868.48/879
The Greek Chargé (Xanthopoulos) to the Secretary of State
Excellency: The Greek Legation had the honor to address, on July 24, 1923, a letter to the Department of State37 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, 1923,38 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 [Page 286] 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 territories annexed to Greece after the Balkan Wars)—viz: salt, matches, playing cards and cigarette paper.
- (b)
- The proceeds of the Customs at Canée (Candie), Samos, Chio, Mitylène and Syra.
- (c)
- Taxes on tobacco in New Greece.
- (d)
- Revenue stamps (droit de timbre) in New Greece.
- (e)
- Taxes on alcohol (in all Greek territory).
- (f)
- Surplus of the proceeds of revenues already assigned to the International Financial Commission with reservation of charges already existing against same.
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.]