868.515/3–2247: Telegram
The Ambassador in Greece (MacVeagh) to the Secretary of State
secret
Athens, March 22,
1947—5 p. m.
424. ReEmb despatch 3753 March 7. In final conference yesterday between Prime Minister and members Porter Mission accompanied by Keeley1 and Groves Prime Minister said Govt is energetically studying application of measures recommended by Porter and Currency Committee. In particular:
- (1)
- Govt will maintain strict foreign trade control and hopes establish centralized foreign trade administration within few days. This project already approved in principle by Council of Ministers and details now being elaborated.
- (2)
- Wages will be stabilized subject only to specific adjustments approved by Currency Committee. A special board will be established to consider civil service salaries.
- (3)
- Gold sales by Bank of Greece will be rigidly controlled but due to psychological factor Govt considers it unwise to publicize discontinuance [Page 130] gold sales pending Congressional debate and action on US assistance program. Since March 13 gold sales have entirely ceased and trend completely reversed with private holders now offering gold to Bank in substantial volume at steadily declining prices. Bank’s buying rate today dropped to 124,000 drachmas with long cue [queue] unaccommodated when bank closed for week-end. Prime Minister said he is determined to apply principles enunciated by the President.
MacVeagh
- James H. Keeley, Jr., Counselor of Embassy in Greece.↩