868.51 Struma Valley/6

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

No. 478

Sir: I have the honor to refer to the cabled instruction (No. 2) dated January 13 [12], 1928, from the Department, authorizing me to support the efforts of Messrs. Ulen & Company and the Monks [Page 33] Contracting Company to secure jointly the contract for certain important drainage works contemplated by the Hellenic Government. At that time no other American bidders were in view, and apparently none intended to present themselves. It now appears, however, that the Foundation Company of New York, who are engaged in a similar work in the Vardar Valley, expect to submit proposals to the Government, and in these circumstances it seems to me that I should take no position whatever as respects the American bidders, although it may be observed in this connection that the Foundation Company of New York, for the purpose of carrying out their Vardar Valley contract, obtained financial assistance of Hambro’s Bank of London, and may follow the same course should it secure the contracts now pending.

The Government has asked that all proposals for the work under contemplation shall be submitted not later than March 9th, the work itself to be undertaken in the valley of the Strymon river, in the plain of Philippi, and in Thessaly. Intending bidders will be obliged to offer the State a loan of $30,000,000; that is to say, $10,000,000 for the Strymon Valley, $5,000,000 for the Plain of Philippi, and $15,000,000 for Thessaly. The bidders may submit proposals for the three undertakings, or for one or two as they see fit. The agreement eventually concluded will be submitted for ratification to the Chamber.

The operations contemplated must be carried out within four or five years, and the amount of the loan must be advanced in instalments as the work proceeds. The following is a brief description of the operations to be undertaken:

Strymon Valley:

The drainage of 112,000 hectares and the protection of the surface thus recovered against inundation. This should result in an increase in land suitable for agriculture of about 55,000 hectares.

The Plain of Philippi:

The drainage of about 20,000 hectares belonging chiefly to the State, and almost entirely marsh land.

Thessaly:

The drainage of 217,000 hectares which should result in an increase of about 65,000 hectares of land suitable for agriculture.

I have [etc.]

Robert P. Skinner