868.51 War Credits/476
The Minister in Greece (Skinner) to the Secretary of State
[Received June 22.]
Sir: With reference to my telegram No. 38 of June 7, 1927, quoting the substance of a Memorandum from the Ministry of Foreign Affairs on the subject of the Greek debt to the United States, I have now the honor to transmit the following complete text thereof (in translation):
“The Minister of Foreign Affairs, following Mr. Skinner’s observations to him, concerning the renewal of pourparlers on the financial questions between the two governments, hastened to enter into contact with the Minister of Finance, in order to be able, by common agreement, to meet the wishes of the Government of the United States.
“After a careful examination of the question Mr. Michalakopoulos informs Mr. Skinner that the Government of the Republic has at all times declared its willingness to recognize its obligations arising out of the agreement of February 10, 1918, and one of the best proofs of this has been the payment of interest upon the sums advanced by the United States of America.
“If later these payments were interrupted, this was due in large part to the non-realization of the anticipated credits and the depreciation of the national currency which followed as a consequence.
“The Greek Government considers that it is legally entitled to demand the integral application of the agreement of February 10, 1918. Moreover, it would be happy if the Government of the United States advanced propositions to this effect.
“The agreement of 1918, in addition to the obligations foreseen therein on the part of Greece, set out also certain rights in her favor and the Hellenic Government is of the opinion that all of the questions arising out of this agreement form a whole and should be examined simultaneously.
“It is on the above principle that the Greek Government based its negotiations with England. As to England, the Greek Government found itself in a special situation due to an agreement reached between England and the Gounaris Government which, resulting as it did from regular elections, represented the opinion of the Greek people.
“The Government of the Republic, while contesting that there was a valid renunciation of the balance of the credits on the part of the then existing Government could not fail, nevertheless, to take into consideration the situation actually created as a consequence of that agreement.
[Page 8]“Mr. Michalakopoulos wishes to point out that in concluding the recent agreement with England, under the circumstances already described, the Greek Government never had the impression that it was creating a state of affairs which could be considered as affecting American interests.
“On the other hand, he cannot lose from sight the obligations which rest upon the Government of to-day and its responsibility before the Chamber if it renounced a portion of the clauses contained in the agreement concluded with the United States in 1918, from the moment that the non-recognition by the United States of America of the Governments resulting from the elections of November 1, 1920, had rendered all negotiations impossible.
“Mr. Michalakopoulos expresses his appreciation of the desire of the Government of the United States of America to reach a settlement of the question as well as of the assistance to this end which Mr. Skinner has kindly offered, and informs him that the Minister of Greece at Washington, being on the point now of rejoining his post, will receive instructions to renew the pourparlers.
“He expresses also the firm hope that the Government of the United States of America will consider with benevolence and with the spirit of high justice which characterizes it the ensemble of the question as well as the actual difficulties against which Greece is now struggling.
“In terminating, Mr. Michalakopoulos declares to Mr. Skinner that in order to give one more proof of the real desire of the Government to come to a settlement of this matter, it would be ready to propose an arbitration in the improbable case that the negotiations should encounter unsurmountable difficulties.”
Athens, June 3, 1927.”
The foregoing Memorandum assumes the form of an Aide-Memoire, prepared by Mr. Michalakopoulos on the eve of his departure for Geneva, and was given to me by the Prime Minister. It will be observed that the Hellenic Government admits the renunciation of the balance of credits from Great Britain, and does not propose to extend the same consideration to the Government of the United States. On the contrary, the Government of the United States is expected even now to advance the full amount of the credits claimed. As to the French Government, I believe that it has made no advances under the contract, nor does the Hellenic Government propose at this late date even to ask for any.
I have [etc.]