653.003/146: Telegram

The Minister in Portugal (Caldwell) to the Secretary of State

4. Decree effective today raises the existing surtax on imports of 20% to 28% and creates a special surtax on exports of 13½% for merchandise transported in vessels of countries which have not secured abolition of flag discrimination unless these countries do so by August 1st. Portuguese vessels and those of countries whose treaties give them national treatment are exempted from the increased rates but will not continue to receive the previous reductions on existing duties. [Page 679] Great Britain, France and the Netherlands now have such treaties and Germany is completing negotiations. Gasoline, mineral oils, coal and sugar are exempt from the discriminatory rates.

Caldwell