653.116/162
Memorandum by the Assistant Chief of the Division of Western European Affairs (Culbertson)
The attached memorandum12 written by Mr. Morgan gives a pretty clear picture of the Portuguese flag discriminations against American shipping and commerce. It is an old story and one which has been becoming increasingly more aggravating in the past few months. We have not had in the past, nor do we have at present, any measures which we could adopt for the purpose of convincing Portugal of the incorrectness of her position.
Last year we initiated commercial treaty discussions with Portugal. Those discussions have been held in abeyance and I expect that upon the return of the Portuguese Minister to Washington he will inquire [Page 683] about the renewal of these discussions under our new program. I suggest that we take the position that since Portugal is deliberately practising such flagrant discriminations against our shipping, we see no useful purpose in undertaking treaty discussions at this time. It might be added that we consider the Portuguese action as being in violation of the existing modus vivendi13 which provides for most-favored-nation treatment.14
- Supra.↩
- Commercial arrangement effected by exchange of notes, June 28, 1910, Foreign Relations, 1910, pp. 828 ff.↩
- Notation by Henry F. Grady, Chief of the Tariff Section: “I agree to suggested procedure. H. G.”↩