Operation Panicle: Sabotage, Intrigue and Espionage During the Second World War. Did the British Intelligence Put Portuguese Neutrality at Risk?

This article aims to offer new perspectives on Anglo-Portuguese relations during the Second World War. Drawing on secondary literature but primarily on primary sources gathered from British and Portuguese archives, it seeks to examine whether British intelligence operations endangered Portuguese neutrality and to what extent diplomacy was involved – or compromised – in these actions. The essay begins by outlining the historical and geographical context of Portugal during the conflict. This article presents, for the first time in detail, the SOE-organized Operation PANICLE and the diplomatic scandal it triggered in Portugal, then explores – through the analysis of telegrams, memoranda, and official correspondence – the dynamics and tensions that emerged between countries and agencies, as well as the advantages the Axis powers drew from the situation, ultimately challenging Portugal’s declared position of neutrality.