868.00/9–345: Telegram

The Ambassador in Greece (MacVeagh) to the Secretary of State

962. Varvaressos submitted resignation as Vice Prime Minister Sept 1 and despite efforts Regent62 and British colleague persuade him reconsider remains adamant. Has made no public statement explaining step but according British colleague is personally very bitter, charging he has been “ganged up on” chiefly by industrialists, later joined by Leftists in opportunist effort to exploit situation (see my telegram 941, Aug 3063). Thinks his resignation will be “severe shock” resulting economic chaos and subsequent recall his services.

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Govt undertaking to stabilize situation so as not to prevent Regent’s going London.64 Has given statement to press that economic policy remains unchanged. Plans appoint new men supply and broaden Advisory Economic Committee perhaps with additional Leftist members, meanwhile trusting to assurances by industrialists that objections to Varvaressos not against policy but against method by which applied.

[
MacVeagh
]
  1. Damaskinos, Archbishop of Athens and Primate of Greece.
  2. Not printed.
  3. The Regent arrived at London on September 6; see telegram 9163, September 7, 7 p.m., from London, p. 154.