868.00/249: Telegram
The Minister in Greece (Capps) to the Secretary of State
[Received February 5—10:12 a.m.]
13. Ministerial crisis is precipitated by rivalry of party leaders in Cabinet, Gounaris and three others having offered Premier Rhallys their resignations because he opposed Gounaris’ desire to go to London conference. Rhallys submits his resignation to King today. Next stage uncertain as financial situation is daily becoming more acute and attitude of the irreconcilables headed by Gounaris more pronounced. Policy of British seems likely favor early recognition of Constantine in order to be able to exercise greater influence on political and military matters provided that Constantine will frankly acknowledge himself to be King in succession to Alexander. Should be glad to know whether he has sent Washington formal notification of accession as Premier Rhallys favored doing, also what position Department has taken about Greece drawing on balance of loan. Minister of Finance has given out many positive statements on this subject.