868.51 War Credits/708

The Secretary of State to the Greek Minister (Sicilianos)

Sir: I have the honor to acknowledge the receipt of your Note No. 113, dated January 30, 1936, regarding the payment of amounts due under Part II of the Debt Agreement of May 10, 1929.

This Government will be glad to receive the instalments which your Government tenders, without prejudice to the position which has been publicly taken by associations acting on behalf of holders of Greek bonds that it would be well within the capacity of Greece to make larger payments than 35 percent of the interest on its external bonds which fall due in the year beginning April 1, 1935, and without prejudice to the contractual rights of the Government of the United States under Part II of the Debt Agreement of May 10, 1929. This last-mentioned reservation of the rights of the United States is applicable alike in regard to the specific provision made for the event of there occurring in any year a default in the payment of the service of the new loan provided for in the Agreement, and to the general provision that the new loan shall rank with and shall share the same securities and advantages as the Greek Stabilization and Refugee Loan of 1928.

As indicated in my Note of October 22, 1935,13 payment of the amounts tendered by your Government may be made either at the Treasury in Washington or at the Federal Reserve Bank of New York. Pursuant to your request, on receipt of these payments the Treasury will apply $76,272 to the payment of 35 percent of the semiannual interest amounting to $217,920, due May 10, 1935, on the [Page 311]4 percent loan of 1929, and $76,272 to the payment of 35 percent of the semi-annual interest amounting to $217,920 due November 10, 1935, on the same loan.

With regard to the last paragraph of your Note under acknowledgment, I refer to the reservation of the rights of the United States hereinabove.

Accept [etc.]

Cordell Hull
  1. Not printed.