World War II: Spying and Counterintelligence--Portugal


Figure 1.--

Portugal was neutral during World War II. The country had a history of close relations with Britain, but there was strong Fascist sympathies in the Salazar Estado Novo government. And the Government had to be concerned after the fall of France (June 1940) with placating the Germans. There was considerable support within the Portuguese intelligence services for the NAZIs. The Germans were concerned about Portugal. It was near Gibraltar, had a long Atlantic coast whicgh could support U-boat operations and had vital possessions (Maderia and the Azores). The country had, howver, a very small, poorly equipped Army. There was a possibility of a Spanish and/or German invasion. Portugal as a neutral country carried out commerce with both the Germans and British a well as other neutral countries like the United States (before America entered the War). The country was especially important as vital source of tungsten for the German war effort. Unlike Spain, tghere does not appear to have been recruitment of workers for the Germans. Because of the this commerce the country became a hot bed of spies. It provided a way of inserting intelligence agents or supporting spy networks in both Allied and Axis countries as well as in neutral countries, primarily Latin American countries. It is unclear to what extent the Salazar Government was aware of these efforts, but clearly elements in the Government were aware if not supported such efforts. The Germans attempted to recruit wireless operators on Portugese merchant and fishing vessels to report Allied ship traffic. The Portuguese fishing fleet had a centuries old tradition of opperating on the Grand Banks off Newfoundland. This of course was astride the vital convoys routes between North America and Britain.

Portuguese Neutrality

Portugal was neutral during World War II. The country had a history of close relations with Britain, but there was strong Fascist sympathies in the Salazar Estado Novo government. And the Government had to be concerned after the fall of France (June 1940) with placating the Germans. The country had, howver, a very small, poorly equipped Army. There was a possibility of a Spanish and/or German invasion.

Portuguese Secret Police

The principal intelligence agency in Portugal was the Polícia Internacional e de Defesa do Estado (PIDE--International and State Defense Police). It was nominally a unit of the Ministry of Justice. In reality, PIDE was a secret police force controlled by Portuguese dictator António de Oliveira Salazar and not subject to the rule of law. There was considerable support within PIDE for the NAZIs and thinly desguised contacts with the German Abwehr. PIDE was also in the business of running a tight police state, arresting any critics of Salazar, suppresing any hint of democracy and and on the hunt for any Communists brave enough to surface in the country..

Sources of Information

Ordinary Portuguese citizens got into the intligence game. Hitel taff motly in Lisbon found that the Germans, British and other paid for gossip. Prostitutes were able to obtain useful shipping informtion fom loose-lipped and druken sailors. [Lochery]

Strategic Importance

Portugal was potentially imprtnt, especially in the vital Battle of the Atlantic. The Germans in addition to tungsten were concerned about Portugal. It was near Gibraltar, had a long Atlantic coast which could support U-boat operations and had vital possessions (Maderia and the Azores). And for the same reasons the British who hd a long history with Portugal were also concerned. Both the Gemans and British expanded their intelligence operatins with the outbreak of the War. And the Portuguese intelligence watched over both.

Commerce

Portugal as a neutral country carried out commerce with both the Germans and British a well as other neutral countries like the United States (before America entered the War). The country was especially important as vital source of tungsten for the German war effort. Unlike Spain, tghere does not appear to have been recruitment of workers for the Germans.

Holocaust

Portugal was a major gateway to saftey for Jews and Europeans who had opposed the NAZIs. Portugal itself had perhaps the smallest Jewish population in Europe at the time of World war II. The country had a Jewish population of about 380 people and 650 Jewish refugees, mostly from Central Europe. The Government granted these refugees "resident" status. Prime Minister Salazar was in a difficult position. Portugal was a traditional British ally. After the fall of France (June 1940), Portugal adopted a liberal visa policy allowing thousands of Jewish refugees to enter the country, however, those of Russian origin or birth because they might be Communists were excluded. Portugal came under increasing pressure from the NAZIs. Salazar has some breathing space because Franco refused to enter the War or allow German armies to transit Spain to seize Gibraltar. Even so, Salzar had to tread the Germans with care as he could not be sure that Germany might not invade Spain. Unlike Spain, Portugal did not close its border, but refugees had to get accros the French-Spanish border which was closed. The danger posed by the NAZIs caused Salazar to issue more stringent immigration restrictions (late 1940). Aristides de Sousa Mendes, a Portuguese diplomat in Vichy France, ignored Government directives and issued large numbers of visas allowing Jews in France to travel to Portugal. The Portuguese Government dismissed him as a result. Portugal as the War turned against Germany felt safe to begin granting more entry visas. The Government cooperated in various rescue efforts. The Government granted the visas with the condition that Portugal would be a transit point and that other countries would accept them. Portugal like other neutral countries attempted to save Hungarian Jews. An estimated 100,000 Jews and other refuges fleeling NAZI opression managed to reach safty through Portugal. All the Jews who managed to reach Portugal survived the War.

Spy Center

Portugal became a hot bed of spies durung World War II. As a neutral country, it provided a way of inserting intelligence agents or supporting spy networks in both Allied and Axis countries as well as in neutral countries, primarily Latin American countries. The Germans were especially interested in obtaining information about shipping. It is unclear to what extent the Salazar Government were fully aware of these efforts, but they clearlky knew a great deal. Elements in the Government were aware if not supported such efforts. Some well known spies operated in Portugal, including Briish luminaries like Ian Fleming, Graham Green, Kim Pilby (already a Soviet agent), and Malcomb Muggeridge. The most notable spy coming out of Portugal was walkin agent Spainard Joan Pujol who while self taught became arguably the most important double agent of the War. He moved to Portugal from Spain abd contacted the British Embassy in Lisbon. He was known to the British as Garbo and the Germans as Arabel. He had the rare dstinxtion of being decorated by both the British and Germans. Amazingly, although he played a ky role in te success if -Day, the Gerams awaarded him an Iron Cross as they so valued his information.

German Recruitmnent of Radio Operators

The Germans attempted to recruit wireless operators on Portugese merchant and fishing vessels to report Allied ship traffic. The major problem for U-boat commanders was locating the Allied convoys. Portuguese radio operators could have been an enormous assett. The Portuguese fishing fleet had a centuries-old tradition of opperating on the Grand Banks off Newfoundland. This of course was astride the vital convoys routes between North America and Britain. The most celebrated incident occurred during Operation Torch, the first Allied offensive operation in the European theater. One of the principal concerns of Torch planners was that the invasion convoys would be intercepted by Dönitz's U-boats. The Allies fed the German intelligence false information about plans to invade both France and Norway to confuse them. They used their celebrated double agent, Garbo, in this effort. Hitler's obsession with Norway and the earlier Dieppe landings lent credibility to the reports. The Abwehr recruited Portuguese seaman Gastao de Freitas Ferraz as a paid agent. His assignmenht was to send coded messages about Allied shipping to U-boat commanders operating in the North Atlantic. Ferraz transmitted encrypted messages from the Portuguese vessel Gil Eannes just at the time that the Allied convoys were preparing to sail. The messages were, however, picked up and decrypted by the British Bletchley Park codebreaking operation. They informned MI-5 about the 'alleged unneutral behaviour' of a Portuguese radio operator and identified the ship (August 9, 1942). The Gil Eannes was a former Portuguese naval ship, part of a large Portugues fishing fleet operating in the Atlantic. Portugal for centuries had fished off the Grand Banks and as a neutral nation had the right to continue to do so. The Gil Eannes sailed from Lisbom (June 28, 1942). Allied authorities stopped and searched the ship when it arrived off Newfoundland. Nothing suspicious was found. We are not sure just when the ship was searched. The British did not want to alert the Germans that their coded messages were being read. The dangers increased with the Torch convoys put out to sea (October 1942). Sir David Petrie, the director-general of MI-5, personally participated in the risk assessment because of the importance of Torch. He wrote to the Foreign Office, “There is no possible room for doubt that de Freitas is a German agent.” MI5 asked for Gil Eannes to be intercepted at sea. “You will, of course, appreciate that if any action is to be taken, it must be taken forthwith” (October 24). The Foreign Office had to be consulted because of the importance of the relartionship with Portugal. As one of the American convoys approached the Portuguese fishing fleet, the Foreign Office agreed that actiion had to be taken. The Admiralty signalled naval units, “If the vessel is sighted West of 11° West, she should be ordered not to use W/T [wireless transmission], de Freitas [Ferraz] should be removed and in order to ensure that no further use of W/T is made, an armed guard should be put on board.” HMS Duke of York intercepted the Gil Eannes and Ferraz was detained. He was taken to Gibraltar and eventually ransferred to MI5's interrogation centre at Camp 020 in Ham, West London. There he confessed, but as he was a Portugese citizen, was not executed as a spy. The British a after the war deported him to Portugal. [Evans]

Sources

Evans, Michael. Defence Editor. "Declassified MI5 file shows Nazi spy almost changed course of war," The Times (March 3, 2009)

Lochery, Neil. Lisbon (Public Affairs), 306p.







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Created: 7:29 PM 4/20/2011
Last updated: 9:30 AM 3/18/2015