868.51/12–2145
The Greek Embassy to the Department of State 49
Memorandum
Reference is made to the Greek Embassy’s note No. 4733, dated December 5, 1945.
The value of the gold sovereign in Greece has now reached 95,000 drachmas. This situation is due to the circumstances related in Mr. Tsouderos’ letter to the Ambassadors of the United States and Great Britain. There is no doubt that the lack of confidence towards the drachma has been further accentuated by the attitude of open warfare adopted by the extreme left.
It has now become more evident than ever before that unless Greece receives from her Allies the economic assistance discussed with Mr. [Page 290] McNeil, the country will experience a new disastrous inflation with all the destructive political, economic and financial effects connected with it.
It is, therefore, of the utmost urgency that appropriate steps be taken in the light of the suggestions submitted by the Greek Government, and be made public forthwith.
If this situation were to continue, the present administration’s position would become hopeless.
- Handed to Willard L. Thorp, Deputy to Assistant Secretary of State Clayton on December 21.↩