Portugese-German Licensing Agreement of 1961

RTP: Superpower Treaty Archive General Agreements
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Portugese-German Licensing Agreement of 1961

  1. The Federal Republic of Germany (henceforth mentioned as Germany) will supply the Second Portugese Republic (henceforth mentioned as Portugal) with 2,000 MG 3 machine guns, with an option for an additional 8,000 at the same price of $350 per piece. The price of the initial batch of 2,000 MG 3 would cost $700,000, with the aforementioned option being made available for an additional $300,000, for a total of $1,000,000.
  2. Germany will supply the Portugal with 2,000 HK-21 light machine guns, with an option to build an additional 13,000 using the German license. The price of the initial batch of 2,000 HK-21 would cost $1,300,000, with the aforementioned license being made available for an additional $700,000, for a total of $2,000,000.
  3. Portugal will undertake not to sell any of these weapons to any foreign nation. Portugal will be allowed to make any adjustments or modifications it sees fit to these aforementioned items, but will provide Germany with full documentation and rights to any such adjustment or modification.
  4. Portugal will be allowed to purchase 700 Unimog 404’s from Mercedes with the assistance of the Federal government for the price of $4,500 each, to the total of $3.150.000.
  5. Portugal will open a production facility in Portugal for the Unimog 401 and 404 trucks with the Portugese automotive concern Bravia producing the Unimog for the Portuguese market. Bravia will put up the funding for the new production facility, and Mercedes providing the designs and production know-how for both the Unimog 401 and 404. Profits from this undertaking will be split 50/50 between Bravia (Portugal) and Mercedes (Germany).
  6. Portugal will undertake not to sell any of these vehicles to any foreign nation. Portugal will be allowed to make any adjustments or modifications it sees fit to these aforementioned items, but will provide Germany with full documentation and rights to any such adjustment or modification.
  7. For the entire agreement, Portugal will pay $6.150.000 to Germany upon signing.
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On behalf of the Federal Republic of Germany,
Signed,

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Konrad Hermann Joseph Adenauer,
Chancellor of the Federal Republic of Germany

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Signed on behalf of the Republic of Portugal,
Botelho Moniz
Minister of National Defense

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Small arms will be delivered in Jun. 1962. Tooling and machinery will be set up by Jan. 1963 and additional weapons can be manufactured at that point. Unimog sales and production in another action, but licensing is noted. Please account for money transfer in your ministry of defense.