Evening star., 1927-12-08
BACKGROUND OF EVENTS
BY PAUL Y. COLLINS.

The financial settlement with
| Greece, recently announced by the
Secretary of the Treasury, by which
we advance to Greece $12,00O,000 on
| account Of a wartime agreement, Is
the final adjustment Of complicated
| transaction growing out of a contract
signed between the United States and
Greece in 1918.
1t should be borne in mind that al
| though the United States had never
actually declared war against either
Bulgaria or Turkey. those countries
| were at the time allied with the ene'
mics of the United States and their
| defeat was essential to final victory
| of the United States and the powers
with which it was associated.
Part of Greece entered the war in
the Fall of 1916 and the whole cOun-
try was engaged by Midsummer of
1917. l.. December of that year a
military convention covering the joint
prosecution Of the war on the Mace.
donian front was drawn up, and in
February, 1918, a financial agreement
was signed, under the terms of which
the United States. England and France
were to provide funds, up to approx
mately $50,O0O,000 each, to facilitate
Greece in carrying out her portion Of
the military agreement. This agree
ment was intended to cover expendi.
lures in Greece, while England and
France, under a separate agreement,
furnished credits for war munitions.
In order to prevent an unfavorable
effect upon the exchange rate between
the powers making the loan and
Greece the currency of Greece was
at that time above par), 1t was ex.
pressly stipulated that no money
should be transferred until six months
after the conclusion of peace. In the
meantime credits were to be estab-
lished, these credits being assigned to
the National Bank Of Greece, the
Greek bank of issue, to cover an is
sue Of paper money OF similar
amount, such paper money to be with
drawn, naturally, when the money
| was transferred, six months after the
conclusion of peace, as stipulated In
the contract.
The United States actually advanc'
ed on this $50 ,00O, 900 pledge only $751;
| 900 900. The first installment of inter-
est was paid promptly by Greece, but
when that country asked for the bal.
ance on the account she was not ac'
commodated. The war was over.
Hence she ceased to pay additional in.
terest, so that today that original pay.
ment of $15,000,000 now reaches $l9.-
| 900, 900, inclusive Of deferred interest.
That leaves approximately $4,000, 900
of the Wilson agreement still due
Greece. but the whole claim has now
been satisfactorily adjusted by the ad-
vance of $12, ,OOO, 900 on the agreed loan.
and Greece exchanges her own obliga'
| tions, funding the entire sum-$19.'
OOO, 900 plus $12,000,00O. All Is to be
| repaid. within Is years.
| Notwithstanding the original agree.
ment to advance loan to the limit or
| $50, ,OOO, 900. with full approval of Con.
gress, the present settlement, making
| a total loan of only about $31 1000. 900.
will require the formal approval OF
| Congress. The knowledge that the
fund Is in aid of humanity in great
need, in time of peace rather than IN
| further destruction In war, Will not
lessen the interest in the act or hu'
manitarian cooperation between one
| of the oldest and one of the newest
nations of civilization.
| The delay of the United States in
concluding peace with Germany de-
layed the date on which the transfer
was to take place until April. 1922.
In the meantime many changes had
occurred, including change OF ad
ministratiOn in the United States and
in Greece an overthrow Of the po
litical party which had conducted the
war. For a long time the United
States was not represented-by Min
lister in Athens. nor did 1t recognize
a Greek Minister in Washington
This was due to a peculiar chain OF
circumstances rather than to any in
tention Of either party.
The elections in Greece. held In
| November, 1920, resulted in the re
call Of King Constantine. whom the
allies did not wish to recognize at the
time. They did not break Off dirlo
matte relations with Greece. but left
| their Ministers in Athens to carry
on regular relations with the Greek
foreign Office. although they did not