611.5331/134: Telegram
The Secretary of State to the Minister in Portugal (Caldwell)
2. Department’s 1, March 22, 5 a.m. Instead of issuing a proclamation listing the countries which discriminate against American commerce, it is now proposed, subject to the President’s approval, that he will issue to the Secretary of the Treasury a letter specifying the countries to which, the Belgian concessions will be extended.6 This letter will provide that extension of the concessions will be made in respect of the products of Portugal until 30 days from the date on which the President notifies the Secretary of the Treasury that the United States has ceased to be bound by provisions of the existing commercial arrangement. Certain other treaty countries are included in this category with Portugal.
The Portuguese Minister7 discussed this matter yesterday with an officer of the Department, and he felt that this new procedure, which did not specify Portugal as a discriminating country, would be better received in Portugal than the original proposal as outlined in the Department’s telegram under reference. It was pointed out to him that we are giving consideration to giving notice of termination of the existing commercial arrangement, and that unless satisfactory adjustment can be made prior to the effective date of termination, benefits arising from trade agreements negotiated with other countries would not be extended to Portugal, after the expiration of the present agreement. The Minister stated that he felt that denunciation would have a very bad effect in Portugal, and hoped that there might be delay in giving notice of termination in order that he could endeavor to work out some adjustment of the present shipping discrimination.