Defence.

The fortified places of the first class in Portugal are Lisbon (with the forts of Monsanto, San Julião-da-Barra, and other defensive works), Elvas and Angra (Azores). The defences of Lisbon, now almost complete, are the only thoroughly modern ones.

The army is formed partly by voluntary enlistment and partly by conscription. The conscription is regulated by the law of 1887, modified in 1891, 1892, 1894, 1895, 1896, and 1901. All young men of twenty-one years of age are, with certain exceptions, obliged to serve. The period of service extends over fifteen years, of which three years are spent in the active army, five years in the first reserve, and seven in the second reserve. The number of men in the annual contingent is fixed each year by the Cortes; for 1905 the number was 15,000, besides 1,000 for the navy, 500 for the Municipal Guards and 400 for the Fiscal Guard.

The organisation of the army is based on the laws of September 7, 1899, and December 24, 1901. Continental Portugal is divided into 3 great military circumscriptions, each of them comprising 2 divisions, and the islands into 2 military commands, the Azores and Madeira. Continental Portugal is divided into 24 conscription and reserve districts, and the islands into 3. The army consists of 24 regiments of infantry of 3 battalions; 3 regiments of infantry of 2 battalions, 6 battalions of chasseurs, of 6 companies, each battalion with a section of sappers, 1 of cyclists, and 1 of machine guns; 10 regiments of cavalry, each regiment of 4 squadrons; 6 regiments of field artillery, each of 6 batteries; 1 group of 2 horse batteries; 6 groups of fortress artillery, each group of 3 batteries; 4 independent batteries of fortress artillery; 1 regiment of engineers consisting of 6 companies of sappers, 2 of pontooneers, 1 of telegraphists, and 1 railway company; 3 independent companies of engineers, being 1 of fortress sappers, 1 of fortress telegraphists, and 1 of torpedoists. In time of war the Municipal Guards of Lisbon and Oporto, and the Fiscal Guard, are incorporated in the army. The following table shows the peace and war effectives of the army, central services, administration and sanitary services not included :—

The navy of Portugal comprises:-1 Royal yacht, Amelia (1,240 tons), 1 armoured cruiser, Vasco da Gama, (3,030 tons), 5 protected cruisers, Dom Carlos I. (4,253 tons), São Gabriel (1,800 tons), São Raphael (1,800 tons), Adamastor (1,757 tons), and Rainha Dona Amelia (1,656 tons); 2 corvettes, Duque da Terceira and Affonso de Albuquerque ; 20 gun-boats (100 to 800 tons), 1 torpedo gun-boat, Tejo (530 tons); 16 river gun-boats (20 to 80 tons); 3 transports; 2 training ships; 4 torpedo boats.

The Dom Carlos I. is 360 feet long, with 46 ft. 6 in. beam and 17 ft. 6 in. draught, having a 4 in. protection deck, and a speed of 22 knots, and carrying four 5-9 in., eight 4.7 in., twelve 3 pr., 1 pr. and five torpedo tubes.

Production and Industry.

Of the whole area of Portugal 2-2 per cent. is under vineyards; 7.2 per cent. under fruit trees; 12.5 per cent. under cereals; 2.7 per cent. under pulse and other crops; 267 per cent. pasture and fallow; and 29 per cent. under forest; 458 per cent. waste. In Alemtejo and Estremadura and the mountainous districts of other provinces are wide tracts of common and waste lands, and it is asserted that from 2,000,000 to 4,000,000 hectares, now uncultivated, are susceptible of cultivation.

There are four modes of land tenure commonly in use:-Peasant proprietorship, tenant farming, métayage, and emphyteusis. In the northern half of Portugal, peasant proprietorship and emphyteusis prevail, where land is much subdivided and the 'petite culture' practised. In the south large properties and tenant farming are common. In the peculiar system called aforamento or emphyteusis the contract arises whenever the owner of any real property transfers the dominium utile to another person who binds himself to pay to the owner a certain fixed rent called foro or canon. The landlord, retaining only the dominium directum of the land, parts with all his rights in the holding except that of receiving quit-rent, the right to distrain if the quit-rent be withheld, and the right of eviction if the foro be unpaid for more than five years. Subject to these rights of the landlord, the tenant is master of the holding, which he can cultivate, improve, exchange, or sell; but in case of sale the landlord has a right of pre-emption, compensated by a corresponding right in the tenant should the quit-rent be offered for sale. This system is very old-modifications having been introduced by the civil code in 1868.

The chief cereal and animal produce of the country are:-In the north, maize and oxen; in the mountainous region, rye and sheep and goats; in the central region, wheat and maize; and in the south, wheat and swine, which fatten in the vast acorn woods. Throughout Portugal wine is produced in large and increasing quantities. Olive oil, figs, tomatoes are largely produced, as are oranges, onions, and potatoes.

Portugal possesses considerable mineral wealth, but coal is scarce, and, for want of fuel and cheap transport, valuable mines remain unworked. The quantity and value of the mineral produce in 1903 was :

Common salt, gypsum, lime, and marble are exported. In 1900 there were in force 428 concessions of mines, embracing an area of 11,636 acres. Of the concessions, 428 were of mines yielding metallic ores, 22 yielding coal, 5 coal and iron, 6 asphalt, graphite, asbestos, &c. The persons employed in and about the mines in 1903 numbered 4,547. In 1903 several tin mines in Braganza were transferred to a Belgian company.

In northern Portugal cotton spinning and weaving are prosperous. In the neighbourhood of Oporto, in 1899, there were 15 cotton mills, their manufactures being intended chiefly for Africa. The population engaged in industries of various kinds, exclusive of agriculture, in 1900 was 455,296.

Portugal has 37,500 persons and 8,220 vessels of 28,087 tons engaged in fishing, besides 17 vessels in cod fishery. The exports of sardines and tunny fish are considerable. The value of the fisheries in 1903 was 3,907,466 milreis, including sardines 1,799,230 milreis and tunny fish 376,446 milreis, besides whale fisheries in the Azores, 44,629 milreis, and cod fisheries, 152,635 milreis.

Commerce.

The following table shows the value of the imports for consumption and the exports (exclusive of coin and bullion) for five

Of the imports into Portugal in 1903, 30 per cent. came from Great Britain, 17 per cent. from Germany, 10 per cent. from the United States, 9 per cent. from France, 9 per cent. from Spain, and 3 per cent. from the Portuguese colonies. Of the exports Great Britain took 26 per cent.; Spain, 18 per cent.; Brazil, 17 per cent.; the Portuguese colonies, 16 per cent.; Germany, 7 per cent.

The following table shows the various classes of imports and exports (special trade) in two years :—

The following table shows the declared values imports and exports in 1903 :

of the leading special

Wine is the most important product; the export in 1903 consisted of 49,134,590 litres of common wine, and 28,827,440 litres of liqueur wine, comprising 2,640,360 litres of Madeira, and 25,635,720 litres of port. More than a half is sent to Brazil, considerable quantities being exported also to England and to the Portuguese colonies.

The recorded quantities, values, and origin or destination of imports and exports are those presented in the declarations to the Customs houses, the values being reduced to averages. Import duties are in general specific. On yarns of cotton they range from 348. to 2408. per cwt.; of wool, from 1378. 2d. to 3268. per cwt.; on woven goods of cotton from 138. 9d. to 5728. per cwt.; of wool, from 138. 9d. to 5268. per cwt. On coal the duty is 18. 63d. per ton; on iron, 1d. to 68. 10d. per cwt.; on iron manufactures, from 5 d. to 1148. 4d. per cwt. On locomotives and railway material the duties are from 12 to 25 per cent. ad valorem; on scientific instruments 15 to 30 per cent. ad valorem. Food imports are heavily taxed; rice, 88. 11d. per cwt.; cheese, 688. 7d.; bacon, 458. 9d.; sugar, 278. 5d. per cwt., besides internal duties on sugar. There is no "most favoured nation" treaty with Great Britain.

The subjoined table gives the total value of the imports from Portugal into the United Kingdom and of the exports of British produce to Portugal, in the last five years, according to the Board of Trade returns :—

Wine is the staple article of import from Portugal into the United Kingdom, the value amounting in 1903 to 1,003,4927. Other imports from Portugal are-copper ore and regulus, 97,6677.; cork, 444,3417.; fruits, 186,4167. ; fish, 319, 6677.; onions, 29, 4177.; wool, 64,0837.; caoutchouc, 189,7587. The exports of British home produce to Portugal embrace cotton goods and yarn to the value of 442,7667. ; iron, wrought and unwrought, valued at 240,7537. ; woollens and worsted, 48, 6847.; coal, 450, 0727.; machinery, 149,6787. in 1903.

The subjoined table shows the quantity and declared value of wine imported into the United Kingdom from Portugal in each of the last six years:—

In 1903 the total imports of wine from all countries into the United Kingdom amounted to 14,710,588 gallons, valued at 4,697,5987.; consequently the imports from Portugal were 23 per cent. of the total quantity, and 21 per cent. of the total value of the wine imported.

Shipping, Navigation, and Internal Communications.

The commercial navy of Portugal (including the colonies) on January 1, 1904, including all vessels of 15 registered tons or more, contained 77 steamers of 50,487 tons in the aggregate, and 497 sailing vessels of 63,048 tons.

Including vessels merely calling at different ports, the shipping (foreign trade) which entered and cleared the ports of Portugal, the Azores, and Madeira in two years was :