Foreign Relations of the United States, 1958–1960, Eastern Europe; Finland; Greece; Turkey, Volume X, Part 2

295. Telegram From the Embassy in Greece to the Department of State⁰

Athens, June 9, 1960, 8 p.m.

3452. Re Embtel 3415.¹

1. It will doubtless occur to the Department, as it has to us, that Greeks have again become sticky about debt matter. Depending on Munro’s response to latest proposals, I think time is approaching when I should tell Averoff that all this Armenian rug dealer haggling is not having favorable effect on bondholders whose good will not without value to Greece in the future, or on those officials in Washington who have been seeking loyally, in Greece’s own best interest, to facilitate solution. Nor does it escape those officials that at same time Greece telling American Government it should have $70,000,000 in grant aid, it is procrastinating and maneuvering over picayune question whether annual charges on debt defaulted over two decades will be $7,000,000 or some figure higher by a few hundred thousand dollars per annum.

Before exploding this or comparable firecracker, it would be helpful to know Munro’s attitude.²

Briggs

0. Source: Department of State, Central Files, 881.10/6–960. Secret; Limit Distribution.
1. Telegram 3415, June 7, summarized Greek positions on the four outstanding issues in its negotiations with the U.S. bondholders. (Ibid., 881.10/6–760)
2. In telegram 3474 to Athens, June 10, the Department of State deferred comment until Munro met with the bondholders. (Ibid., 881.10/6–960) In telegram 3570 to Athens, June 21, the Department of State reported that after talks with the bondholders Munro would offer to reduce the rate of interest on waterworks bonds if the Greek Government would pay $424,000 on arrears of outstanding bonds. (Ibid.)