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tion of sulphuric acid and such of its end products as fertilizer, paints, and soap, is
Greece's main chemical activity. The major products of the food-processing industry
are flour, olive oil, confectionery, wines and spirits. Almost half of Greek industry is
located in the Athens area near port facilities and communications, labor supply,
markets, and electric power.
War loss to the Greek industrial potential (actual physical plants and machinery),
through damage and lack of maintenance, was relatively small, but the possibility of
using this potential has been seriously reduced by loss of materials and ports, disruption
of transportation, destruction of power units, lowered worker efficiency, and lack of busi-
ness confidence. UNRRA imported $39.5 million worth of industrial raw materials and
equipment, which, with improved transportation and repair of power facilities, brought
1946 production to 51.2 percent of prewar levels. At the beginning of 1948 average com-
mercial and industrial activity reached a level 70 percent of prewar.
Greece has extensive and varied mineral deposits, of which bauxite, chromite, nickel,
and manganese are of potential strategic importance. Greece is the principal world
source of emery. In view of the lack of other fuel supplies, large reserves of low-quality
lignite, if properly worked, would be of considerable importance to the Greek economy.
Sizable lead and zinc deposits are presently being considered for development and ex-
ploitation by American mining interests and may soon provide products for export.
Greek mineral resources have never been fully exploited. Production has been low and
costs high because of limited transportation, widely scattered deposits, and deficient
methods, equipment, and personnel. Minerals comprised 5 percent of total 1938 ex-
ports; a market for even this small amount existed only because of abnormal demand by
Germany and other countries preparing for war. Because there is only a small metal-
lurgical industry, Greek minerals are exported in raw or semi-processed form. Greek
mines deteriorated 50 percent during the war through flooding, loss of equipment, and
neglect. Lack of capital to restore these facilities and to install efficient production
methods has kept postwar production at 17 percent of the prewar level.
Re-establishment of the prewar level of industrial and mining production depends
on the restoration of internal stability, development of new export markets, and recon-
struction of the transportation system. The American Aid Mission is formulating a
program along these lines as well as furnishing industrial and mining equipment and
materials. The few rivers in Greece are a potential source of power, but their develop-
ment would require a large investment and a long period of time.
4.
TRANSPORTATION.
Restoration of prewar Greek transportation facilities is essential for both economic
and military needs. The prewar single-track lines and single-lane roads were barely
adequate for Greece's backward economy. The five war years of neglect and destruction
left both rail and road systems crippled. The road surfacing (much of it water-bound
rather than asphalt-bound) has in most cases disappeared, SO that speed of motor traffic
has been reduced to as little as 5-10 miles an hour and the damage to vehicles greatly in-
creased. Considerable repairs have been made on the railways, but guerrilla attacks are
constantly causing new damage
II-3
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"ocrText": "SECRET\ntion of sulphuric acid and such of its end products as fertilizer, paints, and soap, is\nGreece's main chemical activity. The major products of the food-processing industry\nare flour, olive oil, confectionery, wines and spirits. Almost half of Greek industry is\nlocated in the Athens area near port facilities and communications, labor supply,\nmarkets, and electric power.\nWar loss to the Greek industrial potential (actual physical plants and machinery),\nthrough damage and lack of maintenance, was relatively small, but the possibility of\nusing this potential has been seriously reduced by loss of materials and ports, disruption\nof transportation, destruction of power units, lowered worker efficiency, and lack of busi-\nness confidence. UNRRA imported $39.5 million worth of industrial raw materials and\nequipment, which, with improved transportation and repair of power facilities, brought\n1946 production to 51.2 percent of prewar levels. At the beginning of 1948 average com-\nmercial and industrial activity reached a level 70 percent of prewar.\nGreece has extensive and varied mineral deposits, of which bauxite, chromite, nickel,\nand manganese are of potential strategic importance. Greece is the principal world\nsource of emery. In view of the lack of other fuel supplies, large reserves of low-quality\nlignite, if properly worked, would be of considerable importance to the Greek economy.\nSizable lead and zinc deposits are presently being considered for development and ex-\nploitation by American mining interests and may soon provide products for export.\nGreek mineral resources have never been fully exploited. Production has been low and\ncosts high because of limited transportation, widely scattered deposits, and deficient\nmethods, equipment, and personnel. Minerals comprised 5 percent of total 1938 ex-\nports; a market for even this small amount existed only because of abnormal demand by\nGermany and other countries preparing for war. Because there is only a small metal-\nlurgical industry, Greek minerals are exported in raw or semi-processed form. Greek\nmines deteriorated 50 percent during the war through flooding, loss of equipment, and\nneglect. Lack of capital to restore these facilities and to install efficient production\nmethods has kept postwar production at 17 percent of the prewar level.\nRe-establishment of the prewar level of industrial and mining production depends\non the restoration of internal stability, development of new export markets, and recon-\nstruction of the transportation system. The American Aid Mission is formulating a\nprogram along these lines as well as furnishing industrial and mining equipment and\nmaterials. The few rivers in Greece are a potential source of power, but their develop-\nment would require a large investment and a long period of time.\n4.\nTRANSPORTATION.\nRestoration of prewar Greek transportation facilities is essential for both economic\nand military needs. The prewar single-track lines and single-lane roads were barely\nadequate for Greece's backward economy. The five war years of neglect and destruction\nleft both rail and road systems crippled. The road surfacing (much of it water-bound\nrather than asphalt-bound) has in most cases disappeared, SO that speed of motor traffic\nhas been reduced to as little as 5-10 miles an hour and the damage to vehicles greatly in-\ncreased. Considerable repairs have been made on the railways, but guerrilla attacks are\nconstantly causing new damage\nII-3"
}