868.75/45
The Minister in Greece (Skinner) to the Secretary of State
[Received November 21.]
Sir: In my No. 1081 of October 7, 1929,39 I supplied certain particulars with regard to the telephone concession in Greece for which the International Telephone and Telegraph Corporation were active bidders. I have been in close touch with the officers of this corporation, one of whom, Mr. Hilyer, Vice President, is leaving Athens today, and everything has been done that could be done with propriety, to secure the concession for the American concern. I regret, however, [Page 121] to be obliged to report that the government has now definitely decided to sign the contract with Siemens and Halske of Berlin. Mr. Venizelos sent his private secretary to see me yesterday, who gave me the following message on this subject:
“Mr. Venizelos would be happy to see Mr. Hilyer in regard to the telephone matter if Mr. Skinner thinks it would serve a useful purpose, but he, himself, is unable to perceive that such a meeting would be of any practical utility, inasmuch as, after carefully examining the history of the telephone concession, he finds that the Greek Government is obliged to admit that under the Pangalos regime the contract had been awarded, this contract subsequently passing to Siemens & Halske by transfer. While the Pangalos regime was a de facto regime only, Mr. Venizelos sees no reason to proceed to a new adjudication, and in consequence he is resolved to give the contract to the German firm after obtaining from that firm such modifications as may be looked upon as essential.”
Mr. Hilyer agrees with me that it is best that his company should withdraw entirely from the field and await the conclusion of the negotiations going on with Siemens & Halske.
The Department will recall that some time last year, Mr. Christomanos, the then Minister of Communications, decided that the old Pangalos contract had no legal standing in Greece. This decision resulted in the appearance in this country of representatives of the International Telephone and Telegraph Corporation as bidders for the concession. More careful study of the facts has compelled Mr. Venizelos to reverse the position of the government as respects the validity of the old contract.
It is always possible, of course, that at the last moment the German firm may be unable to satisfy the Greek Government, and will retire voluntarily, but I think that this is hardly to be expected in present circumstances.
I have [etc.]
- Not printed.↩