I requested the Consul-General to keep at the business of trying to obtain a basis of settlement. Later on, I was informed through the Consulate that the Provisional President, to whom the Minister of Marine had referred the matter, had decided to accept payment. This was the status of the question until January 25th, the day before the Corsair’s departure, when the Commanding Officer, accompanied by the Consul-General, made leave-taking calls upon the Arsenal officials.

The Director of the Arsenal at this time stated that he had orders from the President to render no bill to the U.S. Government. As our Government had not recognized the officials in power in Portugal during this time, the American Minister could take no action.

The cost of repairs to the U.S.S. Corsair by the Portuguese Government during the period from December 20th to January 25th is a gift to the U.S. Government.

A translation of the letter in which the naval authorities of Lisbon, with the most courteous obstinacy, decline to permit the Corsair to pay for the valuable services received, reads as follows:

Office of the Minister of Marine
Administration of Repairs and
Equipment, Naval Arsenal

I have the honor to accept the receipt of your communication dated the second instant and to transcribe the decree of the fourth instant by His Excellency, the Minister of Marine, concerning the matter, viz:

The Minister of Marine, appreciating the spirit of the note, No. 830, and taking into consideration the fact that the damages were suffered in the service of the Allied Cause which we jointly defend, and desiring to have the approval of His Excellency, the Consul-General, and therefore of the Government which he represents, has decided that payment cannot be accepted for the repairs made.

It is our pleasure and privilege to give all that is within our power, and we pledge our word to coöperate with our most earnest efforts for the cause of humanity and justice.

(Signed) Pelo, Director

To His ExcellencyTo our Welfare and Fraternity
The Consul-General of the
United States of America