653.116/39: Telegram
The Secretary of State to the Chargé in Portugal (Andrews)
10. Your 15, April 10, 7 p.m. If subsidy of one and one-half escudos per ton upon coal imported in Portuguese vessels is payable to Portuguese shipowners, Department perceives no ground for representations. Such a measure must be accepted as direct subsidy. On the other hand, if such payments are made to importers who patronize national vessels for the purpose of giving the latter an advantage over competing foreign vessels in obtaining cargo, you should make informal representations, pointing out that abandonment of discriminating import duties in favor of national vessels will be rendered illusory if measures so similar in their effects are substituted.
Keep Department closely advised.