[Cisco] Local Switching Frame-Relay to FastEthernet

[R7 FE1/2]-------[FE0/0 R2  S2/0 DLCI 203]---------[S1/0.23 DLCI 302 R3]

[R7]
R7#sh run int f1/2
Building configuration...

Current configuration : 87 bytes
!
interface FastEthernet1/2
 no switchport
 ip address 192.168.37.7 255.255.255.0
end

======================================
[R3]
R3#sh run int s1/0.23
Building configuration...

Current configuration : 136 bytes
!
interface Serial1/0.23 point-to-point
 ip address 192.168.37.3 255.255.255.0
 frame-relay interface-dlci 302   
end
======================================
[R2]
interface FastEthernet0/0
 no ip address
 duplex full
 speed auto
 no cdp enable
 no clns route-cache
end
!
interface Serial2/0
 no ip address
 encapsulation frame-relay
 serial restart-delay 0
 frame-relay interface-dlci 203 switched
 no clns route-cache
end
!
connect FE-FR Serial2/0 203 FastEthernet0/0 interworking ip
!
======================================
[Verify]

[R7]
R7#ping 192.168.37.3

Type escape sequence to abort.
Sending 5, 100-byte ICMP Echos to 192.168.37.3, timeout is 2 seconds:
!!!!!
Success rate is 100 percent (5/5), round-trip min/avg/max = 8/20/44 ms

[R2]
R2#sh connection all 

ID   Name            Segment 1              Segment 2              State       
============================================================================
1    FE-FR           Se2/0 203              Fa0/0                  UP