811.20 Defense (M) Portugal/1534: Telegram

The Minister in Portugal (Norweb) to the Secretary of State

1725. The British Ambassador saw Salazar last evening and conveyed to him the British reply summarized in London’s 4468, June 3, 7 p.m. Salazar agreed unconditionally to the imposition of an immediate embargo on wolfram exports and a complete stoppage of wolfram operations to the extent that the Portuguese Government will buy up all existing stocks.

Salazar indicated that his decision was activated by information which he had just received to the effect that German acquisitions since March 1 had far exceeded his own estimate of their exports based on the supposed production of the German controlled mines. This caused him to discontinue his insistence on the delivery of an additional 100 tons. Salazar indicated his willingness that a joint press announcement on the subject should be issued on June 7 presumably in time to appear in the afternoon papers.

Please reaffirm urgently authority to conclude supply purchase negotiations immediately on basis set forth in paragraph 5 of Department’s 132, January 17, midnight, and Embassy’s 1701, June 3, 1 p.m.

This capitulation on Salazar’s part represents in our opinion a fundamental alteration in his views and it is to be hoped that the effects will continue to be far-reaching and cumulative.

Sent Department, repeated London as 268. To Madrid by courier.

Norweb