Keeping Greece Solvent
Since 1945 Greece has been kept solvent only by foreign aid. But the Americans, who have met most of the cost, have shown some impatience at the country's political instability, which has prevented Greece from carrying out the many painful operations needed if one day she was to stand on her own feet. It was not until Marshal Papagos obtained a secure majority at the elections last November that drastic action was politically possible. Meanwhile, American aid has been rapidly diminishing. Mr. Markezinis, who has been in London this week, and is the Marshal's chief economic minister, has been handling his task with great determination. In seven months he has reorganised the banking system, he has devalued the drachma, freed imports from all restrictions, and has even begun to tackle the problem of the budget, burdened by the disproportionately high cost of the armed forces which Greece has to maintain in. the interest of Western security as well as of her own. Two months ago he produced in Washington a long term plan of capital development through which he hopes to bring Greece nearer to the point of paying her way. Though his reception was friendly, no promises were given, and it is clear that further American aid will consist, not of grants as before, but of loans on commercial terms. One of the terms will certainly be that the service of the pre-war foreign debt should be resumed, at least in part. No doubt that is one of the things Mr. Markezinis has been discussing here. But the many British friends of Greece will hope that he has also succeeded in interesting British capital in his plan and in the very valuable mineral resources his country undoubtedly possesses.
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