868.51/12–2145
Memorandum of Conversation, by Mr. William O. Baxter of the Division of Near Eastern Affairs
| Participants: | Mr. Thorp (A–C) |
| Greek Ambassador | |
| Mr. Baxter (NE) |
The Greek Ambassador called at his request to discuss the very grave economic and financial situation in Greece. He summarized briefly the proposals recently advanced to the British and United States governments by Mr. Tsouderos, Greek Minister of Coordination,53 and stated that a recent talk with Mr. deWilde54 had indicated that the U.S. Government could not give a favorable reply to the Greek request that the Allies make a partial advance payment on the total sum due Greece from reparations or allot to Greece a portion of the gold uncovered in Germany. In view of the almost disastrous inflationary tendency of the drachma, the Greek Ambassador wished to explore personally, and not on instructions from his Government, the possibility that the United States might be willing to make to Greece an outright loan in gold.
Mr. Thorp said that, as he did not pretend to be an authority on financial matters, he was unable to give the Ambassador a positive answer on this question. He considered it extremely unlikely, however, that such a request could be acceded to, as the instrument most capable in making loans available to foreign governments, the Export-Import Bank, would be prohibited by its terms of reference from making gold available to bolster a foreign currency.
The Ambassador left the attached memorandum55 stressing again the urgency of measures to halt economic and financial deterioration in Greece. Mr. Thorp assured the Ambassador of our warm interest in Greek economic recovery and our desire to help in any practicable ways.