868.50/11–945: Telegram

The Ambassador in the United Kingdom (Winant) to the Secretary of State

11799. 1. Woodbridge (UNRRA)10 has just returned from visit to Athens with General Gale, where he talked with Damaskinos, Scobie and US, UK and Canadian Ambassadors.11 In conversation with the [Page 263] Penroses and Amende,12 Woodbridge said economic position of Greece is deteriorating rapidly and competent observers predict collapse, possibly within 4 or 5 weeks. Inflation is getting out of hand and Govt is unable to enforce production controls. Damaskinos told UNRRA representatives that he hoped Britain and US would intervene to reestablish economic order, which he felt could not be accomplished by Greeks themselves. Alternatively he asked UNRRA to appoint advisers who would have full power to act through dummy Ministers of Finance and Supply whom he would appoint. UNRRA felt it could not do this and suggested as alternative that Damaskinos obtain assurances of full backing of Britain and US to support his program of controls.

Winant
  1. George Woodbridge, American, Special Assistant to Lieutenant General Gale.
  2. Maj. Gen. L. R. LaFleche was Canadian Ambassador in Greece.
  3. Ernest F. Penrose, Edith T. Penrose, and Ruth Amende, Special Assistants at the Embassy in the United Kingdom.