868.51 War Credits/700

The Secretary of State to the Greek Minister (Sicilianos)

Sir: I have observed the publication in American newspapers of September 26, 1935, of an advertisement in which the Greek Minister of Finance requests holders of dollar bonds of the Greek Government Stabilization and Refugee Loan of 1928 to present to certain American banks (who, it is stated, are effecting payment for the account and on behalf of the Bank of Greece) coupons due August 1, 1935, for payment of 35 percent of their face value.

[Page 510]

In this connection, I have the honor to inquire when a reply may be expected to my note dated April 22, 1935,26 notifying your Government of the amounts due from it under Part II of the Debt Agreement of May 10, 1929 and the Moratorium Agreement of May 24, 1932, and requesting payment thereof.

It will be recalled that Section 2 of Part II provides in part as follows:

“The new loan provided for in this agreement shall rank with and shall share the same securities and all other advantages as the Greek stabilization and refugee loan of 1928 provided for in the international loan agreement executed January 30, 1928, between representatives of Greece and Speyer and Company, the National City Company and the National City Bank of New York, and in the international loan agreement executed January 30, 1928, between representatives of Greece and Hambros Bank Limited and Erlangers, which agreements were concluded in pursuance of and under the authority of the Greek stabilization and refugee loan protocol signed at Geneva on behalf of Greece by the Greek Minister of Finance on September 15, 1927, and approved by the Council of the League of Nations by resolution of the same date and ratified by the decree law of Greece of November 10, 1927, and signed by the President of Greece and ratified by the Greek Parliament and published in the Greek Official Gazette of December 7, 1927.

. . . . . . . . . . . . . .

In the event of there occurring in any year a default in the payment of the service of this new loan by the United States, the ratio in which it is to share the same securities as the Greek stabilization and refugee loan of 1928 provided for in the international loan agreements dated January 30, 1928, shall be the same as that which the amount of the annual service charge due the United States bears to the amount of the annual service charge due the holders of the bonds issued in accordance with the above-mentioned international loan agreements of January 30, 1928.”

Accept [etc.]

For the Secretary of State:
William Phillips
  1. Not printed.