868.51/1265: Telegram

The Chargé in Great Britain (Atherton) to the Secretary of State

281. Department’s 253, September 30, 1 p.m., was discussed informally today with Foreign Office which stated that it viewed this question as one between the creditors and debtors, and that it was not entering into the negotiations between the representatives of the Council of Foreign Bondholders, the League Loans Committee and the Greek Government other than to pass on to the British representative on the International Financial Commission the final agreement when approved by them, with instructions for him to act accordingly; for this reason Foreign Office did not contemplate any reference to the Greek-American loan, which, in its point of view, was a matter between the United States and Greek Governments. So far Foreign Office has heard from the Greek Minister that the [Page 399] Greek Government was in agreement with proposals contained in September 13 communiqué and that the French bondholders were agreeable. It was now awaiting a formal communication to the same effect from the League Loans Committee and the Council of Foreign Bondholders before communicating with British representative on International Financial Commission.

Press reports Austen Chamberlain is expected Geneva today to support League Loans Committee, League Council vis-à-vis governments in default.