Papers Relating to the Foreign Relations of the United States, 1923, Volume II

868.51 Refugee Settlement Commission/120: Telegram

The Chargé in France (Whitehouse) to the Secretary of State

Paris, August 10, 1923—noon.
[Received 10:50 p.m.]

343. L–1. Reference Department’s 308.⁴⁹

1. Substance Department’s 287, July 17th, communicated orally to representative League of Nations upon receipt as directed.

2. Greek refugee situation as I see it following: Approximately 500,000 now in Greece requiring refuge. Red Cross upon closing out operations June 30th left reserve stocks sufficient to meet requirements to at least September 1st. Financing of land settlement society about £1,000,000 sterling already underwritten by Greek banks. If successful will take weeks, with result that practical effect in reducing numbers indigent refugees cannot be felt before beginning of 1924. Therefore problem resolves itself into providing for such numbers for four months, September 1st to January 1st, 1924. League of Nations and Greek Government representatives and Colonel Haskell estimate cost of taking care 500,000 refugees at approximately $500,000 per month. Greek Government about July 15th formally notified League of Nations its intention to advance 10,000,000 drachmas per month to care for refugees. At current rates exchange this represents upwards of $250,000 per month, leaving uncovered deficit of approximately same amount which our relief societies practically unaided by any other foreign subscriptions now asked to cover.

3. While at Geneva I pressed for some statement as to extent contributions for pure relief work by European relief organizations outside of Greece but received no answer or commitment. General position being taken that responsibility rested squarely on Greek Government. Robert Cecil tacitly acquiesced this latter position. Therefore somewhat surprised British Embassy’s request our aid without any reference as to what support British themselves propose offering this relief operation.

4. Without information as to extent American relief agencies’ funds available Greek relief. My own judgment bad policy to encourage feeling that America willing to shoulder entire Greek relief operations without adequate share burden being borne by other Europeans. However feel that in view present Greek position there is a practical need for refugee relief to the extent indicated in paragraph second. Greek Government itself should carry at least half the burden as they already propose doing which leaves balance of $250,000 uncovered. Would suggest American relief societies if they so elect, offer a fixed sum of say $50,000 a month for the four months in question with the proviso that when a dollar for dollar subscription had been made by European relief societies outside of Greece up to this monthly amount that American relief societies would advance an additional dollar for dollar up to a total of $125,000 per month. The effect of the adoption of some such formula as this would in my judgment be wise and would have excellent moral effect.

5. Governor Bank of Greece at present London looking into possibility underwriting £2,500,000 sterling for land settlement society scheme. At time visit to me about 10 days ago optimistic securing such amount London. Then proposes approaching American bankers for the purpose of raising similar amount America. Personally not overconfident that he will succeed in London. My judgment loan not attractive and interest rate probably demanded American markets, particularly in view of present position Servian loan bonds with which Greek obligation will be compared, will prohibit any American borrowings.

6. From my information proportion agriculturalists to total number refugees relatively small. Large number refugees small shopkeepers and women and children not adaptable to agricultural work land settlement plan. However land settlement plan exclusively Greek Government concern and feel that if refugees protected until January 1st number indigent will be reduced by filtration back into Asia Minor and by normal absorption Greek economic life to a quota possible to be carried by monthly Greek Government cash grant without outside assistance.

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Whitehouse

49. Not printed.