868.51ForcedLoan,1926/5
The Minister in Greece (
Laughlin
) to the Secretary of State
Athens
,
February 25,
1926
.
[Received March 17.]
No. 521
Sir: Adverting to my despatch numbered 498 of
the 20th [29th] of January, last,17 on the subject of the Forced
Loan that was effected by a decree-law dated the 23rd of January, I have
the honor to attach hereto the copy of the Foreign Office note No. 2991
of the 30th of that month apprising me of the Hellenic Government’s
intention, in carrying out the measure, to exempt from it only those
persons who enjoy diplomatic privileges and only the Government funds in
the coffers of foreign legations and consulates in Greece. The copy of
my reply, No. 11, of February 1st, is also attached.
There could of course be no question of the fact that moneys so held were
beyond the scope of the loan and I have taken the necessary steps to
replace with legal tender currency the clipped or bond portions of the
bank notes amongst the Chancery funds of the Legation on the 23rd of
January and at that time in the official cash-boxes of the Consular
establishments in Athens, Patras and Salonika.
The Hellenic Government has not given evidence of any disposition to
exempt either foreign individuals or organizations, or foreign consuls
de carrière, although an admission of the
inapplicability in principle of such a loan to foreigners is implicitly
made in the last paragraph of the above mentioned note from the Foreign
Office, [Page 382] since it is therein
stated that the non-exemption of foreigners is due only to the
“insurmountable technical difficulties” that would otherwise result. You
will observe that in the second paragraph of my reply I made due mention
of the exact position admitted by the Hellenic Government. I tried to do
so guardedly with the aim of not insisting upon it to such a point as to
provoke a disavowal of the admission. I have received none up to the
present time, and in the absence of any rejoinder on this point of
principle it would seem that your way to maintain it is clear. If this
can be done it seems to me that the chief end is attained, for as far as
I can ascertain there has been but little inconvenience caused to
American citizens by the operation of this fiscal measure, since it does
not affect bank deposits. I have received scarcely any protests; the
only one of any importance being from the banking division of the
American Express Company, and that mainly on behalf of their
Constantinople branch.
The collective action of the various heads of Diplomatic Missions in
Athens in seeking to protect the interests of their respective nationals
was briefly the following:
Three meetings of the Chiefs of Mission were held at the Spanish
Legation, that country’s representative being the Dean of the Corps. At
the meeting of the 31st of January it was decided that the Dean should
send to the Foreign Office a note dated the 1st of February of which the
copy is herewith enclosed.19 Enclosed also is the copy of the reply from the
Foreign Office to the Spanish Minister, numbered 3571, and dated the
17th of February.19 At
this first meeting no agreement was reached as to joint action and a
second one was held on the 13th of February at which a collective note
was drafted, to the despatch of which the British representative would
not consent without the explicit assent of his Government. This was not
given and Sir Milne Cheetham so informed the Dean in a note, the copy of
which is enclosed,19
which he sent to the third meeting at the Spanish Legation held on
February 20th. It was then decided that, in consequence of the position
taken by Great Britain, no joint action could be taken and that each
Government should make its own representations separately.
I had the honor to acquaint you with my own early action to reserve the
rights of American citizens in the despatch to which I have referred
above and to which my note to the Foreign Office, No. 7 of the 25th of
January was attached.20 I now append hereto for
your further information on this subject a note from the Minister for
Foreign Affairs addressed to me on the 17th instant, as well as [Page 383] mine of the 22nd instant in
reply thereto. In the latter I recapitulate the position I have taken in
regard to the loan and inform Mr. Roufos that I have referred the matter
to you for such examination as you may make into the principles involved
and into the several questions that arise from the application of the
decree.
I have [etc.]
[Enclosure 1—Translation21]
The Greek Foreign
Office to the American
Legation
No. 2991
Note Verbale
In the execution of the decree-law of January 23, 1926, by which the
recent 6 percent forced loan has been imposed, the Ministry for
Foreign Affairs has the honor to inform the American Legation that
only the personnel of the diplomatic missions in Greece (those
persons whose names appear in the diplomatic list) are exempted, as
well as the cash boxes of foreign legations and consulates in
respect to the Government funds therein. To this end the legations
are requested to file a statement through this Ministry with the
Treasury Department, confirmed and signed by the Chiefs of Mission,
indicating the amount of bank notes of a denomination exceeding 25
drachmas in the possession of the personnel of the legation on the
day following the promulgation of the above-mentioned decree-law,
that is, on January 24, 1926. The same formality should be followed
with respect to the Government funds which on January 24 were in the
cash boxes of the foreign legations and consulates.
As to the exemption from this loan of all foreign nationals, the
Treasury Department, to its profound regret, would be unable to
grant it in view of the insurmountable technical difficulties which
would arise resulting from the method of application of that loan
which renders all control materially impossible.
Athens
,
January 30,
1926
.
[Enclosure 2]
The American Minister (
Laughlin
) to the Greek Minister for Foreign Affairs
(
Roufos
)
Athens
,
February 1,
1926
.
F. O. No. 11
Your Excellency: I have the honor to
acknowledge the receipt of the note verbale
No. 2991, which your Excellency was good enough to cause to be
addressed to me on the 30th January, ultimo, with reference to the
Hellenic Legislative Decree of the 23rd idem
imposing the currency loan that was made available as from that
date.
[Page 384]
I have taken due note of the sense of the last paragraph of that
communication, which I shall not fail to impart to my Government,
whereby your Excellency apprises me of the Hellenic Government’s
position in respect of the incidence of the loan upon foreigners.
Your Excellency states that the non-exemption of foreigners from the
operation of this forced loan is conditioned upon the technical
difficulties that would arise in the practice of such exemption.
As to the bank notes of a denomination exceeding twenty-five drachmas
that were on the 24th January, last, amongst the Chancery funds of
this Legation and in the official cash-boxes of my Government’s
Consular establishments in Greece, as well as those in the
possession of the personnel of this Mission who enjoy diplomatic
immunities, I shall have the honor to address to your Excellency
another note transmitting the desired declarations together with the
clipped portions of the bank notes for redemption as soon as the
Consul-General in Athens can furnish me with what is required from
his office and those under his control.
In making this communication I reserve for future consideration the
subject of the treatment which should be accorded the Consular
Officers of my Government in Greece; a matter taken up in a note
which the Dean of the Diplomatic Body in Athens had the honor to
address to your Excellency on the 1st of this month.
I take [etc.]
[Enclosure 3—Translation22]
The Greek Minister for Foreign Affairs
(
Roufos
)
to the American Minister (
Laughlin
)
Athens
,
February 17,
1926
.
No. 4976
Mr. Minister: In reply to notes Nos. 723 and 11 which you were
pleased to address to me on January 25 and February 1 of this year
and with reference to note verbale of this
Ministry No. 2991, of January 30, concerning the recent loan of
January 24, 1926, I have the honor to reply as follows:
The loan in question, not affecting either deposits or credits and
intended especially to reach institutions of deposit and not private
deposits, cannot be considered as a forced loan of the kind covered
in the treaties now in force. In reality, a forced loan is not
involved in this case, but only a fiscal or monetary measure,
rigorously limited to the money now in circulation. Consequently, in
view of the nature and method of its operation, no exemption can be
made in favor of foreign nationals.
[Page 385]
As to the question of the exemption of consuls of career, this is
covered in24
note verbale No. 2991.
Accept [etc.]
[Enclosure 4]
The American Minister (
Laughlin
) to the Greek Minister for Foreign Affairs
(
Roufos
)
Athens
,
February 22,
1926
.
F. O. No. 18
Your Excellency: I have the honor to
acknowledge the receipt of the note No. 4976 which you were so good
as to address to me on the 17th of this month on the subject of the
forced loan imposed on the 24th January, last.
I shall not fail to make its contents known to my Government for the
examination the Secretary of State in Washington will make into the
principles involved and the several questions that may arise from
the application of the Decree-law as promulgated.
Pending such examination I have the honor to repeat to your
Excellency the general and comprehensive reservations I have already
made in respect of all rights possessed by my Government, or claimed
by it for citizens of the United States of America, be these
official or unofficial or juridical persons, resident in the
territory of the Hellenic Republic or elsewhere, who might be held
to be affected by legislation of the nature under consideration.
I embrace [etc.]
