Report on Greece"s war debt to England and the refugee loan.

173/35 4291 Annexe № 2 The Greek Minister, in connection with a memorandum presented by him on the 12th instant, had been instructed to make the following communication to His Britannic Majesty's Principal Secretary of State for Foreign Affairs. The Greek Council of Ministers having taken knowledge of a communication made on behalf of the British Foreign Secretary to the Greek Minister in London and concerning the War Debt to Great Britain and the contemplated supplementary Refugee Loan, held a special meeting, and as the result of their deliberations they arrived at the decision that the objections put forth by the previous Government and which are considered as having caused the suspension of the negotiations for the settlement of the War Debt, are not binding the New Cabinet. In order that suspended negotiations may be resumed the Greek Government acting on the basis of the afore- said decision of the Council of Ministers have the honour to inform the British Government that in their desire to fulfill the obligations assumed towards Great Britain they are prepared to enter into negotiations for the settle- ment of the Greek War Debt at any time and in any place, that Sir Austen Chamberlain would suggest. The actual proposals of the Greek Government are based on the payment of annuities of £250,000 for the repayment of the War Debt or of a total amount of £15,500,000 for a period of 62 years. As even the Treasury admit the financial difficulties in which Greece is actually involved and recognises that at the present moment the resources of Greece are very slender, the Greek Government will ask for a reduction of the annuities to be paid for the period of the first -1-