781.00/7–2851: Telegram
The Ambassador in Greece ( Peurifoy ) to the Department of State
501. Following passage rationing law last night on heels final adoption electoral law night before Venizelos pushed by Tsaldaris and Plastiras has taken plunge for elections in near future. Late last night PriMin announced he wld resign shortly, perhaps tonight, and that as chief of Lib Party he had proposed to King dissolution of Parl and elections under political govt. In audience yesterday with King Venizelos declared he agreed with Tsaldaris and Plastiras on impossibility declaring next Chamber revisionary under procedure specified Art 108 of Constitution which wld entail at least one months prolongation life present Parl and consequent extension period political uncertainty. Meeting of political party leaders with King scheduled for 6 p. m. tonight to discuss possible alternative procedures and if no agreement ensues Libs, Populists and EPEK favor dropping plan [Page 490] for next Parl to revise constitution. According his announcement, Venizelos resignation will take place at conclusion this meeting.
Possibility always exists of some last minute attempt to avert or postpone elections by formulation another coalition govt from present Parl but this does not appear very likely. Papandreou early this week told us that palace considered elections inevitable and saw no other practicable solution while Venizelos, keyman in any maneuvers based on existing Parl, now appears determined go ahead with elections. Latter point made this morning to us by MinFin Mavros. He said Libs hope King will give mandate to Venizelos to dissolve Chamber and conduct elections. Lib plan is install service personnel in key electoral posts of Justice and Interior (and perhaps Defense as well) but Libs wld hold all other Cabinet posts. Tsouderos, Mavros stated, has definitely joined Lib Party with his followers and wld be given Cabinet post perhaps as dep PriMin, which might become important if Venizelos carried out his desire to take short holiday abroad.
Other possibility is strictly service govt with Mantzavinos being mentioned as most likely PriMin. Party leaders divided on this question. Plastiras supports plan for Lib Govt to conduct elections but Tsaldaris as well as Papandreou and LEK publicly at least demand service govt.
Emb is inclined welcome latest developments. Prolongation of pol uncertainty most undesirable and for some time it has appeared there was little hope of any stable and effective govt being formed from this Parl. Revision of Constitution may be desirable but is not vital and does not appear of sufficient importance to warrant another month or more of the pol jockeying that has been going on for many months. When asked for Amer views on govt to conduct elections, I have emphasized our interests are that this govt provide necessary continuity in econ policy and in its composition and conduct future holding of free and fair elections results of which will be unchallengeable in Greece or abroad.