1940s - The Post War Years (1945 - 1949)
  • Lusitania

    Donor
    1940 – 1949 (cont.)

    Post War Years 1945 – 1949

    The Post War Years (1945 – 1949) saw a new world order emerge, the age of the superpowers (US and USSR). The old-world order (European Colonial) was in retreat, colonial independence gained ground amongst many of the colonies starting in Asia. The superpowers each tried to influence these newly independent countries.

    Both the USA and Soviet Union acted belligerently towards those they saw as obstacle to their vision of the world. The USA having achieved military victories against both Nazi Germany and Japan was by far the strongest and most economically developed country in the world. Its attitude towards 3rd world countries and European colonial countries was one that expected them to acknowledge the supremacy of both American military and economic might. While the Soviets were both in the midst of major rebuilding of their country devastated by German invasion but just as importantly attempting to install and promote communism throughout the world. Stuck in the middle of these two competing superpowers were the Portuguese.

    The Post War period unfortunate did not mean that the world was devoid of conflict, Asia being one of the primary theatres. While Europe also faced it owns threats, Portugal itself was unaffected but the conflicts in Asia presented the Portuguese with some very important opportunities to expand its influence and strengthen the country. So rather than sit idly it became an active participant in some of these situations.

    The Post War Portugal also took advantage of the economic and social upheaval in Europe to facilitate the migration of tens of thousands of new migrants with the skills it greatly needed. Lastly industrialization gained steam and the country witnessed greater growth than it had any time previously.

    Lastly the Portuguese grappled with a way to counter the growing American belligerence attitude to its ideas of a united country encompassing all its territories. The end result was a revolutionary idea of the Portuguese Federation. The challenge for the Portuguese could they make it a real encompassing Federation.

    At same time the Portuguese re-asserted themselves on the world stage, taking a more aggressive tone with its neighbor Spain resulting unfortunately in deteriorating political situation but culminating in a major shift in the future and direction of both countries. Portuguese development and growing political assertion also had a major impact in Europe, Africa, Asia and South America albeit in a gradual way.
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    The historical information on Portugal and the major events impacting the country are presented in the following sections:

    We now start the Post War Years and all that happened and affected the Portuguese and the world.
    Up next we start the 1940s - politics.


    Note: we are changing the order of the topics due to World events having a greater impact on Portugal. We moved it to be after Politics and Armed Forces. In the future we will be posting world events at the start of the decade.
     
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    1940s - The Post War Years (1945 - 1949) - Politics (1 of 2)
  • Lusitania

    Donor
    1940 – 1949 (cont.)

    The Post War Years 1945 – 1949 (cont.)


    Politics

    Following the end of the war there was a sense of relief in both Portugal and the government as the country felt a huge burden suddenly lifted from its shoulders. For Portugal had just come through a huge ordeal but no sooner had the war ended though then the government was forced to refocus on its next mission which was the continued development of the country and raising the standard of living of the country. Complicating things was the changing political situation of the world with the emergence of the new superpowers (USA and USSR). Both of whom were hostile to Portugal thus the government’s biggest challenge in the post war years was to navigate the new world order.

    Strategic Development Plans
    In the summer of 1945 with the war finally over in both Europe and Asia the Portuguese government developed its 4th “Strategic Development Plan” which called for development of national industries to meet growing national demand, infrastructure, housing, education and social services. The previous five years had seen huge strides being made in development and growth of many industries. Steel output had tripled but so had naval shipbuilding capacity, but Portuguese industrial output and economy had in many ways been held hostage due to structural defects in the Portuguese economy namely the lack of proper transportation system, lack of enough qualified trained workers and professionals. As the world adjusted to a post war environment it was even more important for Portugal to develop its industries and technologies to meet Portuguese demands. Price controls and rationing were relaxed but continued in order for Portugal to continue exporting raw materials, food, and oil to the world especially devastated Europe. Increasing production in many industries hardly was enough to meet growing domestic demand and export markets.

    Elections & Government Changes
    In 1946 with large immigration from war torn Europe to Portugal occurring the Portuguese government reformed the Elections Act. The 1946 Election Act amendment allowed for multi-party elections first time since the proclamation of new constitution, it instituted proportional representation in each constituency and created of an independent election registrar.[1] The main points of the Election Act reforms were:
    • The registrar was setup to manage the registration of political parties and candidate as well as to manage the elections. Membership in the registrar was based on the % of members in each constituency and nationally;
    • Any political party could register to contest the elections if they adhered to the following principles: i) national integrity, no party could be in favor of loss of any part of country ii) respect for private property, no party could advocate nationalization[2] iii)) no political party could be affiliated with foreign agents and or governments iv) all political parties had to adhere and follow all existing Portuguese laws;
    • All candidates had to also adhere to the same principles as registered party as well as not have a criminal record;
    • The proportional representation was based on each voter selecting three parties on the ballot. The party with most votes would receive 50% of members in the constituency while 2nd place got 30% and 3rd place got 20%. If party did not have enough candidates to meet the allocated percentage then the next placed party received the extra delegates;
    On 2 October 1945, the 76-year-old President Carmona announced that due to health reasons he would not seek re-election. He announced his support for Prime Minister João Semedo who ran unopposed and was elected President of Portugal with 92% support. On 1 November 1946 elections took place with five parties registered and allowed to participate in the election. The parties that participated in the election were the National Union Party, Agrarian Party, Monarchist Party, Lusitania National Party and the Portuguese Progressive Party. The National Union Party was the only party that provided a full slate of candidates in all the constituencies. The voting franchise continued to increase as nationalism process and literacy programs allowed the percentage of the population who could vote to reach 39%.

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    Following the election, the deputy Prime Minister Dr. Antonio Rapazote became Portugal’s new Prime Minster while João Simões continued as Defense Minister and Pedro Magalhães Mai remained as Minister of Finance forming the triumvirate. Reporting to the Triumvirate was the rest of cabinet.

    During the summer of 1946 Foreign Minister Mata met with governments of France, Britain and USA to discuss post war future. The meetings with French Foreign Minister Georges-Augustin Bidault and British Foreign Secretary Ernest Bevin were quite hospitable and friendly with both countries sharing Portuguese apprehensions of the changing world and the struggles all three countries were facing. Worrying all three governments was the American attitude towards all European colonial powers regarding the possession of these territories. When Minister Mata met with American Secretary of State James Byrnes Portugal’s worse fears came true. The American government was expecting all European countries to grant independence to their colonies and the American’s did not recognize Portuguese “Overseas Provinces” terminology. For as long as all the people there were not Portuguese citizens and enjoyed same rights as Portuguese in Portugal, they were colonials and as such deserved to be freed from Portuguese control. He stated that changing names and granting rights to part of the population would not cut it. Secretary of State finished off by stating the obvious that majority of the people in the colonies did not even speak Portuguese so how could the Portuguese expect the world to recognize them as Portuguese.

    During autumn of 1946 the Portuguese government struggled with a response to the American position. After All Saints Day (1st of November) holiday at a cabinet meeting Prime Minister Rapazote advocated a radical idea the creation of Portuguese Federation and granting all people born in the Portuguese territory Portuguese nationality. While the idea had been discussed a few times, it had not been given much credence. The other members of the cabinet slowly came around to the idea, but the biggest obstacle would be selling it to the general population. President João Semedo then suggested a “National Committee” to tour the country including the Ultramar provinces to gather the people’s opinions on the future of the country. The committee could then present a report advocating the creation of Portuguese Federation.

    On 10 December 1946, the Portuguese government announced the creation of national consultations on the future of country and overseas provinces. During 1947, the travelling committees met with representatives from all segments of the population in the major cities and towns in Metropolitan Portugal. In 1948, they travelled to each of the colonies (Ultramar provinces) to meet with people there. In an unprecedented move that angered some of the Europeans living in the colonies the committees invited representatives of local groups and tribes living in the colonies to speak and even arranged for interpreters for those who did not speak Portuguese. On 2 August 1949, the National Committee presented its recommendations:
    • Integration of all parts of country into single unified country;
    • Elimination of all colonies and their associated stigma;
    • Division of country into semi-autonomous regions (provinces) that would allow people to better manage their local affairs (autonomy);
    • Citizenship rights to all people born in all regions of country regardless of sex, skin color, ethnicity and religion;
    • Elections to the National Assembly and appointments the Corporative Chamber based on population to represent all parts of Portugal equally;
    • Removal of taxes and literacy as basis for voting;
    • Institute a National program to provide free compulsory Portuguese language courses to all people living in Portugal so that all people especially those under the age of 65 could learn to speak Portuguese and be registered to vote by 1954 election;
    [1] The 1946 Election Act reforms was the government’s answer to many internal and external complains regarding monopolistic political power enjoyed by National Union as well as the exclusion of opposition parties.

    [2] Strategic industries or resources could be nationalized by government if the private enterprise managing it was shown to not managing it in the best interest of the country. If the government did initiate nationalization fair market value had to be paid to the owners.

    [3] Several other parties such as the Communists Party and the Socialist Party were barred from registering and participating due to their inability to meet Election Act principles. Between half and the three quarters of the candidates from the other parties registered were also rejected for not meeting the principles and regulations.

    [4] 23 women were elected.

    The Politics section introduces two major cornerstones of Portuguese politics first the multi-party elections secondly the concept of the Portuguese Federation.

    The Multi-party system in place in Portugal and Federation since 1946 has resulted in several cases of the National Union party coming close to loosing an election but in each case the opposition has never presented a strong enough case for the majority of the population to abandon it. Two major components of the legislation that assisted the National Union party are the banning of foreign influenced political parties be they on right or left, secondly is the proportional representation. With these two components the National Union has limited people choice for decades. Did I mention that so many promising politicians have been convicted of such crimes as DIU, corruption and even solicitation thus making these individuals ineligible to attain office. All of them claimed innocent but isn't that what all criminals say?

    The Portuguese Federation (thanks US) was a clever political maneuver that sealed millions of people to Portugal. For they lost the ability to keep their own language, regardless if they were illiterate. The forced Portuguese language and literacy on these people was cruel. When news of the Portuguese mandatory language programs were announced the fierce critics of the Federation such as the Soviet Union and other Enlighted countries who had never subjected their people to such things criticized the Portuguese. They stated that the Portuguese was forcing their language down millions of people throats. Ironically that within 4 years the Portuguese had millions of people who until then could not communicate together suddenly given the ability to have a common language. This accomplishment was dully ignored and France and other western worlds who criticized Portuguese effort would of never behaved in such ways. For example we know that in France a multitude of dialects and languages exist, oh hold on sorry wrong example I believe they did a similar feat in the 19th century stamping out non traditional Parisian French.

    In addition to the language we now had the distinct pleasure of getting rid of the Portuguese colonies and introducing the world to tens of new provinces spread throughout 3 continents. To implement such a task was momentous and there was not a single country who thought they could pull it off. In London the odd were 50:1 that the Federation would not last 10 years. Imagine the poor bloke like the Portuguese Ambassador that put down 1,000 pounds at several different bookies on this bet. Rumors that several of them in 1955 offered to pay 25:1 to settle the bets abound after the first successful national elections. In end the Ambassador and others who put their money down were certainly feeling hard pressed as 1960 came around. Questions/ Comments?

    Please return July 21 as we leave post part 2 of the Post War politics.
     
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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.

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    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.

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    [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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    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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    1940s - The Post War Years (1945 - 1949) - World (1 of 3)
  • Lusitania

    Donor
    Due to some readers questions regarding several major events that happened after the war I decided it would be easier for readers if we were to publish the World Section next an then return to the other sections such as economics, Security and Health & Education. The World Section is divided into 3 sections (Europe, Middle East & Asia and South America with special emphasis on Brazil and Argentina).

    1940 – 1949 (cont.)

    The Post War Years 1945 – 1949 (cont.)

    World (1 of 3)

    Europe
    Europe in general became divided between the two major powers in the world; US and Soviet Union. The US provided financial assistance to the democratic governments recovering from the effects of the war.[1] The Soviets and its communist satellite states refused American assistance. Europeans suffered from starvation and unemployment while at same time many of the countries involved in the war were in ruins. The struggle between communism and rest of Europe came to the forefront in 1948 with the outbreak of what became known as the Iron Curtain Crises.

    Iron Curtain Crises
    The Iron Curtain Crises occurred between 1948 and 1949 as part of the greater Communist – Capitalist European War. In many ways, it was a continuation the issues left unresolved by WWII. The Soviets installed communist governments in the countries they occupied (Poland, Slovakia, Hungary, Romania and Bulgaria). In Greece a civil war between communists and Nationalist Greeks had been raging though the country since the end of WWII.

    In 1948 with USA and British help the Greek government finally defeated the communist rebels trying to overthrow it. Meanwhile Germany, Czech and Austria had been freed of Allied occupation and held their first elections. In Germany, the Communist party captured 25% of the votes in the Federal Election but were excluded from the government. While in state elections it fared much better capturing enough votes to form the government in the states of Mecklenburg and Sachsen in the east. The two communist state governments began a tug of war with the Federal German government in Berlin. In the Czech Republic, the Communist party under Klement Gottwald won the election and began implementing many projects such as nationalizing companies and demanded the removal of all the American troops in the country. When people’s rights began to be restricted and some newspapers closed, people demonstrated against the government in the streets. The demonstrators were attacked by government supporters while the police were told to not interfere. Many police officers and government workers joined in a general strike against the government. Feeling under siege Klement Gottwald formed an alliance with the communist leader of Slovakia, Alexander Dubček, leading to the infiltration of thousands of Slovaks into Czech Republic to support the communist government. Daily battles between government supporters and opposition members brought the capital and many cities to a standstill. On 5 June 1948, Czech President Edvard Benes declared a state of emergency and requested US and British troop assistance in establishing order. Communist armed supporters stormed the presidential palace and killed the president and most of the people inside. The US and British forces moved cautiously into the country without much opposition especially in the south and west. When they arrived in Prague they were attacked by communist forces. After six days of fighting the city was liberated but Klement Gottwald and his supporters fled east. It was at the city of Olomouc that the communists established a government and requested assistance from other communist neighboring countries.

    Communist “volunteers” from Hungary, Slovakia and Poland poured into Czech Republic to fight the “Imperialist invasion”. The Americans and British armed and trained Czech citizens also to fight against the communists. In Germany, the state governments of Mecklenburg and Sachsen received weapons from the Soviet Union via Poland and armed themselves for a class struggle. On 1st of July, communist Germans hiding in the Berlin soviet zone of occupation launched an attack on the German Federal government trying to topple it and proclaim a communist state.[2] The attackers made good progress at first but as they got closer to the temporary government sector they encountered significant German and Allied resistance. The German forces and police then moved to surround the communist insurgents. Within three hours the communists had been surrounded and were confined to three buildings half a kilometer from the soviet zone of occupation which had been blockaded.

    Allied and German forces also poured into the two German states Mecklenburg and Sachsen moving against state officials and communist supporters. News of the German military action and the attempted communist coup against the federal government split Germany. Some communists in other states supported the communist aims while others deplored any and all military action on both sides. For the next few months, parts of Germany were under siege with communist “volunteers” streaming into the communist states from Poland, meanwhile the fledging German military received thousands of war veterans. On 5th of October German forces captured the last area of Leipsic and four days later surrounded the last major city in Sachsen, Dresden. To the north in Mecklenburg, they captured Neubrandenburg on 20th of October cutting off direct contact to Poland for the communists and continued naval patrols limited the communists from getting supplies by sea.

    Missing in all the military action was Soviet involvement which had been absent although Moscow did make an official statement stating it would honor mutual defense treaties with Poland, Slovakia and Hungary if they were invaded. For the remainder of 1948 the areas under communist control in both Czech and Germany decreased but communist insurgent attacks throughout Europe including France, Italy and especially the affected countries continued with government, military buildings and personnel targeted. As Christmas approached Europeans worried of an expanding war wearily went about their everyday lives. On 25th of December, the communists struck at not only civilians for first time but in what people considered a sanctuary. The Christmas day massacre was actually 20 bombings and attacks on worshippers while they attended masses. Over 1,000 people were killed in the attacks in Germany, Netherlands, France, Italy and Czech along with over 8,000 injured. Once the shock of the attacks wore off the symbolism of the attacks and their location galvanized the Europeans like nothing before.

    General public attitude turned against the communists and those that did not renounce the attacks and their membership in the communists were renounced and police swooped down on them arresting them as members of a terror organization. Over the next six months in major sweeps all over western Europe thousands of communists were arrested and charged. Several major militant cells including bomb making equipment and explosives were found severely weakening the communist parties and more importantly robbing the insurgents fighting in Germany and Czech of moral and political support. In the communist countries news of the Christmas day attacks slowly spread and support for the governments reached all-time low. Worker productivity decreased, accidents and sabotage in many companies and government ministries spiked. In the Polish city of Gdansk major disruption by workers was met with severe police actions but here too police officers secretly helped the workers. By 3 April 1949 the revolt in Poland had spread to Warsaw and Krakow as well as other cities. By 15th of April the government was under siege and only the most diehard communists continued supporting the government. On 20th of April with the Polish communist government of Bolesław Bierut on the brink of collapse, Stalin ordered the Polish government to declare martial law and order the military to establish order within the country. The Polish army moved against the demonstrators in Warsaw and other Polish cities. While there were a few small battles between the most diehard anti-communists the Polish army prevailed and by 1 June 1949 the communists in Poland were back in control. Over 1 million Polish citizens fled the communist clampdown before the Polish government had been able to re-establish border controls.

    In Slovakia, Hungary and other Soviet Satellites there were also many revolts and demonstrations against the communists but nothing on the scale of Poland. Regardless the Communist governments clamped down on any perceived opposition. By beginning of summer 1949 over 500,000 people had fled Slovakia, Hungary and Bulgaria into neighboring democratic European countries. During the Iron Curtain Crises Josip Tito leader of Yugoslavia afraid the war would spread to Yugoslavia declared Yugoslavia’s independence from both Soviet and the western Allied alliance.

    The growing Soviet threat to Europe led several of Europe’s major powers along with USA and Canada to form the North Atlantic Treaty Organization on 4 May 1949. Portugal became one of 12 initial signatories. The other signatories were Belgium, Canada, Denmark, France, Iceland, Italy, Luxemburg, Norway, Czech, UK and USA.[3] In July Portugal participated in the Vienna Refugee conference to deal with the more than 1.5 million refugees from communist Europe.[4]

    UK
    The Labor party won the election of 1945 and began a program of nationalizing key industries. The British war debt put a heavy burden on the British and they were forced to request US assistance. The US assistance put pressure on the British Sterling resulting in its weakening and a spike in consumer goods prices and rationing of basic staples such as bread rationing from 1946 - 1948. In 1946, the Portuguese and UK agreement provided the UK economy with a huge boost as British companies received substantial orders for British manufactured goods for the growing Portuguese economy. In many cases the orders for the Portuguese market was the only thing keeping these British companies afloat as demand in Britain was very weak. In the late 40s several British politicians and citizens became concerned with many of the British companies dependent on Portuguese market establishing manufacturing plants in Portugal. In some cases, this was followed by the closure of their British plant and the migration of their workers to Portugal too.

    Spain
    The end of the war left Spain without any ideological friends in Europe as its relationship with Portugal soured. The Spanish economy continued to suffer especially when in comparison to Portugal. The reduction of the Portuguese subsidies hurt the Spanish economy while at the same time many Spanish businessmen demanded that the Spanish government renegotiate what they saw as the unfavorable Iberian Pact which they felt favored the Portuguese. In July 1945 when the Spanish demanded re-negotiation of the Iberian Pact, they were shocked by Portugal demands the elimination of all special “pricing” subsidies to Spain. When Spain refused the Portuguese abruptly cancelling all negotiations and gave notice of terminating the Iberian Pact instead.

    The end of the war finally provided the Portuguese with the ability to stop supporting the Spanish economy and let Spain find its own way. The Portuguese government wanted to establish a new Iberian Pact based on mutual respect, diplomatic and economic ties. That entailed eliminating all subsidies and support to Spain. The Portuguese offered to provide Spain with a 200 million loan, so it could invest in infrastructure and industry and kickstart its economy. The Spanish so long used to the Portuguese accommodating attitude were shocked by the new Portuguese attitude. Negotiations between Spain and Portugal in November 1945 broke down due to differences in attitudes and expectations between the two countries.

    Spanish inflation rose, fuel prices doubled, and the cost of many items increased sharply due to depreciating Spanish currency and stop in Portuguese subsidies. Worse the Spanish fiscal position worsened in 1946 when the Spanish debt to Portugal started accruing regular interest rates and regular payments were required. Spanish government was forced to cut expense and increase taxes to repay Portuguese debt. The Spanish government and newspapers responded to the economic and fiscal crises by blaming Portugal for many of the current problems facing the country and Portugal’s relationship with Spain sank to new low forcing the country to put its military on alert and increase Naval patrols.

    Without Portuguese subsidized prices Spain was forced to purchase both manufactured goods and raw materials as well as fuel and food from US and other countries but at much higher prices and soon Spain’s foreign reserves began depleting very fast, in meantime the percentage of the Spanish budget needed to service its huge external debt accounted for over 40% of government revenue. In 1947, Spanish government once again decreased government expenditures and increased taxes in an attempt to balance the budget at same time it imposed rationing as it reduced the purchase of many goods from abroad. This caused Spain economy to enter a depression and unemployment rose again after dropping over last four years.

    In 1948 tension between Portugal and Spain increased again over the inability of Spain to pay the interest and principle due on its loans. Spain was on the verge of defaulting and Portugal refused to provide it with any assistance. Finally, Spain was able to secure emergency loans from French and English banks but at a very high interest rate. To make matters worse, Portuguese diplomats leaked copies of several internal French and British bank memos indicating they expected Spain to default and since their loans were secured by Spanish assets, they expected to make very large profits from the sale of those assets. This put additional pressure on the Spanish government to find a solution and caused Portugal and Spain to break off diplomatic relationship till spring of 1949. Meanwhile Spain attempted unsuccessfully to refinance its foreign debt.

    In March 1949 the Spanish requested assistance from World Bank and the US but their terms were very harsh, and Spain would be required to grants its last colonies independence and still leave Spain with a large foreign debt. Franco initially refused but asked for additional time to negotiate so in June the European banks agreed to provide Spain with a six-month extension. Portugal which held 80% of Spain’s debt also agreed to provide Spain with a six-month extension.

    During the summer of 1949, the Spanish debt issue loomed larger and default looked more likely than in 1948. Portugal initially let the Spanish and US negotiations take place but then in the middle of the negotiations provided an offer that did not increase Spain’s debt but instead economically resolved all of Spain’s debt problem to Portugal and European banks. In August Portugal and Spain entered into secret negotiations while Spain continued its public negotiations with USA and World Bank. Portugal offered to cancel all Spain’s debt held by Portugal as well as buy out the UK and French debt in return for Spain’s colonies in Africa.[5] The Spanish government were shocked at the Portuguese offer, for while it would resolve the Spanish debt problem the hardest part for the Spanish to accept was the fact they were being forced to accept the offer from their neighbor, Portugal, whom many Spanish still regarded as poorer of the two countries. As part of the agreement the Portuguese government demanded that Spain allow Portuguese troops to enter the Spanish colonies prior to the agreement being made public. The Spanish reluctantly agreed and signed the secret agreement. From 28 – 30 November 1949 Portuguese forces moved into the Spanish Morocco, Spanish Sahara and Spanish Guinea ahead of the public announcement of the agreement. Anticipating negative reaction in Spain to the agreement Portugal secretly ordered all non-essential personnel and family members of Portuguese diplomats out of Spain on 1st of December.[6]

    On 1 December 1949 Portugal and Spain announced the reinstatement of the Iberian Pact and the transfer of all African territory to Portugal in return for the transfer of all Spanish debt to Portugal. Spanish troops were withdrawn from Africa and returned to Spain. On 7th of December as security in Spain became a problem Portugal pulled all its diplomats and remaining personnel from Spain using the excuse of Christmas holidays. On 15th of December as security of Portuguese citizens could no longer be guaranteed Portugal issued a notice to all Portuguese still in Spain to leave ASAP. The Spanish people reacted with shock and anger taking to the streets demonstrating their displeasure clashing with police. From 20 – 31 December 1949 Spanish cities were rocked by protests and demonstrations till Franco called out army to quell riots and demonstrations on 31st of December.

    The US and rest of Europe were shocked by the agreement and the US government and France both objected to the agreement and demanded the return of the territories to Spain or placed under UN protection. When negotiations failed, they presented motions in the UN to condemn the Portuguese actions but before they could be voted on the Western World was thrust into the Korean incident and the motions were put on the back burner.

    Rest of Europe
    Italy – Lost its colonies and was also forced to pay war reparations which while a burden to the country was not anywhere as severe as Germany’s. It was also not occupied. Italy started witnessing strong economic growth in the late 1940s which continued for the next decade.

    France – In 1946 the fourth Republic was proclaimed, and France witnessed strong economic growth for the next decade but suffered political instability with a dozen governments during that time. In 1946 France became involved in the Indochina war of Independence against Vietnamese Communists.

    Czech Republic – was the western part of the country of Czechoslovakia that had existed from 1919 to 1938. The Czech Republic gained its independence in 1947 but in 1848 elections the communists tried to seize power and establish a communist government and restrict personal rights and freedoms. This led to demonstrations by people and the communist crackdown on the demonstrators led to an armed struggle within the country and the start of the Iron Curtain Crises. In 1949 peace once again returned to the country and in an attempt to reduce tensions within the country all non-Czech nationalist were ordered to leave the country by end of 1949. The remaining Germans, Slovaks and Hungarians were forced to return to their country of origin or emigrate.

    Soviet Union – During WWII the Soviets had lost about 55 million people with combat deaths about 11.5 and remaining civilian deaths.[7] The Soviet Union economy and its primary agricultural region were in ruins. Starting in 1946 it forced its satellite countries to provide food and minerals even if it left them facing starvation. In 1949 Soviets became the second country in the world to gain nuclear weapons when it exploded a nuclear weapon.

    Germany – In the west and south its borders were returned to 1937 borders, in the east it lost Eastern Prussia to the Poland & Soviet Union and its borders with Poland were moved west to the Oder and Lusatian Neisse rivers. Austria independence was re-established; all Germans were expelled from Czech and Slovakia Republics and from the German lands given to Poland. Germany was forced to pay war reparations to UK, France, US and Soviets in the form of dismantled factories, forced labor and coal. The Allies and Soviet Union also removed intellectual property and patents from Germany.[8] In 1947 the Western Allies decided to unite their occupation zones into a single country called Federal Republic of Germany but with continued Allied troops stationed in the country. In 1948, the resolve and determination of the allies was tested with the election of communist state governments in two states bordering communist Poland. The communist insurrection and Iron Curtain Crises forced the German army and Allies to work together for first time.

    Greece - At the end of the war when Soviet troops arrived along the Greek border with Bulgaria, the US and rest of western allies sent a very strong worded letter to Stalin advising him that Soviet troops were not to cross the border. Any idea of Soviets disregarding the warning was rapidly dismissed by the detonation of nuclear bombs over Japan. This of course did not prevent Soviets from smuggling weapons to Greek communists. From 1946-1948 the whole northern Greece was a battleground between nationalist Greek forces and Communist forces. The Greek communists seemed to be actually be gaining the upper hand till the Americans and British intervened by sending in troops to patrol the Greek and Bulgarian/Yugoslavia border while the American navy moved several ships into the Aegean Sea in support. The stalemate in Greece as only broken after the Xmas day bombing (although no bombing occurred in Greece). General public support in Greece like rest of Europe dissipated and desertion became problem for the communists. The result was that by middle of 1949 the Greek communist had lost 90% of the land they held and the last forces were defeated by end of that same year.


    Soviet Satellites – Poland, Slovakia, Hungary, Romania and Bulgaria the European countries liberated by the Soviets from the Nazis were made Soviet Satellite states with communist governments similar to one in Soviet Union. Stalin had two reasons to create the communist satellite states; first, it provided the Soviets with a buffer against invasion by European countries, after being invaded twice in the last 50 years, secondly was the spread of communism. These countries though suffered at the hands of the Soviets who after suffering unimaginable horrors at the hands of the Nazis wanted to make the world pay. Several of the satellite states (Slovakia, Hungary, Bulgaria and Romania) had been in fact allies of the Nazis and participated in the invasion of Soviet Union. The Soviet Union imposed a huge economic burden on its satellite states forcing it to pay Soviet Union with agricultural, mineral, manufactured goods and forced labor regardless of the countries’ ability to pay and the undue hardship this caused its citizens.

    [1] The only two western European countries that did not receive American assistance were Portugal and Spain. Portugal rejected American assistance stating it did not need it while Spain which had remained neutral did not qualify for assistance.

    [2] The western Allies had unified their three parts of Berlin and turned it over to Germany as its Capital. Meanwhile the Soviets had refused and continued to occupy a quarter of the city.

    [3] The imposition of Communism on the Soviet occupied Europe as well as continued animosity towards the west, including the “invasion” of communist into Germany and Czech and the use of military to squash popular uprising in Poland (directed by Russia) formed the basis for the Alliance.

    [4] The USA agreed to take in the largest number of refuges 500,000 with Canada and Australia each accepting over 250,000. Portugal accepted 155,000 refugees while the remaining were accepted into Southern American countries, Australia, New Zealand and rest of Western Europe.

    [5] The inclusion of Spain returning Olivenza, a county that Spain had taken from Portugal in War of 1801 and per the Vienna Conference in 1815 was to have been returned stalled the negotiations till Portugal dropped the return of Olivenza in September. On 5th of October Spain and Portugal signed the agreement but decided to delay its announcement till Portugal took possession of all Spanish colonies. The Portuguese offer was five times the amount that the British and French were offering Spain in their negotiations and left the Spanish government free of debt.

    [6] American, French and US intelligence services reported on Portuguese-Spanish meetings, but all believed the Portuguese and Spanish had failed in their negotiations. It was only when the Portuguese began moving troops and security forces that they realized something was up. The Portuguese attempted to hide the deployment of troops and security forces with the announcement of the Atlantic Military Games. When the troops and security forces disembarked in Spanish Africa a frantic diplomatic effort was initiated but the Portuguese deployment continued and on 1 December 1949 the Spanish and Portuguese government publicly announced the agreement to a shocked world.

    [7] iOTL the Soviets deaths were about 40 million, with 8.7 million combat deaths and remaining civilian deaths. iTTL the Germans were able to advance further both military and civilians deaths were much greater.

    [8] In 1947 Portugal was also included in the war reparations program in return for elimination of German debt to Portugal and return of 150 tons of Nazi gold.

    In this post I wanted to elaborate on the two main sections; Iron Curtain Crises and the Portuguese-Spanish confrontation. There were several major differences in the occupation of Europe at end of the war. The Soviets due to deeper penetration and harsher occupation Soviet Union did not advance as far west as they did iOTL. This coupled with mass surrendering of the German Easter Army to the western Allies along with the Western Allies not allowing Soviets to occupy eastern part of Germany left much anger in Soviet camp and resentment amongst communists. In 1946 the official version being told by the communists was that the Nazi were solely funded and supported by west to destroy the Soviet Union. The Iron Curtain crises has many elements of the communist uprising of Czechoslovakia iotl, the difference was American troops still in the vicinity and a weaker communist uprising. The Xmas massacre was a direct consequence of many communists dissolution at the progress of the revolt which they figured would of caused rest of Europe to fall to communist forces. The involvement of Italian, French and other western forces required a direct response they felt. Unfortunately for the communists it was the opposite and in some countries such as Italy being a communist or supporter of communism was akin to being a terrorist and subject to being imprisoned. It would take decades for the communists in Germany, France and Italy to recover and it was only in 1979 that communist party allowed to register.

    The Portuguese - Spanish debacle had its origins in Spanish attitudes towards Portugal and Portuguese fears Spain along with Nazi would invade Portugal. To appease the Spanish Portuguese heavily subsidize the sale of food and oil to the Spanish during the war all on zero percent loans with very generous payment options. As the war progressed the subsidies were slowly reduced to the point at end of war they were complete illuminated. This caused the Spanish to become angry and alongside other areas of concern such as smuggling and exporting of portuguese industrial goods into Spain meant that its economy was actually weaker than iOTL at end of war. The Spanish attitude in renegotiating the Iberian Pact was the excuses the Portuguese needed to official terminate the agreement. This shocked the Spanish but what really shocked the Spanish was the new interest rates and repayment terms put a severe strain on Spanish finances coupled with the need to buy oil and grain at world prices put the country on road to bankruptcy. Not assisting the Spanish was the fact most of its profit and foreign reserves made during the war selling tungsten and other items to both Nazi Germany and Britain was tied up in London and Berlin. British were not in apposition to release the funds and the western allies (US) wanting to punish Spain for its part in supplying the Germans were very slow about dealing with German debt to Spain. Questions / Comments?

    In two weeks on September 1 we will return with part 2 of the Post War world section (dealing with two important theatres the Indian Subcontinent and South East Asia.)
     
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    1940s - The Post War Years (1945 - 1949) - World (2 of 3)
  • Lusitania

    Donor
    Due to some readers questions regarding several major events that happened after the war I decided it would be easier for readers if we were to publish the World Section next an then return to the other sections such as economics, Security and Health & Education. The World Section is divided into 3 sections (Europe, Middle East & Asia and South America with special emphasis on Brazil and Argentina).

    1940 – 1949 (cont.)

    The Post War Years 1945 – 1949 (cont.)


    World (2 of 3)

    Post War – Middle East
    The Middle East saw the first colonies and protectorates gaining independence with the British granting independence to Palestine and Transjordan while the French granted independence to Syria and Lebanon. From 1946 to 1948 thousands of Jews (mostly Holocaust survivors) traveled to British Palestine, with the goal of establishing a Jewish homeland. The British opposed their immigration on fears it would upset the Arabs most of whom were Muslim. By 1947 the arrival of thousands of Jews in Palestine had caused tensions between Jews and Arabs to explode and the British were unable to maintain peace.

    In 1948 under a UN plan, Palestine was equally divided between Jewish and Arabs with Jerusalem to be shared between the two. This plan was rejected by Israel’s Arab neighbors and the day following the Jewish declaration of independence they invaded the Jewish state. Portugal provided money and weapons to Israel, but most importantly was the 3 regiments of Portuguese Jewish army veteran volunteers and supplies that the Portuguese Navy transported to Israel. In addition, another 5,000 Portuguese-Jews also travelled to Israel to support the Jewish people in their fight for a Jewish homeland. Israel defeated the Arab invaders and was able to expand by taking 2/3 of the Palestinian lands originally outlined in the UN plan as well as the entire city of Jerusalem. Portuguese recognition of the State of Israel as well as military and financial support provided the foundation of the current Israeli-Portuguese relationship.

    Asia
    While WW2 had ended war continued to plague Asia following. The continent was being ripped apart by two major civil wars (China and India) meanwhile nationalist forces in French Indochina and the Dutch East Indies fought the returning Europeans who attempted to re-assert their control.

    Meanwhile while both the French and Dutch fought against independence movements the US granted Philippines its independence in 1946. The British too moved towards independence for many of its colonies, foremost amongst the territories becoming independent was British India the crown jewel of British Empire which was dismantled into four separate countries (India, Pakistan, Burma and Sri Lanka).

    Following the Japanese unconditional surrender all Japanese soldiers were disarmed, and its overseas possessions either granted independence or returned to its rightful owner including all of its pre-war conquest and annexations. Manchuria was returned to China and Korea became independent. Japan also lost the Japanese Kurils and south Sakhalin Island to the Soviet Union.[1] Hundreds of thousands of Japanese were forced to relocate to the Japanese main islands. As punishment for its war actions and to prevent Japan from becoming a military threat again, Japan was de-industrialized with the goal of reducing Japanese standard of living to 1930 and 1934 level.

    China
    In 1945 with Japan defeated Nationalist Forces and Communist forces once again resumed their long war for dominance and control of China. Before the war, the communists were on the verge of collapse and had retreated deep into central China to regroup, by wars end they were almost evenly matched. The advantage the Communists had over the Nationalist forces was that communist forces were under one unified command, meanwhile the Nationalist forces were under several commands and coordination between the Nationalist forces was problematic at best.

    From 1946 to 1948 the Communist and Nationalist forces fought each other at a great cost to personnel and civilians. At end of 1948 the communists launched the Pingjin Campaign in Northern China and by the end of the year they had defeated the Nationalist forces and were in control over all of Northern China by January 1949. In the fighting, the Nationalist forces lost over 1.5 million soldiers many of them veterans of the Japanese Chinese war. With the main part of its army lost the Nationalist government withdrew south of the Yangtze River.
    In April 1949, the communist forces crossed the Yangtze River and the Nationalist forces retreated further south establishing their provisional capital in Canton. The communists continued their southward advance and in November the Nationalist forces and 2 million civilians north of the Pearl River crossed the Taiwan Strait and retreated to Taiwan. The remaining Nationalist forces south of the Pearl River and 500,000 civilians retreated to the island of Hainan. On 1 October 1949 Mao proclaimed the People Republic of China with its capital in Beijing.


    China – Portugal Relationship

    Following the surrender of Japan, Portuguese forces returned to Macau and reestablished Portuguese sovereignty over the territory. Portugal also re-occupied the Chinese islands of Lapa, Dom Joao and Montanha (Wanzai, Small and Large Hengqin). Nationalist China objected to the Portuguese occupation and demanded Portugal withdraw its troops. The new Portuguese Ambassador João de Barros Ferreira da Fonseca offered the Nationalist Chinese government a compromise, Portugal would withdraw from the island of Lapa but continue its presence on the islands of Dom Joao and Montanha. The status of the two islands would be differed to a later date in return Portugal committed to provide the Nationalist forces who were locked into a civil war with Communists with weapons and ammunition. From 1945 to 1948 Portugal provide millions of dollars in military support to the Nationalists. In 1948 the sovereignty of the islands was transferred to Macau in return Portugal cancelled all Chinese debts owed to Portugal while Portuguese would continue its support to the Nationalist fight against the communist rebels. In 1949 the communists won the Chinese Civil War and the Chinese Nationalists forces withdrew to the islands of Hainan and Taiwan. Following the fall of mainland China to the communists, Portugal worked with the UK to guarantee the safety of both Macau and Honk Kong. Troop strengths and Naval presence were strengthened but other than that no other action was taken. At end of 1949 Portugal did not have diplomatic relationship with Communist China and re-established relationship with Nationalist China who had moved their capital to the island of Taiwan.

    upload_2019-9-1_21-34-48.png

    Macau and China 1948
    Original Macau (green),
    Territory occupied 1938 – 1947 (Red),
    Territory gained 1938 (olive green)

    India
    In 1946, Indian leaders such as Gandhi led civil disobedience movements against those in power (British and Nationalist leaders) as well as against the continued attacks against civilians by communists and anarchists.[2] The non-violent independent movement and Indian resistance to British Rule finally forced the British to adhere to Indian demands and in March 1947 the British Parliament passed the Indian Independence Act granting Independence to Pakistan and India.

    In 1946, the situation in British India became very dangerous as the independence movement gained ground and civil action escalated. Meanwhile communists continued their attack on the British as well as Indian Nationalists figures.[3] On 18 February 1946, the Indian Royal Navy mutinied in Bombay. Indian Communists stole aboard the HMIS Akbar docked at the Bombay harbor and set explosives in the ammunition storage. The explosion ripped apart the ship as well as 12 other ships in the harbor and the resulting fire damaged almost half the harbor. Casualties were estimated over 5,000 with three times that number injured. Indian Communists were blamed and both Nationalists Indians and British targeted the communists with renewed vigor.[4]

    On 4 April 1947, communists launched an attack on the Indian Congress while Prime Minister Nehru and Deputy Prime Minister Sardar Vallabhbhai Patel as well as most of the India’s Congress members were in attendance. All the guards and several members of Congress were killed in the attack. When the Indian army attempted to storm the congress, the communists blew themselves up as well as detonated the bombs they had planted in building.[5] Almost all Indian politicians died in blast and over next several days communist integrated into the army throughout the country revolted against the Indian National government. While majority of the communist members in the military were defeated several units especially in the Indus valley were taken over by communists and they began battling Nationalist forces.

    On 5 June 1947 Pakistan took advantage of the Indian Civil war and attacked India in an attempt to capture parts of Bengal and Kashmir. By 1949 when a cease fire was negotiated India had lost half of the state of Bengal and entire state of Kashmir.

    On 2 July 1947, Jayachamarajendra Wadiyar, ruler of Princely State of Mysore survived a communist assassination. DGS agents working in Mysore capital convinced him that he should follow Hyderabad State’s example and declare Mysore Independent.[6]

    In October 1948 DGS began providing support and weapons to Pratap Singh Rao Gaekwad, ruler of princely state of Baroda in its attack on communists and other princely states as it attempted to unify Baroda’s various areas. By 1949, the Kingdom of Baroda forces had united the princely states three major areas into a single area of control including control of several major ports in Gujarat Western India. They continued their attacks into the Kathiawar peninsula as well as battling communists and several princely state holdouts to the east and south.

    On 30 January 1848 Gandhi was assassinated by Hindu extremists. The Indian government tried to pin the murder on the communists but failed. On 5 March 1948 General Kodandera Madappa Cariappa, leader of Indian army proclaimed himself as President of India and declared Marshall Law.

    On 15 November 1948 Bombay fell to Indian communist forces led by Rashtriya Mazdoor Mill Sangh. Indian forces were forced to withdraw north leaving a power vacuum in Western India. On 5 March 1949 Rashtriya Mazdoor Mill Sangh and several of his top deputies were killed by rival communists in a power struggle splintering the communists in Western India. Following the fall of Bombay, the only independent Indian forces left in Western India were those under the command of General Cowasji Jehangir who by March 1949 had assembled a force of 20,000 soldiers around Pune. He also opposed President Cariappa and supported a democratic India. In October, he signed several agreements with the Portuguese government in Goa, the Nizam Osman Ali Khan of Hyderabad and Jaya Chamarajendra Wadiyar of Mysore. All three countries pledged to support General Jehangir with money and weapons.[7]

    On 15 June 1949 communists led by V. S. Achuthanandan overthrew Travancore’s government executing its king, Chithira Thirunal Balarama Varma. Over the next few years Travancore would become the source of many communist attacks in Madras and Malabar.

    At end of 1949 the Indian army was locked in battle with communist forces along the Indus River basin. It was also battling separatist forces in Northern India and in central India against Hyderabad. The defeat to Pakistan and the loss of Bombay to the communists was a major blow to the Indian government of President Cariappa and many people complained and were unhappy with the government. President Cariappa responded by banning demonstrations and had opposition leaders arrested.

    From 1949, onward the number of DGS agents in India surpassed the number in Portuguese India as Portugal attempted to influence the Indian Civil war and various factions in a way that did not prejudice or hurt Portuguese India.

    East Indies – Dutch East Indies
    During the Japanese occupation of the Dutch East Indies, Indonesian forces under Sukarno collaborated with Japanese forces. When Japan surrendered, the Indonesian forces seized the Japanese weapons and declared the Independence of Indonesia encompassing all of the Dutch East Indies as well claiming Portuguese East Indies and British territory on Borneo.

    In 1946, the Dutch government sent forces to the East Indies in an attempt to regain control but instead the forces found themselves fighting the Indonesia rebels for control. From 1946 to 1947 both Australia and British provided troops while US and Portugal provided support to the Dutch as it battled the Indonesian rebels. In 1947, the Dutch doubled the number of troops to 60,000 but by then it was too late and too little. Large part of the Dutch east Indies was in the hands of the rebels. Rebels confident in their victory attacked Portuguese in Sumbawa and the British in Borneo.

    In 1948 Indonesia leaders and forces were attacked in island of Java by communist forces. Sukarno and several other senior leaders were captured and executed. By end of 1948 Indonesia Nationalist forces had recaptured most of the land from the communists and also reduced the amount of land the Dutch control on the island to just the capital Jakarta and the surrounding territory. In January 1949 Indonesia Nationalist forces and government came under the control of General Sutomo. The Nationalists controlled most of the island of Java, about half the island of Borneo and the southern part of the island of Sumatra.

    On the island of Sumatra, the Indonesia Nationalist forces were also battling the Riau forces. To the north in Aceh the rebel forces there decide to stay neutral and wait to see the result of independence struggle elsewhere. On island of Bali Colonel Gusti Ngurah Rai who had survived near death experience following several battles with the Dutch and assassination attempt by Nationalists forces loyal to Sutomo united the island and declared Bali independence.

    At the end of war, the Portuguese approached the Dutch about Portuguese occupied Dutch East Indies and Portuguese claims to several of the occupied islands. The Dutch had refused to negotiate with Portugal and demanded that it withdraw all forces to Portuguese Timor but lacked the ability to force the issue. In 1946 Portugal agreed to provide the Dutch with assistance and agreed to hold its occupied territory so rebel forces would not seize it. In 1947, the Dutch forces in the Dutch East Indies were increased again and Portugal provided the Dutch with naval, air support as well as sold them weapons. Portugal continued to support the Dutch and blocked Indonesia Nationalists diplomatically from gaining UN recognition.

    East Indies – Portuguese East Indies
    The outbreak of the Indonesia War of Independence in 1945 caught the Portuguese government and the DGS by surprise. The Portuguese thinking at end of WWII was that they would have a few years to mold and “Lusophonize” the recently occupied Dutch East Indies. The original thinking was that Portugal would return all islands back to the Dutch with the exception Western Timor, Flores and the smaller islands of (Roti, Alor and Wetar). The outbreak of Independence War in the Indies meant that instead the Portuguese were forced to pacify all Portuguese occupied islands and where possible provide the Dutch with assistance.

    On 22 March 1947, Portuguese forces came under fire from Indonesia guerillas for first time. Attacks on the island of Sumbawa killed 22 Portuguese soldiers in three separate attacks and Portugal responded with re-enforcements and large-scale sweeps of the island. In several clashes over 126 suspected guerrillas were killed. Portuguese military intelligence and DGS responded by arresting and interrogating known supporters of the Indonesia independence movement. Following the attacks, the Portuguese navy and air force increased their patrols of waters around the Portuguese controlled islands. In 1948 Dutch forces abandoned Lombok and Indonesian forces had a secure base close to Sumbawa to launch their attacks. DGS sweeps and interrogations generated few leads. Also, worrying to the Portuguese and DGS was the direction the war was taking as the Dutch forces were being losing the ground to rebels on more and more islands.

    On 15 August 1947 abandoning all hope that the Dutch would prevail against the Indonesian rebels the DGS began a two-pronged strategy to deal with the growing independence movement of Sukarno. First it started to try to pinpoint Indonesia’s independence leader Sukarno and other senior members of the Indonesia Rebels location and secondly it established contact with rival organizations that were not only fighting the Dutch but also the Indonesian Nationalists rebels led by Sukarno.[8] The DGS started providing weapons where required, training but mostly support and where possible nudged the different movements towards independence:[9]
    • On the island of Sulawesi – the northern part of the island Minahasa Nationalist sought to break free of not only Dutch but also Jakarta’s control;
    • On island of Sumatra – In the center the people of Riau (Malaysian) demanded independence from both Dutch and Jakarta. In the north, the people of Aceh maintained their independence from the Dutch and supported an independent Indonesia;[10]
    • South Moluccas (Seram, Ambon, and Buru) – locals on these islands were fighting the Dutch forces and wanted to declare an independent state;
    • Northern Moluccas (Tindore, Sula and Halmahera) – Christians which comprised over 50% of population felt uneasiness of being controlled by Muslims;[11]
    • Island of Bali – Hindu’s feared that their rights and freedoms would not be respected in a Muslim majority country;
    In June 1948, the Indonesia Communist Party launched an attack on the Indonesian republican forces capturing Sukarno and several other senior Republic Indonesian leaders (Prime Minister Sjarifuddin and Haji Agus Salim) on the island of Java. A show trial was held, and the Sukarno and rest of Republic leaders were executed. In October 1948, the communist’s location was betrayed, and they were defeated by a republic counterattack.[12]

    On 20 July 1948, the Indonesia rebels attempted to invade Sumbawa. The Indonesians launched hundreds of fishing boats filled with fighters. The Java Sea battle pitted the Portuguese navy against hundreds of fishing boats crammed with thousands of Indonesians rebels. Portuguese ships and planes destroyed many of ships and the waters were filled with desperate men and most perished by drowning or to sharks. Still thousands of rebels landed on the western shore of Sumbawa where Portuguese army and marines were waiting. The rebels fought for over six hours trying to hold on to their small beachheads but in the end the Portuguese forces supported by air force were too strong, and the last rebels surrendered in late afternoon. Portuguese casualties were listed at 79 killed and 456 wounded. The true number of Indonesia rebels killed at sea was not known but 1,245 rebels were captured, and 2,950 bodies were recovered from the beaches and the sea.

    On 22nd of August, the Portuguese forces launched an amphibious attack on the Indonesian forces in Lombok. For next two months Portuguese pushed the Indonesian forces steadily west taking the city of Mataram on 21st of October. Indonesia forces were driven back to the Volcano Mount Rinjani. In November 1948, the Portuguese brought fresh troops to the island. The arrival of the Angolan 5th division allowed the Portuguese to launch a two-prong attack on the rebels. On 22 January 1949, the last of the rebels surrendered. The Portuguese military began planning for the invasion of the island of Bali, but on 3rd of February Hindu separatists seized the island of Bali. For the next six months, Portuguese forces waited while political and military events unfolded in Indonesia. On 1 October 1949, a cease fire went into effect.
    _________________________________________________________________________________
    [1] The Soviets had moved troops onto the Japanese Kurils and south Sakhalin following Japanese surrender and annexed the territories. The Americans had not protested the Soviet move.

    [2] Till that moment the largest and deadliest attack was the Bombay harbor explosion.

    [3] The Indian Communists congress in 1942 rejected civil disobedience and advocated an armed struggle against all imperialistic forces.

    [4] This was the first action that was performed by Portuguese agents within the Communist and Independent movements in order to focus British and Nationalist forces on the Communist threat in the subcontinent.

    [5] Portuguese DGS became aware of plot in mid-March following the approval of the Indian Independence Act by British parliament and the splitting of British India into India and Pakistan. But the information was only passed to the British on 4th of April when it was too late to intercept them. Inquiries by British Intelligence failed to uncover this fact and the British took Portuguese at their word that they had only become aware of the plot the night before and informed them ASAP.

    [6] Jayachamarajendra Wadiyar was prepared to sign the Indian ascendency act which would have brought Mysore into Indian union.

    [7] Portuguese weapons, as well as British, American and French weapons were unloaded in Portuguese and Madras ports and transported to the Indian forces under General Jehangir command as well as both Mysore and Hyderabad forces.

    [8] Sukarno wanted to create a unified country of all the Dutch East Indies plus several neighboring islands. Many people in the outlying islands believed that Dutch oversight and domination would be replaced by Jakarta’s oversight and sought to establish their own independent country.

    [9] While Portuguese where the first to make contact with these groups but were not the only ones that supported them. Communist states as well as the US, UK and Australia all supported these movements at different stages as it became clear that Dutch control was numbered, and that the Nationalist lacked the strength to gain control of all the Dutch East Indies.

    [10] Teungku Daud Beureueh and his religious Ulama party controlled the northern part of the island

    [11] Of the independence movements, the Northern Moluccas were the least organized.

    [12] DGS agents secretly worked with both communists and the nationalists. It provided information on Sukarno position to the communists and then provided the nationalists the location of communists (after the execution of Sukarno) but were not responsible or had any involvement in either the communist insurrection or Republican counterattack.

    In this post I wanted to elaborate on the several sections; China - we have two major changes. National China has been able maintain Hainan Island, while the Portuguese were able to leverage support for Nationalist China to its ability to double Macau size. What happens in the 1950s we will have to see. In Asia we have two former colonies British India and Dutch East Indies collapsing into civil wars. These civil wars actually continued well into 1950s .

    Questions / Comments?

    In two weeks on September 15 we will return with part 3 of the Post War world section (As we start discussing two very important Portuguese allies and friends who together with the Federation would be dubbled the "Three Amigos" by American press in the 1970s.)
     
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    1940s - The Post War Years (1945 - 1949) - World (3 of 3)
  • Lusitania

    Donor
    Due to some readers questions regarding several major events that happened after the war I decided it would be easier for readers if we were to publish the World Section next an then return to the other sections such as economics, Security and Health & Education. The World Section is divided into 3 sections (Europe, Middle East & Asia and South America with special emphasis on Brazil and Argentina).

    1940 – 1949 (cont.)

    The Post War Years 1945 – 1949 (cont.)

    World (3 of 3)


    South America – Brazil

    In 1945 bowing to both political and external pressure the military staged a coup and Brazil’s Estado Novo government of President Getúlio Dornelles Vargas was overthrown and democratic elections were called for both congress and president. The election was far from fair, with Vargas and the people behind Estado Novo still wielding a lot of power and influence. They nominated Eurico Gaspar Dutra as their candidate who ran against Eduardo Gomes who was backed by the União Democrática Nacional and Ledo Fiúza and by Partido Comunista do Brasil. On 2 December 1945 Dutra won by over 3 million votes and was inaugurated President on 31 January 1946. Thus, to all appearances Brazil had transitioned from dictatorship to democracy in reality Vargas and Estado Novo continued to exert a great deal of influence on both the Presidency and Brazilian congress.

    i1yfF7G.png

    Eurico Gaspar Dutra
    Minister of Defense 1936 – 1945
    President of Brazil 1945 -1951

    During WWII Dutra had come to appreciate and admire the power of the US and he was very aware of challenges facing Brazil in the post war world. Therefore, he set about trying to modernize Brazil. A new constitution was enacted marking the return to democracy. Under Dutra presidency he and his cabinet attempted to modernize and reorganize the country. The Social Service of Industry (SESI) and Social Service of Commerce (SESC), and the General Staff, were created. Dutra a devout Catholic viewed gambling as sinful and ordered the closing of casinos and prohibited gambling in the country.

    The government’s development strategy proposed in 1947 known as the “Salte Plan”, due to its emphasis on Health, Food, Transportation and Energy was aimed at the management of public spending and investment in key sectors in the country. Hampering the government’s ability to increase development of the country was the precarious situation of the country foreign reserves. Brazil limited foreign reserves and limited exports (coffee accounted for more than half of Brazil exports. At first President Dutra government tried to simulate the country by liberalizing trade and depreciating the Brazilian currency However, imports of goods led to a rapid depletion of the country's foreign exchange reserves. In 1947, under the guidance of the International Monetary Fund (IMF) the Brazilian currency was re-pegged to the U.S. currency. Unfortunate this made Brazilian exports more expensive and discouraged exports, encouraging, on the other hand, the import of equipment, machinery and other inputs, excluding consumer goods, and favored the expansion of the manufacturing sector. The one area that assisted the Brazilian economy was the Portuguese – Brazilian Accord of 1944 which had liberalized trade between the two countries but more importantly had established the framework for the bartering of trade between the two countries. Since the signing of the accord trade between Portugal and Brazil had been growing at double digits each year and the percentage that was barter was growing at double the rate of growth.

    On 10 September 1947 president Dutra wife, Carmela Teles Leite Dutra, was admitted to hospital with acute appendicitis. On 17 September 1947 she slipped into comma and doctors did not expect her to survive. On 21 September 1947 against all odds she awoke from coma and doctors were astonished at her recovery. The President who had not left her bedside and the whole country were ecstatic at her recovery which she attributed to the intervention of Virgen Mary who came to her in a dream while she was in coma. On 23 September 1947 an announcement was made of the upcoming visit from 2-15 October to Portugal in which the President and his wife would be making a special pilgrimage to the Virgen Mary Shrine in Fatima Portugal to commemorate the 30th anniversary of the apparitions of the Virgen Mary to three shepherds. The country and government were thrown in turmoil regarding the news and the visit to Portugal.

    On 1 October 1947 President Dutra, his wife and an array of government and religious leaders departed Brazil for Portugal. Several thousands of Brazilians also boarded several ships during the same time to accompany the President. The state visit and private pilgrimage to Fatima was big news and covered by both Brazilian and Portuguese press. A huge state banquet was arranged on the 14th of October on the eve of President Dutra departure. At the Banquet President Dutra expressed both his gratitude to God and Portuguese hosts whom he also announced his admiration for their development and progress.[1]

    At last meeting on 15th of October with his Portuguese counterpart President João Semedo, President Dutra privately confided that both he and the rest of the Brazilians were shocked at the level of development in Portugal. President Semedo then said, if this shocks you then you must visit Luanda and see for yourself the level of development there for that will leave you breathless.

    Intrigued President Dutra took President Semedo up on his invitation. President Semedo then accompanied President Dutra and they travel together to Luanda. President Dutra and the Brazilian were truly astonished at the development for there was construction everywhere. Factories, office buildings, commercial, infrastructure and residential construction was occurring in almost all parts of the city and the outskirts. The Brazilians left the city the next day in shock and President Dutra for the first time was able to actually see the development and industrialization happening outside of US and saw it was actually possible and not just a dream to build a country to be as rich as US (not that he thought Portugal was but he saw Brazil following Portugal’s lead and becoming as strong and developed as US).

    Upon his return to Brazil, Dutra and his cabinet (half of whom had been with him in Portugal) updated their strategic development plan and submitted them to Congress in March 1948. Borrowing on many aspects of the similar Portuguese plans they were tailored to meet the needs of Brazil and take into consideration the huge size of the country. Instead of the national plan having national goals it instead was comprised of several regional plans to be implemented by state governments with federal government acting as coordinator and setting national standards.

    On 15 June 1948 congress passed the plan and President Dutra at the invitation of the US president visited the US to drum up private investment as well as US government support for Brazilian strategic plan. At a meeting with American President Truman the Americans were very receptive to the Brazilian proposal but were concerned regarding growing closeness of Brazil and Portugal whom the Americans did not trust. President Truman went as far as stating that Brazil can either be a friend of US or Portugal but not both. President Dutra eager for American help clearly assured the Americans that US was Brazil’s most important trading partner and ally. Subsequent meetings with both IMF and World Bank though were less fruitful that President Dutra had hoped for, for both were willing to provide Brazil with 200 million dollars in loans, but the conditions were very restrictive and in President Dutra opinion would of straddled Brazil with a huge amount of debt and no guarantee of success. President Dutra's attempt to get the American Administration to commit and agree to specific subsidies and support also provided no clear commitments. On 22th of July President Dutra traveled to New York and spoke at the Brazilian-American Chamber of Commerce gala event in his honor. The trip had gone well but, in the end, President Dutra had not received the support and commitments from the US government and investment community who while polite were hesitant to invest in Brazil due to concerns regarding the political and financial situation of Brazil.

    When Dutra left New York, he surprised the Americans and sailed instead to Lisbon first instead of directly to Brazil.[2] There in Lisbon on 29 July 1948 the Brazil-Portugal accord was signed, providing Brazil with support from Portuguese government, Portuguese and European investment in mining and other industries. Portuguese oil company agreed to build 3 oil refineries in Brazil. Portuguese company executives signed several agreements with their Brazilian counterparts and Brazilian government to invest and develop Brazilian resources. As part of the agreement the Portuguese government guaranteed 200-million-dollar loan with no strings and provided same amount of line of credit to purchase Portuguese goods.

    Coinciding with the signing of the Portuguese-Brazilian agreement was the Iron Curtain Crises in Europe, which saw communist insurgents and forces try to overrun both Czech Republic and Germany. The American response to the Portuguese-Brazil accord was muted due to their growing involvement in Europe.

    In Brazil news of the Portuguese-Brazilian 1948 accord and Portuguese loan along with the failure of Brazil to secure US support sent shockwaves through certain Brazilian government circles. At same time there was a growing anti-Portuguese attitude amongst the Left-wing parties with the communist being the most anti-Portuguese party due in part to the persecution of Communists in Portugal.

    Leading the "revolt" against President Dutra was Carlos Lacerda who through his newspaper “Tribuna da Imprensa” Press Tribune called for the overthrow of the President. Carlos Lacerda anti-Dutra policies gained some support amongst pro-USA government officials and military leaders who saw the failure in Washington and the support received from Portugal whom many still considered a country weaker and poorer than Brazil as a huge failure on Dutra’s part.

    In Rio de Janeiro, Lacerda first from his newspaper and then speaking in public convinced a few thousand civilians, soldiers and sailors in following him and nominated Major Rubens Vaz as his military leader. Major Vaz armed group was able to seize the port but were unable to capture any ships in port. Lacerda led some police and other armed civilians were able to seize Radio Cajuti and started transmitting their message to the people in Rio this coincided with another Radio station Rádio Globo whose owner was a supporter of Lacerda to also start transmitting message supporting the coup and denouncing President Dutra.

    Few hours later, Division General Euclides Zenóbio da Costa ordered General Teixeira Lott to restore order. He moved into Rio de Janeiro with the III Brigade and they proceeded to Radio Cajuti which was the location of most of the Lacerda supporters. The sight of the soldiers advancing towards them was sufficient for majority of the supporters to flee. In the end less than 100 supporters were arrested by the troops, unfortunately Lacerda was not one of them for he had escaped at news of military arrival. The final confrontation late in the evening was the confrontation between Major Vaz forces and General Lott forces which outnumbered Major Vaz forces 5-1. When several naval ships moved towards the insurgents they surrendered, and the revolt was defeated. After Radio Cajuti and Major Rubens Vaz forces surrendered General Teixeira Lott and his troops showed up in front of Radio Globo and forced it to retract their support on threat of arrest.[3]

    To many people’s surprise when President Dutra arrived back in Brazil and was told of the attempted coup, he issued Presidential pardon to all those involved.

    President Dutra returned to Brazil to both a bewildered country and one optimistic about the future. Investment in Brazilian resources was one of the first areas that the Portuguese investment occurred, and Brazilian government provided support and investment in improving infrastructure to move the resources to port.

    In September 1948 President Dutra calling the Brazilian Communist party "internationalist, and therefore not committed to Brazil's own interests" ordered the arrests of leaders and militants and the Brazilian communist party was banned.[4] Many Brazilians had opposed the government action and were unsure of the closer Portuguese-Brazilian relations, but the Christmas day bombings in Europe robbed the communist party of many of its supporters and sympathizers.

    South America – Argentina

    During WWII the Portuguese and Argentina trade and diplomatic relationship expanded considerably. The barter trade program started in the 1930s had expanded but in time Portugal was paying Argentina in hard currency for Argentina agriculture and resources. The Portuguese in a delicate situation stuck between Axis and Allies and lacking military means to defend itself attempted to appease both camps by selling everything it could at reduced prices to provide incentive for both groups not to attack it. At same time it tried to keep Spain amenable, Portugal sold Spain food that it produced domestically, as well as it imported at below cost and on credit to make Spanish feel it was in their best interest to remain neutral. To the Germans it sold both oil, tungsten, steel and even food (while maintaining appearance it was moving towards joining Axis). To the British the Portuguese tried to make itself indispensable by selling British almost anything it could on credit, the Portuguese exported food, oil, steel and other resources at reduced prices even to point where it hindered Portugal’s own development and industry.

    To be able to accomplish all of this by itself would of left the country and its people starving were it not for Portugal’s ability to import agricultural products from Argentina to both feeds its people and to “sell”, over the course of the war Portugal became the Argentina’s major customer. Many Argentinean merchant ships were also contracted by the Portuguese government and companies to both deliver goods to Portugal but also to deliver Portuguese goods to allied nations. During the War Argentina received oil from Portugal which it used for its own needs as well as re-export to other South American countries earning it additional profits. During the war the Portuguese sold and bartered with Argentina not only oil and other resources not available from other countries but some of the industrial goods it was manufacturing including a few locomotives for Argentina railways, trucks, tractors and some of the consumer goods.

    While selling directly to British continued to be an option the British financial situation during the war meant it was unable to pay in cash and instead in credit making selling to Portuguese more attractive so much so that by end of war it held over 500 million in Portuguese escudos. This left the Argentinean economy in very good shape and the mood in country was one of optimism.

    While economically Argentina was in a very good shape both during the war and immediately following the war politically the country was in turmoil. The military and conservative elements of the country had maintained power through the use of several electoral illegal practices. In 1937 Roberto Ortiz was elected president and it was under his administration the Portuguese – Argentina trade agreement was expanded after war broke out. But due to his fragile health he was succeeded by his Vice-President Ramon Castillo in 1942. During this time there was a huge conflict between members of the government who were leaning towards joining the war on the Allies side and those who wanted to remain neutral and deal with both sides.

    On 4 June 1943 the government of President Castillo was overthrown by a coalition of military and conservative figures called the United Offices Group (GOU). Pedro Pablo Ramirez assumed the Presidency and while pledging to remaining neutral did break off relationship with the Axis group which till then continued to have a large embassy and influence in Argentina. In early 1944 Edelmiro Farrell took over the Presidency and it was he who welcomed the President Carmona on the Portuguese first official visit to Argentina. The increase trade with Portugal meant that its exposure in Argentina had grown. Many people in Argentina empathized with Portuguese and their position stuck between the Allies and Axis. Therefore, the Portuguese declaration of war against the Axis and its president’s visit to Argentina was very big news. During the visit President Carmona and President Farrell discussed the prospects of the war and Portugal’s own declaration of war to which President Carmona assured the Argentinean President that trade between the two would continue at current levels and Argentinean ships would be safe in Portuguese waters.[5] At the meeting the war’s progress and the need for Portuguese to protect themselves from rising American aggression which Argentina was also witnessing. Argentinean participation in the war were also discussed as way to appease that pressure. On 5 December 1944 President Argentina declared war against Germany although they provided no military forces to the conflict.[6]

    It was following the 1943 coupe that Argentina saw the emergence of a political leader who would define Argentinean politics for decades to come Juan Peron. Following the coup Juan Peron became labor Minister and charged with managing relations with laborers and unions. He was promoted to Vice President after Edelmiro Farrell became President and following Argentina declaration of war against Germany also given the title of Minister Secretary of War. As Labor Minister Peron provided unionized workers and laborers with several new rights and improved wages, but his public rhetoric soon gained rivalries amongst the conservatives in power and he was deposed from government and arrested on 9 October 1945. The arrest of the highly popular minister angered many Argentinians and unions and other labor organizations rallied to his defense. On October 17 massive demonstration against the government forced President Farrell to free Peron and restore him to office. One of the driving members of the “free Peron” movement was Eva Duarte who following his release would marry Peron and be forever known as Eva Peron and become immortalized as one of Argentina’s most popular figures.

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    Argentinians demonstrating to free Juan Peron

    During the 1945 election Peron ran for presidency on the Labor Party ticket against an array of opposition groups both from the left and conservative right. Peron who was a admirer of the Portuguese model had actually held several meetings with several Portuguese government officials during Portuguese President’s visit in 1944 advocated as part of his election platform several popular policies some of whom were being used in Portugal. Coming out in opposition Peron was the US ambassador Spruille Braden who even campaigned against Peron. Peron won the election by a landslide and subsequently relations with the US suffered as the American ambassador viewed Peron someone who was against American interests in South America. Another consequence of Peron’s election was the negative portrayal of Portuguese influence in Argentina who ambassador Spruille Braden viewed as Portuguese interference in Americas and was contrary to American interest.

    When Perón became president on 4 June 1946, his two stated goals were social justice and economic independence. To accomplish these two goals required Argentina to avoid Cold War entanglements and choosing between capitalism and socialism, but he had no concrete means to achieve those goals. Perón instructed his economic advisers to develop a five-year plan with the goals of increasing workers' pay, achieving full employment, stimulating industrial growth of over 40% while diversifying the sector (then dominated by food processing), and greatly improving transportation, communication, energy and social infrastructure (in the private, as well as public, sectors).

    In 1946 Argentina created the Argentine Institute for the Promotion of Trade (IAPI) to govern the import and export trade and control foreign currency exchange. Prior to 1946 exports and imports had been controlled private companies and in many cases the government had little control. The barter trade with Portugal had shown the government the benefit controlling all trade exchange.

    Using the huge government surplus accumulated during the war Peron and his government nationalized many of the country’s major companies and industries while paying off the government debt which was held by European banks.

    Hampering the Peron government was growing American opposition to nationalization program as well as its desire to become self-sufficient. The Americans who had large investments in agriculture and mining felt threatened by Peron’s policies and they feared loss of American influence in the region. In 1947 a hostile American congress excluded Argentina from Marshal Plan and locked Argentina from lucrative European agricultural market. The loss of the European market hurt Argentina economy and export were reduced by over 50%. Following the war Argentina had scaled back its sale of agricultural goods to Portugal and started selling its product directly to war devastated Europe. By 1947 Europe accounted for 70% of Argentina agricultural exports with the Portuguese accounting for majority of the remainder. The loss of such an important market had the potential of hurting Argentina and preventing Peron from realizing his goals of making Argentina a major industrialized nation.

    In November of that year Peron visited Washington in an effort to ease tensions with the US. He met with American President Truman and relations seemed to improve between the two countries. Truman agreed to replace the American ambassador with someone more neutral. But on the topic of Peron’s main goal the US congress refused to reconsider Argentina’s participation in the Marshal Plan unless it reversed it nationalization program. Refusing to be defeated Peron followed the Brazilian President example and travelled to Portugal to discuss increasing trade relations. The Portuguese who had in previous year also had its own brush with American displeasure tried to appease and help the Argentineans. In 1947 when the American congress was debating Marshall Plan three countries had been singled out to be excluded (Portugal, Brazil and Argentina). Luckily for the Portuguese with British assistance the issue of Nazi gold was resolved, and as part of the agreement Portugal had won reprieve from any American action that would limit its trade in Agricultural or minerals with Europe. The Portuguese much to the displeasure of the Americans also lobbied on behalf its two American friends. After much lobbying the Americans had relented on Brazil but refused to budge regarding Argentina.

    In Lisbon, President João Semedo and President Peron publicly pledged to support one another, and Portugal publicly pledged to increase its purchase of agricultural products from Argentina and to expand the barter trade to ease Argentina’s foreign currency issues. This together with currency controls implemented by Peron provided many Portuguese-British companies to start or expand their exports to Argentina under the barter agreement. Portuguese consumer goods, industrial goods and even vehicles got their first entry into the Argentina market while American goods were being blocked due to currency controls. On the side note the export market on both Argentina and Brazil re-enforced the perception by many British companies that it was more beneficial to be manufacturing or at least assembling their products in Portugal instead of exporting them from Britain.

    Portugal did commit to assist Argentina both its development and diversification program and like Brazil, Argentina became an important market for growing Portuguese industrial goods which in some cases began displacing American manufactured goods.

    As the 1940s ended the people of Argentina like its largest neighbor to the north were enjoying the fruits of a fast-growing economy but the nationalization and importation of industrial goods along limitation on exports were eating away at Argentina’s foreign reserves. Limiting industrial growth was lack of domestic capital and the unwillingness of many foreign firms to invest in Argentina especially the recent wave of nationalization witnessed in the last few years. While Economic growth during the 1940s had been over 53% in the last two years growth slowed to under 4% as hostile US trade policies hurt Argentina export luckily trade with Portugal had offset some of those loses.[7]

    [1] During President Dutra visit, he and the rest of the Brazilian delegation were able to tour several recent industrialized cities south of Lisbon. Then he travelled on the recently completed “fogette” high speed train travelling between Lisbon and Porto. On the day before his visit to Fatima he visited newly mechanized and modernized farms in the Alentejo area before touring several hydroelectric and thermal plants. To say that President and the Brazilians including press were shocked at the changes and industrialization Portugal was an understatement.

    [2] While President Dutra was in Washington and New York the Portuguese embassy aware of Dutra desires invited him to visit Portugal again. Following the trip the previous year the Portuguese offered to help Brazil in its development and also become a conduit for both Portuguese and other Foreign investment.

    [3] Roberto Marinho the owner of both Radio Globo and Globo Newspaper was forced to stop all public support for the coup and as part of the agreement with the military was forced to not talk or print anything in support of the attempted coup. As for the Newspaper which already had the editorial written for next day plus front page supporting the attempted coup it scrapped the next day edition blaming it on press failure. Both the radio and newspaper never mentioned the coup, the government military action and President’s pardon. As though it never happened.

    [4] The Brazilian Communist Party had criticized both the initial visit of President Dutra to Portugal and come out against the 1948 accord between the two countries. But what sealed their fate was several articles in the communist party newspaper supporting the communist insurrection and military action in Europe.

    [5] The Portuguese-German accord signed in 1940 after the fall of France had several provisions that tried to protect Portuguese ships from German submarine attacks. Portuguese merchant ships in addition to flying Portuguese flag also had the word “Portugal” written on their sides in an effort to identify them and reduce risk of German U-boats attacking them. During the war about a dozen Portuguese ships were lost the large Portuguese merchant fleet was largely spared German U-boat attacks when compared to the Allied ship loses. In 1942 majority of Argentina merchant ships also began flying the Portuguese flag and had “Portugal” written on their sides much to the displeasure of the Argentina government but this action resulted in Argentina not losing any of its ships during war. (Although when these ships reached Argentina waters, they flew Argentina flag, but nothing could be done regarding the wording on the side of the ship.)

    [6] The Argentina Navy was tasked with escorting both Portuguese and Argentina merchant ships between Argentina and Portugal and then joined the Portuguese and British naval ships escorting Merchant ship convoys to Britain and later liberated Europe. A few weeks before the Argentinian government declared war select Buenos Aires theatres began showing the Portuguese documentary called “A Solução Final: O Inferno na Terra”, “The final solution: Hell on Earth” about German extermination camps. This was the first country to show the documentary outside of Portugal. (see Security section for explanation of the documentary). The documentary angered many people and also was condemned by many but it was crucial in convincing many people it was important to join Allies.

    [7] iOTL Argentina fiscal situation was more complicated with part of its foreign reserves tied up in Britain and no export outlet provided by Portugal. Economic growth from 1948 to 1950 was actually negative and Argentina GDP reached 85,524 million by 1950. iTTL Argentina foreign reserves at end of war were in much better position and its trade with Portugal had allowed Argentina GDP to reach 92,101 million by 1950.


    In this post I wanted to elaborate on the several sections; the start of Portuguese friendly diplomatic and mutual beneficial trade relations with both Brazil and Argentina. Both of the countries fell into the "American Sphere" and the Americans view of the Portuguese went from irate with its Nazi past, frustrated at Portuguese movement towards Federation, pissed off at Portuguese involvement in both Indian subcontinent and South East Asia to angry at Portugal's meddling in US backyard. While Portuguese involvement was minor in comparison to the overall development of both countries but over time would become another major issue in the Portuguese-American relationship.

    Questions / Comments?

    In two weeks on September 29 we will return with 1st of the Economic post discussing the economic changes being witnessed in the country.
     
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    1940s - The Post War Years (1945 - 1949) - Economy (1 of 2)
  • Lusitania

    Donor
    1940 – 1949 (cont.)

    The Post War Years 1945 – 1949 (cont.)


    Economy (1 of 2)

    The development of the economy become one of the primary objectives of the government, and together with business and unions worked together to expand the country’s industrial capacity, jobs were aplenty even with all the immigration and the attitude of the people having come through some of the darkest times was one of optimism. The Portuguese government spent large amount of money that it had squirrelled away during the war and a large portion of the country’s gold reserves to finance many badly needed infrastructure projects and support industry who themselves also had large amounts of capital saved and ready to invest.

    Agriculture, Forestry and Fishing
    The Agricultural development started after the 2nd “Strategic Development Plan” continued both in Europe, Africa and other parts of country to increase agricultural production. This was facilitated by the continued movement of people from rural parts of Portugal to the growing cities in search of better jobs. The cooperative model used in Azores was started in Guinea and other parts of the country.[1] The domestic farm machinery, tractor and lorry manufacturers were able to double production in the late 40s and along with several new companies finally started to resolve the mechanization deficiencies in Portugal. Just as important to the development of agriculture was the thousands of kilometers of rural roads that were widened and paved and the expanded railway network.

    In Metropolitan Portugal, the majority of the forests were equally divided between pine and eucalyptus trees. As demands for paper and paper products increased the size of the eucalyptus forests also increased. Demand for cork increased and by end of 1940s cork tree farms were started in Angola.

    In Ultramar Provinces, agricultural development continued, in Angola, agricultural production started surpassing local demand by the mid-40s and by end of decade it became an exporter of coffee, cotton, maize, beef, palm oil, sugarcane, bananas, and sisal. Mozambique became an exporter of cotton, cashew nuts, tea, sugar, copra, sisal, rice and coconut by end of decade. In Portuguese India the production of rice, areca, cashew and coconut was also encouraged and invested in with Portuguese India’s food deficit being cut by over 30% by end of decade. In Timor/Flores production of coffee, cinnamon, coconut and cocoa also increased, Coffee became the region’s major cash crop and by early 1950s with Timor’s coffee production alongside Angola’s made Portugal not only became self-reliant in coffee but also became a coffee exporter. Corn, rice, fruit also increased in Timor and the other islands to meet the growing local demand.

    Fishing shipyards were both expanded and built in several ports both in both Metropolitan and Ultramar to supply the growing fish fleet with ships. By 1949 the tonnage of fish caught had doubled from 1940 levels.

    Fitting into the development of Portuguese agriculture was the emphasis on agricultural consumer goods that during the war had also been rationed. Companies such as Superbock, Regina, Tabaqueira SA tobacco, Imperial, Cerealis, Confaco, Conservas Ramirez and Conservas de Angola all expanded building additional plants many in Ultramar provinces. They were joined by several new companies such as Compal, Refrigor, Refinarias de Açúcar Reunidas (RAR) and Delta Coffees who with government assistance took on the role of providing a variety of agricultural products to consumers and also a market for Portuguese agricultural resources.

    At same time the dispersed milk industry and producers joined together and formed several cooperative. On the Iberian Peninsula AGROS and UCRL were the largest of 12 cooperatives, while in Azores LactAçores was formed and Lactiangol was formed in Angola. All of these cooperatives were formed to both promote and assist in the production and distribution of milk and dairy products in the country. Different products started being manufactured and government provided a lot of assistance to increase the infrastructure and plants for the cooperatives.

    Instituto do Café de Angola was formed to both promote and distribute coffee in Portugal and for export. It represented several large coffee producers as well as variety of both small producers and several cooperatives operating in Angola. It established standards and certified both the producers and product. By the end of the 1940s Portugal was one of the top 10 coffee producers in the world and one with a very good reputation and prestige.

    In many sectors of agricultural production and distribution local producers and small regional companies started superseded by new national companies. One of the most successful was Companhia de Produtos Alimentares Barreiros, S.A. a company started on the Iberian Peninsula in 1942 expanded in Angola and by end of decade became the largest abattoir and meat processor in the province meanwhile in Mozambique COLCOM established itself as the province’s leading meat processing and distributor.

    Large industrial companies also invested in agriculture with the formation of companies such as Sovena which became not only major player in the food processing segment of the industry but also a major owner of agricultural land and manufacturer of agricultural implements and tools.

    Oil / Gas and Mineral
    In the late 1940s the iron ore smelters in Angola were expanded to meet growing Portuguese demand, even so by 1949 Portugal continued to need to import steel. That year the Goa Steel Company began construction in Panjim the country’s third Iron ore smelter and steel mill to not only to process the iron ore from Goa but also the increased iron ore production in Angola. In 1949 iron ore production in Angola reached 3.9 million tons per year and while Goa production reached 1.2 million tons.

    In 1949 coal production in Tete Mozambique reached 21 million tons providing coal for growing industrial base, power generation and export.

    Portugal doubled its investment in transportation infrastructure as production of raw materials in all of Portugal including Portuguese Africa continued to be hindered by inadequate transportation infrastructure. Investment in rail transportation, highway and ports was one of the country’s top priorities.

    In 1949 oil production in Algarve reached full capacity of 372,000 bpd and Angola production surpassed Algarve and reached 504,000 bpd. In 1948, the Sines refinery and Luanda refineries entered their 3rd and 2nd set of expansions while a refinery was started in Quelimane Mozambique.

    Mineral production in Angola continued to expand as well as exploration for new minerals continued. In addition to the huge iron ore production, Angola’s diamond mining continued to grow at rate of 25% a year with production reaching 10 million carats a year by 1949. DGS and local police forces were employed full time in an attempt to stop illegal mining and corruption. In addition to the two largest minerals mined Iron ore and diamonds Angola had several copper, gold, lead, tin, wolfram, marble and quartz mines in operation by 1949. Of special interest to Portuguese government were the deposits of Uranium discovered in both the Iberian Peninsula and Angola following the use of atomic bombs on Japan in 1945. In Guinea in addition to the Bauxite mines gold and diamond mines were also opened.

    In addition to the improvements in infrastructure mining industry also benefited from the increased production of mining machinery. The Atlas-Sand company benefited greatly from the mining growth. In 1946 Portuguese government became involved in the negotiations with Caterpillar to supply both mining and construction machinery to the Portuguese market which was held up by the US government. When Caterpillar finally received green light from the US government, they demanded Portugal pay a 30% premium. The Portuguese refused the huge price increase and instead the government turned to Portuguese company Atlas-Sand and to British companies such as Aveling-Barford, JCB, and Terex Pegson to supply both heavy construction and mining machinery needs.

    Industrial Production
    The investment in factories and industries in Metropolitan Portugal, Portuguese Africa, India and Asia resulted in the increase in Industrial production in Metropolitan Portugal during the 1940s by 60%. Following the end of the war the industrial growth in the Portuguese Ultramar started outpacing Metropolitan Industrial increases for first time and in 1949 it accounted for 38% of all Portuguese Industrial production.

    In 1946 with the war over, foreign ships became available to transport the backlog and many Portuguese transportation companies bought many ships that were on the market for sale as foreign shipping companies reduced their fleet sizes especially in US, Canada and UK, by end of the decade the size of Portuguese Merchant marine had doubled in size. At same time Portuguese shipbuilding capacity continued to be expanded with the construction of new shipyards in both Iberian Peninsula and Ultramar provinces:
    • In Iberian Peninsula “Estaleiros Navais do Guadiana Lda” (NAUTIBER)
    • In Iberian Peninsula “LISNAVE SUL” (Setubal)
    • In Mozambique “Estaleiro de Construção Naval Beira” (1947);
    • In Macau “Estaleiro de Construção Naval” (1949);
    Portuguese government understanding the pent-up demand for many items in short supply during the war put a great deal on emphasis on supporting the production increase of garment, shoe and consumer goods available to Portuguese consumers. At same time that foreign products appeared again in the Portuguese market Portuguese industries expanded their production to meet growing domestic demand due to the growing population as well as increased incomes. In addition, several British firms such as Bulpill & Sons, Kenwood, Prestcold and Servis also entered the Portuguese market and either built their own plants or formed joint ventures as Portuguese consumer goods market sales outperformed British market due to the economic situation in Britain following the war.

    After the war, the Portuguese plants of Robert Stephenson and Hawthorns and Metropolitan Cammell Carriage and Wagon Company merged into new company called RSW & MCC in order to compete with the larger Henschel & Sohn plants furnishing the growing Portuguese demand for locomotives but also railway rolling stock for Portuguese railways and export. In 1947 as part of the war reparations Austrian / German company Steyr-Daimler-Puch's and VW transferred part of their business to Portugal to build lorries, busses and cars for the Portuguese marker.[2] The Portuguese government and private investors then approached both companies in 1949 to expand their operations in Portugal. Negotiations with Steyr-Daimler-Puch's led to them increasing their lorry and bus lines as well as build a new plant in Viana do Castelo to manufacture mopeds and motorcycles. Negotiations with VW led to the creation of the joint venture called Auto-Portugal, a car assembly plant was built south of Lisbon in the district of Setubal to start producing under license the VW Beetle as well as other VW vehicles.[3] The agreement stipulated with both companies that 70% of the vehicles had to be Portuguese content to qualify for no duties and that for first 10 years the vehicles could only be manufactured for Portuguese market. Meanwhile Daimler Portugal continued to expand and build not only busses, trucks, cars but also electric rail cars.

    In 1945 Grupo Salvador Caetano was founded and began manufacturing motor coaches. It started out as a Motor coach assembly company for Guy Motors and Leyland Bus from Britain. In 1948 they expanded their manufacturing and assembly plant and began manufacturing double decker buses importing only the motors and other mechanical parts.

    In 1946 with war over and the reinstatement of car racing in Europe Edfor announced the Grand Sport 201 and several of its cars were entered by various racers in car races. The product line was refreshed and Edfor opens car dealerships in the most prestigious cities in Europe and world. Sales of the four Edfor cars: Grand Sport 201, Grand Touring 150, Grand Alba 105 and Grand Marlei 125 grew and delivery times reached two years by 1947. In 1948 construction of new expanded Factory on the outskirts of Porto south of the Douro River was started.

    In 1949 Portugal began imposing a 25% duty on all vehicles imported into the country. This caused many of Europe’s and Americas biggest vehicle manufacturers to begin thinking of building their own plants in Portugal. In the case of Volvo from Sweden their decision was greatly influenced by joint government/private industry approaching Volvo to build a truck manufacturing plant in the country. At the end of 1949 an agreement was signed to build a plant in Luanda to manufacture trucks. As part of the agreement was the reduction of duties on Volvo cars manufactured in Sweden imported into Portugal.

    Compounding the issue of automobile manufacturing in Portugal was the decision in 1948 to introduce a common set of rules and standards, which included the switching to right hand driving in all Portuguese territory. This impacted Mozambique, Portuguese India and Timor/Flores which followed the left-hand side British model. The Government launched several incentives for individuals and businesses to switch to right hand vehicles as well as education programs before and after the transition.[4] The change had a huge beneficial impact for Portuguese companies since they did not need to manufacture two sets of vehicles. This had a significant impact to the American automobile manufactures General Motors and Ford who manufactured cars in South Africa for the Portuguese market. The new import duties and change to righthanded vehicles meant they lost over half their market.

    While EFACEC received additional technology contracts and began making most of the electronic components needed for the manufacture of radios, telephones, x-rays, electrical wiring and equipment. The arrival in Portugal after the war of many Siemens technicians and engineers gave EFACEC a huge boast in the company’s research and development of radars, electron microscopes and other electronic equipment for a variety of industries.

    At same time a national movement amongst other sectors of the country also began or gained momentum, foremost the regulating and standardizing of electrical code and providing a single standard throughout the country. The electrical code and standard were formalized with the establishment of “Entidade Reguladora dos Serviços Energéticos” or ERSE for short. In additional national associations such as the “Ordem de Engenheiros” and “Ordem dos Advogados” were mandated by government to modernize and became inclusive as well as progressive to provide governing bodies that served all of the country including those not European. Overseeing the various professional organizations was the Ministry of Finance which in 1949 setup “Instituto de Ordens Profissionais” to oversee all Portuguese professional organizations.

    _____________________________________________________________________________________________________________________________________________________________________
    [1] In Guinea, there was a substantial movement inland and development of several areas in the south for rice and peanut and cashew production. Most of the center and north was bought up by private enterprise but in the south many supporters of the Corporative movement organized the local holdings as cooperatives. The cooperatives allowed production of peanuts to reach 42,000 tons and cashew to reach 44,000 tons by mid 40s while rice cultivation reached 710,000 hectares. iOTL the rice cultivation only reached 400,000 hectares by 1960.

    [2] RSW & MCC established itself in Metropolitan Portugal while Steyr-Daimler-Puch's established plant was located in Porto Omboim Angola.

    [3] iOTL similar plant called Auto-Europa was built in Portugal post 1991.

    [4] These changes along with single currency and other changes were meant to prepare the country and overseas provinces to function as a single country with same set of standards and laws.

    In this post it was important to discuss many of the industrialization and development events occurring in Portugal and the Ultramar provinces. With the war over the Portuguese started investing into large scale industrialization plus both agriculture and resource development really took off. While during the war resources a agriculture development was limited due to structural deficiencies, after the war the government was able to start fixing the deficiencies, for example the Portuguese government provided cash support and brought to Portugal additional engineering and technical resources to double or in some cases triple size of Portuguese manufacturing plants. In the meantime it allowed for the import of new equipment or vehicles to assist in solving many deficiencies. The agriculture tractor and other implements was a very good example. In 1945 wait times for a Portuguese tractor was 3 years, both due to production limitations but more importantly demand. In 1946 both Portuguese tractor companies started massive building program to triple and quadruple their production capacity. Hundreds of British were brought to Portugal to help in the assistance of the projects. The British parent company of one of the manufacturers got a huge boost as part of the project, order for hundreds of tractors and other farm vehicles and implements which was huge lifeline since demand from Britain was very weak and many of their previous markets were being lost to the Americans. By 1948 when the Portuguese plants came back online and they could supply Portuguese demand the British plants had gone through an orderly phase of consolidation and merger. Some companies had simply sold out and relocated to Portugal others had transferred part of their business to Portugal (Portugal and Ultraman provinces), this also entailed thousands of British in many cases moving to Portugal with jobs and companies. The end result for both countries was very positive (Britain and Portugal) Portugal got its industrialization, British companies were able to rebuild after war and Britain economy was stronger than IOTL.

    Questions / Comments?

    In two weeks on October 13 we will return with part 2 of the Post War Economy section.


     
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    1940s - The Post War Years (1945 - 1949) - Economy (2 of 2)
  • Lusitania

    Donor
    1940 – 1949 (cont.)

    The Post War Years 1945 – 1949 (cont.)

    Economy (2 of 2)

    Energy and Transportation
    In Metropolitan Portugal, the construction of seven additional dams started in 1946 as well as the 12 thermal hydro stations half of which were finished by 1949 allowed for the first decrease albeit small of wholesale electricity rates. In the late 1940s the industrial development in Portuguese Africa started outpacing Metropolitan Portugal and the Portuguese government began planning large hydroelectric power projects to meet the growing demand in Portuguese Africa. In 1948 two massive power dams were planned in Angola; the Lauca and Cambambe dams on the Kwanza River. In 1949 Portugal’s most complex and largest Hydro Electric dam was planned on the Zambezi River; the Cahora Bassa Dam.

    In the Iberian Peninsula after the war “Companhia Ferroviária Ibérica” (CFI) continued to expand Portuguese railway. Linking many new cities to the rail network for the first time. In the South railway finally traversed the whole province of Algarve while the second Alentejo line was completed. In the center, the building of the Vila Franca de Xira railway bridge allowed closer linking to Lisbon. To the south of Lisbon, the expanding cites on the south bank of the Tejo (Tagus River) were also connected to the rail network. In the north were topography was the major obstacle the expanded railways allowed for new industry to expand into Beira and Minho regions.

    IikcJ6n.png

    Metropolitan Portugal Rail network in 1949

    In 1947 the all-electric Lisbon-Porto high speed train line was inaugurated and the “Foguete” train service was inaugurated. While travel time would pale to future high-speed trains. The “Foguete” train using all Portuguese built engine and rail stock was able to traverse distance in less than 4 hours travelling at top speed of 100 km/h. At the time, it became one of Europe’s fastest railways.

    VQ8b73G.png

    Portuguese Foguete High Speed Train 1947

    By 1949, Portuguese Africa’s network of all-weather roads and railway network had doubled from 1945 level.[1] [2] Meanwhile in Metropolitan Portugal new “auto-estradas” based on the German “Autobahn” was started with the Lisbon-Porto “auto-estrada” being built between 1947 and 1949, meanwhile rail service between the major cities was also increased after the war with the increase availability of locomotives and rail stock.

    Portuguese ports were expanded throughout the country to provide it with increased cargo capabilities as the merchant fleet expanded and the availability of ships increased.

    In 1947, the Portuguese government became partners with British Overseas Airways Corporation (BOAC) in the development of airplane capable of carrying 48 passengers. The Portuguese government invested 10 million pounds in the project with British aerospace company Bristol. Several Portuguese engineers also went to work at Bristol plant and in 1948 the first prototype was completed. BOAC and Portugal each ordered 25 planes. That same year a 74-passenger model was also developed, and Portuguese initiated a firm order of 100 for the 74-pasenger version and increased its order for the 48-passenger version to 100 in 1949 providing a huge boost to Bristol. As Portuguese demand became more important for Bristol the number of Portuguese engineers and technicians working for it increased.

    Finance and Commerce
    Following the war agricultural and mineral production continued to increase but with continued high European demand prices remaining high. Wages though continued to see increases luckily for Portugal with the war over many companies were able to invest in new machinery thus increasing productivity and limiting the inflationary pressures.

    The continued operating government surpluses and high trade surpluses provided the government with ability to pay off its entire external debt by 1949. While the Portuguese government continued to borrow money each year to finance public infrastructure projects in 1949 its level of debt was less than 30% of GDP and it borrowed exclusive from within the country.

    The Portuguese also saw an increase in their buying power from 1940 to 1949. The conversion rate from escudo to the U.S. dollar had been set at 25$ in 1940, in 1949 it was set at 18$75. Portugal also continued witness an increase in its gold reserves.[3] [4]

    The increased economic interaction between the overseas provinces and Metropolitan Portugal was complicated and expensive. Portugal used the Portuguese escudo while each overseas province had its own currency for a total of nine official currencies circulating in the country. In Portugal, the Bank of Portugal oversaw the issuing and controlling the escudo, while Banco Ultramar issued colonial currencies in the overseas provinces.[5] This caused major difficulties and increased costs of doing business as the economies of the overseas provinces grew exponentially. Business and citizens demanded a simpler and more transparent system. Starting in 1948 to end of 1949 each of overseas provinces’ local colonial banknotes and coins were exchanged at banks for escudos. On 1 January 1950, the only official currency in all of Portugal from Europe to Asia was the Portuguese escudo.[6]

    In 1946 both Banco Ultramar and Caixa Geral de Depositos were bought by the government. Finance Minister Magalhães Mai had realized that the best way to reform the banking system was to work from the inside. Over the next decade, both government owned banks would spur a huge growth in branches as both banks expanded, and the private banks followed suit. More importantly the two banks began offering better interest rates on deposits and providing more business and personal loans as well as more mortgages.[7]

    In 1948, the 1948 Portuguese Bank Act was passed, it limited the percent of stock each person, family or company could hold in each bank at 15%. It also limited individuals, families and companies from owning more than 25% of the outstanding shares in multiple banks and more importantly prevented individuals from sitting on more than one bank board. It also provided banking regulation regarding operations of banks. Lastly it allowed for the creation of several new banks.[8]

    In 1948 the increased economic activity in Africa especially in Portuguese West Africa led to demand for an additional stock exchange in the country. In 1948 the “Bolsa de Valores de Luanda” (Luanda Stock Exchange) was formed meanwhile the two older Portuguese stock exchanges, Lisbon Stock Exchange and Oporto Stock Exchange, continued to grow and by 1949 the number of companies shares on the stock exchanges had doubled and volume on the exchanges had increased by 350% from 1939 levels. In 1942 the Lisbon and Porto stock exchanges were linked so that companies could be listed on the both exchanges at same time and trades in both exchanges were reflected in each city.

    Following the war Portuguese government provided incentives to increase the production of construction materials this coincided with the huge population boom as hundreds of thousands of immigrants arrived each year from Europe. From 1946 to 1949 the number of homes and commercial development being built increased over 20% a year. [9]

    GDP
    In 1940, the Portuguese GDP reached 29,310 over the next 10 years it increased over 119%. The Portuguese economy continued to witness rapid economic growth as industrialization in Metropolitan Portugal reached new levels. Urban population had reached 60% of Metropolitan Portugal and the countryside was depopulated to feed the growing industrial complex. Portuguese cities and metro areas doubled or tripled in size. The biggest limiting factors became population and available land spurring Portuguese industrialization to the overseas provinces. During the 1940s the Portuguese economy grew as follows:

    Lavncvz.png

    [1] In Angola, the Moçâmedes Railway reached Serpa Pinto in 1948, in the north the Lunda railway was expanded north to Carmona and further inland to reach the new mines and plantations in Henrique de Carvalho by 1949. Meanwhile the Portuguese built several branch lines connected to the Benguela Railway which was the only foreign owned railway in Angola. In 1948, Portuguese investment bank PIB bought the controlling interest in the railway’s owner Tanganyika Concessions Limited and moved the company’s headquarters to Lisbon. In 1949, the Angola Rail company which was 50% owned by the government began building a railway connecting Namibe to Luanda along the coast.

    [2] In 1946, the construction began on the Mozambique Coastal Railway linking Lourenco Marques to Quelimane.

    [3] On 1 January 1939, the total Portuguese gold reserves amounted to 115.4 tons; over the course of the war it reached 856.5 tons as of 31 October 1945, in 1949 they were at 592.6. iOTL Portugal’s 1939 gold reserves were 63.4 tons; as of 31 October 1945, they had increased to 356.5 tons and reduced to 171 tons as of 31 December 1949.

    [4] From 1945 to 1949 Portugal used some of its huge gold reserves to pay for industrial machinery.

    [5] iOTL in 1926 Ultramar bank note issuing powers in Ultramar province of Angola was transferred to Bank of Angola. iTTL the Bank of Angola was never founded as a bank note bank and was only founded in 1941 as a regional business bank.

    [6] Ultramar foreign branches dedicated to money transferring were transferred to Bank of Portugal while those dealing with assisting foreigners and foreign companies doing business in Portugal and Ultramar provinces expanded. By 1949 Banco Ultramar was the Portuguese bank with the largest foreign branch providing a clearance house for foreign transactions as well as facilitating in granting credit to foreign individuals and companies wishing to do business in Portugal.

    [7] In Minister’s Magalhães Mai’s opinion the Portuguese banks were overcautious and not providing enough personal and business loans to the Portuguese economy. It was estimated that less than 40% of all business loans were approved and only 45% of personal and mortgages were approved. As government owned banks lending practices changed the private banks followed suit. A Bank of Portugal study in 1949 found that the lending practices of private and government owned banks were identical showing that the private banks had adapted and changed the way they did business. Both the public and private banks expanded their branch network and many towns got their first bank branches. Lending practices also changed as all banks expanded the amount of money they lent.

    [8] From 1948, onward Portuguese banks went through a rapid change, merger and expansion mode as they adapted to the government bank’s increased lending and higher deposits deposit rates as well as the new competition.

    [9] In Metropolitan cities and towns where land was more limited and expensive the majority of the building was apartments and condominiums. While in Africa and majority of the Ultramar single family homes were the norm. Whole new towns and cities sprung up around the major urban centers.

    [10] The GDP growth for decade was 120%, iOTL Portugal’s GDP in 1949 was 17,129 and the GDP growth for decade was 38%.

    We finalize the economic section and like to point out few items, 1) Portuguese Metropolitan railway is both based on iOTL and increased in both size and scope due to a much greater industrialization and development. As we see Portuguese Metropolitan GDP was almost 4 times larger compared to iotl and therefore required much more efficient and larger network. The fogete high speed rail was brought forward over a decade and while iotl was seen as behind its time iTTL it is relevant and important in respect to increasing transportation between metropolitan Portugal largest cities and for the fact it was designed and built by Portuguese domestic. While its speed and efficiency in the 1940s is 100km/h may seem not very fast in todays world but was a game changer in the 1940s. 2) The Portuguese investment in both motorways, roads, ports and rail would be a great benefit to the country as transportation infrastructure stopping being a hinderance in Portugal's growth but also a contributing factor. 3) Consolidation of various Portuguese currencies into a single national currency was a huge boost economically and more importantly it
    signified one country for in replacing Macau Pataca or Angolan Angolar to Portuguese Escudo and all the other currencies made investing and trade streamlined. 4) the value of Portuguese escudo and its appreciation reflected the growth of the country and the relative strength of the Portuguese economy. This is in contrast to the depreciation of the British Stirling in the post war period. Several British companies with sizable subsidiaries established in Portugal in the 1930s were rescued by their subsidiaries liquidity. During the war when transferring of monies to Britain was not possible these subsidiaries had both invested in their business and like all companies in Portugal saved part of their profits in Portugal. Following the war some of the more progressive companies continued their growth in Portugal while some of the more troubled companies siphoned as much cash back to Britain as possible. 5) Lastly the GDP figures like iOTL are for Metropolitan Portugal and does not include the overseas provinces.

    Questions / Comments?

    In two weeks on October 27 we will return with two sections Health & Education and Security.
     
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    1940s - The Post War Years (1945 - 1949) - Health & Education
  • Lusitania

    Donor
    1940 – 1949 (cont.)

    The Post War Years 1945 – 1949 (cont.)


    Health and Education

    Portuguese Youth
    The Portuguese Youth (PY) expansion accelerated in the later part of the 1940s as immigrant, Africa, Indian and Asian children were integrated into the PY organization. Language, cultural and sports were the cornerstones of the organization with youth participating in activities that increased their development, these included arts programs along with age appropriate reading and writing. Both individual and team sports’ events were organized to both keep children fit as well as teach kids fundamentals of different sports. Children were encouraged to discover different sports that they could participate in (including girls) with PY centers scouts looking for those with natural skill or strength that could be developed. Friendly competitions between different PY centers were organized. The Portuguese culture and civic duty were also emphasized from a young age with children learning both patriotic songs, participating in community events to help the poor or elderly. The acceptance and participation of the organization continued to be reinforced with free health care as well as health education programs for them to improve the lives of their family members also. In the 40s several PY organizations began to provide adult literacy programs, these were expanded in 1949 across the whole nation.

    Health
    The Department of Health program combating infant mortality grew, the program providing subsidized powder milk for poor families, and free healthcare to all children up to age of six was expanded country wide. By 1949 infant mortality had been halved in Metropolitan Portugal and the major urban centers in Africa, while it had been reduced by 25% in rural areas under government control. The free healthcare provided to all children continued into their teenage years. When children started school PY free healthcare took over from the free Pre-school healthcare program. Thus by 1949 every child from birth to adulthood was covered including medical, and prescription greatly reducing child mortality. One aspect that did change during the 1940s was the number of children that families had due to lower mortality rates. From 1940 to 1949 family size increase by 30%.

    The clean water, proper sanitation and garbage collection initiatives were expanded throughout the country including the Ultramar provinces. By end of decade all major towns and cities were able to provide clean municipal water to all residents. Included in the project was the construction of sewers and sewage treatment plants for all major towns and cities.

    The expansion of healthcare facilities (hospitals and health clinics) continued while the government together with universities facilitated the integration of immigrant health care professionals to fill the many health needs of the country.[1] The number of medical graduates by Portuguese universities also continued to increase. The national immunization program (metropolitan and Ultramar) continued with mandatory immunizations offered for: Smallpox, Diphtheria, Tetanus, and Pertussis.[2] By 1949 all children and adults throughout the country had been immunized and all immigrants and newborns were issued immunization books to record their immunized accordingly.

    The Department of Health worked with other departments to eradicate shanty towns throughout the country. To that effect the number of low-cost homes being constructed for low income families increased and by 1949 over 15,000 homes for low income families were being been built a year.

    Education
    The expansion of primary education throughout the country continued as hundreds of thousands of children from the poorest parts of the country received primary education for first time. The hiring and training of teachers and teaching assistants continued while thousands of schools were built throughout the country. Secondary school expansion also continued as the number of students attending secondary school grew by double digits yearly.

    The Portuguese University expansion program was in full swing, the expansion of the three existing universities as well as the construction of the four new universities approved in the first half of the decade was seen as great progress. In 1946, the universities of Beira and Faro were approved, and construction began the following year. In 1948, the University of Goa was approved with construction beginning the following year. In 1949, the Portuguese Catholic Church received authorization from government and announced the founding of the Portuguese Catholic University with a headquarters in Lisbon. The plan was for the university to be spread over six campuses throughout the country including Ultramar provinces.

    [1] In most cases this meant language courses with few requiring additional training.

    [2] In 1950 immunization for Diphtheria, Tetanus, and Pertussis was given as one vaccine.

    We now move towards two the minds and body of the Portugal and its overseas provinces. This is a continuation of the war years and was concentrated on implementing many of the decisions made during the war and adjusting things as events occurred. The Portuguese Youth became the place to imprint Portuguese nationalism and secondly to develop sports and cultural activities for youths. Schools did not have sports or cultural activities such as music and arts. This was where the PY made a huge impact providing sports and activities for youth plus of course the part of patriotic service. In 1946-1949 due to several mudslides and other erosion problems the PY was tasked with planting over 10 million trees in the country. They were responsible to make sure no standing water was left in people’s yards or public fields to combat mosquitos. They were involved in helping elderly and others sick or injured. Health was an area that the Portuguese made huge impacts and as public health improved the government would showcase its results. Showing how family sizes were increasing, showing how infant mortality had been greatly improved. Newsreels would show the building of social housing in cities, towns and villages providing poor with affordable housing with electricity and running water. While education continued to be expanded. The announcement of the University of Goa was actually received with surprise with President Semedo and Minister of Education flying to Goa to make the surprise announcement. The President and several other cabinet ministers were in Goa to view the Portuguese response to the Indian Civil war and tour the refugee camps and the development of the province.

    Questions / Comments?

    I will be posting Security in a little while today.
     
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    1940s - The Post War Years (1945 - 1949) - Security
  • Lusitania

    Donor
    1940 – 1949 (cont.)

    The Post War Years 1945 – 1949 (cont.)


    Security

    In 1945, the PVDE was reorganized again and renamed Directorate-General of Security (DGS). [1] The DGS was divided into two sections: the OSS and SS. The OSS became responsible for all intelligence gathering, and counterintelligence outside the country. Its culture changed back more towards its earlier roots of MI6, included in the OSS was the specialized operative division, that was expanded and strengthened giving its covert teams the ability to increase both the number and type of special missions it could carry out outside the country. It developed extensive networks of informants in both friendly and hostile countries. Meanwhile the SS became responsible for vigilance and neutralizing of subversive elements of society be they on the right or left within Portuguese borders. They were also responsible for providing the government the pulse of the nation.

    In the 1940s Portugal and the Ultramar provinces were undergoing great economic, demographic and cultural changes. Hundreds of thousands of Jews called Portugal their home, over 1 million Germans, half a million Spanish and hundreds of thousands of other Europeans had recently migrated to the country. Added to this greater African, Indian and Asian integration left the traditional European Portuguese at a loss of what to make of their country. Conservative elements within Portugal pushed back against the changes. Nazis and anti-Semitic / racist Germans and other Europeans were being pushed by growing African, Indian and Asian as well as the large and powerful Jewish population. The DGS-SS infiltrated every group and set up informants in order to track them. The more extremist’s elements of each group either “had accidents”, disappeared or were arrested on criminal charges. Re-education camps in Angola and Mozambique were expanded. The Portuguese Tarrafal prison became country’s principle prison for all people convicted of committing crimes against the state. At any one time from 1940 to 1949 over 1,000 communists and other subversives were kept at this prison.[2]

    The DGS-SS also provided intelligence to the government regarding the social, political and economic opinions of the country. From 1946 to 1949 the organization gained many highly educated and trained analyses who had worked in the German DS. These analysts trained Portuguese analysts many valuable skills they had learned in Germany and the reports generated by this section of the DGS guided the government in making several major far reaching decisions including the formation of the Portuguese Federation.

    Starting in 1946 the Guarda National Republicana (GNR) took full responsibility for border control and immigration as well as airport and port security. Policia Seguranca Publica (PSP) also saw its role expand as Portugal industrialization resulted in the growth of Portuguese cities continually growing and the increase in big city crimes.

    In 1948, as Europe was gripped in the Iron Curtain Crises, the country witnessed its own communist attacks; several small attacks in Angola. These two events were used as basis for the Portuguese government announcement that Communism was the biggest threat the world was facing and reason the country was joining other western countries in combating communism which included being a founding member of NATO.

    Internal Migration
    By 1949 the European population in Portuguese Ultramar Provinces has increased to 1,245,000. This unprecedented migration of people was brought on by rapid economic development in the Portuguese overseas provinces especially in Africa. Following the war, the economies of Portuguese Asia overseas provinces including Portuguese India and Asia exploded now secure from Japanese aggression. Industrial, commercial, resource development and agriculture expansion attracted even larger number of migrants and by the end of decade the European population outside of Metropolitan Portugal had jumped to 1,245,000.[3] [4]

    Migration within Portugal and its Ultramar Provinces was not limited to Europeans. Africans continued to migrate to Metropolitan Portugal in large numbers to work both in entry level jobs as well as fill the growing demand for agricultural workers as industrialization continued to depopulate the countryside. By 1949 the African population in Metropolitan Portugal had grown to over 969,000, while the need for Portuguese speaking people and economic opportunities also attracted thousands of Africans to Portuguese India and Asia which by 1949 had an African population of over 127,000. Meanwhile educated Indians migrated freely throughout Portugal and its overseas provinces, and by 1949 more than 428,000 Indians lived outside Portuguese India. During the Indian Civil war the rapid Portuguese economic development and security of Portugal resulted in an almost complete emigration of Portuguese Indians living in former British India back to Portuguese India and subsequently to rest of Portugal.

    Portuguese Immigration
    While the movement of people around Portugal and its overseas provinces was quite remarkable, the most amazing aspect of the country during the 1940s was the 2 million Europeans immigrants living in Portugal by 1949.[5] After the war immigration into Portugal became an organized process with Portuguese directly facilitating immigration of skilled and educated Germans, and other Europeans to Portugal in order to provide a huge boost to Portuguese industry and economic development.

    After the war, with the collapse of the Iberian Pact it scrapped restrictions on Spanish migration and the Portuguese government open emigration to all Spanish thus allowing thousands of Spanish to settle in Metropolitan Portugal as well as Ultramar provinces every year. Although controls were still put in place the Portuguese government set a limit of 10,000 Spanish immigrants to Metropolitan Portugal and 35,000 - 50,000 to Ultramar Provinces per year.[6]

    At the end of the war, Germany was in ruins, many technicians and ex-soldiers were without jobs and in many cases facing starvation. Portugal sent teams to Germany to make contract with not only technicians, but also engineers and experienced machinists.[7] The teams made contacts and arrangements with thousands of Germans to immigrate to Portugal. Once the immigration forms started being processed the government was elated at the success and in middle of 1946 the teams in Germany started contacting and arranging similar immigration deals with scientists and other intellectuals who could work at Portuguese universities, corporations and research centers. While immigration to Portugal was a shadow of the number who chose to migrate to traditional destinations such as USA and Canada, Portugal accepted approx. 100,000 Germans migrants a year from 1945 to 1949.[8] [9]

    In 1945, Moses Amzalak, the leader of the Portuguese Jewish Society based in Lisbon received both authorization and support from the Portuguese government to bring to Portugal any Jew in Europe wishing to leave. From 1945 to 1948 when Israel was created over 350,000 Jews, majority of whom were Holocaust survivors, were airlifted or transported to Portugal and provided support in settling in the country.

    Starting in 1948, following the end of the Iron Curtain Crises,[10] countries with German minority populations such as Poland, Czech, Slovakia and other Eastern European countries expelled over 20 million Germans to Germany. Portugal once again sent teams to interview the German refugees, those with skills that Portugal needed were offered free transportation and jobs in Portugal and its Ultramar provinces. From 1948 till the mid-50s over 500,000 would follow the other migrants and move to Portugal.

    Starting in 1946 Portugal and its growing economy also became a destination for Italians, Greek, French and Belgium emigrants fleeing the economic situation in their countries. Over the next decade approx. 25,000 emigrants a year migrated to Portugal from these countries. News of Jobs and opportunities in Portugal as well as paid transportation reached the economically depressed Ireland and UK in the late 40s, and by 1949 close to 10,000 migrants a year were arriving in Portugal from these two countries.

    In 1947 Russia imposed communism on the Eastern European countries it occupied (Poland, Slovakia, Hungary, Romania, and Bulgaria) at first this caused thousands of refugees from these countries as people fled political and religious persecution as well as famine and poverty. In 1948, the trickle out of communist Europe became a torrent as hundreds of thousands of people fled the new war in Eastern Europe. In 1949 after the fighting had ended the remaining communist countries imposed an even harsher repression on their citizens prompting tens of thousands attempting to flee each year. From 1947 to 1949 over 2 million refugees fled Eastern Europe and Communism. Portugal was one the countries who accepted refugees fleeing communism and renewed fighting. Portugal began a program of limited immigration of communism refugees giving preference to Catholic families.

    From 1946 to 1949 the Portuguese government reached out to Europe and over 60,000 orphans were brought to Portugal and placed with Portuguese families as a show of compassion.[11]

    By the end of 1949 over 1.3 million refugees and immigrants from Europe had settled in Portugal during the 1940s.

    The processing and control of the refugees and immigrants continued to be the responsibility of the DGS after October 1945 when the PVDE was reformed. In 1945, the last of the refugee centers along the border with Spain were closed and the DGS began facilitating the immigration of German and other Europeans to Portugal. Paying for their transportation, arranging housing, and providing employment assistance. All of this was provided free of charge on condition the immigrants signed a 10-year minimum residency agreement.

    [1] iTTL PVDE went directly from PVDE to DGS, never gaining the infamous name PIDE (Portuguese: Polícia Internacional e de Defesa do Estado).

    [2] Tarrafal prison was reformed and modernized to negative some of the more negative criticism but was kept open for the most violent and leaders of the subversive groups.

    [3] Of the 1,245,000 Europeans living in Portuguese overseas provinces in 1949, 706,000 lived in Angola, 372,000 in Mozambique, 79,000 in Guinea, 39,000 in Portuguese India, 31,000 in Timor/Flores with remaining 18,000 spread out over the various other overseas provinces.

    [4] In 1940, Portuguese citizens accounted for over 80% of all Europeans living in Portuguese Africa with Germans, and Brazilians accounting for 15% while British, and South African citizens making up the majority of the remainder. By 1949 Portuguese citizens only accounted for 50% of all Europeans living in Portuguese Africa. Most the remaining 40% was divided between Germans, Spanish with the remainder a variety of Europeans who had either fled the Nazis or Communism.

    [5] This figure does not include the 1 million+ children of the refugees who had been born in Portugal and had received automatic Portuguese citizenship.

    [6] While legal emigration from Spain was set at 10,000 a year to Metropolitan Portugal it was estimated that over 250,000 Spanish worked illegally in Portugal, of which more than half were Galicians.

    [7] The Portuguese teams sent to Germany were composed of equal number of Portuguese and German immigrants (oil and mining workers who had stayed in Portugal at beginning of war).

    [8] German immigration to Portugal: 1945 – 32 524, 1946 – 95 852, 1947 – 149 999, 1948 – 124 562 and 1949 – 101 002. Of these approx. 80% remained in Portugal while rest re-immigrated or returned home. iOTL while some of the German migrants to Portugal would have gone to USA and Canada the biggest losers were the South American countries specifically Brazil and Argentina.

    [9] Of special interest to the Portuguese DGS and government was scientist and technicians who worked in German rocketry, military industrial companies and chemical companies. Unfortunately for the Portuguese they weren’t the only country interest in recruiting them. The Soviets were also interested although they had less to offer in terms of standard of living and in most cases resorted to kidnapping the Germans. On occasion, the Portuguese DGS agents in Germany would tangle with other foreign agents namely the Soviets. In the infamous battle of Nordhausen several DGS agents were injured and two died battling Soviet KGB agents trying to kidnap several dozen German scientist and engineers. The DGS was able to rescue about half the scientists and engineers including Walter Thiel and Walther Dornberger. In November 1945, another DGS unit raided the German V-2 facility near Peenemünde resulting in loss of life for 9 of the 10 DGS agents to both American and Soviet agents. The lone survivor along with a dozen Germans and some of the V-2 data and blueprints were able to escape by Portuguese U-boat.

    [10] See 1940 – 1949 World, Iron Curtain section

    [11] iOTL Portugal accepted over 6,000 orphans from Europe after the war. iTTL Portugal’s economic situation allows it to provide help to a greater number of orphans.

    Security as always in the Estado Novo is crucial to the orderly progress of the country. To accomplish this the DGS was modernized, expanded and its abilities enhanced. Immigration which was under the Minister of Security responsibility became front and center in the development of the country. For Portugal not only became a desired destination for unemployed Germans but also a top destination for Nazis and other who had collaborated with them who had talents and knowledge the Portuguese needed. Over half a dozen of closed cities were established providing these people with secure locations to work. While their presence did upset many Jews the Portuguese tried to make sure those involved in holocausts were not offered refuge. Portuguese DGS special forces working with Portuguese operatives became equal to Soviet or American agents trying to execute foreign assignments. While not able to perform as many operations as larger countries they nonetheless gained respect.

    Questions / Comments?

    In two weeks on November 10 we will return with Culture and Sports.
     
    1940s - The Post War Years (1945 - 1949) - Culture & Sports
  • Lusitania

    Donor
    1940 – 1949 (cont.)

    The Post War Years 1945 – 1949 (cont.)


    Culture and Sports
    Culture
    The Minister of Culture and Sport, Antonio Ferro continued using Portuguese radio stations to provide the people with information and promote nationalism with emphasis on Portuguese music and culture programming. As the number of radio stations grew throughout the nation covering every corner of the country, national programing spread and so that all people could listen to national news or government announcements. The popularity of the radio stations continued to be the primary means of providing the average Portuguese with information on health, economy, and educational shows while at same time providing entertainment and music.

    The production of radios continued to be one of the primary focus and an important priority for the government. Following the end of the war, both FAPAE and EFACEC increased their production of radios and other electronics for Portuguese market. By 1949 radio prices had decreased by over 70% from 1940 level thus allowing many more Portuguese to buy them. By 1950 the biggest deterrent to buying a radio was lack of electricity as opposed to affordability.[1]

    The second half of 1940s continued what became known as the Portugal’s golden age of movies as the production of movies continued over 20 a year well into the 50s. The types of movies also changed following the war with the addition of romance, action adventure as well as thrillers being made by Portuguese movie companies for first time.[2] The number of movie theatres continued to grow, and even smaller towns got their first theatres. News reals shown before movies continued to be the primary means in which Portuguese got to witness new developments in the country. Infrastructure development and growing industrialization was prominently featured. During the war the news reels had shown the Portuguese armed forces battles in Southern France, Germany and East Indies. This continued into the late 40s with continued showing of civil war in India, communist persecution of Europe and communist advances in China and elsewhere.[3] “Living in harmony” and “We are all Portuguese” continued to be the two primary themes of radio programming and movies. Movie companies were instructed to include people of different races and parts of the empire in movies. Comradery was the general idea and that Portuguese of various nationalities of ethnic backgrounds would band together to defeat an enemy or overcome a natural disaster.[4]

    In 1945 the Ministry was revamped and renamed Ministry of Information, Culture and Tourism “Secretariado Nacional de Informação, Cultura Popular e Turismo” (SNI).

    upload_2019-11-10_11-51-19.png

    Ministry of Information, Culture and Tourism headquarters in Lisbon

    Sports
    The expansion of the youth sport centers continued well into the late 1940s and beyond, the cancellation of the 1948 Olympics marked the third Olympics that had been cancelled due to war. In the second half of the 1940s the number of youth sports centers in Africa, India and Asia exploded and thousands of youths began taking part in organized sports at these centers.

    In 1946, the first Portugal games were organized in Lisbon. Over 5,000 athletes in over 30 sports competed showcasing Portuguese athleticism. The sporting event was an enormous success and all venues sold out, it was telecast live on radio and filmed to be shown later in theatres. New Portuguese records were set in every sport. Athletes came from every part of country and over 35% were of African, Indian or Asian descent. The event was scheduled to be held every four years and be held between the Olympics. The second Portugal games were scheduled to be held in Luanda from 5 – 22 July 1950.

    In 1946 Lisbon made a bid to host the 1st Olympics after the war to be held in 1952. Lisbon faced several cities from the US, as well as Amsterdam. Lisbon received several votes from Europe, but the deciding factor was Portugal’s agreement with Brazil to support them in their bid in hosting the 1950 FIFA world cup.[5] In the 3rd round Lisbon beat Los Angeles by one vote with the votes from Brazil and several South American countries.

    Portuguese soccer mushroomed through the country. In 1947 following the success of Portugal Games, it was decided to expand the “Taça de Portugal” to include all teams in country including those from Africa, India and Asia. In 1948, the first year of National “Taça de Portugal” regional winners went on to compete in a competition of 16 teams grouped in 4 groups. The tournament was held in Luanda. The tournament was the first time that teams from different regions faced off against each other. Benfica from Lisbon won the final game beating hometown favorite Sagrada Esperança 2-1. In 1949, the tournament was held in Lisbon and Sagrada Esperança won 3-1 against Sporting Lisboa.[6]

    -----------------------------------------------------------------------------------------------------------------
    [1] In 1948, the first movie projectors and music recording equipment made in Portugal began being manufactured by the two companies.

    [2] The most popular movie of 1948 was “Agents of Deception” a thriller about Portuguese diplomats in Hungary pretending to be supportive of Nazis while secretly hiding and smuggling out thousands of Jews and other prosecuted individuals. Gestapo agents were made to be cruel meanwhile the Portuguese daring. It also featured Portuguese Africans as pilots and ship crews risking their lives to rescue these refugees.

    [3] The primary purpose of many of the news reels was to provide the impression of a dangerous world and that Portuguese government was the only one which could protect the Portuguese people.

    [4] In 1949, the movie “The Giant” featured the first interracial family in Portuguese cinema as the primary cast members. The movie was set in Angola with a domineering white husband who was abusive to his black wife, at the end of the movie he was saved by her and ended with him begging her to forgive him for all bad things he had done and that their unborn child would grow to live in a better world.

    [5] In 1946 at the first FIFA meeting after the war Portugal supported Brazil’s bid for the FIFA world cup to be held in 1950.

    [6] It would not be till the 1960s when air travel between different regions of Portugal became affordable and the Portuguese Super League of 30 teams from all parts of the country was founded.


    Culture and Sports two major planks of the Estado Novo. Culture was a means to showcase the government message and to mold the minds of not only the young but also the older generations. Radio shows and movies were forefront in that battle. Radio shows both entertainment and serial shows were directed to show the country, that included Africans, Indians, Asians and Emigrants living alongside the traditional European Portuguese. Racism and daily issues were not ignored but confronted and shown that those who espoused such views and opinions did not succeed and those who believed in an inclusive country succeeded and were happy. Movies, here we have another major difference were iOTL the country could count on making 2-6 movies a year, iTTL the richer country was churning out 1-2 a month. There was a huge appetite for the Portuguese movies. They were comedies, serial dramas (with a moral theme), historical from both medieval to modern, including the first WWII movies with Portuguese in forefront. The other plank was sports where Portuguese government put a huge effort in advancing sports in the country with regional and national sporting events very popular and almost always sold out. The Portugal games would be a testing for the country as it won the right to host the 1952 Summer Olympic Games. iTTL Helsinki was devastated in the war and was not bidding. Questions / Comments?

    Note: Due to posting schedule and need to space out the remaining two posts before we start the 1950 this post is a little shorter than normal. We promise to make it up in future.

    In two weeks on November 24 we will return with 1st of 2 posts on Foreign Affairs.
     
    1940s - The Post War Years (1945 - 1949) - Foreign Affairs
  • Lusitania

    Donor
    1940 – 1949 (cont.)

    The Post War Years 1945 – 1949 (cont.)


    Foreign Affairs (1 of 2)

    The Minister of Foreign Affairs, José Caeiro da Mata, diplomatic style changed after the war as Portugal’s need to placate the world was no longer needed. Portugal instead looked for partners whom it could work with and trade. It respected other countries and in turn Portugal expected the same respect from other countries. This was made difficult by Portuguese own actions both during the war and after. As greater scrutiny of Portugal’s dealings with Nazi Germany came to light Portugal’s good boy image gained during the war was tarnished. Then its involvement in both the ongoing civil wars in the Indian Subcontinent and former Dutch East Indies did not earn it any favors. At same time the Portuguese attempted to help both Brazil and Argentina’s own development by getting involved in supporting and providing both countries financial support against the US wishes, making the US even angrier at Portugal. As if this was not enough the Portuguese then got themselves tangled with Spain and pulled off controversial debt for colonies trade in December of 1949.

    The saving grace for the Portuguese was the seemingly unstoppable spread of communism. In Europe following the WWII the Soviets installed communist governments in their occupied countries while on the other side of the world they did the same in North Korea at same time communist forces defeated the Nationalist Chinese forces forcing them to flee the mainland. Just as the Americans and western allies became alarmed at the spread of communism the attempted communist coup in Czech Republic and Germany frightened everyone and focused American attention on communist this led America to seek out allies to counter communism and the hence start the “cold war” powerplay between the two super powers that would define the 2nd half of the 20th century. Portugal who was a stanch opponent of communism and been battling communism internally for the last 20 years suddenly found itself on the American good side once more. The greater dangers of communism made the Americans seek out any and all allies and with the growing Portuguese military, economic and political strengths the Americans decided to work with Portuguese instead of against them.

    USA
    The Portuguese ambassador to the USA role was two-fold to present Portuguese position to American leaders, promote Portugal and its overseas provinces to American businessmen and provide American public and press with positive image of the country. After Portugal joined the Allies it appointed João António de Bianchi as its new ambassador and for the first two years relations between Portugal and USA improved but as the post war began relations between the two grew steadily worse. Ambassador Bianchi visits to the white house or appearances in front of several American congressional committees defending Portugal were unsuccessful. In 1947 the Portuguese appointed a new Ambassador, veteran statesman Pedro Teotónio Pereira who had been instrumental in representing Portugal in Madrid and maintaining Nationalist Spain neutral was sent to Washington to rehabilitate Portugal’s image and relation. Unfortunately, he had his hands full but just like in Madrid Ambassador Pereira seemed to work magic.

    First major issue he faced was US freezing of Portuguese assets by US government.[1] Together with the British Ambassador Lord Inverchapel an agreement was achieved in which Portugal returned a large amount of gold and in return the Americans lifted their trade restrictions and unfroze Portuguese assets. That alone would have been a victory for Portugal, but Ambassador Pereira received even greater benefit with Portugal receiving over 1 billion dollars in war reparations from Germany and Austria. While in Washington Ambassador Pereira was in constant contact with two of Portugal’s most important South American trading partners and attempted to convince the Americans to provide both Brazil and Argentina with access to US and Europeans markets. Here the powerful American political lobby worked against Ambassador Pereira and he was only able to help Brazil. Not that the effort was not lost on Brazilian and Argentinian leaders who praised Ambassador Pereira for his efforts.

    No sooner had he resolved the issue than Portugal’s involvement in Indian subcontinent and South East Asia became flash points in American-Portuguese relationship. Portuguese occupation on several islands was also a point of tension between the two countries. In both cases the Portuguese ambassador employed two tactics at same time. Talking to both President Truman’s government and congress while portraying the Portuguese as defenders of freedom and capitalism against the forces of anarchy and communism. Portugal’s image improved a little but when Portugal and Nationalist China formalized Macau’s expanded size in return for debt relief and more arms the Portuguese were once again seen as gaining advantage over hard pressed country.

    Relations between the Portugal and America took another hit with the Portugal – Brazil and Portugal - Argentina trade and economic agreements. The American anger towards the Portuguese was felt by Ambassador Pereira who was summoned to the White house not once but a total of four times in regard to what the US deemed to be Portuguese meddling in US interests. Ambassador Pereira defended Portugal by insisting it was only providing assistance to the two South American countries that were attempting in doing the same thing it was doing, that being industrializing and controlling their own development.

    The proclamation of the Portuguese Federation was one of the issues that both taxed Ambassador Pereira and Portuguese Embassy the most. Since 1945 the Portuguese embassy and its consulates had doubled in size, but the announcement was such a huge topic of debate and interest that both Ambassador Pereira and other officials were in constant demand for interviews and speaking engagements. While all this was going on Ambassador Pereira was defending the Portuguese Federation to the hostile American government.

    Following the Iron Curtain Crises, Ambassador Pereira was instrumental in representing Portuguese interest in the creation of NATO. He was present at President Truman’s signing of the treaty and signed on behalf of Portugal.

    upload_2019-11-24_1-13-58.png

    Portuguese Ambassador Pereira standing behind President Truman during the signing of NATO

    As the decade ended, Ambassador Pereira’s diplomatic skills were once again very much in use as he defended the Portuguese annexation of Spanish African colonies in return for forgiving all of Spain’s external debt. He argued very successfully that Portugal’s offer had helped Spain much more than IMF and World Bank offer to pile on more debt while stripping Spain of same colonies. He put forth several arguments and challenges to Americans to visit the former Spanish colonies and see how the Portuguese were investing and developing the territories.

    All during the same time Ambassador Pereira defense of Portuguese political situation he repeatedly pointed out the contrast to the plight of African Americans who did not have right to vote in their own country where as in Portugal and its overseas provinces Africans and other non-Europeans were gaining new rights and opportunities denied to the African Americans. At same time he put forth that Portugal was doing as much or more that US to help lift the world out of poverty, eradicate disease and establish order in world. As Communism threat grew and Americans became more alarmed Ambassador Pereira portrayed Portugal as a natural ally of the free world and US against the communist threat. When news of communist spies in the US provided Soviets with nuclear and other technology the Portuguese made a point of portraying Portuguese own internal struggle and fight against communist and their allies as example to the Americans (not that they followed Portuguese example but many Americans sensed that maybe the Portuguese had a point).

    All during his time in Washington the Portuguese Ambassador lobbied unsuccessfully for the American government to lift its economic trade restrictions against Portugal. In the late 1948 as the extent of Portuguese industrialization and development became evident, he portrayed the development as good for the US and the development of the free world. When criticism was levied by some against Britain for its part in the industrialization the Portuguese blamed US government for its policies and argued that the US continued to support and promote American industry to the detriment of British companies and it was completely within their right to develop new markets and expand their operations.

    Britain and British Empire
    At the end of WW2, the Portuguese government began a systematic review of its diplomatic corps with the liberation of many European countries. Many junior diplomats especially from established embassies were taped to fill the many new positions. This left the Portuguese Embassy in London in need of a strong and experienced individual, luckily for the government its current ambassador since 1943 Domingos de Sousa Holstein Beck had skillfully represented Portugal both to the British and the strong Allied presence in the city.

    This was a delicate time for the Portuguese as negotiations between Portugal and Britain regarding the Portuguese-British debt and the need for British assistance in industrialization of the country was foremost on the duties of the Ambassador. Unfortunately, due to the delicate situation of the Portuguese American relationship he was also called upon to keep the British on Portuguese side which in the after-war environment proved to be a full-time job.

    The Portuguese had two major things in its favor, the perilous situation of British finances and the strong trade between the British and Portuguese provided Britain with much needed revenue and more importantly economic activity. Ambassador Holstein would utilize these factors to portrait Portuguese-British economic interaction in a very beneficial light. When Britain introduced rationing to deal with the dire economic situation the Portuguese assistance increased with additional export of wheat and beef to Britain.

    While Portuguese trade with Britain was public knowledge the level of assistance and debt relief was kept confidential and many British and other countries were baffled at the British accommodation of Portuguese military purchases, acceptance of British companies’ sales and investment to Portugal. But more startling to many was the British support for Portugal in diplomatic spats with USA, Australia, South Africa and even in Indian Subcontinent where Portuguese involvement in terms of supplying several warring factions.[2]

    Relations between South Africa and Britain suffered as a result of the British stand with the Portuguese. Anger in Pretoria regarding British sale of advanced military hardware including aircraft carrier and other ships, a wide array of planes and tanks made the South African government angry. This was especially true after the proclamation of the Portuguese Federation and the granting of citizenship rights and privileges to all Africans living in Portuguese overseas provinces.

    The proclamation of the Portuguese Federation caught the British government and public by surprise and Ambassador Holstein held many discussions and was featured in many public and private lectures regarding the Federation. Opinion in Britain and British Empire was split on the Federation with some seeing it as a means to continue the suppression of non-Europeans while other especially the conservatives as a sell out and something that needed to be avoided by British at all costs.

    One of the most controversial British government decisions was the authorization of the Portuguese to become partners in several British business enterprises, of which the investment in Bristol Aircraft manufacturer was foremost. Bristol at the time was involved in the development of long-range plane. When the British government did nothing to stop Portuguese investment there was many in opposition and elsewhere who cried of government sellout. That these investments made the projects both cheaper for the British government and guaranteed their success did not enter into the oppositions criticism.

    [1] See Post War Years 1945 – 1949, Politics, Changing World – USA.

    [2] After the war the Australian government pressed the British to exert pressure on the Portuguese to withdraw from the occupation of several former Dutch East Indies islands. Unfortunately, as civil war progressed and presence of communism in the East Indies intensified the Australian attitude towards the Portuguese warmed up as they became seen as an ally against the communist threat.



    Foreign Relations with other countries would form a great part of the Portuguese character, for how they were perceived and treated would be portraited in Portuguese culture and manner the government and people reacted to the outside world. The Portuguese had been through so much that at the end of the 1940s they themselves hardly recognized themselves. Gone was the person who doubted their place in the world and who thought other countries were better than them. Replaced by a people who believed they were equal to any in the world and were embarking on a new path which earmarked the Portuguese at the forefront of a new era. Facing the Portuguese were the country's two main allies and also adversaries who were baffled at what to make of the Portuguese and their impossible journey and new endeavor. The ones who the Portuguese hoped to bring on their side the Americans only begrudgingly allied themselves with the Portuguese due to the new communist danger gripping the world. The British were in shock, more shell shocked than anything else. For while the had survived the war their place in it was forever changed. A new master had emerged who demanded adherence to its will. Meanwhile a country whom the British had for centuries take for granted had out of the blue emerged with renewed strength and spirit who while helping the British demanded in return a new partnership. One the British were reluctant and unsure how to proceed. Questions / Comments?


    In two weeks on December 8 we will return with 2nd post on Foreign Affairs.
     
    1950s
  • Lusitania

    Donor
    1950 – 1959

    The 1950s is characterized by the economic boom that would lift the world from the depression and destruction of WWII. By its end, the world had largely recovered from World War II and the Cold War developed from its modest beginning in the late-1940s to a hot competition between the United States and the Soviet Union by the early-1960s. Europe, Africa, Asia and the Americas were all theatres in which the two sides and their proxies battled for influence and power.

    Clashes between communism and capitalism dominated the decade, especially in the Northern Hemisphere. The conflicts included the Korean War at the beginnings of the decade and the beginning of the Space Race with the launch of Sputnik 1 at the end of decade. Along with increased testing of nuclear weapons (such as RDS-37 and Upshot–Knothole), this created a politically conservative climate. In the United States, the Second Red Scare caused Congressional hearings by both houses in Congress and anti-communism was the prevailing sentiment in the United States throughout the decade. The beginning of decolonization in Africa and Asia took place in this decade and accelerated in the following decade.

    The Portuguese Empire officially ceased to exist on 14 of December 1950 and on 15 December 1950 the Portuguese Federation was proclaimed. The government and Portuguese people then set about working on what amounted to a momentous task uniting all parts of the country into an equal Federation. The colonies or as Portuguese referred to them overseas provinces, and all its negative connotations were abolished and all people regardless of origin, religion or color were integrated into the country as Portuguese. For the next decade the country would not only endeavor to integrate those people into a single country but also develop the country into an economic and political force.

    World reaction to the declaration of the Federation would dictate not only Portuguese role in the world but also its people attitudes towards the various forces arrayed against it.

    The Portuguese would endeavor over the decade to unite the different regions into a single country, investing in infrastructure while modernizing the country with emphasis on education and health. Portuguese companies buoyed by growing economy and country expanded their operations bring new products and services to the Portuguese market. Immigration to the Federation strengthened the country by bringing in new skills and knowledge.

    On the global level the country worked hard to both assert itself as valuable ally in the fight against communism while at same time displaying newfound political assertiveness in various regional and global affairs. At times Portuguese actions contradicted US and other allies’ own interests.

    ___________________________________________________________________________________

    The historical information on Portugal and the major events impacting the country are presented in the following sections:

    We now start the Country section.
     
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    1950s - Country
  • Lusitania

    Donor
    1950 – 1959 (cont)

    Country

    The Portuguese Federation came into existence on 15 December 1950. A country that now encompassed territory and provinces on three continents. It would take the country a decade to mold all the territory into a truly unified and equal country. Complicating the matter were the new territories acquired from Spain to Portugalize. In addition, two theatres (Indian Subcontinent and East Asia) were afflicted by war and insurrections and it took till middle of the decade for Portuguese borders in those regions to be secured. Meanwhile the French protectorate of Morocco moved towards independence and its people rejected Portuguese presence in North Africa setting up conflict and eventually war between newly independent Morocco and the Portuguese Federation.

    At same time the country secured its borders it also helped several other people defend their own freedom and in doing so they looked to the Federation for both economic and military support. These smaller countries (Galicia in Europe, Guinea Boke in Africa, Lombok & Bali in South East Asia) threatened by their larger and hostile neighbors aligned themselves with the Federation for protection and more importantly economic opportunities.


    6MKKpWg.png

    Map of world showing relative position and size of Portuguese Federation
    The provinces include territories that only became provinces in the late 1950s


    here is the link to the above map: https://images-wixmp-ed30a86b8c4ca8...0.7uiR_A-ZYjOeiCnXmuxLBMrRh5L2AChe2j4a1URVZ1w
    I would like to thank @Reagent for his excellent cartography. Thanks



    The country section provides readers a good understanding of the size and location of the various provinces. We will start explaining the various changes to the world seen in the map above in the next post when we start the world section. Questions/ Comments?

    Please return January 5 as we start posting the World Section.
     
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    1950s - World
  • Lusitania

    Donor
    1950 – 1959 (cont)

    World

    In 1952 the UK became the third nuclear power followed by France who developed theirs in 1958. In 1952 the US developed the Hydrogen Bomb a weapon much more devastating than the nuclear bomb. This was followed by Soviets in 1955 and the UK in 1957. For the whole decade, the world lived under nuclear threat and was subject to diplomatic push and witnessed several military actions that became known as the Cold War as the two superpowers; US and Soviets vied for global domination and influence.

    In the late 50s a new third group emerged called the non-aligned movement which strived to maintain neutrality and peace between them and the superpowers. Its influence was limited though as most countries either sided with Soviets and USA in the global cold war, to many people’s surprise the Portuguese Federation applied to join the group and indicated it was prepared to discuss its participation in NATO as part of the application. But the members of group feeling Portuguese Federation represented the forces it sought to reject rejected Portuguese Federation application. This angered the Portuguese who saw the non-aligned movement as the perfect organization to resist both the Soviet and USA continued diplomatic and economic pressures.

    The state of Israel became a beacon for millions of Jews around world and thousands of Jews from all parts of the world migrated there. Israel’s “Law of Return” granted automatic citizenship to any Jew migrating to Israel. Majority of all Jews living under Arab rule migrated to Israel and countries like Iraq and Iran witnessed their entire Jewish population leaving while rest of Arab states and North African Muslim majority colonies saw the migration of close to 90% of their Jewish residents. Portugal’s new Jewish population also began migrating to Israel. Portuguese government granted any Portuguese Jew who migrated to Israel with dual nationality and ability to move between the two countries at will. By the end of the decade about 50% of the Jews living in Portuguese Federation migrated to Israel. Portuguese Federation’s continued unwavering support of Israel was strengthened by extensive economic support and economic projects of mutual interests such as agriculture and electronics with Israel. Several joint Portuguese Israeli enterprises were started. Military support and sale of military equipment also occurred in secret prior to Suez Canal Crises and openly after.

    In the US, the 50s were characterized by the baby boom and strong economic growth especially in USA, Canada and other western countries. The US government was transferred to the Republicans with the election of Eisenhower as president who continued America First policy and dominance of western world both economically as well as militarily. The American government’s opinion on Portuguese Federation changed slightly as the country’s economic strength was noticed but as the decade progressed become more antagonistic towards Portuguese Federation since the Federation was not seen as a reliable partner. Portuguese Federation’s continued interventions and meddling in East Asia, Indian Subcontinent, Spain and Africa drew continuous American government criticism. The Portuguese government countered that Portuguese non-white citizens had more rights, economic and educational opportunities than non-white citizens in America. Meanwhile the US “tolerated” Portuguese Federation due to its continued anti-communist stand and need for strong allies. Even so the US showed its displeasure with Portuguese Federation by blocking several sales of American technology and the setup of satellite factories in the Federation. In the US anti-communist hysteria reached new highs as politicians, entertainers and government employees were investigated and blacklisted. In 1959 the US admitted both Hawaii and Alaska as the 49th and 50th states.

    The Soviet Union development of Nuclear weapons put Western Europe on edge and made the western world completely reliant on the US nuclear defense umbrella. In 1953 Stalin passed away and Khrushchev became Soviet Union’s new leader. Even so during the 1950s tensions with West continued to escalate. In 1956 Khrushchev began releasing millions of political prisoners but did not tolerate any criticism or descent within the Soviet Union or from its communist allies. The Soviet Union and its Eastern Europe communist allies rebuilt their worn torn economies and made crucial steps in industrialization and economic growth. Hampering them was the inefficient central planning model.

    In 1954 France suffered two major blows to its colonial empire. In Algiers, Algerian Muslims began a rebellion against French rule. Meanwhile France was forced to withdraw completely from Indochina after their defeat to Vietnamese Communists. French Indochina was divided into four separate countries: Laos, Cambodia, South Vietnam and North Vietnam (Communist). In 1956 France together with UK attacked Egypt after that country nationalized the Suez Canal. The attack was opposed by both the Soviet Union and US; and US financial and diplomatic strength forced the French and UK to withdraw from Egypt. The Arabs responded by imposing an oil embargo on Britain and France luckily the Portuguese Federation was able step up and increase its oil sales to both countries. The French 4th Republic government was not able to withstand criticism of the crises and collapsed. WWII hero Charles de Gaulle became the President of France but demanded additional presidential powers. In 1957 the French 5th Republic was founded with De Gaulle as its first president. He quickly dissociated France from US, removing France from NATO.

    In 1958, he created the French Community and demanded that all French Colonies either choose more autonomy with the French Community or outright independence and no French support. All French colonies except Guinea chose to belong to the French Community. When Guinea descended into civil war and anarchy the following year, De Gaulle let the situation deteriorate to provide other French colonies an example of what happens without French support. De Gaulle then sent French troops into Guinea to “establish order”. The plan backfired on the French because they did not send enough troops into Guinea to “restore peace” and the French suffered over 1,000 casualties and were forced to withdraw from all parts of Guinea except around the capital. When in 1959 Guinea joined the French Community, it was a much smaller version of the original colony.

    At same time, former French protectorate of Morocco tried to push the Portuguese out of North Africa. Its forces were badly defeated, and it was forced to cede additional land in the peace negotiations. A direct result of the Moroccan-Portugal War was the wave of anti-European demonstrations and attacks. The remaining French colonists and the small Moroccan Christian community fled Morocco and after some altercations settled and took over the Moroccan enclave of Tangiers. De Gaulle was then faced with either supporting the refugee’s demands that Tangiers become part of France or opposing them which would anger the French in Algiers and France but supporting them would hurt France with Algiers and other French colonies. In the end, De Gaulle decided to support the refugees and negotiated with Morocco for its transfer to France. France provided Morocco with financial, military and other support which helped Morocco, but the diplomatic situation resulted in France losing much influence throughout Africa and Arab world. The Portuguese war against Morocco and the Portuguese Guinea insurgency support made De Gaulle question France’s relationship with Portuguese Federation and several military and civilian projects were cancelled at end of decade. In 1959 France became the 4th nation to explode a nuclear bomb achieving one of De Gaulle objectives of no longer needing to live under US nuclear umbrella.

    In the UK, the conservatives returned to power in the 1951 elections and Winston Churchill became the Prime Minister. In 1953, he suffered a stroke and Anthony Eden became the new prime minister. In 1955 Eden led the Conservatives to victory in the election. In 1956 following the Nationalization of Suez Canal by Egypt, the UK and France launched a military operation to retake control of the canal. The US threatened the UK financially and UK was forced to back down. British influence in the Middle East diminished and the US and Soviet Union became the dominant powers in the Middle East following the Suez Canal Crises. The Suez Crisis caused Eden the leadership of the conservative party and he was succeeded by Harold Macmillan. British – American relationship during the conservative’s term was regarded as most important foreign relationship and British became associated as pro-US by other European countries and lost much influence in Europe especially in France. In Africa, the UK granted several of its colonies independence with Libya becoming independent in 1951, Sudan in 1958 and Ghana in 1957. In 1952 British King George VI died and was succeeded by his young daughter Queen Elizabeth II.

    During the Korean War, Japan was granted independence by US but remained very much dependent on US militarily for protection and continued aligned with US foreign policy.

    In 1955 the Soviet Union and its Eastern Europe Communist countries formed the Warsaw Pact as a counter to NATO. In 1959 the first cracks in the Soviet dominance of Eastern Europe appeared. Hungary’s communist government broke with Soviet model and attempted to give their citizens greater freedoms. The Soviets afraid that the defiance would spread sent in its forces and replaced the Hungarian government. Over 350,000 Hungarians fled the soviet crackdown and oppression. The Portuguese Federation accepted close to 25,000 Hungarian refugees. In 1959 the Soviets began the Space race with the first manmade object into space, the “Sputnik” satellite was successfully launched. Later in year Soviets also tested their Intercontinental Ballistic Missile (ICBM). The Americans responded by founding National Aeronautics and Space Administration (NASA) to take an American into Space. Within two years both countries were launching satellites into space and NASA was first to send and safely retrieve animals into Space.

    In Europe ten countries (France, Italy, Germany, Netherlands, Belgium, Luxemburg, Austria, Czech, Basque and Catalonia) formed the European Economic Community in an attempt to provide Europe with same economic leverage as US and Soviet Union.

    In 1959 Cuba was seized by communist rebels under the command of Fidel Castro.

    The World Section of the 1950s will include the following sections:


    The world section is where we discuss the major events that transpired throughout the world and also where we discuss what is happening in countries that linked, allied or crucial to the Portuguese Federation. Questions/ Comments?

    We will start with India next.
     
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    1950s - World - Indian Subcontinent
  • Lusitania

    Donor
    1950 – 1959 (cont)

    World (cont)


    Indian Subcontinent
    The Indian subcontinent continued to be rocked by civil war for about half of the 1950s only emerging from war in 1955 fragmented and bitterly divided. The British people and government watched in horror at the jewel of the British Empire descended into nationalistic, religious and ideological war. Over 100 million people were displaced in the fighting and over 5 million people were estimated to have died due to war, disease and starvation.

    Repeated United Nations resolutions and attempts to bring about peace in the Subcontinent were ignored by the warring parties till the people were exhausted and the countries weary of war. In 1954 a general cease fire went into effect and over the summer after several small and major violations the parties finally agreed to start peace negotiations. On 10 February 1955, the Indian Peace Treaty was signed by the eight warring parties (Republic of India, Kingdom of Baroda, Democratic Union of India, Peoples Republic of Travancore, Tamil Nadu, Kingdom of Mysore, Kingdom of Hyderabad, and Pakistan) and three observers (UK, France and Portuguese Federation).

    Baroda
    From 1950 to 1952 the Kingdom of Baroda was locked in a battle with communists on three fronts: Kutch (Mandav Hills and Halar Plains, North - Eastern border Danta and Abu Hills and in south in the Rajpipla Hills. In 1951 Kingdoms of Hyderabad and Baroda signed mutual defense treaty. From January to April 1952 the combined attack by Indian Nationalist forces from north and Baroda forces from South defeated the communists in the north and east leaving the two armies facing each other and unfortunately tempers flared leading to the two forces exchanging fire and several border skirmishes broke out. Peace returned to the border between the two countries when the Indian army was forced to withdraw most of forces from the border to deal with losses in Central province and the fall of Nagpur to the communists.

    In the Kutch, Baroda forces pushed the communists out of the Manday Hills and Halar Plains but were unable to defeat their entrenched positions in the Gimar Hills. In June 1952 Marasha Pratap Singh Rao Gaekwad king of Baroda requested assistance from Portuguese Federation and in July 1952 Portuguese 3rd Infantry Division arrived in Diu from Angola. On 10 August 1952 Portuguese 3rd Division launched Operation Bahadur. The communists were taken by surprise and by 31st of August the last communist position in the Gimar Hills was eliminated. This left the Kingdom of Baroda in control of the entire Kutch and allowed it to move additional troops to the eastern front. On 20 September 1952 Marasha Pratap Singh Rao Gaekwad and Democratic Indian Prime Minister Vinayak Damodar Savarkar signed a non-aggression and cooperation agreement. They pledge to assist each other in fighting the communist rebels and opposing Nationalist India aggression.

    In October 1952 Baroda forces attacked communist forces in the Chota Udaipur Hills pushing the communist east and into the path of the advancing Indian Nationalist forces. Meanwhile in the south the Portuguese 3rd division attacked the communist forces in a series of battles. Portuguese defeated and liberated the cities of Jawhar, Dahanar and Mahim where Portuguese forces finally made contact with the Democratic Union Indian (DUI) forces which were moving north. There was an uneasy truce between the Indian / Commonwealth forces and the Portuguese forces. On 10 November 1952 Portuguese forces withdrew north when Army of Baroda arrived.

    From 1953 to 1955 when the Indian peace treaty was signed the two states, Kingdom of Baroda and DUI, lived in an uneasy truce along their border while still coordinating their forces on several occasions against both the communists and Nationalist India.

    Democratic Union of India (Bombay)
    In 1949 when General Cowasji Jehangir situated in Pune took up the mantel of defending democracy in India and several former India opposition leaders flocked to his side and together they formed a democratic Indian state providing a glimmer of good news for the western powers especially UK. The emergency of General Jehangir and Democratic India was greeted with hope and calls for British and Commonwealth support grew louder in UK. The socialist party of Clement Atlee fell in a motion of no confidence and in early elections during autumn of 1949 the conservatives under WWII leader Winston Churchill won a majority. UK immediately ordered additional British naval ships and aircraft carrier to the Indian Ocean.

    UK support, both militarily and financial provided Democratic India with the legitimacy and impetus to move against the communists. During 1951 they are able to reach Portuguese forces who had been operating outside of Goa’s borders in order to protect it from communist attacks. They reached Belgaum and Baljipur to the south and east reaching Mysore and Hyderabad borders. In the north, they gradually pushed the communist forces toward Bombay. On 19 October 1951 British and commonwealth soldiers (UK, South Africa, Canada, Australia and African troops) attacked Bombay. The city was easily taken as most communist forces were fighting in south. The liberation of Bombay was a huge moral boast to the Democratic India, but the communists refused to surrender and continued fighting. As 1951 came to a close, Democratic Indian forces were able to link up with commonwealth troops from Bombay.

    The situation in Western India during 1952 was complicated with several kingdoms fighting nationalist India and everyone was fighting the communist threat. A decision was made to negotiate non-aggression treaties with all Indian states till the communist threat was eliminated with hope that a union could be negotiated later. In 1952, Democratic India with the assistance of the commonwealth launched amphibious attacks in Malabar while at same time continuing to push the communist rebels north. In October, they reached the border of Baroda and careful to keep peace between the two parties continued north attacking the communists. France, Italy and most of western Europe recognized the Democratic India and provided it with weapons and support. In Malabar, Calicut was liberated on 12 March 1952 and Bangalore on 10th of April, thus defeating the last major communist rebel groups in South Kanara allowing the DUI forces to continue to push the remaining communist forces south towards Travancore.In Eastern Indian subcontinent the nationalist forces in Madras were in disarray during the spring of 1953. They had lost ¾ of their territory to Mysore and Hyderabad as well as the Tamils. In June 1953 Omandur Ramasamy Reddy, a politician under house arrest in Madras was instrumental in convincing General Kodendera Subayya Thimayya, commander of Nationalist Southern Army to switch allegiances to Democratic India. The negotiations were successful and on 29 September 1943, all lands controlled by Nationalist forces south of the Hyderabad Godavari officially became part of DUI. Meanwhile in Malabar in April 1953, Democratic forces and Travancore forces clashed at Shoranur. On 12th of May, DUI armed forces once again tried to break through Travancore defenses but were unable. In August 1953, DUI forces and Tamil Nadu forces clashed on the outskirts of Coimbatore but like Mysore before them they were forced to withdraw and return to Malabar. In the north in December 1953, DUI forces defeated the last communist forces facing them and reached the Nationalist forces close to Indore. The meeting of the two India forces was very tense and both regarded the other with suspicion and resentment.On 5 January 1954, Democratic Union India held its first elections in which the Nationalist Party received the most votes and M. A. Ayyangar became the country’s first Prime Minister.

    Hyderabad
    On 15 August 1950, Hyderabad forces defeated the Indian IV army at battle of Akola and the state of Berar was occupied and annexed by Nizam of Hyderabad.[1] For rest of the year and all of 1951 Hyderabad forces launched several offensives against communist rebels within Hyderabad. In October 1951 to the west Bellary was occupied and contact was established with Mysore to the south. At end of 1951 the communists have been defeated and pushed out of the country. On 10 January 1952, Indian Nationalist forces attacked Hyderabad again using Central Province and Bastar as base, they launched an attack on Hyderabad with 250,000 troops code named Operation Polo. The Indian forces made good progress in the first week advancing over 50 kilometers but on 16th of January the Hyderabad forces stopped the Indian advance and gradually pushed the Indian forces out of country. On 10 February 1952, nationalist forces were defeated at the battle of Nagpur and on 12th of February lost the battle of Kutru in Bastarfor. In the east on 16th of March, nationalist forces lost the battle of Godavari and Hyderabad was able to cut off the Nationalist forces in Madras from Nationalist India. On 1 June 1952, Nationalist forces attacked Hyderabad again in the 2nd battle of Nagpur but were unable to take the city and withdrew again on 15th of July. In October Hyderabad repulsed two attempts by Nationalist forces from Madras to link up with forces from north. The attacks from south ended when the rebels in Madras attacked Indian Nationalist forces forcing the South Nationalist army to withdraw south and deal with new threat.

    Mysore
    Jayachamarajendra Wadiyar the ruler of Princely State of Mysore was at first a strong supporter of a unified India but with threats to him and all of India from the communists he slowly came to the conclusion that the best way to help India and the people of Mysore was to defend it from those wishing to destroy it. In 1948, any hope he had of a united India was dashed by the declaration of General Cariappa as president with dictatorial powers and imposition of martial law. For next two years, he used his immense wealth to arm and train Mysore’s armed forces.

    In 1949, a non-aggression pact and peace treaty was signed with its neighbor to the North, Hyderabad. Both countries were landlocked, but an agreement was made with Portuguese Federation to use its ports to transport weapons and materials. In 1950 Mysore with the support of Portuguese armed forces and navy seized the port of Karwar in North Kanara after both Mangalore and Calicut fell to communist forces. From 1950 to 1952 Mysore forces along with DUI Indian forces battled communist forces in South Kanara and Malabar. Democratic forces with British assistance went around Mysore occupied areas in North Kanara and landed in Madras. Mangalore and Calicut as well as most of state of Madras was liberated by DUI and communist forces withdrew towards Travancore. In January 1953 the Kingdom of Mysore annexed the state of Coorg and all Kanara between Karwar and Kandapur. From 1951 to 1952 Mysore conducted raids into Coimbatore and Salem against communists operating from those provinces. In October 1952, they were forced to withdraw due to the uprising of nationalist Tamil forces. In March 1953 Mysore and Hyderabad forces defeated nationalist forces in the battle of Anantapur.

    Tamil Nadu and Travancore
    From 1948 to 1950 Tamil Nadu and most of Southern India was under the control of India Nationalist forces. In 1949, communist rebels both from Travancore and recruited from within Tamil Nadu began attacking nationalist forces as well as civilians. In 1951 Travancore and Tamil Communists announce formation of People’s Federation. This caused great concern in Mysore and the region was beset by continued raids by Mysore troops. In 1952 R. Govindasamy Moopanar a local landowner and former politician organized the first opposition against the communists and Mysore. By middle of year armed groups were able to defeat several isolated communist forces and established a free Tamil Nadu. Over next few months the area under their control gradually increased and in October the Tamils rebelled against Mysore occupation and liberated Coimbatore. In 1953 clashes with communist forces along Travancore border led to a several battles when Travancore army moved further into Tamil Nadu. In April, the arrival of Democratic Indian forces along Travancore northern border forced it to withdraw most of its forces from Tamil Nadu. In May 1953 Tamils in Salem revolt against the Nationalist Forces that had just suffered a huge defeat at the hands of Hyderabad in the battle of Anantapur and Nationalist Forces retreated back towards Madras in disarray.

    Several diplomatic attempts were made by leaders of Democratic Union India for the Tamils to join DUI, but the Tamils decided to ignore the diplomatic move. Then on 12th of August DUI tried armed response by sending an army of 15,000 soldiers from Malabar into Coimbatore. The Tamils hindered their progress by destroying bridges and attacked them with hit and run tactics. On 20th of August, the Tamils cut off the Indian army and launched an attack. After two days of combat the DUI forces requested a meeting and a cease fire was negotiated. The DUI forces were allowed to withdraw but were only allowed to take their personal weapons, supplies and enough transports to carry the injured and dead.

    In Travancore V. S. Achuthanandan consolidated power and received weapons and support from the Soviet Union. Thousands of communist agents and armed men were sent to the neighboring Indian provinces. In 1949 two merchant ships off the coast of Travancore were sunk by unknown submarine, suspicion was automatically put on either UK or Portugal, but both denied any of their submarines were in the vicinity.

    In 1950 a UN resolution passed the UN due to the Soviets boycotting the General Assembly placing a blockade on Travancore and authorized member states ships of enforcing the blockade to inspect all ships and seize all weapons. The Portuguese Federation, UK and France provided the Naval force to enforce the blockade.
    In 1951 Travancore communists were able to establish control over much of Coimbatore, Tinnevelli and Madras. This drew Mysore into Coimbatore and subsequently a Tamil nationalist uprising. From 1952 to 1953 Travancore Communist insurgent forces suffered major setbacks in neighboring provinces. Plans to send regular soldiers which could invite further Imperialistic military action was ruled out when DUI forces arrived along Northern border and Achuthanandan afraid they would invade pulled all his troops back into the country. An uneasy truce with both Tamils and Democratic Union India was observed for remainder of year and into 1954 when an official cease fire is announced.

    Nationalist (Republican) India
    Nationalist Indian forces had been effectively reduced to half their strength by the 1948 Communist revolt. Over the next two years the Nationalist forces rebuilt and re-armed. At same time, opportunistic and backstabbing Pakistan decided to attack India while it was at its weakest. Nationalistic forces were easily defeated by Pakistan in both Bengal and Kashmir. India faced with widespread communist insurgency and potential loss of the Central Province requested terms with Pakistan. The loss of Kashmir and half of Bengal hurt the country both politically but more importantly the people’s morale and support for the government.

    The declaration of Independence by several Princely States was not viewed as important by government and the priority continued to be the defeat of the communist rebels. In 1949, the communists were defeated in the Central province and Indian Nationalist forces moved north along the Ganges river and into Northern India. In 1949, the loss of Bombay to the communist was even a greater shock to the government and President Cariappa faced his first coup attempt. The decision to not worry about the Princely States became a major decision blunder when Hyderabad defeated the Nationalist forces in Berar and occupied the province in 1950.

    During 1951, Nationalist forces were rebuilt and several operations in Punjab and other areas were successfully completed and those areas brought under Indian control. In 1952 India planned the invasion and annexation of Hyderabad code named Operation Polo. Over 250,000 troops were used in the operation. The invasion started correctly, and Indian forces made good progress, but then Indian forces began experiencing problems and, in several places, were forced to retreat. The attack was stopped, and then Indian forces were in full retreat so that by end of January they had been pushed back into India. In February, its forces were shattered and suffered over 50,000 casualties and troop desertions. To make matters worse Hyderabad cuts off the Indian Southern Army by occupying the entire Godavari River delta.

    Communist rebels took advantage of India’s setback by launching several major attacks both in the countryside and in major Indian cities including the capital New Delhi. For the rest of 1952 to 1954 Indian forces were pre-occupied with major sweeps against communist forces and its supporters, during this time they mostly ignoring the Bombay Indians traitors as well as Hyderabad and rest of Southern India. In the Madras, the Southern Indian National Army was under constant attacks from communists and subsequently Mysore and Tamil separatists. In September 1953 India received a major boost when the US recognized it as only legitimate government of India and agreed to provide it with substantial military aid. The US recognition was too late to save Southern Indian territories and the last southern lands under Indian control switched allegiance to the Bombay government when General Kodendera Subayya Thimayya witched allegiance to DUI. President Cariappa and the rest of Indian government and military continually refused all heeding and demands for a cease fire and rebuilt Indian forces for the next battle against Southern India.
    On February 10, 1954, Pakistan announced the signing of a series of peace treaties as well as mutual defense agreements with the other Indians states. Thus, increasing the risk of fighting Pakistan if India attacked any of its southern neighbors. A power struggle ensued within the Indian government and military command. On 5 March 1954, President Cariappa was deposed, and General Jayanto Nath Chaudhuri was proclaimed as President. On 10 March 1954, India announced that it was willing to enter into cease fire agreement and negotiate an end to the war.

    Cease Fire and Peace Treaty
    On 2 April 1954, a cease fire went into effect, and over the next several months several attempts were made to broker a peace treaty, but the precursor of a union advocated by Democratic Union India and the demand that Baroda, Hyderabad and Mysore borders return to pre-1948 made negotiations impossible to start. During summer of 1954 demonstrations in many cities throughout the subcontinent for peace were held.

    On 12 September 1954 representative from all eight nations and four observers (US, UK, France and Portuguese Federation) met in Cairo to negotiate a peace treaty. The negotiations were acrimonious and hostile at times and several breaks were ordered for the representatives to return to their respective countries and clarify several difficult points. On 10th of December, a peace agreement framework was agreed upon and the final text agreed on 20 January 1955.[2] On 10 February 1955 the Peace treaty was signed by all eight countries as well as Portuguese Federation and France who continued to have possessions on the subcontinent, signing the agreement was UK also which had historical ties to the subcontinent and whose monarch was the head of state of two of the states.[3]

    Indian Subcontinent – Post Peace
    Portuguese Federation had in many ways guaranteed its continued presence on the Indian Subcontinent. The Kingdom of Baroda had been initially supported only by Portuguese Federation and as it grew and proved it could defend itself it received additional support and recognition from other countries.

    From 1953 onward, Portuguese Federation and Kingdom of Baroda established several joint agreements to develop Baroda’s resources as well as the Portuguese Federation provide assistance to deal with the internal refugee problem it faced. During the early years up to third of Baroda’s armed forces were former Portuguese forces and the Portuguese Federation provided large number of weapons, supplies and financial support to Baroda. Included in the support was the deployment Portuguese 2nd Division to solidify Baroda’s control over its territory. Many nations criticized Baroda for rewarding the Portuguese Federation by allowing it to triple the size of Diu as well as increasing the size of Daman to unite its three areas.

    In the south Goa’s borders were also affected. Following Democratic Union of India arrival close to Goa borders where the Portuguese armed forces were patrolling in India, Portuguese Federation pulled its troops back except in several strategic areas in Belegavi. The occupation of the areas continued to be a source of animosity and anger by DUI. The continued occupation of all lands between Goa border and Kali River were also not recognized by DUI. Although those territories had been placed under Portuguese administration and control in the 1950 Portuguese Federation-Mysore agreement.

    France continued to control and govern its French Territory on the subcontinent, with both Pondicherry and Mahé being claimed by DUI.

    For the remainder of the 1950s the two major economic powerhouses in the subcontinent were Mysore and Hyderabad who had suffered the least damage to its territory and both had secured access to the coast.
    From 1955 to 1959 over 50 million people displaced by the war gradually returned to home. The exception was the Hindus from Bengal and Kashmir who feared returning to live in a Muslim country.


    Daman 1955 (Pre-1948 border in Green)

    Diu 1955 (Pre-1948 border in Green)

    Goa 1955 (Pre-1948 Border in Dark Green)

    Indian Subcontinent 1955

    [1] Till 1903 the province of Berar was under the Jurisdiction of Nizam of Hyderabad until it was taken by the British.
    [2] The Kingdom Hyderabad returned all occupied territory in the Central Province, and Bastar. Its conquests in Berar, Godavari, Western Madras and Bellary were all recognized. The kingdom of Mysore kept its conquest in Madras, Coorg and Kanaba. Travancore’s borders were recognized at pre-1948; it was forced to withdraw all troops from Tinnevelly, Madura and Coimbatore. Tamil Nadu were established composing of Coimbatore, Timnnevely, Madura, Tanjore, Trichinopoly, Salem and South Arcot to Pondicherry. The Kingdom of Baroda’s territory in the south and east was established along its zone of control with Democratic Union of India and in the north with the Republic of India. The Democratic Union of India territory was established as all lands it controlled in the former Bombay Presidency, South Kanaba, Malabar and all lands it controlled along the Bay of Bengal. Pakistan’s conquests in the war of 1948 were recognized. The Republic of India zones of control were recognized along with several border areas returned in peace treaty by the Kingdom of Hyderabad.
    [3] The Democratic Union of India and Tamil Nadu’s head of state continued to be the British Monarch like Canada, Australia and New Zealand.


    We now conclude the Indian Subcontinent war, 0ne that had a devastating effect on the people and countries. Since this war started in 1946 readers may wish to review the events during the first half of the war (1946-1949) in post 230.

    Note: The Indian Subcontinent emerged from the war battered and divided, for some like those in southern countries it would mean they would be able to rise higher than iOTL and these countries in the yeas that follow would offer its citizens a standard of living higher than iOTL. While the largest of the countries Republic of India would actually fare much worse and be subject to corruption, continued communist insurgency and lower standard of living than iOTL. The two foreign countries namely Portuguese and French would be viewed as the countries who escaped the worse effects of the war and both would take great pains in integrating their respective enclaves into the metropolitan home country. Meanwhile the various countries were left to pickup the pieces some with greater ability than others.. Questions/ Comments?

    We will continue with the next two sections of the world on January 19.
     
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    1950s - World - China / Korea
  • Lusitania

    Donor
    1950 – 1959 (cont)

    World (cont)


    China – Korea
    In 1950 the Nationalistic China under the leadership of Chiang Kai-shek had retreated to the islands of Taiwan and Hainan. Mainland China was under the control of the Chinese Communists led by Mao. Both governments claimed to represent all of China and that they were the country’s legitimate government. Western nations including the Portuguese Federation continued to support the nationalist side and the Nationalist Chinese still represented China at the UN. While Soviet Union and other communist countries recognized Mao and the Chinese Communists as the leader of China.

    On 5 April 1950, the communists launched the amphibious assault of Hainan. The battle pitted six Communist divisions against eight Nationalist divisions. The Communists were able to establish several beachheads on the northern part of the island but by 15th of April the Nationalist had pushed the Communists back into the sea destroying about half of the craft Communist Chinese had used to cross the strait. On 20th of April Communists launched a second assault but due to lack of amphibious ships they decided to use fishing boats ferry across the troops. The Nationalist navy entered into the battle and the second invasion of Hainan was turned back.

    Serious logistic problems as well as lack of weapons plagued Communist forces as well as requirements to send troops to the western part of country to deal with the few remaining independent Nationalist and Tibetan resistance forced Mao to postpone a 3rd invasion till August 1950 while Chinese Communist army re-organized and new landing craft were built. The planned 3rd invasion of Hainan was called off as both the islands of Hainan and Taiwan came under US protection with the arrival of the US 7th fleet in the South China Sea.

    In the spring of 1950, the Soviet Union protested the exclusion of Communist China at the UN and withdrew its ambassador.

    On 25 July 1950, North Korea whose government was communist attacked South Korea in an attempt to unite the Korean peninsula under their rule. The UN recognized the North Korean act as invasion and called for an immediate ceasefire. On 27 June, the Security Council adopted S/RES/83: Complaint of aggression upon the Republic of Korea and decided the formation and dispatch of the UN Forces in Korea. Twenty-two countries of the United Nations eventually contributed to the defense of South Korea, with the United States providing 84% of the UN's military personnel. In July, the US 7th fleet arrived in the South China Sea and the US placed both Hainan and Taiwan under its protection.[1] In the first two months, North Korea forces pushed the South Korean forces south to the Pusan Perimeter. In September 1950, an amphibious UN counter-offensive was launched at Inchon, and cut off many of the North Korean troops. Those that escaped the envelopment and capture were rapidly forced back north all the way to the border with China at the Yalu River, or into the mountainous interior.

    In October 1950, Chinese forces crossed the Yalu and entered the war. Chinese intervention triggered a retreat of UN force which continued until mid-1951. As part of Portugal’s anti-communism response, the Portuguese 4th Infantry Division was prepared and sent to Korea and arrived in December 1950. Portugal also sent the CV Vasco da Gama (ex-HMS Indefatigable) and her escorts. The carrier was paired with the British HMS Glory, Theseus and Ocean and the Australian HMAS Sydney, and tasked with supporting the land forces.

    The 4th Division worked side by side with the French army. Portuguese soldiers showed professionalism and bravery and Portuguese officers some of whom were not European showed good judgment and tactics.[2]
    Portuguese soldiers interacted very well with troops from France and other nations, providing assistance when required. While opinions of many other country’s soldiers towards the Portuguese troops was very favorable the American overall command took little notice of the Portuguese contribution. After more than a year providing air support, the Vasco da Gama and her escorts returned to the Portuguese Federation when the French Carrier group replaced the Portuguese naval force. For the most part, the UN troops were able to stabilize the front after these dramatic reversals of fortune. The last two years of conflict it became a war of attrition, with the frontline close to the 38th parallel and Seoul changing hands four times. The fighting ended on 27 July 1953, when an armistice was signed. The agreement created the Korean Demilitarized Zone to separate North and South Korea and allowed the return of prisoners. However, no peace treaty was signed, and the two Koreas technically continued at war. The end of the Korean War allowed Portuguese Federation to withdraw its troops from the Peninsula and bring them home

    [1] When the UN declaration was made the Portuguese government grappled with what would be its best strategy. Some wanted to send a token army unit but President Samedo and Foreign Minister Mata argued that it would be in the country’s best interest to be seen as full-fledged military and political anti-communist ally to both western Europeans and US. Therefore, Portugal’s contribution was increased to a full division fighting alongside the French forces and Portuguese navy ships including Portuguese aircraft carrier

    [2] The forces in Korea participated in the Battle of Bloody Ridge and Battle of Heartbreak Ridge.


    We include the Korean War, without any major change from IOTL. The events that started the Korean War were set by the outcome of the WW2 in the Far East and the victory of the Communist Chinese. Although there were a few minor changes. We have a Nationalist China that was able to hold on to Hainan Island long enough for the American 7th fleet to arrive and place it along with Taiwan under its protection. The inability of the Communist Chinese in capturing the island from the Nationalist Chinese army was a dirrect result of the communist Chinese forces being slightly weaker as result of fighting the Japanese during WW2 and while they still were able to defeat the Nationalsit forces on the mainland their strength was 80% compared to iOTL at end of war with Nationalist forces. Thus the assault on Hainan was repulsed and Nationalist China controls both Hainan and Taiwain Islands. We also have the Portuguese contribute their forces in the battle against communism. The Portuguese forces were just as effective and its officer corps as good as the other westerm allies. This may see, irrelevant but consider that Portuguese forces were racially integrated and good percentage of the officers were non European. So like the Britiish both the French and other Allies were surprised and confused by the Portuguese. In end the war also provided Portuguese with valuable lessons and Portuguese military doctrine and practice during the remaining 1950s advanced and modernized with lessons learned from the French, British and American forces. Questions/ Comments?

    We will return right away with the next section in the world - East Indies.

     
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    1950s - World - East Indies
  • Lusitania

    Donor
    1950 – 1959 (cont)

    World (cont)

    East Indies
    In March 1950, the Dutch withdrew their last troops from the island of Java and abandoned Jakarta. Dutch troops withdrew to Makassar on the island of Sulawesi. The government of Indonesia was limited to the island of Java, southern Borneo and southern Sumatra. They requested UN recognition of Indonesia as independent country. At same time the governments of Riau and of Aceh also petitioned the UN for recognition.[1] When Indonesia objected to their request the UN rejected all three.

    In 1950 Portuguese Federation publicly abandoned all political support for the Dutch and instead began funding and supporting different Indonesian independent groups. Support was publicly given to Riau and the separatists groups in the Moluccas for first time. Meanwhile the Dutch provided support to both the Republic of East Indonesia and the Republic of South Moluccas. On several islands’ battles broke out on between supporters of the East Indonesia and South Moluccas.[2] [3]

    In August 1950, Indonesian forces launched an attack on the independent country of Bali. Colonel Gusti Ngurah Rai appealed for help and received assistance from both Australia and Portuguese Federation. Bali forces were able to repulse the Indonesian assault and by 29th of November liberate the last Indonesian held areas of the island. Australian and Portuguese navy began patrolling the channel between Java and Bali in an attempt to prevent Indonesian forces from attacking Bali again.

    On the Island of Sumatra Indonesian forces suffered a major defeat at the battle of Pekanbaru from 7 – 10 October 1950. Indonesian army was defeated by Riau and Aceh forces and was forced to withdraw south to Palembang.

    In the South Moluccas, Indonesian supporters were defeated, and Republic of South Moluccas forces gained control of over a half dozen major and two dozen smaller islands by middle of 1951.

    On the island of Sulawesi, the Republic of East Indonesia captured the northern part of the island from the Minahasa and also received support from people of Tindore, Sula and Halmahera and the majority of the northern Moluccas islands.

    In December 1950 Portuguese Federation granted the Republic of Lombok independence on the island of Lombok.

    In March 1951, UN special envoy Prince Naif bin Al-Abdullah of Jordan visited all the different groups in an attempt to get approval for a cease fire and final peace agreement. In May 1951, he was finally able to convince the separate groups to meet.

    During the summer of 1951 various groups met together to discuss a lasting peace treaty. Meanwhile Indonesia refused to recognize any of the groups and continued to claim all the former Dutch East Indies.

    On the island of Borneo, in October 1951 Indonesian forces suffered a major defeat when the East Indonesia forces landed north of the city of Samarinda and captured the city. For next six months, most of eastern Borneo was lost and Indonesia was forced to withdraw south to Banjarmasin. On the western side of the island the Sultan of Pontianak, Syarif Hamid Alkadrie declared his independence. In 1952, the local people the Dayak tired of their homes being used as battle ground by outsiders rose up in revolt against both the forces of the Republic of Indonesia and East Indonesia. Indonesia lost the city of Banjamarsin. Worse Java was soon being swamped by thousands of Javanese who fled attacks by the Dayak and the East Indonesians were pushed back to Samarinda. Fighting intensified during the spring but without any changes in the positions of the various parties and a cease fire was requested by both Indonesia and East Indonesia.

    In January 1952, the United Nations recognized the Independence of Republic of Riau, Islamic Republic of Aceh, Republic of Indonesia and Republic of Eastern Indonesia. The status of the other nations was left for future session. Following the recognition of the UN, fighting in the Moluccas intensified during the spring but without any changes in the positions of the various parties. The Republic of South Moluccas was recognized as well as the Republic of Bali. The sticking point was the Portuguese occupation of the Lesser Sunda Islands. Finally, a compromise was reached in which the residents of islands under Portuguese occupation would be allowed to vote on their future. Portuguese Federation agreed to hold referendum if the people of Borneo and northern Moluccas were also allowed to vote. A decision on the fate of the Lesser Sunda Islands was adjourned for future UN vote. The fate of Borneo also divided the delegates with both Indonesia, East Indonesia claiming the island but the Dayak who were also at the negotiations demanded self-rule. Meanwhile the Sultan of Pontianak demanded recognition and refused to be a subject nation again. With neither East Indonesia nor Indonesia in a position to start an armed conflict on the island of Borneo it was agreed that both the Sultan of Pontianak and the Dayak would become independent. The status of Netherland New Guineas was deferred for future discussion.

    On 1 June 1952, the East Indies Peace treaty was signed recognizing the Islamic Republic of Aceh, Republic of Riau, Republic of Indonesia, Republic of East Indonesia, Republic of South Moluccas, Dayak Federation, Republic of Bali and Sultan of Pontianak. The Portuguese Indies and the Republic of Lombok along with Netherlands New Guineas were to be referred to as foreign occupied areas and their disposition to be decided by the local peoples.


    1579412511562.png

    East Indies 1952 at end of the Dutch East Indies War of Independence
    [1] The leader of Aceh, Teungku Daud Beureueh was finally convinced of Indonesia duplicity in 1949 and sought independence for Aceh instead of supporting Indonesia thereafter.

    [2] The Republic of East Indonesia had been created by Indonesia in 1947 and claimed all islands east of Java and Borneo, including the islands controlled by Portuguese Federation. In 1949 after the communist attack on the Nationalist forces in Java and subsequent execution of majority of nationalist leaders the Republic of East Indonesia with its capital in Makassar suffered several revolts as locals on the islands of Seram, Ambon, and Buru sought independence from what they considered leftist governments in Jakarta and Makassar.

    [3] Following the declaration of Independence of Bali, the leader of Republic of East Indonesia Tjokorda Gde Raka Soekawati, who was from Bali lost the confidence of local leaders and was deposed. Kahar Muzak-Kar became the new leader of the Republic of East Indonesia.



    The former Dutch East Indies is un-recognizable compared to iOTL Like British India the former Dutch colony collapsed into several countries. Each of the countries were actual countries failed to become independent. The timely communist operation and action served to weaken the Indonesian forces sufficiently for the other countries to gain their footing and become independent. The splitting of the Dutch East Indies into several countries served to help the Portuguese maintain control of the islands they had occupied at end of WW2. Two Portuguese allied countries Lombok and Bali surrounded by hostile neighbors took their first steps as Portuguese aligned and supported countries and would serve as the first of many aligned countries to rely on Portuguese military , Portuguese political support and economic integration with the Federation. Questions/ Comments?

    We will return right away with the next section in the world - Spain.
     
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    1950s - World - Spain
  • Lusitania

    Donor
    1950 – 1959 (cont)

    World (cont)

    Spain
    In 1950 Spain was reeling from ongoing civil strife. Franco had called out the army to quell the riots and demonstrations in December of 1949 but that had not quelled the people’s anger. Spanish people were angry at the continued economic depressed conditions. For the last decade Spain had limped along rebuilding but not growing and the Spanish economy still had not recovered to the pre-civil war level and unemployment continued to be very high. Amongst the youth over 50% were unemployed. The reason that things were not worse was that tens of thousands had left Spain with its neighbor Portuguese Federation being one of the primary recipients of Spain’s brightest.

    The political and foreign debt fiasco of 1948-1949 and the humiliating terms of an almost bankrupt Spain being forced to give up its last colonies had driven the people into the streets. On 19 January 1950 Franco declared martial law and imposed a curfew. Sporadic attacks on police and security forces using hit and run tactics became an everyday occurrence. For the remainder of the year Spain teetered on the verge of civil war and thousands of Spanish were arrested. Tens of thousands fled west to Portuguese Federation or east to France. By the summer things had settled down and in September Martial Law and curfew were relaxed with last special curfew laws lifted in December. In 1951 the 150,000 Spanish refugees in both the Portuguese Federation and France finally left the refugee camps with majority emigrating to USA and other Americas countries, Europe with the Portuguese Federation accepting about 20,000 while the remainder returned to Spain.

    In 1952 Spain received a very huge economic boost and political support. The US 10-year agreement with Portuguese Federation for the lease of Lajes and Beja airbases was up for renewal and the US wanted to diversify the US bases locations and not be dependent on only one country. In February 1952, Spain and US signed the Spain – US agreement providing the US with naval and marines base at Rota in the Province of Cádiz as well as three airbases (Morón Air Base, Zaragoza Air Base near Zaragoza and Torrejón Air Base near Madrid). Spain in return received 5 billion dollars along with continued financial support. The Spain – US agreement was a huge shot in the arm for Franco’s government and several large reconstruction and development projects which were desperately needed by the country were started. Thousands of Spaniards were employed, and economy improved greatly.[1]

    On 8 October 1952 during a military parade in Madrid on the anniversary of Spanish Civil victory there was an assassination attempt on Franco. While troops were passing in front of Franco, Spanish politicians and generals two soldiers stepped out of formation and sprayed the stands where Franco stood with bullets. They were gunned down as fast as Franco’s security detail and fellow soldiers could react but by then over 23 people had been killed and 61 injured including Franco as one of those injured. The assassination attempt put Spain’s fragile economic recovery in jeopardy as Franco instituted wide range political and military purge against any who were perceived at being anti-Franco. Thousands fled Spain again with the most dramatic escape being hundreds of Spanish soldiers escaping into Portuguese Federation from Leon and Galicia. Franco demanded that Portuguese Federation return all escaped “criminals” instead it arrested all the soldiers and other fleeing Spanish but allowed them to seek refugee status. Franco moved several army units to the Portuguese border but was forced to back down when notified by US that an attack on NATO country would be viewed as attack on the whole organization and would put Spain - US agreement in jeopardy. Portuguese Federation returned the military hardware to Spain and allowed the former Spanish soldiers and civilians to either apply for residency in Portuguese Federation or find alternative destinations. In all about 40% stayed in Portuguese Federation with the rest choosing the US and other countries to emigrate to. Spain recalled its ambassador in protest and for the next three years Portuguese Federation and Spain had little to no diplomatic contact and no economic trade between the two countries.

    On 3 August 1955 while Franco and his wife vacationed on the Spanish town of Sada in the state of Galicia paramilitary forces attacked his secure villa. Franco’s security team along with all staff were killed. Franco and his wife were captured and were executed while being filmed. The group who carried out the attack did not reveal themselves or talk and the only statement made during the filming was a sign in the background that Franco was being executed for the crimes he had perpetuated against the Spanish people. For the next several weeks anarchy reigned in Spain as various factions within the military and government all claimed to be Franco’s rightful successor. By end of August two primary candidates had emerged, General Agustín Muñoz Grandes and General Joaquín Planell Riera, both members of Franco’s government.

    While military units aligned themselves with either of the two leaders the Spanish people became despondent at the prospect of a new civil war. Demonstrations and riots broke out in many cities and towns. In the Basque region, several military units were overpowered, and Basque nationalists began seizing power. By the end of October most of the provinces of Álava, Biscay and Gipuzkoa were in Basque hands, at first Spanish officials in Madrid were very slow to react and by time they began organizing a response to the Basque revolt they had already moved into Navarre. In November Catalan nationalist and Galician Nationalist also rose up and many military units in those regions either joined them or withdrew. From September to November, Europe watched in horror at the prospect of a second Spanish civil war while Spanish troops maneuvered to battle for the control of Spain and against regional nationalistic groups. On 5th of December, troops loyal to General Agustín Muñoz Grandes stationed in Leon and Asturias attacked Galicia while on 7th of December several units loyal to General Joaquín Planell Riera attacked rebels along Portuguese border who retreated into the Alentejo and Algarve Portuguese provinces. At same time General Agustín Muñoz Grandes troops also attacked the Basque and Catalonian forces in the east. While in Castile the two adversaries to the government in Spain clashed on the outskirts of Toledo, and south of Valencia.

    Portuguese forces along the border responded to the Spanish attack with artillery fire of their own. On 12th of December Portuguese 1st armored and 2nd mechanized divisions attacked Spanish troops along the Portuguese border south of the Tagus River. Several border towns including the city of Badajoz were occupied. In the north along the border with Leon the Portuguese 3rd infantry division also pushed the Spanish forces back to prevent continued border attacks.

    On 19th of December at the emergency meeting of NATO, Portuguese Federation’s demand for NATO support was agreed. On 20th of December NATO issued a formal warning to Spain ordering it to stop all attacks on the Portuguese Federation. On 21st of December, France issued a guarantee and diplomatic support for the Basque and Catalan regions. The US strongly urged all sides to refrain from further military action and to move all troops back to barracks. The two Spanish competing military leaders stopped their current military actions and attempted to assess what to do next. On 25th of December in what became known as the Christmas movement millions of Spanish took to the street after morning masses singing and praying for the war to end. When by midafternoon thousands of troops joined in the movement the Spanish government and both generals decided to call a truce and build a national reconciliation government. In a national radio address a cease fire was announced, and all troops ordered to return to their barracks (except for troops required to guard the frontier). The announcer also announced that King Juan III would be re-instated as the King of Spain and that the cortes would draft a new constitution. The people returned to their home both hopeful and weary of the government. A cease fire between Spain and the three breakaway provinces was announced as well against the Portuguese Federation.

    In February 1956, a new constitution was hurriedly approved by the cortes which combined the previous constitution and added a few new items i) King Juan III as the head of state (figure head only) ii) devolution of regional administrative powers to provinces. On 15th of February, the nation voted 69% in favor of the new constitution but the areas under Galician, Basque and Catalan forces control did not participate.[2]

    On 20th of February representatives from Spain, the three breakaway regions as well as Portuguese Federation and France met in Geneva. An agreement was reached to hold a referendum on the three regions’ future as well as the areas under Portuguese control.[3] On 5 March 1956 a referendum was held in the Galicia, Basque and Catalan asking if they wished to continue being part of Spain as autonomous regions. In the Portuguese occupied areas, the referendum question simply asked the voters if they wished to remain part of Spain. Several European countries objected to the hurried vote and their inability to send monitors to monitor the referendum as agreed but Spain demanded the vote take place as fast as possible.

    In the Catalan, Basque and Galician controlled regions, the vote was tallied by province and a simple majority of over 50% was required. In Catalan controlled provinces to the shock of Spain and the delight of the Catalan leaders in Barcelona all the provinces voted in favor of leaving Spain and forming the Republic of Catalan. The provincial votes in favor of independence were: Huesca 59%, Zaragoza 70%, Barcelona 89%, Girona 81%, Lleida 79%, Tarragona79%, Castelon 51% and Teruel 52%.[4] In the Basque areas the vote was more lopsided in favor of independence with the lowest vote of 89% voting in favor of independence, the actual numbers were: Álava 97%, Biscay 98%, Gipuzkoa 99% and Navarra 89%. In the west, Galicia also rejected Spain and voted overwhelming for independence, with the four provinces voting as follows: Corunna 69%, Lugo 71%, Ourense 69% and Pontevedra 65%. The Spanish government was not prepared for such a strong rejection and many conservative and nationalist voices in Madrid advocated the invasion of those regions to bring them back into Spain. In Portuguese occupied Spain, the Spanish fared much better with all regions voting over 80% to return to Spain including the city of Badajoz which voted 75% in favor. The only shock was the vote by the county of Olivenza which voted 61% in favor of returning to the Portuguese Federation.[5]

    The regional votes were a huge shock to the people of the Iberian Peninsula, with people in Catalan, Galicia not really sure what the vote meant and what lay ahead for them. In the Basque regions celebrations went on into the night. On 31 March 1956, the Kingdom of Spain, the Republic of Galicia, the Republic of Basque and the Republic of Catalonia signed the Iberian Peace Treaty and Spain recognized the three independent countries. All three immediately requested membership in the UN.

    On 1st of April, the Portuguese and Spanish signed the Badajoz Accord, which transferred Olivenza to the Portuguese Federation. A non-aggression treaty was also signed between the two countries and they pledged to exchange ambassadors. Although economic relationship was still not in the cards Spain did provide authorization to create a transportation corridor (road and rail) between Portuguese Federation and Basque allowing Portuguese imports and exports to Europe to cross Spain unhindered.[6] [7]


    1579414312006.png

    The Iberian Peninsula in 1956
    [1] In 1952 the US renewed the lease for Lajes Airbase but the lease for Alentejo airbase was terminated and the American Military personnel moved to Spain.

    [2] The French, Italian and other European government’s recognition of the three regions to decide their own destiny as well France’s protection to the Basque and Catalan people put Spain on direct path to war with the rest of Europe. On 15th of February, the same day as the announcement of the Spanish referendum Portuguese Federation announced it was providing Galicia with similar guarantee.

    [3] Spain at first balked at the idea of having Portuguese occupied regions also having a referendum but with the majority of the residents being nationalist Spanish supporters it felt confident that a resounding vote to return to Spain would be a great slap in the face of Portuguese Federation.
    [4] Much was made of the Spanish majority provinces under Catalan control such as Huesca, Castelon and Teruel voting to leave Spain but future historian attributed it to desire by the people to live in a democratic country and be free of oppression.

    [5] This had been the only part of Spain that Portuguese Federation desired and the Portuguese government decided to continue occupying the Spanish border areas in order for force a vote and to regain its lost county. The actual vote was expected to be much lower in favor of returning to the Portuguese Federation. The economically depressed area largest economic activity was many of its resident working illegally in the Federation especially in Beja large industrial area.

    [6] The rail issue continued to plague Portuguese Federation since there existed three different gages: Portuguese gage, Spanish gage and European gage used in France and elsewhere in Europe and all were different. Portuguese rail locomotives and railcars were forced to change gage at Spanish border and again at French border greatly increasing costs and time. It would not be until 1965 that Portuguese locomotives and railcars would be able to automatically switch between the three gages.

    [7] The Portuguese Federation / Galicia – Basque corridor which following the Suez Canal Crises took a more important aspect with the building of the Portuguese Federation – Luxemburg pipeline. In return Spain received billions of dollars in aid to authorize the building of an “auto-estrada”, railway and pipeline through Northern Spain. The Spanish allowed the railway to be constructed through Spain using Portuguese gage but not European gage. This road and rail corridor had no connection with Spain and all people and vehicles had to either get off in Portuguese Federation or the Basque Republic. A special unit of Spain’s national police was created to police the corridor (paid by Portuguese Federation).


    The country of Spain during the 1950s under Franco never really recovered its prestige and nationalist pride following the 1949 Portuguese-Spanish deal. Spanish people felt that the government and its leaders had led them down and failed the country. Who the executioners were no one ever found out but it was the springboard for the disintegration of Spain. The rest of Europe led by France were the major supporters of the splintering of Spain. The Europeans thought that the Spanish would wake up and overthrow its rightwing government and embrace democracy but they figured wrong and failed to understand the strength of the military, police in keeping control of the people and their willingness in letting the peripheral parts of the country leave if it meant they continued to control the remainder of the country. The politicians and military of Spain also failed in understanding the desperation of the people in their desire for freedom and better lives.

    The Portuguese played their part perfectly, the victim to Spanish aggression, even though the Portuguese military was better equipped and stronger then the Spanish forces sent against it. They let the Europeans split Spain apart, received Olivenza (we got Olivenza back) which with Ceuta pretty much erased three centuries of Spanish dominance. Lastly they gained a third Portuguese aligned country, Galicia. To provide the Galicians with incentive to kick the Spanish to the curb the Portuguese promised them open border, investment in Galicia, military alliance and support.

    The Spanish after everything that happened were in shock, so too was the rest of Europe who scrambled to support both Catalonia and Basque. The Europeans afraid that Spain would collapse further and the peninsula suffer from more war jumped on the Portuguese suggestion to provide Spain with large economic boost. The Portuguese paid the Spanish 3x the value of the corridor and when the Portuguese offered to build the oil pipeline the French, Italians and rest of Europe provided Spain with large amount of money to allow the country to rebuild. From 1956 -1966 Spanish unemployment was reduced by 80% and the country witnessed major growth with both industry and government infrastructure spending alleviating the crippling economic malaise that had existing in the country since the Civil war. Questions/ Comments?

    We will return February 2 with World - Africa.
     
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