ANNEX B

Total aid in the form of goods and services received by Greece as of June 30, 1951

Total aid received by Greece from all sources_. Total grant aid received from U. S. Government_.

ANNEX C

2,386, 400, 000 1, 865, 700, 000

Drachma drawn by United States against credits accruing from the sale of surplus property to Greece

Foreign building office program_.

Embassy administrative expenses.

Fulbright program expenses and grants ($200,000 of this amount is now being drawn. Fulbright drawings are limited by agreement with Greece to $400,000 per year).

Embassy travel expenses_.

Total

$1,263, 688 845,000

1, 000, 000 50,000

3,158, 688

Hon. HERBERT C. BONNER,

ATHENS, GREECE-EXHIBIT 4

MUTUAL SECURITY AGENCY, Washington 25, D. C., February 14, 1952.

United States House of Representatives,

Washington 25, D. C.

DEAR MR. BONNER: During the course of the Bonner subcommittee briefing by the ECA Mission to Greece in November, it is understood that you asked some questions as to what the administrative costs of the ECA Mission to Greece had been during each of the years of its operations, and what the ratio of these costs were percentagewise to the total aid furnished to Greece. These questions were not fully answered with the information available at the meeting.

We believe that the attached table will furnish the answers to your inquiry. You will note that the aid totals shown on the table differ from those furnished by the mission during your visit. This results from the fact that the totals given by the mission represent aid received, while those shown on the attached table are the aid allotted during the periods shown. The figures shown for administrative expenses do not include the expenses of attached United States personnel engaged in technical assistance activities. The dollar costs of this staff are included in the over-all costs of the technical assistance program. The technical assistance local currency costs are provided by the Greek Government and not from the United States portion (5 percent) of the local currency counterpart account.

Sincerely yours,

GEORGE W. LAWSON, Jr.,
Director, Budget Division.

Administrative expenses of ECA mission to Greece as related to aid granted

Represents direct United States dollar obligations. Does not include local currency (drachmae) obliga" tions from United States portion (5 percent) of counterpart account as follows:

Fiscal year:
1949

1950
1951

Local currency obligations for administrative expenses (in dollar equivalents)

$253, 052 486, 114 689, 733

ATHENS, GREECE--EXHIBIT 5

AMERICAN AID TO GREECE, JULY 1, 1951

After World War II Greece's resources were exhausted and its people demoralized. The country suffered both physically and spiritually. Its industry, communications, transportation, and trade were almost completely destroyed. Vicious intlations wiped out virtually all savings. Fear, want, and misery prevailed. In some sections there was actual hunger. Thousands of Greeks were shelterless and without means to support themselves.

Even worse, powerful outside influences seriously threatened to rob Greece of its independence. In 1944, a foreign inspired and bloody Communist insurrec tion, designed to seize the Greek Government by force, was barely beaten down. During the three critical years that followed, intrigues and political pressure to bring Greece under Soviet domination constantly increased. By the begin ning of 1947, it was clear that Greece could not remain a free country or recover economically without outside help.

Direct American aid to Greece began when President Harry S. Truman laid down a new foreign policy for the United States before a joint session of Congress on March 12, 1947. The new policy, which became known as the Truman doctrine, provided for military and economic aid to Greece and Turkey. The moral uplift in Greece was immediate. Substantial military and economic aid was quickly given. The American Mission for Aid to Greece began to function actively in July 1947.

Other historic events soon followed. In June 1947, George C. Marshall, the American Secretary of State, announced the intention of the United States to make substantial contributions toward European recovery. Mr. Marshall's proposal developed into the European recovery program, popularly known as the Marshall plan. Ten months later Congress passed the Foreign Assistance Act authorizing $5,055,000,000 for the first year of a 4-year recovery program for 16 European countries and Western Germany.

President Truman immediately appointed Paul G. Hoffman to be Administrator of the Economic Cooperation Administration, the American agency participating in the program. Within 9 hours after his confirmation by the United States Senate, Hoffman authorized $21,000,000 for relief for Italy, France, Austria, the Netherlands, and Greece. Other authorizations followed and ECA missions were sent to the participating countries.

The ECA mission to Greece arrived and began to function in July 1948 under an agreement with the Greek Government which defined Greece's participation in the ERP. The ECA gradually took over the economic aid activities from AMAG. The United States Army group, Greece, continued to furnish technical aid and supplies to the Greek National Army. The ECA mission benefited from the planning and work done by AMAG in the economic field and continued many endeavors which AMAG started.

The Greek recovery program was seriously obstructed by Communist bandit warfare, inspired and supported from outside Greece's frontiers. The banditry was destructive. About a tenth of Greece's total population became refugees. Chaos and uncertainty spread through the country. At times the irregular

warfare threatened to defeat the objectives of the Marshall-plan mission and the Greek Government. The military situation gradually improved in 1949. In September the Greek National Army drove all but a handful of bandits from Greece.

The change-over from AMAG to ECA was accomplished during the darkest period of the internal strife. New administrative and technical personnel was recruited and even during the worst days of the warfare most phases of the ECA program went forward. The program advanced from survey and planning to accomplishment. The shake-down period ended-the era of achievement started. The activities of the mission reached into almost every corner of Greece. There are few phases of Greek industrial, agricultural, business, civic and governmental life which were not directly affected by its work. It would be hard to discover a citizen of Greece whose everyday existence has not been touched by some form of the Mission's aid in Greece's recovery program.

The Mission had no authority to interfere in the operation of the Greek Government nor dictate in any manner to Government officials. Mission members conferred constantly with Greek businessmen and Greek Government officials but only in an advisory capacity. It was a policy of the ECA mission not to engage in any operation which the Greeks themselves can perform.

The Mission is divided into divisions, which are sometimes subdivided into sections, each responsible for furthering a segment of the country's recovery program. Each division and section has American technical experts and specialists whose jobs are to see that the particular endeavor of the division is earried forward as rapidly as possible. They have daily contacts with Greek ministers and lesser officials, and make progress reports to division chiefs who coordinate the work of the divisions.

ECA field representatives are exactly what the designation implies. They are the eyes and the ears of the Mission. They represent the Mission in the

field where they maintain contact with the Greek people and local officials in the areas assigned to them, and report field conditions back to Mission officials who are directly interested. The field representatives are not policy makers but the information they feed back often guides the mission staff in making plans and policies.

Field representatives are stationed in areas which cover the entire Greek mainland, Crete, the Aegean, Dodecanese Islands and other Greek islands. They live in the areas to which they are assigned.

The field men send from 150 to 200 typewritten field reports monthly to mission headquarters. These reports are channeled to ECA officials concerned with the information. At regular intervals the field men assemble in Athens to make personal reports, receive new directives and take part in round-table discussions of mission business and plans.

Field representatives obviously must establish and maintain good working relations with local leaders. They must thoroughly understand matters in which the mission is concerned, such as transportation, industry, labor, finance, agriculture, health, public welfare, civil and military government. They must report conditions, local attitudes, and relations between the capital and the provinces. The work of the field representatives necessitates their traveling constantly about their assigned areas. Guerrilla warfare in the past hampered their movements. As Greek military successes became widespread the scope of field operations broadened. The work takes them to isolated sections and they frequently live under the most primitive conditions. By showing people in remote areas through practical demonstrations how their living conditions can be improved by agricultural, home building, road construction and other aid they are an active force in combating communism.

The field representatives have been of great assistance in developing many phases of the Mission program. As security conditions improved, they helped make plans for the refugees, rehabilitation and repatriation of refugees. They were particularly active in promoting the work relief program which gave productive employment to indigents and refugees instead of a dole and charity gifts.

Many times field reports have resulted in a considerable saving of funds both for the mission and the Greek Government. Often, stimulated by field representatives' visits, local communities by the contribution of labor or utilizing other local resources, have been able to provide for much of their own reconstruction. Any misuse of funds or wastage of materials or lack of interest on the part of local officials is immediately reported to Athens.

The field man's job is a hard one and often means isolation and real physical hardship. He must be a jack-of-all-trades. Many new ideas and much practical knowledge are gleaned from his reports. Many innovations in mission policies stem from the information he sends back to mission headquarters. In Greece, the ECA field man must be a combination diplomat, salesman, and trouble-shooter.

AGRICULTURE-GREECE'S BIGGEST ASSET

Greece is primarily an agricultural country. Its total land area is approximately 32,500,000 acres. Only about 8.000,000 acres of this total are arable. Yet almost 65 percent of the 7,950,000 population live on 950,000 farms which average only about $263 in yearly income per farm. Greek farmers are among the poorest in Europe.

The country has never been self-supporting. There isn't enough productive land to feed the people, under existing techniques of land use. Large amounts of wheat, rice, beans, and other products must be imported. Exports such as tobacco, dried fruits, olives, olive oil, grapes, and wine fall far short of balancing the account. An increasing population is creating even more pressure upon Greece's limited land resources.

Greece's agricultural resources are still largely underdeveloped. Its rivers run unused into the sea. Farming methods are generally antiquated and in some cases have remained unchanged since before the time of Christ. In addition the peasant farmer and his lands suffered severely during 9 years from wars, foreign occupation, and widespread Communist banditry.

There is an understandable lack of up-to-date technical competence in governmental, research, and educational institutions. There was never much concern for the practical and nationally beneficial application of research findings.

Teachers, research workers, and technical experts had little or no contact with the actual problems of the farmer as do their counterparts in the United States. Greek agriculture is mainly peasant farming centered around small villages. The farmers live in the villages and go out each day to work small and fre quently scattered tracts of land in the vicinity. This "fragmented" peasant agriculture in Greece is characterized by inadequate family incomes and a steadily descending standard of living, brought on in part, by climbing costs.

A major aim of the ECA mission and the Greek Government has been to increase food and fiber production in Greece. This entails the fuller use of soil and water resources through reclamation, drainage, irrigation, and soil conservation. Probably the most spectacular achievement has been in the field of land reclamation through rice production. Fine quality rice was grown on alkali and salt wasteland projects in different sections of Greece. Nothing of value has ever grown on these lands. Since the beginnings of Greek history these areas, which in the aggregate total 250,000 acres, have been considered worthless, often not even fit for grazing.

In 2 to 5 years large areas of the alkali land should be sufficiently cleansed by fresh water used in the production of rice so that crops such as corn, wheat, cotton, alfalfa, and other crops can be grown. Soil tests taken at a project at Anthele in central Greece before the project began and after the flow of water was stopped, showed that about 60 tons of salt per acre was washed from the top 3 feet of land during the first rice-growing season.

The outstanding success of the rice-growing land reclamation projects had a stimulating effect on both Greek farmers and Greek Government officials. Rice imports represent a drain of millions of dollars yearly on Greece's foreign exchange resources. The Greek Government hopes to have a domestic yield, enough to cover home needs, by 1952.

In addition to the rice-growing land reclamation projects, the Engineering Division of the Ministry of Agriculture, assisted by the ECA mission, is directing flood control, drainage, and irrigation projects. Yields were doubled in some subirrigated areas and summer crops, following wheat, are being grown in some irrigated sections.

Land reclamation is basic to the creation of a balanced economy in Greece. The country's arable land is being appreciably increased by the drainage of lakes and swamps, by the control of torrents and by irrigation of dry lands which are unproductive during the long, dry summer months. The drained lands are often more productive than the average because they represent virgin soils often containing large quantities of organic matter. The lands are frequently subirrigated permitting winter and summer production.

Less than 500,000 acres of Greek land were irrigated prior to World War II This land was largely supplied with water from local springs or wells operated by windmills or inefficient water-lifting devices powered by horses or oxen.

A program of well drilling was inaugurated to provide water for productive lands which cannot be served by gravity supplies. Several hundred wells have been drilled to an average depth of 400 feet. The employment of a foreign well drilling firm greatly facilitated the program. Fifteen hundred Diesel-engined centrifugal pumps and 870 Diesel 8- and 10-horsepower engines were distributed throughout the country, and pipe, well casing, and pumps were imported from abroad.

About one-third of the Greece's 8,250,000 acres of arable land is suited for power farming, but few Greek farmers can afford tractors and tractor-drawn equipment. The Mechanical Cultivation Service of the Greek Ministry of Agriculture, financed by the ECA mission, imported for its own use and resale to farmers and farmers' cooperatives several million dollars worth of heavy and light farm machinery and earth-moving equipment.

The equipment included wheel tractors, crawler-type tractors, combines, harvesters, binders, hay presses, corn shellers, corn driers, and plows. This equipment is helping the Greek farmer progress from slow, ancient hand methods to modern farming. In addition the Mechanical Cultivation Service received a large supply of trucks, tractors, and other United States Army equipment purchased in Germany with Marshall plan aid. The service also has draglines for the construction of irrigation and drainage projects.

The mission financed the construction of modern farm-machinery repair shops, sheds, fuel stores, and other buildings in important rural areas. Others are under construction. Several tractor schools were organized and young Greeks were trained to handle all kinds of modern farm machinery and earth-moving equipment.