868.51/1614: Telegram
The Minister in Greece ( MacVeagh ) to the Secretary of State
[Received November 15—9:40 a.m.]
305. The Minister of Finance called on me last Saturday in connection with the possible extension of dollar credits to Greece. I advised him that such a matter might better be taken up directly with the Department through the Greek Minister at Washington and this I understand is being done. He has also, however, addressed me a [Page 588] 5-page appeal which he requests that I forward together with a favorable report of my own.
Briefly summarized his appeal states: While the British have already extended an initial credit of 5,000,000 pounds it may be used only for purchases within the British Empire or for internal needs through the issue of drachma notes against cover in pounds. Consequently British credits will take care of only a fraction of Greece’s urgent needs since such items as wheat, sugar, wool, iron, tires, sanitary materials, motor vehicles, etc., must be purchased from the United States or from other countries which demand payment in dollars. Since Greece’s supply of dollar exchange is no longer being replenished her reserves will thus be quickly exhausted. American assistance is, therefore, implored in supplying the necessary credits or money or the goods themselves. If that extension of credit for the sale of military goods is impossible under American laws then the supply of non-military items or the granting of open credits available for purchases of the latter either in the United States or, in cases of emergency, in other countries, becomes a question of imperious necessity. The Minister mentions the recent transfer of $100,000 against interest due this month on the American section of the refugee loan as the latest evidence of Greece’s determination to honor her obligations; and, citing the example of the United States’ assistance to Finland, he appeals to American generosity and philhellenism in extending similar financial aid to Greece. He adds that the Greek Minister at Washington will approach the Department with regard to specific needs.
I am aware that the direct extension of credit to Greece is impossible under the terms of the Johnson Act.78 Furthermore, I have suggested to the Minister of Finance as well as the King and the Prime Minister, in previous conversation that they might do well to handle the question of supplies from the United States through the medium of their British ally. However, Greece’s need appears to be as urgent as her cause is just, and I hope that every possibility of the extension of indirect assistance will be explored with generous consideration.
- 48 Stat. 574↩