868.51/12–1847: Telegram
The Acting Secretary of State to the American Mission for Aid to Greece
us urgent
Gama 650. 1. Re Bank of Greece request New York Federal advises it proposes to indicate in reply, subject to action Directors Dec 24, acceptance partial repayment with release equivalent collateral and extension of balance of loan. (Re Amag 6661).
2. Dept is prepared to support renewal $10 million loan with proviso that it can be repaid in part or whole at any time. We shall endeavor to have Federal modify its proposed reply to Bank of Greece accordingly.2
[Page 458]3. Dept regards issue of using any gold which might be released from Federal for conversion into sovereigns for sale on Greek market as separate problem. Dept considers use of Greek current earnings in dollars for purpose acquiring gold for public sale same as use of AMAG funds.
- Dated December 15, p. 454.↩
- In telegram Amag 734, December 27, Governor Griswold informed the Department that AMAG “approved repayment of two million dollars of loan . . . . Paragraph 2 [of Gama 650] interpreted to mean Department approved repayment of part of loan . . . . Economic Policy Committee informed on December 23 that gold released by repayment of part of loan could not be exchanged for sovereigns without the permission of Washington, that use of any foreign exchange to purchase sovereigns would unquestionably have extremely adverse effect on support of Greek aid program.” (868.51/12–2747)↩