868.51/4–2145: Telegram
The Ambassador in Greece (MacVeagh) to the Secretary of State
[Received April 25—7:30 a.m.]
412. I have been informed that Ambassador Leeper and the British Financial Advisor yesterday had a meeting with Prime Minister Voulgaris and Finance Minister Mantzavinos during which my British colleague recommended that the Prime Minister instruct Mr. Varvaressos to return to Athens as soon as possible in order that his advice on meeting the internal financial problems might be avoidable [available?] to the Greek Government.15 It is understood that both the Prime Minister and the Finance Minister agreed that this should be done and that Mr. Varvaressos should not attend the San Francisco Conference.
The British Ambassador left with the Prime Minister an informal note pointing out that the British Government is anxious that the present Greek Government remain in power until the plebiscite16 but that its ability to do so would be prejudiced if the internal financial situation deteriorated. The note went on to suggest that the Minister of Finance be instructed, “in his discussions with the United States and British financial advisors,” to consider the possibilities of increasing the tax revenues of the State and reducing Government expenditures.
The Finance Minister issued a statement to the press yesterday in which he said the financial position of Greece is not one to cause alarm and that the exchange rate will not be altered. (Reference Embassy’s 401, April 19, noon).17 Yesterday the price of the gold sovereign fell to 8,200 drachmas and dollar currency to 350 drachmas per dollar.
Patterson requests the Secretary of the Treasury be informed of the above.
Needless to say, in compliance with the Department’s 242 of March 20, 7 p.m., this Embassy has not established a joint committee with the British to advise the Greek Government on financial matters, but is offering only informal information and advice as may seem in its own judgement to be appropriate. Nevertheless the British are locally losing no opportunity to create the impression of joint responsibility [Page 212] and the above gratuitous reference to American advisors in a British note would seem a part of this effort.
- In telegram 398, April 17, 1945, 4 p.m., the Ambassador in Greece reported that Mr. Varvaressos had agreed to accept the post of Minister of Coordination to coordinate the activities of the economic ministries (868.002/4–1745).↩
- For documentation concerning the political situation in Greece, see pp. 98 ff.↩
- Not printed.↩