868.48/6–2047: Telegram
The Ambassador in Greece (MacVeagh) to the Secretary of State
priority
931. For Henderson NEA. Rountree1 and Patterson advise that although general economic situation has thus far remained relatively stable in anticipation arrival AMAG position in regard to essential supplies such as cereals and milk has now ‘become so critical owing to delays that unless immediate relief forthcoming breakdown of bread rationing and milk distribution to infants and pregnant women seems certain before aid program as now planned gets under way. (Please see my telegrams to which I asked urgent reply in my telegram 881, June 122). I need not emphasize devastating affect this would have on political and security situation.
Most pressing factors are:
- 1.
- As of today Government has balance of less than $150,000 excluding currency cover of $3,000,000. Goldstock all in coins in Athens equivalent about $4,000,000. Sterling 3,500,000 pounds excluding currency cover. All dollar import applications being rejected.
- 2.
- Even assuming no continuation maritime strike, Greece will have by first part August no stocks of cereals to meet bread ration. To avoid complete cessation this ration therefore absolutely essential that August allocation 35,000 tons at cost approximately $4,000,000 arrive early August which means that orders must be placed within maximum two weeks. If present orders for July arrival are held up by maritime strike, Greece will be unable to meet rations by mid-July.
- 3.
- As reported Embassy’s telegram 901, June 16,2 milk stocks virtually exhausted and immediate shipments must be made at least for infants and pregnant women if widespread hunger and sickness to be prevented. If Department not to make emergency shipment under post-UNRRA relief program, necessary that at least $2,000,000 in orders be placed by Greeks at once.
- 4.
- In order prevent breakdown both military and civil transport, orders for $500,000 petroleum products unobtainable for sterling must be placed immediately for July arrival.
- 5.
- Sterling balance of no use in meeting foregoing requirements totalling $6,500,000. Gold cannot be sold in sufficient time to meet crisis. Believe unwise for psychological reasons transfer for current small currency cover but even assuming this is done, deficit would be $3,400,000. In addition other essential though not too critical supplies must be ordered currently since stocks agricultural and industrial raw materials, etc., in general very low as result stringent import programs since December. Estimate needs for latter $2,000,000 for next few weeks bringing immediate deficit to $5,400,000. If currency cover not used, deficit $8,400,000.
Strongly urge Department take over direct responsibility shipments at least of wheat and milk and that immediate advance be made to Greek Government under aid program for other vital dollar expenditures with all such expenditures to be made only with specific approval of Embassy pending arrival Griswold which should by all means be expedited for above as well as other reasons of rapidly increasing vital character (my telegram 880, June 133).
Please telegraph reply soonest.