Star.
London, England, 1821-10-15 00:00:00

WOOLLEN TRADE WITH PORTUGAL.

LISBON, SEPTEMBER 28.

A very considerable sensation having been excited in this coun-
try among the British Merchants interested in the Woollen Trade
with Great Britain, by a late resolution of the Cortes to change
the Duties on Woollen Goods imported here from England from
15 per cent. at which they lately stood, to 30, I have taken some
pains to make myself master of the subject, and in order that no
incorrect opinions may be formed on your side of the water, I
shall communicate to you the result of my inquiries.
That harmony and good understanding, founded on protection
received from Great Britain, and a mutual exchange of commo-
dities, which subsisted between the two countries for so many
years, rendered few Treaties necessary; In eousequenceorwhich
it will be easy to take a rapid view of those which existed pre-
vious to the arrival of the French, when the form of the Portu-
guese Monarchy changed so materially, end the ultra-marine
Provinces became the seat of Government, or, as it were, the
Mother Country was converted into the Colony. This sketch
Is, however, important, as it shelve. the spirit and meaning on
which the two Governments acted, during a long course of com-
mercial and friendly relations.
Our first Treaty of Friendship and Commerce with Portugal
was in 1642, who, British subjects were allowed the same pri-
vileges as those enjoyed by the Dutch, at that time the most
favoured nation in this cogntry. Our second Treaty was in
16.54, and it chiefly tended to confirm and ratify the one above-
mentioned, stipulating, at the same time, for certain regulations
regarding the loading and unloading of vessels. This Treaty,
besides, contains a secret Article, by which it is agreed, " That
the duties on British goods and merchandise shall not hereafter
exceeed 23 per cent on a favourable valuation ;" but it must be
here observed, that Woollens are not included in tkese " goods
and merchandise," since, at the time above alluded to, their im-
portation was not allowed. These several Treaties were confirmed
on the marriage of Marin 11. with Catherine of Portugal, and
again by the defensive Treaty of May? 1703. This was fol-
lowed by the. well-known Methuen Treaty, concluded on 27th
December, in the same year, and on this our commercial rela-
tions with Portugal hinged fur many years. By this Treaty it
is agreed, " That the introduction of Woollen Cloths and other
articles shall be allowed to the British, but on coedition that
Portuguese Wines shall be admitted into all ports of Great Bri-
tain, on payment of one-third less duties than those levied on
French Wines." It is necessary here to observe, that having
originally been put en the same fearing as the.Duteh, the most
favoured nation in• Portugal, the duties on our Woollens were
then establishad at 30 per cent. the same as then paid by them,'
and on this footing they continued till the emigration of the
Royal Family to the Brazils.
la 1810, Lord Stiangford made his new Treaty with the
Court cf Rio Janeiro, and it is on the two interpretations of the
15th and 2Gth Articles of this Treaty that all the present misun-
, derstanding rests. The 15th Article states, " That all goods,
wares, and merehandize of whatever kind they may be, of the
produce, t and invention of the dominions or sub of his
Britannic Majesty,i shall be admitted into the ports of Portugal.
wheth:r in Europe, America, Airicaor Asia, on the payment of
a duty of 15 per cent." Such is the general rate to be levied on
goods exud merchandize ; but that woollen articles are Sot in-
eluded in this clause, appears not only front the general spirit of
; the preceding Treaties, but also from the .6th Article of this
same Treaty of Lord Strangford, which expressly declares" That
1 the stipulations contained in former Treaties mammies the ad-

mission of Wines of Portugal on the one hand, and Woollen Cloths
of Great Britain on the other, shall at present remain unaltered."
This Article denotes that in the text, as well as meaning of
the new Titaty, Woollen Goods stand as an exception to the
general }dab* contained lit the 15th Article, conformably to the ,
tenor of former Treaties • and that this was the interpretation i
ofigisally even to the Treaty, is proved by the fact that said
Woollen Goods continued to pay SO per cent. here as well as in
the Bruits, for three years subsequent to the signing of the new
Treaty. In 1813, however, that Is, at a time when we pos-
sessed an immense influence in Portugal, as well as with the Go- I
`vernment of the Brazils, and which on more than one occasion
was unduly exercised, a doubt arose among the persous interested
in the Woollen Trade, whether or not the goods of this denomi-
nation ought to he included in the 15th Article in a general way.
On this a claim was established before the Government, and
British influence at the time obtained a Decree from Brazils,
dated Sth Ma) 1814, by which it was enacted, That Woollen
Goads should be included in the 15th Article of the Treaty, and
pay 1,5, instead of 50 per cent. duties, as hitherto had been the
case." This alteration in the duties by the Rio Janeiro Govern- I
merit was made in opposition to the opinion of the Lisbon Board
of Finance, expfessed in a Report, dated 28th September, 1813.
The Woollen Trade remained on this footing till the late
change! in Portugal; but the lemression generally entertained was,
that the alteration in the duties had been obtained contrary to
the meaning of the Treaty, through undue influence. Last July
the attention of the Cortes was called to this subject, and it was
referred to a Committee, who thereon made the following Re-
port, which I copy literally, as it is but just their reasons should
be known :
" The Committee of Commerce, in consequence of the com-
plaints relating to the wrong understanding and execution of the
26th Article of the Treaty of Commerce of 1810, between Pot-
tugal and Great Britain, having been charged to examine the
said Article, and the Treacles to which It refers, after due con-
sideration, report :
" That the said 26th Article declares, that tbe stipulations con-
tained in the former Treaties relating to the admission of Portu-
gal Wines on the one hand, and British Woollens on the other,
shall, for the present, remain without any alteration.
" That the only Treaty relating to the said articles of Wines
and Woollens, is that of 27th December, 1703, usually called the
Methuen Treaty, and that this Treaty having for object the ad-
mission into Portugal of British Woollens' till then prohibited,
the fixed rates of duties was not then expressly stipulated, but
it was agreed that the Wines of Portugal in British Ports should
pay one-third leas duties than French Wines.
" That in consequence of this stipulation, and at the time of
the last Treaty made in 1810, Portugal Wines were paying the
enormous duty of £55 per pipe, and that these enormous duties
continue to be demanded in British Potts.
" That, on the contrary, as Woollen Goods at the time of the
Treaty of 1810, continue to be subject to and paying only a duty
of 30 per cent. on a moderate valuation, this rate did not conti-
nue, as did that of the Wines in Great Britain, which continued
paying the same duties as before, but here the rate was reduced
to only 15 per cent. that is, to one half of the rate formerly paid;
wherefore, from what has been already stated, it appears to the
Committee of Commerce—
" That as the Treaty of 1703 only fixes the duties on Portugal
Wines in Great Britain, but does not determine any fixed rate for
British Woollens, the admission of which by the said Treaty was
first allowed in Portugal, the said Woollens consequently remained
subject, conformably to the same Treaty, to all and whatsoever
duties may at any time be imposed upon them in Portugal.
" That the 26th Article of the last Treaty of 1810, having de-
clared that the stipulations of the Treaty of 1703 should for the
present remain without any alteration, this clause newly con-
firmed the above, and thereby the Woollens continued, as before,
to remanysubject to whatever duty might be imposed upon them;
or even more, they were left liable to the same rate of 50 per
cent. they were paying at the these the said last Treaty was made,
according to the declaration which mutually confirmed all the
preceding stipulations.
" That the reduction made in the duties on the said Woollen
Articles, from 30 to 15 per cent. that is, one half of what they
formerly paid, has consequently no foundation whatever in the
Treaty of 1703, the only one relating to those articles, and still
nunch less in the last Treaty of 1810, since by an express article
thereof all the respective stipulations relating thereto were con-
firmed and revalidated afresh.
" That the 15th Article of the said last Treaty of 1810, which
possibly served as a pretext for the above prejudicial reduction
MA Isis to the public revenue, dots in fact stipulate the admis-
sion of all goods of the produce,industry manufacture, and of
British subjects, on payment of a general duty of 15 per cent.;
but as the said 26th Article of the same Treaty is subsequent
thereto, and which declares that the stipulations contained in the
former Treaties relating to the admission of Portugal Wines on
the
se
hand, and British Woollens on the other, were for the
present to remain without any alteration, the latter evidently
became a clear exception of the aforesaid Article.
" That this exception is the more just and obvious, as at the
time the last Treaty was made, the difference between the re-
spective duties on Portugal Wines and British Woollens was so
disproportioned, that this became the object of the said 26th
Article, for, notwithstanding the want of restriction in the
Treaty of 1703, and the full liberty to which this gave rise, du-
ties equal to 30 per cent. were exacted in Portugal on Woollens,
when, on the contrary, in Great Britain, more than 200 per
cent. were demanded on Portugal Wines, that is, more than
twice the original value of the Wine.
" And, finally, in consequence of all the above reasons, it
follows that the reduction iu the ditties on Woollens in Portugal
was as unjust as it was erroneous, and that on this account, ask
is improper any longer to tolerate so great a deficiency in the re-
venue, it is the opinion of the Committee that the duty of 30 per
cent. should be re-established as formerly, and levied in all the

Such are the facts and authorities I have been able to collect
on this curious and interesting question, and certainly, when duly
considered, they acquit the Cortes of Portugal of the crime of
having infringed the existing Treaty with Great Britain, which,
in the fitith Article, expressly points out on what footing British
I Woollens were to rest, thus rendering them an exception to the
general merchandise alluded to in the 15th. Whether the Por-
tuguese Cortes have acted wisely and politically on this occasion,
is another question; but I am inclined to think, under existing
circumstances, they have. As a legislative body, they are bound
to protect their own manufactures, and, in a competition with
us, this could not be done by a less duty than 30 per cent. and
even then, at the present prices of Wools, there is ample score
for our manufacturers. Not to have restored the primitive ore-
ration of the Treaty, accidentally tuspended as it was, would
have been contrary to their oaths and the very object for which
they were assembled.
It is not to be concealed, that our existing Treaty, that is,
Lord Strangford's, as it is usually called, is by no-means popular
in Portugal. It is supposed to have been obtained whilst a cor-
rupt
Ministry held the reics of Government in Rio Janeiro, and
at a time when our Government, from a variety of circum-
stances, possessed an unbounded influence over the Councils of
the Portuguese Monarch, and during a period when the affairs
of his kingdom were in a most unsettled state. On this account
it is unpopular, now that a new order of things has been esta-
blished. Nevertheless, we arc equally ready to acknowledge,
that in our opinion, the Portuguese themselves feel the benefit of
lowering the duties on the general class of British merchanilize,
Ithat is, cottons, hardware, &c. from 23 to 15 per cent. as was
done by the Treaty in question, because these are chiefly articles
of transit, and not consumed in the country, since they pass on
i to Spain, and this must continue to be the case, as long as the
I present restrictive laws are there kept in force. Woollen goods,
lon the contrary, are chiefly used fur home consumption, ant of
these the Portuguese have some manufactures, which, besides,
i they naturally feel anxious to encourage.
-

No one rejoices more than ourselves, when our countrymen
obtaia advantages in trade, or a new outlet for their manu-
factures; but commercial treaties, to be satkfactory and lasting,
must be fair, perfectly equalized, and reciprocal. The Porto.