853.51/247: Telegram

The Acting Secretary of State to the Chargé in Portugal ( Carroll )

39. Your 51, October 17, 10 A.M. You are instructed to hand the following note to the Portuguese Foreign Minister immediately:

“My Government has instructed me to express its deep concern at the unwarranted discrimination and financial loss which American holders of Tobacco Monopoly Bonds would suffer as the result of the enforcement of the provisions of Sections 1 and 2 of Article Two of the Decree of June 3, 1924, No. 9761. These sections provide that [Page 883] the payment of maturing coupons is to be made only in Paris except to British subjects domiciled in England, who will be paid at London. The Bonds in question, which were bought by the American holders thereof in reliance upon the good faith of the Portuguese Government and in the belief that payment would be made in accordance with their terms, provide in Section 2 of Article Four for payment in different kinds of money, including pounds sterling, at the option of the holder.

Since the Portuguese Government has shown its good faith in authorizing payment to be made to British holders at London in pounds sterling, my Government is confident that the Portuguese Government does not desire the American holders of these bonds to suffer loss and that the Portuguese Government will accordingly see its way clear to amend the Decree in question so as to permit American holders of these bonds to receive payment pursuant to the provisions of the loan contract and on terms equally favorable to those enjoyed by Bond holders of any other nationality.”

Grew