Friday, Feb. 14, 1969

The Greek for Go-Between

When the Republican Party needed an extra $500,000 in a hurry to help pay for President Nixon's Inauguration festivities, it turned to Boston Entrepreneur Thomas Anthony Pappas. He raised the money in nine days of hectic telephoning to other friends of the G.O.P. Then Tom Pappas dropped in on some old acquaintances. He visited Ike and Mamie Eisenhower at Walter Reed Hospital, chatted with Richard Nixon and Henry Cabot Lodge, and with Secretary of State William Rogers went over the names of some candidates for the post of U.S. Ambassador to Greece.

Greek-born Tom Pappas has made a lifetime habit of cultivating the powerful. Now a cherub-faced, grandfatherly figure of 69, he has become a power himself --though not always quite so potent as he likes to let on. He says: "Spiro followed my advice and switched from Rockefeller to Nixon." The largest U.S. firms seek his aid before doing business in Greece, where Pappas counts as the best-connected American citizen around. His close ties with Greece's strongman, George Papadopoulos, and the ruling military junta have made him an unofficial representative of Athens in Washington and in the U.S. business community.

Lunch in the Warehouse. The son of poor immigrants named Papadopoulos, young Tom started out in the grimy Greek-Italian North End of Boston. There he shortened his name, finished high school and expanded his father's grocery into a chain of 30 stores, which he sold in the early 1950s to get capital for investment in many other business ventures. Today he owns a food-importing company and a real estate firm in Boston, in addition to Atlantic Maritime Enterprises Co., which operates ten oil tankers that fly the Greek and Liberian flags.

Pappas has built all this partly on his knack for becoming well known to leaders in politics, business and organized religion--and his ability to use one contact to reinforce another. For years in Boston, many of the city's big men gathered at the daily luncheons of the "Pappas boys," Tom and his brother John, in the dining room of their food warehouse. The brothers became important back-roomers in city and state affairs. John worked the Democratic side and was rewarded with an associate district judgeship; Tom earned some personal lOUs as a fund raiser for the G.O.P., got on the party's national finance committee and was a frequent guest at President Eisenhower's White House stag dinners. There he befriended then Vice President Richard Nixon. He also became influential in the Greek Orthodox Church.

Just the Man. His links to Washington impressed some American industrialists and Greek politicians. Pappas decided that he was just the man to bring the two groups together and attract U.S. capital to his native land. He even compiled a list of Greek politicians and other leaders and for years sent them cards at Christmas and on their saints' days. After a few small business deals in Greece taught him how to cut through Athens' labyrinthine bureaucracy, his biggest coup came in 1962, when Standard Oil (N.J.) went into partnership with him. The Greek government sought bids for an oil refinery, but Pappas and Esso beat out Aristotle Onassis and 14 other competitors by proposing a package deal that called for construction of a huge industrial complex, including a steel mill, near Salonika. Pappas knew that almost every developing country yearns for a steel mill, and that the offer of it would titillate Greek pride. The deal produced a unique group of four companies, including the refinery, named Esso Pappas. The only man in the world who has his name right next to Esso's title--on stationery and at gas stations across Greece--is Tom Pappas. Esso Pappas forms the major part of a $190 million complex that also includes a $15 million petrochemical plant run by Ethyl Corp., a fertilizer plant and a steel mill in which Republic Steel has a 15% share. Altogether, there are seven companies, which last year had $111 million in sales. Pappas is chairman of three of the seven, but probably the most lucrative part of all is his contract to transport oil for the refinery in his own tanker fleet.

Now Pappas is in the midst of launching new Greek projects worth more than $75 million, including vegetable canning and Coca-Cola bottling plants. Last week Pappas and Chicago's Armour and Co. jointly proposed to the government an ambitious cattle-raising venture that would eventually make Greece self-sufficient in meat. He aims to import 75,000 head of cattle and set up plants for processing meat and producing powdered milk, butter and cheese.

For the past six years, Pappas has lived in Greece, visiting the U.S. for holidays and Republican campaigns. His only son Charles, 33, is an investment broker in Boston. In Athens, Tom Pappas plots his moves in an office overlooking Athens' Constitution Square. Athenians commonly believe the many legends about him--that he told his friend "Dick" to pick Agnew, that he is the CIA chief in Greece. As he moves through the streets of Athens, perpetually patting children's heads and squeezing hands, people often stop him to ask favors, like securing the release of political prisoners. Pappas helps when he can, which is often. He still invests much of his time being useful to people. Ultimately, many of them also seem to be useful to him.

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