868.51War Credits/389c
The Secretary of State to the Chargé in Greece (Goold)
Sir: With reference to your telegram No. 116 of December 15, 1924,43 and other communications regarding the indebtedness of Greece to the United States, you are instructed to present the following note to the appropriate Greek authorities:
“Under instructions from my Government, I have the honor to refer to the agreement dated February 10, 1918, between representatives of the Governments of Greece, Great Britain, France and the United [Page 159] States, providing for the extension of credits to the Government of Greece under certain terms and conditions as therein set forth.44 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.45 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 [Page 160] 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.]
- Foreign Relations, 1924, vol. i, p. 141.↩
- 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.↩