868.00/11–2045: Telegram

The Ambassador in Greece (MacVeagh) to the Secretary of State

1331. Govt resigned this morning. Gave no reasons but opinion tends ascribe action to failure obtain assurance effective British support financial economic measures.52 However, British colleague informed me this afternoon that faced with what Sir Reginald calls [Page 179] [garble] McNeil proposals53 Regent recently wired Bevin for latter’s views, expressing belief political issues, especially issue of the regime, cannot be divorced from economic problems if satisfactory stability expected. This also Leeper’s opinion, but not in accord policy followed Kanellopoulos Govt which has attempted attack economic problems separately to begin with. Bevin replied British Govt willing give all possible political economic support to Greek Govt established on wide political basis which should hold elections by March 1946 at latest, defer plebiscite until 1948, and accept British Economic Mission with serious aim implement constructive economic program according its advice. This exchange views communicated by Regent to Kanellopoulos caused latter step aside allow Regent free hand. Attempt being made form new Govt tonight with Regent intending entrust Govt to Greece’s eldest statesman (Sophoulis) with Tsouderos likely take over directing functions economic finance, and Sophianopoulos Foreign Affairs. British colleague unable say whether Populists will collaborate immediately but feel British support, which now offered only to Left Center, will attract them later as also perhaps some elements from Left. This connection, Populist source told Embassy this morning his party now prepared participate any coalition govt which receives advance unconditional guarantee Allied economic support and British colleague told me feels such support by British eventually likely include further “scraping of barrel” if Greece shows genuine intention follow advice in putting house in order.

MacVeagh
  1. The 20 days which marked the life of the Kanellopoulos government were notable for developments in Athens, Caserta, London, and Washington with respect to the problem embodied in the steady deterioration in Greek economic and financial affairs; for documentation regarding this subject, see pp. 255275, passim.
  2. Reference is to the visit made to Athens at this time by Hector McNeil, British Parliamentary Under Secretary of State for Foreign Affairs, and proposals made by him to the Greek Government that the latter invite a British economic mission to Greece. For documentation regarding these developments, see pp. 262272, passim.