HC Deb 25 April 1932 vol 265 cc16-7
25. Lieut.-Colonel SANDEMAN ALLEN

asked the Secretary of State for Foreign Affairs whether he will ascertain from the League of Nations whether the Inter- national Commission in Greece will arrange that there shall be no default to British holders of the terms of the contract under which the Greek 7 per cent. Refugee Loan was issued under the auspices of the League of Nations?


When the Greek Government 7 per cent. Refugee Loan of 1924 was issued under the auspices of the League of Nations, the International Financial Commission, with the authorisation of the British, French and Italian Governments, undertook to retain from the revenues assigned to it the amounts necessary for the payment of the service of the loan. As stated in the communiqué published by the Greek Legation in the Press on the 16th April, the Greek Government are making certain proposals to the bondholders of the Greek External Debt, including the 7 per cent. Refugee Loan of 1924. Failing any concessions which may be agreed to by the bondholders as the result of these negotiations, the International Financial Commission will continue to retain from the assigned revenues the full amount required for the service of the loan, and to press the Greek Government to carry out their obligation to facilitate the transfer into foreign currencies of the sums required, in order to enable the bondholders to be paid in accordance with the terms of the loan contract. But the Commission are not in a position to ensure the fulfilment of the Greek Government's obligations in this respect, and I regret to state that up to the present the representations made by the Commission to the Greek Government have not been successful.