![]() In the agreement, Germany agreed to provide Spain with armaments at cost. In February 1943, Spain signed a secret agreement with Germany to replace the failed agreement. The agreement soon fell apart with both sides blaming the other for the failure. In December 1942, under pressure from the Nazis, Spain signed a new trade agreement with Germany with more explicit quotas. In an effort to better compete with the Nazis, the Allies set up their own dummy corporate front to purchase the ore and in 1942 purchased roughly half of the ore. In June, Spain set a minimum price of $16,380 per ton, which included a $4,546 export tax. Production had increased to nearly 2000 tons and the price had risen from $75 a ton to $16,800. ![]() The program caused mines' output to nearly double production from the previous year. Starting early in 1942, England and the US started a unified program to buy up as much of the ore as possible. England had only managed to purchase 32 tons. In 1941, the Nazis acquired almost all of the wolfram ore produced. By 1941, Germany had developed most of Spain’s wolfram mines and controlled the largest producer through SOFINDUS. The open market provided an edge to the Allies with their better access to hard currency. Unlike Portugal, which had a quota system, Spain relied on an open market for wolfram. However, the real competition in trade with Spain was for wolfram ore. In May 1943, due to the smuggling of materials into Spain for the Nazis, the US started a program to buy up the sources of these materials in South America The agreement was renewed every six months throughout the war. Efforts to achieve this policy began in March 1940, by Britain when it signed a six month agreement to provide Spain with certain materials it needed, such as petroleum products and fertilizer, in return for iron ore, other minerals, and citrus fruit. Finally, by conducting trade in materials needed by the Spanish economy, the Allies sought to lessen the influence of Germany on Spain. Secondly, by purchasing vital materials from Spain, the Allies could deny the Nazis a source for these materials. The first objective was to obtain needed goods that were not readily available elsewhere. The Allied blockade was effective in eliminating bulk items but small items, such as industrial diamonds or platinum, which serves as a catalyst in the production of nitrates and sulfuric acid, made up the bulk of the smuggling trade.Īllied trade with Spain had three main objectives. Spanish flagged ships were used to smuggle goods from South America to the Nazis. ![]() However, wolfram was the most vital as Spain was one of two suppliers of this ore to Germany. The Nazis also acquired zinc, lead, mercury, fluorspar, celestite, mica, and amlygonite from Spain. Spain was Germany's only other supplier of wolframite. agreed to Portuguese participation in the campaign to liberate Timor from the Japanese On November 28, 1944, the agreement was signed. Construction was delayed until and agreement was reached on a wide range of supplies and services. also began negotiations to construct an air base in the Azores. At the same time a German U-boat seized a Portuguese vessel, increasing the anti-German sentiment inside Portugal. By June 1946, the Allies estimated that the Nazis had cloaked about $2 million dollars in hotels, cinemas, etc. The Germans immediately began to cloak their mining interests in Portugal by selling them and buying up other businesses. On June 5, 1944, the Allies pressed Portugal to cease wolfram shipments to Germany. decided to use economic sanctions to induce Portugal to cut off the Nazi’s supply of wolfram. So, eventually the Allies took action again.īy April 1944, the U.S. At the same time, Portugal completed a new agreement with Nazi Germany.īut look at the totals being talked about - 2,800 tons per annum! The Allies refused any price reductions and Portugal refused to increase the Allies export licenses. Portugal asked for price reductions in ammonium sulfate, petroleum products, and other materials from the Allies. In 1943, the Allies tried to negotiate a new wolfram agreement. In turn, Germany was to supply Portugal with coal, steel, and fertilizer, which Portugal needed and which the Allies could not supply. The pact allowed the Nazis export licenses for up to 2,800 tons of wolfram. In January 1942, Portugal concluded a secret trade pact with Germany. The output of Portugal's second largest mine was owned by France and the output was tied up in legation throughout 1941. England owned the largest mine, while Germany owned two mid size concerns and several smaller mines. The system allowed each side to export ore from their own mines and a fixed percentage of the output from independent mines. To maintain its neutrality, Portugal set up a strict export quota system in 1942.
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