Following my article on the failed coup of November 1924, this week we focus on the socio-economic and foreign policies of the Michalakopoulos administration.

Michalakopoulos became premier on October 7, 1924 and received a vote of confidence with 201 for, 92 against, and 10 abstentions in the Chamber. He sought to amend the constitution by limiting the time of discussion on each article of a new constitution, he favored administrative decentralization, and he sought to have good relations with all nations, especially with Balkan neighbors.

In March 1925, a railway strike in Macedonia spread to Athens with the Labor Confederation calling out an all-union strike action. The railway men, tramway men, bakers, dockers, stevedores, and printers showed solidarity in supporting the railway workers. Even the civil servants went out on strike. The strikers demanded pay rises, improved pensions, and an eight-hour day. A Committee of Economy was appointed by the government to reduce expenditure as it faced war debts, and to pay for the resettlement of the Asia Minor refugees. This committee had made 1500 surplus railway workers redundant as part of its cost-cutting measures. The strikers were disgruntled with the decision of the committee.

According the Times (London) on March 10, 1925 it was reported that Michalakopoulos would conduct an inquiry with the view of punishing the ringleaders, and that the government would not acquiesce to the strikers’ demands. The government proposed to resume operations of the railway network using refugee railway men who had been previously employed on the Aydin railway in Turkey. Using strike breakers angered the strikers, making Michalakopoulos very unpopular with the working class.

The Trade Union and Civil Servants tried to meet with the premier to discuss their grievances. He responded by saying: “I am sorry, gentlemen, because there is no reason for me to listen to you. Such trade unionism is not tolerated in the State, because it constitutes anarchy.”

He dissolved the Council of Civil Servants and ordered an investigation into the management of the Trade Union because it had issued a statement against the government. The industrial action was mainly communist-inspired and sought to unseat the government. The Times suggested that the Soviet Legation in Athens was the instigator behind all the industrial action.

On the economic front, Michalakopoulos wanted to improve the nation’s infrastructure by offering contracts to foreign companies. The first one was with Ulen Company (United States) which would complete the water supply project for Athens and Piraeus. An Anglo-American group including Greek banks established a foundation company which would prevent flooding and drain marshland in Macedonia. Such reclamation would increase agricultural land and irrigation, helping to expand Greece’s agricultural output. This group would also provide electric power and lighting for Athens and Piraeus. There was also a British company, Power Traction Finance, which competed for the contract for those projects. All the projects were designed to modernize and improve the Greek economy.

Michalakopoulos also took on the portfolio of foreign minister after the resignation of Roussos in March 1925. He never dedicated enough time to this important portfolio as he focused on domestic issues. He did manage to avoid war with Turkey over the question of the Ecumenical Patriarchate in Constantinople, however.

Coming to an agreement with Serbia (Yugoslavia) proved a stumbling block during his premiership. Negotiations started in early January 1925 for a renewal of a treaty signed in 1913. A Greek delegation led by Dimitrios Caclamanos visited Belgrade to discuss the issues of national minorities, a Serbian free zone in Salonika, the privileges of the Serbian monastery at Mt. Athos, and the renewal of the Greek-Serbian Treaty of Alliance of 1913. There was also the issue of special facilities on the Salonika-Ghevgeli rail line for Serbian commerce. A military convention annexed to the treaty was to be discussed by military experts of both countries.

Greece had reduced freight rates on the Salonika-Ghevgeli railway line and was prepared to speed up the service between Salonika and Serbia by constructing a double track on the condition that Greece maintained absolute control. There was breakdown in the negotiations, however, over the issue that Greece would not discuss a minorities protocol which it had recently abrogated with Bulgaria. The Yugoslavs wanted to protect all the Slav minorities in Greek Macedonia, but that would involve complications with Bulgaria. It should be noted that he never worried about Bulgaria since it had its own internal problems with the communists.

Events of June 1925 led to the resignation of his government. On June 3rd, notices were posted in refugee settlements in Athens signed by the Interior Minister, General Kondylis. Police were ordered not to arrest or interfere with refugees on the orders of any person but himself. Prior to this notice, information circulated in the refugee settlements that on a given date the refugees were to take possession of houses constructed by the Refugee Settlement Commission (RSC), and which the Commission proposed to charge a nominal rent. However, this signaled a refugee dash for the uncompleted houses, making it impossible for workmen to finish them. The President of the RSC, Charles P. Howland, discussed this issue with Michalakopoulos, who brought this question before the cabinet. Kondylis resigned as interior minister over the issuance of this notice.

A group of military officers in Athens and Salonika then issued a nine-point statement asking for the resignation of the government. I will list four of these points for illustration purposes: “(1) Dissolution of the Assembly and new elections; (2) Resignation of the Michalakopoulos Cabinet; (3) arrangement of the differences with Serbia; and (4) a quick and complete motioning of the Army.” It was rumored that Michalakopoulos’ resignation was caused by the attitude of the officers as evidenced by their statement. He formed a new cabinet and was urged to take strong measures against the offending officers. Several days before the Pangalos coup of June 26, the government introduced a bill into Parliament providing for the severe punishment of newspaper editors and owners whose newspapers criticized the army or officers – a strange decision to make at a time when he considered punishing the offending officers.

After the Pangalos coup, the new dictator got 185 votes in favor of the government with 14 votes against and 9 abstentions. Michalakopoulos and Kafandaris did not attend the Chamber, making clear their displeasure over the manner of Pangalos’ seizure of power. Michalakopoulos resigned in order to avoid bloodshed.

The eight months of the Michalakopoulos administration was more focused on domestic rather than foreign issues. He tried to improve the public infrastructure of the country and to establish a more democratic society. Unfortunately the threats posed by communism and army officers always undermined the stability of his government, with the latter prompting a coup on June 25, 1925.