868.00/4–1046: Telegram
The Ambassador in the United Kingdom (Winant) to the Secretary of State
us urgent
[Received April 10—4:17 p.m.]
3985. FonOff official today made following comments to us on Greek political situation:
1. Regency question is obscured by uncertainty as to King of Greece’s objectives. In his weekend message to Damaskinos King accepted Regent’s resignation “in principle” but asked him to stay on until, as he put it ambiguously, the necessary machinery for Regency had been formulated. Damaskinos finds this inacceptable as he wishes a clear-cut acceptance of his resignation or request from King to continue in office.
The King has all along maintained that Regency in its present form is unconstitutional because in his absence from Greece it is provided by constitution that Crown Prince exercise the royal prerogatives or else they be vested in Greek Govt. Certainly there is no question of Crown Prince returning and therefore it is possible that King wishes regency to be vested in Govt.
In connection with plebiscite, King has indicated to Britain that, in his belief, plebiscite should be held in September, for it would be impossible to hold it later this year and he feels that economic rehabilitation of Greece will never make headway until this complicated question is settled. FonOff official thinks it may be possible that King is trying to get his date for plebiscite accepted in return for his requesting Archbishop in clear language to remain as Regent.71
FonOff is puzzled by desire of Rightists, including King, for an early plebiscite because on figures shown by recent elections, Republicans [Page 135] would win with addition of Leftist groups which did not participate in elections.
2. Statement made by Greek King to Manchester Guardian (see Embstel No. 3953 April 972) expresses known views of King who, if he returns to Greece, would in all likelihood endeavor to steer a moderate course but it is questionable whether he would be permitted to follow such policy.
3. It is unlikely that Poulitsas will remain as P[rime] M[inister] because that position will probably be filled by one of big four Populists. However, these four leaders have not been able to agree on one of their members for premiership. FonOff believes that Stephanopoulos is best of four. When new government is formed, members of present Government with exception of Poulitsas, will probably remain in office and total membership of Government largely increased.
4. The economic rehabilitation of Greece cannot but continue to be matter of concern as there are strong indications that food situation will deteriorate in mid-summer and Bank of Greece is still selling gold at rate of about 10,000 pounds sterling a day—this, however, is reduction from peak figure of 25,000 pounds sterling a day. The only hope is that industrial production will increase at substantial rate and that this, plus importations from abroad, will result in more goods being available in country, thus reducing dangers of further inflation.
Sent Dept as 3985, repeated Athens as 63.
[The signing of the unanimous report of the Allied Mission to Observe the Greek Elections took place at Athens on April 10, 1946. The following day, the Department of State released a statement by the mission which noted that the “Greek elections of March 31 were conducted under conditions that warranted holding them on the date selected. They were on the whole free and fair, and the results represent a true and valid verdict of the Greek people”. The text of the statement is printed in Department of State Bulletin, April 21, 1946, page 671.]