462.00R296/4282: Telegram
The Minister in Portugal (Magruder) to the Acting Secretary of State
[Received July 4—5:12 p.m.]
19. Department’s instruction No. 14, July 3, 2 p.m. Statement referred to by the Department reads as follows:
“The proceeds of the German reparations appear under revenue, as there is nothing definite yet regarding President Hoover’s proposal to postpone the payment thereof for 1 year in connection with the inter-allied debts. Inasmuch as we enter them under revenue, we likewise enter under expenditures the 350,000 pounds sterling which, failing any agreement, we shall have to pay to England from the installments falling due next year. Should the postponement materialize, it will cost us some thousands of contos which it is necessary to sacrifice, they say for the good of Germany and of the world.”
In consequence I have deferred action inasmuch as no decision has yet been taken by Portugal.