File No. 763.72112A/1300
The Minister in Portugal ( Birch) to the Secretary of State
[Received June 6, 6.15 a.m.]
384. Department’s telegram 252, April 26. It is very difficult to get any information concerning the status of enemy firms in Portugal and the progress made by the Portuguese authorities in liquidating enemy interest therein. This is due partly to the irregular manner in which many of these liquidations were undoubtedly effected under the previous administration and to the fact that the new officials do not seem to be sufficiently familiar with the matter. It appears that a very large number of the liquidations effected were fictitious. The usual practise was for a clerk or bookkeeper in the enemy firm to officially buy the firm and carry on the trade but, as in no case would the said clerk have the necessary [Page 1029] capital, the transaction was merely a blind. A certain number of firms have, no doubt, ceased to exist, but even in these cases it is possible that they are merely dormant until after the war. From British sources I get a list of 24 such firms which are supposed to have had their businesses completely liquidated and have therefore been removed from the statutory list. I have informally taken up the matter with the Foreign Office and have urged the advisability of promptly liquidating all enemy interest. The British Minister, in accordance with instructions from his Government, has done the same. A full report will be made as soon as the data is gathered.