868.5151/106: Telegram

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

79. Your 33 and my 78. British and French Legations have not received instructions but on own initiative have made verbal representations seeking modification of decree in favor of their banks which are threatened with heavy loss from loans made in Greece. Bank deposits of their citizens are of secondary importance to them. Italian Minister was instructed to make oral reservation of rights and to act in concert with American, British and French colleagues. Major Italian interest like our own is citizens’ bank deposits. Italian Minister is requesting interview with Venizelos. I recommend you authorize me to do likewise. Today’s press quotes Venizelos on his arrival yesterday as giving his approval to the decree. On December 31, 1931, the National Bank of Greece at New York and the National City Bank New York held $1,140,000 belonging to the Greek Government and $2,272,000 belonging to the Bank of Greece. Present position seems a carefully guarded secret here.

Morris