811.20 Defense (M) Portugal/1532: Telegram
The Minister in Portugal (Norweb) to the Secretary of State
[Received 2:55 p.m.]
1701. In order to avoid repetition it is suggested the Department request British Embassy to show it Lisbon’s telegrams to Washington numbers Pussy 79, 80 and 81 and which Embassy here has already indicated Department may wish to see. We are in general agreement with the views set forth in those telegrams and in particular believe that the proposal to resume negotiations for a calendar year supply purchase agreement is a good one. In addition to the arguments presented in the British Embassy’s Pussy 79 to Washington an agreement on this basis would enable the Portuguese to obtain June 30th carry-overs which would otherwise be lost to them.
I understand that the British Ambassador has suggested to London that he be authorized to inform Salazar that the latter’s proposals are unsatisfactory with respect to the 100 tons of wolfram due Germany under last year’s agreement and also that the application of the wolfram export embargo should be made immediately without waiting for the conclusion of a new supply purchase agreement. If Salazar accepts Campbell has suggested that he should be informed we will submit supply purchase proposals within a week which will be at least no less favorable as regards the items as yet not submitted to the Portuguese than those which prevailed under the old agreement and also that we would provide additional transportation assistance. I believe that in the ensuing negotiations good use might be made of the aluminum and the locomotives which the Department has indicated might be available to the Portuguese. It should also be borne in mind that we may probably require some additional leeway to meet Portuguese demands for the replacement of German supplies.
Sent Department, repeated to London as 264, to Madrid by courier.