GREEK CRISIS.

Auckland Star, Volume LXIII, Issue 121, 24 May 1932, Page 7

GREEK CRISIS.

PREMIER RESIGNS. Strike Brings Clashes With Military. FINANCIAL DISTRESS. (Unibed P.A.—Electric Telegraph—Copyright) ( LONDON, May 23. The Athens correspondent of the "Daily Express" reports that drastic cuts in the pay of civil servants caused a strike of State employees. The Premier, M. Venizelos, decided to answer the challenge with a counterthreat describing 11 general strike in the nation's hour of crisis as tantamount to revolution. He announced that all strikers would be tried by court-martial. This bold order led to a series of clashes with the military forces. M. Venizelos lias resigned and the strikers have decided to re'.urn to work. A reply has been received by the British Government to the recent protest of the British representative in Greece supporting the formal protest made by the International Financial Commission at Athens against the failure of the Greek Government to carry out its legal obligations in regard to foreign loans. The British Government was informed that the present financial situation of Greece compelled the Greek Government to suspend temporarily the transfer into foreign currency of sums for the payment of coupons 011 Greek loans maturing 011 May 1, as, if such payments were continued, a complete collapse of the drachma would follow. Since the only remedy for preventing a Budget deficit would be a fresh issue of paper money, the Greek Government hoped that the temporary suspension of payments would enable it to await the results of the Lauspnne Conference, and rench an agreement with its creditors. | The Government stated that its creditors would benefit, as Greece would bo able to make them fair and, as far as possible, satisfactory proposals. The • Greek Government was prepared to submit the whole question to arbitration, 1 which might include the capacity of Greece to pay. 1 Similar replies are understood to have • been received by the French and Italian 1 Governments.