462.00R296/5291: Telegram

The Minister in Bulgaria (Shoemaker) to the Secretary of State

29. With reference to my telegram 28, October 31, noon, Prime Minister states that Greek reply, a telegraphic résumé of which was [Page 199] received November 4th and full text of which is now at large, raises questions of principle which must be avoided if practical settlement is to be reached. According to the Secretary General of the Foreign Office the formula of October 24th accepted the final proposal of Greece relative to modalities of payment for moratorium year but stipulated that a settlement of a practical nature such as is being sought should not be permitted to affect the rights of the contracting parties as they existed at the time the Council of the League submitted the Kafandaris-Molloff dispute to the Hague Court. The Greek reply refuses this condition and insists that Bulgaria withdraw the dispute from the Court and agree to consider as unalterable its future reparations obligations to Greece as they have been determined under the Hague accord. The Secretary General says that competent Bulgarian authorities see no way of meeting Greek conditions and I anticipate that a message in this sense will be sent to Athens within the next few days.