653.116/38

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

No. 2221

Sir: I have the honor to refer to the information contained in my telegram No. 7, of February 24, 1928, and my despatch No. 2220, of February 24th, 1928, with respect to the question of discrimination against foreign shipping.

[Page 773]

Informal protests are being made on every available occasion by the interested Chiefs of Missions to keep before the Minister for Foreign Affairs the importance of a speedy abatement of this discrimination. When I talked with him on the last reception day he seemed genuinely anxious to reassure me that in a very short time his Government expected to issue a decree in the matter which he believed and hoped would be satisfactory to foreign interests. He was at some pains to emphasize that the Government accepted in principle equality of treatment and he attributed the delay, which he seemed to recognize as being very long, to the fact that the Government was endeavoring to find a means of compensating Portuguese shipping interests for the loss of the advantage of the 10 percent in imported cargoes and 20 percent in exported cargoes, which they are now receiving. His excellency said he believed that a means had been found, although the work was not yet completed, and that this would permit of the abolition of the discrimination.

The Consulate General does not find altogether satisfactory the changes effected by the Government’s decrees relative to port charges and dues, published on December 3rd and 5th, 1927, reported in the Legation’s despatch No. 2150, of December 7, 1927,10 namely:

  • Decree No. 14,646—reducing the taxes established on steamship tickets, as well as the stamp tax incident on the cost of said tickets;
  • Decree No. 14,647—making various reductions on the taxes levied on maritime trade;
  • Decree No. 14,664—promulgating various provisions destined to promoting and facilitating the entry of ships into national ports, altering the lighthouse and pilot dues, and the taxes for entry into ports;
  • Decree No. 14,665—reducing consular fees relative to navigation services, in order to promote the increase of traffic in Portuguese maritime ports;
  • Decree No. 14,666—making various alterations in the tariff of Consular fees, with a view to promoting the lower cost of articles of importation most necessary for the consumption of the country, especially those destined for subsistence, agriculture and industry.

The criticism of the Consulate General is made on the grounds that whereas the decrees provide for an alleviation of the burden of charges and dues they are so drawn as to allow for an increasing of these at some future time. In contrast with this opinion the British Embassy informs me that the two chief British shipping firms in Lisbon: Messrs. Garland, Laidley & Co., and James Rawes & Co., have stated to the Embassy that they are fully satisfied with the changes effected by the decrees.

I have [etc.]

Wm. Whiting Andrews
  1. Not printed.