868.51 Refugee Loan, 1928/82

Memorandum by Mr. Paul H. Alling of the Division of Near Eastern Affairs

The Greek Minister called today and said that he had received instructions to make a statement to the American Government regarding Greek debts due to the United States. Thereupon he started to read in translation from a telegram. After he had read this over once I asked him if he objected to rereading it in order that I might take his statement down. He readily agreed to this suggestion and dictated the statement which is attached hereto.

I told him that in view of the character of this statement I thought it would be well for him to repeat it to Mr. Bundy. The Minister said that he was quite willing to do this, and I immediately made arrangements for him to see Mr. Bundy, to whom he repeated the statement which he had made to me. Mr. Bundy told the Minister that he would pass the statement along to the Treasury Department and in due course would let the Minister know the Treasury’s views.

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Statement by the Greek Minister (Simopoulos)

Minister of Finance instructed the Minister of Greece to declare that, having always considered the loan of 1928 as a war loan, the Minister of Finance has not included in the already voted budget a provision even for its partial service. Owing to this the Minister of Finance proposes that the International Financial Commission retain 30% of the interest in blocked drachmas and expresses the hope that the American Government would be willing to give such instructions to the International Financial Commission. In case the American Government would not accept to give such instructions to the International Financial Commission the Minister will be compelled to accept the decision of the American Government that the whole amount of the service of this loan be detained in drachmas until a definite solution of the question of the war loans.