The Minister in Portugal ( South ) to the Secretary of State
[Received October 5.]
Sir: With reference to the Legation’s despatch No. 408 of July 10, 1931,5 and to previous correspondence on the subject of flag discrimination, [Page 967] I have the honor to enclose herewith a copy of the Diário do Govêrno of September 12, 1931, Series I, No. 211, containing the text of Decree No. 20,304 of September 12, 1931, whereby the Portuguese Government professes to abandon in principle the position it has maintained since 1921 in respect of flag discrimination and undertakes by means of successive reductions to do away with the rebate of ten per cent on import duties granted during the past ten years to all goods imported into national ports, including those of the adjacent islands, in Portuguese bottoms. The new decree provides for an initial reduction of from ten per cent to eight per cent in the aforesaid rebate, effective from October 15, 1931, to June 30, 1932, inclusive. However, care has been taken to avoid committing the Government in respect of the amounts of the subsequent reductions of which assurance has been given—this question having been left open for subsequent determination. A translation of the decree is also herewith enclosed.