853M.77/29: Telegram

The Consul General at Loanda, Angola ( Linnell ) to the Secretary of State

26. Interview with Minister Colonies yesterday he stated:

He was most willing that railroad be used by United States for any purpose except the shipment of military material, see this office’s No. 5, paragraph 5, and even if such things as military uniforms were shipped but labeled anything, airplane engines labeled simply engines, et cetera, no question should be Asked.

However, he was most emphatic that everything done in connection with such use of railway must be in accordance with existing Portuguese laws and regulations. Therefore all goods sent through Lobito must be listed and all charges provided for in present laws must be paid. Packages shipped by the United States would probably not be examined but the customs authorities must retain the right to examine them if it is deemed necessary.

Any business to be done in Lobito in connection with such shipments must be carried on by firms now existing in Lobito or by a new firm set up for the purpose which must conform in all respects with Portuguese laws applicable thereto. Therefore, no persons except employees of such firms could be permitted to deal with these shipments Lobito (presumably employment of Americans by such company to assist in handling these shipments could be arranged but their visas would have to be obtained in regular way).

No representatives our Departments or firms will be permitted to supervise in Angola the distribution of any goods. The goods Asked for by the Government will be distributed by Government agencies and these must be trusted. As to goods for private firms except possibly auto tires and medicines whose distribution are supervised or carried out by Government bureaus, no supervision of distribution will be permitted in Angola.

Any agreement as to railway rates, et cetera, must be made directly with the railway company. Also any use of storage tanks at Lobito must be arranged with Carbonang, see this office’s No. 5 paragraphs 16 et seq. If additional tanks needed to be erected this would have to be done by Carbonang or by new company similarly organized under Portuguese laws. The Minister thought it preferable that tank cars be supplied from the United States for use on railway and either sold to railway or hauling fees paid.

He said it was expected that this railway would be taken over by Portuguese interests very soon. It is noted that his cousin is Managing Director of railway.

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To summarize: The Minister certainly desires that the United States shall use this railway and certainly desires to obtain supplies for it and for Government use but is determined that transshipment shall be under the terms and conditions applicable to others. He intimated clearly that such concessions as were suggested particularly supervision of any kind would constitute infringement of Portuguese sovereignty.

He plans to sail for Lisbon December 12 and said he would like to hear further from us in meantime. Instructions are requested as to further representations to be made and whether I should obtain from him at this time a detailed list of articles he wishes to obtain from United States of America.

Linnell