868.00/4–2547: Telegram
The Chargé in Greece (Keeley) to the Secretary of State
579. In conference April 22, Groves and I discussed with Prime Minister substance of Deptel 474, April 16 with following results:
- 1.
- Prime Minister reiterated his previous statement that Ministerial Council has definitely agreed to establishment of centralized Foreign Trade Administration. However, Prime Minister considers this an extremely important agency in reconstruction program and expressed strong desire to delay finalizing enabling decree until after consultation with our forthcoming mission. Embassy considers this viewpoint sound.
- 2.
- Decision to authorize olive oil exports likewise has been approved by Council and Prime Minister stated that “within few days” enabling decrees will be issued. Plan foresees centralizing exports in agricultural bank which will thus acquire all foreign exchange proceeds but producers and exporters will get full benefit of higher foreign prices in drachmas after export taxes.
- 3.
- Prime Minister said Council also is definitely committed to obtain approval of Currency Committee for any increases for Govt employees. This commitment received successful test in recent demands of civil servants for Easter bonus.
Necessity of adopting promptly positive remedial economic measures wherever feasible was emphasized in accordance with Prime [Page 152] Minister’s verbal commitment to Ambassador MacVeagh before departure.
Prime Minister confirmed his intention in this regard but it was clear that he is anxious to have the views and backing of our prospective mission before casting die on major issues like Foreign Trade Administration. He outlined again his personal views favoring organization of a top Greek-American Committee with broad powers to establish entire reconstruction policy immediately after arrival our Economic Mission.
Meantime economic situation here holds relatively stable with gold transactions insignificant, labor situation threateningly quiescent and commodity price pressure upward.