DEPARTMENT OF STATE,

_February 27, 1836_.

The PRESIDENT OF THE UNITED STATES:

The undersigned, Secretary of State, has the honor to report to the

President that official information was received at this Department some

time since from the chargé d'affaires of Portugal of the abolition of

all discriminating duties upon the cargoes of foreign vessels, including

those of the United States, imported into Lisbon and Oporto, by a decree

of the Portuguese Government promulgated on the 18th of April, 1834,

the operation of which decree was stated by the chargé to extend to the

island of Madeira. Upon the strength of this decree he applied, by order

of his Government, for the suspension, under the fourth section of the

act of Congress of January 7, 1824, of discriminating duties upon the

cargoes of Portuguese vessels imported into the United States; but

being informed that the act alluded to was inapplicable by reason that

discriminating duties upon the cargoes of American vessels still existed

in a part of the dominions of Portugal, he has requested that the

principle acted upon in regard to Holland may be extended to Portugal,

and that discriminating duties may be abolished in respect to Portugal

proper, the Madeira Islands, the Azores, and such other parts of the

Portuguese dominions wherein no discriminating duty is levied upon

the vessels of the United States or their cargoes. This request is

accompanied by a suggestion that unless some such reciprocity is

established the benefits of the decree of April, 1834, will be withdrawn

so far as respects this country. Application is also made for a return

of the discriminating duties which have been collected since the

promulgation of the said decree from the vessels of Portugal arriving

in the United States from any of the ports embraced by that decree.

In reference to this point it is proper to state that it does not appear

that the force or operation of the decree referred to of the 18th April,

1834, was extended by any official act of the Portuguese Government to

the islands of Madeira or the Azores until February or April, 1835.

It is also to be observed that, notwithstanding the abolition by that

decree of discriminating duties upon the importation of goods into

Portugal from foreign countries, an exemption existed until the 1st of

February instant, according to information received from our chargé

d'affaires at Lisbon, in favor of various articles when imported from

Great Britain, from an excise duty which was exacted upon the same

articles when imported from other foreign countries or produced or

manufactured at home. This exemption was granted in pursuance of the

construction given to a stipulation contained in the late treaty

between Portugal and Great Britain, and ceased, together with that

treaty, on the 1st day of the present month.

The undersigned has the honor to transmit with this report a copy of the

correspondence between the Department and the chargé d'affaires of

Portugal upon which it is founded.

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