711.53/41c
The Department of State to the British Embassy 76
Aide-Mémoire
The Department has received the Aide-Mémoire of the British Embassy, dated May 16, and given it the most careful consideration. The proposal therein made calls, in the view of the Department, for a review of the attitude which this Government and the British Government should take in regard to neutral trade with the enemy, particularly [Page 112] in items of strategic importance, in the hope that through a frank interchange of views the attitudes of the two Governments may be concerted.
At the time of the negotiations with the Spanish Government it will be recalled this Government maintained the position that the object of our policy, for the attainment of which we should exhaust every possibility, was the complete cessation of wolfram exports from Spain to Germany. It was pointed out that any compromise of this attitude would have far-reaching effects in the negotiations which the two Governments then had under way or under contemplation with other neutrals. The British Government pressed strongly the dangers which might accrue to important British supply interests in Spain from extreme insistence upon the maintenance of the wolfram embargo. Finally, this Government at the urgent request of the British Government agreed to the compromise settlement.
As our negotiations with the neutrals have progressed, our prediction as to the unfortunate consequences which would flow from a compromise of our demands on Spain have unhappily proved to be entirely correct. In Turkey77 and Switzerland,78 in Sweden79 and Portugal we are met by the argument that demands made upon those Governments are more stringent than the settlement which we were willing to accept with Spain. We particularly directed to the attention of the British Government the likelihood of this argument being made by Portugal, upon whose wolfram exports Germany is now almost entirely dependent. Those arguments have now been made and the Aide-Mémoire under consideration advocates a compromise of our demands upon that country.
In the opinion of the Department—and in this all other interested Departments and agencies of this Government fully concur—a compromise of our demands upon Portugal would be a major mistake and is not required by any exigencies of the situation. Neither the British Government nor this Government has any important supply interest in Portugal. Portugal is entirely dependent for petroleum products and other important items upon imports controlled by the two Governments. Portugal is bound by the most solemn treaty obligations to the British Government. Portugal cannot seriously believe that its security is imperilled by acquiescence in the demands now made upon her.
On the other hand, a cessation of wolfram exports from Portugal to Germany would constitute a most serious blow to German war production [Page 113] and a contribution of great value which diplomatic effort could contribute to the prosecution of the war. Only considerations of the utmost importance would warrant any departure from the pursuit of this objective. This Government is unable to see the existence of any such considerations. The Department, therefore, believes that to weaken or compromise our demands upon Portugal would cause a loss of values of inestimable importance in the prosecution of the war, both abroad and at home, and that such action should not and could not be defended.
The Department accordingly urges that the instructions from the British Government to the British Ambassador at Lisbon make clear that only a complete cessation of wolfram shipments to Germany from Portugal will satisfy the British Government. In such a firm position this Government is willing to join wholeheartedly and will be glad appropriately to reaffirm the American Ambassador’s instructions in this sense.