868.51 War Credits/569: Telegram

The Secretary of State to the Chargé in Greece (Morris)

63. Your despatch 2266, October 19. The Department and the Treasury have read with care Veniselos’ note enclosed with your [Page 419] despatch but they cannot accept his contention that the new loan advanced to Greece in 1929 can be regarded as a war loan. The Agreement of May 10, 1929, was arrived at only after lengthy negotiation and the fact that the treatment specified for the new loan under that agreement differed from that accorded to the war advances is a clear indication that the money would not have been advanced except under the terms and conditions specified. The Department understands, moreover, that Veniselos’ note expressed only his personal views which are not necessarily those of the Greek Government.

Please seek an immediate interview with Mr. Tsaldaris,39 inform him of the above, and invite his attention to the considerations set forth in the Department’s 42, September 28, 6 p.m. At the same time advise him that this Government is greatly concerned at the default in the payment due by Greece on November 10 and at the apparent intention of the Greek Government to discriminate further against the United States with respect to payments falling due during the second half of the present Greek fiscal year. You should state that in view of the Greek default this Government is under the necessity of invoking all the provisions of Article 2, Part II of the Agreement of May 10, 1929, and that it expects the Greek Government in accordance with the terms of its obligations to take immediate steps to see that the United States receives, with respect both to payment and transfer, treatment on the November 10th payment not less favorable in any respect than that which has been or is to be accorded to the holders of the Greek Stabilization and Refugee Loan of 1928.

Please telegraph promptly the results of your representations.

  1. Patagiolis Tsaldaris succeeded Eleutherios Venizelos as Prime Minister of Greece on November 1, 1932.