Memorandum of Conversation with Secretary of State Dean Acheson, the Ambassador of Portugal, and Theodore Achilles

00 30051 s/s DECLASSIFIED E. O. 11652, Sec. 3(E) and S(D) or (E) Dept. of State letter, 133235 DEPARTMENT OF STATE 629 189-a By NLT- Ha : NARS Date 4-26-76 Memorandum of Conversation US NTIAL DATE:July 12, 1949 SUBJECT: Beira Port and Railway NATIONAL Portuguese Ambassador PARTICIPANTS: Secretary of State RECORDS c SERVICE^ T. C. Achilles, EUR s/s COPIES TO: AF - Mr. Awalt TRC/S - Mr. Harway IR - Mr. Bramble ED - Mr. Beigel DRE - Miss Sullivan SWE - Mr. Dunham American Embassy, Lisbon 1-1493 The Ambassador called at his initiative and discussed the question of the development of the Beira port and railway. He recalled that the US Government had first raised the question with his Government some months ago at the instance of ECA in view of the importance it attached to this development project with a view to expediting the transportation of strategic materials from the Rhodesias. Since that time the Lisbon Conference on transportation problems in Central Africa had reached agreement that the development should be pushed and the Portuguese and UK Governments had agreed on the transfer of the railway to Portugal. The Portuguese Government had paid the British Government $26 million for the railway and had authorized another $24 million for its development. The British Government was most anxious to furnish the equipment for development of the port and railway and had agreed that blocked sterling could be used for this pur- pose but the Porfuguese Government believed that it would take a long time to obtain the necessary equipment in the UK and that it could better and more quickly be obtained in the US. His Government estimated that the cost, if ECA could finance it, would be $16 million (in addition to the $24 million in local currency which the Portuguese Government would expend). He wished to know as quickly as possible whether ECA would be in a position to finance the project. He strongly hoped that it could be financed by ECA but that the