1960 - Economy (Part 1)


1960 – 1969

Economy (Part 1)

National Economic Priorities

The Portuguese Federation had made great strides in its transportation and communication priorities during the 1950s. Thousands of kilometers of rail had been laid throughout the Federation along with building of thousands of kilometers of road and highways, providing the country with an unprecedented transportation network when in comparison to the previous decades. Just as the country had built its rail and road infrastructure, societal and economic circumstances changed, and the country continued to witness inefficient transportation system with part of the infrastructure overwhelmed while other parts were underused. Compounding the issue was the emergence of the automobile as the preferred means of transport by the growing middle class. A review of the transportation system revealed that much of the infrastructure had been built for needs of the 1940s and did not adequately reflect the current needs of the country never mind the needs for the next decade or two. In 1961 the Transportation Review was started to determine how best to meet the country’s growing complex transportation needs. Meanwhile the same situation existed in the country’s communication system, during the preceding two decades the country had invested large amounts in telephone, radio, television and print media but those medias still struggled to meet the country’s need. The country struggled to manage the ever-increasing needs for communication both internal and external as well as increase bandwidth and spectrum of its radio, television system as the needs and desires of the people evolved. Complicating the problems was the vast distances between the provinces on three different continents.

The Transportation Review conducted between 1962 and 1964 outlined the following major government priorities:

  • Doubling of existing urban metro systems in all major cities along with tripling the linked above ground rail in outskirts to ease congestion and smog.
  • Continued expansion of the bus services in both urban and rural areas to ease congestion in busy towns and cities. Develop different bus models to meet the diverse transportation needs in cities, towns, and rural areas.
  • Expansion of the National Road System connecting major economic and urban centers together by building additional “auto-estradas” highways to ease movement of people and goods in high traffic areas. Continue assisting provinces in developing provincial road system connected to national system as well as provide for local transportation needs.
  • Expansion of highspeed train service between major urban centers as feasibility studies warranted it. Provide financial and regulatory assistance to rail companies in modernizing and increase speed of rail service.
  • Modernization of Portuguese ports to speed transportation of goods and merchandize between various ports and export markets.
  • Expansion of air transportation infrastructure and technology to speed the movement of people and goods between various provinces.
In terms of communication the government priorities were:
  • Build regional FM broadcasting networks to accommodate the growing need for diverse radio stations especially in the large urban areas where radio station crowding, and quality was becoming an issue.
  • Expansion of both public and private television and allow for the entry of private broadcasters,
  • Assist in the expansion of the telephone infrastructure to help alleviate poor sound quality and number of dropped calls,
  • Provide incentives for Portuguese companies to develop communication infrastructure and technology to address the limitations on importing technology in the country.


During the 1960s urban transportation became the country’s primary transportation priority. The underground metros of Luanda, Lisbon and Porto continued to be expanded with new lines being added. By 1969 Luanda’s metro had doubled in size compared to 1960 and in 1964 a new metro was also started in Lourenco Marques. The underground metros were linked to above ground urban rail service and cities like Beira, Coimbra, Benguela and Amadora receiving hybrid systems, with parts of the metro underground in central part of city then continuing above ground in less dense parts. The urban or metro rail service linked many cities to sprawling metropolis towns and cities growing on the outskirts of the major Portuguese cities. The two most dense urban rail networks were the Luanda Metropolis and Lisbon Metropolis network that served population of three times the size of the two largest cities.

Bus ridership in the 1960s began changing as the existing bus network failed to meet the citizens needs and availability and cost of cars made car ownership possible to millions of new people. In 1964 the Transport Review emphasized different strategies for the urban and rural areas. Rail/Bus terminals were expanded or built to link bus service with rail/metro service. In areas without rail service or away from rail service central bus terminals were built to link multiple regional routes to central location allowing for faster and more efficient bus transportation. In rural areas where people’s income was lower and there were less cars, bus transportation was expanded. The production of busses for the Portuguese market also changed as several types of busses were manufactured: minibuses were manufactured for low ridership routes while larger including double decker buses were manufactured to handle high density routes. In larger cities, electric buses were used on dedicated electric routes to reduce smog and oil consumption.

The construction and expansion of Auto-Estradas as well as free connector roads continued. The most extensive being along the coastal West Africa and coastal East Africa corridors. Auto-Estradas along the highest density coastal provinces was prioritized. The major bridges on the Iberian Peninsula, West Africa and East Africa were completed and inaugurated with great fanfare.

In 1962 the Portuguese rail stock and locative companies RSH&MCC and Henschel & Sohn unveiled the new dual track locomotive and rail stock capable to switching from Portuguese gauge and standard European gauge, 1,664 - 1,435 mm. In 1964, they unveiled the triple gauge trains with capability to move from Spanish to Portuguese and to Standard European 1,672 – 1,664 – 1,435 mm. The rail gauge being used in both Portuguese India and the remaining Indian subcontinent was “Indian Gauge 1,676 mm”, the relatively small size of the Portuguese Indian provinces and their distance from one another crossing multiple countries had stopped any rail transportation initiatives to connect them together during the 1950s. Transportation between the provinces was done mostly by ship. In 1960 the Portuguese provinces of Daman and Diu was finally connected to the rail system of Baroda. Thus, for first time allowing goods and people to travel from Goa to Daman and Diu.[1] The 1962 the Portuguese - Indian Economic Union (IEU) agreement allowed for the entry of the Portuguese rail companies into the IEU rail infrastructure market. Portuguese rail companies expanded into Indian subcontinent building locomotives and rail stock in both Portuguese India and IEU countries.[2] In 1965 the Goa – Bombay – Daman – Ahmedabad – Diu railway was started to connect all three Portuguese provinces and the countries of Democratic Union of India and Kingdom of Baroda with a modern and fast train service capable of handling both passenger and transport trains. In South America both Portuguese rail stock companies took a direct investment in the continents rail infrastructure. RSH&MCC concentrated on Brazil while Henschel & Sohn became entrenched in Argentina.

Railway gauge conversion in Portuguese East and West African provinces was completed by 1962 but the expansion of train service was only completed at the end of the 60s. The first major Portuguese transportation project outside the Federation was the Trans Africa Portuguese Railway connecting Serpa Pinto to Quelimane through the Central African Federation. It started in 1960 and for the first four years substantial progress was made in the construction project crossing the Portuguese Central African Federation border from both east and west by end of the year. In 1964 Central African Federation collapsed and Zambia, Malawi and Rhodesia emerged as independent countries. The Trans Africa Portuguese Railway crossed the country of Zambia and the Portuguese was determined to assist the country in its development, so the Portuguese Federation increased payments to Zambia as well as increased the number of Zambians working on the railway projects. Substantial progress was made from both east and west with the eastern trunk reaching approximately 20 km east of the capital Lusaka by 1965. That year relations between Zambia and the Federation deteriorated with Zambian President Kenneth Kaunda demanding that the Portuguese both double the worker’s wages and the fee paid to Zambia. Negotiations were set to take place in the Zambian capital Lasaka, on 5 March 1965 but on 1st of March the Zambians cancelled the talks and closed its borders with the Federation and all work on the railway stopped. In 1968 after the African War, the Portuguese returned to Zambia and began repairing the extensive damage suffered by the Trans Africa Portuguese Railway between 1965 – 1967. In 1968 with the establishment of several friendly and allied African countries around the Portuguese Federation an integrated transportation plan was instituted to not only complete the Trans Africa Portuguese Railway but to also connect the African countries of Malawi, Zambia, Rhodesia, Namibia, Botswana, Katanga, and Ruvuma to Portuguese Federation as well as to each other and to deep seaports.


Southern Africa 1969 showing existing and planned railways.
Portuguese Federation (Dark Green), Portuguese Aligned countries (Light Green)

In Central Africa, the Portuguese Federation worked with the Kingdom of Kongo and Republic of Katanga as well as the friendly country of Gabon to develop an extensive rail network rivaling anything the colonial powers had accomplished prior to Gabon’s independence. Katanga’s railways which were already in midst of being modernized and expanded since 1965 would be linked to Kongo and Gabon railways giving it another route for exporting and importing products outside the congested Portuguese railways and ports. When the neutral country of Cameroon heard of huge Portuguese plans it was intrigued and an agreement between Cameroon, Gabon and the Federation was signed in 1969 to not only link Cameroon to the new African railway network but also to assist Cameroon in modernizing and expanding its own internal rail network.


Central Africa 1969 showing existing and planned railways.
Existing railways shown in solid Red and planned railway with dotted Red.

In Northwest Africa, the Portuguese faced greater challenges both politically and territorially. Due to the relatively small size of the Portuguese territory in the region it made it economically harder for the Portuguese to advance with a proper transportation plan. The agreements in both Southern Africa and Central Africa created lots of enthusiasm especially amongst the politically friendly countries of Senegal-Mali Federation, Guinea and Togo. In 1969 at the Dakar Summit an agreement was signed between Portuguese Federation, France, Senegal – Mali Federation, Guinea Boke, Guinea, Togo, Upper Volta, Gambia and Casamance to build the regions first interconnected rail network. The French realization at the huge business potential in the continent convinced them to participate as a full partner and as part of the agreement for their support French companies would be allowed to also participate in the Southern and Central African railway projects. So, at a time that British were distancing themselves from the Portuguese Federation the French were cautiously starting to cooperate with the Portuguese Federation.

The West African Rail Transport initiative would link the railways of Portuguese Federation directly with Senegal – Mali Federation passing through Casamance and Gambia. The railway network of Senegal – Mali Federation was to double in size and receive major modernization including new locomotives and rail stock. An agreement with Guinea allowed for the linking of the Senegal – Mali Federation with the Guinea system that too was to be expanded and modernized. The country of Togo was also slated to receive major boost in its rail network expanding northward and linking the separate former Benin railways to the Togo as well modernization of the railways and rail stock all dating from before WWII. The final deal was the three-way agreement between Togo, land locked Upper Volta and Senegal – Mali Federation to build a railway from Segou in Senegal – Mali Federation through the capital of Upper Volta, Ouagadougou, and to Lomé in Togo. Thus, providing both the Senegal – Mali Federation and Upper Volta with access to new ports for their exports. The capital of Casamance, Zinguichor, was linked to Portuguese Guinea, while to the south Guinea Boke railways already linked to Portuguese Guinea were also going to be linked to Guinea railways. While different gauges were planned for various national railways the Portuguese multiple gauge locomotives and rail stock provided relative easy transition from one network to another. The Portuguese Sahara railway planned from Sidi Ifni to the border of Senegal – Mali Federation coupled with all the other major railway upgrades and expansions would allow rail transport from Porto Novo to Sidi Ifni.


West Africa 1969 showing existing and planned railways.
Existing railways shown in solid Red and planned railway with dotted Red.

The last area of rail expansion for the Portuguese was in North Africa as the kingdoms of Fez and Marrakesh faced major rail transport challenges. The Islamic State of Morocco did not recognize either country as well as Portuguese Federation territory in North Africa, and refused all interactions with the three countries. The Kingdom of Marrakesh had no railways while Kingdom of Fez railways were only partially working with parts of its network either damaged or passing through Morocco and not accessible. In the North, plans were to link the Portuguese Moroccan provinces with Kingdom of Fez while its own network was expanded. In south, the Kingdom of Marrakech was to receive its own rail network including access to own seaport at Agadir and link to Sidi Ifni.


North Africa 1969 showing existing and planned railways.
Existing railways shown in solid Red and planned railway with dotted Red.

The massive railway projects planned by Portuguese Federation exited many who saw the economic potential of these railways on the continent but also showed the influence and power the Portuguese Federation had in the continent. While some governments and many intellectuals disapproved and spoke against such projects because they cemented the Portuguese influence and power over these countries’ investors lined up to invest in Portuguese stock markets as well as providing a ready market for the railway bonds.

During the 1960s as the availability increased and cost of air transport decreased the number of passengers travelling both internally and externally by passenger ship during the 1960s also decreased, as such no ocean liners were built during the 1960s, but three large 280 meters ocean liners ordered in the 1950s entered service travelling both internally and visiting foreign ports (Buenos Aires, Rio de Janeiro, Sao Paulo, Bombay and Surat being the main external ports). The largest influence in Portuguese shipping was the adoption of containerization at Portuguese ports instead of the manual shipping bulk cargo which greatly reduced transportation time and reduced costs. Special container ships were ordered, or existing ships converted so that by 1969 almost 90% of all cargo being shipped from Portuguese ports was being done using containers. The two largest shipyards in Setubal and Beira each capable of building half a dozen of these ships were occupied building ships for not only the Federation but from Commonwealth countries also.

In 1962 the Bristol-Lusitania Aerospace Type 200 jet lines received certification after three years of testing and updates. The BL-200 had a configuration of 120 - 165 Passengers, used four Mota-Engil ME3D engines and had a cruise speed of 607 mph, Span 132 feet, length 138 feet and maximum range (with max payload) of 6,799km making it slightly ahead of anything the British were manufacturing and almost on par with the American planes. Production started in 1963 with orders from Portuguese, Brazilian, Indian and several European airlines. This was a huge accomplishment since it allowed Portuguese airlines to fly non-stop between many Portuguese cities for first time. The inaugural direct flights between Lisbon and Luanda on 4 October 1964 was televised by Portuguese television and radio as two planes one flying from Lisbon and one from Luanda flew nonstop to other city, taking eight hours and 49 minutes.

Meanwhile in Britain the continued nationalization and forced mergers during the 1960s resulted in Bristol Aerospace selling Bristol-Lusitania Aerospace the series 155 and 306 planes which were continued to be built in Portuguese Federation for both for internal market (short runway and smaller airports) as well as for export with South America and Asia being the primary markets.[3] In 1967 the company introduced the BL-210 which was an upgraded BL-200 for short and medium distances but with 2 engines instead of 4 and better fuel efficiency. The launch was overshadowed by the African War, but it soon became Bristol-Lusitania Aerospace most popular plane. In 1969 the company finally unveiled the BL-300 with almost twice the range and seating capacity as the BL-205.[4]


BL-200 plane sold to Varig (Brazil) 1966

[1] Rail Transport from Goa to Daman was possible but goods and passengers were subject to custom and border inspection in both Democratic Union of India and Kingdom of Baroda. In 1960 the Portuguese Free trade agreement between Portuguese Federation and Kingdom of Baroda allowed for the visa free movement of people and goods between Portuguese provinces of Diu and Daman and Kingdom of Baroda. In 1962 the Portuguese-Indian Economic Union (IEU) agreement allowed for the visa free movement of goods and people between Portuguese India and the IEU countries.
[2] The Indian Civil War and disintegration of British India into several Indian states had result in most of Indian Subcontinent locomotive and rail stock manufacturers to be located in the Republic of India. In the late 1950s and early 1960s great emphasis was made by IEU countries to develop their own train stock and locomotive manufacturers. The Portuguese – IEU agreement allowed for the entry of the Portuguese companies. RSH&MCC built manufacturing plants in Daman and Kingdom of Baroda while Henschel & Sohn built plants in both Mysore and Hyderabad.
[3] By 1965 Bristol – Lusitania had taken over all of Bristol Aerospace British assets in the Federation and for many markets. The remaining Bristol Aerospace worldwide assets were transferred to the Canadian subsidiary with the forced amalgamation and nationalization in 1964. The amalgamation and nationalization were not only opposed by owners of the company but also the workers who following the end of the company in 1964 nearly 60% of the British workforce would eventually either moved to the Portuguese Federation or Canada.
[4] Striking similarities between the BL-205 and Boeing 737 as well as the BL-300 to the Boeing 747 made many people in the industry believe that Portuguese were practicing industrial espionage and that someone or some people at Boeing were providing Bristol – Lusitania with detailed information. While many Boeing employees came under scrutiny and some lost their jobs no evidence was ever found of any Boeing employee selling company secrets.

This section tries to give the viewer a look into the challenges that Federation faced, the progress of the 1950s and good will it had generated provided the Portuguese with good foundation but internal government reports highlighted that people had been sold an idea and if the government was not able to deliver on that promise the people would become disillusioned and all the existing problems and both internal and external problems would eventually lead to existence problems. Therefore for the Federation transportation and communication became center stone to the country's ability to consider itself one of the worlds top economies.

The Transportation strategy outlined here provides only a simple overview. I do want to highlight a few items, vehicle production which had started as way for the country to produce at best 25% of vehicles sold in the country in the post wars years has now become a major industry which by 1969 was producing 2x the number of vehicles sold in the Federation with the remainder being exported. Portuguese subsidiaries operated much more independent of the parent company and as such they worked together to gain efficiencies with parts manufacturers producing same parts for multiple vehicle brands. The fuel efficiency drive of the late 1960s was a clear example of Portuguese initiative that resulted in Portuguese vehicles being ahead of European parents. Rail transportation something that iOTL African continent suffers from lack of is center to the Portuguese transportation strategy and just as important the two small train manufacturers setup in late 1930s and war years to provide the Portuguese with ability to chart its own rail transportation strategy have grown into important international companies producing trains and rail stock for not only Federation but also expanding into South America and with the Commonwealth push set to double in size during the 1970s. What this all means for the continent? We will have to see. Lastly both maritime trade and air transport have played important part in the Federation development. Both of which as just as important or even more important in maintaining the country unified and bringing the various regions closer. Questions/ Comments?

Return in 2 weeks on June 6 when we continue posting Portuguese economic section.
These projects may be of course a reflection of Portuguese power but they also represent a better, more cooperative future for the people of Africa. Hard to disapprove very much.
The Portuguese controlled a lot of trade routes
Shipbuilding was important if they had built some major shipyards in Brazil with access to lots of high-quality lumber, they would have been able to produce more ships and had a much larger percentage of Global World Trade
The profits from that could have funded other things
The ship building and lumber industry would attract immigrants to Brazil leading to more Economic Development in the area
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God, the sheer economic impact the continental Rail System is going to have on Africa. It's near certain the non French-Federation aligned countries will eventually push to connect their own Transportation networks with the existing Federation network by the 90s.

As unlikely as it is if both the French and the Federation were part of the E.U., they could be followed by the French Outre Mer and the Commonwealth prompting the organization to become World Government. It's a nice dream.
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I just noticed that Ethiopia and Kenya are fucked by annexing Somali regions they’ve doomed themselves with having constantly rebellious population in those regions and even more so with Ethiopia already holding the Ogaden
I just noticed that Ethiopia and Kenya are fucked by annexing Somali regions they’ve doomed themselves with having constantly rebellious population in those regions and even more so with Ethiopia already holding the Ogaden
which makes them even more controllable for the Portuguese


the federation becomes more democratized in the future ?
The short answer is no, but even though the National Party continues to control national, provincial governments it has for last 50 years been forced to share governance on the local level. The opposition parties (there are over 20 different parties at the local and provincial level ) do play a very important role (if somewhat limited) in keeping the government accountable. Portuguese democracy is sort of best described as limited democracy with opposition parties holding the various government officials and bureaucracy accountable and in some cases forcing about changes by government or even reassignment or firing. The opposition parties have two major obstacles in gaining control. First the need to gain enough of the population support during the election and due to the ranked ballot those that vote for candidates or parties who do not win enough votes to get elected the vote then is cast to the second and third choice. Secondly the governing party appoints the chamber of deputies which exists in the national and provincial level. Lastly the National Assembly is subordinate to the Triunvante and government cabinet.


Many immigrants in the future of the federation :)
Yes we will cover both immigration and emigration in the security section. What we can discuss is that the sources of that emigration does change plus the expansion of commonwealth full members from a few to almost 20 within a decade changes dynamics of demographics.

the 1930s - 1950s was a period of Portuguese sponsored and subsidized emigration from Europe where almost any European was guaranteed entry into the country. From 1946 to 1959 the Portuguese were competing for emigrants with more sought after emigrant nations and had to be more aggressive and creative with its immigration program. But the 1950s had also been transformative years for Europe especially Western Europe which had seen huge economic growth and accompanying increasing standard of living for its citizens. This caused a “drying up” of the regular sources of immigrants to the Federation by 1959. Therefore the country had to look at alternatives.

the 1960s immigration was different with commonwealth countries continuing to provide abundant unskilled immigrants thus leaving the federation with limited opportunities to absorb unskilled immigrants from other countries which started a ongoing cycle of stricter border controls to stop illegal immigration, targeting skilled immigrants over non skilled from non Commonwealth countries and immigration quotas. Added to this refugees which there continued to be lots and the government had its hands full the whole decade.


These projects may be of course a reflection of Portuguese power but they also represent a better, more cooperative future for the people of Africa. Hard to disapprove very much.

God, the sheer economic impact the continental Rail System is going to have on Africa. It's near certain the non French-Federation aligned countries will eventually push to connect their own Transportation networks with the existing Federation network by the 90s.
The rail expansion in the Federation during the 1950s and 1960s had a huge economic impact on the country with not only mining, forestry being able to be expanded but also the ability to open the country to better economic development. The first connections were Guinea Boke and Katanga that experienced economic development with expanded rail network (in case of Katanga ) and new railway for Guinea Boke. But the case was made both in the federation and initial commonwealth countries of the benefits.

The expansion of commonwealth to include countries around Portuguese east and west African provinces resulted in several initiatives and government policies
1) the need to complete the Portuguese trans African railway through Zambia.
2) connect these countries’ rail networks to the federation thus linking these countries to the federation
3) assist countries around South Africa that had their railway service cut off to have independent railways from SA.
4) develop both ports and railways in all these countries linking them together and where possible to be independent of the federation thus not placing additional strains on the federation own system.

The announcement of course had a huge shock on the whole continent as both politicians and business came to realization of the economic and political impact such grandiose announcement had. The Federation having just completed their own expansion made people realize that it had the capabilities and there was much enthusiasm both in Africa and outside.

The announcement of the South Africa project was quickly followed by talks with both Gabon and Cameroon for Central African railway which brought French government in also and French rail industry and investors. Thus these two countries own rail system much ignored and antiquated received much investment.

the West African rail network while included in the update was actually started by the French with Senegal - Mali and Guinea as the cornerstone to the project which the French wanted to expand to all French speaking countries. The entry of the Federation provide much needed boost and as such the rail network presented was the way to boost these countries economies and also link Federation provinces. See Togo and Upper Volta were included while Senegal- Mail received large investment as Portuguese planned their railway from Bissau to Vila Cisneros.

As the decade came to an end and the scope of the project were lauded by most countries. The British Times newspaper in 1969 ran several large articles about the projects and their expected impact on the continent and its people.


The Portuguese controlled a lot of trade routes
Shipbuilding was important if they had built some major shipyards in Brazil with access to lots of high-quality lumber, they would have been able to produce more ships and had a much larger percentage of Global World Trade
The profits from that could have funded other things
The ship building and lumber industry would attract immigrants to Brazil leading to more Economic Development in the area
Hi not sure how this comment fits into Portuguese federation in the 20 century. Now if you are commenting on Portuguese ship building in the 1960s we can discuss that here.

The Portuguese have two large shipbuilding centers Setúbal and Beira. These are capable of building the huge container ship, large oil tankers and other large ships. In addition Portuguese also have shipbuilding capabilities (medium ships) in Tejo (Tagus) Estuary, Figueira da Foz, Tetuan, Bissau, Luanda, Benguela, Quelimane, Lourenço Marques, Panjim, Damão and Pandang.

This does not include the dozens of small shipbuilding yards capable of building boats for pleasure, fishing and smaller ships as well as military ships.

The Portuguese Federation is spread over 3 continents and as such transportation is vital to the integration and functioning of the country. The Portuguese are either on the forefront of shipping trends or quick to adapt. One such trend was the container transportation that in the 1960s started being used and the Portuguese jumped on it since it allowed goods to move by road, rail and ship with minimal handling when compared to previous transportation methods. Ports and shipbuilding was quickly adapted and by the end of decade over 75% of all merchandise (other than bulk) was being moved using containers.

hope this helps answer you question if not please let me know. Thanks.
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As unlikely as it is if both the French and the Federation were part of the E.U., they could be followed by the French Outre Mer and the Commonwealth prompting the organization to become World Government. It's a nice dream.
So this question/comment deserved its own response as we are dealing with the EEC not EU in the 1960s. Yes I understand that iTOL EEC became EU but the circumstances for EU creation may not exist iTTL.

Just a few important points I think may help.

First Federation it is not part of EEC because it was not "democratic" but is part of the European Free Trade Association (EFTA) so it has extensive trade agreements so not part of EEC. The EFTA was purely a trade organization and provided little to none supports such as the common agricultural policies of the EEC.

Now for France it is founding member of EEC but has several large provinces and territories in Africa, such as Tangier, Oman, East Algeria, French Somaliland plus islands around the world and Pondicherry on the Indian Subcontinent. So while it continues to be part of EEC it has a much larger world presence than iOTL. The post De Gaulle French government did not object to Britain joining the EEC and Germany is intact (no east and west Germany). So the politics of Europe are different. Agricultural components and access to EEC markets by French over seas provinces is much higher with spices from the province of Pondicherry have preferred access compared to rest of Indian states. French North African provinces provide a huge amount of fresh produce and fruit to the EEC market. So French have their hands full trying to juggle EEC and their continued overseas provinces.

This leads us to wonder if EEC would allow non European countries to join. In the 1960s that is not even contemplated as Europe is still divided into three organizations. EEC, EFTA and Council for Mutual Economic Assistance (Comecon). Britain by 1969 has shed almost all its overseas territories with only the smaller ones and isolated islands remaining.

As for EU what is that????;)


I just noticed that Ethiopia and Kenya are fucked by annexing Somali regions they’ve doomed themselves with having constantly rebellious population in those regions and even more so with Ethiopia already holding the Ogaden

which makes them even more controllable for the Portuguese
Yes the situation in region is not the best. Let’s do a small recap.

Somalia joined Egypt and Sudan alliance against France and Sudan provided thousands of troops in Somalia to assist it in its fight against the imperialist colonial French. All three countries are aligned with Soviet Union. While all that was happening Tanzania and Uganda formed Pan African Alliance along with over dozen countries.

Independent of these alliances was both Ethiopia and Kenya. This causes both Kenya and Ethiopia both of whom had concerns regarding their neighbors to seek out support. Kenya turned to US while Ethiopia turned to communist China.

Border tensions and periodic skirmishes was a constant threat and both countries saw the French / Federation war against their neighbors with apprehension and dread only to feel sense of relief as both Alliances suffered catastrophic losses. But just as peace and possibly peace seemed on the horizon after the war the announcement that Sudan planned on sending 100,000 troops to Somalia to stabilize it and continue the struggle against imperialism gave urgency to both Kenya and Ethiopia to try coordinate a response to the Sudanese announcement.

The joint invasion of Somalia by both countries was meant to only prevent Sudan from sending troops and both countries agreed to support an independent Somalian government as quickly as possible. Therefore Somalia (Somaliland was still occupied by France and talks with French about incorporating their occupied territory into an independent Somalia also was occurring). But following Ethiopia’s occupation of its agreed part of Somalia Haile Selassie I of Ethiopia dream of greater Ethiopia led him to disegard his agreement with Kenya and France and unilateral annex Ethiopian occupied Somalia. This of course caused major problems for both France and Kenya.

France decided to incorporate their occupied Somalia into French Somalia while Kenya resigned itself to “incorporating” its occupied Somalia into Kenya. This of course only accelerated the tensions in the region which ad you pointed out will not be good for both countries. We will need to see what happens in the 1979s and beyond.


From what I've seen in the intro, the GDI is formed. Does that mean that the GDI would be the new EU?

I meant World Defense Alliance or WDA
Hm…. WDA, in 2021 there is more of a detente and there are three major alliances. The Western/NATO, the Communist Block and Latin/Lusitania Alliance. What complicates is that both Federation and France belong to both NATO and Latin Alliances.

The Alliances and detente have kept peace in the world since 1992 when Lima Accord was signed.
1960 - Economy (Part 2)


1960 – 1969

Economy (Part 2)


By 1964 the Portuguese Federation and International Telecommunication Union (ITU) agreement paved the way for all telephone calls to Portuguese Federation to be preceded with country prefix of 42, thus recognizing all provinces in the Federation as a single country. The continued economic growth continued to put strain of Portuguese communication system. Telephone and even mail service suffered as the number of phones per 1,000 people reached western nations average of 22. In 1961 Portuguese citizens were able to make telephone calls without the use of operator in most provinces and by 1969 all phones within the country had been connected to the Subscriber Trunk Dialing (STD). While much fanfare was made at the huge strides made within the country much of the Portuguese telephone network was based on 1950s technology and the system suffered from high number of dropped calls and low telephone quality especially in high traffic areas. In 1962 in what became one of the last technological Portuguese-British collaborations the Portuguese telephone company EFACEC partnered with consortium of British electronic firms known as the Joint Electronic Research Committee to develop a replacement to the ageing Strowger systems used in both Portuguese Federation and Britain. The TXE (telephone exchange electronic) was developed and the first TXE2 went into operation in 1965 in both Britain and Federation. In 1969 when the agreement was terminated both the British and Portuguese had developed the TXE4 and the first units were being built in both countries.[1]

During the 1960s with the AM spectrum full the Portuguese government launched the FM spectrum throughout the federation. During the 1960s the proliferation of FM stations in many of cities and even rural counties (concelhos) led to a boon in programming, communication and cultural development. This also led to an increase in demand for radios including smaller portable radios especially amongst the younger generation. Radio costs came down considerably with the breakup of the monopoly and elimination of radio tax in 1962. Government control instead centered on eliminating or interfering with unauthorized radio transmission both internally and externally. This caused both proliferation of radio manufacturers to enter the Portuguese market both domestic and foreign but just as important was the entry into the Portuguese market of Alkaline batteries with their longer shelf life and higher density allowing for longer playing time. Several Portuguese companies were authorized by the government to manufacture Alkaline batteries for the Portuguese market.[2]

The production of paper and paper products continued to increase during the 1950s and 1960s. New modern plants allowed for cost of newsprint and paper products to continually decrease. This translated into reduced costs for newspapers as well as books. During the 1960s both newspapers and book sales continued to increase as both the volume of books published within the country by existing and new authors published books for the newly literate population.

In 1966 the Post Office Telegraphs and Telephones (CTT) Company which had monopoly in mail service, telegraph and telephone service in the Portuguese Federation was split into two companies. Portuguese Mail Service (CFP) and Portuguese Telegraphs and Telephones (TTFP) became separate companies with each responsible for their respective communication jurisdiction. CFP which was witnessing a cycle of increased demand for postal services as both business and citizens increased the volume of mail delivered by 357% from 1950 level. The number of letter carriers, vehicles and distribution centers increased accordingly to handle the extra volume of mail and parcels. Meanwhile TTFP continued to expand its telephone and communication infrastructure to meet the growing need for communication. In 1965 wait time to install new telephone was running between 6 – 9 months, by 1969 the wait had dropped to 3 - 6 months while at same time the number of phones increased by 20% and telephone traffic by 31%. In 1967 the communication between the Portuguese Federation and outside world was transferred to Portuguese Global Communication Services (CGFP) from TTFP thus allowing TTFP to focus strictly on internal communications.

In 1962 marked the year that television programming was available in all provinces with RTP being the primary entertainment channel. RTPe and RTP2 began transmitting in 1964 with RTPe being an educational channel providing educational programing from preschoolers to adults while RTP2 showed cultural and arts programming. In 1965 the Portuguese Television Act was amended allowing for regional and private television stations. One of the first private television stations was Globo which launched in 1966. By 1969 the Portuguese government had granted license to four additional national television stations including the country’s first station devoted to Black Africans, the Catholic Church also partnered with several investors to start their own station while Lusitania and SIC were the last two to start broadcasting in 1969. In 1968 the Portuguese government began granting regional television licenses on the UHF frequency. Major cities were allowed to have one regional station for every 500,000 citizens with only four cities licensed to show more than one station (Luanda, Lisbon, Lourenco Marques and Porto).

Portuguese television manufacturers were FAPAE and EFACEC which controlled over 50% of the market while several British companies such as EKCO, Rank Bush Murphy and Thorn Electronics which at one time had controlled a huge portion of the Portuguese market struggled to compete especially with the entry of both Grundig and Philips in the Portuguese market. The three British parent companies witnessing their own financial struggles in Britain were unable to invest in their operations and were losing market share to new foreign competitors also. In 1965 the three companies EKCO, Rank Bush Murphy and Thorn Electronics merged their Portuguese subsidiaries into a new company called PortElectronics and listed the company on the Portuguese Stock Exchange. Over the next three years PortElectronics rebranded itself and launched their own television brand “TelPort” becoming one of the country three major consumer electronic companies. By 1969 the three Portuguese companies FAPAE, EFACEC and PortElectronics began producing color television on the Portuguese own format named “sequencial com memória Portuguesa” or SECAMP as it became known.[3]


The Portuguese Industrialization was in high drive during the first half of the 1960s, continued industrial expansion by Portuguese companies fueled strong economic growth. In addition, French, German and other world companies joined the large contingent of British companies in continuing to invest in Portuguese Federation as the growing Portuguese middle class made it one of the larger economies in the world. In 1966 as risk of war on the African continent increased foreign investment in the Portuguese Federation almost stopped with only companies with projects in crucial stages continuing to invest in the Federation. In 1968 with the war over and the Portuguese both economically and military stronger foreign investors flocked to the country. The creation of the Lusitania Commonwealth with an additional 25 million consumers made the Portuguese Federation an even more attractive place to invest.[4] In 1969 the close economic relationship between Great Britain and the Portuguese Federation came apart as the British government of Harold Wilson imposed strict limits on sale of British goods and technology to the Federation. While the action was very popular with the leftwing supporters of the Labor party it was strongly opposed by the British companies many of whom had only been able to continue to operate due to Portuguese market. In years and months leading up to the break many of these companies either sold their operations to Portuguese investors who then moved production to the Federation or sold the rights to their products to Portuguese companies. While others were forced to either merge with other British companies or close. Following the move of industrial production out of Britain tens of thousands of workers and their families also migrated to the Federation or in some cases to the Lusitania Commonwealth, with Rhodesia, Botswana and Namibia being the primary initial destinations.

In 1965 the Portuguese Federation stopped all exports of bauxite and iron ore as Portuguese aluminum and steel refineries increased their output and became major exporters. In 1968 Portuguese steel output reached 45 million tons equal to Germany, while aluminum output crucial to industrial products as well as the new aircraft manufacture reached 2 Mt or 15% of the world output. In 1965 with the large copper, magnesium and other crucial minerals in Katanga falling under Portuguese influence copper refineries in Benguela were expanded but just as important was the construction of Katanga’s own refinery creating employment and wealth in that country and providing evidence of prosperity to not only the Portuguese Federation but also those aligned with it. This was followed by both Argentina and Chile joining the Federation and Katanga in establishing a minimum price for copper and to increase processing of the ore in their respective countries.

Rubber production in the country increased with the addition of plantations in Equatorial Portugal in the late 1950s but in the late 1960s the kingdom Congo and Republic of Katanga became important sources of rubber and rubber plantations were started in many locales in those countries. Rubber extraction had a very storied history in Africa and the Federation and Commonwealth countries wanted to avoid the similar circumstances therefore many of the plantations were owned and managed as cooperatives. The largest tire manufacturer in the country was Fapobol Tire Company (FPF) with factories in Bissau and Bata, it produced tyres for a variety of industries. In 1964 FPF and Michelin went to court regarding FPF manufacturing radial tires at its new Bata Factory. Micheline which had patented radial tires for cars and trucks demanded that FPF stop manufacturing radial tires, but FPF defense was that Micheline patent was invalid due to fact radial tires had been invented in 1915 by a different person. With the possibility of Portuguese court ruling Micheline patent was invalid Micheline agreed to let PFP license its technology and radial tires gained much publicity in the country benefiting both FPF and Micheline who sold their own brand of tires in the country. In Cabinda, the Companhia de Boracha de Angola produced a variety of rubber products for industry and industrial tyres.[5] The industry major competitors were Michelin from France who in 1968 started building a factory in Galicia to supply tires for the Portuguese market and commonwealth and Levorin from Brazil.

The country’s emphasis on developing its own domestic industry reached its consumer goods as British, Swedish and German companies setup plants in the Federation to manufacture televisions, radios, appliances, and other consumer goods forcing many Portuguese companies to compete and become efficient otherwise close. Furniture, clothing and shoes industries continued to receive support from government and by 1969 Portuguese furniture, clothing and shoes were being sold throughout Europe and South America with Portuguese clothing and shoe industries only behind the Italians in terms of size and prestige. The electrification of the country continued and even the most remote villages were connected to the energy network allowing all people to purchase electric appliances.

In 1960s the expanding Portuguese vehicle market faced new challenges, sales of vehicles grew by over 8% a year, the number of models grew with introduction of new domestic and foreign models, and the number of manufacturers increased with entry of new domestic and international companies. The demand for vehicles increased not only domestically but more importantly from the Commonwealth and exports to Latin America also continuing to grow. The growth of vehicles sales outside the Federation caused problems for several of the country’s subsidiaries of foreign car companies such as Fiat, Ford and Volvo, while LUFR who had license to manufacture and sell the three French vehicles faced stiff resistance to selling its Portuguese manufactured cars in the Commonwealth.

Volvo Federation’s operations were the first to be revamped, its manufacturing plants in the country became part of global manufacturing strategy. By 1965 its truck plant production in the Federation had surpassed Sweden’s production and Portuguese built trucks were being sold throughout the Federation, Commonwealth and Latin America. In 1966 as part of the Portuguese plant’s expansion a right-hand assembly was started to expand sales in right hand countries while at same time lower tariff on Volvo cars allowed for increased production in Sweden of cars to the Federation and Commonwealth countries.

Fiat, Ford and Daimler faced increased resistance from their parent company regarding export of Portuguese manufactured vehicles outside the Federation especially into the Brazil and South America. Portuguese manufactured cars had several advantages over European or American built cars though; they were cheaper and, in many cases, had lower import tariff due to barter trade increasing between the Federation and South American countries. The Portuguese government took the Portuguese manufacturers position because it wanted to increased manufacturing in the country and exports. Sales of vehicles into the commonwealth also became a major sticking point when it doubled in size and the number of associate members also increased making it a much larger market. In 1968 just as the Commonwealth doubled in size the Portuguese government passed a law stating that it was illegal to limit a Portuguese subsidiary to only within the Federation and that the subsidiary had the right to sell to any country which the Federation traded with. This put the Portuguese law in direct contraction with many companies’ market and manufacturing strategy. The confusion and apprehension were slightly improved by amendment to the law stating that each company was free to establish its own manufacturing and distribution strategy as long as it did not violate the spirit of the Portuguese law. Companies were left to their own to determine what the law meant with the Portuguese government pointing to Volvo example as model it hoped to achieve. In the cases of Fiat, Ford and Daimler their Portuguese subsidiaries did increase production as sales of Portuguese built cars to the commonwealth became an important factor of each subsidiaries market.

The most difficult case though was LUFR manufacturing and sales of Renault, Citroen and Peugeot vehicles. While the three French companies were willing to allow it to sell their vehicles in full member Commonwealth countries it was not allowed to sell the cars in associate member countries and banned from exporting outside the commonwealth. Using the Auto Europe model from the 50s LUFR wanted to strike a similar agreement as existed with Auto-Portugal which had resulted in Auto-Portugal model lineup being completely different than VW its parent company and being exported to Commonwealth and Latin America. The French companies were adamant and refused to budge. With negotiations at an impasse the French companies gave notice to terminate the agreement. LUFR sued the three companies for breach of contract. In 1967 LUFR introduced its first four cars for Portuguese and commonwealth markets. In 1969 it increased its product line to eight which had been the same number of vehicles it had been manufacturing for Renault, Citroen and Peugeot in the Portuguese market. All the vehicles were based on previous models it had built. In the meantime, Renault, Citroen and Peugeot brands disappeared from the Portuguese and Commonwealth market while the court battle continued.

The truck market both commercial and personal continued to grow both with Volvo, UMM and Daimler truck division dominating the market. Meanwhile UMM all-terrain vehicles and trucks which had become nicknamed the Portuguese Landover was able to expand and by 1969 had doubled its sales with exports accounting for over half their sales.

Simoldes and other vehicle component manufactures continued to grow at an even greater pace than the Portuguese auto companies as more and more components for Portuguese built companies were sourced from Portuguese companies. While majority continued to only be suppliers to Portuguese manufactures such as Bosch Electric and Ehrich Struts, Simões Automotive followed Simoldes example and expanded their sales outside the Federation and into the very fast-growing aftermarket car component segment of the economy.

Portuguese Edfor continued its expansion in the Sports and high-end car sales. In 1960 Edfor racing car won the Portuguese Grand Prix and went on to place 3rd overall greatly increasing the company’s exposure. For the rest of the decade Edfor race cars continued to be one of the world’s fastest cars on the Grand Prix racing circuit. Meanwhile Austin Martin Portugal own product line grew and by 1963 began differentiating itself from the British parent own cars with the debut of the AMP-4 and AMP4-LX. This aggravated the parents company own financial problems though when the AMP cars began competing with the DB brand manufactured in Britain. Meanwhile Daimler Portugal renegotiated its manufacturing arrangement with the Federation increasing its production Portuguese truck and automobile division for both domestic and export while concentrating the higher end model’s production in Germany. Meanwhile in the Federation racing became a very popular sport and several racing car manufacturers such as the MML, by Mário Moreira Leite, the DM (by Dionísio Mateu and Elísio de Melo), the Alba, the Olda, the FAP, the Etnerap and AURORA-PORSCHE.

New Portuguese automobile companies also appeared such as ENTREPOSTO COMERCIAL SA which started manufacturing trailers of various sizes and purposes as well as camping trailers. In 1965 it joined forces with Portuguese component manufacturer TECNISADO SA and started a new company in Galicia assembling cars more specifically EC Taxis (low-cost taxi) made of components manufactured by various Portuguese and foreign vehicle and components manufacturers. In 1963 SOMAVE SOCIEDADE DE MONTAGEM DE VEÍCULOS SA (SOMAVE) was founded to assemble Fiat, German MAGIRUS-DEUTZ and MAN commercial trucks in Guinea Boke. It imported the engines from the Italian or German companies and assembled the trucks for sale in the Federation and commonwealth using Portuguese components.

Beira Motors Motorcycle and Moped division Gazela expanded sales in Europe and South America while Casal, FLAMEL and SIS continued to expand domestically and commonwealth. As the standard of living increased the sales of motorcycles also increased and Portuguese companies expanded their lineup of motorcycles while moped sales decreased. SIS and Casal also became major sponsors of motorcycle racing, manufacturing several powerful racing motorcycles both for national and international races.

Oil / Gas and Minerals

In 1969 Portuguese oil production reached 1.4 million bpd with almost half the output coming from offshore. The first platforms erected off Algarve and Angolan coast operated in waters less than 30 meters deep. In 1960s several developments in the USA Gulf Coast were carefully studied by Whitershall and SONAP who using various methods were able to bring those technologies to the Portuguese Federation. In the ports of Portimão, Algarve and Ambriz, Luanda oil platform assembly yards were constructed to assemble Jackups, semisubs, drillships, and barges. In 1962 onshore oil production in Algarve declined for first time but luckily offshore production more than made up for decrease in onshore production. The industrial development in the country continued to consume a greater percentage of the oil produced which limited the amount of oil and gas available to be exported. In 1966 the government announced the phasing out of all oil thermal electric plants in favor of natural gas. During the next decade, natural gas production rose substantially as it was recovered from the refining process and new natural gas well drilled. At same time, Portuguese government and Portuguese auto industry worked together to increase vehicle fuel efficiency by 50% within 10 years. In 1969 as the world began suffering major oil shock due to OPEC Arab oil embargo of western countries and the world began looking for better fuel-efficient cars, sales of Portuguese vehicles in South America, Africa and Asia jumped 30% as the Portuguese higher fuel-efficient vehicles became sought after.

After several major upgrades the Portuguese oil refineries (Sines, Luanda, Matosinhos, Quelimane and Daman) had a combined capacity of 1.8 million bpd (Sines 625,000, Luanda 489,000, Matosinhos 251,000, Quelimane 115,000 and Daman 400,000). The Daman refinery also processed oil from the Dayak Federation which was being produced by Portuguese oil companies. The Iberian pipeline which was completed in 1965 had a capacity of 250,000 bpd and transported oil from Federation to Orleans France. The French had also built two separate pipelines, the southern one to Marseille on the Mediterranean coast before continuing to Italy ending in Milan. The northern line went north to Luxemburg then on to Germany. In 1969 the Algiers accord was signed by France, Algeria, Tunisia, Kingdom of Fez, Portuguese Federation, Spain, Italy and Catalan Republic. The accord allowed the construction of two oil and gas pipelines from French Algeria to Europe. One through Algeria, Kingdom of Fez, Portuguese Morocco, under the Mediterranean then through Spain and Catalan before reaching France. The second pipeline would travel through Tunisia then under the Mediterranean and through Italy then towards Austria and Germany. In southern Africa, the construction of the Trans African Pipeline was suspended along with construction of the Portuguese Trans African railway in 1965. It was only in 1968 that construction started up again and was expected to be finished by 1970 and operational by end of 1971.

By 1965 the Portuguese Hydro Electric generating capacity on the Iberian Peninsula had surpassed 7,500 MWs while Portuguese West Africa capacity had reached 6,500 MW while East Africa capacity was 3,500 MW. This only accounted for 25% of the energy needs with coal accounting for 55% of the country’s energy needs and remainder by oil/gas. In 1968 following the declaration that the Portuguese not only had developed nuclear bomb but also had nuclear reactors the decision was made to construct a series of Nuclear power plants throughout the country to meet the growing energy needs. The Portuguese announced a very ambitious plan to build 10 plants with the ability to generate 30,000 MW.

The mining industry grew by 15% in the first half of the 1960s while transportation issues continuing to be the single biggest limiting factor in the development of the industry. During the second half of the decade as major investment was made to address the rail, road and port issues production increased over 25%. In 1961 the creation of the Lusitania Commonwealth allowed for the integration of their economies with the Portuguese Federation. Over the decade as more countries joined the commonwealth the Portuguese came to control the greater percentage of the production of copper, iron ore, coal and other resources much to the chagrin and anger of many western leaders.[6]

The growth of mining industry especially with the addition of the Commonwealth countries made the Federation an even more important market. In 1966 Volvo heavy industry division announced the construction of a new factory to manufacture mining and heavy construction machinery and vehicles in the Federation. The entry of Volvo shook up the Portuguese Industry which had till then been dominated by Atlas-Sand and British companies Aveling-Barford, JCB, and Terex Pegson. Complicating the situation for the three British companies was the anti-Portuguese Labor government of Britain who were advocating banning most trade and investment in the Federation. Following the war in 1967 the three companies decided to merge their Portuguese operations into a single company called British Portuguese Mining Corporation (BPM). They each took a 20% stake in the company and listed the remaining stock on Portuguese Stock Exchange. Several new factories were planned in the Federation and Commonwealth and all existing British patents were licensed to the new company for use exclusively in the Federation and Commonwealth. By the end of the decade the Portuguese and Commonwealth mining and heavy construction market was controlled by BPM, Atlas-Sand and Volvo Heavy Equipment but more importantly these three companies were based in the Federation and able to react locally to the needs of the country.

Agriculture, Forestry and Fishing

By the 1960s Portuguese agriculture productivity and yields had reached European levels not only in the Iberian Peninsula but also in Africa, Indian Subcontinent and East Indies. Portuguese agricultural industry had finally reached a level of maturity and critical mass to satisfy the Portuguese needs, this included manufacture of modern vehicles and agricultural machinery by a combination of Portuguese, transplanted British and German companies. The number of workers employed in agriculture continued to decrease as rate of mechanization increased and modern agriculture practices adopted, during the 1960s direct employment in agriculture decreased by 29% by 1969. At same time the level of employment in supporting agricultural and food processing industries increased by 60%. Portuguese manufacture of herbicides and pesticides continued with Portuguese companies being able to obtain licenses for several new herbicides and fertilizers, the use of herbicides and fertilizers doubled in 1960s compared to 1950 and doubled again by 1969. The massive catchup witnessed by Portuguese agriculture starting in 1930s with plant breeding, seed desinfection, introduction of herbicides and INIA plant breeding program had increased Portuguese yields by 1969 to western Europe average and agricultural yields in Portuguese provinces in Africa, Indian Subcontinent and East Indies far surpassing the yields in neighboring countries and very close to western Europe yields. Mining of phosphate and potash fertilizer within Portuguese Federation continued to meet domestic demand as well as allow the country to export especially to South America. The growth of the Commonwealth brought to the agriculture industry new opportunities and challenges.

The largest change in Portuguese agriculture during the 1960s was the forced liquidation of farms by absentee landowner. In many parts of the Federation such as Alentejo in the Iberian Peninsula and Silva Porto in West Africa large percentage of farms were owned by landowners who paid little attention to the farm other than to derive as large of a profit as possible. These landowners for most part rented their farms to individuals who in turn managed the farms as cheaply as possible in order to make a profit after paying the rent to the owner. Mechanization, modernization and other government encouraged practices were the lowest in those regions as neither the owner nor manager had little to no incentive to invest in the property. In 1961 after repeatedly trying to encourage them to adopt modern agriculture practices the department of Agriculture issued new laws mandating many of the previous guidance and backing them up with stiff penalties including prison terms for those who repeatedly flaunted the law. Suddenly hundreds of managers and owners were faced with fines and orders to modernize. Most simply sold their property although many resented the government interference. The creation of cooperatives was supported by the National Cooperative Association on some of properties while the majority were sold to growing number of agricultural corporations or private individuals. By 1969 these farms had improved sufficiently that their yields were comparable to other farms in the same regions.

Portuguese fishing fleet continued to modernize but while Galicia large fishing fleet was able to sell its fish duty free within the Federation, they along with all other foreign fishing ships were barred from Portuguese waters. In 1965 several provinces such as Azores, Madeira and Cape Verde established excusive fishing zones around their province reserving the fisheries off the coast to local fishermen (50 nautical miles).

Argentina and Brazil continued to be Portuguese Federation major agricultural suppliers with wheat, cereals, and beef the main agricultural products from these countries. In the 1960s Chile also became a major supplier of fruit to the Federation during the southern hemisphere’s summer.

As the 1960s came to a close t he largest limiting factor in agricultural production was the lack of water and susceptibility to drought in many provinces. Large water reservoirs and water diversion projects were studied and slowly advanced where feasible. Water conservation projects were started in cities and towns to limit the amount of water used for industrial or human consumption. In 1964 the Portuguese and Israelis started the Negev / Portuguese Sahara Desalination projects. Where scientist and engineers from both countries tried to make fresh water from sea water at a reasonable cost allowing the water to be used for human consumption as well as agricultural use. Meanwhile the Portuguese farmers were the first adoptees of the Israeli drip irrigation technology which greatly reduced water use.

[1] iOTL the TXE4 only started being used in 1973. Here additional resources and funding advanced the project by several years. The TXE4 had the capacity for up to 40,000 subscribers with over 5,000 erlangs of both way traffic and was normally staffed by several Technical Officers.

[2] The Alkaline battery was developed by an employee of Union Carbide Chemical company in 1957 and patented in 1960. While superior to the of the zinc-carbon battery it was not aggressively promoted by the company. Attempts by Portuguese chemical companies to get the licenses failed with Union Carbide requesting varying high royalty fees. In 1964 the Ministry of Economy became involved and “forced” Union Carbide to cut the royalty in half, but royalty payments would be made by Communications Association instead of battery manufactures. During the negotiations, the Portuguese showed a domestic Alkaline battery which it threatened to release not only in the Federation but worldwide. The Portuguese claimed theirs had been developed in 1956 before the American version when in actuality it had only been developed by CIN engineers in 1961 based on the Union Carbide patent. Part of the agreement was that the battery would only be distributed in the Federation and Commonwealth and that the government would make sure the battery did not compete with Union Carbide own battery worldwide.
[3] In the early 1960s as B&W television programming was growing in the country the Portuguese Communication Association was trying to decide which color picture technology the country was going to adopt, the French SECAM or the European PAL system. As part of the consideration was the growing belief in the Federation that it wanted a say in developing the technology while some suggested it was an attempt by the government to control the content. Either way the Portuguese licensed the SECAM technology in 1965 and proceeded to adapt it to Portuguese market. SECAM IV or SECAMP was developed in 1968 and introduced in 1969. Like the original television the debut of color television in the Federation was only viewable by a small number of viewers.
[4] The Commonwealth population numbers did not include the associate members which was over 100 million.
[5] Companhia de Boracha de Angola was owned by British Dunlop Rubber. It was originally founded to distribute Dunlop products to the fast-growing Portuguese Africa. In 1969 Companhia de Boracha de Angola received license and technology transfers to manufacture Dunlop products for the Portuguese and commonwealth markets.
[6] This was in contrast to the world’s largest mining companies who many felt the Portuguese influence resulted in huge reduction in graft as the DGS and their local equivalent went after any person suspected of extortion or accepting bribes.

So the 1960s continued the progress the country had achieved in communications which with transportation were the governments priorities. Portuguese television programming and availability private television stations decades earlier than iTOL an even sooner than some European countries. This was another government ploy or strategy to give Portuguese the feel that the country was equal to any of the great powers especially in the aftermath of the African Wars. Industrialization was another great feet as Portuguese government policy to not export unprocessed natural resources led it to greatly increase its steel industry and ore processing industries which allowed the vehicle industry to greatly expand and surpass Portuguese demand resulting in the Federation becoming a vehicle exporter. Note the race car brands are all historical brands that were started in Portugal iOTL. Questions/ Comments?

Return in 2 weeks on June 20 when we post the last Portuguese economic section.
What do citizens of the Federation call themselves? I'm sure it's Portuguese in the Iberian metropole but elsewhere?

I'm greatly anticipating a possible about shift in British and American politics as others start benefiting from the Federation's rising economy largely at their expense.

Is the Federation investing in Hydro and Wind Powers as well? They and their allies are sitting on a great deal of bodies of water inland and large stretches of costs.