462.00R296/4286: Telegram

The Acting Secretary of State to the Minister in Portugal (Magruder)

14. I have noted with appreciation that the Portuguese Government has decided spontaneously to postpone for a year the collection of the [Page 228] German reparations due to Portugal and that this action was notified in a statement relating to the budget for the fiscal year 1931–32. It is most encouraging to this Government to see that the Portuguese Government is taking steps which are so fully in harmony with the President’s proposal of June 20, 1931. The prompt and effective cooperation thus given by the Portuguese Government toward relief and the re-establishment of economic stability and prosperity in the world is most gratifying to this Government.

Unless you perceive some reason for not doing so, please transmit the above to the Minister for Foreign Affairs. Cable Department report of delivery.

Castle