U.S. ECONOMIC AID OFFERED PORTUGAL

Press, Volume C, Issue 29510, 11 May 1961, Page 15

U.S. ECONOMIC AID OFFERED PORTUGAL

Help In Giving Colonies Independence (N Z P.A .-R cuter— Copyright)

WASHINGTON, May 9. The United States has offered to help Portugal make up for any economic loss it might sustain as a result of adopting a policy of independence for its African colonies, usually reliable sources said today.

The offer was made in a long communication sent to Lisbon several weeks . ago explaining why the United States intended to vote for discussion of the Angolan question at the United Nations, the sources said.

It was said that the United States would try to compen. sate, with economic assistance through such agencies as the International Co. operation Administration, for any loss Portugal might incur by a change in its colonial policy. The American position was believed to be that it fully realised Portugal depended economically on its African colonies but that it did not believe the present situation could be maintained much longer.

The United States felt, it was said, that both in Angola and Mozambique there was a possibility of an explosion, which could have very serious repercussions in the rest of Africa. However. the Kennedy Administration had assured the Portuguese Government that it wanted to help it in every possible way and ease

the burdens of transition if possible. A commercial airliner on a flight to Sao Salvador, northern Angola, was hit in the fuel tank today by machinegun fire from insurgents on the ground, according to a Lisbon report. With petrol streaming from the tank, the plane—belonging to the Portuguese domestic line of Angolaturned back to Luanda air. port, where the pilot landed it safely, the Lusitania news agency reported. As more troops and military supplies were being sent by air from Portugal to Angola today, the Portuguese Cabinet met in Lisbon for the first time since its recent reshuffle.

Under the chairmanship of the Prime Minister (Dr. Salazar) the Cabinet discussed the situation in the territory, an official announcement said.