|Greece becomes part of the British sphere of influence
The connection of Greece with Britain, in the field of strategic alliances, began in 1935 as the result of Italy demonstrating tangible signs of an expansionist policy in the eastern Mediterranean. At the same time these contacts were associated with the attempted restoration of monarchy on the part of pro-royalist circles in the interior of the country. For the British government, King George was the regulating factor in its policy towards the political powers of the country and naturally towards the dictatorial regime, imposed with its consent in August 1936. In the economic field, the British presence was associated with the country's public debt. Greece, overburdened with high economic debts, had to satisfy huge money claims, with the proportion of British bondholders accounting for 67.42% of the total amount.
Lack of reciprocity played a decisive role in the relations of the two countries. The privileged handling of British interests in Greece and the promises of the dictator Ioannis Metaxas for continual and unconditional co-operation in the event of war in the Mediterranean, was in contrast with the lack of conventional commitments on the part of the Empire. Greek officials tended to overestimate British influence, while their British counterparts were overestimating the defensive capacity of Greece. The political leadership of the country (King and dictator) gave in to concessions, thereby weakening the geo-strategic significance of the Greek position, while at the same time undermining its negotiative power in connection with Britain. The irreversible and swift developments following the declaration of the Greek-Italian war organically associated the Greek effort with the international clash and upgraded the strategic position of Greece in the eyes of her allies.