[Enclosure]
The American Minister (South) to the Portuguese Minister for
Foreign Affairs (Mendes)
No. 384
Lisbon, September 28,
1932.
Excellency: With reference to the
abandonment in principle of the policy of levying discriminatory
duties announced by Your Excellency’s Government under the terms
of Decree No. 20,304 of September 12, 1931,23 I
have the honor to bring to Your Excellency’s attention my note
No. 260 of October 19, 1931,24 in
which I had the honor, acting under instructions from my
Government, to inform Your Excellency’s distinguished
predecessor, Captain Branco, that, in the absence of information
from Your Excellency’s Government in respect of its plans for
rendering effective in fact the abolition of discriminatory
rates, my Government would reluctantly be forced to the
conclusion that the decree in question appeared to represent an
inadequate remedy for the inequalities practised.
Under date of November 4, 1931, (Processo No. 78/27)25 His
Excellency Captain Branco replied at length to the
representations to which I have made reference hereinabove. From
this note, I venture to quote in translation the following
pertinent passages:
“With reference to the Legation’s note No. 260 of October
19, last, I have the honor to inform you that the
Government of the Republic, faithful to the principle
expressed in Decree No. 20,304, is endeavoring to adopt
all measures for the early extinction of the customs
bonus by which the Merchant Marine has been benefited
and under which there has been created a state of
affairs the immediate suppression of which would gravely
affect national economics.”
“The good faith of the Portuguese Government thus becomes
evident from the conciliation of all points of view and
interests to the extent which is just and reasonable.
And under such a criterion, doubt cannot be cast upon
the efforts employed for the rapid realization of a
complete plan of protection of the national merchant
marine (Decrees Nos. 20,321 of September 18, 1931,
20,333 of September 22, 1931, and others under
consideration) which through its effects may render
possible the gradual suppression of the customs bonus in
harmony with the general provisions set forth in Decree
No. 20,304.”
[Page 651]
Now, however, Your Excellency’s Government, instead of providing
for further reductions looking toward the total extinction of
discriminatory duties in conformity with the terms of Article 1
of Decree No. 20,304, has suspended (by Decree No. 21,670 of
September 19, 1932) Decree No. 20,333 of September 22, 1931,—one
of the very decrees cited by Captain Branco as evidence of the
good faith of Your Excellency’s Government in its expressed
determination to render effective in fact the abolition of
discriminatory rates to which it is committed in principle.
Under the circumstances, I venture to submit that the course of
the negotiations which have taken place on the subject under
discussion would appear to justify my Government in the
expectation of a further reduction in the discriminatory duties
applicable to the fiscal year 1932–1933.
Accept [etc.]
