UNIVERSITY OF CALIFORNIA SAN DIEGO State Expansion and Economic Integration: A Transnational History of Oriental Tobacco in Greece and Germany (1880-1941) A dissertation submitted in partial satisfaction of the requirements for the degree Doctor of Philosophy in History by Juan Carmona Zabala Committee in charge: Professor Thomas Gallant, Chair Professor Frank Biess Professor Jeffrey Haydu Professor Deborah Hertz Professor Hasan Kayalı 2018 © Juan Carmona Zabala, 2018 All rights reserved. The Dissertation of Juan Carmona Zabala is approved, and it is acceptable in quality and form for publication on microfilm and electronically: _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ Chair University of California San Diego 2018 iii TABLE OF CONTENTS Signature Page .............................................................................................................. iii Table of Contents ......................................................................................................... iv List of Abbreviations ................................................................................................... v Glossary of Terms ........................................................................................................ vii Note on Transliteration and Translation ...................................................................... x Acknowledgements ...................................................................................................... xi Vita ............................................................................................................................... xiii Abstract of the Dissertation .......................................................................................... xiv I. Introduction ............................................................................................................... 1 II. Historiographical Review ........................................................................................ 18 III. Greek Ottoman Businessmen in Germany and the Creation of a New Market ..... 35 IV. Interwar Étatism and Oriental Tobacco ................................................................. 90 V. Agricultural Production ........................................................................................... 133 VI. Primary Purchasing ................................................................................................ 197 VII. Commercial Processing ........................................................................................ 219 VIII. Export Trade ........................................................................................................ 248 IX. Conclusions ............................................................................................................ 284 Appendix A: Tables ..................................................................................................... 292 Appendix B: Graphs ........ ............................................................................................ 351 Appendix C: Illustrations ............................................................................................. 386 Appendix D: Maps ...................................................................................................... 399 References .................................................................................................................... 404 iv LIST OF ABBREVIATIONS ABG: Agricultural Bank of Greece (Αγροτική Τράπεζα της Ελλάδος) AS Trieste: Archivio di Stato Trieste (Trieste State Archive) ASCSA-Genn.: American School of Classical Studies at Athens, Gennadius Library ATC: American Tobacco Company BArch: Bundesarchiv Berlin-Lichterfelde (Federal Archive Berlin-Lichterfelde) BAT: British American Tobacco BIA: Business Interest Association BoG: Bank of Greece (Τράπεζα της Ελλάδος) DHAFM: Diplomatic and Historical Archive of the Foreign Ministry (Διπλωματικό και Ιστορικό Αρχείο Υπουργείου Εξωτερικών) GAK Drama: General State Archives (Γενικά Αρχεία του Κράτους) Drama GCC: Global Commodity Chain GCIA: German Cigarette Industry Association (Verband der deutschen Zigaretten- Industrie) GLA: Generallandesarchiv (General State Archive) GVC: Global Value Chain HIS: Hamburger Institut für Sozialforschung (Institute for Social Research, Hamburg) HSA Dresden: Hauptstaatsarchiv Dresden (Central State Archive Dresden) IAM: Historical Archives of Macedonia (Ιστορικά Αρχεία Μακεδονίας) IAPIOP: Historical Archives of the Piraeus Group Cultural Foundation (Ιστορικά Αρχεία Πολιτιστικού Ιδρύματος Ομίλου Πειραιώς) KKE: Communist Party of Greece (Κομμουνιστικό Κόμμα της Ελλάδος) LA Berlin: Landesarchiv Berlin (State Archive Berlin) LoC: Library of Congress NBG: National Bank of Greece (Εθνική Τράπεζα της Ελλάδος) NDA: No data available PAAA: Politisches Archiv des Auswärtigen Amts (Political Archive of the German Foreign Service) RSC: Refugee Settlement Commission SA Dresden: Stadtarchiv Dresden (Dresden Municipal Archive) v SSA Leipzig: Sächsisches Staatsarchiv Leipzig (Saxonian State Archive, Leipzig) SEKAP: Συνεταιριστική Εταιρία Καπνού (Cooperativist Tobacco Company) SEKE: Συνεταιριστική Ένωση Καπνοπαραγωγών Ελλάδος (Cooperativist Tobacco Producers’ Union of Greece) TAK: Ταμεία Ασφαλίσεως Καπνεργατών (Tobacco Worker Insurance Funds) TM Kavala: Tobacco Museum of Kavala TMFG: Tobacco Merchant Federation of Greece (Καπνεμπορική Ομοσπονδία της Ελλάδος) TPPE: Tobacco primary processing equipment TRI: Tobacco Research Institute (Καπνολογικό Ινστιτούτο) VAT: Verband zur Abwehr des Tabaktrustes (Association for the Defense against the Tobacco Trust) Zitag: Zigarettentabakeinkaufsgesellschaft vi GLOSSARY OF TERMS A posteriori opportunistic behavior: In economics, this term often refers to behavior that a party engages in, after agreeing on a contract, with the purpose of exploiting points in which the contract might not be sufficiently clear or detailed. Such behavior is often at the expense of another party included in the same contract. Banderole: Method of taxing goods, usually tobacco products and alcoholic beverages. The manufacturer purchases stickers that are placed on the package in order to certify that the commodity has been correctly taxed. Commercial processing: Stage in the industrial transformation of tobacco leaves. It takes place after the leaves have already undergone primary processing (see “Primary processing”). The packages produced at the stage of primary processing are opened and taken apart. The leaves are classified in different categories according to a varying range of criteria, and repackaged in a way that preserves them for a longer period of time. There are multiple methods of commercial processing. Value chain: My use of this term fits into the definition of commodity chain that Hopkins & Wallerstein propose: “a network of labour and production processes whose end result is a finished commodity.”1 I use the term “value chain” instead of “commodity chain” in order to better convey the importance of auxiliary services of different kinds (finance, marketing, research), which do not directly contribute to the material transformation of the commodity. The three components of a value chain are input-output structure, territoriality and governance structure (see “Input-output structure,” “Territoriality” and “Governance structure”). Community: Since 1912, the smallest administrative division possible in rural Greece. Dexēs (pl. Dexēdes): In the commercial processing of tobacco (see “Commercial processing”), the worker in charge of classifying the leaves. The dexēs was usually a man. He received a higher wage than the other members of the group, who would just arrange the leaves of the same category to form a bale. These workers were known as pastaltzēdes. Each dexēs was assisted by one to three pastaltzēdes. 1 Hopkins & Wallerstein, “Commodity Chains in the World-Economy,” 159. vii Drang nach Südosten: From the early twentieth century onwards, this term has referred to the intensification of Germany’s economic, cultural, and diplomatic interactions with southeastern Europe. Foreign direct investment: Strategy for the internationalization of a firm. The firm purchases either productive infrastructure, either stock in firms in a different country. Governance structure: Power relationships between economic actors (firms, workers, regulatory bodies, consumers, etc.), which determine the allocation of resources and profits within the value chain. Input-output structure: Products and services that are combined to produce a commodity, and bring it to its final consumer. Key actor: Within the governance structure (see “Governance structure”), an actor (firms, workers, regulatory bodies, consumers, etc.) that is able to exert considerable power over other actors, i.e. shape other actors’ decision-making. The literature on value chains often uses the term “key firm,” but I use “key actor” in order to include entities other than firms that can also exert power within the governance structure. Monopsony: Market characterized by the presence of one firm that buys either all, or almost all products available. New Lands: Territories that Greece annexed between 1912 and 1920: Epirus, Macedonia, western Thrace. Old Greece: Greece’s