868.797/5: Telegram

The Minister in Greece (Skinner) to the Secretary of State

Department’s 2, January 28, 7 p.m. Taxi cabs are not affected by concession. Contract seems to provide for freedom of competition on roads on which no tramway line is laid but renders this provision illusory by stating that during first three years of contract “no authority whatever shall be given to any person other than transport company for new omnibuses or replacement of existing omnibuses” for operation within radius of 20 kilometers of center of city. After three years independent buses may be operated in defined numbers. Article 6 relating to finance speaks of “loan guaranteed by British Treasury” and as no such loans are granted without corresponding guarantees that only British goods shall be bought, the effect of contract is that existing independent vehicles cannot be replaced during three years, can be operated only in insignificant numbers after three years and can be imported only on payment of duty while concessionaires are themselves prohibited from buying other than British cars and may import such cars, parts and operating supplies free of duty. Under these circumstances British concessionary company will certainly drive out all competition if contract is ratified.

Skinner