Due to rapid price inflation, the government permitted numerous increases in the tariff charged by APT between 1918 and 1923. The increases were justified by the company because of the devaluation of the Portuguese escudo against the pound sterling, the improvements in services, and salary increases for workers. However, critics argued that APT was employing British managers, who occupied all the senior positions and were much more expensive than Portuguese ones. APT’s labour and other costs were rising rapidly, but its tariff was based on an annual rate, which was quickly losing value. In 1924, the government agreed that charges should be based on calls made rather than an annual fixed charge but this decision was reversed almost immediately, after numerous complaints. After the 28 May 1926 coup d'état that led to the "Ditadura Nacional", the forerunner of the "Estado Novo", the company again renegotiated its contract. This agreement for a 40-year extension, which introduced tariffs per call but only for new subscribers, was signed in 1927. In 1928, the first international telephone connection was made to Madrid in Spain, followed soon after by a connection to England.