868.51 Struma Valley/23: Telegram
The Chargé in Greece ( Goold ) to the Secretary of State
[Received 7:55 p.m.]
61. Your 45, October 20, 4 p.m., somewhat garbled. On Saturday58 Messrs. Monks and Ulen signed an agreement with the Minister of Communications for the execution of drainage works in the Struma Valley. Yesterday the Minister of Finance countersigned the agreement [Page 38] and at the same time acknowledged the receipt on October 20 of a letter of that date from Messrs. Monks and Ulen to the effect that the execution of the work by them was contingent upon the choice of Messrs. Seligman and Company as their bankers, all in accordance with the call for joint technical-financial bids issued by the Government last February, and the decision of the Council of Ministers last May giving him the work and the financing thereof to the Monks-Ulen-Seligman group. Mr. Monks’ lawyer considers that the Finance Minister’s acknowledgment of this letter before he signed the agreement makes the letter part of the agreement. The letter will be duly registered and made part of the dossier but there is nothing in the aggregate agreement itself providing that Seligman is to supply the money.
On Friday an offer was made by Hambro to finance the project. This offer may be very attractive to the Greek Government as the Hambro group will of course offer conditions hard for competitors to meet in order to preserve Greece as territory for their exclusive operations.
In the event that the Greek Government should award loan contract to any house other than Seligman, Monks-Ulen state that they would be compelled to give up the construction contract just signed unless Seligman released them from their obligation to him entered into because the Greek Government in its advertisement of project provided that bids for the work should combine both a technical and financial offer.
The Thessaly project in which the Foundation Company was interested as well as the Epirus work in which Boots was interested have been postponed by the present Government.
- October 20.↩