Portugal always did have some closer ties to the colonies, I imagine even more so here.

I still wonder if we might see Britain and France absorb some of the more viable colonies rather than cutting everything loose. France may try to hang onto Gabon, thanks to low population and massive oil reserves, maybe Malta votes to join the UK as it nearly happened in OTL, or the Brits decide to try and hang onto more valuable bits like Singapore or Hong Kong.
 
The Federation of Mali might also stick around due to the threat of Portuguese presence on the continent and much better contained communism TTL.
 

Lusitania

Donor
Portugal always did have some closer ties to the colonies, I imagine even more so here.

I still wonder if we might see Britain and France absorb some of the more viable colonies rather than cutting everything loose. France may try to hang onto Gabon, thanks to low population and massive oil reserves, maybe Malta votes to join the UK as it nearly happened in OTL, or the Brits decide to try and hang onto more valuable bits like Singapore or Hong Kong.

Several of these are valid and maybe a more sympathetic British parliament and other actions might result in some of these coming to fruition. Although the Federation has to survive, no it must prosper and confound the sceptics then its influence and power will be raised and other countries will look upon it as an inspiration (or in anger). The other option is that there just has to exist enough shit in world that some of the more venerable colonies such as Singapore consider it more prudent to stay part of Britain than risk war or attack by neighbors.

As for France's relationship with Gabon and rest of French Africa it will be discussed later.

The Federation of Mali might also stick around due to the threat of Portuguese presence on the continent and much better contained communism TTL.

An interesting notion and one worthy of contemplation. We see how it evolves for things sometimes have a way of transpiring at the times you least expect it.
 
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1940s - The Post War Years (1945 - 1949) - Politics (2 of 2)

Lusitania

Donor
1940 – 1949 (cont.)

The Post War Years 1945 – 1949 (cont.)

Politics (2 of 2)

Changing World

UK
In June 1946 President Semedo visited Britain and the Portuguese delegation met with not only the new British Prime Minister, Clement Richard Attlee, but also visited former PM Winston Churchill. During the visit, Portugal and UK discussed the Portuguese-UK post war relationship, Portuguese military and industrial needs and of course the most pressing item on the British agenda the huge 2.5-billion-dollar debt it owed Portugal.[1] The UK at first attempted to negotiate partial payment of the debt with the sale of surplus British military hardware but Portugal declined instead wanting to discuss more pressing needs that being industrial investment and technology transfers. Portugal was still interested in upgrading its military but knew that military hardware was easy to acquire while technology and industrial investment was more difficult. Portugal offered to suspend all interest and payments on the debt and to write off the debt in return for the UK government facilitating Portuguese industrialization. The Portuguese also offered to continue providing Britain with food, oil and other supplies for period of five years at reduced prices. As part of the agreement, Portugal ordered military hardware for its navy and army paying cash for new hardware and only using the British debt to buy existing hardware (with all retrofits paid in cash by the Portuguese). Included in the agreement was the ability for Portugal to buy technology transfer from the British companies as part of the purchase. In 1947, this included the authorization for the Portuguese to invest in Bristol Aerospace Company for the development of long range airplane.[2] The agreement also authorized the export of many British manufactured goods to Portugal but just as important for the Portuguese, the ability of British industry to build new plants in Portugal to satisfy growing Portuguese demand.[3]

USA
In 1945 as part of the Istanbul Conference, Germany was required to pay the Allies (US, UK, USSR, and France) as well as several other countries war reparations and Germany’s industrial might be reduced to 1930s level. German factories, patents, copyrights and trademarks as well as military and civilian assets were to be confiscated. Russia demanded as part of the war reparations the transfer of 1/3 of German’s industries and factories to USSR as well as transfer of food and raw materials. Portugal was not included in the war reparations plan. In 1946 the US and other allies occupying forces began reviewing German records and began questioning the amount trade that Portugal had conducted with Nazi Germany and how Germany had paid for it. While the Allies had known of the “limited” official Portuguese – Nazi Germany trade the records the Germans kept suggested that trade between Nazi Germany and Portugal had been much greater than they estimated and had continued for much longer than they thought. Questions were also being asked on how the Germans had paid for the purchases. At end of war Germany’s debt to Portugal stood at 369 million dollars but more important for the allies was the amount of gold that Portugal had received, most of which had been looted from other countries and individuals. When the US demanded that the Portuguese government provide information on the amount of gold it had received the Portuguese government ignored the request. The US government responded by freezing all Portuguese assets in US and restricting trade with Portugal.

In 1947 with Britain’s help Portugal and the US came to an agreement regarding the return of the Nazi gold that Portugal had received during the war. The agreement brokered by UK closed the case, in the agreement Portugal turned over 150 tons of gold and in return Portugal received 1.5 billion dollars in war reparations, part of agreement was the writing off Germany’s debt to Portugal.[4]

The “illicit” Portuguese trade was not the only critical piece of information that the Allies discovered. The secret negotiations to join the Axis and the extensive technology transfers also became known. Attempts by the US specifically to find out the extent of Portuguese duplicity were stymied by the timely destruction of certain German records and refusal of the Portuguese to cooperate with the American investigation. In 1949 the closest the Americans got to the Portuguese records was destroyed when the ship transporting the American spies returning to US blew up 100 kilometers from the island of Bermuda. Rumors of Portuguese submarine in the vicinity were never confirmed and questioning of the three survivors seemed to collaborate the story of engine malfunction leading to explosion. Future US Navy salvage operations failed to find any evidence of the Portuguese plans or the American operatives aboard the ship.

Even without concrete evidence the US Truman government felt betrayed by all the Portuguese duplicity and the US designated Portugal as an untrustworthy nation and it only the outbreak of the Iron Curtain Crises and the subsequent need to establish a strong European response to the Communist threat which by end of decade had become the primary threat to the US and Western democracies that relations between Portugal and US did not deteriorate further.

While Portugal escaped public condemnation and trade embargo, the US government began a policy that continued into the 1960s of limiting American technology and industrial material to be being exported to Portugal.

Government Cabinet
During the 2nd part of 1940s with the war over the Portuguese government cabinet concentrated on modernizing and developing the country.

gXkx4Hv.png

Census
During the 1940s the Portuguese population grew by an unprecedented 60%, this was due to a variety of reasons:

  • Strong European immigration to Portugal and its African overseas provinces;
  • The conquest of several islands in East Indies which increased the population of Portuguese East Indies by 8-fold;
  • Government programs to combat starvation in both Metropolitan Portugal and all overseas provinces;
  • Health initiatives to treat infant mortality, cholera, and other diseases including mandatory immunization program;
Both Angola and Mozambique witnessed the largest natural population growth as agricultural and economic development in both overseas provinces increased, and they became central to the Portuguese government’s economic strategy.

9Irob3j.png

__________________________________________________________________________________

[1] iOTL UK debt to Portugal was over 350 million dollars.

[2] The Portuguese – UK debt accord was set to expire at end of 1969 and kept secret by both the Portuguese and British government. The UK classified it as top secret and only in 1996 was the agreement unclassified and released by British government. From 1946 to 1970 many people in UK and the US government criticized British decision to sell advanced weapons to Portugal as well as permitting many British companies to setup factories in Portugal.

[3] Many cash strapped companies lacked the capital to establish Portuguese companies and all the capital came from Portuguese investors and businessmen. British patents, industrial knowledge and administration knowhow became their capital and normally accounted for up to half the worth of the Portuguese company. In some cases, such as Austin Motor Company their UK operations either closed or merged with other British companies as demand in UK waned in post war UK and these companies only continued as separate entities in Portugal. In some cases, UK employees of these closed or merged companies migrated to Portugal to continue working for the relocating companies.

[4] For detailed information about the amount of gold paid to Portugal during war see 1940 – 1949 Section Economy, Finance and Commerce. iOTL Portugal was also targeted by the US and its was Britain who smoothed things over, and Portugal repaid a token of the gold it had received in return for financial compensation. iTTL the amount of gold that Portugal had received and paid back was substantial larger, but Portugal received something more valuable to its long-term development industrial knowledge and patents.

[5] João Semedo was Minister of Defense (1922 – 1936) and Prime Minister (1936 – 1945)

[6] Dr. Antonio Rapazote was born in 1910 and graduated with honors from University of Coimbra in 1932. He practiced law for few years but in 1937 was recruited to work in the Prime Minister’s office. In 1940 he was promoted to Deputy Prime Minister.

[7] The only remaining Portuguese possession not shown is Ajuda (fort in Benin) which had less than 25 inhabitants.

[8] India and Macao population included refugees living in those territories in 1949. India had 402,000 and Macau 485,000 refugees. Over the next few years 80% of the Indian refugees were re-settled in other parts of Portugal while the rest returned to other Indian countries after the Indian Civil War. The Chinese refugees also either moved to other parts of Portugal or Nationalist China.

[9] The percentage increase for East Indies only represented the increase for Portuguese Timor. Percentages for India and Macau did not reflect refugees.

The Politics section provides us a glimpse of the major government political issues also facing the government at the same time as it was reforming the country and introducing the Federation concept and that was dealing its two major allies. The British were not in a good position at the end of the war and like iOTL where it owed huge amount of money all around the world here the much more economically advanced Portuguese had provided it with much more resources and food along with other things the British needed. Leaving it at end of war with a diplomatic advantage that the Portuguese used to their advantage. The Portuguese offer at end of war was a huge help to the government finances along with reduced cost of food and resources. It was the Portuguese government guarantee that British firms would be the primary beneficiaries of any Portuguese growth and as seen later the Portuguese - British economies were joined at the hip for the next decade or so. As for the Americans here the Portuguese government had its work cut out for it. Luckily several factors were in Portugal's side, Lack of hard evidence, British on the Portuguese side, and lastly the Iron Curtain Crises showing that Communism was a great threat.

We also provide a new Prime Minister as we get a Retirement earlier than iOTL and Portuguese government training program started in the 1930s continued to turn out many more junior and senior cabinet ministers who continued to govern the country.

Lastly we have the impressive growth both in Metropolitan and Ultramar provinces.

Questions/ Comments?


Please return Aug 4 as we post Portuguese Armed Forces.
 
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Will Portugal relink it's friendship/connection with Germany? Also how does Portugal's assistance change/affect US-UK relations, will the British be as dependent on the US? Is France taking cues and wanting in, esp. with her independent streak vis-a-vis America?

Earlier and Stronger EEC?
 
It’s very satisfying to see Britain treating Portugal as an equal there.

Also how is portugal supposed to be able to keep East Indies Island in the long term? Why weren’t they given back to the Dutch? Surely Indonesia - or whatever country gets indépendance - will want them back. Also which islands exactly are we talking about?
 

Lusitania

Donor
Friendship ended never existed with the USA. Now the UK is still my best friend.

The USA after WW2 did not really have any friends it considered equal and even the countries it considered friends were expected to follow US lead. If any country had any doubt about that all they needed to look at was the Suez War in which the US let its displeasure be known to it most trusted and long established “friends” (Britain and France).

As for the Portuguese they found themselves in a precarious situation, not quite an enemy or a pariah state but one the Americans were not happy with. Not much different than iotl except we a lot more developed, and we were a bit more naughty during the war that iotl.

We will discuss a little more about foreign relation later in the TL.

Will Portugal relink it's friendship/connection with Germany? Also how does Portugal's assistance change/affect US-UK relations, will the British be as dependent on the US? Is France taking cues and wanting in, esp. with her independent streak vis-a-vis America?

Earlier and Stronger EEC?

Several good questions so let’s try to deal with each one.

Germany - while larger (whole country verses east and west) they still danced to American tune for all of rest of 1940s and well into the 1950s. So while trade with Portugal /federation did grow (especially after Portugal part of Marshal plan) the special 1930s relationship was gone. In its place is a new one as we will discuss in the emigration section Portugal became home to hundred of thousands of Germans snd German disporia.

Britain - Yes Britain was less dependent on the US but only slight less. The US was so huge and it economy so large that it distorted everyone’s economy. Although the developed Portuguese economy did provide a lifeline to the British economy and many British companies were able to survive with a much larger market especially one in an major expansion mode move into the Portuguese market. In time the expansion into the Portuguese market was followed by movement of manufacturing to the federation. As for government finances they were about 20% better and rationing was less severe maybe 50% as bad as iotl.

Portuguese - British relationship and British government advocating on behalf of Portugal was viewed with annoyance by some in the US. British actually did a great job convincing the Americans that Portuguese-British relationship would mean the British had great influence and the Portuguese would follow British lead in decolonization process. The announcement of the formation of federation in 1949 was met with disbelief in London and shock in Washington. It was the first major indication Portugal was going in different direction.

France - it was paralyzed by the dysfunctional 4th republic while it was fighting a war in French Indochina. It was lost on how to proceed in new world. While France economic recovery it was politically paralyzed. It looked at the Portuguese model with both wonder and horror.
 
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First of all, awesome TL! It's always great to see how much the world would change if a relatively minor nation like Portugal finally got a break and was able to show everyone its full potential.

I really enjoy how you're setting up the US as the upcoming antagonist to the Portuguese Federation but still keeping everyone's motives within the realm of realism. America is perfectly justified in their annoyance towards Portugal from their POV: Here's a nation that gave many valuable resources to the Nazi's and indirectly benefited from their looting while joining the allies in the last minute to seemingly avoid all consequences - I'd be upset myself. Of course, the truth is a little more complicated, but its not like the USA really cares at this points.

My main question for now is the situation in Africa: Based on the current rate of amazing progress, how much of an impact will a fully industrialized Angola and Mozambique have on the rest of Africa? How much will it stand out from the other, more economically sound African nations like South Africa or Egypt? Are their any plans to make arrangements with the soon-to-be-created Zambia and Zimbabwe to finally make the Pink Map? (Probably not possible but a man can dream right? :p)
 

Lusitania

Donor
It’s very satisfying to see Britain treating Portugal as an equal there.

Also how is portugal supposed to be able to keep East Indies Island in the long term? Why weren’t they given back to the Dutch? Surely Indonesia - or whatever country gets indépendance - will want them back. Also which islands exactly are we talking about?

There are two major civil / independence wars in Asia during the late 1940s and early 1950s that affected portugal/federation. That being the India and the islands formerly known as Dutch East Indies. They will be covered in detail in the world section.

The main events such as these two and the iron curtain crises are covered in detail in the world section and as time goes on become more crucial. I had organized each decade to have the world section at end but think starting in 1950s will post the world first and then show federation which is divided into different sections as previous decades.

Now the island in question were covered in post 162. A recap the Portuguese at end of WW2 decided to do bit of opportunist “occupation” with Portuguese liberating rest of Timor then also liberated Flores. They then expanded their control by expelling all Japanese from surrounding small islands. But the Japanese refused to surrender so the Portuguese liberated Sumbawa.

As for what the Portuguese intention was they were not sure. Just like Macau they hoped to take advantage of the post war situation and expand their holdings. The resulting wars provided the Portuguese with opportunities they had not anticipated and took full advantage.

Yes the Dutch wanted it back but soon had their hands full fighting multiple forces to do more than protest. As for liberation forces we let you see later.
 
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Lusitania

Donor
First of all, awesome TL! It's always great to see how much the world would change if a relatively minor nation like Portugal finally got a break and was able to show everyone its full potential.Sure

Thank you, I wanted to share this with Paulo who provided me with the inspiration and also helped with the preliminary setup. I think that if Portugal had a more progressive but equally effective figure in front National Union during estado novo the Portuguese and colonies would turned out differently and more advanced. This is my version of that.

I really enjoy how you're setting up the US as the upcoming antagonist to the Portuguese Federation but still keeping everyone's motives within the realm of realism. America is perfectly justified in their annoyance towards Portugal from their POV: Here's a nation that gave many valuable resources to the Nazi's and indirectly benefited from their looting while joining the allies in the last minute to seemingly avoid all consequences - I'd be upset myself. Of course, the truth is a little more complicated, but its not like the USA really cares at this points.

Yes in both iotl and ittl US was annoyed with any country that in its view was acting in way that went contrary to its view of how world should react. The list of countries it black mailed or even put at disadvantage was huge. It was not only countries like Portugal, but also Argentina. In the 1950s when Britain and France decided to punish Egypt was when the US claws really came out against its long established Friends. So here it not hard to portrait that for readers to really see. In the 1950s Portuguese-American relationship continues the sand after several world events continue to go against American wishes abs Portuguese are seen as “involved”. Btw it not matter that US involved only that Portugal involved in way that increases Portuguese interested to gain US disapproval.

My main question for now is the situation in Africa: Based on the current rate of amazing progress, how much of an impact will a fully industrialized Angola and Mozambique have on the rest of Africa? How much will it stand out from the other, more economically sound African nations like South Africa or Egypt? Are their any plans to make arrangements with the soon-to-be-created Zambia and Zimbabwe to finally make the Pink Map? (Probably not possible but a man can dream right? :p)
Portuguese Africa development will be highlighted in future posts but during the war with the availability of greater Portuguese educated professionals plus immigrants it was able to move beyond resource extraction and agriculture to processing and manufacturing. After war it really takes off with Luanda being the primary industrial base on Atlantic side. While in Mozambique industry was more spread out. New industrial cities will be springing up all over.

As for reaction from rest of Africa, the best reactions we see are confusion and anger. Confusion from other regular colonies as both white colonials and blacks are at first intrigued and wondering how this will play out for continent but the announcement of the federation causes protests and alarms to both those who prefer the current hierarchy and order and those who dreams of independence.

South Africa we have whole section on their involvement and reaction. For while industrialization of Portuguese Africa greatly affects their economic interest, the biggest threat will be the creation of federation which goes completely contrary to the government apartheid movement.
 

Lusitania

Donor
oof are you actually FYROMing Indonesia?
Without spoiling the upcoming posts there are a “few” differences in the Indian subcontinent and Dutch East Indies independence movements. While both India and Indonesia do become independent they are just one of handful of countries that occupy the respective former colonial territory. More to follow.
 
1940s - The Post War Years (1945 - 1949) - Armed Forces

Lusitania

Donor
1940 – 1949 (cont.)

The Post War Years 1945 – 1949 (cont.)

Portuguese Armed Forces

At the end of war, the Americans and British began to decommission their armed forces and were desperate to sell their excess military hardware. Portugal on the other hand was still rebuilding and modernizing its forces and was in the market for new and refurbished military equipment.

Armed Forces Rearmament and Reorganization
In 1946 as part of the Portuguese – UK Accord the Portuguese turned to the British and purchased surplus and new military hardware becoming UK’s biggest military hardware customer in the late 1940s. Portugal purchased several surplus UK ships, new planes, new tanks, trucks and jeeps. All the planes were to be brand new and include kits for tropic operations, the ships had to be fully refurbished / upgraded before delivery. From 1947 and 1949 Portugal received the following:
  • The HMS Indefatigable (Implacable Class carrier) – refurbished;
  • 4 Battle Class destroyers (1943 Later Battle sub-class) – refurbished;
  • 2 Light Cruisers (Minotaur Class) – refurbished;
  • 160 Sea Fury, half for the FAP (Força Aérea Portuguesa) half for the NFAP (Naval FAP the Indefatigable air group) – new;
  • 40 Avro Lancaster (heavy bombers) – new;[1]
  • Support planes (20 planes for troop transports, medical evacuation and cargo) – new;
  • 300 Comet 1 (A34) tanks with option for 200 more – new;[2]
  • 1000 Austin K5 & AEC Matador Trucks (half refurbished and rest new);
  • 500 support vehicles including (armored command vehicles, universal carriers, jeeps, and military ambulances) – refurbished;
  • 250 Anti-aircraft guns (AF 3.7 & Bofors 40mm);
  • 200 Ordnance QF 17-pounder plus 500 trucks;
In 1946 as the Indonesia War of Independence continued the Portuguese transferred the 4th Infantry division from Mozambique to Portuguese East Indies, as well as additional frigates and support ships to protect the Portuguese controlled islands.

In 1947 Portugal moved the Alentejo Mechanized division to Angola and renamed it the Angolan Mechanized Division and Metropolitan Portugal was left with two American supplied Mechanized divisions.[3]

In 1947 after the declaration of Independence of India and the subsequent outbreak of the Indian Civil War, Portugal moved the Rapid Response Naval task group to the Indian Ocean. In 1948 Portugal moved the 3rd Infantry division from Angola to Portuguese India.

In 1949 as part of the Portuguese expansion into Morocco and Sahara the Portuguese military decided to increase its forces by four divisions (2 infantry, 1 mechanical and 1 armored).

National Arms Industrial Development
After the war the Portuguese had hoped that a new relationship with its European neighbors and USA would result in shared benefits and values, but it soon became apparent to the Portuguese that they could not count on anyone. Even the British for all their support still were hesitant on sharing everything and only the dire need of the country had forced them to sell the Portuguese the military hardware they agreed to in 1946. Therefore, the Portuguese government’s strategy to develop inhouse military arms industry started during the war was given full approval. Fortunately, the Portuguese had already established several companies that could meet Portuguese military needs.[4]

Both FBP and FMBP expanded their production of arms and munitions. With land and space at a premium in Metropolitan Portugal the two companies joined the growing number of Portuguese companies setting up secondary factories in Ultramar provinces namely Angola. FMBP continued to be the country’s primary gun manufacturer while FBP was the country main munitions manufacturer.

FMBP manufactured both rifles and personal arms for military and security forces both domestic and international. Two major markets for FMBP weapons was South America where it had established relationship with several governments and the two major conflicts in Asia: Indian Subcontinent conflict and Indonesia War of Independence.

Production stayed at same level as during war with both companies witnessing increased exports and higher domestic demand. In 1949 when the factories in Angola came online a major upgrade at the Metropolitan plans occurred. FMBP moved production of guns for the growing domestic military vehicles, tanks, ships and planes to Angola while its factory complex in Metropolitan Portugal was retooled for riffle and sidearm production. As for FBP it moved the manufacture of artillery, mortars and bombs to its huge factory in Angola. Its factory in Metropolitan Portugal was also retooled for production of munitions for variety of guns. The two companies ramped up their R&D looking both to Axis and Allied military innovations as starting point.

After the war the Portuguese designated the Arsenal do Alfeite in the Tagus Estuary and the Viana do Castelo Shipyard as the sole Portuguese military shipyards leaving the other shipyards in the country for civilian use. The Viana do Castelo shipyard became the country’s submarine manufacturing dock and during the 1940s undertook two major submarine projects. Portugal received over a dozen older German U-boats which Viana was tasked with refurbishing. In reality these older U-boats (damaged) received at end of war were scuttled, and the U-boats the Portuguese had scavenged and refurbished from damaged German U-boats during war were officially commissioned in their place. While this was happening much to the surprise of the world Viana developed the Orca class submarine based on the German U-boat class XXI Portugal had secretly received at end of War. In 1947 the Orca I prototype was built and in 1949 two Orca II prototype submarines were built and started undergoing sea trials. Meanwhile both Arsenal do Alfeite and the Viana do Castelo Shipyard were occupied refurbishing the Portuguese ships that in the late 1940s required full retrofit with many of the ships requiring upgraded engines, guns and electronics.

In 1945 the Portuguese military and government were trying to decide what to do Portuguese companies that had developed German technology, of special interest was CACC which had developed two German planes but by the standards of 1945 were already old. Concerns and doubts were expressed about its ability to develop or manufacture a modern plane and several members of the government specifically Minister of Finance thought the cost too high and Portugal would do better buying British planes. While these discussions were occurring, news of the Portuguese forces’ discovery in Waldsee reached Lisbon and just like the arrival of the German U-boat class XXI had changed Portuguese naval thinking so too was the capture of pair of Me-262s.[5]

Plans were then made to not only bring the planes to Portugal but to also ramp up CACC capabilities. In the summer of 1945 the Me-262s, the Ar 234 along with the Junkers Jumo 004 jet engines arrived in Portugal. Over the next six months the entire CACC and Mota-Engil teams along with the captured German technicians and engineers were moved deep into Angola to the town of Luso, which became the closed town (access in and out controlled by DGS). Work began reverse engineering on the Me-262 and the Ar 234, the Bachem Ba 349 along with the Junkers Jumo 004 jet engines. By the end of 1946 the Bachem Ba 349 was abandoned while progress was made on the planes and engine. During 1946 and 1947 over a hundred technician and engineer emigrants who had worked at Junkers, BMW and Arado in Germany arrived in Portugal and were directed to Luso. In 1948, the first complete prototypes were completed and the following year they began their first test flights.

In 1949, CACC began trials of the first Portuguese fighter and bomber; the CACC 200 jet fighter and CACC 300B bomber. The trials of the top-secret planes from 1949 – 1951 went off better than anticipated as the culmination of six years of research and work as well as extensive technology transfers paid off. The jet fighter and bomber were based on German technology of the Messerschmitt Me 262 Arado Ar 234 both planes were powered by Mota-Engil Jato 105 jet engine and armed with 4 × 20 mm (.79 in) Hispano Mk V cannon.

OGMA role as the air force and navy plane maintenance continued and the company doubled in size and increased its capabilities to handle many of the new planes arriving from Britain. Several of the company’s top technicians were sent to Britain where they learned from both the manufacturers and British forces technicians about the new planes (Sea Fury, Avro Lancaster and variety of new support planes) this was in addition to the existing Hurricanes MkI, BF-109, HE-111, Bristol Blenheim torpedo bombers, VLR B-24 and Portuguese built Ju 188 and the FW 190. In addition, it had to ramp up the manufacture of the Avro 626 and de Havilland Tiger Moth training aircraft for the expanded pilot training programs. In 1948 the Portuguese decided to upgrade their training aircraft and three different British aircraft were chosen: Percival Prentice as a basic trainer, the Balliol T.2 advanced trainer and the Bristol Buckmaster twin engine advanced trainer. The Portuguese army and navy put in a huge order for 100 Prentice, 50 Balliol T.2 and Sea Balliol T.21and 15 Bristol Buckmaster. In 1949 OGMA received license to manufacture both the Prentice and Balliol due to delivery issues from Percival and Boulton Paul Aircraft Ltd. By 1949 the company had maintenance and repair shops in every region of the country including Ultramar provinces.

BRAVIA continued its dual role of manufacturing Panzer IV and Sd.Kfz 250 and 251 halftracks to replace the worn-out units for the Angolan Mechanized Division. At same time it worked on improving both the tank and armored halftrack vehicles. In 1945 at end of war Portuguese transported a few German Panthers and Tiger Tanks from Germany. Over the next few years BRAVIA was able to reverse engineer the new tanks and work on their short comings. In 1948 BRAVIA unveiled the Rino tank which was powered by Mota-Engil’s new engine Mota IV capable of providing it with 610 hp, the tank’s armor was 60-147 and main gun was 7.5 cm Kwk 42 L/70. In 1949 the first prototypes were delivered to the army for testing. Work also progressed on modernizing the Sd.Kfz 250 and 251 halftracks, it was decided concentrate on a single halftrack armored car and the Besoiro I was developed in 1948 and the first prototypes delivered to the army for testing. BRAVIA like the rest of the Portuguese military industry benefitted immensely from the arrival of several hundred German technicians, engineers and designers who had worked at many of Germany’s industries that had been involved in the manufacture of the Panzer and subsequently Panthers/Tiger tanks as well as the Sd.Kfz halftrack armored vehicles.

EFACEC also grew after the war as demand for both civilian and military electronic components spurred construction of new factories. The arrival in Portugal of several hundred former Siemens employees boosted the company research and production capabilities. Meanwhile CUF also expanded their presence in the military industry with refurbishing of the Portuguese navy ships and submarines and it became the primary electrical contractor in the Orca submarine project.

UMM was witnessing its own manufacturing expansion. In 1947 a new plant was started in Lourenco Marques to manufacture trucks for both civilian and military use, while its plant in Setubal was also expanded to manufacture the all-terrain UAlter vehicles and UCAlter pickup vehicles for both civilian and military. The Coimbra plant was designated as the Chaimite armored car manufacturing plant. While FPF expanded its tire manufacturing plant in Bissau to support the increased military and domestic vehicle production.

[1] The order was later upgraded to the new Avro Lincoln (Lancaster follow-up). Portugal received 30 Lancaster and 30 Lincoln.

[2] In 1947 after Portugal received the first batch of 200 Comet 1 (A34) tanks the Centurion tank was introduced. Portugal changed its order and ordered an additional 200 Centurion tanks.

[3] The former Alentejo Mechanized division (Angola Mechanized Division) was the only one with German hardware and in 1946 Portuguese Manufacturer BRAVIA which had gained German technology during the war started manufacturing Panzer IV and Sd.kfz. From 1947 to 1948 it manufactured 120 Panzer IV and 250 Sd.kfz to replace the worn-out models. In 1949 after several years of reverse engineering and development BRAVIA started working on Portugal’s own tank and armored cars.

[4] In 1947 the Portuguese government sought out several gun manufacturers for civilian market from US Browning/Winchester company setup a factory in Bragança while from Germany Adolf Heym was one of the thousands of Germans who emigrated to Portugal and with support of Portuguese government and investors setup Heym AG in Castelo Branco. Both companies produced rifles and personal handguns for both domestic and export.

[5] In 1945, Portuguese forces in Southern Germany captured six Me-262s at airfield near the German city of Waldsee, they also found in a hanger in the airfield a nonfunctioning Arado Ar 234. The Portuguese hid two of the Me-262 and the Ar 234, while showing the French the remaining four Me-262s. The French took the Me-262s and shipped them back to France. Meanwhile the day before the Portuguese IV regiment captured 32 technicians and engineers along with five working models of the Bachem Ba 349 Natter south of the city trying to escape to Austria while the French Army captured the main Bachem Ba 349 Natter facility in Waldsee. Over the next week the Portuguese disassembled the planes and Ba 349 and smuggled them along with the captured technicians back to Portugal.

The Military section is packed with a lot of information of not only the growing Portuguese military strength but also the maturing of the nascent Portuguese military industry. iOTL the Portuguese only started developing a military industry in the 1960s due to military sanctions on the Portuguese. Here we have several 1930s projects and others from war years growing to become large military industrial companies. Here is a recap for those who forgot the name of the companies:

FBP and FMBP were companies that either were expanded before the war and have existed for many decades before. They are the primary gun and ammunition plus artillery manufacturers in the country. They both have plants on the Iberian Peninsula and Africa.
Naval Yards are located on the Iberian Peninsula and are responsible for all naval military ships both manufacturing and repairs. Naval yards (civilian) located through country both in Africa and Asia.

CACC - war plane manufacturer, started in 1940s to build German fighters and bombers now involved in trying to build country's first domestic planes.


OGMA - military plane maintenance company that also evolved into trainer plane manufacturer. Here at first licensed British planes.

BRAVIA - tank and armored track manufacturer, started like CACC during war to manufacture Panzer and halftracks. It too has evolved after the war and is developing Portuguese own version of these.

Mota-Eng - is country leading engine manufacturer be it for the CACC planes or BRACIA tanks and half track. Division of Portuguese conglomerate started during war.

EFACEC - started during war to manufacture electronic, Siemens former portuguese company that acquired many patents during war. Now independent domestic company. Also has consumer and industrial side of business.

CUF - Another electronic manufacturing company but more aligned with Naval ships and submarines.

UMM - Off road vehicle and military vehicle manufacturer started during war ad now expanding rapidly in both military and civilian production.

FPF - Portugal own Tyre manufacturer for both military and civilian vehicles.


Questions/ Comments?

Please return Aug 18 as we post 1st of Portuguese Economic sections.
 
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Self sufficiency in industry seems to be the Portuguese goal and they are in the process of finalizing it.

Is the government Facist?

How far would their businesses be able to penetrate into Brazil and would that open further doors than military hardware in South America? Certainly Britain and most other European states couldn't and still can't fully supply their former markets.
 
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A Great update as always Lusitania. I would, however, question the acquisition of the Indefatigable. This is after all one of Britains premier warships and only a couple of years old so unless the UK is planning a major withdrawl from its global power status, it will be needing these types of ships even if in the postwar climate of austerity it would be used mostly as a troop transport and training ship as it was IOTL. Also, the UK was always intent on refurbishing and modernising it armoured fleet carriers ever as late as 1954 when changes in startegy, economic difficulties and the total ineptitude shown in the rebuild efforts on the first ship ship to undergo said modernization, Victorious, forced the UK to finally abandon such efforts.

At 33,000 tons and requiring a crew of over 2,300 skilled sailors and airmen, I would also question if Portugal at this time could afford it at this time. The annual financial running costs alone of the ship and its airgroup are likely to consume a considerable chunck of the defense budget at a time when other modernization and expansion efforts, plus the ongong military operations hinted above are going to also be putting a heavy call on Portuguese resources. Also, a carrier of this size is a very complex weapons system and cannot be run by just anyone off the street but would require years of intense training on the thousands of skills that would be needed to properly operate, supply and maintain those systems.

A better option I think would be one of the Colossus or the new Majestic Light Fleet Carriers. These are much smaller and less complicated and require less manpower to run, but still are quite capable ships for this time. Certainly the French and Dutch Navies, which acquired one each, were very happy with them as it allowed them to project a credible naval power capability at a time when their own seapower was still recovering from the war The British Commonwealth countries of Canada and Australia (and eventually India) also were happy to acquire their own ships to boost their naval forces (and later several were passed to Argentia and Brazil as well).

I would suggest Portugal start with the leasing of one of the Colossus carriers (say Vengeance) as an interim solution with the understanding that it would eventually be replaced by a thoroughly modernised Majestic Class (ex Leviathin). Portugal would then be able to gain the experience and the skills to operate a carrier at a far lower cost than would likely be expended trying to manage the Indefatigable.

Note also that the naval component of the Sea Fury purchase should also be reduced to around 45 aircraft as the Vengeance would not be able to accomondate more that 30 of them at any one time (rest would be used for training from shore and as an attrition reserve).
 

Lusitania

Donor
Self sufficiency in industry seems to be the Portuguese goal and they are in the process of finalizing it.

Is the government Facist?

How far would their businesses be able to penetrate into Brazil and would that open further doors than military hardware in South America? Certainly Britain and most other European states couldn't and still can't fully supply their former markets.

Thanks for question and when we start getting deeper into the TL sometimes its important to take a moment a do s small recap of the current situation.

1920 Portuguese republic overthrown (iOTL was 1926)
1920s National Union creates the Estado Novo government. National Union is more than a party it is a movement with two guiding principles:
Integralism is an ideology according to which a nation is an organic unity. Integralism defends social differentiation and hierarchy with co-operation between social classes, transcending conflict between social and economic groups. It advocates trade unionism (or a guild system), corporatism, and organic political representation instead of ideological forms of representation.
Corporatism is the sociopolitical organization of a society by major interest groups, or corporate groups, such as agricultural, business, ethnic, labor, military, patronage, or scientific affiliations, on the basis of common interests. The Italian Fascist Corporatism was rejected by Salazar in favor of a Catholic Corporatism which placed limitations on the rights of business, workers and state.

Government is a Triumvirate with the Prime Minister, Finance Minister and Defense Minister. Salazar was Prime Minister till 1936 when he was killed in assassination. Government is not fascist but it is not democratic. The country has democratic elections but the political situation and power structure guarantee the National Union control. Much more progressive that iOTL National Union. The removal of Salazar allowed for economic development and in turn better standard of living and stronger country.

Fyi: Many people have lumped Salazar, Franco and Mussolini even Hitler as Fascist and the Portuguese have argued that the Estado Novo was not fascist per say like the others but a nationalist populist party. So that is what we have a right wing dictatorship that is committed to industrializing and developing Portugal and its colonies into a single country known as The Portuguese Federation.

As for selling products into Brazil and rest of South America those are very good points. For the Portuguese industrial development made great strides during the war but was held back by lack of technology and knowhow as well as capital. With the war over the Portuguese are hampering to ramp up production for both domestic and export. Both will be happening in quick succession. You are right about the plight of the British industry and Britain as a whole following the war. Which country can ramp up production the fastest and produce the goods demanded by consumers and companies will go on to succeed. IOTL this was the Americans, and while the Portuguese will not be able to displace the Americans they will be in good shape to carve themselves a part of the market in South America both in consumer goods, industrial goods as well as military equipment.

Hope this helps, more to come
 

Lusitania

Donor
How heavy is the Rhino?

The information the Portuguese government released for the first produced units the Rino II was 55 tons due to (heavier armor) which made it heavier Centurion which the Portuguese stopped buying and became competitor. It was powered Mota V 798hp engine. The design came more from the German heavy duty tanks. It only came on the market in mid 50s though several years after the British Centurion had been on the market for several years. The British at first believed the Portuguese to be copying the Centurion but other than the Portuguese version of the L7 gun which Portuguese did copy the rest was domestic designed (a lot of learning from German tanks and maybe a little influence from British tanks).

Self sufficiency in industry seems to be the Portuguese goal and they are in the process of finalizing it.

To continue the previous question regarding self sufficiency, it was not the Portuguese first plan after the war, but as time went by the Portuguese soon found themselves being stymied especially by the Americans who continually pressured British to delay and refuse Portuguese permissions to military hardware, technology and so forth. At times Portuguese companies had to "bribe" their way into certain companies such as British electronic companies. Investment in Ferranti a big British electronic and military company was prime example. The Portuguese demand for their technology would of doubled the company size especially during the 1940s and 1950s but pressure by Americans and reluctance by British even with the Portuguese-British accord meant that Portuguese payment and costs was almost double what could of been bought on open market. But the Portuguese wanted more than just buy it but to be able to build their own. So investments and payments that provided huge profit to the owners and government officials did slowly result in not only Ferranti sale but in time Ferranti Portugal subsidiary. By the late 1940s the Portuguese plan had become complete self sufficiency a goal unfortunately that the Portuguese never fully realized due to economics and simply too many things to manufacture themselves. In time though the British would become component suppliers and not actual product suppliers, this unfortunately did result in future problems as disruption to specific components could result in disruption to multiple companies or industries. A fact that was very evident during the 1968 - 1972 period.
 
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