811.34553B/9–746: Telegram

The Ambassador in Portugal (Baruch) to the Secretary of State

top secret
priority

794. Hickerson from Culbertson. Kissner and Sintra signed entirely satisfactory memorandum at War Ministry today. The issue of the implementation of 30 May Agreement is not leveled off.

Following signature Kissner and Davidson73 discussed with War Minister the surplus property question. In their opinion War Minister was stunned by the price of the total and complicated nomenclature on the FLC forms. Next 2 hours were spent by Kissner and Davidson trying to build up fact that Portuguese are getting a bargain—soon were involved in question of what specific items are being left at Santa Maria under the clause “indispensable” to maintenance and operation of a civil airport in an isolated location. This remained uppermost in War Minister’s mind and he insisted on at least a week for study of the property lists and coordination with Portuguese civil aeronautics and public works people.

You will recall that British sold their Lagens surplus for 100,000 pounds and thus established a precedent in the Portuguese mind for a not too expensive deal.

I still feel that War Minister has stuck his neck way out in trying to be cooperative with us and opposing Portuguese Foreign Office. He is the one man who is going to make it possible for us to later develop a long standing operational arrangement which will approach our requirements. He has expressed a hope and expectation that he will see Kuter and Kissner in the spring. This means that he himself appreciates the value to Portugal and the US of what we have sought to obtain.

I would like to emphasize that I feel strongly that my original recommendation (Embtel 787, Sept 574), should be accepted. The Santa Maria surplus is a white elephant to the Army boys especially due imminence of date of Oct 2 and necessity of caretaking the stuff. It will be no mean headache to them if they cannot dispose of it in bulk and to War Dept if at this late date we again talk of shipping it out.

I frankly feel that arguments in Deptel 862, Sept 675 fail to appreciate the situation as it actually is here and the extent of the War Minister’s efforts to help us. I still would like to say that had we lost [Page 1021] to the Mathias school of thought, it would have been much more costly to us to maintain line of communications to Europe because I doubt whether ATC could have operated through Azores. I had lunch again today with Mathias who is still grumbling about the arrangement which Kissner has made with the War Minister.

I repeat my conviction that it will pay dividends later to assist now those in this Portuguese Govt who appreciate the advantages of cooperation with us and who are willing to help us get what we need.

I request that restudy be given to the recommendations contained Emtel 787 with which Kissner and Davidson agree.

Kissner is furnishing Davidson return air lift to Orly Field. [Culbertson.]

[Baruch]
  1. Colonel Davidson, Executive of the Office of Foreign Liquidation Commission.
  2. Not printed; the recommendation was that the surplus property in the Azores be turned over gratis to the Portuguese (811.34553B/9–546).
  3. Not printed; the Department argued that surplus property could be sold for substantial benefit and expressed belief that there was not sufficient justification for transferring surplus property gratis to Portuguese (811.34553B/9–546).