR
REFERENCE TO FMS AND CANNOT BE INTERPRETED BY THE
GOG OTHERWISE. IF CONGRESS WERE IN FACT TO
nnn~c ~ nc~~-r ~ w ~
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CONFIDENTIAL
84 3124126 SCR PAGE 002 NC 3124128
TOR: 1621322 JAN 84
APPROVE CONCESSIONARY TERMS FOR FMS, HOWEVER, WE
WOULD EXPECT THE GOG TO ARGUE STRONGLY THAT GREECE
DESERVES TO BENEFIT AS MUCH AS ANY OTHER RECIPIENT.
STEARNS
END OF MESSAGE CONFIDENTIAL
CONFIDENTIAL
Sanitized Copy Approved for Release 2011/03/04 :CIA-RDP90B01370R000300420016-6