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Secretary of State,

Washington.

2200, May 29, midnight. (SECTION TWO)

We cannot provide an army to defend Portugal on the mainland, and the same is true of Spain, though we would try to help a guerilla there. Meanwhile we were about to offer Portuguese antiaircraft and other equipment to defend Azores and Cape Verde Islands, and were encouraging them to withdraw their Government there if overrun by the Nazis. If Salazar accepts our help and protection in the islands we would of course welcome assistance of United States support. As we are already discussing with Salazar help to Portugal, had we not better go ahead and try to obtain his approval of the idea withdrawing to the Islands? It is a matter of approach and method. These could be discussed forthwith between State Department and Foreign Office. Whatever Salazar's decision we should in the event have to obtain control of the Islands for which United States cooperation would be invaluable.

JOHNSON

CSB