Well Chris, this is what i got from a Portuguese antique arms authority; whether it fits the context and answers your question..
In the 16th to 18th centuries, the use and carrying of a navalha (provided it was not used with bad intentions) was free.
Navalha was called a knife with a folding blade, whose cutting part should not exceed the width of four fingers of an ordinary man, that is, 10 cm.
Once Alicante, Toledo and Seville had, in Napoleonic times, supplied navalhas of enormous dimensions, copying the idea of the French navy's boarding saber, which allowed the blade to be folded into the handle, such giant navalhas were called "cuchilos to kill the French", who had banned them.
This denomination is just a popular curiosity. There was no law other than the banning of French occupation forces, both in Spain and Portugal.
Portuguese legislation made no difference between a folding blade (navalha) or a non-folding blade, knife or dagger.
There were laws in the 18th century that forbade knives with triangular blades, so called "diamantadas" or "diamond" blades. The penalties were severe. Being a nobleman, he was applied ten years of exile to Angola. If not, it was ten years in the galleys, which amounted to a very likely death penalty. Left-handed daggers were forbidden to any ordinary citizen and only used in combat zones of declared war. The sword could only be five spans long. Being larger than allowed by law was confiscated and heavily penalized both the bearer and the seller or manufacturer.
The "hand palm length navalha story" is an unregulated popular myth.
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