PALGRAVE STUDIES IN DEMOCRACY, INNOVATION, AND ENTREPRENEURSHIP FOR GROWTH THE POST-WAR RECONSTRUCTION OF GREECE A History of Economic Stabilization and Development, 1944–1952 George Politakis Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth Series Editor Elias G. Carayannis The George Washington University Washington, District of Columbia, USA The central theme of this series is to explore why some areas grow and others stagnate, and to measure the effects and implications in a trans-disciplinary context that takes both historical evolution and geographical location into account In other words, when, how and why does the nature and dynamics of a political regime inform and shape the drivers of growth and especially innovation and entrepreneurship? In this socio-economic and socio-technical context, how could we best achieve growth, financially and environmentally? This series aims to address such issues as: How does technological advance occur, and what are the strategic processes and institutions involved? How are new businesses created? To what extent is intellectual property protected? Which cultural characteristics serve to promote or impede innovation? In what ways is wealth distributed or concentrated? These are among the key questions framing policy and strategic decision-making at firm, industry, national, and regional levels A primary feature of the series is to consider the dynamics of innovation and entrepreneurship in the context of globalization, with particular respect to emerging markets, such as China, India, Russia, and Latin America (For example, what are the implications of China’s rapid transition from providing low-cost manufacturing and services to becoming an innovation powerhouse? How the perspectives of history and geography explain this phenomenon?) Contributions from researchers in a wide variety of fields will connect and relate the relationships and inter- dependencies among (1) Innovation, (2) Political Regime, and (3) Economic and Social Development We will consider whether innovation is demonstrated differently across sectors (e.g., health, education, technology) and disciplines (e.g., social sciences, physical sciences), with an emphasis on discovering emerging patterns, factors, triggers, catalysts, and accelerators to innovation, and their impact on future research, practice, and policy This series will delve into what are the sustainable and sufficient growth mechanisms for the foreseeable future for developed, knowledge-based economies and societies (such as the EU and the US) in the context of multiple, concurrent and inter- connected “tipping-point” effects with short (MENA) as well as long (China, India) term effects from a geo-strategic, geo-economic, geo-political and geo-technological set of perspectives This conceptualization lies at the heart of the series, and offers to explore the correlation between democracy, innovation and growth More information about this series at http://www.springer.com/series/14635 George Politakis The Post-War Reconstruction of Greece A History of Economic Stabilization and Development, 1944–1952 George Politakis Athens, Greece Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth ISBN 978-1-137-57569-2 ISBN 978-1-137-57734-4 (eBook) https://doi.org/10.1057/978-1-137-57734-4 Library of Congress Control Number: 2017949884 © The Editor(s) (if applicable) and The Author(s) 2018 This work is subject to copyright All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed The use of general descriptive names, registered names, trademarks, service marks, etc in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations Cover Illustration: © Tetra Images / Getty Images Printed on acid-free paper This Palgrave Macmillan imprint is published by Springer Nature The registered company is Nature America Inc The registered company address is: New York Plaza, New York, NY 10004, U.S.A I dedicate this book to the memory of my grandparents Georgios and Ismini Georgaras They gave me the keys to walk the distance taught me courage in the discovery and so gave me life Acknowledgments During the time of the research and writing of this book, several people have given me support and advice My first debt is to my supervisor, Professor L Tsoukalis, who guided me throughout the original dissertation at the University of Oxford My second debt is to Professor Elias Carayannis, who encouraged me to publish it and has been actively engaged in this process My third debt is to the editorial staff of Palgrave Macmillan for their work in shaping my manuscript into the present book I would like to thank the (late) Greek politicians and economists and journalists who shared with me their unique insights of the period In particular, Dr I Zighdis; Professors A Angelopoulos and X Zolotas; and Messrs S Markezinis and A Frangias I am also indebted to the staff of Bodleian Library, Oxford; the National Archives, College Park, MD; the Library of the Hellenic Parliament, Athens; the Greek Historical and Literary Archive, Athens; and the Library and the Historical Archive of the Bank of Greece, Athens I am also personally grateful to Messrs N Pandelakis and K Papachrysanthou, who entrusted me with the private papers of A Diomidis and K Varvaressos in their possession, now part of the respective archives I am especially thankful to my family for their continuous support and for accepting my, sometimes, exclusive interest in this project, and also for their active interest in it vii Contents Introduction 1 Greece’s Pre-war Economic Development and External Economic Relations 11 Wartime and Liberation Economic Policy 31 The Varvaressos Experiment 67 Greek External Economic Relations Until the End of 1946 93 From Liberalization of Foreign Trade to the Exhaustion of Reserves121 The First Year of American Aid: The Porter Mission, the Amag, and Initial Setbacks149 Greece’s Association with the Recovery and Reconstruction of Europe: The Lessons from 1948175 Defining and Implementing Economic and Political Priorities in Post–Civil War Greece221 ix x 10 Contents Conclusion257 Bibliography269 Index279 List of Figures Fig 2.1 Fig 2.2 Fig 2.3 Fig 3.1 Fig 3.2 Fig 3.3 Fig 4.1 Fig 6.1 Fig 6.2 Fig 6.3 Fig 6.4 Fig 6.5 Fig 6.6 Fig 7.1 Fig 8.1 Fig 8.2 Fig 9.1 Service of public debt as a percentage of public expenditure in 1930 Trade of countries of Southeastern Europe with free exchange countries Per capita imports of Balkan countries in gold dollars The volume of Foreign Trade 1941–1944 Percentage increase in money supply, 1939–1944 Indices money supply, consumer prices, and price of gold sovereign in Athens Remittances, March to December 1945 Monthly evolution of industrial output in 1946 Remittances, March 1945 to September 1946 Sales of gold and foreign exchange, March to December 1946 Evolution of domestic prices in 1946 Government income and outlay Evolution of Monetary Indicators Organogram of Amag Sales of gold sovereigns in millions of US dollars Sovereign, 1948 market price in drachmas Greece’s balance of payments, 1938, 1945–1952 in millions of current US dollars 14 16 22 33 35 36 82 123 127 132 138 142 143 156 178 213 248 xi 272 Bibliography United States Department of State Foreign Relations of the United States, 1932–, Washington, G.P.P., Greece 1942–1951 published ———, Treaties and Other International Acts, AID TO GREECE, Agreement between the United States of America and Greece, Washington, D.C 1947 ———, The European Recovery Program, Country Studies, vol I, Washington, D.C., GPO, 1948 (contains a summary of the original programme submitted to the CEEC) European Cooperation Administration, A Report on Recovery Progress and United States Aid, Washington, D.C., February 1949 President of the US, Report to Congress on Assistance to Greece and Turkey, First Three Semiannual Reports, Washington, D.C., 1947–1948 Organization for Economic Cooperation and Development (OECD) OECD, The Impact of the Newly Industrialized Countries, Paris 1978 Organization For European Economic Cooperation (OEEC) OEEC, Interim Report on the European Recovery Programme, vol II, The Greek memorandum on the Long Term Program, Paris 30/Dec/1948 ———, Report to the European Cooperation Administration on the – Annual Program, annual reports, first to fourth Reports, Paris 1949–1952 ———, Foreign Trade Statistics, Series I, 1928, 1937–1953, Paris 1954 Non-Official and Secondary Publications Acheson, D., Present at the Creation: My Years at the State Department, Northon, New York 1969 Ailianos, M., Η Ελευθέρα Οικονομία και ο Παρεμβατισμός (Free Economy and Interventionism), Athens 1950 Alexander, A., Greek Industrialists, An Economic and Social Analysis, Center of Planning and Economic Research, (CPER), Athens 1964 Alexander, G., British Policy in Greece 1944–1947, The Prelude to the Truman Doctrine, Clarendon Press, Oxford 1982 Amen, M. 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J., Contribution l’ Etude de l’ Economie Rurale de la Grèce d’ après Guerre, Berger-Levrault, Paris 1931 Campbell, J., Sherrard, P., Modern Greece, London, Ernest Benn Ltd, 1968 Candilis, W. O., The Economy of Greece, 1944–66, Efforts for Stability and Development, Praeger, New York 1968 Carr, E. H., The Twenty Years Crisis, 1919–1939, First Edition, London 1938 Churchill, W. S., The Second World War, London 1952 Cipolla, C. M (ed.), The Fontana Economic History of Europe, vol 6, Collins/ Fontana Books, London 1976 Couloumbis, T. A., Greek Political Reaction to American and Nato Influences, Yale University Press, New Haven and London 1966 Dalton, H., High Tide and After, Memoirs, 1945–1960, London 1962 Daphnis, G., Συνοπτική Ιστορία της Συγχρόνου Ελλάδος (OEDB), Athens 1969 Delivanis, D., Cleveland, W., Greek Monetary Developments, 1939–1948, Indiana University Press, Bloomington, Indiana 1949 Dertilis, G Κοινωνικός Μετασχηματισμός και Στρατιωτική Επέμβαση, 1880–1909, (Social Transformation and Military Intervention, 1880–1909), Exantas, Athens 1977 Dovas, Y., Oικονομία της Eλλάδας (The Economy of Greece), Synchroni Epochi, Athens 1980 Esposito, C., America’s Feeble Weapon, Funding the Marshall Plan in France and Italy, 1948–1950 Westport CT, 1994 Footitt, H., Simmonds, J., France 1943–1945, Leicester University Press, 1988 Freris, A., The Greek Economy in the Twentieth Century London 1986 Gianitsis, A., Η Ελληνική Βιομηχανία Ανάπτυξη και Κρίση (The Greek Industry, Growth and Crisis) Athens 1983 Oikonomou-Gouras, P., Το Δόγμα Τρούμαν και η Σωτηρία της Ελλάδος (The Truman Doctrine and the Salvation of Greece), Athens 1957 Guirao, F., and Lynch, F (eds.), Alan S Milward and Contemporary European History , Oxon & New York, 2016 Hadjopoulos, A., Oι Προστάτες (The Protectors), Papazissis, Athens 1977 Harper, J., America and the Reconstruction of Italy, 1945–1948, Cambridge UK, 1986 274 Bibliography Hatjivassileiou, N. I., Η Ελληνική Εξωτερική Εμπορική Πολιτική, (Greek Foreign Trade Policy), Athens 1936 Hitchcock, W., France Restored: Cold War Diplomacy and the Quest for Leadership in Europe, 1944–1954 1998 Hobsbawm, E. J., The Age of Revolution Europe 1789–1848, London 1962 Hogan, M., The Marshall Plan: America, Britain and the reconstruction of Western Europe, 1947–1952 CUP, 1987 Iatrides, J. O (ed.) Greece in the 1940s A Nation in Crisis, University Press of New England, Hanover and London, 1981 Some references are given to the Greek edition Η Ελλάδα στη Δεκαετία του Σαράντα, Το Έθνος σε Κρίση, Themelio, Athens 1984 _ (ed.), Greece at the Crossroads: The Civil War and its Legacy Pennsylvania U.P., 1995 Institut National de la Statistique et des Sciences Economiques (INSEE), Collection de Conjoncture et d’ Etudes Economiques, Mémento Economique, La Grèce, PUF, Paris 1952 Kakridis, A., Greek Economists and the Quest for Development (1944–1967) Athens 2009 Kindleberger, C., Marshall Plan Days, Boston MA, 1987 Koliopoulos, J. S., Greece and the British Connection, Oxford University Press, Oxford 1977 Konstadinou, G., Απελευθέρωση του Διεθνούς Εμπορίου και Οικονομική Ανάπτυξη ιδία των υπαναπτύκτων χωρών (The Liberalization of International Trade and the Development of Less Developed Countries), Athens 1976 Kontis, V., Η Αγγλοαμερικανική Πολιτική και το Ελληνικό Ζήτημα (The Anglo- American Policy and the Greek Question), Paratiritis, Thessaloniki 1984 Leeper, R., When Greek Meets Greek, Chatto &Winters, London 1950 Lignadis, T., Η Ξενική Εξάρτηση κατά την Πορεία του Νεο-Ελληνικού Κράτους (1821–1945) (Foreign Dependence through the History of the Greek State, 1821–1945), Athens 1975 Linardatos, S., Από τον Εμφύλιο στην Χούντα (From Civil War to the Junta), vol 1, 1949–1952, Papazissis, Athens, 1977 Lykogiannis, A., Britain and the Greek Economic Crisis 1944–1947, From Liberation to Truman Doctrine Missouri 2002 McCauley, M (ed.), Communist Power in Europe, 1944–49, Macmillan, London 1977 McNeill, W. H., Greece, American Aid in Action, 1947–1956, The Twentieth Century Fund, New York 1957 ———, The Greek Dilemma, War And Aftermath London 1947 ———, Report on the Greeks, New York, 1948 ———, The Metamorphosis of Greece since World War II, Blackwell, Oxford 1978 Bibliography 275 MacVeagh, L., Ambassador MacVeagh’s Reports from Greece, edited by John Iatrides, Princeton University Press, Princeton 1980 Mazower, M., Greece & the Interwar Economic Crisis, Clarendon Press, Oxford, 1991 _ (ed.), Post-War Recostruction in Europe, International Perspectives, 1945– 1949 OUP 6/2011 Milward, A. S., War Economy and Society, Penguin books, 1987 ———, The Reconstruction of Western Europe 1946–1951, Methuen & Co Ltd, 1984 Momtchiloff, N., Ten Years of Controlled Trade in South Eastern Europe, London N.I.E.S.R, Cambridge University Press, 1944 Munkman, C. A., American Aid to Greece: A Report of the First Ten Years, Praeger, New York 1958 Panagos, C., Εισαγωγικό Εμπόριο και Ανασυγκρότηση (Import Trade and Reconstruction), Athens 1946 Pipinelis, P., Ιστορία της Εξωτερικής Πολιτικής της Ελλάδος (History of Greek Foreign Policy, 1923–41), M. Saliveros, Athens 1948 Poulopoulos, S., Η Νέα Οικονομική Πολιτική στην Ελλάδα (The New Economic Policy in Greece), Papazissis, Athens 1958 Psalidopoulos, M., Ζητείται ένα Θαύμα για την Ελλάδα (Wanted: a Miracle for Greece) Athens 2006 ———, Επιτηρητές σε Απόγνωση (Monitors in Despair) Athens 2013 ———, Ιστορία της Τράπεζας Ελλάδος 1928–2008 (History of the Bank of Greece 1928–2008) Athens 2014 Psomas, A., The Nation, the State and the International System; The Case of Modern Greece, National Center for Social Research, (EKKE), Athens 1978 Psyroukis, N., Η Νεολληνική Εξωτερική Πολιτική (The Foreign Policy of Modern Greece), Epikairotita, Athens 1981 Richter, H., British Intervention in Greece, From Varkiza to Civil War, February 1945 to August 1946, Merlin Press, London 1986 Rodakis, P., Foreign Capital in Our Country, Mykinai, Athens, undated Rostow, W., The Division of Europe After World War II: 1946 Texas, 1981 Sbarounis, A., Μελέται και Αναμνήσεις εκ του Δευτέρου Παγκοσμιίου Πολέμου (Studies and Reminiscences from the 2nd World War), Government Printing Office, Athens 1951 Seferis, G., Πολιτικό Ημερολόγιο, (Political Journal), A. Xydis (ed.), volume A, 1935–1944, Ikaros, Athens 1979, volume B, 1945–1947, 1949, 1952, Ikaros, Athens 1985 Shonfield, A., Modern Capitalism, The Changing Balance of Public and Private Power, OUP, London 1965 Spencer, F. D., War and Post–War Greece, An Analysis Based on Greek Writings, Washington 1952 276 Bibliography Stavrianos, L. S., Greece: American Dilemmas and Opportunities, American Book- Stratford Press Inc., New York 1952 Svolos, A., Ιστορία Μιας Προσπάθειας (History of an Endeavor), Athens 1945 Svoronos, N., Επισκόπηση της Νεολληνικής Ιστορίας (A Survey of the History of Modern Greece) Themelio, Athens 1976 ———, “Greek History, 1940–1950, The Main Problems” in Iatrides, J. O (ed.) Greece in the 1940s A Nation in Crisis, University Press of New England, Hanover and London, 1981 Truman, H. S., Memoirs of Harry S. Truman, Volume II, Years of Trial and Hope, Da Capo Press Inc., New York 1956 Tsoukalas, K., Dépendence et Reproduction, Le Role Social du Système Scolaire en Grèce, Thèse de Doctorat, Paris I, 1976; Greek edition, Εξάρτηση και Αναπαραγωγή, Ο Κοινωνικός Ρόλος των Εκπαιδευτικών Μηχανισμών στην Ελλάδα, Athens 1977 Tzamtzis, A. I., Tα Λίμπερτυ και οι Eλληνες (The Greeks and Liberty Ships), Estia, Athens 1984 Vergopoulos, K., Le Capitalisme Difforme et la Nouvelle Question Agraire, L’ exemple de la Grèce Moderne, F. Maspero, Paris 1977 Some references are to the Greek edition, Το Αγροτικό Ζήτημα στην Ελλάδα (The Agrarian Question in Greece), Exantas, Athens 1975 ———, Κράτος και Οικονομική Πολιτική στον 19ο Αιώνα (State and Economic Policy in the 19th century), Exantas, Athens 1978 Vetsopoulos, A., The Economic Dimensions of the Marshall Plan in Greece, 1947– 1952: The Origins of the Greek Economic Miracle University of London 2002 Greek edition: Η Ελλάδα και το Σχέδιο Μάρσαλ, Η Μεταπολεμική Ανασυγκρότηση της Ελληνικής Οικονομίας, Athens, 2007 Wittner, L. S., American Intervention in Greece, 1943–1949, Columbia University Press, New York 1982 Woodhouse, C. M., Modern Greece, A Short History, Faber and Faber, third edition, London 1984 ———, Karamanlis, The Restorer of Greek Democracy, Clarendon Press, Oxford 1982 Xydis, S., Greece and the Great Powers, 1944–1947, Institute for Balkan Studies, Thessaloniki 1963 Zolotas, X., Griechenland aud dem Wege zur Industrialisierung, Verlag, Teubner, Leipzig, 1926 First edition in Greek, Η Ελλάς εις το Στάδιον της Εκβιομηχανίσεως (Greece at the Stage of Industrialization), Athens 1926; Second edition Bank of Greece, 1964; references in text refer to the 2nd Greek edition ———, Το Δημόσιο Χρέος της Ελλάδος (Greek Public Debt), Athens 1930 Bibliography 277 ———, Η Πολιτική της Τράπεζας Ελλάδος, από 19 Οκτωβρίου 1944 μέχρι Ιανουαρίου 1945 (The Policy of the Bank of Greece from 19/10/1944–8/1/1945), Papazisis, Athens 1945 ———, Νομισματικόν Πρόβλημα και Ελληνική Οικονομία (The Monetary Question and the Greek Economy, Economic Analysis Studies no 3), Papazissis, Athens 1950 Articles Agapetedes, S “L’ Economie Hellenique” in La Documentation Franỗaise, April 1951 Institut National de la Statistique et des Sciences Economiques (INSEE), L Evolution Rộỗente de l Economic Hellenique in Etudes et Conjonctures, L’ Economic Mondiale, Paris, Septembre–Decembre 1951 Maier, C. S., “The Politics of Productivity: Foundations of American International Economic Policy after World War II” in International Organization vol 31, no 4, Autumn 1979 Mouzelis, N., “Modern Greece” in Monthly Review March 1981, pp. 15–20 Review of National and Political Science, 7/1, January–March 1952, Papazissis, Athens Strange, S., “International Economics and International Relations, A Case of Mutual Neglect” in International Affairs, April 1970 Vergopoulos, K., “Introduction to the Economy of Modern Greece” in the Greek edition of Monthly Review, May 1983, pp. 46–69, June 1983, pp. 57–74 Newspapers and Reviews Nea Oikonomia, October 1946–1953, eleven issues per year To Vima, Asyrmatos, Bradyni, Kathimerini, Athens New York Times, (N.Y.T.) New York Herald Tribune (N.Y.H.T.), Times, Le Monde Index1 NUMBERS AND SYMBOLS 1948 stalemate, 175–9 A Acheloos, 185 Acheson, D., 106, 108–13, 116, 117n27, 119n86, 120n88 Agricultural Bank of Greece, 145n13 agricultural exports, 21 aid-reduction argument, 227 Ailianos, M., 107, 108, 120n92 Alexander, A., 205 Alexander, G., 85, 89n1, 89n3, 89n6, 89n7, 89n10, 90n33, 91n55, 91n59, 91n62, 92n63 Aliakmon, 185 Amag, 168, 176, 177, 195, 198, 210 external and domestic economic policies, 158–69 implementation of agreements, Greece, 155–8 Amen, M. M., 103–5, 109, 115, 118n51, 118n56, 119n79, 120n102, 120n103 American imperialism, 266 American Mission, 175, 176 Angelopoulos, A., 8, 19, 28n48, 29n69, 45, 46, 55, 59, 62n22, 62n26, 63n47, 63n49, 64n50, 64n52, 64–5n69, 89n18, 118n47 Anglo-French blockade (1917), 12 annual growth rate, anti-guerilla campaign, 163 appraisal, 59–60 Argentina, 34 Argyropoulos, A., 75, 104 ASA See Higher Reconstruction Council, (ASA) Association of Civil Servants, 79 Austria, 189, 190 Austrian stabilization, 26n18 Austrian Tobacco Monopoly, 126 autumn 1950, aid reduction., 240–8 Note: Page numbers followed by “n” denote notes © The Author(s) 2018 G Politakis, The Post-War Reconstruction of Greece, Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth, https://doi.org/10.1057/978-1-137-57734-4 279 280 INDEX B Bacon, H., 28n53, 28n56 Bakalbassis, A., 108 Balkan wars, 12 Bank of England, 102, 129 Bank of Greece, 14, 47, 48, 50, 53–5, 57, 69, 71, 81, 86, 102, 113, 114, 117n17, 121, 124, 126–31, 138, 145n13, 164, 165, 176, 177, 180, 265 Committee on Coordination and Economic Planning, 180 Batsis, D., 187, 188, 215n36, 215n43, 216n44 Belgium, 21 Bevin, E., 87, 94, 118n39, 118n42 bilateral agreements, negotiation of, 18 Black Rider, 76 Board of Trade, 146n21, 146n22, 146n37, 148n76 Board, V., 101 Boyazoglu, A.J., 29n59 Breton Woods agreement, 181, 191, 259 Breton Woods Conference, 107 Britain, 15, 17, 38, 40, 42, 56, 87, 134 British Economic Mission, 103 British Foreign Office, 67 British Military Authority (BMA), 47–9, 58, 59, 64n53, 71 British Treasury, 48 Brook, A., 117n29 budget deficits, 223, 224, 234, 249 Bulgaria, 26n18, 31–3, 38, 76, 118n42 Bullock, A., 118n45 Byrnes, J F, 94, 95, 106–8, 110, 115 C Canada, 34 Candilis, W.O., 61n9, 62n19, 64n58 CC See Currency Committee (CC) CEEC See Committee for European Economic Cooperation (CEEC) Central Bank, 26n18, 47, 52, 58, 59, 71, 83, 130 Central Credit Committee, 53 Chamber of Commerce and Industry, 130 charcoal production, 25 Churchill, W.S., 38, 46, 67 civil conflict, 5, 6, 69, 70, 73, 75, 85, 96, 113 implications of, 67–8 Civil War, 59, 113, 175, 176, 178, 196, 206–8, 210, 212 American planning, 222 autumn 1950, aid reduction, 240–8 Liberal Spring of 1950, 232–5 reconstruction expenditure, 222 Venizelos incident, 229–31 Clark, General, 100 Clay, E., 195, 197, 204, 205 Clayton, W. C., 74, 75, 110 Cleveland, W., 65n70, 89n12, 89n13, 90n35, 91n48, 91n49, 129, 132, 145n10, 145n15, 146n23, 146n26, 146n28, 146n30, 146n31, 146n33, 146n35, 146n38, 146n40, 146n41, 147n66, 148n79, 148n83 Cominos, 203 Committee for European Economic Cooperation (CEEC), 190, 193, 194 communists, 84 Council of Ministers, 41 Currency Committee (CC), 121, 122, 129, 130, 133–5, 140 currency stabilization, 47 D Dalton, H., 118n45, 153 Damaskinos, Archbishop, 67, 89n2, 94 INDEX Daphnis, G., 91n60, 116n1 Dawson, J., 146n45, 160 De Forest, 198 Degriges, 32 Delaportas, P., 80 Delivanis, D., 65n70, 89n12, 89n13, 90n35, 91n48, 91n49, 129, 132, 145n10, 145n15, 146n23, 146n26, 146n28, 146n30, 146n31, 146n33, 146n35, 146n38, 146n40, 146n41, 147n66, 148n79, 148n83 demobilization of guerillas, 67 Diamantopoulos, C., 104 Dimitracopoulos, A., 182, 192, 194 Diomidis, A., 8, 86, 118n55, 193–5, 202–6, 210, 211 disposition of foreign exchange resources, control of, 80–3 distribution of wealth, in Greece, domestic monetary stability, 240 domestic output, evolution of (1946), 122–3 domestic price stability, Doxiadis, C., 195, 205, 206 E EAC See Economic Advisory Committee (EAC) EAPPE See Economic Analysis of UNRRA, a Committee on the Valorization of Greek Productive Resources (EAPPE) Ebasco Services, 186, 187, 199, 244 ECA See Economic Cooperation Administration (ECA) ECA program, 229–31 Economic Advisory Committee (EAC), 86 Economic Analysis of UNRRA, a Committee on the Valorization 281 of Greek Productive Resources (EAPPE), 184–7, 189, 191, 197–9 Economic Cooperation Administration (ECA), 190, 239, 241, 244 Economic Department of the State Department, 74 economic liberalism, 257 economic outlook, characteristics, 238 economic planning, state attempts reconstruction agency and Committee for Marshall Plan, 192–3 transition from Marshall Plan Committee to Higher Reconstruction Council, 193–6 economic policy (1945), 68–73 economic self-reliance, 12 EcoSoC Committee on war-devastated areas, 188 Electric Bond and Share Company, 186 emigration, ERP See European Recovery Program (ERP) European Community (EC), European Recovery Program (ERP), 3, 178, 179, 190, 192–4, 196–9, 202, 203, 206, 207, 209–11, 222, 224, 236, 261, 265 Evelpidis, C., 218n85 exchange rate, 48–51 Varvaressos approach, 49 Zolotas plan, 50–1 Export–Import (E–I) Bank, 74, 181, 188 loan issue, 103–5 export policy, 126 exports, 125–6 external economic policy, during war, 39–47 Extraordinary Contribution upon Industry and Commerce, 79, 80 282 INDEX F FAO See Food and Agriculture Organization (FAO) FDI See foreign direct investment (FDI) FEA See Foreign Economic Administration (FEA) Federal Reserve Bank of New York (FRBNY), 114, 176, 177 financial development development, 124 financial stabilization, 73–5 Finland, 190 First World War, 12 Food and Agriculture Organization (FAO), 183–5, 189, 201 foreign debt, 13 foreign direct investment (FDI), 15 Foreign Economic Administration (FEA), 41, 74 foreign exchange crisis (in autumn of 1946), 135–8 foreign exchange earning, 242 foreign exchange mismanagement, consequences of, 136–40 foreign exchange policy, 133 foreign exchange receipts, 152 foreign investors, Foreign Relief, 42 foreign trade percentage composition of, 23 Foreign Trade Administration (FTA), 150, 151, 160, 162 foreign trade policy, 125–33 France, 126 FRBNY See Federal Reserve Bank of New York (FRBNY) FTA See Foreign Trade Administration (FTA) G GAF, 168, 178, 224, 225, 227 GDP See gross domestic product (GDP) Germany, 16, 31, 33, 76, 179, 190 Gianitsis, A., 215n41 GLTP, 193, 203, 205, 206, 215n41 GNA See Greek National Army (GNA) GNP See Greek National Product (GNP) Gounarakis, A., 193, 195, 197–9, 206, 208, 211, 215n31 Gouras, P., 105, 153, 214n28 Government Economic Council, 146n30 Government of National Unity, 38, 46, 47 Grady, H., 263 Greece conflict, 167 1922 course of economy, 12–15 balance of payments, 21–3, 108, 151, 246–251 crisis of 1930s, 15–21 Ministry of National Economy, 33 post-war economic development and external economic relations, 11–22 public expenditure, 37 Greece’s Capacity to Pay, 44 Greek Agency for the Coordination of Reconstruction (ΥΣΕΣΑ), 262 Greek approaches, to U. S A., 108–16 Greek Civil War, 2, 3, Greek economic policy, aftermath of London Agreement, 122 Greek entrepreneurs, 262 Greek foreign trade, 169, 247 INDEX Greek Long-Term Industrialization Program, 207 Greek military establishment, 225 Greek National Army (GNA), 158, 159, 163, 168, 226, 227, 229 Greek National Product (GNP), 34 Greek reconstruction program, 222 Greek tobacco, 260 Gregory, Th., 135 Grigoriou, S., 205 Griswold, D. P., 157, 158, 163, 164, 176, 177 gross domestic product (GDP), 62n20, 122 Grove, E., 100 guerilla resistance, cessation of, 228 Guttman, W., 268n7 H Hadjivasileiou, N.I., 18, 20, 26n11, 27n40, 27n43, 28n49, 28n50, 29n67 Halikias, D., 29n64 Hall-Patch, E., 207 Havana, 27n41 Heavy Industry in Greece, 187 Helmis, D., 106, 134, 147n63, 166, 181, 196 Henderson, L., 98 Highest Reconstruction Council (ASA), 193–206 Hill, H.A., 89n14 Hill, Sir Q., 86 Hoffmann, P. G., 190, 202 Howard, John B., 166 Hull, C., 39 Hungary, 26n18 hyperinflation, during occupation, 36 283 I Iatrides, J. O., 62n19, 89n1, 89n7, 89n9, 91n58, 214n27 IBPR See Interallied Bureau of Postwar Requirements (IBPR) individual liberties, in Greece, Industrial Rehabilitation, 34 industrialization, 20, 182–9, 191–3, 196, 197, 204–9, 215n41, 217n66 INSEE See Institut National de la Statistique et des Sciences Economiques (INSEE) Institut National de la Statistique et des Sciences Economiques (INSEE), 28n51 institutions of post-war relief, participation in, 40–7 Interallied Bureau of Postwar Requirements (IBPR), 40 International Bank for Reconstruction and Development, 184 international economic relations changes impact, on Greece, 189–92 International Red Cross, 33, 46, 65n73 invisibles, 126–7 Italy, 31–3, 76, 189 J Jackson, R., 94, 95, 116n7, 116n11 Joint United States Military, Advisory and Planning Group (JUSMAPG), 178, 225, 226 JUSMAPG See Joint United States Military, Advisory and Planning Group (JUSMAPG) 284 INDEX K Kanellopoulos, P., 89n2, 96, 97, 99, 100, 117n32, 128–30, 181 Kantzias, P., 147n63 Karamanlis, K., 108, 265 Kartalis, G., 101, 105, 136, 233, 234, 236, 239 Kassimatis, G., 96, 97, 117n25 Kegel, K., 217n73 Keynes, J. M., 99, 117n30 Koliopoulos, J.S., 27n36 Korea economic implications of, 238–40 political implications of, 236–8 war, Greek reconstruction impact, 236–48 Korean War, 61n11, 241 Koumoulos, G., 215n39 L laissez faire, 230 Lambrakis, D., 245 land lease, 39–40 land redistribution, 28n57 land reform, 25 League of Nations, 14, 26n18 Leeper, R., 96 Lehman, H., 43, 94, 95 Leith–Ross Committee, 42 Liberal party, 181, 183 Liberation Government, 54, 76 Lignadis, T., 27n37 liquidity, 136 London Agreement, 124, 129 Greek economic policy aftermath of, 121–2 Lyttelton, O., 76 M Maben, B. F., 90n26, 93, 118n57 MacVeagh, L., 40, 48, 62n34, 64–7n55, 72, 73, 89n16, 157 See also Varvaresso, resignation of Maier, C. S., 268n8 Manzavinos, G., 134, 135, 211, 220n114 market economy, 139 Marshall Plan, 3, 6, 7, 158, 178, 192, 193, 209, 230, 233, 241, 247, 250, 261, 265, 267 Marshall, George, 263 Mathiopoulos, V., 27n36 Maximos, D., 150 Maximos, S., 87 Mazower, M., 26n19, 27n44 McNeill, W. H., 96, 140, 157, 171n41, 216n46 McNeill Mission and London Agreement, 96–103 Melas, G., 228 Metaxas, I., 31, 85 Mikoyan, A., 76 Military Assistance Program (MAP), 154, 237 military currency, 47 military expenditures, 223, 233 Milward, A. S., 36, 62n23, 214n16, 216n47 Ministry of National Economy (Greece), 33, 129 Ministry of Supply, 77 Modern Capitalism, Momtchiloff, N., 27n37, 27n44 monetary development, 124 monetary reform instruments for, 54–5 resulting problems, 55–9 monetary reform, preconditions right for, 51–4 monetary stabilization, 46, 69, 81 money issue, 71 Monnet Plan, 267 Morgan, General, 99 INDEX 285 O occupation, 31–8 hyperinflation during, 35–7 impact on real economy, 31–4 OEEC (Organisation for Economic Co-operation and Development), 190, 195, 197, 200, 207–9 Ottoman rule, 11 Oxfam, 61n7 per capita income, 1, Pesmatzoglou, I., 92n65, 92n80 Philaretos, D., 204, 206, 211 Pindos, I., 80 Pipinelis, P., 27n28, 27n31 Plastiras, N., 69, 70, 76, 89n2, 229, 232, 236 policy on imports, after Varvaressos, 128–33 political and economic developments, at 1948 fall, 209–13 Political Committee for National Liberation (PEEA), 62n22 Populist Government, 184 Populist party, 181, 183 Porter, P.R., Head of ECA mission, 224, 230, 232, 241, 242, 244, 252n12 Porter Mission, 149–74, 191, 192 post-election Greek external economic policy, 105–8 post-war reconstruction, 40 poverty status, “Preliminary Report on Greece” (World Bank), 181 private income, 233 profits, 80 Psalidopoulos, M., 216n48, 216n61 Ptolemais, 185, 198 public debt, 13, 14 public power corporation, 245, 250 public spending, 250 P Papagos, A., 226, 238, 251, 265 Papandreou, G., 38, 46, 48, 52, 55, 67, 71 Patterson, G., 77, 89n14, 90n39, 113, 135 Paul A Porter, Ambassador, 114, 149–153, 169n5, 190–191 Report of the Porter Mission, 191–192, 216n48 R Rankin, K., 27n23, 97, 106, 107, 117n25 reconstruction agency and Committee for Marshall Plan, 192 reconstruction expenditure, 222 reconstruction policy, 179–89 reconstruction program, 223 relief operations, 40 Richter, H., 117n31 Moschopoulos, D., 89n4 Mutual Security Agency (MSA), 236 Mylonas, A., 100, 101 N National Bank of Greece (NBG), 14, 202, 203 National Defense Corps (NDC), 159, 168 National Liberation Front, 38 National Unity Government, 67 NBG See National Bank of Greece (NBG) NDC See National Defense Corps (NDC) Nelson, D., 76 Netherlands, 21 New Industrialized Countries (NIC), Nicolaides, 207, 208, 217n66 Nixon, J., 135 286 INDEX Romania, 38, 118n42 Roosevelt, F.D., 33, 46, 76 royalists, 68, 84 Russia, 187 S Sacig, 32 Saka, Hasan, 154 Sbarounis, A., 35, 63–6n43, 73, 90n21 Scobie, R., 46, 48 Seferis, G., 92n74, 116n7, 147n56 Shonfield, A., Sideris, I., 69–71, 73 Singler, 198 Skouras, S., 61n8 Sofoulis, T., 89n2, 99, 129, 140, 159, 176, 177, 211 Sofoulis Government, 181 South African Central Bank, 43 Soviet Union, 38, 118n42 Spencer, F.D., 89n8 stabilization package, 57 Stalin, J., 38, 46 Stavrianos, L.S., 90n34, 171n41 Stephanopoulos, S., 119n60, 134, 181–3, 195, 199, 216n48 Stockman, D., 96 Strange, S., Stranger, Roland, 160 Svolos, A., 55 Svoronos, N., 7, 26n5, 27n37, 28n56, 28n57 Sweden, 21 Sweet-Escott, B., 29n60, 29n63 T tax system, 243 Taylor, W.H., 74 Technical Chamber of Greece (TEE), 19 A Temporary Long Term Plan for the Economic Recovery of Greece, (1948–1952), 200 Theotokis, J., 227 trade deficit, 161 Trade Unions, 79 Truman Doctrine, 2, 6, 111, 112, 260 Truman, Harry S., 109, 190 Tsakonas, A., 215n42 Tsaldaris, C., 106–8, 112, 114, 115, 117n27, 132, 140, 148n82, 154, 176, 188, 191 Tsouderos, E., 31, 38, 39, 41, 96, 99–102, 105, 117n17, 117n32, 136, 180, 183, 184, 232 Tsouderos–Bevin Agreement, 121 Turkey, 110, 125 U UK See Britain unemployment fund, 64n67 Unger, L., 107 United Nations Relief and Rehabilitation Agency (UNRRA), 34, 37, 41, 43–7, 57, 63n45, 64n66, 70, 72–4, 77–80, 83, 85–7, 91n56, 93–6, 98, 103, 104, 107, 110, 111, 119n57, 123, 124, 126, 128, 131, 133, 134, 136, 137, 139, 140, 184, 186, 187, 258–61 Council, 44, 45 Greece Mission, 131 UNRRA See United Nations Relief and Rehabilitation Agency (UNRRA) USA, 15, 22, 23, 34, 39–41, 48, 134 V Van Fleet, J. A., 178, 225, 226 Varkiza agreement, 89n9 Varvaressos, K., 8, 29n60, 40–5, 48–51, 57, 63, 63n38, 63n42, 121, 122, 124, 125, 136, 138, INDEX 177, 180, 181, 183, 185, 189, 195, 203, 205, 209, 257, 258, 260, 264 approach to exchange rate, 49 clothing policy, 83–4 experiment, 88 policy on imports after, 133 reform, economic polocy of, 87–8 reform, implementation of, 78–84 resignation of, 93–116 resignation of, 84–7 Varvaressos report, 214n20 Varvaressos stabilization, 75 Varvaressos’ financial orthodoxy, 162 Varvoutis, G., 150 Venizelos, E., 19, 20, 29n49, 112 Venizelos, S., 107–10, 113 Venizelos incident, 229 Vergopoulos, K., 28n55, 28n57, 28n58 volume of relief supplies with allies, negotiations on, 45–7 Voulgaris, P., 89n2, 93, 94, 96 premiership of, 75–7 W wages, 78–80 Waley, D., 47 war on economy, 37–8 wealth status, Wittner, L. S., 120n103, 214n14 287 Woodhouse, C.M., 26n3, 26n5, 27n24, 27n29, 27n34, 28n57, 29n66 World Bank, 102, 181, 185, 188 X Xydis, S., 40, 62–3n31 Y YSESA program, 223, 235, 245, 250 Yugoslavia, 31, 38 Z Zachariadis, N., 90n33, 187 Zafiriou, R., 120n88 Zighdis, I., 8, 184, 185, 187, 188, 191, 195–7, 202, 204, 205, 215n39, 216n48, 217n66, 218n86 Zolotas, X., 8, 19, 26n5, 26n9, 26n13, 26n20, 27n25, 27n26, 28n52, 29n61, 29n63, 29n68, 29n69, 49, 52, 56–8, 62n21, 64n62, 64n63, 64–5n69, 65n72, 65–6n74, 65n78, 65n79, 65n81, 69–71, 75, 88, 92n65, 92n78, 145n6, 180, 186, 188, 194–6, 198, 202, 203, 214n18, 216n50, 216n60, 217n66, 257 exchange rate plan, 51 ... Bodleian Library, Oxford; the National Archives, College Park, MD; the Library of the Hellenic Parliament, Athens; the Greek Historical and Literary Archive, Athens; and the Library and the Historical... Historical Archive of the Bank of Greece, Athens I am also personally grateful to Messrs N Pandelakis and K Papachrysanthou, who entrusted me with the private papers of A Diomidis and K Varvaressos... toward the great industrial economies of Europe These absorbed the major part of Balkan exports and funded them with capital to finance their imports gap Intra-Balkan trade was small, given the