868.151/128
The Minister in Greece ( MacVeagh ) to the Secretary of State
[Received October 5.]
Sir: I have the honor to report that Colonel Gausmann, Vice-President and General Manager of the Société des Eaux of Athens, called on me on September 5th and informed me that the Greek Government had demanded the immediate payment of 87 million drachmas, which were being held by the Société for the service of the 1925 water works loan bonds, of which the Chase Bank of New York is trustee. Colonel Gausmann said he understood the attitude of the Department in the matter of the bonds in question but expressed his concern that he, the local manager of the Ulen Company, and agent for the trustee, should do all in his power to protect the bondholders’ interests. He stated that after so long a delay, during which this matter of seizure of pledged moneys has been under consideration and protest, the summons to pay in so brief a time or suffer the consequences seemed to him extreme, in that it would effectually prevent the trustee from taking further advice and instructing its agent as to his procedure. He asked that the Legation intervene to the extent of requesting the Foreign Minister to obtain an extension of time. I replied that the Legation could do nothing, if indeed it did anything in the matter, until he had himself done all in his power on his own behalf. He then said he would talk with the Undersecretary of Finance, Mr. Chelmis, and do his best, without arousing any antagonism which might compromise the Ulen Company’s interests in Greece, to secure for the trustee some further delay.
As a result of Colonel Gausmann’s efforts, a delay was granted, during which the company enjoyed a conversation with M. Loverdos, the Foreign [Finance] Minister, of which I enclose a record30 for the Department’s information, and delectation. The matter is still in active dispute, and any idea of penal action against the Company’s officers seems dropped for the moment. The Legation is keeping in daily contact with the course of the affair.
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Respectfully yours,
- Not printed.↩