811.20 Defense (M) Portugal/1498: Telegram
The Secretary of State to the Minister in Portugal (Norweb)
1371. After a further review of your recent wolfram cables, particularly your 1429, May 12, Department and FEA wish to comment as follows: We observe that Salazar’s offer described in the first paragraph of your 1429 embraces the “current year.” Does this mean that his offer of a 900-ton export limitation to Germany extends retroactively to January 1, 1944?
If such is actually the case then these comments are relevant:
According to London’s 3064 of April 14,73 389 tons of wolfram were shipped from Portugal to the enemy from January 5, 1944, through March 13. Further, according to your 1251 of April 2673 legitimate wolfram exports from Portugal to Germany totalled 166.8 metric tons for the month of March and 63.4 tons “crossed the frontier April 18 for Germany.” It therefore appears that a total of at least 620 [Page 109] tons has been shipped from Portugal to Germany from the beginning of this year to April 18. We have no information as to whether any shipments were made subsequent to April 18. It may very well be, however, that the total 620 tons includes a repetition of some shipments in March.
Assuming the Salazar formula to extend from January 1 to December 31 and also calculating on the quarter basis as indicated by you, i.e., 225 tons per quarter for four quarters, then the Germans already have virtually received their allotment of wolfram for three quarters of this year. In other words there would be no further deliveries until September.
We also wish to comment on your 1455 of May 1474 which reports that production of German-owned mines totals 600 tons per annum. It therefore appears that Salazar’s estimate of German takings at 900 tons includes wolfram illegally absorbed by the enemy in their own mines.
We do not wish the foregoing to be interpreted as representing any weakening of our position. On the contrary if our assumptions are valid an agreement may not be as difficult as anticipated.
Your comments will be appreciated. You will recognize the importance of keeping the Department informed precisely as to the meaning of any proposals Salazar may make.