The Secretary of State to the Chargé in Greece (Goold)
Sir: The Department has received the Legation’s despatch No. 629, dated September 13, 1926, with further reference to the attitude of the Greek Government regarding the exemption of American consular officers stationed in Greece from the provisions of the Greek Forced Loan Decree of January 24, 1926.
It has been noted that Mr. Xydakis, the Chief of the Treaty Section of the Greek Foreign Office, has admitted in a conversation with you that the effort of the Greek Government to subject American consular officers in Greece to the operation of the Forced Loan was in contravention of Article 3 of the Consular Convention of November 19, 1902 between the United States and Greece. It has been noted, further, that Mr. Xydakis has stated that the Government of the United States is the only one that has made representations against the application of the Forced Loan to its consular officers in Greece and that it would be highly inconvenient for the Greek Government to exempt them from the Forced Loan. Pursuant to the suggestion of Mr. Xydakis, you inquire whether this Government would not be satisfied with a formal statement by the Greek Government to the effect that the Hellenic Government would not consider the collection from American consular officers in Greece of a contribution to the Forced Loan as a precedent establishing the right of the Greek Government to subject American consular officers in Greece to any future forced loans. Your despatch under reference indicates that Mr. Fernald held cut drachmas in the amount of 6,137.50, but neither this despatch nor your despatch No. 606 of July 22, 1926, contains any information regarding the amounts, if any, of cut drachmas which may have been held by other American consular officers in Greece.
With regard to the suggestion of Mr. Xydakis, mentioned above, you should, inform the appropriate Greek authorities that the Government of the United States cannot agree to any exception to the principle that American consular officers in Greece are entitled to exemption from such forms of taxation as has been imposed through the Forced Loan. You should indicate that the Government of the United States expects the Greek Government to compensate American consular officers in Greece for any losses which they may have sustained as the result of the requirement of the Greek Government that they contribute to the Greek Forced Loan. You should at the same time bring the attitude of the Department expressed in this paragraph to the attention of American consular officers in Greece, with the exception of the Consular Agent at Kalamata, and request them [Page 392] to furnish you with detailed information regarding the amounts which they may have been required to contribute to the Greek Forced Loan. After having ascertained the amounts of these losses you should notify the Greek Government of the amounts.
I am [etc.]