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.
History of Portugal
Portugal was officially neutral in World War II, but in practice Salazar collaborated with the British and sold them rubber and tungsten. In late 1943, he allowed the Allies to establish air bases in the Azores to fight German U-boats. Moreover, Salazar helped Spain avoid German control. However, as Tungsten was a major product of Portugal, it was also sold to Germany until June 1944, when the threat of a German attack on Portugal was minimal. Salazar worked to regain control of East Timor after the Japanese had seized it. Also, he admitted several thousand Jewish refugees during the war. Lisbon, maintaining air connections with Britain and the U.S., became a hotbed of spies of several war parties and served as the base for the International Red Cross in its distribution of relief supplies to POWs.