740.00112A European War 1939/27671: Telegram

The Secretary of State to the Minister in Portugal ( Fish )

787. Your 667, March 26.

1. We do not understand why you base your objection to controlling pump sales to enemy nationals in Angola upon the grounds of [Page 592] Portugal’s position as a neutral. The principal reason for the existence of the war trade lists is to trammel so far as possible the adverse business elements in neutral countries, though, of course, practical enforcement difficulties or other special limitations upon the full implementation of our war trade list policy may be present in any given neutral area due to local conditions. Whatever may be the situation in Portugal proper regarding pump sales to listed nationals (and in the absence of an adequate reply to its A–52, October 15,91 the Department is unaware of what the precise situation in Portugal may be) it would not seem to have a necessary bearing upon the extent of the control to be exercised in Angola.

In Angola the war trade lists contain comparatively few names, though in relation to motor vehicle statistics the list appears to be adequate to control the distribution of oil products. It is the view of the London Embassy that the Angola list is largely restricted to enemy-controlled sisal, coffee and other plantations and enemy affiliated commercial firms. The Loanda Consulate believes that the distribution of petroleum products can be controlled through agents of the oil companies. The Department, under these circumstances, intends to make allocations of petroleum products to Angola dependent upon assurances that enemy nationals will not have access to such products either in the form of pump sales or sales in larger volume except in so far as is necessary (1) to permit the production and development and transportation to shipping points of strategic raw materials, such as sisal, rubber and vegetable oils required by the United Nations in the war effort, or (2) to maintain facilities for the transshipment through Angola from the Congo of strategic raw materials needed by the United Nations in the war effort, or (3) to maintain in operation those enterprises which are essential to local economy.

2. As part of this plan BEW desires Department to attach vice consuls to Consulates at Loanda and Lourengo Marques as petroleum observers for Angola and Mozambique. They would be empowered to clear all oil importations from sources controlled by United Nations as well as watch stocks and possible diversions to enemy. Please obtain agreement Portuguese Government to authorize them carry out their duties.

3. The Legation’s despatch 749, December 23, (as referred to in the Legation’s telegram 15, January 5)92 is not regarded as responsive [Page 593] to Department’s A–52, October 15. You are requested to submit promptly the report called for in Department’s A–52.

Repeated to London.

Hull
  1. Not printed; it called for a report on extent to which American oil companies in Portugal were making sales of petroleum products to Proclaimed List nationals (740.00112a E.W. 1939/16055).
  2. Neither printed.