868.51 Public Works/19: Telegram

The Secretary of State to the Ambassador in Great Britain (Houghton)

30. Section 3 of Article 3 of the Contract recently concluded between J. & W. Seligman and Company of New York and the Greek Government for a loan of $54,000,000 provides that the Greek Government shall take the necessary steps to assure the service of the loan by the International Financial Commission at Athens. A formal request to this end has been addressed by the Greek Government to the Commission and has been referred without recommendation by the British, French and Italian delegates on the Commission to their Governments.

[Paraphrase.] It is feared by Seligman and Company that the British may make difficulties over instructions to their delegate on the Commission in the sense which is desired by the Greek Government. The company is apprehensive particularly regarding the influence in this connection of Hambros Bank. [End paraphrase.]

The Department desires you to approach the Foreign Office informally and, without requesting any action or the expedition of any action by the Government to which you are accredited, to ascertain what is the present status of the consideration of the question of complying with the Greek request.

In connection with your inquiry you should point out that the proceeds of the Seligman loan are to be used in financing certain important reclamation work in Macedonia which will facilitate the work of refugee settlement in which the United States has from the outset shown a particular interest. You may refer in this connection to the fact that the debt settlement with Greece which has just been approved by Congress includes a provision for the advance of some $12,000,000 to be used exclusively in the work of refugee settlement.

Repeat foregoing to Paris No. 50, Rome No. 9 and Athens No. 9 and telegraph cost of repetition to be charged Seligman.