States, providing for the extension of credits to the Government of Greece under certain terms and conditions as therein set forth." Pursuant to the provisions of this agreement, as modified by correspondence between the United States Treasury and the Greek Legation in Washington, the Government of the United States made three advances to the Government of Greece aggregating $15,000,000, and as evidence thereof the Treasury Department holds a demand obligation of the Greek Government dated June 21, 1918, and reading in part as follows: 'As soon as practicable after the close of the war, this obligation will be converted by the Royal Greek Government into definitive obligations in suitable amounts having a date of maturity in accordance with the provisions of a certain agreement dated February 10, 1918, of the Royal Greek Government, approved by the financial delegates of the United States, of Great Britain and of France, but such date of maturity shall not in any event be later than the maximum limit permitted by the laws of the United States.' The provisions of the agreement of February 10, 1918, referred to in the text of this obligation stipulate that the advances made to the Government of Greece under the terms of that agreement shall be repaid by the end of the fifteenth year following the cessation of hostilities. "Up to the present time, the Government of the United States has received no proposal from the Government of Greece looking to the conversion of the above-mentioned obligation into definitive obligations of the Greek Government, or for the settlement in any other manner of this indebtedness, although it is recalled in this connection that on December 15, 1924, M. Roussos, the then Minister of Foreign Affairs, authorized Mr. Laughlin to inform my Government that it might publicly announce the intention of the Greek Government to take up the regulation or funding of its indebtedness to the United States. As stated above, however, no definite proposals to this effect have as yet been submitted by the Government of Greece. In this connection I am authorized to state that my Government would be prepared, after consultation with the other powers which are parties to the 1918 agreement, to examine the question of relieving the Government of Greece from its present obligation to obtain the consent of the United States to the pledging of any new security for external loans, if the Government of Greece should make satisfactory arrangements for the funding of its debt to the United States. I have also been instructed to point out that if the Government of Greece will promptly initiate debt funding negotiations, the World War Foreign Debt Commission would not be disposed to insist that the indebtedness of Greece be repaid in full within fifteen years from November 11, 1918, as contemplated by the agreement of February 10, 1918, but on the contrary would be willing to recommend to Congress a funding agreement such, for example, as that concluded with the Government of Great Britain whereby the principal of the indebtedness would be payable within a period of sixty-two years. "In conclusion I have the honor to state that my Government would be pleased to be informed how soon it may expect to receive proposals "Greek Debt Settlement: Hearings Before the Committee on Ways and Means, 70th Cong., 1st sess., on H. R. 10760 (Washington, Government Printing Office, 1928), p. 51. "Telegram No. 116, Dec. 15, 1924, 10 p. m., from the Minister in Greece, Foreign Relations, 1924, vol. I, p. 141. from the Government of Greece looking to the funding of that Government's indebtedness to the United States, which amounted on May 16, 1925, to $15,000,000 principal sum and $2,625,000 accrued and unpaid interest, a total of $17,625,000, all of which is payable on demand." I am [etc.] 800.51 W 89Greece/10 FRANK B. KELLOGG The Chargé in Greece (Goold) to the Secretary of State No. 406 ATHENS, September 5, 1925. SIR: In confirmation of my telegram of to-day, No. 57, 12 noon," I have the honor to state that this morning I was handed Foreign Office note No. 11193, dated August 30th in reply to my note No. 109 of August 14th which I had been directed to transmit by your instruction No. 237 of July 31st. I have [etc.] [Enclosure-Translation] H. S. GOOLD The Greek Acting Minister for Foreign Affairs (Hadjikyriacos) to the American Chargé (Goold) No. 11193 ATHENS, August 30, 1925. MR. CHARGÉ D'AFFAIRES: In reply to the note of August 14th which you were good enough to address me concerning the credits opened by the American Government in favor of Greece, I have the honor to inform you that Mr. Simopoulos, Minister of Greece at Washington, has been named as the representative of the Hellenic Government to take up this question with the World War Foreign Debt Commission and clothed with the necessary powers to make proposals on the subject. Please accept [etc.] 800.51 W 89Greece/17 A. HADJIKRIACOS Memorandum by the Chief of the Division of Near Eastern Affairs (Dulles) [WASHINGTON,] November 12, 1925. The Greek Minister called to see the Secretary this morning and, finding that he was at the Treasury, came to the Near Eastern Division 40 Not printed. with the request that the Secretary be advised that the Legation had been instructed by the Greek Government to communicate to the Department that Mr. G. Cofinas, former Minister of Finance, and M. Drosopoulos, Director of the Public Debt, of Greece, were shortly coming to the United States to take up the funding of Greek indebtedness to this country. In this connection the Minister referred to the recent conference he had had with the Secretary, when the latter had inquired at what time the Greek Government intended to take up the question of the funding of its debt, in view of the fact that our Legation at Athens had been informed, some weeks ago, of the appointment of a Greek Debt Funding Commission, composed of the Minister himself and Mr. Evlambios. Mr. Simopoulos said that he hoped that the delay in taking up the negotiations which would result from the sending of new negotiators from Greece would not inconvenience this Government. He realized that the Debt Funding Commission was occupied at the present time and had the Rumanian negotiations to take up when the Italian negotiations were finished. In view of this, he trusted the slight delay in dealing with Greece would be welcome rather than otherwise. I told the Minister that I would pass on to the Secretary the information he had communicated. The Minister then asked me (1) whether I would be able to let him know personally whether the procedure contemplated by the Greek Government would be agreeable to this Government and (2) whether formal notification of the designation of Mr. Cofinas should be made. I told the Minister that in my personal opinion any long delay on the part of the Greek Government would be unfortunate and that I hoped that the newly appointed representatives would proceed to this country at an early date. He said that he could assure me that they would. In reply to the Minister's second inquiry, I stated that as we had been officially advised of his own designation and that of Mr. Evlambios as negotiators with the Debt Funding Commission I felt that it would be desirable to have a formal communication from the Greek Legation indicating the change which the Greek Government was suggesting in the personnel of its Mission and, also, as soon as possible, a definite statement as to the time when the Mission would proceed to the United States. In this connection I pointed out to the Minister that Congress would be assembling shortly, that several of the members of the Debt Funding Commission were also members of Congress and that, in addition, the Christmas and New Year holidays were not far distant. If the Mission did not come to this country promptly there might be considerable delay in taking up the matter, which would only react unfavorably to Greece, since, as the Minister appreciated, the Department would not be disposed to view with favor Greek loan flotations until the debt matter was settled. In this connection I referred to the fact that the Greek indebtedness to the United States was relatively small and that the question ought to be a very simple one to deal with. To this the Minister replied that, quite the contrary, the Greek matter was by far the most difficult of all and, while he did not explain and I asked for no explanation-in his allusion to the difficulty he undoubtedly had in mind the claims which Greece might set up under the 1918 Credit Agreement with Greece. I told the Minister that I would communicate with him in case the Debt Funding Commission had any comment to make upon the informal communication which he had made to the Department regarding the new negotiators. A[LLEN] W. D[ULLES] 800.51 W 89Greece/21 The Greek Minister (Simopoulos) to the Secretary of State The Minister of Greece presents his compliments to His Excellency the Secretary of State and referring to his Note Verbale November 16, has the honor to inform him that, a special mission, consisting of Mr. George Cofinas, former Minister of Finance, and Mr. Michel Evlambios one of the Directors of the National Bank of Greece, will arrive to [in] Washington, Monday, December the twenty eighth.48 800.51 W 89Italy/18: Telegram Italy The Ambassador in Italy (Fletcher) to the Secretary of State [Paraphrase] ROME, February 16, 1925-6 p.m. [Received February 16-5: 17 p.m.] 34. Ambassador de Martino, who will sail for the United States on February 18, has informed me that he will be in a position to explain the attitude of the Italian Government on its war debt to the United States; Italy, he says, has no intention of repudiating this debt. The Government hopes, however, that Italy's resources and "Note verbale of the Greek Minister not printed. 48 For summary of the negotiations of the Greek mission, see Combined Annual Reports of the World War Foreign Debt Commission, pp. 76–77. capacity to pay will be taken into consideration. I gather that the Government is not yet decided whether or not to negotiate for debt settlement with us at same time France does, perhaps conjointly with her. I have discouraged this view and have suggested that Italian Government negotiate without the interposition of third parties. It is my belief, however, that they will try to wait in order to see what arrangement we make with France. FLETCHER 800.51 W 89Italy/28: Telegram The Secretary of State to the Ambassador in Italy (Fletcher) [Paraphrase] WASHINGTON, May 8, 1925—4 p.m. 53. In an interview with me yesterday the Italian Ambassador repeated what he had informally stated previously to Mr. Castle,** that his Government did not intend to do anything about the funding of the Italian debt to the United States until the French funding was arranged, and that whatever proposition his Government would make would be based on the French settlement, consideration being given to the fact that capacity of Italy to pay was not so great, even, as that of France. This was true, the Ambassador said, despite fact that Italian budget was in better condition than that of France by reason of imposition of taxes much higher than the taxes levied in France. He added that while he did not wish to notify this Government that Italy would not enter upon negotiations, he suggested that settlement with Italy should depend upon the settlement with France but with a margin of difference in Italy's favor. I told the Ambassador that the United States could not recognize this attitude; that question of settlement of the debts was one solely between the debtor governments and the Government of the United States, and was not dependent upon what was done with any other government; that the United States could not consent to have the Italian Government wait until settlement had been made with France. I again called his attention to the fact that settlement of the debts was solely in hands of the World War Foreign Debt Commission, which had been appointed by Congress, and that the Secretary of State had no authority to make terms but that whatever negotiations there were should take place with the Commission or a representative of the Commission. The Ambassador asked if I had any objection to his talking with the Secretary of the Treasury (the chairman of the Commission) and I said that I had not, that I should be very glad if he would talk with "Chief of the Division of Western European Affairs, Department of State. |