868.51/1659: Telegram
The Ambassador in the United Kingdom (Winant) to the Secretary of State
[Received September 17—5:46 p.m.]
5202. Department’s 4138, August 29, 2 p.m. According to the Foreign Office the present financial relations between the British Government and the Greeks are as follows:
- 1.
- An agreement between the British and Greek Governments was signed on March 9, 1942, under the terms of which the British Government agreed not to claim reimbursement for cost of the equipment and maintenance of the Greek Armed Forces nor for the supply of war material. This means in effect that the Greek Government is being supplied by the British Government on lend lease terms with everything needed by the Greek Armed Forces insofar as this is available from the resources of the sterling area, except cash disbursements or advances for pay or for special purposes. The exact number involved is not known but it is estimated that the personnel of the Greek Army, Navy and Air Force in the Middle East is well in excess of 20,000.
- 2.
- Contributions toward Greek relief consist of wheat valued at approximately 300,000 pounds taken from British stocks in the Middle East and defraying the expense of chartering the Swedish ship Hallaren during the last 6 months in Swedish gold crowns at the daily rate of approximately 100 pounds.
- 3.
- Before the occupation of Greece the British Government advanced (a) 10 million pounds for purchases in the sterling area, (b) 35 million pounds for internal Greek needs and for covering an increase in note issue and (c) 5 million pounds for the purchase in the United States of certain essentials.
- 4.
- (a) Is practically exhausted; as the funds under (b) were sold to the Bank of Greece against drachma the Greek Government contends that the 27 million pounds which remain are not available. This may be discussed by the British and Greeks at some later date but for the present the Greek Government is self-sufficient in sterling, most of which it is deriving from shipping subsidies and taxation; it is now [not?] known how much remains of (c) but it is thought to be very little.
With reference to the Greek financial position in general, the Foreign Office comments that it is without doubt becoming tighter due to increasing expenditures for the chartering of Swedish ships for purposes of relief and for harbor disbursements connected with relief activities; increasing expenditures called for by the rapid growth of the Greek Armed Forces in the Middle East; and increasing expenditures made necessary by the arrival of larger numbers of refugees from Greece by devious routes.
[Page 804]The provision of sterling necessary for the Greeks, the Foreign Office states, is generally speaking regarded as falling within the province of the British. Foreign Office adds however that in view of increasing financial difficulties faced by the Greeks the British Government would be glad if the Greeks were given help in other respects from American sources.