JEWISH TRIUMPH AND GREEK FAILURE, ON WW II REPARATIONS

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By Professors M. C. Geokas and A. T. Papathanasis

The Nazi occupation in Greece during WW II was brutal, with large numbers of young men and women rushing to the mountains, to join the resistance, which led to reprisals by a ghastly rule, that for each Nazi soldier killed, 50 Greeks were to be executed on the spot. The loss of life during WW II including military deaths, fighting in the resistance, reprisal executions and deaths from the horrible famine was enormous, amounting to 520,000 or 7.2% of population, a toll even higher than all WW II American deaths (500,000), representing only 0.4% of Americans. Greece was exceeded in WW II percentage of deaths, only by Poland (17.2%,) USSR (10.4%) and Yugoslavia (10.9%). The start of Nazi occupation was followed by large-scale requisitioning of everything edible that could be dispatched to Germany such as grains, livestock, meat, cheese and other foodstuffs, which had disastrous consequences, with hundreds of thousands dying from the slow terrible death of starvation. About 300 people per day were dying from starvation, in Athens alone. The annual per capita consumption of bread, was reduced from 179 kilos ( good quality) in 1939, to 40 kilos of poor quality, in 1942. Additionally, material losses and damage to infrastructure were extensive. The Nazis burned 1600 villages, each with a population of 500 to 1000 people or more, usually massacring the inhabitants beforehand. When resistance fighters would ambush a German convoy, reprisals were swift and indiscriminate, against the civilian population of nearby villages.

Unfortunately, about 60,000 Greek Jews, were rounded up and taken to Germany's concentration camps under appalling conditions. Many escaped by joining the resistance or through various disguises, auspices of sympathetic Greeks. The terror of Gestapo reigned supreme. We will offer only one, striking example of the knee-jerk tendency, for reprisals against the civilian population in Greece. Large numbers of military personnel became ill with Jaundice, to the consternation of the supreme Command and Nazi Medical Corps. They promptly accused the Greeks, for maliciously contaminating the water supply of German forces, threatened reprisals, and demanded a huge list of prominent citizens, to be held as hostages. At that electrifying moment however, "a deus ex machina" appeared on the scene, the late Professor Ioakimoglou, Chairman of Pharmacology at Athens University (for many years faculty member at Berlin University ), who had a stormy meeting with the Nazi Commander, and speaking impeccable German, explained authoritatively that the accusations were absolutely and totally absurd. The natives, he emphasized, acquire natural immunity against hepatitis, due to childhood infection, whereas the German troops, lacking such immunity, became easy pray to the disease. The timely intervention of Professor Ioakimoglou saved at least 150 prominent Athenians, who were to be executed by firing squad.

Material damage was enormous, to Greece's transportation by land and sea, to railroad stock, harbors, airports and factories, that were used during the occupation, and were destroyed, just before the retreat of Nazi forces. Material losses amounted to hundreds of $billions. In addition, in March 1942, the Nazis "forcibly borrowed" 10,530,120 gold sovereigns from the Central Bank of Greece, as an interest-free loan. The value of that loan today, with 3% interest amounts to a hefty $17 billion. The damage to Greek economy, to the educational system, with elementary and middle school buildings requisitioned for stationing troops and military supplies, and disruption of Health Care delivery, were enormous.

Thousands of forced laborers were send to Germany to work in factories, under appalling conditions. The death toll, 7.2% of population, and material destruction in WW II, together with the dreadful famine and large-scale requisition of everything valuable, including the gold, were a horrendous crime against the Greeks and bring to the fore, a tantalizing question: Why have the Greeks (who have been allied with the US, in every serious conflict of 20th century) been, so incompetent and incapable, to extract reparations from Germany, whereas the Jews, have been so enormously successful? Since 1945 Germany has paid about $100 billion to Jewish victims of WW II. The only paltry payment that Greece received under the Greek-German convention of March 18th, 1960, was 200 million Deutsche Marks to compensate Greek Jews, but nothing for other Greeks.

ANATOMY OF JEWISH SUCCESS: The Jews have been so eminently successful, in obtaining compensation, to the effect, that some observers have accused them, of transforming Holocaust into an industry. Even American companies have been pursued by Jewish Associations and groups of attorneys, because of their German subsidiaries. Some Jewish intellectuals are concerned that the very profitability of Holocaust, threatens to trivialize it. Recently, following protracted and bitter negotiations, German industry and government officials have established a fund of $5.1 billion to compensate Nazi slave laborers. There are about 240,000 surviving slave laborers, about 50% of them Jewish, who were maintained in concentration camps under horrible conditions. Some of the money will go to another group, the more numerous "forced" laborers, numbering between 700,000 to 1.5 million, most of them non-Jewish, who were brought from various countries, to work in Germany. Despite the fact, that less than 100,000 of them are Americans, negotiations were spearheaded by class-action American attorneys, by Jewish groups and by the US government. The key concept has been to provide $7,500 to each slave laborer still alive and smaller amounts to forced laborers. The central role in negotiations was played by Mr. Stuart Eizenstat, United States deputy Treasury Secretary and part of the money will come from American companies, with German subsidiaries. The Jewish Conference on Material Claims Against Germany, has been extracting monies from Germany and allocating it to forced workers, for a long time. In order to explain the success of Jews in extracting reparations, we should remember that they suffered the horrible Holocaust in WW II, a distinct crime in history. The USSR, others might say, lost 20 million people and nobody speaks about a "Russian Holocaust" and there is only one US Holocaust Museum in Washington D.C., commemorating the Jewish people who perished in Europe. The key question is, why have the Jews, been extremely effective on reparations?

The main reason is this: regarding the Holocaust and its huge assets, American Jews have taken the lead, not Jews in Israel! The American Jews have been politically strong in our society, they have powerful organizations, are richly represented in the corridors of power and are endowed with a potent network in Europe, as well. They have been masters in pulling strings, on legitimate international issues and in exerting pressure on foreign Governments, through US Government agencies. In addition, they have great legal expertise and experience, on class-action litigation.

Thus, the politically potent American Jews, working through the machinery of US Government, have masterfully made reparations and restoration of Jewish property throughout Europe, a human-rights issue. You do not need to be a rocket scientist to comprehend the enormous political muscle of Washington, to impose its will on Europeans.

Additionally, the American Jews, have found a key player, a "Holocaust Czar", on Mr. Stuart Eizenstat, the dynamic Deputy Treasury Secretary, who is determined, to challenge, threaten censure, and cajole, European Governments and Companies, to come to terms with their shady relationships to Nazis. These achievements, however, are not without ironic twists. While Israel claims to be "the central representative of survivors of Holocaust and their offspring," yet, it has never appointed such a Czar, has no clear policy on Holocaust assets, and no detailed plan, on how to adjust its foreign relations on account of the Holocaust. Israel's policy has been at best, clumsy and haphazard in trying to reconcile its identity as a Jewish nation, with hard-nosed national objectives. Moreover, Israel cannot afford to allow "Holocaust Politics" to interfere with its diplomatic, economic and military ties to Europe. On the other hand, Israel was very unwilling to take action against, of what appears to be, a strong Jewish diaspora concern. This is why the main task for reparations was undertaken by American Jews, who have made the Holocaust a hot issue, pursued jointly by the US and by Mr. Stuart Eizenstat, together with the Jewish Organizations, under threats of sanctions, Congressional hearings, and class-action lawsuits in Federal Courts. This is how and why, the American Jews succeeded admirably in their task for reparations.

GREEK FAILURE: It is blatantly obvious that the Greeks have failed miserably in obtaining their rightful reparations from Germany, despite enormous loss of life and material destruction, they suffered in the hands of Nazis. This is a monumental injustice to the people of Greece. Failure of the Greek elite to press the claim of reparations, constitutes a blunder of historic proportions. They have been unable to recover even the gold which was "forcibly borrowed" by Germans from the Central Bank of Greece. A report by the US Department of State has verified, that this Greek treasure was part of a confiscation by Nazi Germans of an estimated $580 million, of Central Bank gold and other assets during WW II. The report also states that Turkey, Argentina, Portugal, Spain, Sweden and Switzerland participated in the loot. While only Switzerland has agreed to settle claims from Nazi era financial abuses, the rest of the countries mentioned by the report, have not been eager to part with their ill-gotten riches. Germany has not been willing to pay WW II reparations to Greece, and Turkey has never turned over any of the $44 million monetary gold to the Tripartite Gold Commission. The Germans assert that in 1953 an International settlement was reached on the loan issue, with the London Agreement on German Foreign Debts. However, ratification of the Moscow Treaty of September 12,1990, (also known, as the four-plus-two Treaty), which called for German reunification, marked the official end of the Cold War, and signaled that German debts had become claimable. The German government insists, that the Moscow Treaty was not an "Official Peace Treaty," and that in 1958, Greek Premier Constantine Karamanlis, secured a much needed German loan, and promised, that Greece will have no further claims, despite the fact that there is no record of such agreement. Most importantly, a German official note in March 1967, explicitly recognized that Greece has never abandoned its claims for reparations. Germany indicates that, for fifteen years Greece has received large sums of money from EU funds, large part of which came from Germany's contributions. However, the European Commission has ruled that the EU treasury cannot and will not settle, bilateral financial disputes. On the other hand, Spain and Portugal have received similar EU payments, although they had no Nazi-era claims against Germany. The most inappropriate and illogical German argument on reparations is, that Greece should readily agree, like Poland and Russia, not to raise such an issue.

Nevertheless, Greece does have a strong legal case, it should pursue the issue of reparations and Germany should repay the Greeks including the return of the forced loan with interest. The loan was officially recognized by Hitler's government in Article 4 of the 1942 loan agreement and Germany's legal obligation to repay the loan still stands. We wish to emphasize that the 1942 loan is only part of German WW II debts to Greece. The Greeks also claim reparations for staggering loss of life and material damages, which may be as high as $31 billion. Greece should not be relegated to a second class claimant as compared to Israel, but should be treated in exactly the same manner. The question is, how can this legally powerful and morally just goal, be accomplished at this point in time?

RATIONALE: It has been known for some time, that Greece's approach to WW II Reparations has been haphazard and ineffective. Several pivotal factors, acting independently or in tandem, have hampered Greece's effectiveness in achieving success.

The fact that Greece is a junior partner in mighty EU, which is dominated by the Germany-France Axis, has made her position very awkward on reparations, because of a prevailing spirit of partnership and cooperation within the EU, coupled with strongly reduced emphasis on nationalism and absolute sovereignty. Greece has received generous funds from the EU, targeted on boosting her infrastructure, making such support invaluable in the long run. This fact has dumped the desire for extracting reparations from Germany, especially today, that Greece is happily on track to join the EMU, and has a $11,640 per capita GNP, to boot.
We must also remember, that after the Korean conflict, the Cold War was in full swing and that Greece has been a member of NATO, sharing borders to the north with three Communist nations. NATO membership was key to Greece's survival and here again, Germany was a linchpin to the alliance. Thus, Greece has been involved in a delicate balancing act, caught betwixt and between, bilateral and national interests, as well as reparations. Apparently, the Greek leadership had decided, not to put undue pressure on Germany (with large number of Greek guest workers, since the 70's) for WW II Reparations, but to look instead, at long term relations, based on Greece's security, military equipment, and economic interests.
The last 25 years, Greek Foreign Policy has been preoccupied with Turkish aggression in Aegean and Cyprus, with continuous tension and threats of war. The Greeks epitomize magnificently, the famous saying that "if God wishes to tyrannize certain people, gives them the Turks as neighbors." Despite NATO and EU membership, the Greeks have resisted Turkish aggression on their own, by maintaining strong armed forces and have expended a hefty amount of their budget, on military preparedness. Moreover, the bifurcation of Greece's Foreign Policy, towards the EU and the US, has been difficult to maneuver and to coordinate, around each colossus. Additionally, the scandalous and persistent tilting of US Foreign Policy towards Turkey, has frustrated and infuriated on the extreme, both the Greek people and the Greek-Americans. The persistent tension with Turkey, has made the Greeks careful and solicitous, for the support of Germany. Many members of the Greek ruling elite, (in Parliament, Government and Intelligentsia) are German trained, the sitting Prime Minister speaks German better than English and very wisely, has close ties with the German leadership. Thus, the Greek elite, from within and outside the Government, will be very reticent in pursuing reparations from Germany, with the necessary vigor. Thus, it is in the Reparations Issue, where for decades, the political leadership has failed the magnificent people of Greece, in an almost identical manner, with the leadership of Israel, which has also failed the Jews, on the same issue.

HOW AMERICAN JEWS DID IT? The similarity between Greeks and Jews, stops abruptly, at the point of clumsy and haphazard handling of reparations, by the Governments of the two respective nations. However, unlike the passive Greeks, the Jews went into overdrive and developed quickly, the World Jewish Restitution Organization (WJRO), as an umbrella group, the World Jewish Congress obtained letters from two Israeli Prime Ministers for legitimacy, and American Jewish Organizations joined in, with hurricane force. As a result, members of Congress summoned Bankers and Diplomats for hearings in Washington D.C., and dozens of class-action lawsuits were filed in American Federal Courts, to recover Nazi-era assets. Two International Conferences were organized, one in London in December 1997, on Nazi gold and another in Washington D.C. in 1998, sponsored by the US government on Holocaust-era looted assets, with 44 nations in attendance and with Israel having a limited role. Most importantly, during the last four years, Mr. Stuart Eizenstat, the "Holocaust Czar," who has occupied various positions in the Departments, of Commerce, State and Treasury, because of the significance of the issue of Reparations, has tenaciously carried all the relevant data with him, and has a staff assigned to work continuously, on this important project.

WHAT SHOULD THE GREEKS DO?: It is indisputable that Greece has a powerful legal case especially for return of officially borrowed ( by written agreement) gold and conservatively, about $31 billion for the enormous losses of life and material destruction. However, it is abundantly clear from the preceding considerations that the Greek Government cannot do this alone. Fifty-five tumultuous years have passed, since the end of WW II, and ten years from the end of Cold War, with Greece anchored in NATO, and EU, now ready and anxious to join the EMU. Thus, the sea change in the European landscape and the dynamic relationship of Greece with Germany, make revival of the Reparations issue, unattractive, in Athens. We strongly believe , that following Israel's example, the demand for Reparations can be jump-started by the Greek-Americans, in cooperation with Scholars, in Greece and London, and the Government of Greece.

WE PROPOSE THE FOLLOWING:

The immediate formation of a National Organization, from the ranks of Greek-American prominent Attorneys, Law Professors and active or retired Federal Judges, from all across America, who specialize in International Law, in Class-Action Litigation and in War Reparations. Such expert attorneys might be found in big American Law firms that have already been involved on issues of Holocaust assets, with Germany and Switzerland. This Organization should be named "The Greek-American Reparations League" (GARL) and should include members of Law Societies, from New York, Philadelphia, Chicago, Los Angeles, San Francisco and other cities, as well as Scholars from the US and the London School of Economics.
GARL should develop a branch in Athens, with experienced Greek Attorneys and Law Professors and other Scholars, who should accumulate all relevant data, from Government Archives, which are necessary for pursuing Reparations, and with methodology roughly similar to that of American Jews and of Israel. The next step in this enterprise should be a top level "Reparations Conference," right in the center of Washington D.C.
Following the US Army famous aphorism: "Tell Me Where The Money Is, To Tell You Where the Action Is," the new Organization should include in its Bylaws the term that it will distribute to its members (partners) generous compensation from recovered WW II Reparations. The certainty of lucrative compensation for members of GARL, will be a driving force, for vigorously pursuing this project on behalf of the Greek people.
It should be stipulated (with written agreement between GARL and the Greek Government) that no Reparation Funds will go to Government coffers, for pork-barrel projects. Reparation Funds will be a special Superfund, deposited in a Bank of a non-EU country and be administered by a group of prominent Greek and Greek-Americans (under a Non-Profit Corporation) to include: The presidents of the Supreme Court and Council of State, in Greece, retired high ranking Officers of armed forces and Judiciary, and the Archbishop, plus prominent Greek-Americans such as active and retired University Presidents, active and Retired members of the Federal Judiciary, the Archbishop, presidents of corporations, distinguished University professors and others.
Most importantly, the Reparation Funds should be used in support of a mammoth Proneitalist Program, for solving the crucial Demographic Problem of Greece, now on track to produce a Demographic Catastrophe, during the next 25 years. Total Fertility Rate (TFR) is only 1.3 (replacement at 2.1), with the Greek Society dying slowly, with closing of primary schools, reduction of army draftees and aging of population. In-migration in Greece is considerable and immigrants, largely illegal, amount probably up to 10% of the inhabitants. The brisk influx of unskilled workers, will create serious problems in a global economy, especially if the present low TFR continues. The recent violence in Spain involving North African immigrants and strange political events caused by in-migration in Austria, should be a wake up call. We strongly believe, that the fighting in WW II, in the resistance and the brutal occupation by the Nazis, have seriously depleted the Gene Pool of Greek Society (by 7.2%) and therefore it is, fair and absolutely imperative, that Reparations be expended in support of a strong Proneitalist Program, for boosting fertility in Greece to replacement levels. Thus, Reparation monies should go to those eternal heroines of Hellenism: The Greek Mothers.

CONCLUSION: This powerful legal case for WW II reparations from Germany, can be successfully pursued only by Greek-American initiatives, with the methodology of American Jews, in close cooperation with Scholars from Greece, the London School of Economics, and the tacit support of the Greek Government. This, will be a stupendous rallying point and a Badge of Honor, for all Greek-Americans. We are the only Community on earth, capable of correcting this notorious injustice against Greece. The "forcibly borrowed" gold, should be returned with at least 3% interest, for $17 billion, and the death of 7.2% of Greeks, plus the material destruction, should be compensated at $31 billion, for a total of, $48 billion. Reparation funds should be used for boosting the Gene Pool, of descendants of the "Greek Holocaust," and on strong programs, for improving the lot and adjustment of all immigrants, in Greece. As US citizens, all Greek-Americans, should strive to correct the injustice , that Nazis perpetrated against the country of our ancestors, which above all, donated to the people of this planet, the unique and most spectacular gift ever, the Democratic system of Government, a highly effective antidote, against the scourge of totalitarianism.

4-2-2000

Michael C. Geokas, M. D., M. Sc., Ph.D.*
(Em) Professor of Medicine and
Biological Chemistry, UC, Davis
School of Medicine

Anastasios T. Papathanasis, Ph.D.**
Professor of Political Economy
Central Connecticut State University
New Britain, CT.

*/** President and Vice-President respectively of Demokritos Society of America, A Think-Tank on issues of Hellenism.

E-mail: geokas@ix.netcom.com

Web: www.Demokritos.org

Tel: 925\946-0180

SOURCES:

1. Clogg, R.: A Concise History of Greece. Cambridge University Press, Cambridge England. 1992, p.126.

2. "Greece, Germany at Odds over Nazi Loan. Athens Seeks Repayment of Funds Extorted in 1942," Cosmos, January,1996, p.3.

3. Senator Arlen Specter(R-PA) introduced Senate Resolution 251, on February 2, to commemorate March 25,2000. It reads in part: "Greece is one of only three nations in the world, beyond the former British Empire that has been allied with the US in every major International conflict in this Century...

4. Giraldi, P. M. and Taylor, J. R.: Holocaust as Political Industry. The University of Chicago Magazine, October 1999.

5. "The Price of the Holocaust," The Economist, February 20, 1999, p. 18.

6. Andrews, E. L. Germans To Set Up $5.1 Billion Fund For Nazis Slaves. The New York Times December 15, 1999, p.1.

7. Henry, M.: Where Israel Is Failing the Jews. The Jerusalem Post, Internet Edition, November 5, 1999. {http://www.jpost.cm/Features/Article-41.html}.

8. "U.S. and Allied Efforts to Recover and Restore Gold and Other Assets Stolen or Hidden by Germany During World War II," This Report Courtesy of The U.S. Department of State.

Released May 7, 1997. Please contact the State Department or visit the State Department website at http://www.state.gov/ for further information. Wednesday, May 7, 1997. Coordinated by Stuart E. Eizenstat, Under Secretary of Commerce for International Trade, Special Envoy of the Department of State on Property Restitution in Central and Eastern Europe. Prepared by William Slany, The Historian, Department of State. With Participation of Central Intelligence Agency, Department of Commerce, Department of Defense, Department of Justice, Department of State, Department of the Treasury, Federal Bureau of Investigation, Federal Reserve Board, National Archives and Records Administration , National Security Agency, U.S. Holocaust Memorial Museum.

9. "Deceptions of Swiss Banks." Editorial. The New York Times, December 7, 1999. p. A22.

10. June 1998 Supplement to Preliminary Study on US and Allied Efforts to Recover and restore Gold and Other Assets Stolen or Hidden by Germany During WW II. H. Turkey's War Time Trade in German Looted Gold. http://www.state.gov/www/regions/eur/rpt_9806_ng_links.html

11. Greece still wants loan back from Germany, Athens News Agency: News in English (PM) November 12, 1998.

12. Geokas, M.C.: A Vital Issue for Hellenism: The Demographic Problem of Greece. The Hellenic News of America, September 1995, p. 1.

13. Simons, M.: Resenting African Workers, Spaniards Attack. The New York Times, February 12, 2000, p. A3.

14. Cohen, R.: If Democracy is not enough, A Specter is Haunting Europe: the 20th Century Hatreds. The New York Times, February 2, 2000, p. A12.

15. Melloan, G. Europe is Flirting With a Replay of the 20th Century. Wall Street Journal February 8, 2000, p. A27.