[Distributed to th e Council C. 215. M. 71. 1928.11. and the Members of the League.] [F. 520.]

Geneva, May 21st, 1928.

LEAGUE OF NATIONS

Eighteenth Quarterly Report of the Refugee Settlement Commission

Athens, May 14th, 1928.

FINANCIAL SITUATION

A. Situation on March 31ST, 1928. Liabilities : £ s. d. Proceeds of the 7% 1924 L o a n ...... 9,970,016 6 9 Proceeds of the 6% 1928 L o a n ...... 499,759 17 0 Contributions of the Greek Government for the purchase of cereals in 1924 ...... 219,619 13 0 Receipts (interest, e t c .) ...... 329,335 9 4 Bonds deposited by refugees as security for their d e b ts ...... 144,425 0 0 C om m itm ents...... 167,320 5 10 Various per contra a c c o u n ts ...... 350,001 3 11

£11,680,477 *5 10 Assàs : Balances available at Bank and Head Office. 1,260,442 12 6 Bonds deposited ...... 144,425 o 0 Recoverable advances...... 4,164 9 9

Expenditure : Agricultural Settlement : x s. Establishment ex­ s. d. penses .... 7,723,010 12 4Y2 General expenses 753,915 16 6 % 8,476,926 8 11 Urban Settlement : Establishment ex­ penses .... 1,153,582 10 4 General expenses 21,375 19 9 1,174,958 10 Central Administration:

General charges . . 139.386 Furniture and fittings ...... 23,610 9,814,881 11 1 Sums applied to redemption of the 7 % 1924 Loan ...... 106,562 18 7 Various per contra a c c o u n ts ...... 3 5 0 ,0 0 1 3 h Total .... £11,680,477 15 10

s- d' N. 975 (F.) + 775 (A.) 5/28. Imp. J. de G. Publications of the League of Nations

li. ECONOMIC AND FINANCIAL 1928. II. 20. The following notes facilitate the reading of this balance-sheet.

L i a b il it ie s . £ s. i Proceeds of the 6% 1928 L o a n ...... 499.759 17 0

In accordance with the Protocol signed at Geneva on September 15th, 1927, the Hellenic Government was enabled to contract a loan of £9,000,000 for the purpose of stabilising the Greek currency, liquidating the budget arrears of the Hellenic State and continuing the work of the establishment of the refugees. With this object, in February 1928, the Government, through the intermediary of the Hambro and Speyer Banks, raised a 6% Loan for £4,070,960 and $17,000,000 (approximately £6,500,000). The equivalent of the other £2,500,000, in accordance with the Agreement concluded between the Hellenic Government and the Government of the United States of America dated January 18th, 1928, will be furnished by the latter by a loan of $12,167,000 at 4 per cent. The total sum destined for the establishment of the refugees is £3,000,000, of which £500,000 (i.e., £266,666 and 81,137,498) is to be charged against the proceeds of the £6,500,000 Loan, and the remainder against the proceeds of the American Loan, which, in virtue of Article 6 of the Agreement mentioned above, is to be devoted in its entirety to the establishment of the refugees. The first sum of approximately £500,000 was paid to the Commission by the Hambro and Speyer Banks during the months of February and March, i.e., £266,666 by Hambros Bank and §1,137,498 by Speyer & Co. These two sums added together produce the amount mentioned above of £499,759 17s., dollars having been converted into £ sterling at the rate of 84.88. With regard to the proceeds of the American Loan of $12,167,000, these have not as yet been paid to the Commission, in view of the fact that the Agreement relating thereto must previously be ratified by the American Congress (it has already been ratified by the Greek Chamber). This Agreement has already been transmitted by a Note of the President of the United States dated February 6th, 1928, to Congress, and has been examined by the Ways and Means Committee of the House of Representatives, which has pronounced favourably upon it. Although everything would point to an early ratification, it is not possible to state with absolute certainty wTien the funds in question wrill be placed at the disposition of the Commission. £ s. I Receipts ...... 329.335 9 4

The analysis of this heading is as follows : £ s. d. Interest on b a la n c e s ...... 252,752 5 2 Caution money forfeited...... 8,652 10 4 Various r e c e ip ts ...... 10,792 6 4 Share of the Refugee Settlement Commission in the pay­ ments by refugees (25 percent of capital repayments and 100 per cent of the payments of interest) . . . 57,138 7 6 329,335 9 4

By the agreement concluded between the Government and the Commission in September 1927, the Commission undertook that the income resulting from payments by the refugees, other than the 75 per cent of same paid to the International Financial Commission for the extraordinary amortisation of the 7% 1924 Loan, would in the future be employed for the ordinary service of the same loan, in accordance with Article 16 of the Organic Statutes, excepting in the case of unforeseen accident, when the Commission might be called upon to use this income to meet extraordinary expenditures unforeseen in its budget. Unfortunately, various disasters (drought, hail, plague of grasshoppers, floods, etc.; affecting many districts in Macedonia during the last six months have obliged the Commission to take advantage of its right to use this income, in view of the fact that neither the Govern­ ment nor the Commission possessed any other funds with wTiich to help the stricken refugees. Consequently, while the income in question received since the conclusion of th e said Agreement only amounts to £25,070, the extraordinary credits available for unforeseen expenditure amounted to £45,143, viz : Purchases of seed, etc., for those districts in Macedonia £ s. d. attacked by drought and h a il ...... 28,000 0 0 Subsidies to districts whose crops were ruined by floods 17,143 o 0 Total .... £45,143 0 0

To this amount must be added the sum of 3,500,000 drachmas (£10,000) employed for the organisation of the service of the indemnification of agricultural refugees, undertaken b y the Commission for the account of the Government, the cost of which, at the special request of the Government, is to be charged against the receipts in question. This expenditure will later be covered by the proceeds of a special tax levied on those refugees to be indemnified. — 3 —

Bonds deposited by the refugees in provisional account as security for their d e b t s ...... £ s. d. 144,425 0 0 Bonds of the 6% 1923 Loan for theindemnification of £ s. d. immigrants from Bulgaria, 30,838,000 drach­ mas ...... 77,095o 0 Bonds of the 8 % 1926 Loan for the indemnification of exchangeable refugees from Turkey, 26,932,000 d ra ch m a s...... 67,330 o o (Converted on the basis of £2 10s. per 1,000 d r a c h m a s .)...... £144,425 o o Commitments...... £167,320 5 10

(a) Share of the InternationalFinancial Commission (75 per cent) of repayments of capital by refugees and 100 per cent of theproceeds of sales to £ s. d. n o n -r e fu g e e s ...... 106,562 18 7 (b) Rents to be refunded...... 3,538 5 9 (c) Caution money and sundry creditors...... 57,219 1 6 Total ...... 167,320 5 ro

A ssets. £ s. d. Balances a v a ila b le ...... 1,260,442 12 6 By balances available we mean the sums which still remain at our disposal at banks and at the Head Office. Naturally, these do not refer to balances available in the budgetary meaning of the word, all the available balances of the Commission being already engaged in order to meet various credits opened. £ s. d. Bonds d e p o site d ...... 144,425 0 o (See analysis above, “ bonds deposited by refugees,” etc.) Sums applied to extraordinary amortisation of the 7% 1924 L o a n ...... 106,562 18 7 This sum represents 75 per cent of the capital repayments made by the refugees, in addition to the whole of the sums collected from non-refugees for the value of land sold. The following analysis shows the detail : £ s. d. Paym ents by r e f u g e e s ...... 105,921 0 o Payments by non-refugees ...... 641 18 7 £106,562 18 7 Various per contra a cco u n ts...... 350,001 3 11 Value of buildings made over by the Caisse d’Assis- £ d. tance ...... 321,251 13 2 Sums to be derived from the sale of urban property . 28,134 o 7 State d e b t o r s ...... 95 14 3 Various d ep o sits...... 519 15 n £350,001 3 11

B. B udget for the Y ear 1928. When the budget for the new financial period was under consideration, the Commission found itself in a difficult position by reason of the fact that the supplementary funds resulting from the American Loan (to be concluded) of $12,167,000 (or £2,500,000) had as yet not been made available. It is evident that, since the loan in question had not as yet been effectively contracted, it was not possible for the Commission to commit itself to expenditure over and above its available funds. Consequently, the Commission was obliged to draw up two budgets, one provisional, with a programme within the limits of the effective balances in its hands, the other with a comprehensive programme the execution of which is subject to the realisation of the 812,167,000 Loan. The provisional budget allows for new credits up to an amount of £948,000 (£500,000 of the supplementary Hambro-Speyer Loan and £448,000 balance outstanding of the old loan), which is to be applied as follows : Drachmas 1. General expenses, Central Administration (for one year) .... 13,300,000 2. Agricultural establishment...... 245,000,000 3 ■ Urban estab lish m en t...... 73,500,000 Or, converted at the rate of 350 drachmas £948,000...... 331,800,000 — 4 —

The detailed analysis of the credits granted to the agricultural establishment is as follows' Old Greece Macedonia Thrace Epirus, Crete, etc. Total Drachmas Drachmas Drachmas Drachmas I. A n im a ls ...... 39,000,000 2,300,000 14,950,820 56,250,820 II. Houses...... 35,000,000 2,000,000 8,687,286 45,687,286 III. Agricultural imple­ ments ...... 2,000,000 1,950,000 3,299,600 7 -249,600 IV. Loans in kind. . . . 41,000,000 550,000 11,265,600 5 2 ,815,600 V. Public utility works 17,500,000 11,100,000 8,370,944 36,970,944 VI. General expenses . . 32,000,000 3,500,000 4 .375.750 39.875,750 VII. H ealth...... 5,000,000 —— 5.000,000 VIII. Reserve for unfore­ seen expenditure . — 1,000,000 150,000 1 ,150.000 Total . . . 171,500,000 22,400,000 51,100,000 2 4 5 , 000,000 The following credits have been approved for the urban settlement : New constructions : Houses Drachmas Drachmas Livadia ...... 5 5 ...... 2,062,500 Carditsa...... 4 5 ...... 1,687,500 P a t r a s ...... 3 0 0 ...... 11,250,000 P y r g o s ...... 1 0 0 ...... 3,750,000 A rgos...... 6 3 ...... 2,362,500 S a lo n ik a ...... 3 0 0 ...... 11,100,000 Chryssopolis...... 5 0 ...... 1,875,000 P r a v i ...... 1 0 0 ...... 3,750,000 C a t e r i n i ...... 1 0 0 ...... 3,750,000 V e r r i a ...... 1 5 0 ...... 5,625,000 Alexandropolis. . . . 7 8 ...... 2,925,000 F io r in a ...... 1 0 0 ...... 3,870,000 Canea...... 3 0 ...... 1,125,000 55,132,500 2. Administrative expenses (salaries, travelling expenses, etc.) .... 4,091,000 3 . Upkeep of quarters and w o r k s...... 2,505,000 4. Public utility w o r k s ...... 4,235,000 5. Survey of refugee quarters in T h r a c e ...... 125,000 6. Unforeseen e x p e n s e s ...... 1,294,000 67,382,500 There remains a balance of 6,117,500 drachmas, the allocation of which has not yet been determined. The general budget, the execution of which, as has already been seen, is conditional upon the realisation of the $ 12,167,000 (£2,500,000) Loan, is based on a programme for two years (1928 and 1929) for both the agricultural and urban settlements. We give below details of the receipts and expenditure foreseen as finally approved.

B udget of the refugee settlement commission for the financial period 1928-29. Receipts. (On a basis of 350 drachmas to the £.) I. Balance of the 7% 1924 Loan on December 31st, 1927 : (a) Funds deposited with the National Bank of Greece, the Bank of England and the Head Office of £ £ the Refugee Settlement Commission .... 1,040,309 (b) Cash in provincial b u r e a u x ...... 137,005 .177 ,314 II. Recoverable advances...... 5.293 III. Supplementary 1928 L oan...... 3,000,000 IV. Interests and s u n d r ie s ...... 100,000 V Receipts to be applied in accordance with Article 18 of the Bankers’ Agreement and Article 16 of the Organic Statutes : (a) Payments by refugees...... (See note1) (b) Dîme for 1926 : 53,000,000 drachmas .... 150,0001 (c) Dime for 1 9 2 7 ...... (See note 3)______£4,423^07 1 75 per cent of capital repayments are paid to the International Financial Commission for extraor­ dinary amortisation of the 7% 1924 Loan. The remaining 25 per cent of these repayments, as also the total amount of the payment of interest, has to be paid to the International Financial Commission for the ordinary service of the same loan, subject to the conditions of Article 16 of the Organic Statutes. In view of the fact that the majority of these payments are made in 6% and 8% Bonds the amortisation period of which has not yet been fixed, no definite estimate of these collections is, for the moment, possible. 2 In accordance with the Agreement concluded at Geneva in September 1927, the amount of this dîme will be paid by the Government to the Refugee Settlement Commission from the proceeds of the £3,000,000 Loan destined to the liquidation of the floating debt ; the Refugee Settlement Commission will then pay this over to the International Financial Commission for the ordinary service of the 7% I9Z4 Loan, subject to the conditions of Article 16 of the Organic Statutes. 3 The amount is not yet known. The proceeds of this dîme will be used in accordance with the pro­ visions of Article 16 of the Organic Statutes. — 5 —

Budget of t h e R e f u g e e S e t t l e m e n t Co m m issio n f o r t h e F in a n c ia l P e r io d 1928-29.

Expenditure. (On a basis of 350 drachmas to the £.) £ I. Credit balances of the 1927 Budget : 208,701,527.00 drachmas . . . 596,290 II, Recoverable advances...... 62,632

New Credits, 1928. III, General administration, 1928-29 : 26,600,000 drachm as...... 76,000 £ IV. Industries: {a) C arp ets...... 100,000 (b) Arts and crafts...... 28,570 128,570

V. Reserves : (a) General expenses (1930) 100,000 (b) Unforeseen (1928-29)...... 149,115 249-115 VI. Construction of roads, Trans-Nestos : 52,500,000 drachm as...... 150,000 VII. Agricultural establishment : 682,500,000 drachmas 1 ...... 1.950.000 VIII. Urban establishment : 374,500,000 d ra c h m a s ...... 1.070.000 Total I—V I I I ...... £4,282,607 IX. Receipts to be paid over to the International Financial Commission for the ordinary service of the 7% 1924 Loan, subject to the condi­ tions of Article 16 of the Organic Statutes 2...... 150,000 3 £4,432,607 Analysis of the Chapter “ Agricultural Settlement”.

Old Greece Macedonia Thrace Epirus, Crete, etc. Total Drachmas Drachmas Drachmas Drachmas I. A n i m a l s ...... 120,600,000 10,275,000 29,173,725 160,048,725 II. H o u s e s ...... 62,000,000 6,000,000 52,110,493 120,110,493 Ill, Agricultural implements 9,000,000 1,950,000 4 -799-953 1 5 ,749,953 IV. Loans in kind . . . 49,000,000 2,700,000 18,594,014 70,294,014 V. Public utility works . 86,900,000 28,075,000 17,258,815 132,233,815 VI, General expenses. . . 109,800,000 13,000,000 I 7 ,4 I 3 ,ooo 140,213,000 VII. Reserve for unforeseen expenditure .... 42,200,000 1,000,000 650,000 43,850,000 Total ...... 4 7 9 ,500,000 63,000,000 140,000,000 682,500,000 Owing to the uncertainty which unfortunately still prevails with regard to the date of the ratification of the Greco-American Agreement by the American Congress, it is not yet possible to say when this programme can be put into execution. This delay is very regrettable from every point of view, for, on the one hand, the execution of urgent work and the furnishing of certain supplies for which the need was urgent and which should have been dealt with at the beginning of the year have had to be postponed, and, on the other hand, general expenses necessarily remain at a level which is out of all proportion to productive expenditure, owing to the fact that it is impossible for the Commission to proceed to a temporary reduction of its cadres or to the dissolution of services which are necessary for the execution of its future programme. In view of the risk of an entire stoppage of works, which would certainly result in the early exhaus­ tion of the credits of the provisional budget, the Commission was obliged to enter into negotia­ tions with the Government for the grant of an advance of £1,000,000 on account of the future Loan of £2,500,000, in order to allow it to make commitments at once for work judged of the most pressing nature. The Government has considered this request favourably and has come to an understanding with the National Bank on the matter. It is to be hoped that the relevant agreement will be concluded in the course of this month.

C. C o l l e c t io n s . Collections credited during the three months January— March 1928 amount to : (a) In cash : £19,352 2s. id., of which sum '£5,478 2s. 2d., (75 per cent of capital repayments) was paid to the International Financial Commission for additional amortisation of the 7% 1924 Loan ; [b) In bonds : 15,229,000 drachmas or £38,072 10s. (at the rate of £2 10s. per 1,000 drachmas).

1 Macedonia : 479,500,000 drachmas ; Thrace : 63,000,000 drachmas ; Old Greece, etc. : 140,000,000 drachmas. 2 These receipts include the dime, the share of the Refugee Settlement Commission (25% cent) oi we capital repayment made by refugees and 100 per cent of the payments of interest by refugees. No definite estimate of these two last amounts is possible for the present. 3 This sum represents the amount of the dime collected in 1926. — 6 —

The distribution of these payments between agricultural refugees, urban refugees and non-refugees is as follows : Agricultural Urban Non-refugees Total refugees refugees s £ s. d. £ s. d. £ s. d. £ I In cash . . 13,537 i 11 5,807 10 2 7 10 0 19,352 2 1 In bonds . . 32,293 15 0 5,778 15 0 — 38,072 10 0

Total . . . 45.830 16 11 11,586 5 2 7 10 0 57,424 12 1 (a) Payments by agricultural refugees 1 : Payments made during the three months January to March amounted to 16,934,657 drachmas (in bonds and cash), an increase of 550 per cent in comparison with the collections of the corresponding quarter of the preceding year (3,295,484 drachmas). This increase is due to the fact that the number of refugees making payments has increased, their establishment having been meantime completed. The following table compares the paym ents made between 1926 and 1927. Payments made during the latter year show an increase of 50 per cent. Quarter 1926 1927 Drachmas Drachmas January—March . . . 726,444 3 ,295,484 April— J u n e ...... 4.224,712 6,158,111 July—September. . . . 16,148,296 11,564,267 October—December . . 3 ,563,783 15,161,959 24,663,235 36,179,821

Owing to the fact that the year 1927 was not a particularly favourable one from an agri­ cultural point of view, due to various disasters—drought, hail, etc.—which ruined the harvest of a large number of districts in Macedonia, the increase in collections noted for 1927 in comparison with the previous year must primarily be attributed to the facility granted to the refugees of making payments on account of their debts in 6% and 8% bonds, instead of in cash. The average price of the said bonds during the year in question was, for the 6°0 bonds, 500 drachmas and for the 8% bonds, 623 drachmas. This method of paym ent is thus a considerable relief, of the advantages of which the refugees have not failed to avail themselves, by buying bonds on the market.

(b) Payments by Urban Refugees. Payments made during the three months January—March 1928 amounted to 4,245,428 drachmas (in bonds and cash). Payments for the corresponding quarter of the previous year were 1,327,498 drachmas. A comparison between payments made in 1926 and 1927 gives the following results : 1926,

£ 3 5 . 7 5 4 ; 1 9 2 7 - £ 5 9 -4 3 5 . A much larger increase in these receipts might have been expected were it not for the fact that a very large number of houses in all our quarters continue to remain unsold. Thus, in the five quarters of Athens, the Piræus and Eleusis, out of 10,734 houses, only 5,069 (01 47 per cent) have been sold up to the present time. The remainder are unsaleable for the moment, either because the houses are occupied by several families and it would therefore be necessary first of all to transfer the surplus families elsewhere before finding an owner for any particular house, or that the occupants of the houses are too poor to buy them. Amongst this latter class of refugees there are some who await the payment of their indemnities in order to be able to pay. There are also a certain number of recalcitrants, against whom the Commission will be regretfully obliged to take action should they persist in their attitude. With regard to the houses occupied by more than one family, the Commission’s new programme allows for the construction of a certain number of houses, which will permit of the clearance of over-crowded houses, thus rendering them saleable.

D. V a l u a t io n o f T u r k is h a n d B u l g a r ia n H o u s e s .

The technical commissions appointed with the object of making a valuation of the Turkish and Bulgarian houses occupied by refugees are continuing their work. This work was begun in May 1927. Up to April nth, 1928, out of a total number oi 65,113 houses, the commissions had made an estimation of 29,527 houses, the value of which amounts to £988,205, or an average of £33 10s. per house. Each refugee whose house has been valued receives from the Commission a docum ent recognising him as definite owner of the house. It has been proved—and this is one of the most satisfactory results of the work in question—that, as soon as they are in possession oi their titles, the refugees begin to repair their houses, which were generally in very bad condition. This proves once again the economic advantage which is to be found in transferring as rapidly as possible to the refugees the possession of the lands and houses which they occupy.

1 The figures are given in drachmas, payments actually being made in this currency — 7 —

£. I ndemnification of U rban R efugees exchanged from T urkey.

In our Sixteenth Report (Financial Situation, Section F), we gave details of the measures taken by the Government to indemnify the urban refugees, and we indicated that besides the first issue of bonds of 3,000 million drachmas, the Government would be obliged to make an additional issue to pay claims remaining in suspense. A new Convention dated April 14th, 1928, has just been concluded between the Govern­ ment and the National Bank of Greece authorising the latter to issue further 8% bonds for an amount of 3,000 million drachmas. These bonds, as well as those of the first issue, the service of which (interest and amortisation) is guaranteed by the State revenues, will have as cover 1 : (a) The exchangeable Mussulman properties already transferred to the Bank, the value of which was originally estimated at about 4,600,000,000 drachmas ; (b) Certain other Mussulman properties, of an estimated value of 320,000,000 drachmas ; (c) Sums to be paid eventually by refugees as amortisation of capital and interest of the supplementary loan of £3,000,000 ; (d) A portion of the Commission’s properties in Crete, the value of which will be fixed by agreement between the Commission, the Government and the National Bank ; (e) The funds which will be eventually at the disposition of the State from the proceeds of the sale of urban quarters already constructed or to be constructed by it. It should be noted that, in order that paragraph (c) may become effective, the application of Article 16 of the Organic Statutes of the Refugee Settlement Commission is necessary. As to paragraph (d), it should be noted that the agreement in question will in no case result in the cessation of the colonisation work in Crete.

F. A gricultural E stablishment .

In the financial part of this report we gave the division of the sum of 245,000,000 drachmas to be employed for agricultural colonisation between Macedonia, Thrace and Greece, for the financial period of 1928. It is evident that this sum is quite insufficient to meet the immediate needs of the agricultural establishment. As already explained above, the Commission felt it could not grant credits exceeding the amount of its available funds. Nevertheless, this situation would be relieved if, as we hope, the Commission obtains an advance of £1,000,000 from the State on account of the proceeds of the future loan. At the moment, this lack of funds is rendered more serious by the fact that an unexpected disaster has occurred, affecting a considerable portion of our colonisation work in Macedonia.

The Floods in Macedonia. — The winter of this year has been extremely severe throughout the whole of Greece. In February, and even in spring, there were heavy snowfalls, followed by a long period of bitter cold, which were experienced even in the southern provinces. Flood­ ing of rivers occurred as a result of the torrential rains which followed the cold spell, the damage done being particularly serious in Macedonia. The Haliacmon flooded the plain of Gida as far as Lake Yenidjé ; the Axios a portion of the Salonika plain up to Yannitsa. The flooding of the Struma, the most considerable river, destroyed a large area of growing crops in the plains of Serres and Sidirokastro. The majority of the refugees affected will have no harvest, and it is doubtful whether they will be able to do their autumn sowings, their fields having been transformed into marshes. Besides this, large areas of pasture-land have been silted up and a very serious crisis threatens the stock belonging to the refugees. According to the earliest information sent us from Macedonia, we learn that the rising of the rivers Haliacmon, Axios and Struma has caused damage amounting to the sum of 52,000,000 drachmas ; 75,000 stremmas of crops lost and 160 colonies affected in whole or in part. Our services arc now obtaining exact information about the disaster, which will be given in our next report. I he floods which have occurred this year, which were far more serious than in previous years, have brought to their highest pitch the distress and discouragement of both the native and refugee populations of Macedonia. Feeling is high in the districts affected, and the inhabitants are demanding the execution of works for the regulation of the rivers in Macedonia, particularly the Struma. I he Government is at present examining various proposals submitted to it with this object in view, and it is believed that a rapid and satisfactory solution of this important question will soon be found. But even under the most favourable circumstances works of this order cannot be terminated before five years at least, and meanwhile the immediate future of our colonies which are affected by the disasters is a pressing problem. We have already mentioned, in the financial portion of this report, the extraordinary credit voted by the Commission for the benefit of the stricken refugees. Independently of the floods just mentioned, in many of our colonies, notably in those 0i western Macedonia, the live-stock of our colonists have suffered severely through the bad leather and the extreme cold in the past winter. The death rate, the extent of which cannot as yet be determined, was very high.

1 The present price of bonds of the first issue is 777 drachmas. — 8 —

Survey. — In our last report we gave an account of our negotiations with the Minister of Agriculture with regard to the execution of the survey. Formal co-ordination of the topographical services of the Agricultural Department with our departments has not yet been realised ; nevertheless, both the équipes of the Ministry and those of the Commission (the latter having been considerably increased) work in very close co-operation with each other. In spite of the very difficult winter and the floods, which lasted well into the spring the work of surveying has continued as normally as possible, thanks to the devotion and perseverance shown by our équipes. The summer season, now beginning, will permit of an increase in the work. The Commission is also discussing the matter with the National Bank, which, as is known is administering a number of rural properties obtained from the exchange, in order that thé Bank m ay undertake this work in districts where we have properties which are near to or border on each other, upon reimbursement by the Commission for its share of the cost. We hope to be able to furnish detailed information on the work accomplished in this direction in our next report. The Commission considers this work to be of the highest importance, more particularly as the inconveniences resulting from the absence of a survey make themselves increasingly felt, either through the difficulties of allotment oi land, or through differences arising between the refugees and natives, or by various other consequences resulting from the present un­ certainty of boundaries. Income from Fallow Lands and Pastures for Refugee Colonies. — By a decision dating from 1926, the Commission fixed the method and conditions of the application of the income realised by our colonies through the renting of certain lands ceded to them, i.e., fallow lands, forests and common pasturage available over and above those required for their own needs. This income is generally employed for the construction of schools, churches and works of public utility in the villages. This income amounts to : Drachmas For the colonies of Macedonia (including a sum of 5,085,163 drachmas not yet re c e iv e d ) ...... 11,931,255 For the colonies of Thrace ...... 1,014,725 Other provinces of G r e e c e ...... 3,035,093 T o t a l ...... 15,981,073 Out of this total, only 2,500,000 drachmas have been expended up to the present. Agricultural Improvements. — In previous reports we gave an account of the measures taken by our services in Macedonia for the improvement of the crops and the introduction of modern rational methods in the work of the refugees. Our services have created a similar organisation for the colonies in Old Greece. A nursery for fruit-trees has been established at Jannina (Epirus), others at Argos and Artaki (Eubcea); demonstration fields in several colonies in the Volo sector (at Agrinion and elsewhere) for the use of chemical fertilisers, choice of seeds, etc. Efforts are also being made in Acarnania, Euboea and Attica to develop apiculture, and also to develop the production of forage and ameliorate the condition of the grazing industry in other parts of Greece.

G. U r b a n S e t t l e m e n t .

In the financial part of this report we give the division of the credit of 73,500,000 drachmas granted to the Urban Departm ent out of its total budget for the years 1927 and 1928, amount­ ing, as has been seen, to 374,500,000 drachmas. In Livadia, 55 houses are incorporated in the system of urban settlements of Eastern Greece, of which we spoke in our last report. Cardizza, after Volo, is the first town in Thessaly where the Commission will build houses for the urban refugees. Here conditions are dissimilar from those met with in Volo, which is above all a commercial and industrial town, which has been able to absorb thousands of refugee families. Like other towns in the Plain of Thessaly, Cardizza is really only an agricultural centre, and, as in all these towns, only a limited number of urban families can settle themselves there, but, as far as those families able to do some sort of agricultural work are concerned, the capacity of absorption of these centres increases consider­ ably. The same may be said of the towns in the Peloponnesus (Patras, Pyrgos, Argos) with regard to the urban refugees capable of working as agricultural labourers in the vineyards. The small towns on the south coast of the Gulf of Corinth (e.g., Velio, Assos, etc.) often contain refugee families equivalent in number to half of the native population, and it is established that all these families are able to earn their living by dividing their time between some occupa­ tion in the town and agricultural work on neighbouring properties. The houses in Chryssoupolis and Pravi (in Eastern Macedonia) are destined for the recep­ tion of urban refugees of category C, which the General Direction of Colonisation in Macedonia intends to send there from Salonika or Cavalla. Colonisation has resulted in an increase in the number of agriculturists inhabiting these small towTns, and, provided a certain limit is not exceeded, it is certain that the urban families to be settled will have their living assured them. The same applies to the town of Ekaterini (Macedonia). Verria belongs to the group of western Macedonian towns where the presence and employ­ ment of water power permits us to regard favourably the future of any urban refugees settled there. Finally, the 78 houses of Alexandropolis (Dedeagatch) will be occupied by th e same number of families employed in the Eastern Railways. Expelled from Turkey during the exchange of population, these employees have been living since their arrival in Greece in railway carriages. * * *

It is to be seen that, in selecting the towns for the construction of urban quarters, we are not guided by any fixed plan. In point of fact, decisions with regard to construction are taken as the lands demanded by us from the State become available for our disposition. The larger part of these lands are handed over to us after they have been expropriated for reasons of public utility, and this process often takes considerable time. The total credit of 374,500,000 drachmas has already been divided by the Council between those towns where the needs of urban refugees have been proved, but the Council did not wish to carry out its decision while it is not in possession of the funds foreseen for this work, preferring to be free to make any modifications of details in its original plan as circumstances might meanwhile demand. The number of urban houses to be built in each town is a delicate problem, which is being very carefully studied by the Commission. The number of families given in category C in the census can only be used here as a basis of operations. At a meeting held on January 24th, 1928, the Council decided that, in order to avoid constructing too many houses in each locality, those refugees destined to occupy each house would be required to sign a declaration undertaking to purchase it in accordance with the regulations of the Refugee Settlement Commission. New Urban Quarters. — Situation as od M ay glh, 1928. I. Continental Greece and the Islands. I. Stylis 40 houses under construction. 2. Lamia 80 houses under construction. O' Volo 200 houses under construction. 4- Larissa 68 houses under construction. 5- Canéa 80 houses under construction. It was decided to raise the number of these houses to n o . 6. Livadia 55 houses. The signing of the contract will take place in two days. 7- Cardizza 45 houses have been awrarded. 8. Patras 300 houses have been awarded. 9. Argos 63 houses have been awarded. 10. Pyrgos 100 houses. Adjudication to be repeated on May 23rd, 1928. Macedonia (the General Direction of Colonisation in Macedonia to be responsible for execution). 11. Chryssoupoli 5 50 houses under construction. 12. Pravi 100 houses under construction. 13. Ekaterini 100 houses under construction. I4 - Verria 150 houses under construction. 15. Fiorina 100 houses. Construction decided upon by the Council. III. Thrace (execution entrusted to the Direction of Colonisation in Thrace). 16. Alexandroupolis 78 houses. The Commission always reserves to itself the right of increasing by 25 or 30 per cent the number of houses granted.

Scheme of Settlement in the Island of Mytilene. — During the month of February, the Chairman of the Commission proceeded to Mytilene with the object of making an enquiry into the very precarious condition of the refugees concentrated there since 1922. He remained there for two weeks, divided between the chief city and the large and small villages of the island. At the beginning of the activities of the Commission, Mitylene had been included in our system of colonisation—as had all the other provinces of Greece with available lands—and the Commission had begun to settle the refugees, who were mainly agriculturists, on the properties °f exchanged Turks. Later, at the request of the Minister of Agriculture, wrho wished to be responsible for Mytilene himself, the Commission, in agreement with this Department, trans­ ferred these properties (principally olive-groves) to the State. These have been ceded, together with other property, to the National Bank of Greece in order to serve as security :or the bonds issued for the indemnification of urban refugees. The value of these olive-groves 15 estimated at 675,000,000 drachmas. Out of a native population of more than 100,000, there are at the present time approxi­ mately 40,000 refugees, of which nearly 16,000 live in the city of Mytilene, the remainder being divided up between the larger villages and the villages of the interior. Some live in houses built by the State, others in the mosques, warehouses and other buildings, wrhichare generally a miserable condition. Some refugees live with the natives, paying a rent. Many of em occupy houses of exchanged Turks. In itself a very difficult problem, the problem of the refugees is still more difficult for the Commission, which nevertheless, as a result of a recent request, is disposed to do its share by the construction of a certain number of houses—perhaps 300—by the establishment of a Market for the benefit of refugees engaged in retail trade of a workshop, etc. — 10 ------

With the object of studying this plan and putting it into effect, the Commission decided to create a special service to be placed under the direction ol' the Chairman ; this service may later on include other islands of the Eastern Ægean, Chios—where it proposes also to operate —and eventually Samos. The Condition of the Refugees in Chios. — As in the case of Mytilene, the neighbouring island of Chios, facing the coast of Asia Minor, Was the first stage for the hordes of Greek emigrants in their exodus from Turkey, of whom it retained a large number. At the present time, there are 13,000 refugees in the chief town and 4,000 in the villages of the interior, or a total num ber of 4,500 families for the island of Chios, a thousand of which are agriculturists As in Mytilene, this figure is out of proportion with the capacity for production and trade of the island. Here also all these people live in the most deplorable conditions, in requisitioned houses, in hovels which were formerly the houses of Turkish emigrants, or in the houses of native Greeks for which they pay rent. Those most fortunately situated are settled in the quarter constructed by the State. The most pressing need of the urban refugees is houses, of which at least 1,000 should be constructed. With regard to the agricultural population, they are for the most part employed in working on the exchangeable properties, in market gardens, orchards, and in the fields, paying rent to the National Bank, which, as in Mytilene, administers these properties. Thus the problem is that of land for the agricultural refugees in Chios and houses for the urban. The Commission, desirous of doing its share towards the solution of the problems in Mytilene and Chios, foresees the possibility of granting a credit of about £100,000 for this object. The Homeless-Stricken Refugees of Corinth and its Neighbourhood. — The series of earthquakes which, from April 22nd, has entirely reduced Corinth and the small towns and villages of the district to ruins, rendering more than 20,000 persons homeless, also deprived the refugees already settled there of shelter. These latter, some of whom wrere agriculturists working as day-labourers in the fields, others urban carrying on different trades, had all settled themselves in the district by their own efforts, some of whom, thanks to their perseve­ rance, had arrived at a certain degree of prosperity. In the town of Corinth there lived 437 refugee families, some in lodgings, others in maison­ nettes of brick, built on land which the State had granted them, others—the only ones who did not suffer from the earthquake shocks—in wooden barracks. Finally, there are 65 families who had succeeded in building maisonnettes for themselves out of their own money on land purchased with their own funds, the fruit of their labour, amassed with difficulty, or (if they were urban) thanks to the indemnity received by them from the State. There were some who had just taken possession of their houses and had occupied them the night before the catastrophe. In several of the villages, large and small, of the district, other refugees had settled them­ selves in various ways similar to those of the Corinth refugees. For instance, in Loutraki there were 35 families, Kiato 133, Xylokastro 53, Velio 70, and a score or so of families in other places affected by the shocks. The majority of all these people, like those mentioned above, are ruined by the disaster and need the assistance of the Commission to retrieve their losses. Before the earthquake took place, the Commission decided to construct 35 houses at Corinth and contemplated the addition of another 25. Of these, 22 were in course of construc­ tion when the earthquake occurred which reduced them to ruins. The Commission considered 60 houses sufficient for a town where the majority of the refugee families rented lodging in the houses of the natives ; but, since to-day nothing remains of the town, all the refugees will have to be assisted, and about 300 houses will have to be built. There remains to be determined the system of anti-earthquake house construction to be adopted. The Commission’s technical service has already prepared a scheme with plans based especially on the works carried out in Italy after the earthquake at Messina, but «re­ considered it more desirable to defer the execution of the plans until the publication of the results of the discussions of a technical Commission appointed by the Ministry of Public Assistance to deal generally with the question of the reconstruction of the destroyed areas. The Commission will probably follow the lines laid down in the decisions taken by the above- mentioned commission when constructing the houses which it intends to build. Some of the members of the Council went immediately to the scene of the disaster in order to confer with the local authorities as to the urgent measures to be taken. It was decided later that provisional shelter for the refugees similar to that provided for the natives would be assured by the Ministry of Public Assistance, and that the Commission, as already mentioned, would undertake their permanent settlement. Council. — Sir John Hope Simpson, who attended the meetings of the Council of the League of Nations in Geneva last March, was obliged to go to London for reasons of health. LTnfortunately these same reasons prevent him from returning to Athens, and it is expected that he will not be able to return before August. Mr. B. H. Hill is taking his place during his absence.

Signed : Charles B. E ddy. Chairman of the Refugee Settlement Commission.