868.51 War Credits/773: Telegram

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

193. My telegram No. 190 of August 7, 5 p.m. Following further conversation with the Permanent Under Secretary for Foreign Affairs I am now in receipt of the Greek Government’s reply in the form of another note signed by him as before and dated August 11th.

This note admits the Legation’s argumentation regarding the foreign exchange normally received from the United States, but cites circumstances having to do with the recent course of the war as rendering “particularly critical the state of Greek economy from the point of view of foreign exchange.” After some less important paragraphs of a deprecatory nature it then goes on as follows:

“However that may be, the Greek Government in spite of these very serious difficulties is not suspending the service on the American loan and declares on the contrary that within a short time and at the latest by the end of December 1940 it will meet its obligations. At the same time it renews the assurance that it has no intention of treating this loan in a manner less favorable than the stabilization loan of 1928.” Finally the note concludes with the “hope that the Government of the United States will fully understand the realities involved in this problem and will allow the payment facilities we request.”

The full text with translation4 is being forwarded by air mail.

  1. Not printed.