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"It is necessary to reformulate the legislation applicable to the export of war material and ammunition and the import of raw materials and other goods for the production of the same material. In particular, the rules contained in Decree-Laws need 10 be thoroughly updated. 39 397, of 22 October 1953 and 40 409. of 6 July 1955 ».

The diploma applies to the national production of war material and ammunition ordered by countries foreigners, the export or re-export of war material and ammunition and the import of raw material and other goods for the production, by national companies, of war material, ammunition and military equipment ordered by the Armed Forces or other forces military and militarized people of Portugal.

Additionally, article 2 establishes the powers of the Minister of Defense and the Minister of Foreign Affairs in this matter.

Thus, the Minister of National Defense has the following powers:

aj «To establish, in agreement with the competent departments of foreign governments, the

acceptance of orders for war material and ammunition for execution by the industry

national armaments; b) Authorize national companies to accept orders of the nature memioned in

previous paragraph destined for foreign countries or 10 promote the export or

re-export of war material und ammunition; c) To sanction the export of war material and ammunition sold by the Armed Forces and

other military and militarized forces; d) Issue the authorizations provided for in article 3 of the present diploma; e) Promote the inspection provided for in article 6 and the accreditation provided for in article 7 of

this diploma ».

In addition to the competences of the Minister of National Defense, the following competences on the part of Minister for Foreign Affairs:

«It is incumbent upon the Minister for Foreign Affairs to issue an opinion on the desirability of operations mentioned in paragraphs a) to c) of the previous number, from the point of view of external ».

The impact of the work of the CPI on the issuc of arms cxports, specifically in thc export of weapons for Iran comes from a news item in the Portugal Today newspaper, published on November 11, 1980, which originated an official note from the Government on the subject.

Says the daily news:

«Diplomatic observers are hanging around with their ears in the air to see if they know anything about the precise und concrete destinations of the arms thut Portugal sells abroad. It says that Lisbon hus been supplying ammunition to Iran, with which it was said that Portugal had severed commercial relations with great scandal ".

At the end of the article, six questions are asked in the form of a public appeal:

1. Israel was, before the fall of the Shah of Iran, one of the major arms suppliers 10

that country. Some dealers involved in the business will have tried to maintain their position in the