868.797/8

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

No. 119

Sir: Adverting to my despatch No. 45 of January 126 and other correspondence concerning the franchise granted by the Greek Government to the Power and Traction Finance Company, Ltd., of London, I have the honor to report that following upon loud public clamor against the ratification of this concession, the British company sent an agent to Athens for the purpose of negotiating modifications calculated to soften public sentiment with reference to the contract. The negotiations have now finished and at a cabinet meeting the other day, General Metaxas announced the amendments that had been agreed upon.

From the point of view of American interests, the principal amendment was that by which the Company waived the privilege of importing free of duty gasoline, tires and accessories to be used in connection with the Company’s buses. I believe it is fair to add that the representations which I made against this privilege were material in securing its elimination. On the other hand, nothing was introduced into the contract to assure the purchase by the Company of autobuses and accessories irrespective of their national origin. And since the British Treasury has guaranteed the bond issue to be emitted in connection with this contract, I take it that the greater portion of the purchases made by the Company will be made in the British market.

Amongst the other modifications introduced into the contract was that providing that the State will acquire the property in 30 years instead of 35. And since the Company will use a current having a force of 220 volts rather than a force of 110, as at present, it agrees [Page 22] to replace at its own expense all wires, fuses, motors and equipment unable to carry the load of 220 volts. Instead of forcing motor cars for hire and taxis now in private ownership to cease their operations within three years from the making of the contract (October 17, 1928) they will now be permitted to circulate until the 31st of December 1930, and there will be no restrictions as to their operation on the streets where there are tramways until January 1929. At no time during the life of the contract will there be restrictions on the operation of private buses between Athens and Kiphissia except that the buses shall not be permitted to accept passengers for way stations served by the trams.

I believe that the Company has at least taken the first step for the creation of a more friendly atmosphere in which to work.

I have [etc.]

Robert P. Skinner
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