Spain and Portugal: German Intentions towards Note by Secy.

page 2, paragraph 5. Should not this commence "The occupation of Spain or Portugal ..."? Surely we would seize the Azores the moment Germany occupied Spain, without waiting to see whether she also occupied Portugal. Paragraph 6. Is it certain that Germany will drive Spain to an overt act hostile to the Allies immediately on the conclusion of the campaign in Greece? Is it not possible that she may, as a first stage, covertly intensify her preliminary 'infiltration' activities and, in particular, improve and increase her hold over submarine bases, airfields and battery emplacements on both sides of the Straits with a view to closing them to our shipping at an appropriate time? So long as this proceeds apace, need Germany 'blow the gaff' and have a starving disorganised Spain on her hands until later, say, June when the first harvest is in? In other words unless the Germans are driven to attack a hostile Spain, will she not employ the well-worn tactics of gradually increasing control so that we and the United States of America are placed in the dilemma of not quite knowing at what stage supplies should be cut off, which would surely happen if Spain openly acceded to the Tripartite Pact or allowed passage of troops through her country.