868.51 War Credits/685

The Greek Minister (Simopoulos) to the Secretary of State

No. 2738

Excellency: I have the honor to acknowledge the receipt of your note of December 21, 1934, enclosing a statement of amounts due from the Government of Greece, and, in accordance with instructions from my Government, I beg to inform Your Excellency that the reason for which the Government of Greece was not in a position to resume the service of its debts to the United States Government has been exposed in the Aide-Mémoire of this Legation dated July 17, 1933,14 and since that time no new factors intervened to make possible such a payment on the part of the Greek Government.

The incapacity of Greece, from an economic and budgetary point of view, is such that as long as the suspension of the reparations continues, it finds itself reluctantly unable to pay its war debts.

In bringing the above to the knowledge of His Excellency, I wish to reaffirm that the Government of Greece has not the slightest intention to contest its debt, but is compelled to suspend its payment on account of the unprecedented economic and financial difficulties with which it is faced.

Accept [etc.]

C. L. Simopoulos