Foreign Relations of the United States: Diplomatic Papers, 1945, The Near East and Africa, Volume VIII

868.51/9–2545

Memorandum of Conversation, by Mr. Leonard linger of the War Areas Economic Division

[Washington,] September 25, 1945.

Participants:	Mr. Kohler, NE
	Mr. Satterthwaite, NE67
	Mr. Lincoln, ED68
	Mr. Kaufman, FEA69
	Mr. Rips, FEA70
	Mr. Unger, LA

In Mr. Kohler’s office, State Building, Wednesday, September 19, 1945.

A résumé was made of conversations held on September 18, the preceding day, between Ambassador Diamantopoulos and Mr. Argyropoulos and officers of FEA and the Department of State⁷¹ which emphasized the urgent need of Greece for financial assistance in view of the abandonment of the proposed twenty-million-dollar, one-hundred-twenty-day nonrenewable FEA loan.⁷² During these conversations FEA proposed that, pending action on the request for a two-hundred-and-fifty-million-dollar loan from the Export-Import Bank, the Greek Government request at once a twenty-five-million-dollar loan.⁷³ Mr. Crowley⁷⁴ had indicated that this could be expected to receive favorable consideration. The Greek representatives regretted, however, that they could not present at once a detailed program for the expenditure of the twenty-five million dollars on the basis of which the Export-Import Bank would have to make its decision.

Mr. Kaufman said that he hoped to learn the State Department’s attitude on the twenty-five-million-dollar loan and the Department’s opinion of the ability of the present representatives of the Greek Government in Washington to negotiate on this matter. Mr. Kohler indicated the Department’s support of the loan. He believed this to be a minimum emergency requirement of the Greek Government for its essential reconstruction program. He added that Messrs. Diamantopoulos and Argyropoulos are unquestionably in good standing at home but it appears that they have not been afforded sufficient information from Athens to negotiate any of the several loan arrangements which have been proposed, as well as on other economic arrangements. It was decided to inform the American Ambassador in Athens of the situation and suggest that he bring to the Greek Government’s attention the need for a concrete and detailed program if any action on its request for a loan is to be expected. Mr. Unger agreed to draft a telegram to this effect.

67. Joseph C. Satterthwaite of the Division of Near Eastern Affairs.
68. Francis F. Lincoln of the Division of Foreign Economic Development.
69. Frank A. Kaufman of the Office of the General Counsel, FEA, Acting Counsel for the Far East and Special Territories Branch of the Bureau of Areas.
70. Serge Rips of the Bureau of Areas, FEA.
71. The memorandum of September 18 prepared by Mr. Kaufman gives no indication that officers of the Department of State were present. This memorandum was found in the records of the FEA.
72. The request for the $20,000,000 loan, to be made through the United States Commercial Company, had been sent to Leo T. Crowley, Foreign Economic Administrator, in letter No. 3348, September 4, 1945, by the Greek Ambassador. “This letter was found in the records of the FEA.
73. From the Export-Import Bank.
74. Mr. Crowley was Chairman of the Board of Trustees of the Export-Import “Bank.