611.5331/144
The Chargé in Portugal (Magruder) to the Secretary of State
[Received July 9.]
Sir: With reference to the Legation’s confidential despatch No. 595, of April 19, 1935, “Possible Denunciation of Commercial Arrangement between Portugal and the United States”, I have the honor to enclose herewith a clipping from the Diario da Manhã of June 26, 1935,13 containing the text of a decree which is about to be promulgated, requiring the previous authorization of the Commercial Banking Inspection Office (Inspecĉão do Comercio Bancario) for the importation into Portugal and the adjacent islands, in quantities to be determined by the Government, of merchandise originating or proceeding from any country which, by means of provisions of a legal or other nature, may attempt to impose upon Portugal an unfavorable commercial balance or artificially impede the importation of Portuguese goods.
The foregoing decree is aimed primarily, if not exclusively, against the United States and may be looked upon as the prelude to the establishment of quotas in retaliation against the order suspending the importation into the United States of Portuguese sardines of excessive lead content. A translation of the proposed decree is enclosed herewith.14
Respectfully yours,