Salazar and the Funk Plan

In a letter, dated 26 June 194, written to David Eccles [MEW in Lisbon] , Roger Makins [here and here], of the British Foreing Office, asked him about the intentions of Salazar concerning the course of the War. «Is he tempted by the possibility of exorcising the spectre of Bolshevism and the menace of American materialism at the cost of accepting a place in the New order?».
A footnote remarks that «Hitler's new order envisage in the Funk Plan», which means this plan for Europa devised by Walther Funk [see here and for further references here] III Reich's Minister for Economy and President of the Reichsbank [full text here]:

«By concluding long-term economic agreements with European countries it will be possible to assign a place for the German market in the long-term production planning of these countries, i.e. as a safe export outlets will be found to exist for German goods in European markets.
By creating stable exchange rates a smooth working system of payments must be assured for the carrying on of trade between individual countries. In so doing we hall link up with the existing payments agreements, which will be expanded to include a greater volume of trade on the basis of stable exchange rates. By an exchange of experience in the field of agriculture and industry a maximum production of foodstuffs and raw materials must be our aim, and a rational economic division of labor must be achieved in Europe. By the appropriate use of all economic resources available in Europe, the living standards of European nations must be raise, and their safety in face of possible blockade measures from outside Europe must be increased. A stronger sense of economic community among European nations must be aroused by collaboration in all spheres of economic policy (currency, credit, production, trade, etc.). The economic consolidation of European countries should improve their bargaining position in dealings with other economic groups in the world economy. This united Europe will not submit to political and economic terms dictated to it by any extra-European body. It will trade on the basis of economic equality at all times in the knowledge of the weight which carries in economic matters».

David Eccles & Salazar

Incredible how secrets could be revealed with such a detail, but love prevails over reason and common sense. I am working now on David Eccles [MEW representative in Lisbon during WW2 days, arrived to Lisbon at the time Sir Walford Selby was HM Ambassador] book By Safe Hand [The Bodley Head, 1983] which is a collection of letters exchanged between him and his wife Sybil. Reading these we can follow not only the course of the events but became aware of information that could not be traced in the Archives. «I saw Salazar yesterday and was immensely impressed, nothing I had heard could have equalled the dignity, good sense and charm of the best-looking dictator in Europe», he shares with her. 
Graham Green wrote a novel about The Human Factor in the intelligence world. He was right.

The Blitz

 
Neutrality saved Portugal of these horrors.The flood of refugees that came across our frontiers know that this is the true.

Blunt and Operation Triplex

In his memoir's book written in Moscow - then the capital of the Soviet Union - Harold Adrian Russel («Kim») Philby reveals: «There were also sophisticated techniques of opening foreign diplomatic bags. This method could not be used against the enemy directly, since German and Italians bags did not passed through British territory. But the bags of the neutral states and the minor allies, such as the Poles and the Czechs, were fair game». And he adds: «(...) the diplomatic correspondence of the South American states, of the Spaniards and Portuguese's, of the Czechs, Poles, Greeks, Yugoslavs and many others, was regularly subjected to scrutiny».

After research, I came to the conclusion that the man in charge of the Portuguese bag was Anthony Frederick Blunt, a MI5 official and one of the Ring of Five communist moles in the British intelligence élite, later Professor of the History of Art at the University of London, director of the Courtlaud Institute and Surveyor of the King's Pictures. I wrote it here.
I quoted from here [Oleg Tsarev/Nigel West book description] more details: «Triplex has been considered too secret a source ever to be mentioned outside the most senior levels of security and intelligence services, and none of the official histories of British Intelligence in World War II contain even a single reference to it. More sensitive than Ultra, Triplex was the codename for a joint covert operation to gain access to the diplomatic bags of neutral embassies in London and photograph their highly secretive contents. The MI5 officer selected to supervise this clandestine operation was Anthony Blunt, who also took copies for his Soviet contacts. Some of the most astonishing documents ever declassified by the KGB's archives are contained in this collection, unseen by anybody in the West since they were sent to Moscow by Kim Philby, Anthony Blunt and John Cairncross. These remarkable reports are never likely to be released by any British government, but they are of such compelling historical interest that they have been gathered together by the KGB's leading historian, Oleg Tsarev, and the British espionage specialist Nigel West, who have placed them in their proper context» [the book is indexed here].

About Triplex as a tool for intelligence in Mincemeat Operation see Ben Macintyre here.