Mr. Venizelos, after accepting orally, confirmed his statement to
me in a letter, a full copy of which in translation I enclose
herewith. I have made it clear to him, I think, that we have no
means of dealing in any way with the controversy between himself
and Bulgaria and other Near Eastern countries, and I believe
that he now understands the position.
For the Department’s information, I may add that in my own view
there is no doubt that since Greece is to receive no reparation
payments whatever from Bulgaria, it would be absurd to expect
her to pay Bulgaria under what is called the Kafandaris-Molloff
agreement,
[Page 216]
a debt from
government to government, merely because the Bulgarian
Government afterwards makes use of these funds for the
settlement of private claims.
[Enclosure—Translation]
The Greek Prime Minister (Venizelos)
to the American Minister
(Skinner)
Mr. Minister: I have to confirm to
you in writing that, as I informed you last evening, we
accept the proposal of President Hoover regarding “all
payments of inter-governmental debts, reparations and debts
of assistance, not including governmental obligations held
by private persons”.
I cannot, however, refrain from expressing a complaint; when,
since the month of June, in our reply to the Hoover
proposal, we had accepted, without making conditions, the
remission of German reparations but had formulated certain
reservations for Eastern reparations, the American
Government not only did not advise us that it considered
these reservations inadmissible in principle, but on the
contrary informed us that it would examine them and give us
its opinion on them later, being at that time absorbed in
negotiations with France. In July, when the Conference of
Experts of London was convened at which we made the same
reservations, the American Expert, who was present, did not
declare that he considered them inadmissible, and he allowed
the acceptance by us of the remission of German reparations
as well as the declaration of the experts to the effect that
the difficulty which had arisen between Greece and Bulgaria
should be settled by direct agreement between the two
countries.
Therefore we could consider as beyond doubt that the American
Government was according us the remission of our debt to it
for the Hoover year.
Nevertheless, only a few days ago, we were informed that we
were to pay this debt because the American Government
believes that we have not accepted its proposal on account
of the reservations we have made.
I have no intention whatever of questioning the right which
the American Government had to state in the beginning that
it does not accept our reservations and that it does not
intend to accord us suspension of the payments of our debt
to it.
But I do not believe that it could declare in the beginning
that it would examine our reservations, without giving us
any answer in consequence and informing us at last, only a
few days ago, that it does not intend to remit our debts
during the Hoover year because it considers that we have not
accepted the American proposal.
[Page 217]
In the meantime we had consented to grant the requested
remission not only to Germany, but also to Czechoslovakia,
Hungary and Bulgaria for reparations, and we had only
demanded payment of a debt of Hungary arising from damages
suffered by Hellenic nationals during Greece’s period of
neutrality, and had informed Bulgaria that we were not
paying her, during the same year, our debt under the
Caphandaris-Molloff Convention.
Thus, while owing to the American proposal we are paid none
of the $5,136,954 which we were to receive during the Hoover
year from Germany, Czechoslovakia, Bulgaria, Hungary and
Austria, the American Government has just informed us at the
last minute that it claims payment during the same year of
our debt to it which amounts to $1,110,000.
This simple narration of events suffices to explain the
complaint which I have permitted myself to express to the
American Government.
However, in declaring today the complete acceptance of the
Hoover proposal, I consider it my duty to acquaint you that
Greece, in agreeing to receive nothing during the Hoover
year from Hungary and Bulgaria for reparations, from Hungary
and Austria for damages caused to private persons during the
period of neutrality, has decided not to pay on its side
what it owes Bulgaria under the Caphandaris-Molloff
agreement.
I beg [etc.]
