Why was Portugal Neutral in World War 2

During each world war, a handful of countries throughout Europe decided that it would be best if they remained neutral and non-belligerent, staying out of the fighting, and therefore saving their citizens from inevitable doom and death on the battlefield. Neutral nations are ones that not only stay out of the military conflict, but also show no bias toward one side of the war or the other. A non-belligerent nation does not fight the battles directly, but may support one side or specific belligerent nations nonetheless. The difference is often minimal, and debated as to whether some nations are neutral or non-belligerent, such as in the case of Portugal during the Second World War. Officially, Portugal was neutral during World War II, although some debate whether they were actually non-belligerent due to a previously formed alliance with Britain. Ironically, though, at some points during the conflict, Portugal actually showed favour to Germany, which proved that they were not, in fact, biased to one side or the other. But this also showed that Portugal had relationships with multiple belligerent countries, which then begs the question, why was Portugal neutral? First, let's take a look at the alliance between Portugal and Britain. The Treaty of Windsor was a friendship pact and peace treaty signed between John I of Portugal and Richard II of England back in 1387. This meant that for nearly 600 years, the Portuguese and the Brits had been allies, and it didn't make much sense for that to change in response to the war. It did have an impact, though. For one matter, it played a role in Portugal's decision to refrain from joining the Axis. Portugal's leader at the time, Antonio de Oliveira Salazar, reached out to the Brits prior to announcing his nation's neutrality and was able to establish an agreement on the fact that, while the Treaty of Windsor would prevent Portugal from joining the Axis party, it did not automatically require the Portuguese to fight alongside the Allies. While the Brits respected this decision and even declared that they did not feel like they would need Portuguese support, they did find a bit of a loophole. Conspiring alongside the Americans, Britain decided that although Portuguese military aid was not a necessity, Allied use of the Azores was. Initially, Salazar opposed this, as he was always in fear of retaliation from Germany or even his next-door neighbor in Spain. The Allies, however, were sure of the fact that the use of the Azores for airfields was crucial, and the Brits insisted that the Treaty of Windsor required Portugal to cooperate on just that. Hesitant but not unwilling, Salazar eventually agreed, but informed Britain that their American Allies could not enter the Azores and would be forcibly stopped if they attempted to do so. This would eventually change, but the reason for the immediate denial was due to the fact that the peace treaty could only be used as an excuse, if pressed by the Germans, for the Brits to enter Portugal, not the Americans. Salazar was concerned on a regular basis about a potential invasion from the Axis, which was another reason as to why Portugal didn't join the war on the Allied side. Despite Portugal and Spain being fairly close, the former feared that the latter may align with Germany, and if Portugal made a wrong move, may attack their neighbor on the Axis's behalf. There was also a fear that Germany itself could invade, which put significant pressure on Salazar to remain neutral, although it appears that the Portuguese leader decided to be extra careful. Not only did the Portuguese remain out of battle, but they also appealed to the Axis by helping Germany obtain some much needed materials, like wolfram. This mineral was highly accessible in Portugal, and Salazar knew that he could use this fact and the war itself to his own economic advantage. Even though the Allies were strongly against the sale of this valuable substance to the Axis, Portugal would begin to sell mass amounts of wolfram to Germany, with some reports even stating that up to 75% of its wolfram exports went to the Germans, with only about 25% being sold to the Brits. Still, the Treaty of Windsor came in handy yet again, as Salazar decided to allow Britain to pay with credit, while Germany had to give the money up front for what they wanted. This wasn't too big of a deal for the Germans, whom the Portuguese did allow to build up massive debts in clearing arrangements, but it still showed a slight favor to Britain to offset the drastic difference in export amounts. Eventually though, the Allies lost patience with Salazar and his business with Germany, so they decided to put added pressure on Portugal in hopes of ending the sale of wolfram to their opponent. Initially, Portugal refused to put an embargo on wolfram sales to Germany, mostly due to the vast economic gain that these deals had brought in, but also out of fear of an incursion from the Axis if they were to obey the Allies. Nevertheless, just before the fateful D-Day invasion, Salazar decided to put a total embargo on both sides to avoid retaliation from either one, if he were to show any bias. The entire debacle consequently showed the Portuguese what a precarious position they were really in, and why neutrality was so important. Remaining neutral was also crucial if Portugal wanted to avoid a betrayal by their neighbor as previously mentioned. Back before the Spanish Civil War, where Portugal supported Spain's Franco, the two Iberian nations signed a non-aggression treaty known as the Iberian Pact. In 1940, as both nations worked to remain neutral and allied to each other, they signed an updated agreement following the defeat of France to reiterate their shared goals. Even the contemporary British ambassador in Portugal stated that, if Portuguese neutrality instead of being strict had been more benevolent in Allies' favor, Spain would inevitably have thrown herself body and soul into the arms of Germans. He also went on to state that, if this had happened, not only would the entire Iberian Peninsula have fallen into Axis hands, but so would their colonies in North Africa. This was understandably a fear shared by Salazar, which was yet another contribution to his decision to prioritize neutrality. An added benefit of Portugal staying out of the war was its role as a safe haven for refugees from belligerent nations. The capital, Lisbon, became a crucial destination for refugees hoping to reach the United States or Palestine, and the civilians of Gibraltar were evacuated by the masses to Portuguese Madeira in anticipation of Axis attacks. Some estimate that anywhere up to one million refugees made their way to Portugal, which could only happen due to the nation's neutrality. Finally, as Salazar knew and took advantage of, neutrality could prove to be helpful for Portugal's economy. Back before the war began, Salazar rose to power in the 1930s following a coup d'etat, although he was originally actually the finance minister of Portugal, having obtained a degree in economics in his twenties. Because of this, Portugal's economy was a high priority to Salazar, and he was fully aware that wartime could actually benefit him in this way. Remaining neutral provided the Portuguese with opportunities to trade with both sides, in a time when everyone was in need of supplies, many of which Portugal could provide. So, the reason why Portugal opted for neutrality in the Second World War is actually due to a combination of factors. The Treaty of Windsor, combined with the nearby pressure from the Axis and the potential decision of Spain to join them, made up a significant portion of Salazar's reasoning for neutrality. But the possible economic benefits also had an impact. This was in addition to the fact that Portuguese neutrality was crucial to maintain Spanish neutrality, which, in turn, was vital for Portugal. Both the Axis and Allies were satisfied with the neutrality as well. For the Axis, there wasn't much of a motive to invade or even to try and win Portugal over as an ally, especially for Germany, who already saw Italy as a burden at times and likely would have wanted to avoid the added pressure of another ally who may or may not become reliant on them. Furthermore, the Allies made it clear at the start that they did not need Portuguese military support and being able to use the nation as a safe haven or middle ground for refugees had its own benefits as well. Having one less player in the game was actually helpful for both sides as long as Portugal was giving them what they wanted, which continued to encourage neutrality. Overall, there were more reasons for Portugal to remain neutral than to enter the war on either side. If the Portuguese had chosen to join the Allies or Axis, they would have endangered not only their troops but also their economy and possibly their civilians due to the close proximity to Spain, who likely would have joined the Axis. The sales of wolfram and other goods would have been reduced as Portugal could not have sold to both sides, and the lucrative period of doing so up until the embargoes were placed would have never been able to boost the economy as it did. If Salazar had chosen to join the Axis, he also would have been breaking a centuries-old treaty with one of Portugal's close allies, which simply would not have been a good idea. Ultimately, Salazar's decision to remain neutral was not just tolerated but even praised by some of the warring nations, and it proved to be the wisest option to take for Salazar himself and for the Portuguese people.