(1)  SAN MIGUEL ISLAND-15,900, consisting of 3 infantry regiments, a total of 3 infantry
regiments, a total of 12,500 men, plus various artillery, engineer, and service units, totalling 3,400
 men.  Artillery consists of 3-6" coast defense guns, 10 French 75's, 5-120 mm.'s in
emplacements, 12-105 mm. howitzers, and 8 Vickers 3.7 in.
 
(2)  FAYAL ISLAND - 4,000 troops, consisting of 1 infantry regiment, 1 artillery regiment,
plus engineer and service units.  Artillery consists of 2-6" coast defense guns, 4 French 75's, 2-75
mm. field guns, and 4 Vickers 3.7 in.
 
(3)  TERCEIRA ISLAND - 5,800 troops, consisting of 1 infantry and 1 artillery regiment, plus
engineer and service units.  Artillery consists of 2-6" coast defense guns, 4 Frencch 75's, 4 other
field guns, probably 75's, and 6 Vickers 3.7 in.
     
b.   Aircraft in the AZORES total 41 obsolete planes.  On SAN MIGUEL there are 13
Gladiator fighters, 2 Grumman amphibians, and 12 Grumman G44's.  On TERCEIRA there are 14
Gladiators.
 
c.   Naval forces on the AZORES total 2 destroyers, based at PONTA DELGADA.
 
               PEACEFUL OCCUPATION BY NEGOTIATION
 
     8.  It is preferable to secure the use of the airfields and harbors of the AZORES by
negotiation rather than by seizure.  Nevertheless, all preparations necessary for Military
occupation should be complete when negotiations are initiated so that occupation may follow
immediately if negotiations fail.
 
     9.  Granting Portuguese acquiesence to an occupation, it is believed that SPAIN would
register a protest and would become apprehensive of her position in the CANARY ISLANDS. 
As assurances on the part of GREAT BRITAIN and the UNITED STATES, given simultaneously
with the occupation, should assist in countering these fears.  It is believed that no overt act on the
part of SPAIN need be anticipated.  Any negotiations which would involve the employment of
UNITED NATIONS forces in PORTUGAL would be unacceptable.
 
                               -7-