868.51 Struma Valley/25: Telegram
The Minister in Greece (Skinner) to the Secretary of State
[Received November 6—9:45 a.m.]
63. Referring to the Department’s No. 45, October 20, 4 p.m., and Legation’s 61, October 22, 5 p.m. Prime Minister informed me yesterday that decision had been reached to divide productive loan between Seligman and Hambro, giving Seligman one-third only. To my observation that this would place Seligman in position of manifest inferiority, he replied by inquiring whether Seligman would accept one-half, and Seligman now considering this tentative compromise. Prime Minister also stated that British offer was from Hambro and Erlanger only. We understand this to mean that National City [Page 39] and Speyer no longer associated with Hambro. If Department can confirm this understanding, it would make it possible for me to support Seligman actively. Prime Minister’s last hour disposition to give at least half the loan to Hambro is due apparently to British pressure and especially receipt of letter stating that advances on loan would violate stabilization loan agreement with League of Nations and his conviction that this objection would be waived should Hambro be given the loan, as Hambro is a director in Bank of England and London effectively controls the financial commission of League of Nations.