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HE SAID THAT WHILST THE PORTUGUESE GOVERNMENT HAD
BEEN VERY CONCERNED AT THE INSTITUTION OF THE
IMPORT DEPOSITS SCHEME AND THE FOREIGN TRAVEL ALLOWANCE RESTRICTIONS, HE DID NOT THINK THAT THESE HAD HAD ANY GREAT EFFECT ON PORTUGAL IN PRACTICE.
IT WAS FAR MORE IMPORTANT FOR PORTUGAL THAT THE BRITISH ECONOMY SHOULD BE HEALTHY AND IF THE CONTINUATION OF
THESE MEASURES WAS LIKELY TO CONTRIBUTE TO THIS
IT WOULD PROBABLY BE BENEFICIAL TO PORTUGAL.
IN ANY CASE HE WELCOMED THE REDUCTION IN THE RATE OF DEPOSIT.
5. IN THE LIGHT OF THESE RATHER CONTRADICTORY REACTIONS
IT MAY BE WORTHWHILE RECORDING MY BELIEF THAT THE MORE TYPICAL PORTUGUESE VIEW WILL BE THAT OF THE MINISTER. ALTHOUGH WE(GP OMITTED)
NEVER UNDERTAKEN THAT THE IMPORT DEPOSITS SCHEME
WOULD NOT BE RENEWED, THE PORTUGUESE ARE LIKELY TO MAINTAIN THAT SUCH AN UNDERTAKING, IF NOT GIVEN,
WAS IMPLIED AND THAT THE EXTENSION OF THE SCHEME IF NOT
A BREACH OF PROMISE IS A BREACH OF FAITH.
FCO PASS TO ALL.
MR. HALL
[REPEATED AS REQUESTED
ALSO DISTRIBUTED TO THE OUTSIDE RECIPIENTS OF EUROPEAN ECON & POL DIST]
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