PORTUGAL’S PLACE
SEEKING THE MIDDLE ROAD FRIENDSHIP WITH BRITAIN. DR. SALAZAR’S POSITION. I With the war in the Mediterranean area importance is attached to Portugal, virtually Great Britain’s last potential ally in this theatre of operations, says the “Christian Science .Monitor.” The foreign policy of this nation of 7,000,000 whose, colonial empire of 800,000 square miles —23 times as big as the mother country —is being coverted by Germany, Italy and Spain, has indicated that Portugal seeks the middle of the road. Only recently a “mutual consultation and assistance pact” was signed with General Franco’s Government. Some 18.000 Portuguese have fought for General Franco and Portugal's Prime Minister, Dr. Oliveira Salazar, favoured the Spanish revolution as long as the fighting was directed against the Communists. But he became uneasy .when the alliance with the Axis seemed to be closer than he liked it. The recent pact was less proof of deep friendship between the State of General Franco and the State of Dr. Salazar than a hint to both Germany and Great Britain that “protection” might not be welcomed. A balance in Portugal’s foreign policy is apparent in its alliance with England. In a speech before the National Assembly. Dr. Salazar said on October J. 1939. that Britain had not asked any help from Portugal, although the latter would have been obliged to enter the war on England's side by virtue of the existing alliance between the two countries. He expressed the hope, however, that peace might be preserved “unless the dignity or interests ol 4he nation, or other obligations, force us to go to war.” He did not fail io reiterate “our sincere feeling o. friendship for England." adding that l 'it would not be fair if we failed to stress the adherence to our alliance In the same speech Dr. Salazar made public that Germany had guaranteed Portugal's independence and the integrity of the Portuguese colonial empire But this balanced policy between Britain and Germany, no matter how well it is working at the present time, has to allay Portugal's uneasiness over the fact that this country, with its enormous overseas possessions . other assets, would constitute e prize for any aggressor nation. Foi this reason Portugal, despite many internal gains which have ™ R* S one of Europe’s most piogiessiv states is uneasy lest these very gains be shattered by external developments. FINANCIAL PROGRESS. One of the most important of these gains which Portugal has made in the past 12 years is finance. In a world where debts are mounting and most oi the European nations are living far above their means, Portugal has become an exception by returning to a sound economic system. This is seen best by the fact that within 76 years from 1852 to 1928, the nation had but two balanced budgets. All the others accumulated. The expenditure, for instance, in 1926-27, exceeded the country’s revenues by about 40 per cent. During the administration of Dr. Salazar, however, Portugal has managed to keep: expenditures just a little bit under the revenues. A few weeks . ago this process was crowned when the whole foreign debt of about £27,000 000 sterling was converted into an ' internal debt. The principal method • by which Dr. Salazar has accomplished this feat in balancing the budget has been through heavy taxation, and I by bringing the nation's banking system more or less under direct Gov- ’ eminent control. The fact that Dr. Salazar has accom- > plished this is no less noteworthy ’ when it is considered that he was not 7 originally a politician but a university professor. He came from a very pool family. His father was an innkeeper, and it was only through hard work that the younger Salazar managed o make his way through to a professorI ship in national economy at Coimbia University. He had his own ideas 1 about the Government's failings, and - he voiced his opinions in newspaper t articles and pamphlets which built up r a circle of young people around him. When the nation was in need, socially, economically and politically, the President of the Republic offered Dr. Sala--7 zar the post of Minister of Finance. 3 The professor refused on the grounds 7 that he did not want to do an un--9 sound job, collaborating the old 6 politicians who had dragged the coun 2 try from one revolt of peop e < i X to ooolher. HO oskod tor M 9 power? They refused to give it 1 him and he went home to his umveis--1 Uystudents. Soon nttorwnrds how--13 ever, he was called upon again and hi 3. terns were met this time. He entered ’■ he. cabinet as Minister o! Finance >n 1928 and in 1932' became not 01 y Prime Minister, but Minister of Finance, of War, and of Foreign Allans, combining the four most importtaiH offices in the Government. As time Wui on. he became a virtual dictator.
NEW CONSTITUTION. The now Constitution the country received on'March 19. 1933, gave him authority to manage the nation’s business. But practically the only point on which he has exercised anything approaching fanaticism is in regard to saving and putting the nations budget on a sound basis. A popular joke in Portugal suggested that Dr. Salazar had even taken over four Ministries in order to save the salary of three members of the Government. He differs from other authoritarian rulers in other respects, too. All parties have been dissolved in Portugal and then exists but the National Union, a kind of patriotic organisation, open to any good citizen. In the matter of the persecution of minorities. Portugal s record is less sinister than that of some dictatorships. Communists have been severely dealt with, however. A foreigner coming to Lisbon as this writer did two years ago. would get the impression 'that he is watched 24 hours a day. There seems to he one police-
man for every citizen. Ono is told that they are “just a precaution.” they have to see to 'it that nobody deviates from the Constitution. They arc a peripatetic symbol of this compromise between democracy and Fascism. The same middle road has been kept in every way. The Government has an eye on everything. It promotes exports, but sale of goods to foreign countries depends on a permission given only it home consumption needs have been met first. Dr. Salazar has little to say for the barter system and. autarchy. Currency has been kept free of' any restrictions and it was closely related to the pound sterling (110.10 escudos to one pound), until in last November the British currency lost value and the escudo was fixed to the United States dollar. Trade with the United States has gone up. too. Imports from this country almost doubled in 1939. ex. ports remained steady.
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Wairarapa Times-Age, 26 December 1940, Page 6
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1,132PORTUGAL’S PLACE Wairarapa Times-Age, 26 December 1940, Page 6
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