Papers Relating to the Foreign Relations of the United States, 1923, Volume II

868.51 Reiugee Settlement Commission/85: Telegram

The Secretary of State to the Special Mission at Lausanne

[Paraphrase]

Washington, June 30, 1923—1 p.m.

211. Deliver this telegram immediately to Logan.

Dolbeare, acting under the Department’s instructions, attended the meetings of the League Finance Committee June 22, 23, and 24 in a consultative capacity. At these meetings plans were considered for financing possible relief measures in behalf of the refugees in Greece. It is understood that meetings of the committee are to be resumed July 2 in Geneva. The Department wishes you to attend the forthcoming meetings unofficially in view of the technical character of the financial questions which are to come up for discussion.

1. You should consult Paris Embassy and make yourself familiar with the problems involved in respect to the agreement of 1918 for a loan to Greece (reference our telegram 213, May 26²⁷ and documents mentioned therein, copies of which are also available in the files of the Special Mission at Lausanne).

2. Get in touch with Grew at Lausanne to find out just when the commission meets and arrange for a preliminary consultation so as to make yourself familiar with the instructions which Dolbeare received and also the matters which the committee discussed at its earlier meetings.

3. Your attention is invited to the provision in the 1918 loan agreement with Greece that no new security can be given for an external loan without the consent of the American, British, and French Governments until the loan made under the 1918 agreement is repaid. As the American Government wishes to facilitate in any reasonable way any feasible measures for raising money to provide for the refugee situation, if France and Great Britain are disposed to do likewise, it is ready to join with these powers in giving consent, under appropriate conditions, to allow Greece to pledge new security for this purpose.

4. The British and French representatives indicated to Dolbeare at the earlier meetings of the Finance Committee that they desired to end the 1918 loan agreement. The Department believes that this might well be done at the same time that the United States, Great Britain, and France give their consent to the pledging of new security to secure funds for refugee relief. However, it is most important not to have the coincident termination of the 1918 loan agreement discussed in open conference but that you and the British and French representatives should together work out a formula for ending this agreement. Before committing yourself you should submit this formula to the Department for its consideration.

The American Government does not plan to make any further advances under the 1918 agreement in view of all the circumstances. This Government understands that the British Government does not contemplate any further advances, and that France, which has made no loans under the agreement, has no intention of making any.

5. If a loan is contemplated in connection with plans for financing relief work in the future, there would be no objection in the Department’s opinion to raising a part of this loan in the United States if the successful termination of the Lausanne Conference should give a reasonable assurance of peace in the Near East and should American bankers be interested in having a part in such financing. The Department would not object to your cooperating informally with the committee and with any American bankers to whom a share in the relief loan might be offered.

6. If it is proposed to establish a commission to aid in putting into effect the plans for meeting the refugee problem in Greece, the Department would be ready to arrange through some appropriate agency for American representation. Dolbeare has already indicated to the Finance Committee this willingness on our part.

7. It is difficult for the Department with such information as it has to give you more detailed instructions before you have attended the meeting and given us your views!. The fact that the Government of Greece has not as yet been recognized greatly complicates the situation. It is presumed that any action with respect to the release of Greek security, the termination of the 1918 loan agreement, or possible raising of a loan in the United States would be contingent on such recognition and would take effect when such recognition is granted. This is a point upon which it is particularly important that you obtain and telegraph to the Department the view of the Allied representatives. Are they ready to proceed without regard to recognition and if so how would they enter into arrangements seemingly requiring formal approval by a recognized government in Greece.

8. The Department is also sending this telegram to Paris and if for any reason Logan cannot attend the meeting Dolbeare is instructed to attend and to carry out the Department’s instruction.

Hughes

27. Not printed.