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Changes in the Strategic Situation.
4.
Shortly after we had reported on this question,
war with Germany started, and it became clear that among
the important strategic consequences of the German-Soviet
Pact was a lessening of the danger of hostility to us from
Germany's anti-communistic associates Italy, Spain and
Japan.
500
The continued neutrality of Italy and Spain has had
a direct bearing on the strategic position of Portugal in
relieving her of potential threats to her security.
Moreover, we have felt free to move the greater part of
our naval forces from the Far East and the editerranean
to other theatres where the German threat to our sea
communications is more severe.
6.
The broad change in the strategic position since
before the war, in so far as it relates to the role of
Portugal, may be said to be:-
(a) Portugal as a belligerent on our side would not
in present eircumstances be so serious a potential commitment for us as was previously feared.
(b) Our position at sea is more satisfactory than
could have been anticipated from pre-war appreciation.
Strategic Value of Portuguese Territory.
7.
It appears advisable, however, to re-examine, in
the light of the present position, the strategic value to
us of Portuguese territory in war with Germany.
8.
Lisbon is the main
The coast of Portugal flanks the main trade routes
from Gibraltar and the Central Atlantic to the United Kingdom
on which trade is now running in convoy.
Portuguese naval base and could be used as a fuelling base
for our forces engaged in trade protection.
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