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The International Financial Commission and Anglo-Greek Relations (1928–1933)

Published online by Cambridge University Press:  11 February 2009

George J. Andreopoulos
George J. Andreopoulos
Affiliation:
Yale University
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Extract

The final phase of Venizelism (1928–1933) has traditionally been considered as a period of considerable foreign policy accomplishments (e.g. friendship treaties with Italy, Yugoslavia and Turkey). Yet despite the attention which has been paid to these agreements, the period was clearly marked by the government's drive towards internal infrastructural changes via its commitment to extensive public works programmes. This effort necessitated a huge influx of capital from abroad; in fact, in the period between 1924 and 1931 more money entered the country than at any time since 1875–90. In this context, Britain's influential role was further enhanced as a result of the indispensability of the London credit market, and her financial presence in Greece was to set the tone and pace of Anglo-Greek relations. Probably no institution reflected this uneven relation more accurately than the International Financial Commission (I.F.C).

Type
Articles
Information
The Historical Journal , Volume 31 , Issue 2 , June 1988 , pp. 341 - 364
Copyright
Copyright © Cambridge University Press 1988

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References

1 For a critical evaluation of Greece's foreign policy during this period see Andreopoulos, G., ‘Greece: the state-foreign policy nexus and its role in Anglo-Greek relations (1928–1933)’ (unpublished Ph.D. dissertation, University of Cambridge, 1986), pp. 231–44Google Scholar.

2 Public Record Office (P.R.O.), Foreign Office (F.O.) files, FO 371/15963, R 5970/324.

3 Ibid.

4 Ibid.

5 Memorandum no. 2 to the American ambassador, P.R.O., FO 371/13653; FO 371/15963, R 5970/324 and G. Maris (finance minister) to foreign ministry, 21 Feb. 1929, in Greek foreign ministry archives (hereinafter G.F.M.A.) (1929), A/14, Special file on the service of the productive works loan by the I.F.C.

6 P.R.O., FO 371/15963, R 5970/324.

7 Not all of these loans were successfully raised; thus the figure of £38 million represents the nominal sum total of actually raised plus partially covered loans.

8 L. G. Roussin; P.R.O. FO 371/15963, R 5970/324.

9 Andreopoulos, , ‘The state-foreign policy nexus’, pp. 89–94Google Scholar.

10 Svolopoulos, K., Greek foreign policy after the Lausanne treaty: the turning point, July–December 1928 (Salonica, 1977), p. 83Google Scholar.

11 Charles Hambro to Venizelos' secretary, 25 Oct. 1928; Charles Hambro and J. Erlanger to Venizelos, 26 Oct. 1928, The archive of E. Venizelos (hereinafter AV), file 332.

12 Charles Hambro to Venizelos, 1 Nov. 1928, AV, 332.

13 Greek government gazette, 12 Dec. 1928 and Messager d'Athènes, 12 Dec. 1928.

14 F.O. memorandum, P.R.O., FO 371/13651, R 2020/169 and Svolopoulos, , Greek foreign policy, p. 84Google Scholar.

15 Robert Skinner to Venizelos, 8 Nov. 1928, AV, 332.

16 F. Stephens to Venizelos, 5 Nov. 1928, AV, 332.

17 Skinner to Venizelos, 3 Dec. 1928, AV, 333.

18 G. Maris to Venizelos (no date); quoted in Svolopoulos, , Greek foreign policy, p. 85Google Scholar.

19 O. Niemeyer to O. Sargent (F.O.), 25 Feb. 1929, P.R.O., FO 371/13652, R 1497/331.

20 P.R.O., FO 371/13653. R 7329/331.

21 Roussin to F.O., 5 Aug. 1929, P.R.O., FO 371/13653, R 7329/331.

22 D. Caclamanos to Sir A. Chamberlain, 9 Feb. 1929, P.R.O., FO 371/13652, R 1063/331.

23 P.R.O., FO 371/13651, R 2020/169.

24 Treasury to F.O., 12 Feb. 1929, P.R.O., FO 371/13652, R 1121/331.

25 My translation; finance ministry to foreign ministry (no date) in G.F.M.A. (1929), A/14, Special file.

26 Finance ministry to foreign ministry, ibid.

27 G. Maris to foreign ministry (confidential), 21 Feb. 1929, ibid.

28 L. Roussin to F.O., 5 Aug. 1929, P.R.O., FO 371/13653, R 7329/331.

29 See n. 8, above.

30 Henry Boot to Metaxas, 28 Feb. 1928, P.R.O., FO 371/12930, R 2272/2272.

31 P.R.O., FO 371/12930, R 2272/2272.

32 ‘Greek irrigation contracts’, memorandum by SirMacdonald, M., 30 07 1928Google Scholar; P.R.O., FO 371/12930, R 5914/2272 and Sir P. Loraine to F.O., 14 May 1928, FO 371/12930, R 3669/2272.

33 Sir P. Loraine to F.O., P.R.O., FO 371/12930, R 3670/2272 and Boot to Sir M. Macdonald, 17 May 1928, FO 371/12930, R 3904/2272.

34 Sir P. Loraine to F.O., 14 May 1928, P.R.O., FO 371/12930, R 3669/2272 and W. Stephenson (Boot company) to Harvey (embassy), 26 July 1928, FO 371/12930, R 5914/2272.

35 Loraine to Venizelos, 11 July 1928, AV, 331.

36 Lloyd George to Venizelos, 24 May 1928, AV, 330.

37 ‘During the spring, moreover, the American Minister at Athens has not hesitated to threaten Greece with American displeasure and the possibility of a refusal by Congress to ratify the credits at all, unless American contractors were given a virtual monopoly of the reclamation contracts. So effective was this threat that the Greek Government were forced to accept the higher terms of American contractors in preference to those of a British contractor, Mr. Boot.’ F.O. memorandum, P.R.O., FO 371/13651. R 2020/169; S. Waley (treasury) to O. Sargent (F.O.), 17 May 1928, FO 371/12930, R 3782/2272 and C. Boot to W. Stephenson, 23 Nov. 1928, FO 371/12930, R 9475/2272.

38 The U.S. embassy supported the Prezani-Blair group; see Andreopoulos, , ‘The state-foreign policy nexus’, pp. 93–4Google Scholar.

39 MacKillop to F.O., 14 Aug. 1928, P.R.O., FO 371/12930, R 6231/2272.

40 See n. 35.

41 Record of a conversation of Sir R. Lindsay (F.O.) with Greek chargé d'affaires, 7 Sep. 1928, P.R.O., FO 371/12930, R 6779/2272.

42 Record of a conversation with M. Venizelos, 1 Oct. 1928, P.R.O., FO 371/12923, R 7397/330 and The Times, 5 Oct. 1928.

43 See F.O. memorandum, P.R.O., FO 371/13652, R 1416/331.

44 Annual report on Greece, 1929, P.R.O., FO 371/14391; P. Ramsay to F.O., 18 Dec. 1929, FO 371/13653, R 9747/331; C. Boot to A. Henderson (foreign secretary), 18 Dec. 1929, FO 371/3653, R 9970/331. The Boot contract was ratified by parliament and became law 4500/30; see Government gazette, 28 March 1930.

45 My translation; Simopoulos to foreign minister, 23 April 1929, G.F.M.A. (1929), A/14, Special file.

46 Caclamanos to foreign ministry, 1 March 1929, ibid.

47 Memorandum of L. Wells to U.S. ambassador, 19 March 1929, P.R.O., FO 371/13653.

48 Ibid.

49 At one point Roussin stated that Wells had overlooked a fact which was often overlooked by ‘superficial observers’, Roussin, to , F.O., 5 08 1929Google Scholar, P.R.O., FO 371/13653, R 7329/331.

50 Sir P. Loraine to F.O., 16 Feb. 1929, P.R.O., FO 371/13652, R 1241 and R 1416/331.

51 See comments by O. Sargent in P.R.O., FO 371/13652, R 1416/331.

52 Ministère des affaires étrangères à l'ambassade d'Angleterre, le 30 juin 1929, P.R.O., FO 371/13653, R 4944/331; Ministero degli affari esteri, nota verbale, 8/3/29, FO 371/13653, R 2502/331; and Ministère des affaires étrangères au ministre de Grèce (no date), G.F.M.A. (1929), fo. A/14, Special file.

53 Leith Ross (Treasury) to O. Sargent, 25 March 1929, P.R.O., FO 371/13653, R 2223/ 331.

54 Let us not forget that less than a year had lapsed between the stabilization loan and Hambro's £4 million tranche.

55 See Harvey's and Sargent's comments in P.R.O., FO 371/13652, R 1416/331.

56 See Sargent's summary and comments, ibid.

57 Treasury to F.O., 25 April 1929, P.R.O., FO 371/13653, R 2962/331.

58 Ibid.

59 It is not clear whether it originated from the Greek or the U.S. government. It is beyond, doubt however, that it was wholeheartedly supported by the Americans.

60 C. Howard Smith's comments, 1 May 1929, P.R.O., FO 371/13653, R 2962/331.

61 P.R.O., FO 371/13653, R 2962/331.

62 Discussion between Greek foreign minister Michalacopoulos and British foreign secretary Henderson on 20 September 1929, G.F.M.A., (1929), fo. A/14, Special file, and Greek memorandum (prepared by Caclamanos) to F.O., 9 Oct. 1929, P.R.O., FO 371/13653, R 7715/331.

63 Caclamanos to foreign ministry, 31 March 1931, G.F.M.A. (1931), fo. A/14, File on the productive works loan and Government gazette, 2 April 1929 and 12 July 1930.

64 H. Finlayson's dispatch on a conversation with Venizelos, 10 April 1930, P.R.O., FO 371/14386, R 3107/468.

65 For the Greco-Turkish economic agreement see Anastassiadou, I., ‘Venizelos and the Greco-Turkish treaty of friendship of 1930’, in Dimitracopoulos, O. and Veremis, T. (eds.), Studies on Venizelos and his time (Athens, 1980), pp. 347–9Google Scholar.

66 Finlayson to Leith Ross, 23 Oct. 1930, P.R.O., FO 371/14387, R 8212/468; Harvey to O. Sargent, 26 Aug. 1930, FO 371/14387, R 6911/468.

67 Ibid.

68 Finlayson to Siepmann (Treasury), 23 Aug. 1930, P.R.O., FO 371/14387, R 6911/468. According to Niemeyer, Finlayson could – as a measure of extra precaution – propose that for the first month only the commission could retain two-twelfths of the revenues. Unfortunately, we do not have Niemeyer's own account of the meeting.

69 Finlayson to Roussin, 6 June 1930, P.R.O., FO 371/14387 and Roussin to Finlayson, 16 June 1930), FO 371/14387.

70 Finlayson to Siepmann, 23 Aug. 1930, P.R.O., FO 371/14387, R 6911/468.

71 Finlayson to Leith Ross, 23 Oct. 1930, P.R.O., FO 371/14387, R 8212/468.

72 Ibid. See also n. 70. Article 38 stipulated that if the commission considered that the annual receipts were more than sufficient to meet the maturing obligations, then the commission could submit to the consideration of the powers an amendment of articles 11 and 12 of the 1898 law.

73 Roussin to Leith Ross, 6 Sept. 1930, P.R.O., FO 371/14387, R 7309/468.

74 Leith Ross to Finlayson, 26 Sept. 1930, P.R.O., FO 371/14387, R 7309/468.

75 Ibid.

76 Ibid.

77 Leith Ross to Finlayson, 4 Nov. 1930, P.R.O., FO 371/14387, R 8212/468.

78 Finlayson to Leith Ross, 23 Oct, 1930, P.R.O., FO 371/14387, R 8212/468.

79 Leith Ross to Finlayson, 4 Nov. 1930, P.R.O., FO 371/14387, R 8212/468.

80 Harvey to Sargent, 26 Aug, 1930, P.R.O., FO 371/14387, R 6911/468.

81 Ibid.

82 Government gazette, 21 Sept. 1931; the stabilization parity was £1 = 375 drachmas. The dollar parity that Greece switched into was $1 = 77.05 drachmas.

83 Diomedes to Roussin, 22 Sept, 1931, P.R.O., FO 371/15230, R 7493/18.

84 Ibid.

85 Memorandum prepared by T. Balfour (F.O.), 9 Oct. 1931, P.R.O., FO 371/15230, R 7601/18.

86 Ibid.

87 Maris to Roussin, 26 Sept. 1931, P.R.O., FO 371/15230, R 7549/18.

88 Harvey to Finlayson, 29 Sept. 1931, P.R.O., FO 371/15230, R 7550/18.

89 See n. 85.

90 But even if Finlayson did attempt to influence Diomedes (which we don't know) there was no way to tell whether Diomedes would have complied with his request.

91 Roussin to Maris, 3 Oct. 1931, P.R.O., FO 371/15230.

92 Tsouderos to Roussin, 12 Oct. 1931, P.R.O., FO 371/15230. Diomedes had resigned on 28 September.