868.51 War Credits/478½

Memorandum by the Chief of the Division of Near Eastern Affairs (Shaw) of a Conversation Between the Secretary of State and the Greek Minister (Simopoulos)

The Greek Minister said that he had been instructed to take up with this Government the question of our making further advances [Page 9] under the 1918 Loan Agreement and to express the hope that we would recognize the justice of the Greek point of view with reference to these advances.

The Secretary at once referred to the recent financial settlement between Greece and Great Britain and gave the Minister to understand that we expected no less favorable terms than those accorded to Great Britain. To this the Minister replied that Great Britain had already advanced, under the 1918 Agreement, more than twice as much as the United States. The correctness of this statement was acknowledged, but it was suggested to the Minister that the principle involved was not affected. The Secretary stated emphatically that the principle upon which, the British-Greek settlement had been effected was a factor which could not be disregarded in any discussions we might now have on the subject of the 1918 Agreement.

The Minister asked whether the Secretary would have any objection to his discussing the matter with Mr. Mills, Acting Secretary of the Treasury. The Secretary replied that he thought it more appropriate that any proposals which the Minister might have should be presented to him. The Minister said that of course he would comply with the Secretary’s desires in this respect. The Secretary declared that we would gladly consider any proposals which the Minister might make other than a proposal involving the granting of additional advances of money. …

G. Howland Shaw