811.34553B/7–1946: Telegram

The Ambassador in Portugal (Baruch) to the Secretary of State

top secret

633. For Hickerson. Mathias telephoned yesterday to say Salazar had instructed him to start discussions. We naturally assumed he [Page 1007] would talk on the political long term proposal in view of what Salazar had told Russell and me last Tuesday.57 On the contrary, however, Mathias announced that the long term discussions must await the return of the Minister of War; that he, Mathias, would discuss interpretation of the May 31 [30] agreement. Immediately said that was not what Salazar had said. He undertook to clarify the question with Salazar and to find out at our insistent request whether long term discussions would have to await the return of the Minister of War scheduled for August 8.

The conversation alternated back and forth between the long term and May 31 agreements, three points developed: (1) Mathias will be strictest possible in interpretation of May 31 Agreement and considers it supersedes 1944 Agreement on questions of materials and supplies; (2) Portuguese are apparently thinking of long term agreement on basis of commitment to make fields available in event of and at time of war; it was made clear to Mathias that we would not consider giving political guarantees in exchange for any such deal; (3) Mathias stated specifically that Portugal would not permit “occupation” by foreign troops in time of peace. I immediately caught him up on this statement and demanded to know whether that was his Govt’s considered position in relation to our proposal as presented by Mr. Russell making clear at the same time we were not proposing “occupation” but joint use and operation. Mathias immediately backed away by trying to explain that he was merely expressing his personal views and that he was not authorized to discuss long term arrangement.

Kuter and Culbertson feel that in order to head off misunderstanding and quibbling Culbertson should now send Mathias a detailed informal statement of our requirements. The statement will outline the maximum requirements and is in preparation now.

In telephone conversation this afternoon Mathias explained that Minister of War would while in Azores discuss technical problems arising from May 31 Agreement, Mathias would handle interpretation of Agreement, Minister of War would have to be consulted re long term agreement, not that he would negotiate it; that other Cabinet members would have to be consulted. Looks like negotiations may drag.

Mathias also said Portuguese had given story to British. Russell said he would let me know what to give British. Are we authorized to keep British fully informed currently?

Sent Dept 633; repeated Paris as 98 for Delsec.

Baruch
  1. July 16.