Portugal during World War II
Upon the start of World War II in 1939, the Portuguese Government announced on 1 September that the 600-year-old Anglo-Portuguese Alliance remained intact, but that since the British did not seek Portuguese assistance, Portugal was free to remain neutral in the war and would do so. In an aide-mémoire of 5 September 1939, the British Government confirmed the understanding. As Hitler's occupation swept across Europe, neutral Portugal became one of the Continent's last escape routes. Portugal managed to remain neutral throughout the war despite extraordinary pressures from both sides, notably over the strategically located Azores islands and over the wolfram (tungsten) trade.
Portugal–Spain relations
Both states remained neutral in World War II, though Spain was more predisposed to Nazi Germany. Portugal also maintained a friendly relationship with Nazi Germany, supplying it with many key resources such as tungsten. Yet in virtue of the 14th century alliance Portugal had with England, it was also supplying Britain with all sorts of produce and whilst the Germans had to pay immediately, Britain had an open account for most of the war.