OSS - LEND LEASE PROPOSAL TO PURCHASE TUNA FISH FROM PORTUGAL, ANGOLA, AND WEST AFTICA, 1942

• Document Type: CREST
• Collection: OSS Collection
• Document Number (FOIA) /ESDN (CREST): CIA-RDP13X00001R000100030010-0
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 19
• Document Creation Date: November 3, 2016
• Document Release Date: September 17, 2013
• Sequence Number: 10
• Publication Date: December 23, 1942
• Content Type: MISC

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make use of the attached for OSS purposes.
This seems to me a matter for BEW, although if
BEW becomes active in this matter, it may be
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This secret report is only for limited
Internal dissemination and is not to be sent
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a..remes 1,44
,tource
A-2
fapic 1. I have to report tn.:A Vierd acLau, raiz_
anist..ir of Colonies, invited m,e to to ur
and. confiaential Lueetin6 aurin6 tne course :).1 ne
inquired whether the United btates Gover:J.en'; cy.du
interestea in using the Benguela :la.;.1rodu for the snip-
ment of certain military supplies fro. Lobio acr3ss
hngola tr:to Bet6ium Congo and Central anc,
Topic 2. i was reminded oy tne sni;ments
from alatad- througn the Congo result in consiuev,ftl.e t__E
beint, ,asted aria encounter many uifficulties.
lopc 3. he sinister pointed out to me tne 1ct tndt
freiat cars are now bringing us abut 1,7U to/IL; of
minerals every week frpm the Congo to .,clpito anureturn-
int4 c:lihost e ipty.
iopie 4. I was told by the .iinister that i. ce_ieved
that ne coulu use tnis spdce effectiveli -nu tnus save
several weeks' transportation time betweei the coast anu
JukumL, Elisabetaville and other point, not to mention
a reaucti)n in cost. '-ransshipments also coulu be ex-
tended across lifrica of rail to LoureAco warqueL Of Jeira.
4:his woulci avoid several thousand mile 01 ,..ne,erous
travel by water.
Toi;ic 5. This space was offered to us by the .iiinister
for te transsnil..imen,, of everything e,.cept guns of every
&Ind, tdn;(s, and ammunition which he s.iL coul(, continue
to go via liataal. 6pecificaily Thentionea by the
as eermissable items were the following:
1. All t?..es of petroleum proLucts incluLni; aviation p.so-
line. _the .enguela Aailway nas no tank cars anu (.) an
C:x4o; consequently, petroleu.n prouucts would have to
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SECRET
be shipped in drums as is now being aone thruugnout
Congo until such tire as tanx cars coula be supdlieu.
2. automotive vehicle: ana even airplanes - proviueu all
are boxed (repeat boxed), not cratea or uncrateu anu
further provided that none of theLl carried guns.
Airplane and other engines and spare parts of ull
types.
4 All forms of machinery includinE mining, roaa build-
ing anc repair.
Military service equipment including uniforms, xitchens,
beading, tents and otner quartermaster stores.
6. All Kinn: of edibles, meaicinals, anu urinkaLdes.
7. Moreover fifteen to twenty aria perhaps double that
number of officers aria men in civilian clothing Tould
be guaranteed transit visas through itn8ola on every
combined gouas and passenger train.
8. One or two officers in civilian clothing woulc be
allowed to live in Lobito for the purpose of super-
vising transshipments.
Topic 6. I was further inrormed by the Minister that he
woulu guarantee that Angola authorities would not open
or inspect snipments and that no increase in existing
port dues, landing charges, freight rates in transit
woula tae place. No mention was made of the question
of safeguarding shipments.
2:1
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Topic 7. It was suggested bj the Minister that opera-
tions would be simplified if shipments were made by, say,
a private company (X) in the United states or elsewhere
to, say, a private corn any (Y) in the Belgium Gongo.
Liowever, this is not mandatory. Ostensibly the Super-
visors at Lobito could pose as the representatives of
me of taese private companies.
Topic 8. I aave the impression that 'eie coula obtain
satisfactory written assurances of the above guarantees,
if we so insisted, although the Minister inaicatea that
he preferred that we accept informal guarantees covering
the ext*nsion cf the afore-mentioned privileges.
? .o
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SECRET
Topic 9. The 2.1inister 7.emarkeu obliquely that no one
woulu be in a position to complain justifiably of neutrel-
ity violations aria that Portugal, herself, c(Juld not very
well Interfere if the remote ana semi-autonomous Angolan
Government permitted shipments over a privately ov/nea
nailxay en::ageu in internal coalmerce, proviued tnat no
tanks, ammunition or otner weapons were being transportea
witnin the Irontiers of Anc_;ola.
2opic lu. I askea tne minister if it v.ere necessary for
us to comi)1y ,viun any conaitions oefore the privileges
mentioned aoove woulu be t)rantea anu just wnat our obliga-
tions would be unuer sucn ail arrangement.
Toole 11. i'ne 2tiinister answered that ne not intenu
to exact any promises from us, out that he hopea that
'the-eniteu states woula appreciate tie spirit of sym-
pataetic cooperation which motivated the offer and
woulu reciprocate to the extent of immeuiately gratifying
the most urgent needs of Angola for certain essential tae
lac4 of which coulu certainly result in the collapse of
the colony's economy.
Topic 12. These essentials, for which I can vouch there
is an immediate need, include the following:
1. Of tie greatest urgency is the need for 2,065 tires
of assorteu sizes whicn would be rationed under the
joint supervision of ourselves aria the Angola Govern-
ment to idle non-Axis commercial vehicles which are
badly neeaed for the transportation of proauce.
aioaest quantities of railway springs aria wheels, medi-
cal supplies, elec:tric wire anu nails, telephone and
telegraph equipment and supplies, par eteel anu angle
iron, galvanized water pipe and tubing.
3. Possible two or three secondhana commercial passenger
planes naving ft. seating capacity of between 8 and 14.
If requested I will telegraph uetails.
Topic 13. The Minister promised that he woulu authorize
the export of whatever Angola commoditiee we aesired, in-
cluding rubber, at :air prices in return for such e.3sen-
tials for which the Angolan Government was preparea to
pay cash. :he Ainistery furtnemore said that this
arrangement woula I:. no way conflict witn the Anglo-American-
Portuguese trade negotiations which are now unuer way in
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Lisbon and wnich he apparently believes are stalematea.
It was also suggested by the Minister that we eoule find
it advantageous to look into the trace situation in
Mozambique. For tnis purpose he offered to facilitate
cur journey.
Topic 14. It was specificaely stated t); the Minister tnat
if we were interested in principle (repeat prenciple) in
the :oregoing proposals, he rpoula appreciate neving us
indicate sue.: fact to him tefore October 31 at which
time he expects to leave Luanaa on an inspection tour
wedch will last for two weeks. ihe Ainister also voiced
the hope that we could reach a definite understanding be-
fore the tiree comes for him to sail for Portuval (unuer-
ssom to be about November 20). When 1 inquirea if the
question had to be referred to Portueal (*) Angolan matter
over which he has been given the autnoriey to act.
Topic 15. I am nw awaiting the Departmentts instruction.
May I point out that the informal proposals of the banis-
ter would appear to give us an opportunity for obtaining
an advantageous position in this colony ana may conceivably
be a Port%:guese gesture towara climbing aboard the Allied
band-wagon.
Topic 16. In connection with the toregoing, attention is
callea eo the modern bulk petroleum products tank in-
stallations at the laid-locked deep water port of Lobito,
owned and operated by Compania de Comoustine Isdolopvto,
otherwise called Carbonang, local subsidiary of Petrofinac,
the Belgian company whose storage tanks at Ango Ango,
Belgian Congo, are being used by Vacuum, Texaco, bhell
and our government.
Topic 17. Carbonang has 7 tanks with total capacity of
5950 cubic meters, which are filled by pumps airectly
from tankers alongside modern quay. Of these two 1500,
one 500 and one 350 cubic meter tanks are now available
for storage of gasoline or other petroleum products,
while one 1500, one 500, and one 100 cubic meter tanks
are reserved, respectively, for fuel oil, iiiesel oil and
kerosene.
Topic 18. You are informea that in May of 1940 the London
representative of ?etrofinac, Leopold Walforu
Limitted, signea a contract with Gueret, Llewellen ana
garret, Limited, London, sub roaa representative of the
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3ritisli proviuea t .; t
cs,ulu use the installations of Uarorin&m, at aoJi-..o
ev_r trey .6ish..a. As yet the Au:air,iity r1;1. awea
itself of v.is privilee. howev(.r six wee.s bE.:(.. the
Admiri-!ity supplied 500 tons of Welsh con.).
unuer a similar separate agreement. A priv-te comny
was usea by tne Aumiralty as the contr,1:ctint, intcrmeuiary
ir order ttp avoid infringing upon Garbonangt:, contr,ct
witn the Angolan Government. in this tr&nsaction Car-
tonang was to receive a per ton fee similar to :,:at
efIect at no no for receiving, storing &nu deliver-
Topic 19. I have beer. asKed uy ,r. t). ?ittaru, A
iiritish subject anu the local uirector at uarbonang,
.4netner tne uovernment of the bnitea zA&',es i: interested
in usint, the Lobito facilities. If we are inte.:ested,
rittara believes the Admiralty vvoulu criel Carrionang13
contract.
Topic O. I dm tola by Pittard that ample room for the
expansion of storage fdcilities at Lobito exists ana tnat
local wharf charges arl.: three shillings eight pence per
ton handled plus three nuarters per mule aa valorem.
1.
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HARRY T KLEIN
eXECuT iv E VICE FME510ENT
A:40 GENERAL COUNSEL
Hy dear Bill:
Replying to your letter of August 10th will say it is
hardly necessary for me to assure you that The Texas Company is
willing and anxious to cooperate in the important work on which
you are now engaged. However, I have already made plans to leave
here tomorrow and expect to be away about three weeks.
In the meantime, I suggest that you have your associate
contact our Mr. C. E. Olmsted, Vice President in charge of export
matters for The Texas Company, and explain to him the assistance
you gre seeking. Mr. Casted is located at our New York offices
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August 10, 1942
Colonel H. T. Klein,
ELecutive Vice-PrPsidant and Cent,ral Counsel,
The Texas Company,
135 Last and Street,
New York, N. Y.
Uy dear Harry:
There is a confidential matter in wAch the co-
operation of 3/Our Ixport Department would be of consider-
able assistance to this office. You will understand that
cannot state its nature to you in writing, but I would
greatly appreciate your receiving one of py associates at
your office, wno will explain to you the character of the
help we would like to have.
shall be irery grateful for anything you feel
able to da*
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William J. Donovan
Director.
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OFFICE OF STRATEGIC SERVICES
INTEROFFICE MEMO
FROM: David Bruce
Colonel Donovan
SUBJECT:
SECRET
OFFICE OF STRATEGIC SERVICES
Mr. Shapiro has developed, in an inforoial
conve7sation with one of his former associates in the
Texas Company, that that firm Is maintaining a salaried
representative in Angola and that they contemplate re-
placing their man in Angola by another member of their
West African Staff who is now vacationing in the United
States.
We are having a certain amount of difficulty in
gettIng obrervers into Angola and this would seem to
be an excellent opportunity. The Texas Company will
apparently have no difficulty in getting the necessary
Angola visa, and their business in that Portuguese colony
would provide a very satisfactory cover for one of our
men. If satisfactory arrangements can be worked out with
them, it is our intention to investigate the candiriate
and if he is found to be suitable for our purposes, to
give lam a few weeks or training and indoctrination
after khich the Texas Company would take him in hand
and sand him out as their employee.
77.1
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In order for us to Niork out the rItiAls ,bitb tke
export manager of 4;ne Texas Company, it wcul he af.vi:
zAple for that person to receive an aircivz.1 Ir. :rinif
from some higher official of the company ,,r41. for tis
purpose there is attached hereto a proosed text of
letter for your signature to Colonel H. T. Klein,
Executive Vice President of the Texas Corpany.
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A_Djji 77&
,?,10, ?
SEOFIEriffi--4
SERVICtiFFICE OF STRATEGIC SERVICES
AO
PY*04/4sca_t-
I suggest that the attached letter be taken
by Captain Doring to Mt. Byron Spence, Principal
Pood Liaison Officer, Lend-Lease Adrinistration. The
Utter from B.E.W. with regard to the purchase of this
tuna fish by Lend-Lease goes today, August 26th, to
W.: Spence.
I am informed that Lend-Lease approves the
transaction Int that it must be brought before a meet-
ing of the Board. It is important that there be no
hitch or delay in the negotiations at this stage.
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SECRE
With reference to your memorandum of August 26,
1942, addressed to Mrs Uurphyp regarding the tuna fish -
tin plate arrangements, I have delivered today to Ur* Biro=
Spence at Lend-Lease & letter addressed by Colonel Donovan
to Mr. Stettinius, copy of which is hereto annexed*
Mr, Spence informed me that the matter was
being held up pending receipt of the papers from B. K. W,
whieh have not yet been received*
an returning herewith the rite which was
enclosed with your141100randUIS. to Mr* Murphy ?
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--
&
kr. E. E. Stettinius, Jr,
Aaministrator
Lendo.Lease Administre.tion
.iashington, :. C.
Dear Ir. Stettinius:
understand that there is before the 30arcof
the Lend-Lease Aumiaistration a poposal to purcaaLe
tuna fish that is being packed in :Jagola, PortugueLc
test Africa. Arrangements for the Laippin6 of tin
plate; to Angola for the packing ? the tuna fish have
been made by Frazer and Company of New York, 4114
am informed that the Boa.A. of Economic fia,t1alc am! the
state Lepartment have aroved these ar angement;,.
? In Your consicOrAion.pf thia matter anu as a
or in the decisice to be made, I think you shciuld
?
advised that the consumation of tneae arrangewents
gill be of substantial bene:it to thio
Yours very truly,
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OFFICE OF STRATEGIC SERVICES
INTEROFFICE MEMO
FROM: WILLIAM A. LUBEL
TO:
SUBJECT:
COLUEL DONOVAN
'. 1/4:
At Mr. Berle 's request I met with him at the Depti_,:twent ol
cenverzLtions hrd b.er
State. Among other 4.uk,stions he raised tLct oi
held in retard to prw.ctiLg activit*Les in Ancol.
resulting from convtxsations zith Vajor Bruce, thnt
action in utilizing the services of Linton 7.e1ls
Mr. Btrle? even though he and Sumner Welles had scrIP
Mr. Berle stated that he raid this ques4.ion
becnuse
f State had indications that activity in Angola and the
-v
ment o
_
would be intensified in the near future, and thLt it woulu be nthible 4.c ,
the basis for our extivities there as quickly as pcs.ible. I advised Mr.
Berle th6.t a project to this end is now bein6 prepared anuthtLe will be
advised when and if Colonel Donovan aprroves it.
Mr. Berle again affirmed nis desire to cooperate vdth us in
this or aav other projects of thia nature.
This matter was discussed personally witl, Hugh Wilson and
Boultoa, end 1 haye advised Mr. Berle as indicated in
aoove stzteme3t.
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I have been informed that the Minister of Colonies of
Portugia. is nes on the 1M17 fe Mesambique via the Cape Verde Mena,
and Angola far the purposs of trying to find some solution for the
',canoodle problems confronting theme colonies. At the ism* time bUrir
printigel in the Olivia matter has been approached by the Portogasse
Gevcrommunt with a view to homing him establish a shipping service
bottoms the United States, Angela and itossabliros under the Portuguese
flag. The basis of this earvimovemld be a suitcal exchange of cahm.
modities, 1/010, mostly ?Gummier goods from the United States, inreturn
for alma, copra oils, coffee and,Wparli
In view of the situatilon cerrearlding the Olivia enterpriSO
bittire refused te totems* in any of Mr. Bye difficulties for fear
of giving the sow any, and *Oar* having as little as possible to do
with 411 eenneeted with Mr. B or the Flomarcy Company.
have Warned itr, 8 that in vies of our pdlicy vs did not wish to
int#,TOMO in his What for tho estoblLsbeent of this new line.
The xdlitary sanction is tby Neer Sectland the resulting
nparma *lab immrr water larremelhout Atria*, night cempel us to
MCP.
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take an ineroaned interest in Angola and ilosambique. It is con:arable
BramisefiLlle or Leopoldville miett biome of increasing importense
an an air tandnal for a orose.lfrioan line. Angola is very close to
these places. A neutral flag ship plying between the United States,
Gays Yard. .Lelandat and Angola) atisht tern out to be of inestimable value
?to us at a later date* I mould suggest that the matter of vhether or
not ito should in Ma* VII7 ar other help this line got into operation
be given serious eonsideratieno
CC Cole eel Benton
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