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Portugal hostile considered essential to capture and hold Mozambique railway and port of Beira. Governments of Union of South Africa and Southern Rhodesia are being requested to consider this project. Union Government also being asked to consider project of taking over rail- way from Transvaal frontier to Lorenco Marques and that port. Considered above action would also result in cessation of resistance in Mozambique. Operations against Angola railway not under contemplation in circum- stances envisaged.

(To 4 and 5 only) 4. Railways through Mozambique and Angola are of considerable enconomic importance to Northern and Southern Rhodesia, particularly Mozambique railway With Portugal hostile, considered essential to capture and hold Mozambique railway and port of Beira. Owing to difficulties of country and distances involved, action against railway through Angola not recommended. His Majesty's Governmemt in United Kingdom would be most grateful if

To 4 only His Majesty's Government in Union of South Africa To 5 only) your Ministers

To 4 and 5 only)

would consider as soon as possible the preparation of plans for the capture of the Mozambique railway and the port of Beira in the circumstances envisaged. If these proposals are approved, it is suggested that conversations should be arranged as soon as possible between the Union and Southern Rhodesian Governments and their military advisers, in order that a detailed operational plan may be prepared. According to our information, Portuguese garrison in Mozambique comprises 1. infantry companies, 2 native machine-gun companies, 1 light battery (motorised), 1 squadron of cavalry (motorised), and some 500 police. In addition, 2 native companies maintained in Mozambique companies territory. Union Government would probably also consider it necessary to take over control of railway from Transvaal frontier to Lorenco Marques, and that port, the event of war with Portugal. In this event it is suggested that Union Government should also consider preparation of plans of this project.

in

(To all) 5. Japanese have been offered concessions in Portuguese Timor (Malay Archipelago). Japanese descent on Timor, nominally to protect their concessions, possible if Portugal entered war. Although such action would be prejudicial to us, we consider no action should be taken in Timor in anticipation of Japanese action as to do so might precipitate Japanese aggression.

6. Government of India are being asked to take over Portuguese possessions in India in event of war with Portugal.

Continued occupation of Macao (on Canton

River) by Portuguese is of no importance.

8. Improvement of our Intelligence arrangements

in Portugal is in hand.

(To 4, 5 only) Similar telegram containing suggestion in first part of paragraph 4 is also being sent to

Southern Rhodesia No. 126

United Kingdom High Commissioner, Pretoria No. 199.

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