Papers Relating to the Foreign Relations of the United States, 1927, Volume III

868.51 War Credits/447½: Telegram

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

[Paraphrase]

Washington, March 4, 1927—4 p.m.

7. Your telegrams No. 4 of February 1, 6 p.m., and No. 5 of March 2, 4 p.m.

1. You may informally make a statement as follows if in the light of present conditions you consider it advisable:

The American Government would be glad to reach a suitable settlement with respect to the Greek debt and would welcome a proposal from the Greek Government to that end. If the Greek Government will initiate negotiations promptly for the funding of the debt, the American Government will not be disposed to insist upon the complete repayment of the debt within fifteen years from November 11, 1918, as was contemplated by the agreement of February 10, 1918.³ This Government would, on the contrary, be willing to consider an agreement for funding the debt by which the principal would be repaid within a sixty-two year period.

Should the Greek Government make an acceptable offer, this Government would in principle be disposed to offer no objection to the flotation by Greece in the American market of a commercial loan for productive uses, such as the settlement of refugees. Of course, it will be clearly understood that this Government cannot give any assurance that a loan can be procured in the United States, as the terms of such loans are matters for negotiation with the interested bankers.

2. If you wish, you may transmit a paraphrase of the above as an informal memorandum.

3. With respect to the inquiry from the Minister of Foreign Affairs mentioned in your telegram No. 4 of February 1, 6 p.m. you may reply that on February 9 the Debt Commission was terminated and that it made no recommendation as to a basis for settling the Greek debt; that Congress in the short session which ends on March 4 has not interested itself in this matter; and that, while for a definite agreement legislative approval would be necessary, as far as the attitude of this Government is concerned, satisfactory proposals for a settlement might open the market in the United States for a Greek commercial loan.

Grew

3. Printed in Greek Debt Settlement: Hearings before the Committee on Ways and Means, House of Representatives, 70th Cong., 1st sess., on H. R. 10760 (Washington, Government Printing Office, 1928), p. 51.