868.51 Refugee Settlement Commission/100: Telegram
The Secretary of State to the Ambassador in France (Herrick)33
Washington, July 17,
1923—5 p.m.
287. For Logan. Your 315, July 6, 9 p.m. [a.m.] Point 8.
- (1)
- A telegram received from the Legation at Athens, under date of June 2534 reported Haskell’s recommendations to the effect that with the American Red Cross stores left over and with the great improvement in exchange and the excellent crop prospects the Greek authorities could meet the refugee situation until about November, that it was time the Greek Government should immediately assume the responsibility heretofore carried by the Red Cross and set up the necessary machinery and that any announcement tending to delay this or to encourage procrastination with hope of foreign [Page 354] assistance would be highly unfortunate. Haskell added that he believed that a few months facing realities by the Greeks unaided would be the best means of determining the net amount, if any, of assistance from outside sources which would be necessary, that any Commission should commence its activities by September, at the earliest, and that considerable harm had already been done by extravagant promises of loans which had kept Greece from attacking its own problems.
- (2)
- Haskell’s report as well as the telegrams from you and Dolbeare lead to the belief that it is desirable to place upon Greek authorities or bankers the responsibility to take the initiative in dealing with the immediate future, in acting on the proposals of the Finance Committee or in suggesting an alternative course of action and indicating what resources they themselves are willing to put into this work (see your Point 7). If the hope of an early peace in the Near East is realized, as now seems likely, the Greeks should be able to devote additional energy and funds to the settlement of the refugees.
- (3)
- The Department has consulted the Red Cross with regard to proposed Nansen Committee mentioned in Point 8 of your telegram. The Red Cross is of the opinion that the formation of this committee at the present time might tend to encourage the Greek authorities in the false hope that others would solve the refugee problem for them and might deter them from the vigorous action which is necessary in order to break up the refugee camps and settle the refugees in Greece to the limit of the country’s capacity.
- (4)
- While Department would not wish to oppose in any way the formation of Nansen Committee if others should deem it desirable, you may orally communicate to the proper authorities that the American Red Cross, for the reasons above indicated, does not desire to be represented on the proposed Commission.
- (5)
- In sending the above the Department has not overlooked the point which was included in the instructions given Dolbeare (see Department’s 182, June 13, 11 p.m. to Lausanne, paragraph numbered 3) and in its telegram to you of June 30, 1 p.m. (paragraph numbered 6) namely that it would be disposed to arrange for American representation on a commission to assist the Greek Government in its refugee relief work. You will recall however such representation was contingent upon the formation of an approved plan of relief and to assist in realizing such a plan. In this connection the Department has emphasized that the American Red Cross which has borne the brunt of the relief work in Greece is not in a position to continue this emergency work and gave notice of its withdrawal more than three months ago, thus giving ample time for substitute measures to [Page 355] be adopted. Further it has consistently been pointed out that the future course of action of American agencies would be greatly influenced by the disposition of other Powers or agencies to make substantial contribution to the work of relief.
- (6)
- With regard to your Point 8 and reference to policy of relief agencies, Department understands that the withdrawal of Red Cross from emergency relief work in Greece is complete and that Near East Relief plans to carry on its orphan program but not adult feeding or relief.
- (7)
- It would appear that the only immediate hope for the raising of funds lay in action by the Greek bankers in connection with the Refugee Settlement Society or the purchase of bonds to be issued by the Greek Government, the proceeds of which loan should be applied for relief. There is a further possibility, but not probability, that a loan might be set up which would interest outside investors. In view of the difficulties which you point out, the placing of a loan with outside investors would seem very unlikely. If the Greek bankers act to provide money in any way, it would seem natural and reasonable that Greek bankers should control expenditure of money. If bankers’ desire to employ an American chairman to administer work for them they should do so on their own initiative. The Red Cross feels that if it should nominate a chairman, it would take great responsibility, and, if funds gave out, such chairman could hardly divorce himself from his position as its nominee, which might place the Red Cross in the position of being blamed for discontinuance of relief.
- (8)
- The Department would be glad to be informed at an early date of any further developments with regard to the organization of the Refugee Settlement Society described in your telegram and as to the action which the Greek bankers may have taken to facilitate the underwriting of any such scheme. Also submit your comments on this telegram. Repeat Lausanne as Department’s 241, Athens as Department’s 41, Constantinople as Department’s 134.
Hughes