853.51/312: Telegram

The Minister in Portugal (Dearing) to the Secretary of State


3. My 2, January 12. Portuguese Foreign Office has inquired through Dr. Teixeira, who came personally to Legation this afternoon, if possible to have tobacco bonds held by Americans all placed in one bank in America and one bank in London, stating that the Portuguese Government will immediately pay both the principal and the arrears of interest in sterling as soon as this can be done. This arrangement is what the Portuguese Government desires but I do not understand that payment will not be made if this cannot be done. Dr. Teixeira said that he would send me a note this week quoting text of decree which will open necessary credit and stating that the principal and interest of tobacco bonds held by Americans will be paid in sterling or its equivalent. …