653.116/67: Telegram

The Minister in Portugal ( Dearing ) to the Acting Secretary of State

3. Question of discrimination against foreign vessels is being vigorously revived by new British Ambassador under instructions from London. French, Dutch, Norwegian, Italian and German colleagues in accord and planning early joint action. I believe we should follow this lead and not consider reprisals until we see what develops. Our exports to Portugal and colonies are steadily increasing and benefits of 1910 arrangement should not be sacrificed without making sure of greater tangible advantages. Situation must be considered in light of present improvement, but difficult economic and political conditions here, the new tariff and Portugal’s determined effort to assist and develop its merchant marine. Further report by mail. Have addressed note regarding American-West African Line to Foreign Office in the sense of first part of Department’s instruction and am continuing investigation.