868.51 War Credits/675

The Minister in Greece (MacVeagh) to the Secretary of State

No. 325

Sir: Replying to the Department’s instruction No. 104 of July 13, 1934, requesting information regarding the payment to the United States on July 6, 1934, of $196,128 by the Government of Greece, I have the honor to report that the Department is correct in assuming that the payment in question represents 27½ percent of the interest due May 10th and November 10th, 1933, and 35 percent of the interest due May 10, 1934, on the so-called “new” or 4% loan of May 10, 1929. The 27½ percent installments, according to the International Financial Commission, amounted to $119,856, and the 35 percent installment to $76,272, making a total of $196,128. The funds necessary for the above payment were released by the International Financial Commission with the consent of the French member, since a unanimous decision is necessary for such action. The payment of the 27½ percent installments was indeed held up for some seven months by the French member, owing to a dispute between the French holders of certain Greek securities and the Hellenic government, but this gentleman finally agreed that the payment should be made before the settlement of the dispute, which is still pending.

Upon releasing the funds above mentioned, the members of the International Financial Commission communicated to their respective governments the reservation of the Hellenic Government to the effect that it still considers the United States loan of May 10, 1929, to be a war loan. The making of this reservation is in conformity with the statement of the Foreign Minister, communicated to the Department in my telegram No. 26 of March 9, 1934, that our loan of 1929 would be honored under the same reservations as last year.

Respectfully yours,

Lincoln MacVeagh