811.20 Defense (M) Portugal/146: Telegram
The Secretary of State to the Minister in Portugal (Fish)
1127. Your nos. 1040, 1046, 105110 and 1058 of August 13, 14 and 15.
1. Jointly with a British Embassy representative we talked again with Bianchi11 this afternoon recounting fully the most recent turn in our wolfram negotiations. Although Portuguese position is obviously [Page 225] disturbing and might connote some serious new element, discussion was carried on on the assumption that this was not so.
2. Bianchi was informed that it is our impression that an unintended misunderstanding had arisen. We further informed him that our best conjecture as to the sources of that misunderstanding was that the letter that you and the British had sent to Fernandez, text of which is given in your 1040 of August 13, was taken as an attempt on the part of ourselves and the British to inject into the agreement an undertaking by the Portuguese not to grant further mining concessions to the Germans. It would appear from your 1051 of August 15 that this was the real cause of the misunderstanding. In that connection the Portuguese Government is correct in its surmise that its position on this point was accepted by us.
3. It was suggested to Bianchi that he assure the Portuguese Government there was no intention of reintroducing this point or trying to gain any new point of substance. The intention was merely to state in some way or other what seems to us an essential definition of free wolfram, to wit, wolfram from all mines not specifically allowed to the British and ourselves or to the Germans. Bianchi was informed that this Government and the British Government were willing to consider any draft that carried out this definition that the Portuguese Government wished to put forward.
He was then informed further that though we could perceive no satisfactory reason for omitting the definition, and in fact its omission increased the chances of future misunderstanding, if the Portuguese absolutely refused to define free wolf ram, we would not insist upon the inclusion of a definition in any form. In such event, however, it was pointed out, that the fact would still remain that the American and British Governments would both sign the agreement with a definite understanding in their own minds of what is meant by free wolfram and any departure therefrom would naturally be regarded as a breach of the agreement. All of this it is believed Bianchi will transmit at once to his Government.
4. In the course of the discussion Bianchi repeatedly and in the most definite terms confirmed that there had always been an understanding that there were three types of wolfram, namely, that from the British mines, that from the German mines, and the free wolfram. Further in this connection, he confirmed his understanding that from the beginning the German mines were considered to be those which had produced 945 tons of wolfram during 1941.
5. Needless to say, the attitude displayed in the most recent Portuguese communication and comment created a most unpleasant effect. However, we do not think it wise to try to deal with it in the way suggested in the draft telegram of your British colleague as reported in your 1058 of August 15. This would seem to be impracticable, as [Page 226] would any attempt to challenge the Portuguese on the Anglo-Portuguese alliance.
6. Please consult your British colleague and, if he concurs, advise the Portuguese in the sense of paragraph 3 above and conclude the agreement accordingly.