868.51 WarCredits/437

The British Ambassador ( Howard ) to the Secretary of State

No. 512

Sir: I have the honour to refer to your note of December 12th last, and to inform you of the receipt of a cable from Secretary Sir Austen Chamberlain drawing attention to the fact that the supplementary contract concluded between the Greek Government and the Foundation Company of New York in connection with the Salonica plain drainage scheme7 provides for an increase in the temporary loan made [Page 374] by the Company from six hundred thousand to two million five hundred thousand dollars, secured on all revenues assigned as security for the long term loan contemplated in the original 1918 agreement. The said contract also grants a specific charge on the surplus pledged revenues administered by the International Financial Commission in the hands of the National Bank of Greece.

In the opinion of His Majesty’s Government, the assignment of such security without the consent of the United States, French and British Governments constitutes a definite breach of the agreement of February 1918. In these circumstances, I am instructed to suggest that a joint protest be made to the Greek Government by the representatives of the above three first named Powers at Athens.

In requesting that you will notify me at your early convenience of the views of the United States Government upon the above suggestion, I beg leave to add that His Majesty’s Ambassador at Paris has been instructed to make a similar proposal to the French Government.

I have [etc.]

Esme Howard
  1. For text of the supplementary contract which was dated Apr. 14, 1926, see Greek Official Gazette, May 25, 1926 (Vol. i, No. 167), p. 1269.