611.6831/140

Tlie Minister in Greece ( MacVeagh ) to the Secretary of State

No. 270

Sir: With further reference to the subject discussed in my despatches No. 260 of May 26, and No. 264 of June 5, 1934,15 I have the honor to report that the Ministry of National Economy is preparing to subject to barter requirements all kinds of rolled or drawn iron in bars or sheets, and sheet iron of classes 62 and 63 of the Greek tariff, as already applied to apples, locks, toiletries, etc. This would mean that in actual practice the goods in question must be imported from countries having clearing arrangements with Greece.

In this connection, the Legation has been informed by the local representative of the United States Steel Products Company that after a long period of inactivity, due to the higher prices of American iron and steel semi-manufactures, he has been able to secure orders within two months for about 600 tons of galvanized and tinned sheets and wire for the United States Steel Products Company, to a total value of about $40,000. Orders for another $20,000 worth of similar products are pending, but the rumor of this projected restriction has been so widely spread that clients hesitate to place new orders, the uncertainty operating, for the time being, as detrimentally as the enforcement of the policy itself could do.

The measure, if finally adopted, will be a further handicap to American business in Greece, and its projection would seem an added reason for coming to some general understanding with the Greek Government as to the position of American trade here, now and in the future, under the policy of barter.

Respectfully yours,

Lincoln MacVeagh
  1. Latter not printed.