868.2222/4
Memorandum by the Greek Prime Minister (Tsouderos) Concerning Financial Problem67
The Greek public expenditure increases daily for the following reasons:
- a)
- Our armed forces are constantly increasing by the continuous addition of new volunteers escaping from Greece. It is to our interests, both for Greece and the Allied cause, to strengthen our armed forces to the highest degree. The armament, equipment and maintenance of the Army, Navy and Air Forces, are taken care of by Great Britain through a system similar to the Lease-Lend. However, all other expenditures of the armed Greek forces—salaries, etc.—burden the Greek budget. Today the monthly expenditure for this purpose approximates 200,000 Pounds.
- b)
- The needs for relief of the refugees (women and children) are substantially increasing daily because, due to starvation the inhabitants escape, especially from the Greek Islands, coming to the Middle East. The expense for their support burdens us, because the help of the Red Cross in this direction is limited. I estimate the yearly expenditure for the support of the refugees who have arrived up to this time, at 200,000 Pounds. In addition to this, one can add the expense required for the evacuation of the children from Greece, should this materialize.
- c)
- The expense for revictualling Greece, for the most part, is also the burden of the Greek Government. Up till now, the foodstuffs sent from Turkey were paid for by the Greek War Relief. [Page 799] It seems, however, that the means of this Organization are not adequate to continue these payments. Consequently, the Greek Government will have to continue, as a guarantor, to make these payments.
To meet such large expenditures, Greece has limited income—namely, whatever she collects annually from our mercantile marine, or from taxes, or from sharing in freight receipts. This amount does not exceed by a great margin yearly the amount of 1,800,000 Pounds. This income is daily diminishing due to the loss of boats through torpedoing.
The Greek Government still has on deposit a balance which is a little over two million pounds.
From the above statements, it follows that the Greek Government will soon find itself facing financial difficulties unless the expenditures for the refugees, the evacuation of children and of the sending of foodstuffs to Greece will be met either by money provided by philanthropic organizations (Red Cross, etc.) or by credits in dollars based on the system of Lease-Lend.
On the above matters, we should appreciate Your Excellency’s counsel.