868.51ForcedLoan,1926/8

The Chargé in Greece ( Goold ) to the Secretary of State

No. 629

Sir: In reply to your instruction No. 345 of August 25th concerning the application of the Forced Loan decree of January 1926 to consular officers of career, I have the honor to state that I took this matter up with Mr. Xydakis, Chief of the Treaty Section of the Foreign Office, and pointed out to him that the protest of the United States was based on Article 3 of the Consular Convention of 1902 and not on Article 2.

Mr. Xydakis admitted that the Forced Loan Decree was in contravention of Article 3 of the Convention and observed that evidently officials had failed to examine treaties with sufficient care before the law was drawn. He stated—as you anticipated—that it would be highly inconvenient and it would greatly complicate matters if an exception were made of United States consular officers of career and added that the United States was the only nation which had protested against the application of the Forced Loan Decree to its consular officers. I pointed out that the complication feared would not be very great for the reason that there were few consular officers of career in Greece and further that the fact that no other nation had protested against the Decree indicated that the various foreign consuls of career had suffered but very little damage. While admitting the aptness of this observation Mr. Xydakis requested me to ascertain from you whether you would not be satisfied with a formal statement by the Greek Government in reply to the Legation’s note No. 75 of July 20th, to the effect that the Hellenic Government would not consider the collection from Mr. Fernald of his portion of the Forced Loan as a precedent establishing the right of the Greek Government to levy a forced loan on an American Consular Officer of career.

I told Mr. Xydakis that I would submit this suggestion to you and duly inform him of your reply. As I pointed out in my despatch No. 606 of July 22, Mr. Fernald held cut drachmas in the amount of 6137.50. He sold the cut portions but I do not know what he got for them.

I have [etc]

H. S. Goold