800.00 Summaries/1–846: Telegram

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


24. Tsouderos memorandum2 received by Emb London declares Greek financial reconstruction plan prior necessity to stable currency program while British view vice versa. Memo asserts Greece must go beyond its means in providing for restoring economy and since hope for adequate reparations from Paris Conference3 has failed, must obtain funds either from taxation, which would jeopardize expanding production, or outside loans in credit or cash. Financial help is thus prerequisite to stable currency and sound economy, and would have steadying psychological effect on Greek population. Memo apparently expects some outside control of Greek economy as condition of financial help. Tsouderos also asks improvement of distribution and increased amount of UNRRA supplies. Finally, balancing of budget depends on sound functioning of Greek economy and currency stability. Memo concludes with summary of prospective extraordinary expenditures and reasons for impossibility of greatly increasing revenue to meet them.

  1. Memorandum by Emanuel J. Tsouderos, Greek Deputy Prime Minister and Minister of Coordination, presented to the British Government on January 2, 1946.
  2. The Paris Conference on Reparation met from November 9 to December 21, 1945; for documentation on this subject, see Foreign Relations, 1945, vol. iii, pp. 13571506, passim.