868.51 War Credits/791
The Chargé in the United Kingdom (Bucknell) to the Secretary of State
[Received June 3, 1944.]
Sir: I have the honor to refer to the Department’s instruction No. 3887 of March 25, 1944, concerning the proposed abolition of the International Financial Commission at Athens, and to state that the views of the State and Treasury Departments expressed therein were transmitted to the Foreign Office, from which a reply dated May 26, 1944, has now been received, pertinent excerpts from which are set forth below:
“We find some difficulty in agreeing to the addition suggested to paragraph 41. The notes we propose to exchange with the Greek Government cannot, of course, constitute a formal abolition of the International Financial Commission. The Commission, being an international body, cannot be properly abolished either by the Greek Government acting alone, or by His Majesty’s Government and the Greek Government acting in agreement. All that the notes are intended to do is to set out the conditions on which His Majesty’s Government will consent to withdraw their representative on the Commission and to raise no objection to its abolition by the Greek Government. We feel, therefore, that it is of some importance that the notes should not be so phrased as to suggest that His Majesty’s Government are purporting to act for anyone except themselves. I am sure you will appreciate that unless we exercise some care on this point, we shall lay ourselves open to justifiable criticism from the other Governments which are represented on the Commission, and in particular the French, for not having associated them with ourselves in the present negotiations.
The real purpose of paragraph 4 I is to enable His Majesty’s Government, to whom the Greek Government’s undertakings are addressed, to see that these undertakings are duly implemented. For the reasons given above, we feel that it might be better if the United States Government were not associated with His Majesty’s Government for this purpose. I do not think that the Treasury Department need feel any concern lest they should not be kept fully informed of all developments. The United States Government in respect of their 1929 loan are in somewhat the same position as the bondholders’ representatives and the bankers in respect of other loans. They will receive a copy of the standing instructions to the Bank of Greece, according to the provisions of paragraph 4 D and 4 E, and they will no doubt be approached by the Greek Government after the abolition of the Commission regarding the amendment of the Agreements of 1929 and 1932.
We should be most grateful if you would transmit these considerations to the United States Government and ascertain whether they would agree not to press for the suggested addition to paragraph 4 I.”
Respectfully yours,