Evening star., 1948-12-26
ERP RebuiIds Greece
Despite Inefficieney in
Regime, Report Says
By Robert S. Allen
(Ldst of Three Articles,J

that as a result of the $500, ,000. 900
American aid program, the economy
Of Greece has been restored to ap-
proximately prewar levels.
However, in recording this prog
ress, the report bluntly said that
certain major ratholes" exist which
are seriously impairing the recovery
program. Chief among these are
the Greek government, scathingly
described as "appallingly ineffi-
cient," the fumbling and costly cam
paigns of the Greek army against
the Communist guerrillas, and un-
curbed financial black-market op-
erations by wealthy Greeks that
are draining a large amount of the
wealth out Of the country.
The report, submitted to the State
Department and the Economic Co
operation Administration, is part of
o voluminous survey on conditions
In Greece made by American off,
cials In that country. :.
Black Market Costing Millions
According to these authorities,
Greece is losing millions of dollars
annually through this financial
black market.
The existence Of this black mar
ket," the report declares, lis causing
q diversion of at least $4,000 900
annually In remittance and other In
visible receipts into the black mar
ket. Moreover, sales of gold coins
on the Athens market In order to
cope with inf1ationary pressure cost
more than $4,000, 900 in 1946-47 and
$4,000, 900 in 1947-48."
The incompetence and obstruc-
tionism Of the Greek government
In the struggle to restore the ma
tional economy are criticized sting
ingly. The report charges fatty that
American efforts to initiate effec-
tive economic controls are being
handicapped seriously by the re-
s1stance of the Athens government,
the Greek press and organized pri-
vate interests.
Wealthy Glasses Criticized.
The report is particularly critical
OF the refusal of the wealthy classes
IN Greece to bear their proportion
ate share Of the recovery program
The report declares that not only
are these classes escaping a proper
tax load, but that the Greek govern
ment Is incapable of imposing and
collecting such taxes.
The Greek press and radio also
Is charged with deliberately creating
the impression that such new taxes
as have been imposed to pay a small
part OF the recovery program were
due wholly to the harsh dictates of
American officials.
But despite all the obstructionism
and incompetence of the Greek
government, press, army and vested
interests, the report states, inpor-
tant economic goals have been
achieved as result Of the Ameri-
can aid program and the work of
American officials.
Agriculture's Recovery Reported.
agricultural output has recovered
approximately to prewar levels"
the report says, "and, in conjunction
with imported food supplies, is now
providing average caloric availabili-
ties Of 1850 per day. This compares
very favorably with prewar stand
ards. Industrial recovery has
reached an output of at least so
per cent Of prewar levels. Indus
trial unemployment in Athens and
Piraeus is negligible. Communica-
tions also have been very largely
restored. The ocean-going merchant
feet has been largely restored also
through insurance settlements and
United States loans"
The report also reveals some in
teresting facts concerning Greek
events Immediately preceding Presi-
dent Truman's Inauguration of the
American aid program. This his
torical background would indicate
two things: First, that an economic
recovery plan launched by the
Greeks themselves was destroyed by
reactionary political and business
elements; and, second, that the
British dumped" the Greek prob
lem In the lap of the United States
after they had failed to solve it.
The Greek recovery program was
undertaken by a DR.. Varvaressos
during the UNRRA period. He at
tempted to establish stable price
wage relationship through system
of price controls and direct tax
alton.
This program was quickly and
devo fatino1v snnaShed " the reD0rt
discloses, "by the political strength
of the merchant and industrial
group, aided and abetted by the
appalling inefficieney of the govern
ment services, and thoroughly dis
couraged any new efforts to impose
similar control measures"
Subsequently, in 1s46, the British
sent a mission to Greece to re-
store economic order. The British,
according to the report, resorted to
a number Of surface expedients
49, 80 %bera wos the release 0f