bandits, throughout all parts of the country. But in spite of the obvious difficulties engendered by such bandit operations, the American mission has made substantial progress in several fields of operation.

Generally, the mission seeks to improve the standards of agriculture; to assist and advise in the reconstruction and repair of highways, ports, canals, railroads, communications, waterworks, and hydroelectric projects; and the development of such other legitimate work programs as may qualify under the terms of the aid agreement.

In addition to projects of a physical nature, the work of the mission also must take into consideration related problems of a more difficult character. Much will depend upon the physical resources of the Greek people and their individual resistance to disease and epidemics; so public health is of major importance. Public-health work in Greece has never been on a sound basis, and years of war and occupation by enemy forces have resulted in a still further deterioration in general health standards. Malaria and tuberculosis alike claim the lives of thousands of Greeks during the course of each year. Military operations, particularly with reference to northern Greece, have resulted in great and serious social displacement. Scores of villages have been deserted by terrorized inhabitants who have fled from their homes to cities and towns where Greek Army garrisons provide a greater measure of protection against the bandit bands.

The refugee problem is one of the most serious aspects of the Greek dilemma and must inevitably result in an increased expenditure by the aid mission for relief during the winter months and a still further lowering of public-health standards.

The sanitation standards in Greece are extremely low, as gauged by western criteria. Water- and filth-borne diseases, such as typhoid fever and dysentery, flourish throughout the country. Many of the sewage lines and other forms of sanitary installations were wantonly destroyed by the Germans prior to their withdrawal from Greece. While we saw no actual starvation in Greece, ample evidence was seen to exist for the statement that there is widespread malnutrition, especially among children. The basic diet of the Greek farmers and peasants is and always has been bread, cheese, olives, meat, and wine. A strange prejudice exists against the use of canned products; and, for this reason, there are on the shelves of stores in Greece a vast amount of UNRRA food supplies. However, there is little question but that American shipments of cereals and pulses have been a major factor in averting the specter of mass starvation. Unquestionably, should such shipments be stopped at the present time, starvation on a large scale will develop in northern Greece, and the possibility of mass and widespread epidemics among the displaced refugee population is a most serious aspect of the entire Greek problem.

We made some extensive inquiries relative to the presence of UNRRA food supplies on the store shelves. Our inquiries disclosed that very little, if any, of those actually had reached the stores via what we know as the black market, but rather because of the prejudice of the villagers and the Army to the use of canned goods. The Army commissary officers and troop supply officers, whenever possible, would exchange the UNRRA goods for fresh meat and vegetables.

The prices asked for the UNRRA goods in the stores are so prohibitive as to be out of reach of the average Greek citizen. We made.

several purchases, for example, in Alexandoupolos, Greece, of UNRRA items. We bought a can of the Argentine canned beef, a small can, for which we paid $1.25, American money; a can of Australian cheddar cheese, for which we paid $1.15; a small can of Portguese sardines, for which we paid 40 cents; a package of American Army biscuits, from the American Army ration, for which we paid 25 cents-making a total for the meal, which was very welcome after the diet of Greek food, $3.05. Inasmuch as the average Greek worker receives less than $2 a day for his labor, it is evident that such foreign goods as are displayed for sale are not characteristic items of diet for the great majority of the Greek people.

Unfortunately, large quantities of UNRRA supplies and equipment. in Greece still remain unsold and undistributed. Poor selectivity and inadequate study of Greek needs resulted in many instances in the dumping on Greek docks of supply items and equipment totally unsuited to the needs of Greece. These supplies remain warehoused in Athens under the direct control of the Greek Government. Complete inventories are lacking, and hardly a day goes by but that some additional supplies are discovered. The aid mission reports that every possible effort is being made to ascertain the type, quality, and quantity of such supplies and equipment still remaining in order that suitable advice may be given to the Greek Government looking toward the assimilation into the Greek economy of all of these products by June 30, 1948.

But in spite of what I have said relative to UNRRA, in spite of inefficient control and direction at times, there is little doubt but that the foodstuffs which were put into Greece, either directly or indirecly, were a major factor in avoiding widespread suffering during the postwar period. It is, however, to be hoped that those responsible for the administration of the American aid program in Greece will make such representations to the Greek Government as will result in the assimilation of those undistributed supplies into the Greek economy.

It should be borne in mind that UNRRA goods are not subject to American direction, as they were turned over in toto and fee simple to the Greek Government; so absolute direction by American authori'ties in disposing of these surpluses is not within American power. There are many and diverse activities of the aid mission-too many, in fact, to discuss at any length in the brief time allotted to me today. In all of the contacts established with Greek personalities, both in and out of Government service, we made every effort to determine whether or not undue political influence, in violation of the express intent of the Congress, was being exercised by any American officials or agencies in the conferences or in the many necessary contacts with the Greek Government.

In all instances it was stated by those interviewed that American participation in Greek affairs was being confined to advice and to proper suggestion as to the utilization of American funds, equipment, and personnel. No evidence was found to substantiate any claims which might have been made or might in the future be made that American authorities, as such, are bringing pressure of a political nature on the Cabinet or in the Parliament of Greece.

To the contrary, there is reason to believe that on occasion efficient operation and administration of the program of aid may suffer be

cause of a reluctance of American officials to be more forceful in their contacts--properly more forceful, where American funds and equipment are concerned.

However, it may be stated generally that the relationships between the American Mission for Aid to Greece and the Greek Government appear to be on a sound basis of operation and cooperation; and that the personnel selected to administer the general program with its many diverse activities appear to be honest in approach to their problems, capable in administration, and able in the execution of their appointed duties.

Greece has long suffered the evils attendant upon an unbalanced, budget, and the natural child of such a condition is fiscal chaos. One of the high-priority targets of the mission has been the achievement of a balance in the budget. Fiscal authorities, working in close cooperation with Greek Government officials, appear to feel that they are on the verge of success in this most important matter. If successful, the achievement of a balanced budget will be of inestimable value to the end of a sound fiscal state in Greece.

Recent military developments, however, would indicate that it may be necessary to divert still more funds to the prosecution of the war against the Andartes, in which case it may not be possible to achieve this balance in the national budget.

If undue emphasis appears to be laid upon the strictly and purely economic factors of Greece in our finished report, it should be remembered that in Greece the political, the economic, and the military factors are so inextricably interwoven that you cannot separate them. You pick up a thread that appears to lead to economy and it winds up in northern Greece somewhere between the Greek Army and the bandits. Wherever international communism is a major factor this situation is found to be true, but in light of active combat operations now going on in the mountains of Greece, the picture is even more confusing.

The primary mission of the Members, Mr. Teague and myself, was to be a study and report on international trends and movements. Obviously the principal of these, in connection with Greece, is communism both political and military.

However, it became immediately apparent after arrival in the country that such a study would necessarily cut across other fields of, activity, across the jurisdictions of other committees and individuals.

As an illustration of the point in question, the act of blowing up a bridge is a military fact. The fact that reconstructing the bridge for useful operation is a matter of costs and accounting means that it is also an economic factor. Almost every difficulty faced by Greece today falls into the same category.

It is actually amazing, Mr. Chairman, in light of the conditions existing in Greece today, that a relatively stable government has been formed, in view of the obstacles and adversity; and I consider it a tribute to Greek determination and willingness to cooperate to the l utmost in rehabilitation matters.

Remember that upon the arrival of the American Aid Mission to Greece a desperate situation was found to exist. Food was almost exhausted. Foreign exchange was largely expended. Bandit bands

were gaining in strength daily through voluntary enlistments. There was a terrorized population and an extremely low civilian morale. There was an impossible political situation in which many Greek politicians were first of all party men and secondarily, Greeks.

However, since that time, the mission has achieved a somewhat remarkable record in bringing about a degree of financial stability, with the assistance of the great majority of Greek Government officials. Voluntary recruitment for the bandit bands has almost ceased, with replacements being on the basis of impressed recruiting, from which, incidentally, the impressed soldier takes the first opportunity to desert, making his way down to some Army garrison.

As to food, the food situation, due largely to the imports of American cereals, pulses, fats and oils, et cetera, is not too bad at the present time. Black-market operations, while by no means ended entirely, have been curtailed to a large extent. The Greek export trade gives evidence of some degree of recovery. A system of export-import licenses was recently instituted by the Greek Government. Income tax reform legislation will unquestionably be passed in the very near future, such legislation being intended to distribute the national wealth more equitably over the population and to rid the country of a situation which exists at present, whereby rich Greeks abroad are able to conceal their holdings and thus escape the force of income-tax legislation.

Important contracts for public works have been awarded by the American Aid Mission. Work is actually in progress on several projects including the dredging of the Corinth Canal and the clearing of harbor debris. A major general strike was avoided a month or so ago by mutual arbitration.

These factors represent a bright side of the picture in Greece. Unfortunately, there is a dark side-and an extremely dark one, in my opinion. Before passing on to the political situation as it exists today, I should like to point out that on the debit side of the ledger economically there is one serious condition. A measure of friction appears to exist between two American agencies; on the one hand, the State Department, and on the other, the American Mission to Aid Greece. It varies in degree depending upon the situation. But it is evident from discussions with all concerned that this matter of friction is in existence.

The chain of command is confused, in that equal responsibilities are shared by the American Ambassador, a splendid individual, and former Governor Griswold, who is a fine and able American. I do not think actually that the friction is between them as much as in the lower echelons of command. It is certainly to be hoped that in light of recent statements which look toward the solution of just such problems as this that the problem in Greece will be clarified in the near future.

The second of Greece's problems, aside from the economic, is the political; and perhaps nowhere in the world is there a more complex political situation than exists in Greece. The great heritage of the Greek past, together with the individual Greek's love for democratic processes, have combined to make individualism at one and the same time a blessing and a bane. It must be remembered, however, that Greek political thought in many instances goes back to the Agora, the ancient market place at the foot of the Acropolis. Some Greek politi

cal thought and some procedures in the Parliament today stem directly from the Greece of 2,000 years ago.

I well recall one day when we discussed the political situation with five prominent Greeks; each one had his own solution; no other solution would possibly work and each one of the five predicated his solution upon the necessity of his being appointed Prime Minister. It is almost axiomatic that anyone who has been anything in Greek politics has at one time or another been Prime Minister.

Greece is the melting pot and the meeting place for East and West. It is here that rampant tides of invasion have swept back and forth across the mountains and the plains of Hellas. It is here that the indirection of oriental thought and action meets the direct processes of western philosophy and culture. It is here that the East comes face to face with the more direct mental processes of the West. In the merging of these different complexes, it is little wonder that the resultant political situation is something which neither of the progenitors recognize.

For instance, Greece has 27 political parties. A disagreement on the floor of the Parliament, in which one individual, a dominant personality, is outvoted, is apt to result in his forthwith emergence as the head of a "splinter" party. The parties rise and fall. They increase in number; they decrease in number. But I presume, by and large, 27 is a good year-round average for the political picture.

Greece has on many occasions been in a state of bondage to Turkey, to Bulgaria, to the Axis nations. It has been alternately free and slave.

The present political situation, in the light of all these difficulties, is again nothing short of a magnificent achievement. You must remember that for the first time, certainly in recent Greek history, the Prime Minister of the country is not a member of the majority party in Parliament. Mr. Sophoulis is the head of the Liberal Party and an old warrior of the Venezelist school. He is also Prime Minister in the coalition government between the Liberal and the Populist Parties. Mr. Tsaldaris, who would, under normal operating procedures, be Prime Minister, is Deputy Prime Minister instead.

In order to properly understand the present situation relative to communism in Greece, it is necessary to go back to the Metaxas regime and I shall pass over this very rapidly because I do not want to bore you with too many political details.

Metaxas, the dictator, came into power as the result of a split between two major parties, a situation which could only happen in Greece. He was named by the King as Prime Minister and was permitted to assume the reins of power. His dictatorship, which was to have a great bearing on future Greek events, was not popular with the liberty-loving Greeks of that time, nor is its memory popular today. But, for the sake of historical accuracy, it must be said that the Metaxas dictatorship, not withstanding some of the external trappings borrowed from nearby Italy, was more nearly comparable to the dictatorships of Dolfuss and Schuschnigg in Austria or Salazar in Portugal. Metaxas, even according to people who were politically opposed to him at the time and who are now in the Government, was personally able and honest and is generally given credit for advanced labor legislation achieved during his regime.