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The present treaty shall extend, as regards Portugal, to the mother country and adjacent islands (Madeira, Porto Santo, and Azores), but shall not extend to any of the dominions, colonies, possessions, or protectorates of either contracting Party unless notice of the desire of such contracting Party that the treaty shall apply to any such dominion, colony, possession, or protectorate shall have been given to the other contracting Party before the expiration of one year from the date of the exchange of the ratifications of the present treaty.
Nevertheless, the goods produced or manufactured in any of His Britannic Majesty’s dominions, colonies, possessions, and protectorates shall enjoy in Portugal complete and unconditional most-favoured-nation treatment so long as such dominion, colony, possession, or protectorate shall accord to goods the produce or manufacture of Portugal treatment as favourable as it gives to the produce or manufacture of any other foreign country; and reciprocally the goods produced or manufactured in any Portuguese colony or possession shall enjoy like most-favoured-nation treatment in the United Kingdom of Great Britain and Ireland so long as such colony or possession shall accord to goods the produce or manufacture of the United Kingdom treatment as favourable as it gives to the produce or manufacture of any other foreign country.
Colonial goods re-exported from the mother country of one of the contracting Parties shall be treated in the territory of the other as proceeding from that mother country, and shall therefore be exempt from supertaxes on indirect trade which may eventually be established.