324. Telegram From the Department of State to the Embassy in Greece0
536. Department has had initial session with FBPC representatives Munro and Heath with little tangible result re most favored debtor clause. Hopes have second more successful session next week. Meantime Munro states British agitating for multi-national approach to Greeks to include Councils UK, France, Germany, Switzerland as well as Ottoman Council. Response request for reaction Department opined Multilateral approach might well spoil favorable disposition towards settlement we believe we have created on part of Caramanlis. It generally understood by all concerned that settlement with US would set pattern for settlements with other Councils.
Request your comment this possible approach which may prove only new element in event Munro continues insist it impossible meet Greeks on most favored debtor issue.1
- Source: Department of State, Central Files, 881.10/12–861. Confidential; Limit Distribution. Drafted and approved by Marcy and cleared by OFD, B, and S/S.↩
- In telegram 733 from Athens, December 12, Briggs commented: “I strongly support Department’s view that interjection non-U.S. bondholders into picture at this juncture could mean protracted renegotiation of agreement already reached in principle with FBPC.” (Ibid., 881.10/12–1261) The Greek bond question was ultimately solved through bilateral discussions between the bondholders representatives and the Greek Government. An agreement embodying the terms of the settlement was signed on October 19, 1962.↩