Evening star., 1926-01-29
GREECE HAS HOPES
FOR DEBT SOLUTION
Departing Mission Head Says
Negotiations "SimpIy
Postponed"

As the. Jugoslav Debt Commits
sion was preparing for tomorrow s
meeting with the American Debt
Commission over the formers obli-
sation of s66 5000. 900, the head of the
Greek Refunding Commission. G.
Cofinas. today issued statement
just prior to sailing for Athens de-
clarins that negotiations over the
Greek debt had not been broken o., +,
but simply postponed. MIR. Cofnas
expressed the opinion that an even
tual solution would be reached on
ba sis which would Safeguard the in
terestS of both countries
Members OF the JugOslav commits
sion called on Secretary Winston OF
the American commission late yes
terday afternoon, following the meet
ing OF the American commission in
the morning. and were understood to
have been given the reply Of this
Government to their original pro
posal. A joint session Of the two
commissions will be held tomorrow
morning. when II is expected the
views of the two governments may
he brought closer together. Details
OF the first proposal and the Ameri-
can reply have been withheld
Deplores Misinterpretation.
The head of the Greek Commission
in his statement deplored the fact that
his mission had been interpreted as
an attempt on the part of Greece to
raise new LOAF in the United States
whereas he had only been desirous of
regulating definitely all unsettled ques-
tions In connection with the 1918
fina ncial contract"
In the negotiations. 1t was learned
the Greeks had asked the original
credit Of 5000 900 be fulfilled by
loan OF $33 .000. 900 more. to add to the
original loan Of $I5.o00.0 900. At the
Trea sury it was explained the negotia-
tions. pending Mr.. Connas absence,
would be carried forward through the
Greek Minister
Mr.. Cofinas. commenting upon the
news from Greece of new forced
loan, which dispatches from Athens in
dicated would he used to help meet all
obligations of the government. said he
was In full accord with the mea sures
taken by Gen. Pangalos Mr.. Cohnas
was twice minister of finance Of
Greece
Since have been absent from
Athens" said Mr.. Cofinas. the short
age of currency has made the f1na ncial
position OF both the treasury and the
National Bank Of Greece exceedingly
difficult. Taxes are already too heavy
to permit any great increase. Foreign
credits are not available nor even de-
sirable. And the further issue OF any
kind Of paper money without adequate
cover would be disastrous.
Imitation Reduced.
Gen. Pangalos. who has himself
been minister Of finance since Novem
ber last. has handled the matter with
his usual determination. taking the
only available and sure means to rem
edy it-an internal forced loan. He
has avoided the further imitation Of
our currency, and has not only re-
duced 1t % per cent, but has at the
same time further ameliorated the
financial situation by insisting that
the holders Of the treasury notes fall
ing due before March. 1927, shall con-
vert SO per cent Of their value into
new interest bearing notes maturing
in 10 years.
THE combination of these two meas
ures will materially strengthen the
financial situation OF Greece and en-
able the government to face the more
urgent needs Of agriculture and the
refugees. BY CARRYING out his pro
gram of economy Gen. Pangalos will
be able to insure a balanced budget,
without which the country would be
in danger Of falling into serious eco
nomic situation"