Portugal was officially neutral in World War Two, but did its behaviour show that it was neutral? Here, Stefan Morrone considers this by looking at the Portuguese leader’s beliefs, the long-standing treaty between Portugal and Britain, the wolfram question, and the Azores.
A British Royal Air Force plane in the Portuguese Azores during World War II.
When discussing the roles played by various countries in conflicts throughout history, the term “neutrality” implies impartiality and a lack of bias towards any belligerent side. However, as we have seen with other countries during the Second World War, declaring neutrality was often much more complex than simply avoiding taking sides.
When the Second World War broke out in the autumn of 1939, Portugal was one of various European countries to declare its neutrality. Portugal was in quite a delicate position at the opening of the conflict, meaning that a declaration of neutrality was in the country’s best interests - at least for the moment. This declaration of neutrality would allow Portugal to preserve her own foreign policy and take advantage of various opportunities that the war provided to prosper.
Rise of the Estado Novo
Antonio Salazar was born in 1899 in Beira Alto, Portugal. Salazar’s parents sent him to a seminary for his education when he was 9 years old. However, after spending several years at the seminary, he decided he wanted to further his education, and entered Portugal’s most prestigious university, the University of Coimbra, in 1910 at the age of 21. He graduated four years later with a degree in economics and his performance merited an appointment at the university as a professor, where he became known for his speeches and articles on political economics. His popularity continued to grow, and he was elected to Portugal’s national legislature in 1921. [1]
In 1926 there was a coup d’état and the leaders offered Salazar the position of finance minister, which he accepted with the stipulation that he receive almost total control of the government. This was declined and he resigned five days later to return to teaching. Two years later, in 1928, the leader of the government again asked Salazar to become the finance minister and met the stipulations that Salazar had initially demanded.
As finance minister, he quickly managed to balance the country’s budget and brought financial success to the Portuguese government. Salazar’s position strengthened further when he became the president of Portugal’s ruling Council of Ministries in 1932.
A year later, he formally created the Estado Novo, or “New State”, a corporatist state with a fascist orientation. Although it has often been compared with the contemporary regimes of Italy, Spain, and Germany, Salazar’s Portugal differed through its comparatively moderate use of state-sponsored violence. Salazar was a Catholic traditionalist who strongly believed in using economic modernisation to defend Portugal’s Catholic and rural values.
Conflicted Loyalties
The outbreak of the Second World War put Portugal in a tenuous position. Since signing the Treaty of Windsor in 1386, Portugal had always maintained close ties with Britain. However, during this era, Portugal also maintained close ties with its large neighbour, Francoist Spain. Salazar had backed Franco’s regime during the Spanish Civil War, and this, combined with his government’s Fascist qualities, earned him the respect of Hitler and Mussolini. [2]
Upon the outbreak of the Second World War in September 1939, Salazar issued a declaration of Portugal’s neutrality. He also declared that Portugal’s old treaty of alliance with England did not automatically mean that Portugal had to go to war in support of the Allies. This was discussed with Britain beforehand, and the British indicated that they did not need Portuguese assistance. [3]
Salazar’s reasoning for neutrality was that he feared invasions by Germany or a potential German-allied Spain if the country entered the war; German troops were stationed roughly 260 km from the Portuguese borders. As a result, Salazar decided to stay out of the conflict, but decided he could use it to his country’s economic advantage, maintaining open trade with members of both the Allied and Axis camp throughout the war years. However, when considering the question of Portugal’s neutrality, it is important to examine two key factors that came into play with Portugal’s relationships with belligerent countries.
The Wolfram Question
One of the biggest issues with Portuguese neutrality was the prevalence of the mineral wolfram in the country. [4] This powerful resource quickly became Portugal’s ticket to maintaining neutrality throughout the conflict.
Wolfram is a major source of tungsten, a metal used in steel hardening processes used in producing important items such as machine tools, armor-piercing shells, tank and airplane parts, and engine parts. Outside Portugal, the Allied powers did not want Germany to have access to this incredibly valuable resource, while inside, Salazar viewed it as a matter of Portugal’s sovereignty since the mineral belonged to the country. He decided to satisfy both parties, Allied and Axis, preferring not to alienate either camp to maintain Portugal’s neutrality.
However, the so-called “Wolfram War” seriously damaged Portugal’s claim to neutrality, since it was a definite expression of pro-Axis sentiment within the country - the Germans received approximately 75% of Portugal’s wolfram exports, while Britain received only 25%, despite the alliance and loud protestations. [5] Britain did enjoy one advantage in this situation - due to their long-standing relationship, Britain was able to pay in credit, while Germany had to pay cash. This allowed Britain to obtain a valuable resource while being short on cash.
On the other hand, Portugal also allowed the Axis powers to incur sizable debts in their clearing agreements, even advancing them significant amounts of private and government contracts. In addition, Portuguese merchants were an important source of vital smuggled commodities such as diamonds and platinum to the Axis.
Portugal negotiated secret agreements with Germany to send an average of over 2,000 metric tons of wolfram annually between 1941 and mid-1944, which was roughly 60 percent of Germany's minimum industrial requirement. [6] The intense competition for wolfram boosted the Portuguese economy and generated huge profits for banks and businesses. Portugal profited so much from the sale of wolfram trade that it continued to do so despite threats from the Allies.
In January 1944, the Allies tried to pressure Portugal to embargo all wolfram sales, but this was resisted - Portugal defended its right as a neutral country to sell to anyone they saw fit, while also fearing a German attack should they stop. The wolfram trade debacle finally ended on the eve of the D-Day invasion in June 1944, when Portugal imposed a total embargo on shipments to both sides of the war after the Allies threatened heavy economic sanctions.
Despite this, Portugal was able to profit massively from the wolfram trade and gain a major economic boost.
The Azores
In addition to wolfram, Portugal had another resource coveted by both the Allied and Axis powers: the strategically important Azores islands. Located in the middle of the Atlantic Ocean, the islands made a perfect base for launching offensive operations. For the Allies, possession of the Azores was important for protecting the convoy supply routes of the central Atlantic. Failing to control them left a gap in defenses for convoys in which they might get caught in pitched battles between Allied and Axis ships. In addition, controlling the Azores would prove vital to the Allies’ potential plan of an invasion of Europe, since they could be used as an air base to provide cover for the invading armies. [7]
For the Axis, the Azores meant an ideal U-boat base plus air bases needed for Projekt Amerika, a Luftwaffe bombing campaign of the East Coast of the US. An Azores base in the middle of the Atlantic would greatly improve the operational efficiency of German U-boats by cutting out the time needed to return to ports in France to refuel, meaning they could spend much more time out in the field. [7]
Again, Salazar was torn - should he give up control of the Azores to the Allies, he feared a German invasion of Portugal through Spain. Despite Salazar’s refusal to give up the islands, Churchill and Roosevelt jointly decided to occupy the islands in 1943 but agreed that it would have to be done delicately. Churchill favored a diplomatic approach, and invoked the Treaty of Windsor, which Salazar approved. One airfield was quickly constructed in secret, with the British entering first, followed by the Americans, with plans for more airfields to follow. However, Salazar stipulated that while the British were welcome under the Treaty, the Americans were not - and if pressed by the Germans, he could not use the excuse of diplomatic necessity, as with the British. Salazar threatened to forcefully resist the landing of American troops in the islands but reneged at the eleventh hour.
The Azores airfields were used to transfer bombers to the Pacific theatre and played a key role in winning the war in the Atlantic for the Allies. It allowed more planes to launch than from any aircraft carrier group, punched a hole in German U-boat supply lines and put Allied convoy lines within reach of land-based bomber protection, allowing for crucial shipments of provisions to reach their destinations unscathed.
Conclusion
The question of whether Portugal was truly neutral is a complex one. A nation can only be considered truly neutral if it exhibits no biases to other belligerent nations. Examining Portugal’s relationships with the Axis and Allied powers, Portugal in fact did express bias, although in different ways to each of the warring sides. It sold a far higher percentage of the valuable wolfram mineral to the Axis powers, making a vital contribution to their war effort, yet also contributed to the Axis’ defeat by allowing air bases to be constructed on the Azores islands and fell back on its traditional relationship to Britain.
Ultimately, Portugal can be considered neutral during the Second World War. In fitting with the traditional definition of neutrality, Portugal did not clearly favor a particular side in the conflict, instead preferring to play both sides against each other, seeking to benefit itself economically above all. Portugal’s neutrality remained useful to both sides throughout the war, and thus, by rendering different services to both sides, Salazar was able to effectively buy his country’s ability to remain out of the Second World War.
What do you think of Portugal’s role in World War Two? Let us know below.
Now, you can read about whether Spain was neutral or a Nazi ally in World War Two here.
Sources
[1] Watkins, Thayer. Antonio Salazar De Oliveira of Portugal and His Estado Novo, www.sjsu.edu/faculty/watkins/salazar.htm.
[2] Gayer, Gary. “Political Neutrality in World War 2.” California Polytechnic State University, 2013.
[3] Leite, Joaquim da Costa. "Neutrality by Agreement: Portugal and the British Alliance in World War II." American University International Law Review 14, no. 1 (1998): 185-199. Accessed February 26,2021
[4] Wheeler, Douglas L. “The Price of Neutrality: Portugal, the Wolfram Question, and World War II.” Source: Luso-Brazilian Review, Vol. 23, No. 1 (Summer, 1986) Accessed February 26 2021 https://www.jstor.org/stable/3513391?seq=1
[5] Packard, Jerrold Michael, "The European neutrals in World War II" (1989). Dissertations and Theses. Paper 3984. Accessed February 26. 2021 https://doi.org/10.15760/etd.5866
[6] RG 84: Portugal.” National Archives and Records Administration, National Archives and Records Administration. Accessed February 26, 2020 www.archives.gov/research/holocaust/finding-aid/civilian/rg-84-portugal.html.
[7] Gnam, Carl. “Portugal during WW2: Covering the Azores Gap.” Warfare History Network, 3 Dec. 2020. Accessed February 26, 2021 warfarehistorynetwork.com/2018/01/25/covering-the-azores-gap-in-world-war-ii/
Bibliography
Gayer, Gary. “Political Neutrality in World War 2.” California Polytechnic State University, 2013.
Gnam, Carl. “Portugal during WW2: Covering the Azores Gap.” Warfare History Network, 3 Dec. 2020, warfarehistorynetwork.com/2018/01/25/covering-the-azores-gap-in-world-war-ii/.
Leite, Joaquim da Costa. "Neutrality by Agreement: Portugal and the British Alliance in World War II." American University International Law Review 14, no. 1 (1998): 185-199.
Packard, Jerrold Michael, "The European neutrals in World War II" (1989). Dissertations and Theses. Paper 3984. https://doi.org/10.15760/etd.5866
“RG 84: Portugal.” National Archives and Records Administration, National Archives and Records Administration, www.archives.gov/research/holocaust/finding-aid/civilian/rg-84-portugal.html.
Watkins, Thayer. Antonio Salazar De Oliveira of Portugal and His Estado Novo, www.sjsu.edu/faculty/watkins/salazar.htm.
Wheeler, Douglas L. “The Price of Neutrality: Portugal, the Wolfram Question, and World War II.” Source: Luso-Brazilian Review, Vol. 23, No. 1 (Summer, 1986)
