Foreign Relations of the United States, 1949, The Near East, South Asia, and Africa, Volume VI

868.00/4–1649: Telegram

The Chargé in Greece (Rankin) to the Secretary of State

confidential

Athens, April 16, 1949—6 p. m.

774. Embtels 580, March 26; 651, April 5; 702, April 8. Contrary to assurances given Ambassador Grady by King, Sophoulis and Tsaldaris, Markezinis affair culminated in open government crisis, fortunately of short duration.¹ This development appears to have been inevitable in view of King’s position, obstinacy Markezinis and pressure from parties, press and public opinion.

Markezinis refused to resign until court inquiry results published. However, according Greek political tradition Markezinis should have placed himself at Prime Minister’s disposal when question first raised unless government were prepared take unequivocal position his defense assuming collective responsibility for this action. Coalition government refused to do this. Populist, most powerful party in government, bitterly hostile to Markezinis and determined to get rid of him. Other participating parties not entirely certain Markezinis’ innocence and not inclined consider him indispensable. Government therefore procrastinated and finally yielded to Populist and opposition pressure to crush Markezinis.

In consequence Markezinis affair, government policy-making functions practically at standstill for nearly one month. Although principal papers (Kathimerini, Vima, Nea, Estia) consistently backed Markezinis, their support relatively mild in contrast virulent attacks by remainder of press including Populist organs and left-center Eleftheria. So far as can be determined, public to whom Markezinis little more than a name considered his stubbornness and government inactivity intolerable, particularly during last week when country considered suffering invasion from abroad, civil servants striking and economic difficulties mounting.

Under circumstances Prime Minister and other government leaders relatively objective in Markezinis matter considered it impossible maintain previously declared position of awaiting court inquiry results, particularly as no certainty re ultimate date publication of court findings. According very reliable source, April 12 even Papagos, one of Markezinis’ strongest supporters, felt latter should resign as only way of terminating impasse.

Question complicated by position of King who in view his assurances to Ambassador as well as his personal desires opposed both Markezinis’ resignation and moves by other government parties to force this action. Confronted with this situation Sophoulis, rather than join other parties in attempting force King to demand Markezinis resignation, submitted government resignation. Appears also that Sophoulis Liberals had some hope capitalizing on situation by forming new government under Sophoulis, either excluding other party leaders which would reduce influence Tsaldaris and Venizelos as well as Markezinis (Embtel 741, April 13²), or as it turned out by acquiring two additional cabinet posts.

In reforming government Sophoulis asked New Party Ministers Capsalis (National Economic) and Gonis (Labor) retain their posts but did not follow customary procedure and deal directly with their party chief Markezinis on this matter. Perhaps for this reason and according Markezinis because he felt his two ministers would be subject continued attack by Populists and opposition, Markezinis refused permit his ministers participate although he was aware of American desire Capsalis and Gonis remain. Markezinis decision generally welcomed by other government parties for various reasons including belief nonparticipation new party would ease parliamentary position reformed government.

Although government as sworn in identical with predecessor except for omission New Party (Embtel 749, April 14²) some minor shifts particularly among Liberal ministries expected shortly. Leading candidates presently vacant National Economy and Labor posts are Sophoulis Liberal Mavros³ (Minister Justice in last pre-election government) and Venizelist Marinakis (ex-Minister Merchant Marine) neither of whom have any special qualifications for these key posts which were capably filled in preceding government by New Party members. In addition government as whole has suffered considerable loss public prestige from Markezinis affair but expects get adequate vote of confidence from Parliament scheduled to meet for this purpose May 2.⁴

Rankin

1. In mid-March it became known that Spyridon Markezinis, Greek Minister Without Portfolio and leader of the New Party, had business relations with a broker currently on trial for the violation of currency regulations. A controversy erupted in the Greek press regarding Markezinis’ possible wrongdoing. Rivalries among competing Greek political factions became a factor in the accusations against Markezinis. In conversations with King Paul, Prime Minister Sophoulis, and Foreign Minister Tsaldaris (reported upon in the telegrams under reference, none of which is printed), Ambassador Grady expressed his interest in seeing that the Markezinis affair was not irresponsibly utilized for a governmental crisis (868.00/3–2649, 868.00/4–549, 868.00/4–849). In the second week of April, however, the Sophoulis government sought to obtain the resignation of Markezinis, a measure for a time strenuously opposed by the King. On April 12 the Sophoulis government resigned. At the King’s request, Sophoulis formed a new government on April 14 identical in composition with the previous one, except for elimination of Markezinis and two other ministers who were members of the New Party. On May 2 the Greek Supreme Court announced that it had found no evidence of wrongdoing on the part of Markezinis.
2. Not printed.
2. Not printed.
3. George Mavros was subsequently sworn in as Greek Minister of National Economy.
4. The Greek Parliament gave the newly constituted Sophoulis Government a vote of confidence on May 2.