811.20 Defense (M) Portugal/1541: Telegram
The Ambassador in the United Kingdom (Winant) to the Secretary of State
[Received 10:30 p.m.]
4569. For Department and FEA. As part of Portuguese wolfram settlement, British agreed to commence supply purchase negotiations within a week. (Reference Lisbon’s 1701, June 3, and Pussy 79, 80 and 81.) Representatives of MEW, British Supply agencies and Embassy yesterday considered draft supply purchase program for calendar year 1944. It is proposed to supply balances remaining, after deducting authorizations since January 1, 1944, from quantities authorized for year ending June 1944, with adjustments necessitated by current supply situation. MEW is cabling British Embassy Washington proposed supply items with details of authorizations since January 1 and balances to be supplied, for your concurrence and approval of Combined Boards. MEW has analyzed 1943 authorizations to insure that there are none outstanding for which Portuguese could request automatic renewal in 1944. Problem of 1943 carryovers should therefore not arise. Since Combined Boards have already approved tentative allocations for first half 1944, British hope approval of whole program can be obtained without delay.
Question of surcharges has not been finally determined, but British are sympathetic to removing all surcharges from items in Portuguese program. Any Spanish charges of discrimination could be refuted by reference to Spaniards limitation on wolfram exports compared to Portugal’s complete prohibition. We should appreciate your views. Petroleum program and additional shipping assistance remain to be considered. Do you wish us to discuss with British supply of locomotives [Page 130] to Portugal? (Reference Department’s 2418, March 29 and Embassy’s 2740, April 45).
Following are comments of [on] important items:
Iron and steel products and chemicals and pharmaceuticals. It is hoped quantities can be increased to replace supplies from Germany. Ammonium sulphate and/or nitrate. British supply authorities understand there is no allocation for Peninsula, and that supplies will have to be diverted from United States and United Kingdom allocations. United Kingdom may be able to supply some nitrate.
Coal, coke and pitch. Doubtful whether United Kingdom will be able to supply more than 15,000 tons monthly of 360,000 tons scheduled. Endeavoring to obtain Sardinian coal at rate of 15,000 tons a month to make up United Kingdom deficit. Payment for Sardinian coal raise difficulties. Payment in escudos to be used by Italian Legation in Lisbon satisfactory to British Treasury for experimental shipments, but if regular monthly shipments forthcoming payment will have to be in dollars or sterling. Can you expedite Treasury decision on this point?
Cotton. 500 tons long staple Egyptian firm but Misup can give no assurances regarding short and medium types now in tighter supply.
See my immediately following telegram6 regarding proposed purchases in Portugal.