File No. 862.85/16

The Chargé in Portugal ( Bailey ) to the Secretary of State

No. 141

Sir: I have the honor to refer to this Legation’s despatch No. 138, dated the 14th instant,1 and to further inform the Department that yesterday afternoon and last night the naval authorities of the Portuguese Government went aboard the thirty-five German merchant ships which were interned in the port of Lisbon at the commencement of the present European war, hauled down their respective flags, hoisted instead the Portuguese flag, and took forcible possession of the ships in the name of the Portuguese Government.

I enclose herewith copy and translation of a decree by the Portuguese Government, published in a supplement to the Diario do Governo dated yesterday, setting forth the reasons for this action and the regulations governing the mode of procedure, including provisions for the disposition of articles of merchandise found on the ships and the eventual return of the vessels to their original owners.

This decree was published in a supplement to the Diario do Governo, dated the 23d instant, but was enclosed in to-day’s publication of that organ. This course was adopted with the ostensible [Page 22] purpose of avoiding excitement or disorder by taking possession of the vessels before the public was aware of the procedure. Even the German Minister accredited to Portugal did not know in advance of the proposed action.

I question the good faith of the Portuguese Government in its declared object in taking these ships, or in its declaration as to their final disposition, or proposed monetary payment to their respective owners for their damage or use.

In case the Portuguese Government becomes fully convinced that the Entente powers will be the victors in the present European war, it is my opinion that on some pretext a declaration of war by the Portuguese Government will be made against Germany with a view of finding an excuse, if possible, for retaining these ships without payment.

While it is difficult to cite concrete, positive evidence in the matter, there is every plausible reason for believing that the Portuguese Government took possession of these German merchant ships with the full knowledge and approval of the British Government, and that whatever course may be followed as to their final disposition will also have the approval of the British Government.

I have [etc.]

James G. Bailey
[Enclosure—Extract—Translation]

Decree published in Supplement to “Diario do Governo,” February 23, 1916

Whereas, considering the interest of national economy with regard to the maritime means of transportation, which are becoming more and more difficult and expensive, one of the causes of this difficulty being the want of ships for this purpose; and

Whereas, such a matter bears directly on the present problem of subsistence, which is for the public salvation, and for this reason demands urgent and adequate measures for the pressing needs of the country; and, in accordance with the regulations on clause 10 of law No. 480, dated February 7, 1916:

I hereby decree in harmony with this law and by proposal of the Government the following:

Article 1. The requisition of means of maritime transport, authorized by law No. 480, of February 7, 1916, will be made by order of the Minister of Marine, or by his representatives, by the maritime authorities, at the place where the ship is to be found. . . .

Article 3. The requisition made, steps shall be taken at once for the taking of an inventory of the cargo and any other articles which may be considered as belonging to the ship. . . .

§ 3. The cargo and other articles which are referred to in this article should be disembarked and taken, at the expense and the risk of the owners, to the offices of the customhouse in Lisbon or the port of this city, and, at other ports of the mainland or colonies, to the place which shall be decided upon by the competent customs authorities. . . . .

Article 5. A committee is hereby formed by the Ministry of Marine which has for its end the following:

(1)
The valuation of the ship and all that belongs to it.
(2)
Deciding on the amount to be paid in retribution for the use of the ship.
(3)
Deciding on the indemnity due for accidents or any injury which may not be caused by the use for which the ship was originally intended.
(4)
Deciding on the indemnity for any modification made in the vessel which diminishes its value.
(5)
Deciding upon all questions relating to the food and salaries of the crews now employed and while they remain on Portuguese territory, if not sent back home.

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  • § 1. The retribution mentioned in clause 2 shall be paid every half year, and shall at once be deposited in the general fund, the same being done to the amounts corresponding to the indemnities mentioned in clauses 3 and 4.
  • § 2. The amounts deposited in the terms of the above paragraph may be reclaimed by those who have the right, after the redelivery of the vessel.

  1. Not printed.