868.151/32

The Secretary of State to the Greek Minister ( Simopoulos )

Sir: I have the honor to acknowledge the receipt of your note of May 7, 1925 in which you inform me that the Greek Government desires to issue, in connection with its $10,000,000 contract with Ulen and Company for the construction of a waterworks system for the cities of Athens and The Piraeus, a supplementary loan of $1,000,000. You [Page 289] indicate that it is proposed to employ the proceeds of this million dollar loan for the immediate execution of provisional works which will insure a supply of water until the permanent construction is completed. You further indicate that this preliminary loan will be issued with the same securities and under the same conditions which were specified in your note of April 15, 1925 with reference to the loan for $10,000,000. You request the assent of this Government to the pledging by Greece of this security for the supplementary loan of $1,000,000.

In reply I beg to inform you that having offered no objection to the pledging of the securities for the principal loan of $10,000,000, as communicated to you in my note of May 5, 1925, this Government will not be opposed to the pledging of the same securities for the supplementary loan of $1,000,000 in question.

As set forth in previous correspondence, it should also be understood that the present consent of the Government of the United States is given with full reservation of all questions with respect to the Agreement of February 1918.

Accept [etc.]

Frank B. Kellogg