As suggested in your telegram of December 19th, Department. authorizes you when informing Minister for Foreign Affairs of formal confirmation by this Government of exchange of notes to include paragraph in following sense: "In instructing me to apprise you of his formal confirmation of this exchange the Secretary of State desires me to express his satisfaction at the conclusion of this arrangement which renders unnecessary at this time the consideration of the suggestion of the Greek Government with respect to a provisional convention, as communicated to my Government in a note of December 9, 1924 by the Hellenic Minister in Washington." 27 HUGHES 611.6831/63: Telegram The Minister in Greece (Laughlin) to the Secretary of State ATHENS, January 20, 1925-1 p. m. [Received 1:55 p. m.] 5. Your 2, January 16, 5 p. m. I confirmed exchange in formal note dated January 19th. LAUGHLIN CONSENT BY THE UNITED STATES TO THE PLEDGE OF FURTHER SECURITIES BY GREECE FOR THE GREEK REFUGEE LOAN OF 1924 2 28 868.51 Refugee Loan, 1924/28 The French Ambassador (Jusserand) to the Secretary of State [Translation] WASHINGTON, January 4, 1924. MR. SECRETARY OF STATE: I have the honor to inform your Excellency that the Hellenic Government has just inquired of the French Government whether it would be disposed, in order to promote the conclusion of the loan for the establishment of Greek refugees mentioned in the Embassy's note of August 9 last to the Department of State,29 to waive the right of veto conferred upon it by the AngloFranco-American Financial Agreement of February 10, 1918,3° relative to the granting of any new pledge for a Hellenic foreign loan. 27 Not printed. 30 28 For previous correspondence regarding American relief activities in behalf of Greek refugees, see Foreign Relations, 1923, vol. I, pp. 318 ff. 29 Ibid., p. 363. 80 Printed in Greek Debt Settlement: Hearings before the House Committee on Ways and Means, 70th Cong., 1st sess., on H. R. 10760 (Washington, Government Printing Office, 1928), p. 51. Considering the object of the Hellenic Government in this instance, the French Government proposes to act favorably on that request if it hears that the American Government for its part is ready not to avail itself of that right inasmuch as the British Government has already manifested its intention to do so with the same reservations. In instructing me to ask your Excellency kindly to let me know your views on this, the President of the Council, Minister of Foreign Affairs, wishes me to draw your attention to the remarks formulated by the Hellenic International Financial Commission, to which, under the Protocol signed October 17th last, at Geneva," with regard to the establishment of Greek refugees, the service of the contemplated loan should be turned over. The above named Commission first expressed a regret that there was not inserted in the protocol of October 17th any clause providing sanctions for failure on the part of the Greek Government to abide by the provisions of the law creating the international control. It further remarked that the guarantees to be delivered by the Hellenic Government were fixed upon the mere declarations of that Government without the Commission being enabled to find whether they would be satisfactory. The members of the Commission believe that they could not accept the trust under consideration except after examination of these guarantees and with the reservation that in the case arising they could call for more. Finally, the French delegate to the Commission points out that it would, in his opinion, be well as was done in preceding negotiations of the same kind to bring about an understanding between the Financial Commission and the Hellenic Minister of Finance before the final conclusion of the loan for the refugees. The President of the Council would wish to know whether the Government of the United States would not hold as the French Government does, that it is advisable to put as a condition on the possible assent of the three powers to the Hellenic Government's request that the last named Government would take into account. the above stated reservations and remarks. I should be thankful to your Excellency if you would kindly put me in a position to report to my Government on this question at the earliest possible date. Be pleased [etc.] JUSSERAND The Minister in Switzerland in telegram no. 8, Jan. 30 (file no. 868.51 Refugee Loan 1924/33), reported that the protocol referred to was apparently that of Sept. 29, to which was appended a declaration signed the same day on behalf of Great Britain, France, and Italy, and published by the League of Nations under date of Oct. 17. See League of Nations Official Journal, October 1923, pp. 1138 ff. (C. 660. M. 263. 1923. п) and Official Journal, November 1923, pp. 1506 fr. (C. 655. 1923). 868.51Refugee Loan, 1924/28 The Secretary of State to the French Ambassador (Jusserand) WASHINGTON, February 26, 1924. EXCELLENCY: I have the honor to acknowledge the receipt of Your Excellency's communication of January 4, 1924 in which you state that the Government of Greece has inquired of the French Government whether it would be disposed, in order to promote the conclusion of a loan and the establishment of the refugees in Greece, to waive the right of veto provided by the so-called Tripartite Financial Agreement of February 10, 1918. You indicate that in view of the particular circumstances of the case the French Government is disposed to act favorably upon such a request if it learns that the American Government is for its part prepared not to avail itself of the right conferred by Article 4, the British Government, you state, having already manifested its intention to assume a similar attitude under the same reservation. The Greek representative in Washington on July 24, 1923 communicated with the Department 32 with regard to the flotation of a loan, under guarantees to be given by Greece, in connection with the financing of further relief work and inquired concerning the granting of assent by the Government of the United States as contemplated in the Financial Agreement of February 1918. In reply the Greek representative was informed that this Government desired to see the exigency for work of relief in the Near East properly met and that the question which he had raised had received and would continue to receive most careful and sympathetic consideration.a3 Under date of September 18th an inquiry was received from the British Government 34 of a somewhat similar nature to that contained in your note under reply. The American Embassy in London on October 12 indicated to the British Foreign Office 35 that the Government of the United States would not be disposed to offer any objection to the pledging of security by Greece in connection with a loan at that time for the purpose of dealing with the refugee situation, provided the governments of Great Britain and France should likewise agree to raise no objection. I may add that the view of this Government in the matter, anxious as it is to facilitate in any proper way the solution of the refugee problem in Greece, has not undergone any change. This Government is, moreover, of the opinion that any foreign loan 3 Foreign Relations, 1923, vol. I, p. 356. 33 See Department's communication of Aug. 7, 1923, ibid., p. 360. "See telegram no. 401, Sept. 19, 1923, from the Ambassador in Great Britain, ibid., p. 375. See telegram no. 278, Oct. 10, 1923, to the Ambassador in Great Britain, ibid., p. 377. which may be floated by Greece under the present circumstances could best be utilized for the purpose of the settlement of the refugees. It would desire therefore to place no impediment in the way of the Greek Government's furnishing security for any credits that may be obtained by Greece for such a purpose. In the concluding paragraphs of the Embassy's communication the Department's attention is directed to the observations of the Greek International Financial Commission with regard to the Protocol of October 17th 36 and the desirability of sanctions in case of the failure of the Greek Government to meet the dispositions of the law setting up an international control. While the Department is not in possession of information on this point sufficient to justify a detailed expression of opinion with regard to the observations of the Commission, it is felt that the control which might be exercised over the expenditure of any advances obtained by Greece for the purposes of refugee relief is a matter which the agencies making the advances to Greece would be most competent to determine. Accept [etc.] 868.48/879 CHARLES E. HUGHES The Greek Chargé (Xanthopoulos) to the Secretary of State WASHINGTON, October 9, 1924. EXCELLENCY: The Greek Legation had the honor to address, on July 24, 1923, a letter to the Department of State " referring to the contemplated Loan, to be granted, under the auspices of the League of Nations, to Greece in order to make possible the completion of the constructive work required in the settlement and rehabilitation of the refugees. In conformity with the financial agreement of February, 1918, the Legation had asked, in this note, for the consent of the United States necessary to Greece to pledge securities for this loan. The State Department, by its letter of August 7, 1923,88 was kind enough to give the assurance that the Government of the United States was desirous to see the exigency as to the work of relief in the Near East properly met, and that the question raised in the Legation's note would receive the most careful and sympathetic consideration. I am now informed by my Government that the Council of the League of Nations will approve certain modifications to the Protocol of Geneva of September 29, 1923, relative to the loan in question. These modifications concern the guarantees to be given by the Greek Government for the loan, and its amount, which is now authorised up to ten million pounds sterling. Of this sum, at least two million pounds must be subscribed by Greek bankers or Greek financial groups. The modifications to Article V. which relates to the guarantees to be given, as understood, are as follows: (a) The proceeds of the monopolies in New Greece, (i. e. the (c) Taxes on tobacco in New Greece. (d) Revenue stamps (droit de timbre) in New Greece. (f) Surplus of the proceeds of revenues already assigned to the The modifications to Article VI. are as follows: The Greek Government retains the right to mortgage any surplus from the revenues or the surplus of revenues assigned to this loan, in excess of the amount necessary for its service. The Greek Government pledges itself not to mortgage other revenues, except those assigned to the refugees loan, without the advice of the International Financial Commission. Moreover, the Greek Government pledges itself to balance its budget as soon as possible. As a consequence of the terms of the Financial Agreement signed at Paris, February, 1918, the consent of the United States, Great Britain and France being necessary to Greece to pledge securities for external loans, and the consent of Great Britain and France having been obtained, I have the honor to ask, in behalf of my Government and in view of the great humanitarian purpose of the loan, the object of which is the rehabilitation of the refugees, that the Government of the United States give the necessary consent to enable my Government to provide the securities required to complete this loan, which, without such consent, will be impossible. Accept [etc.] 868.48/879 CONST. D. XANTHOPOULOS The Secretary of State to the Greek Chargé (Xanthopoulos) WASHINGTON, November 14, 1924. SIR: I have the honor to acknowledge the receipt of your note of October 9, 1924, with regard to the loan which, it is indicated, your Government desires to arrange through the League of Nations, for |