653.116/35
The Minister in Portugal (Dearing) to the Secretary of State
[Received February 16.]
Sir: I have the honor to refer to the Department’s instruction No. 859, of December 31, 1927, with enclosure, in respect of the customs rebates accorded by the Portuguese Government to cargoes imported and exported in Portuguese vessels, and in general to the discrimination practiced against foreign shipping.
With regard to the customs rebates, there is nothing in the decree which distinguishes between rebates to Portuguese carriers on cargoes reshipped from European or other nearby ports, and those carried in Portuguese bottoms directly to and from distant ports (American or other). A translation of this decree, No. 7822, of November 22, 1921, is enclosed herewith.2
The question of these rebates is an integral part of the entire matter of discrimination.
The British Embassy and the German and other Missions with whom I took similar and relatively coincident action at the Foreign Office—in accordance with Department’s telegraphed instruction No. 36, of Dec. 31, 19262—are still at the present time waiting the promulgation of a further decree or decrees covering the discrimination, not affected by the decrees published on December 3rd and 5th [Page 770] last, as reported in my despatch No. 2150 of December 7, 1927.7 These Missions, meanwhile, expect to make no renewed intervention, none, at least, in the immediate future. They believe the Portuguese Government intends very soon to issue a further decree or decrees, probably favorable, and that the recent visit to Lisbon of the British fleet (reported in my despatch No. 2196, of January 27, 1928)7 will have accelerated this.
I concur with the opinions of my colleagues, and I earnestly advise against any isolated new intervention on this question for at least another month. I believe such action by the Legation at this time would have no good result but would merely cause irritation. If, in a few weeks, no action shall have been taken by the Portuguese Government, or if the action taken shall be unsatisfactory, the Legation will make such further representations as the Department may deem advisable.
With respect to the furnishing of information relative to import duties applicable to tobacco and any special regulations thereon; and supplemental information giving recent developments, the Legation will communicate with the Department in a further despatch.
I have [etc.]