The Portuguese Minister for Foreign Affairs (Borges) to the American Minister (Dearing)16


Mr. Minister: I have the honor to inform Your Excellency that in compliance with the representations made by Your Government on behalf of American citizens who are holders of bonds of the Tobacco Loans of 1891 and 1896, the Government of the Portuguese Republic engages to redeem these bonds, both as to principal and arrears of interest, in Pounds Sterling so that the treatment accorded to these American citizens will be equivalent to that given to the most favored holders. This redemption will be carried out through the bankers of the Portuguese Government in London, Messrs. Baring Brothers, to whom will be given at the proper time the necessary instructions so that through them or their correspondents or branches abroad the repayment referred to may be carried out.

[Page 894]

The Portuguese Government through its bankers in London will make public by means of an announcement, before the 5th of April of the current year 1926, the fact that all bonds of the Tobacco Loans referred to will be redeemed, both as to principal and to interest to be received and in arrears.

Immediately after the publication of this announcement American holders of these securities may present them to the bankers referred to, who will give them all necessary information and will make the required payment, provided that on the occasion of presentation the holders prove that the securities presented are their property and were acquired in accordance with the laws governing the matter prior to March 17, 1924, in accordance with the terms of Article 5 of the decree of June 3, 1924.

The Portuguese Government requests Your Excellency to be so good as to ask Your Government not to make these engagements public nor to communicate them to American holders until the announcement above mentioned has been made by the bankers referred to, Baring Brothers, so that negotiations now under way with holders of the same securities of other nationalities which have the same end in view shall not be prejudiced, as they certainly would be by a premature revelation of the engagement herein taken with regard to American holders.

I avail myself [etc.]

Vasco Borges
  1. Transmitted to the Department by the Minister in Portugal as an enclosure to his despatch No. 1388, Feb. 22, 1926.