18 



influence of France in Portugal is such, that if it were properly 

 utilised great benefits might result for the trade of both countries. 

 The trade with the Portuguese colonies is protected by a 

 protectionist tariff, the object of which is to concentrate in Lisbon 

 the colonial produce of West Africa, and to grant the freight 

 monopoly to Portuguese steamers. Mozambique (East Africa) 

 and Portuguese Guinea are not under this regime, and their direct 

 trade with foreign countries is progressing by leaps and bounds. 

 Angola (West Africa) has just adopted provisions aiming at 

 facilitating direct trade with foreign countries. Since the war 

 many foodstuffs which used to be imported from foreign countries 

 are being imported from the colonies, such as sugar, maize, rice, 

 but notwithstanding, much is still to be done in that direction. 



The Finances. 



The State finances do not correspond to the economic state 

 of the country. In the Budget for 1922-23 



Escudos. 



The ordinary receipts are estimated at ... 226,501,000 

 The extra ordinary at 35,051,000 



Total 261,552,000 



The estimated expenditure is, ordinary ... 353,420,000 

 Extraordinary 235,487,000 



Total 588,907,000 



The deficit is 327,000,000 escudos. 



The budget for the current year contains a very curious 

 comparative table of the income and expenditure calculated in 

 sterling. It may be inferred therefrom that whilst the expenses 

 remain constant the receipts decline and are reduced to one-third 

 of their amount in 1910, owing to the depreciation of the escudo. 

 The following are the figures given: 



Beceipts. Expenditure. 



& 



1910-11 13,660,367 ... 13,936,405 



1916-17 9,161,039 ... 9,389,032 



1917-18 8,749,691 ... 9,916,118 



1922-23 ... ... 4,879,848 ... 11,452,886 



The increase of expenditure resulting from the rate of 

 exchange is estimated at 121,597.000 escudos for the payments 

 to be made in gold, but in addition to this there are items of 

 110,400,000 escudos for the cost of materials to be purchased 

 abroad and 151,636,000 escudos for the grants to civil servants. 



