1940: Portugal

The year 1940 was a memorable one for Portugal, chiefly because of Lisbon's role as first-ranking wartime port of entry into and escape from the entire continent of Europe. Owing to the country's unique geographic and political position—serving as a continental window on the Atlantic, and enjoying the friendship both of Axis powers and Allies—Portugal hummed with the lively transit of diplomats, newspaper correspondents, war refugees, business men, and all sorts of supplies. The country suffered from wartime restrictions on its trade during the first half of 1940, when Great Britain was absorbing four-fifths of Portuguese exports; but after the military collapse of France, Portugal was able to trade freely with both groups of belligerents. Despite the loss of markets for its colonial products, and a rise of about 7 per cent in living costs during the year, at the end of 1940 Portugal was in an extraordinarily favorable situation in comparison with other European countries.

Foreign Relations.

Although in October 1939 Prime Minister Salazar had reaffirmed Portugal's fidelity to its 553-year-old alliance with Great Britain, the Government maintained during 1940 a rigid neutrality. The Portuguese controlled press printed an equal amount of news from the major contestants in the war, and carefully avoided editorial comment on controversial issues. In theaters, the people—said to be strongly pro-British—were forbidden to applaud newsreel references to either side. Italy's entry into the war intensified Portugal's determination to remain neutral, owing to the long tradition of friendship between the Italian and Portuguese nations, their close ties of race, language and religion, and their association in support of General Franco during the Spanish civil strife. On July 29, Portugal and Spain signed an additional protocol to their existing treaty of friendship and non-aggression, which had been concluded March 16, 1939. In this protocol the two governments bound themselves 'to consult each other on the best means of safeguarding, in so far as possible, their mutual interests, whenever events are anticipated or actually take place which by their nature may compromise the inviolability of their respective home territories, or may constitute a danger to the security or independence of either contracting party.' In view of Spain's tacit partnership in the Rome-Berlin Axis, the July 29 agreement was a significant step to insure Portugal against the dangers which would follow the possible extension of hostilities to the Iberian Peninsula. (See GIBRALTAR.) In July and August, the Portuguese Government dispatched infantry forces of 1,000 men each to Angola and Mozambique, to augment the garrisons of its African colonies, although its apparent failure to strengthen home defenses necessitated increasing reliance on its ability to court favor in both camps of European belligerents. (See also RELIGION: Roman Catholic Church.)

Centenary Commemoration.

On June 1 Portugal opened a six-months celebration of the 300th anniversary of its independence, and the 300th anniversary of its restoration after sixty years of Spanish rule. The ceremonies were divided into three phases, honoring the medieval period of Portugal's history, the imperial period, and the Bragança period. (The Bragança dynasty reigned in Portugal until the establishment of the Republic in 1910.) Three great construction projects—all near Lisbon—were undertaken in connection with the commemorative celebrations: (1) A large Olympic Stadium at Cruz Quebrada; (2) an International Air Port at Portala; and (3) a deluxe coast-road from Lisbon to Estoril and Cascais.