Department of State Atomic Energy Files
Memorandum by the Chairman of the Combined Development Trust ( Wilson ) to the Chairman of the Combined Policy Committee ( Marshall )
The Combined Development Trust since 1945 has had an active interest in certain uranium mines in Portugal. The original properties were acquired from the United Kingdom Commercial Corporation, who had purchased them mainly for pre-emptive reasons during the war. The principal working is at Urgeirica, the largest uranium mine in Portugal. During the intervening period, as the result of a limited program of field prospecting, other mines, concessions, and claims have been acquired.
These activities, which have been directed on behalf of the Trust by the U.K. Government, have been operated in the names of commercial companies registered in Portugal and elsewhere.
[Page 826]Up to the present, the Trust has considered that it would be inadvisable for them to attempt to develop these properties, or to undertake operations on a commercial scale. Accordingly, the work carried out so far has more or less been confined to the limits of the requirements of Portuguese law that mining properties shall be maintained in a satisfactory and workable state.
Recently the constituent members of the Trust have had under consideration the question whether, and if so to what extent, the previous “go-slow” policy which has been followed in Portugal should be modified, particularly in view of the technical information recently received as to the likely uranium reserves of these properties.
I now attach a paper which was considered by the Trust at its meeting on June 12, 1947.1 The U.K. Trustees inform us, however, that there has been a development since this paper was written, in regard to the approach which is being made to the Portuguese for assurances as to the issue of export licenses.
The British Embassy in Lisbon has advised, and the authorities in London have agreed, that such assurances to be worth much must come from Dr. Salazar himself.2 It has therefore been decided to approach him, rather than the official in the Ministry of Foreign Affairs with whom we were previously in touch. Secondly, on the advice of the British Embassy in Lisbon, it has been agreed that it would be unrealistic to expect the Portuguese to permit the removal from Portugal of material of considerable potential value, without some advantage to themselves. The British Chargé d’Affaires in Lisbon has therefore been authorized to tell Dr. Salazar that it is recognized that the Portuguese Government might wish to reserve for their own purpose a reasonable proportion of the material which is produced; also that it is recognized that the Portuguese Government cannot be asked to give an indeterminate assurance, and therefore an assurance covering an initial period of ten years is being suggested. If, as seems likely, Dr. Salazar asks for further advantage to his own country, the British Chargé d’Affaires, besides pointing out that the eventual advantage to Portugal of the work being done almost exclusively by the United States and United Kingdom, and the advantage to Portugal of the increased employment which the present program will bring, is authorized to listen sympathetically to any suggestion that an export tax or payment on output might be introduced, provided that this was kept within reasonable limits. If Dr. Salazar makes any proposal for Portuguese participation in the enterprise the British Chargé d’Affaires is to say that this does not come within the scope of his instructions and that he would have to refer the matter to London.
[Page 827]This action is being taken in Lisbon at once, and the initial reaction of Dr. Salazar will no doubt be known very shortly.
In the light of the information now available to them, including certain additional technical data, the Trust is prepared to adopt the program proposed, subject to the outcome of the approach to Dr. Salazar, on which the U.K. Trustees will keep their U.S. colleagues informed.
In the meantime, the Trust has asked me to inform the Combined Policy Committee of these developments.
Respectfully submitted,