German Intentions towards Spain and Portugal. Note by Secy.

5. The occupation of Portugal would provide the British Commonwealth with an opportunity of occupying the Azores and other Portuguese overseas pssessions, and would remove a centre useful to the Germans for communications, intelligence and trade. (Paras. 17-18). An attack on Portugal alone, or a military move aimed simultaneously at Spain and Portugal is therefore unlikely. It is more probable that Germany will apply pressure on Portugal from a German-controlled Spain, aided by the Spanish Government themselves, at any rate until she has herself infiltrated in strength into Portuguese overseas possessions.