611.536 Wines/11

The Portuguese Minister (Bianchi) to the Secretary of State

No. 22 P. 11/2

Sir: During the recent discussions in connection with the importation into the United States of Portuguese Wines the general position of American-Portuguese trade was reviewed, particular attention being paid to American agricultural products and in the chapter of wheat all possibilities were scrutinized.

2.
In brief, it was ascertained that the trade balance was highly in favor of the United States; that there were no trade obstructions in force in Portugal, whether in the form of quotas or exchange restrictions or others that might hinder American trade; in the case of many articles which interest American export trade, Portugal took large percentages of her needs in American goods, these percentages being particularly high in the case of agricultural products such as cotton and tobacco; that in the case of wheat whenever Portugal required supplies she had turned to the United States for them.
3.
In connection with the latter, the Interdepartmental Committee pointed out that, as regards the importation of flour into Madeira Island, the prevailing acidity level was unfavorable to the American flour competing in that market and requested that it should be lowered. In spite of the fact that this meant an alteration of our laws and that such a measure would have a character of permanency as compared with the entirely temporary and limited aspect of the allocation of wine quotas, the Portuguese Government declared its readiness to accede to the request, realizing that it pertained to a matter the Administration had so much at heart at the moment. In return the Portuguese Minister received assurances that the quotas for Portuguese wines would be dealt with, not according to figures that were considered inadequate, but taking into consideration certain conditions which were difficult to translate into definite quantities at the time of the agreement.
4.
I have now the honor to inform Your Excellency that, in pursuance of my Government’s undertaking and for the sole purpose of meeting the requirements of the American flour interests, the Portuguese Government, on the 2nd instant, under number 23542, published in the official Gazette a decree altering the flour acidity in the form requested by the competent Department of the American Government, and they feel confident that Your Excellency’s Government will not fail to carry out to its completion their part of the agreement, as they have done heretofore, on the general lines and in the spirit of mutual confidence and reciprocal benefits in which it was arrived at.

I have [etc.]

Bianchi