The Four Horsemen of the Apocalypse

A The Hemmingway Silver Movie Four Horseman& of the Apocalypse

.

The Four Horsemen NOTES:

Apocalypse of the

Silver

Hemmingway

Salazar

Ricardo Esporito Santo

Jose Esporito Santo

Manuel Esporito Santo

The birth of modern day Portugal

.

The Four Horseman of the Apocalypse NOTES:

The Godfather

Wallis Simpson

Triangle

The Baron

Avenida da Liberdade

The Four Horseman of the Apocalypse

.

NOTES:

Lourenco

von Karsthoff

Artist

Galvao

.

The Four Horseman of the Apocalypse NOTES:

OSS Agent

OSS Agent

OSS Agent

A Salute To Action Heroes Past and Present

Sousa Mendes

Wild Bill Donovan

OSS Agent

British Ambassador

Dreadnaught

OSS Agent

Mr. 5%

The Four Horseman of the Apocalypse

.

NOTES:

PREFACE This book has two narratives and can be spun off into two franchises/series inspiring multiple movies. This first book introduces the characters of each franchise and tells the stories of how they met. The names of the two franchises are Forgotten Ghosts and The Four Horsemen of the Apocalypse. This first book is book one in the Apocalypse series.

The hero, an aging MI5 agent, is chased across six scenic locales in southern Europe by unknown assailants in the first narrative. Along the journey, he reads a journal given to him by the matriarch of the wealthiest private banking dynasty in Portugal, looking for a clue to the whereabouts of forty tons of stolen Nazi gold that may still be hidden somewhere in Lisbon. This is the second narrative. It is the story of the birth of modern-day Portugal and the four horsemen of the apocalypse who saved Portugal from destruction during WWII. Two interesting aspects of the first narrative are the scenic photos of Portugal and Spain and the chase scene at the end of each chapter. The panoramic images are essential and are meant to describe the beauty of these countries because if both had not remained neutral during WWII, we would be looking at two different countries today.

The chase scenes propel the narrative forward and become more significant and more interesting with each chapter, allowing the main character (Tom Cruise) to excel at what he does best. There is a Hemmingway connection as well, and it isn’t long before the main character is dubbed Hemmingway by the hotel clerk/aspiring secret agent (Antonio Banderas), who then dubs himself Silver, after Tonto and the acronym of Hemmingway and Silver is born.

The second narrative is similar to the Godfather series but tells the story of a Portuguese banking family whose Patriarch (Bill Murray) rises from a lottery trader in 1869 to the owner of a trading house to the proprietor of his first bank, of which there will be several. He grooms his three sons (Brad Pitt, George Clooney, Matt Damon) in the family business, each from fifteen. The Patriarch is a banker, a realtor and builds houses and invests in Portugal’s empire abroad. He is also responsible for constructing Avenida da Liberdade, the Champs Elysee of Lisbon, as seen in the picture on the front cover and in the blow-up on the following two pages; the green area in the middle is Avenue da Liberdade. Liberdade is a focal point throughout the story. It is where their bank is located and where the three brothers watch life unfold in Lisbon; Republican guards attacking workers, the General of the Army marching to victory after overthrowing the Republic, thousands of refugees fleeing Occupied France in 1940 and the Wolframistas

.

The Four Horseman of the Apocalypse NOTES:

coming into Lisbon in 1942 to register their claims as Salazar has finally set restrictions on mining wolfram. The three brothers build the bank into the most prominent private banking dynasty in Portugal.

During the war years, Salazar (Leonard di Caprio), the Prime Minister, is challenged with keeping Portugal safe. A University professor who succeeds in balancing the books for the military junta, he remains in the top position with the help of his secret police, led by Lourenco (John Travolta). Along with his friend and advisor, the charismatic head of the private banking dynasty, Ricardo Esporito Santo (Brad Pitt), known as the Holy Ghost to the British because they can’t catch him dealing with the Germans, they walk a tightrope between the allies and the axis powers, as they try to keep Portugal neutral by continuing to do business with both sides. Both sides are present in Lisbon; the axis powers are represented by the German Ambassador (Jack Nicholson), who charms Portuguese high society and knows all the secrets due to his personality and wit. The other side of the axis powers is represented by von Karsthoff (Bruce Willis), the German abwehr spymaster, whose personality is not so charming and his wit more biting. The allies are represented by the British Ambassador (John Goodman), who learns to work with Salazar regarding the Azores. Both sides have their fair share of agents and double agents, and we meet several. We also meet the refugees, some poor and some wealthy.

At a high society party thrown by Ricardo for the Duke of Windsor and Wallis Simpson (Angelina Jolie, who reprises her adventure series roles), we meet many well-to-do-refugees passing through Lisbon during the war.

There are also several organizations present in Lisbon, Jewish, British, German and later American. We even take a jab at J. Edgar Hoover for miss-handling Pearl Harbor; because he knew about the attack four months before it happened. Due to Hoover’s bungling, the OSS is formed in the summer of 1942 by Wild Bill Donovan (Arnie Schwarzenegger). Between 1942 and 1944, the OSS carry out several missions inside Portugal led by the OSS agent in Portugal, H. Downes (Sly Stallone), aimed at sabotaging the Nazi ghost trains carrying illegal wolfram over the Pyrenees into Occupied France and on to Germany.

In many ways, this story is a spoof on many different things. Depending on which way the director wants to go, it can be more spoof or less. In the first narrative, the story spoofs old age and knowing when to quit. The second narrative mocks the Nazis as being larger-than-life and over-the-top, as Jack Nicholson’s character demonstrates. In the end, it is a spoof of Hollywood blockbusters with all their special effects. Portuguese high society is spoofed because it bends towards one side or the other depending on who is winning the war. Wealthy refugees passing through Lisbon are mocked as being shallow and uncaring except when it concerns them. Many think Lisbon is a holiday camp where they have stopped momentarily on their way to New York or elsewhere. Even poor refugees are spoofed as being able to devise ways of coping with life on the street. Lisbon itself is mocked during the war years as one big party where everyone meets at high

The Four Horseman of the Apocalypse NOTES:

.

society parties, official functions, or in Salazar’s office. Lisbon is like the sixties movie, A Ship of Fools, and its captain is Salazar. As long as none of the passengers sinks the ship, he will let them beat each other up while everyone holds on; hoping no one rocks the boat too much and they can all sit out the war in relative safety.

The parts are written for the personalities mentioned. It would be nice if they all wanted to be a part of it, saluting action heroes past and present, but they would all have to take a pay cut, of course. Many, are too old for the parts but if played as a spoof, I think it will work. The OSS operatives are a prime example. The historical facts in narrative two are all researched and did happen, although the storyline that presents the facts to the audience is part or all fiction.

Chapter one introduces both narratives as we pick up the main character as he returns to Lisbon on a train from Madrid three months later. Chased through six locales, he has read the journal and knows both stories but has not yet discovered the significance or the whereabouts of the gold. The readers learn just enough of both stories to make them want to read the book.

In Chapter Two, the main character starts to tell his story from the beginning.

The message in the first narrative is you are never too old to do what you love. When the right situation presents itself, you will meet the challenge. But don’t sit back and let life pass you by.

The message in the second narrative is the story of the courageous four horsemen.

Through their diplomacy, intellect and shrewd maneuvering, they keep a back door to Europe open during WWII, which allows a million refugees to pass through Portugal and escape to freedom from the horrors of Nazi Germany. Their efforts save many Portuguese businessmen, intellectuals and professionals from being sent to concentration camps had the Germans invaded Portugal. They also kept Portugal intact as a sovereign country and from becoming a province of Spain.

If Portugal had sided with Germany or the Germans had invaded Portugal, Lisbon would have been destroyed by allied bombers at the end of the war; thus, Lisbon was saved for future generations through their actions. Lastly, they kept Spain from entering the war on the side of Germany, which would have prolonged the fight even longer.

The story has a Hollywood ending; it is, of course, as preposterous as there really being forty tons of stolen Nazi gold still hidden in Lisbon seventy years after the end of WWII. The story ends with a final message to the Portuguese Government; acknowledge Portugal’s role in laundering Nazi gold and implementing the slave trade in the fifteenth century.

.

The Four Horseman of the Apocalypse NOTES:

The Four Horseman of the Apocalypse

.

NOTES:

Cast of Characters Narrative I – Forgotten Ghosts 1.

2.

3.

4.

5.

6.

Tom Cruise – Matt Barnes (Hemingway) – Grandson of Jake Barnes, Hemmingway’s main character in The Sun Also Rises Antonio Banderas – Alfonso Silva (Silver) – Spanish desk clerk and Matt Barnes’ sidekick and comic relief.

Benito Del Toros – The Maverick Mayor of Marbella in the ‘90s.

Zoe Saldanha – Sonya Alvarhao – Daughter of African leader from Angola in Portugal seeking slave reparations.

Samuel L. Jackson – Mr. Alvarhao – African representative from Portugal’s former colonies.

Tommy Lee Jones – Galvao, the antagonist intent on getting the journal from Tom Cruise’ character.

Narrative II – The Four Horsemen

1.

2.

3.

4.

Leonardo di Caprio – Salazar (The first Horseman) Prime Minister of Portugal during WWII and after.

Brad Pitt – Ricardo Espirito Santos (The second Horseman) – The charismatic head of the largest private banking dynasty in Portugal during the war years.

George Clooney – José Maria do Espírito Santo e Silva, (The Third Horseman) - The first son of the founder of the Banco Espirito Santos.

Matt Damen – Manuel Espirito Santos, (The Fourth Horseman) - The third son of Jose Espirito Santos, the founder.

Family

1.

2.

Bill Murray - José Maria do Espírito Santo e Silva, Godfather and Founder of the Espirito Santos Banking Dynasty.

Catherine Deneuve – Maria Espirito Santo, the daughter of Ricardo.

10.

The Four Horseman of the Apocalypse

NOTES:

Ambassadors & Consulates 1.

Jack Nicholson – Baron Oswald von Hoyningen-Huene, the German ambassador to Portugal from 1934 – 1944. He charms everyone with his personality until he is recalled in 1944.

2.

John Goodman – The British Ambassador to Lisbon, Ronald Campbell.

3.

Javier Bardim – Aristides Sousa Mendez, Portuguese consulate to Bordeaux Refugees 1.

2.

3.

4.

5.

Tom Hanks – Mr. 5 Percent, Calouste Gulbenkian – An Armenian oil dealer who spent the war working out of a hotel room in Lisbon.

David Suchet – Baron de Rothschild – Passed through Lisbon on his way to America during the war.

Kate Blanchet – Peggy Guggenheim – Passed through Lisbon during the war en route to America.

Robert Downey Junior – Henry Torres, French lawyer escaping through Lisbon Royalty

6.

7.

8.

Angelina Jolie – Wallace Simpson – The American divorcee who married the Duke of Windsor.

Jennifer Lawrence – Charlotte Grand Duchess of Luxembourg.

Ryan Gosling – Otto Von Habsburg, heir to the Austro-Hungarian throne.

Secret Police

1.

John Travolta - Agostinho Lourenço da Conceição Pereira, head of Portugal’s secret police PVDE. Spies & Spymasters

1.

2.

3.

4.

Bruce Willis - Major Ludovico von Karsthoff, Germany’s spymaster in Lisbon Daniel Craig – Dusko Popov, WWII double-agent who inspired James Bond, known as Triangle Robin Williams – Garbo, Spaniard who ran a network of 12 fictitious spies Dolph Lundgren – Dreadnaught, Dusko’s brother Ivo who runs a sabotage ring

5.

6.

in Yugoslavia Pierce Brosnan – Ian Fleming, British Naval Officer passing through Lisbon Nicholas Cage – Johnny Jebsen, Artist, double-agent who brought Triangle into

The Four Horseman of the Apocalypse NOTES: 7.

11.

the espionage game Jennifer Lawrence – reprising her role as a Russian spy in Red Sparrow OSS

1.

Arnold Schwarzneger – William ‘Wild Bill’ Donovan, the head of the OSS, forerunner of the CIA Sly Stalone – Donald. Downes, recruiter for the OSS Penelope Cruz - Marie Aline Griffith, Spanish OSS agent Jean Claude van Damme- Melchor Marsa, OSS agent in Portugal Jason Statham- Allen Dulles, OSS head in Berne

2.

3.

4.

5.

6.

Chuck Norris-Robert Ullman, works for Pathe News in New York 7.

Scott Adkins-MacPherson Gardner, OSS agent in Portugal 8.

Donald Gibb9.

Harrison Ford-H. Gregory Thomas, head of OSS in Portugal and Spain Ghosts 1.

2.

Ernest Hemmingway Sean Connery Director

1.

Paul Greengrass Executive Producer

1.

Tom Hanks

12.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

CHAPTERS

1. Midnight Train to Lisbon

2. The Capitol of Espionage

3. Chariots Of Fire

4. The Capitol of Andalucia

5. The Golden Mile

6. Ghost Flights

7. The Street Kids of Bucharest

8. Death in the Afternoon

9. Forgotten Ghosts

13.

14.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse

15.

NOTES:

1. The Midnight Train to Lisbon

I never want to leave Madrid. It is one of my favorite cities in all of Europe. But I have to get back to Lisbon and try to put some closure to the past three months. While not the ghost train, I think it may give me a feeling of what they were like back in WWII when the Nazis used them to smuggle wolfram out of Portugal, through Occupied France and into Germany. The bottle of wine I drank, I figure, will put me to sleep and it will be a quick trip. I also know I am going to miss Gran Via, one of the most exciting streets in all of Europe. Hemmingway hung out there as did many other interesting people. I was glad to see it hadn’t changed much since Hemmingway’s days with its beautiful ornate facades; its little side streets trickling down, to busy squares and plazas with even more beautiful quaint restaurants and tapas bars. There’s a Gran Via today because of Franco.

I notice a beautiful girl with a dark complexion sitting across the aisle in the opposite window seat on the train. She has long black hair and is very exotic looking. She must be from Spanish Morocco or some equally mysterious place, I imagine. Maybe the ten hours will pass quicker than I hope. She is wearing tight-fitting blue jeans and a loose blouse that accentuates her figure quite nicely. Not the backpacker type, but more sophisticated and reserved: the studious type maybe, but not too studious because she isn’t wearing glasses. The real intellectual kind often hurt their eyes at a young age from over-reading. Twenty-something, I presume. Soon the train is leaving the station, and we are on our way to Lisbon.

That’s what I like about Europe. I am fifty, yet in Europe, people don’t discriminate because of age. I can quickly strike up a conversation with a twenty-something-year-old, and as long as the conversation is interesting, no problem. It isn’t the same in North America. In North America, younger women look at you like you’re trying to come on

16.

NOTES:

The Four Horseman of the Apocalypse to them, which isn’t the case. It doesn’t mean that you’re going to try and get into bed with every girl you meet. The sophistication that is the difference! Sometimes just getting to know someone different is the goal.

Still feeling no pain and ready to talk up a storm, I lean over towards the girl.

“Do you smoke?” I ask.

“Only American cigarettes,” she admits, turning around so I can see her face.

“Sonja,” I exclaim. “I didn’t recognize you from the back.”

I had just been chased around half of Madrid with Sonja and her father by the bad guys. Her father had flown back to Lisbon that same night. I knew Sonya would be leaving shortly. I guessed it must be the wine if I couldn’t recognize her from behind.

“Mr. Barnes. I didn’t expect to see you again before Lisbon.”

“What a surprise,” I gush, adding, “Smoking’s not good for you.”

“Why did you ask me then,” she counters with a smile.

“I smoke too, or at least I do now.”

“What do you mean?” she asks. “You just started?”

“That’s right. It’s a long story.”

“I’ve got lots of time. At least until we reach Lisbon,” she beams. “We didn’t really have a chance to talk in Madrid.”

“Did your father get away?”

“Yes. Father already had his ticket, so it worked out fine.”

“I need a cigarette,” I fuss.

We are in a non-smoking car. We both get up and proceed out the door to the landing. Outside, the countryside whistles by us fast as I give Sonja a cigarette and lite it for her. She steadies my hand, and with a long puff of the cigarette, she starts to relax, and so do I. “I’ve been chased across half of southern Europe by either your warriors or by Galvao’s men.”

“Well, things should be quieter now,” she consoles.

She looks out the window. The scenery is passing by very fast, and we can both feel the chill of the evening air on our faces. She told me in the Algarve that she was from Portuguese Guyana and a student at the University of Madrid, so I guessed she was on her way home to Lisbon for the holidays. I see how beautiful she is again when the moonlight reflects on her dark face and hands. We talk for a while and smoke a few cigarettes. Smoking does have some value, I think. After a time, we go back inside.

“Too bad we have to sit here,” she pouts.

“The next car up has reclining seats, and it’s empty,” I tell her.

“Really.”

I suggest we go up to the next car and she is all for it. We pick up our carry-ons and head back outside and into the next vehicle. We have our pick of seats as there is still no one in the car. Once we settle into two comfy seats side by side, the conductor comes

The Four Horseman of the Apocalypse NOTES:

17.

in.

“You will have to upgrade your tickets to stay in here.”

“How much is that?” I ask.

“One hundred dollars each.”

“That’s too much,” I explain.

We get up and trudge back to the other car. I no longer feel like the King of Romania.

In Romania, where I was a few weeks earlier, everything is cheap. It is ten years after the fall of communism. You can rent a furnished apartment for one hundred dollars US. American brand knock-off cigarettes cost thirty cents a package, and you can have a good dinner for only a few dollars. That’s all changed now since Romania entered the EU and NATO, but back in 1999, it was a westerner’s paradise; if it weren’t for the problems I encountered during my month-long stay. I didn’t even smoke until I landed in Bucharest, then everything changed, and I needed to fit in for my own wellbeing. I settle into the seat beside Sonya back in the first car, and we begin to talk.

“So you really are a journalist?”

“Yes. “That must be exciting work, and you obviously get to travel.”

“Yes.” “Where have you been on this trip?”

“Lisbon, the Algarve and Seville, as you know. Marbella, Malaga and then Romania.”

“Did you meet any interesting people besides me?”

“Yes. Many. An ex in Seville and her Russian friend. A countess I think she said from Monte Carlo. The Maverick Mayor of Marbella, who may be in jail by now. I also met three gypsy girls in Bucharest named Claudia, Alexandria and Mimi.”

“No Americans?”

“No. Just Romanian gypsies.”

“Good. I detest Americans.”

“I’m American.”

“I’m just kidding, silly.”

“Have you ever heard of a zombie apocalypse?”

“I’ve heard of zombies.”

“Imagine one hundred zombies all in the same place; that’s a zombie apocalypse.”

“Sounds strange.”

“It is strange. The zombies live in the sewers beneath the streets of Bucharest.”

“Really.”

“Are you pulling my leg?”

“It’s true.”

“Did you read the journal,” she asks?

“Yes. It’s fascinating. It is a history of Portugal and how the four horsemen of the

18.

NOTES:

The Four Horseman of the Apocalypse apocalypse save Portugal from being utterly destroyed in WWII.” “It does sound fascinating,” she says. “Who are the four horsemen of the apocalypse?”

“Salazar, the Prime Minister of Portugal and the three Espirito Santo brothers Ricardo, Jose and Manuel who run Portugal’s largest private banking dynasty.”

“Was there any mention of gold in the journal?”

“Yes. Lots! It even says there may still be forty tons of gold hidden somewhere in Lisbon, but it didn’t say where or for sure.”

“What do you think, Mr. Barnes?”

“A lot of people sure seem to think there is a clue to finding the gold in that journal.

As we both know, some have died trying to get the journal. I haven’t told you everything that has happened. But the journal appears to just be a history of Portugal and the four horsemen. I think Maria, who gave me the journal, just wants the truth to be known about Portugal’s role in WWII and the part her family played.”

“Are you going to write their story, Mr. Barnes?”

“Yes. I am. Everyone must know what really happened in Portugal during WWII. Maybe it will bring some closure to the Portuguese people. But what I don’t understand is why The Company would send Gavalo to get the journal?”

“Gavalao wasn’t part of The Company,” states Sonja.

“Yes, he was. The manager of the Sheraton Algarve told me so.”

“My father checked into Gavalo, and he has nothing to do with The Company. It seems Gavalo’s grandfather had been a partner of the founder of the Banco Espirito Santo at the turn of the century, but he had been forced out. Their family has held a grudge against the Santo family ever since.”

I wasn’t telling Sonja all my thoughts about the journal. While it was the story of Portugal, and it needed to be told, there definitely was a connection I felt between the gold and the journal. I wanted to understand it more before officially saying it didn’t lead to any hidden, stolen gold. Another thing I found puzzling was if Gavalo wasn’t working for the Santo family, how did he know I had the journal?

Instead of making me fall asleep, the wine made me talk even more. Maybe if I had been alone, it would have affected me differently. Sonja is charming, and we enjoy our time together. This is the first time I have had the chance to be alone with her without her father. A long time passes, and we both eventually fall asleep around three or four a.m. We’re awakened by sunshine pouring in our window about six a.m., but we continue to drift in and out of sleep another hour. We are in Portugal now and heading south towards Lisbon from the north. I keep looking out the window, wondering where the wolfram mines are located that I read about in the journal. Soon we are pulling into the Santa Apolónia Station, the oldest railway terminus in Portugal, by the river. I am already familiar with the station as it is where I first arrived from Cascais about three months earlier.

The Four Horseman of the Apocalypse NOTES:

19.

“Here is my telephone number,” says Sonja writing it down on a piece of paper.

As we slept, I kept falling over against her, which she didn’t seem to mind. My arm was around her, and it kept slipping down as well until my hand often found itself inside the back of her pants. She would roll over, and I would pull my hand back, which was all part of the game. This happened several times until we both woke up and pretended we had been asleep.

“Say hello to your father for me. I am sure we will be in touch soon,” I assure.

She kisses me goodbye.

“I will tell him,” she whispers. “It isn’t really a goodbye kiss; it is more of I’ll see you later kiss.”

As we pull to a stop in the station, I can see Sonja’s father and others standing on the ramp.

“Are the others your family?” I ask.

“Yes.” They look like an official welcoming committee or maybe even bodyguards. She thanks me for keeping her company on the trip, and I do likewise, and she gets up and leaves. I watch outside through the window as she greets her father. She doesn’t turn and wave.

But I do have a feeling our paths will cross again and soon. It is seven-thirty a.m. Once outside, I take a taxi up to the Sheraton Lisboa Hotel, my next home away from home and quickly check in. I go straight to my room on one of the upper floors, pull shut the drapes and crawl into bed.

I stayed at the Hotel Palacio in Estoril three months earlier, but on my return, Y made arrangements for me to stay at the Sheraton, which is right in the center of Lisbon. It will be much quicker and easier for me to finish my work and get to my meetings than commute by train every day from Estoril. While I enjoyed my stay at the Hotel Estoril, I am on a top floor at the Sheraton, which has a commanding view of downtown Lisbon.

It is early afternoon by the time I awake. I am feeling much better after my all-nighter on the night train to Lisbon. I reach into my pocket and find the piece of paper that Sonja has given me. I then draw back the long drapes, and the wonderful panorama of Lisbon comes into view. It is good to be back in Lisbon. After what happened in Madrid, at least

20.

NOTES:

The Four Horseman of the Apocalypse knew I had seen the last of Galvao and his men. I had grown fond of the City on my first visit, except for my hasty departure. The stress of Bucharest and Romania is beginning to wear off. It feels like a weight has been lifted off my shoulders. But there is still something I need to do.

It is a beautiful sunny day as I make my way into town down Avenida Da Liberdade.

Is there ever a bad day in Lisbon? Thanks to Ricardo’s father for building the Avenue de Liberdade and thanks to the four horsemen for making it possible for all this to survive the war, I think as I gaze out over the panorama of Lisbon. Hard to imagine the streets being filled with eight thousand refugees in 1940, but they were. Just before Rossio Square, I see an old stone house on a corner lot. It is ancient and for sale. Somehow I get inside. There must have been someone there who showed me around. I remember going around to the back and through a garden.

The first level of the old house had once been a stable, and it is almost entirely intact.

It must have dated from at least the Eighteenth or Seventeenth-century. The second floor has frescoes on the walls of the living area. While faded, I can see that it was the home of a wealthy person. The upper floor has small bedrooms with great views of the City. What a wonderful old house if it were fixed up, I think, and right in the center of Lisbon. It must have been built after 1755. Someone was there because I remember I was told that I could buy the house for one dollar US, but the repairs would cost upwards of one million. I often wonder what happened to that old house. I hope someone purchased it and restored it to its original glory.

I hadn’t really been thinking much about real estate in 1999. Still, today in 2021, having just written a character-driven epic on Canada all about racism, discrimination,

The Four Horseman of the Apocalypse NOTES:

21.

its housing crisis and multiculturalism, I am much more aware when I come across potentially good opportunities in the housing market. While I haven’t been back to Lisbon since this trip, I know the Chinese are becoming significant players in Lisbon’s housing market both residentially and commercially. Chinese ties to Portugal go away back to Macao.

Carrying on down through Barrio Baixa, I eventually arrive at Cais do Sodre Station and board the commuter train for the short ride up the coast to Cascais. I pass Estoril with all the bathers on the beach (and it is December). I can see the Casino and the

Hotel Palacio. In my mind, I can see WWII double-agent Dusko Popov with a girl on each arm (compliments of the journal), leaving the Casino for the short walk to the Palacio. Soon I disembark at the Cascais station and head north along the seawall. When I get to the seawall close to the ocean, I take my lighter and cast it into the river. It is a symbolic gesture to emphasize that I don’t need it anymore, and I never smoked again. I don’t recall having any withdrawal symptoms. I think the less stressful environment with happy people playing in the sunshine made all the difference. It really is fascinating how much stress can play a part in our daily lives. I had never smoked before, so that too was probably a significant factor.

22.

NOTES:

The Four Horseman of the Apocalypse After returning to my hotel, I set out in earnest to contact more people for the travel magazine I want to publish on Lisbon. Although I am sure I will write Maria’s story about Portugal, still, I want to finish my work on the magazine I started when I was previously here. On a break, I decided to take a walk north of my hotel. Soon I come to the Atrium Saldanha, an attractive small shopping mall. It just opened in 1998, the year Expo 98 was held in Lisbon. Portugal had just joined the EU ten years earlier, and that is when it began to emerge from the aftermath of the effects of WWII. Although Salazar made the country rich during the war, he wouldn’t spend any of it to improve living conditions for his people. It consists of twelve floors, and the bottom three floors house seventy-eight retail stores. I am now in the central business district of Lisbon, so I carry on up the Avenue Da Republic and find several more stores and small shops.

Once I get away from Downtown Lisbon, I discover how massive the City is when you add in the suburbs. The downtown is the most interesting though with its colourful history, but for my magazine, there are many potential advertisers everywhere.

Around day four or five at my hotel, I am informed by management that my complimentary room that Y had previously arraigned will only be good for three nights. I have already stayed five nights which means I owe for two nights. I had also been charging breakfast and dinner at the hotel restaurant to my room along with telephone, faxes and sundries, (soft drinks etc.) Salazar would never have approved. He didn’t even turn the heat on in the winter in his office. I still have not received any money from any advertisers. I was in a bit of a quandary as to what to do next. I hoped the hotel would reconsider and extend my stay for three days, but they wouldn’t budge. I needed to stay at least through December 8 to finish the meetings I had scheduled with CEDA and the two other tourist bureaus. So I send a fax to Mary Rideout at the Ritz Four Seasons to see if I can arrange a few nights’ accommodations, but that doesn’t work out. I take a chance and contact the Hotel Palacio and agree to stay with them for another couple of nights. I couldn’t cover my tab at the Sheraton Lisboa before my unexpected departure, but I told them that I will return and cover everything when the funds arrive. They said that was fine. This set off a series of unfortunate events.

After the tumultuous past three months, I wasn’t thinking much about my financial situation. I was starting to feel like a WWII spy who couldn’t find his paymaster. Once I got home to the US, I would sort things out and see where I was regarding the success of my trip. Things usually worked out, so I concentrated on the job at hand, and for now, I needed to wrap up my meetings.

I finish up my meetings with the three tourist bureaus, but when I return to the Hotel Palacio at the end of my second day, I am informed I will have to leave. It seems the Sheraton has called to let them know that I had not covered my tab before leaving. I try to explain that I am expecting funds from home, but the manager does not care about my predicament. I now find myself in the middle of Lisbon with no place to stay. Now, I feel like a WWII refugee. What to do next?

The Four Horseman of the Apocalypse NOTES:

23.

I board the commuter train in Estoril for Barrios Baixa with a suitcase in hand and head up the hill towards Avenida Da Liberdade. Along the way, I find a small pension that I can afford with the small amount of money I have on me. I need to have funds sent from home and quick.

I wasn’t going to break down and borrow money from the firm. I want to make a go of it on my own in the magazine business. So for the next few days, I wander around the streets of Lisbon, going over the events of the previous three months, which got me into this predicament. This is how it all started!

24.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

25.

2. The Capital of Espionage

I arrived at Lisbon’s Portela Airport late on the evening of September 6, 1999. The airport is located 7 kilometres north of the center of Lisbon. The only way to get from the airport to the Hotel Palacio, where Y has made reservations for me for the week, is by taxi. Y, my handler is MI6, and I have taken a three-month leave of absence to see if I want to continue in the firm. Fighting for noble causes all my life and not really seeing the results, has left me wonder if it was really all worth, had I really made a difference?

I have never been to Lisbon before but have always wanted to see it. I had visited most of the capital cities of Western Europe in my youth, and now I wanted to explore further afield. Besides, Western Europe is a lot more expensive now than in the sixties and Portugal and my next stop Spain is much less. The climate is also much warmer down south.

Estoril is located just west of Lisbon on the Bay of Tamariz. During World War II, it acquired a glamorous reputation when Portugal’s neutrality and mild weather attracted the rich and famous German and English spies and European royals and aristocrats.

Several royal families went into exile in Estoril, King Umberto II of Italy, and Carol II of Romania, the Count of Paris and Spain’s Don Juan, giving it the nickname the “Coast of Kings.”

I don’t speak Portuguese, but from my earlier experiences in Europe, I know as long as I try to speak the language a little, I can get by, and I did study French and German in university. I figure I will have no problem as English is pretty well spoken universally, and I didn’t.

It is twenty-eight kilometres to Estoril as the taxi winds its way through the countryside just north of Lisbon. The darkness, fatigue and jet lag leaves me with little memo-

26.

NOTES:

The Four Horseman of the Apocalypse ry of the trip except to say it seems like no time at all before we are pulling up in front of a rather grand Old World-looking hotel. An ambience of exclusiveness pervades the hotel with its elegant classic decor - a combination of timeless luxury and sophistication.

I grab my bag from the taxi and proceed inside, where I quickly check-in and a night clerk shows me directly to my room, number 25, on the third floor.

There will be lots of time for exploring in the morning, but for now, all I want to do is fall asleep on a comfortable bed in a quiet room. It is a grand hotel on the inside as well, with beautiful woodwork and elegant staircases. I can see why spies would want to frequent its grand hallways eavesdropping on other spies trying to discover their secrets.

The room is small by North American standards but very elegant. I am so tired I go right to sleep. The following morning I am awoken at six a.m. by the sun shining through a small window in my bathroom. I get up and look out the window. I can see the ocean, and below on a green grassy plaza is a pool full of turquoise water. The collection is surrounded by dark blue canvased lawn chairs. I can’t wait to get outside.

As I walk through the lobby, the desk clerk smiles at me.

“Good morning Mr. Barnes. You’re the famous journalist, are you not,” he asks with a Spanish accent?

“No, that was my grandfather, Jake.”

The Four Horseman of the Apocalypse NOTES:

27.

“Yes. Hemmingway. The Sun Also Rises.”

“A Farewell to Arms,” I quip. A little one-up-man-ship to start the day, I think.

“For Whom the Bell Tolls.”

My grandfather was Jake Barnes. Hemmingway modelled his main character after him in his first novel, The Sun Also Rises. I often get mistaken for my grandfather. The connection, however, still opens a lot of doors, even after the passing of so much time.

“How does a Portuguese desk clerk in Estoril know so much about Hemmingway,” I ask?

“Alfonso Silva at your service. In university, I took English. We were required to read Hemmingway.”

“What was your favourite novel?”

“I read them all but probably The Sun Also Rises.”

“Mine too,” I agree.

“We have had a lot of cultured people pass through this hotel, so it is good to know Hemmingway. I have learned a lot about people reading his books.”

“So I’ve heard and not so cultured as well. Passing through your hotel, I mean.”

“British and German spies could often be found in the spy bar exchanging secrets,” Silva whispers, looking secretive. “Later, these stories of intrigue and espionage inspired famous novelists and filmmakers, and the Hotel served as the set for the James Bond movie “On Her Majesty’s Secret Service.”

“That was a long time ago. I expect all the stories have been told and all the secrets discovered.”

“There were a lot of secrets, some that have stayed hidden even to this very day.

Like, what happened to two hundred storm troopers? They got off four submarines in the harbour one night in 1944 and disappeared into the shadows of Barrio Baixa. When the submarines departed the next day, they were nowhere to be found.”

“You don’t say.”

“You just need to know the right people.”

“Do you know the right people,” I ask?

“I might. High society doesn’t talk to just anyone, but they might be interested in talking to the grandson of the great Jake Barnes.”

I wasn’t expecting to meet any spies on this trip, but one never knows; all I hoped to do was familiarize myself with several cities and see the possibilities for publishing several colour travel magazines for the American market. I thought of making a career change as I was getting older, and I thought developing luxury travel magazines might be to my liking. My cover had always been a journalist so it wasn’t a far stretch.

“I will ask them and see if they’re interested in talking to you,” Silva promises. Several people arrive at his desk, so he turns to look after them, and I leave.

The sun is shining, and it looks like a great start to this latest adventure. I am looking forward to not only exploring Lisbon but the coastal area as well. The ocean seems

28.

NOTES:

The Four Horseman of the Apocalypse marvellous from my window, and I can imagine the Knights Templar sailing off to the new world or Scotland from its shores in bygone days.

Estoril is in the middle of the Estoril Coast. There is a small commuter train on the waterside that takes you either north to Cascais, the playground of nobility [The Portuguese Riviera] and Sintra, or, in the other direction, to Lisbon. A beachfront promenade links Estoril to Cascais as well.

As I stroll down Rua Particular by my hotel to the promenade on the beach, there is a lot to see. I notice several stores selling luxury goods. Once under Avenue Marginal (a raised roadway from Cascais to Lisbon built by Prime Minister Salazar in the thirties to get to his office quickly without being seen), I find myself on a grand promenade that meanders to the left and right along the beach. Both the beach and the boardwalk are marvellous. I buy some chewy candies from a kiosk under the Avenue and head north along the promenade. Sunbathers and kids are playing everywhere. It is only seven a.m., and the beach has plenty of bathers already. At Avenue Aida, I head back under Avenue Marginal and back up towards my hotel. To my right are the famous Casino Estoril and its gardens.

The Casino Estoril was also a nexus of espionage during WW2, as spies and deposed royals played at the famed Casino’s tables. Ian Fleming penned the first half of Casino Royale, one of the installments in his adventures of James Bond, while in Estoril. The legendary figure of James Bond continues to project an image of this historical region even today.

I want to catch the scenic coastal railway into Lisbon. It departs twice an hour from Cais do Sodré Station in Lisbon and goes to Estoril and Cascais. But the beach and promenade look so inviting I decided to go for a run to the north. I have been an avid jogger for years and run every day, so off I went. It isn’t long before I come to the town of Cascais. Picturesque coves come into view as I traverse the promenade around Cascais.

The

The Four Horseman of the Apocalypse

29.

NOTES:

The boutiques along one of the main roads look pretty inviting. I can see sunbathers enjoying the beautiful weather and fishermen in their boats arriving at a dock not far away. All the activity is bathed in a rainbow of yellows, blues, whites and reds, typical colours of a traditional Portuguese village.

I need to get into Lisbon, so I catch the scenic railway back to Cais do Sodré Station.

The best way to see Lisbon for the first time is from the Tagus River. The magnificent Praca do Comercio sits on the Tagus fronting the Baixa neighbourhood, the Barrio Alta on a hill to the left and the famed Alfama on the opposite hill.

Barrio Alto

Praca do Commercio with Alfama behind

30.

NOTES:

The Chiado

The Chiado

The Four Horseman of the Apocalypse The Baixa is one of the most essential neighbourhoods in Lisbon. It consists of a grid pattern with streets running parallel to each other, quite unlike the other neighbourhoods on either side. It was re-built after the Eighteenth-century earthquake. There are lots of small shops to explore and beautiful places to eat in the Baixa.

It’s incredible to think that before the earthquake of 1755, this area was full of palaces and buildings with beautiful architecture. One can see on either side the original neighbourhoods and how what was destroyed would have been the centrepiece of what must have been the most elegant cities in all of Europe. Once the earthquake struck, though and then the fires and finally a tsunami, nothing left.

The Barrio Alta on the left can best be described as a loose association of neighbourhoods. There are a few lovely parks, and it is a great place to explore as the streets have no logical pattern. Sloping streets and three-story buildings are typical.

The Alfama on the opposite side is the oldest neighbourhood in Lisbon. It has an abundance of Fado (typical melancholy Portuguese music) bars and restaurants. Thankfully, the great Lisbon earthquake did not destroy the Alfama, which has remained a picturesque labyrinth of narrow streets and small squares ever since. It is historically the neighbourhood of the poor.

So this is where the slave trade began in Lisbon, the Praca do Comercio. I walk along the water’s edge from Cais do Sodre until I reach the Praca do Comercio and cross over to the square. I stand and gaze at a giant equestrian statue of King Jose I in the centre of the court and the remarkable architecture behind it. Continuing inland to the Baixa, I find myself on Rua Augusta, where there are many shops. After exploring the Baixa for a while, I head over to the Barrio Alto.

But before I arrive at the Barrio Alto, I discover the Chiado. The Chiado is a historic square that lies in an area that was long the home of intellectuals, journalists and poets.

It was mostly destroyed by a fire in 1988 and was still undergoing renovation when I arrived. Today the renovation is finished, and it is the priciest neighbourhood in Portugal.

I come across Armazens do Chiado and go inside. It is a department store. Designer labels are everywhere: Zara, Guess, Morgan and Mango. Many new national designers are bringing Portuguese fashion to the international stage. The Amazons do Chiado is on Rua do Carmo, so it is a short walk back down the hill to Cais do Sodre station and the train back to Estoril.

The Four Horseman of the Apocalypse NOTES:

31.

Back at the Hotel Palacio, I walk up a lovely stone pathway to a garden door with many windows leading to a ballroom. No matter which way you come, you can see the hotel towering above in the distance. Nothing has changed since the days of WWII. Twenty years from now, it will be the same. I walk through the ornate ballroom towards the reception area. I can see Alfonso at the counter. He has several people gathered around him, but when he sees me, he yells,

“Mr. Barnes. I’ve been looking for you.”

“Is it about our conversation,” I ask, coming up to the desk?

“Yes. I have something to tell you.”

“Did you talk to the family?”

“Yes. My contact says for you to come over.”

“Did they give a time?”

“Anytime is fine.”

“Is tomorrow afternoon good?”

“Alfonso leans over and looks me in the eye.”

“Do you want to know something?”

“Yes.” “You need to be very careful.”

I think back to what Alfonso had told me. He knew this family who lived in Lisbon during the war and how its patriarch had been an advisor to President Antonio Salazar.

“What’s the matter?” I ask.

“They like to talk, but others don’t like them to talk,” he pauses. “They’re wealthy people, Mr. Barnes but my contact isn’t. They like to keep to themselves. But they also like to talk. They’re of two minds.”

32.

NOTES:

The Four Horseman of the Apocalypse I reach into my pocket.

“Would a hundred help?”

“Yes,” he says and takes the hundred.

“I’ll make the arrangements. Come by in the morning, and I will give you their address.”

That evening, I jog back to Cascais to have dinner in one of the many restaurants and colourful cafes dotting the seaside. Alfonso slips back behind the counter. I watch him talking to the other guests. He is thin, small and sure of himself in that environment. I wonder how he would handle himself in the real world.

Portuguese dinners are fabulous! Traditional Portuguese dinners begin with bread, a round of goat’s cheese, wine and then usually a variety of white fish. The atmosphere in the cafes by the seaside in Cascais is enchanting. The former fishing village gained fame as a resort for Portugal’s royal family in the late Nineteenth-century and early Twentiethcentury. Today, it is home to Portuguese, jet setters and foreigners.

My routine while staying in Estoril is always the same. I rise at six a.m. and run up the beach to Cascais and then return to the Hotel Palacio for breakfast at eight. The following day when I finish breakfast, I stop by the front desk to see Alfonso.

“Hello, Mr. Barnes. Here is the name and address of the family.”

Maybe I underestimated him. I thank him and go outside to read the note. It reads: La Casa Cor-de-Rosa villas, on the Boca do Inferno. Ricardo Espirito Santo was a close advisor and personal friend to Antonio de Oliveira Salazar during WWII. Interesting, I

The Four Horseman of the Apocalypse NOTES:

Boca do Inferno

33.

think! The family still keeps a summer home in Cascais in the same house the Duke of Windsor stayed in 1940. Ask for Maria sometime this afternoon.

After I leave Alfonso, I run back up to Cascais and take the Estrada do Boca do Inferno past the quays and town. I must have run past this villa yesterday. There it is magnificently standing alone, facing the water. I look at it for a minute, soaking it all in. It is too early to visit, so I keep going. On the other side of the Marina de Cascais, I find many old abandoned houses in a state of disrepair. They are situated across the road from the ocean and have unobstructed sea views and access. I never do find out why they are abandoned.

Home of Maria Esporito Santo

34.

NOTES:

The Four Horseman of the Apocalypse After lunch in Cascais, I go back to La Casa Cor-de-Rosa and knock on the main entrance door.

“Hello, is Maria home,” I ask?

“Whom should I say is calling?”

“Matthew Barnes, Alfonso Silva at the Hotel Palacio said I should drop by this afternoon.”

“Oh yes, please come in. I will tell Madame Espirito Santo she has a guest.”

“Thank you.”

I had a drink with lunch, but I was not drunk, just enough to keep me from saying anything careless.

“For God’s sake, come in, young man,” Maria utters, seeing me standing in the hallway.

“I am in.”

“Oh, how charming he stands up for himself, she states. “I do too. Let me introduce myself; I’m Maria Espirito Santo.”

We walk into a large living room with lots of period furniture.

“What did you say your name was,” she asks? “There is something I wanted to ask you.”

“Matt Barnes.” And if you are going to ask me if I am any relation to Jake Barnes, the answer is yes, I am his grandson.”

“Wonderful, he enjoyed great success. Or was that Hemmingway?” Maria gazes around the room, looking slightly confused until her eyes are fixed on a particular chair

The Four Horseman of the Apocalypse NOTES:

35.

by a desk. “Don’t sit in that chair,” she exclaims.

“You knew my grandfather,” I ask, trying to get away from the subject of empty chairs?

“Only by reputation, not personally,” confides Maria.

The butler returns.

“Jake,” he professes. “Will you have a drink?” The butler walks over to a bar and pours us both a drink while Maria sits down on the couch.

“It’s Matt. Jake was my grandfather,” I retaliate. “Gin and tonic, please.”

I wonder how the butler knows to call me by my grandfather’s name.

“Don’t sit in that chair,” repeats Maria.

“I know, someone is already sitting in it,” I divulge.

“How did you know that?”

“I can see ghosts, well, not all ghosts but ghosts of important people.”

“Hello, Mr. Barnes,” sighs a voice.

“Hello, your highness. The Duke of Windsor is sitting in the chair.”

Only I can see and hear him. The Windsor’s were en route to a new posting when they stopped in Lisbon and stayed in this villa for a few weeks before catching a ship to Nassau. It was to be the Duke’s next official posting.

“You can see him,” asks Maria?

“Yes, and hear him. He looks exactly like he did when he stayed here in 1940.”

“Ask him why is he here?”

“He says he felt safe here after they left the Ritz in Madrid. Here in Lisbon, everyone was neutral. There were a lot of Germans in Madrid, Gestapo and foreign affairs ministers. But no one ever knew who was a double agent in those days.”

“That’s true. No one really knew except the agents, and they were always changing sides depending on how the war was going,” laughs Maria jokingly.

“My father Ricardo, the Germans felt was “their Portuguese agent.” The role of the Portuguese government was to help the British achieve their objectives relative to the Duke of Windsor and pull the wool over the Germans’ eyes. Ricardo Espírito Santo was one of the most appropriate persons to receive the Duke of Windsor. He commanded enormous respect, a cosmopolitan vision and the savoir-faire to play host in irreproachable style to a royal guest (even one who had abdicated from his throne) at his summer residence in Cascais. With his acknowledged sympathy, the panache of his social life, and his unequalled gift for diplomacy, my father was able to win the confidence of the Germans throughout the war.”

“Now, now Maria, don’t get cheeky.”

“He says don’t get cheeky.” I can tell Maria is quite proud of her father.

“Well, it’s true.”

“What did you do in Lisbon,” I ask the Duke?

“We enjoyed our stay in Cascais. When dining, either at “Casa da Laura” in Cascais

36.

NOTES:

The Four Horseman of the Apocalypse ior in our temporary home, our frequent companions were the Rothschilds or the Espírito Santos, who were sometimes accompanied by their brothers. We went on walks in Sintra, in Quinta da Marinha, or just in the grove of pine trees surrounding the house.

While in Lisbon, I visited American ships, among which was the Manhattan, which had come to Lisbon with the express purpose of taking aboard some two thousand US citizens on their way home.”

“He says they enjoyed their time in Cascais and what he did when he was here visiting with the Rothschild’s and your family, of course.”

“On one occasion only, on July 10, I visited the Spanish embassy to meet Javier Bermejillo, a long-time friend. On the afternoon of the 21st, I attended a bullfight at Algés.

The Portuguese sojourn of the Duke – “the last of the romantic princes,” as characterized by Suzanne Chantal, the French reporter who interviewed me on July 31 – was far from being disagreeable. On July 31, during a dinner at the Aviz Hotel, I announced my decision to leave for my “tropical exile” on the following day.”

“He says he agreed to leave on July 31.”

“Yes, that took some convincing by Churchill. If he hadn’t gone, he probably would have been assassinated, so the Germans couldn’t have gotten a hold of him and used him for propaganda purposes.”

“Oh, I never had any intention of siding with the Germans. I was mad at my sister-inlaw and with Churchill, but I was still an Englishman.”

“He says he never had any intention of siding with the Germans.”

“So he says now fifty years later, but that’s not what I recall.”

“How would you know? You were never around.”

“He says you were never around.”

“Servants talk.”

“So what brings you to La Casa Cor-de-Rosa,” Mr. Barnes,” asks the Duke.

“Business with Madame Esporito Santo.”

“So, you didn’t come to see me? Then I will bid you both adieu.”

“He’s gone,” I tell Maria.

“Good, I never liked that man. He changes his mind too often. He’s definitely one of history’s forgotten ghosts,” says Maria. “I always know when he is here because the cushion on that chair looks like someone is sitting on it, but you can’t see anyone.”

Maria is sitting holding the glass the butler had given her before he left the room before the Duke appeared. To say she looks like she has seen a ghost would be an understatement. Maria is in her nineties, but she is sharp and spry and deserving of my attention.

“Mr. Barnes, Alfonso says you might be interested in writing about some secrets never before told.” She puts her glass down on an end table by the couch and waits for my reply.

She is aristocratic-looking in keeping with her lineage. She is wearing a slipover

The Four Horseman of the Apocalypse NOTES:

37.

sweater and tweed skirt, and her hair is brushed down on both sides and curled on end like ladies wore their hair in the sixties. The look suits her well. She was probably lovely in her earlier years and now is enjoying life. She probably always wanted the good life.

“Yes. That’s possible.” I say. “If it is interesting.”

“There are a lot of secrets, Mr. Barnes, from the old days, and I must say my family has endeavoured to add a whole bunch more over the last few decades. But what I want to show you has to do with the war. My father was a close friend and advisor to Salazar, whose government was in power during the war years, as you know, and my father knew everything that was going on regarding the Nazis and their activities in Portugal.

Salazar was all about Portugal. He only thought first about the country, and that is why he kept it neutral. The Germans needed Wolfram to make their steel which Portugal had, but Salazar wouldn’t just give it to them for free. He demanded they pay for it, and they paid in gold; lots of it, millions.”

“He was caught between a rock and a hard place, I would say.”

“Wasn’t it lovely? And you, my dear. What do you really think?”

“He made Portugal rich,” I say.

“But at what price?”

“Depends on the morality,” I say.

Maria laughs. “He didn’t care about morality, Mr. Barnes. “It was an insult to all of us.

We didn’t know about the gold at the time.”

“Your father did.”

“He was in business to make money,” Maria says. She laughs again.

“You’re wonderfully nonjudgmental about your father,” I say.

“Yes. Aren’t I. When ones in the family I’m in, one can say anything and remain in relative security.”

Cold air blows in, and the Duke returns. “Oh, he was a bastard, and you know it, Maria,” says the Duke jokingly.

Maria smiles and looks towards the chair.

“I thought you had gone,” she laughs. “You don’t need any gold.”

“I thought I might stay and see if you were talking about me, but this is far more interesting.”

“I’ve got to go,” I say. “I have another appointment in Lisbon.”

I didn’t really, but this conversation started to sound like a bad thirties high society movie. I look back at the Duke. He is still smiling at Maria.

“Before you go, I have something to give to you,” Maria says to me.

“Do you have something for me too,” asks the Duke.

“The Duke wants to know if you have something for him as well.”

“Don’t flatter yourself. Poor chap. It’s over here on the desk.”

“Oh, well,” the Duke says. You can’t blame a ghost for trying.”

“Is this it? I asked, picking up a journal off the desk.

38.

NOTES:

The Four Horseman of the Apocalypse “Yes. That’s it.”

“What is it?”

“It’s my father’s journal,” Maria says. I wonder what is so important in the journal that she wants me to read it. It is time to go, but I am curious. On my way out, I pass close to Maria.

“You’re sure you want me to have this,” I ask?

“Yes. It tells all about the Nazis’ activity here in Lisbon during the war.”

“Has anyone else ever seen this?”

“No. Just family.”

“Recently?”

“No, in the past.”

“Are you sure you want me to take it?”

“I wouldn’t give it to you if I didn’t.”

“Be careful, Mr. Barnes, the Duke says. “Someone might come looking for you if you start spilling family secrets. Don’t go out too far.”

I leave the house and take the journal with me. Maria gets up and stands by the door.

The Duke is muttering something in her ear to her which she can’t hear, of course, and I’m too far away.

On my way back, I stop at the Hotel Palacio and ask for an envelope. I decide I will mail the journal back to Maria but not until I have read it.

“Hello, Hemmingway. I trust your meeting went well,” asks Alfonso.

“Yes, Maria is an interesting lady.”

“She knows a lot of secrets.”

“I bet the chef fifty escudos that she would tell you some secrets.”

“You’re going to lose your fifty escudos,” I say.

“Oh well.”

The Four Horseman of the Apocalypse NOTES:

Pena National Palace

39.

“Have you ever been to America,” I ask Alfonso?

“No. I would like to go some time. I don’t know anyone in America.”

“You know me now,” I say. I hand Alfonso one of my business cards, and he looks at it. “Look me up if you go.”

“The big apple.”

“That’s right. At least for now. You can always find me through my email address.”

“Thanks, Mr. Barnes. I will do that.”

Another town I want to visit in Sintra. It had been the summer home of the kings and queens of Portugal before the Republic was formed in 1910, so I head off for Sintra.

To get to Sintra, I take a bus from Cascais for a short twenty-minute drive. The buildings of Sintra are medieval, but it dates back to the time of the ancient Romans. Lord Byron visited Sintra and mentioned it in his poetry. After I leave the beautiful old buildings, a winding road takes me up a steep hill to the Pena National Palace, which was once the home of Portuguese royalty. It is perched high on a hilltop. At the start of the road up the hill, I see an interesting phenomenon. In a small clearing inside the road’s curvature, sparrows are flying at great speed in a circle. There must be a couple of hundred of them flying in the thirty-foot enclosure. I never knew what the reason is and still do not know.

After discovering Estoril, Cascais and Sintra (The Estoril Costa), I knew they had to be included in my magazine. I was in touch with the Lisbon Tourism Association and ICEP (who are responsible for promoting Portugal) from New York. While in Estoril, I contact the local tourism office and its director, Luis Hespanha. I am to get back to him by December 1 to answer his inclusion with a one-page ad on Tourism Estoril. I also send a fax to Mr. Pedro Garcia of the Cascais Marina inviting him to participate. I wasn’t sure if there will be a magazine on Portugal, Lisbon, or the Estoril Costa or some combination, but I kept all options open. The magazine will be about two hundred pages and destined for the U.S. market, but copies will be available for participating hotels in Portugal.

40.

The Four Horseman of the Apocalypse

NOTES:

Any magazine on Portugal should include the islands of Madeira and the Azores. I send a fax to Mrs. Teresa Joncalves at the Cliff Bay Resort Hotel in Madeira to arrange a stay of three or four days during my time in Lisbon. Unfortunately, I cannot arrange accommodation, so I do not travel to Madeira on this trip. The Azores turns out to be not as strong a tourist destination as Madeira, so I do not try to visit them.

Rua do Carmo and the Jardim da Estrela

I want to explore Barrio Alto. Arriving at Cais do Sodre station one morning, I go back up Rua do Carmo and continue walking. I have brought Maria’s journal and figure I might read a few pages if it isn’t too dull. I eventually find myself on Calcada da Estrela.

I am no longer in Barrio Alto but keep walking anyway. Soon I come to the Jardim da Estrela. The Jardim da Estrela is one of the most beautiful parks in Lisbon, well landscaped with plenty of exotic trees, cacti, flower beds and a pond with fountains. The park is especially popular with locals who come here on weekends to socialize, stroll along the paths, or drink at the café. It is wonderful! The cafe in the middle of the park has piped in American rock music from the fifties and sixties. The park was never crowded during my visits. I also discover a beautiful old Victorian bandstand painted forest green. It is made of wrought iron, similar to many I had played travelling Europe in a band as a kid.

The roof is high and flat, with wrought iron designs around all four sides. It is marvellous! It had been moved to the park in 1936 from Rua da Liberdade. Across the street

Jardim de San Pedro de Alcantara

The Four Horseman of the Apocalypse NOTES:

41.

from the park is the beautiful white Basilica da Estrela.

Another park that I stumble upon, which I really enjoyed, was Jardim de San Pedro de Alcantara. Back in Barrio Alto, I walk north up Rua da Misericordia until I find this park. It is situated on a lookout over the Baxia District. You can see across downtown Lisbon from this vantage point and out as far as the Tagus River. It is a breathtaking sight.

I decide to sit down on a park bench and start reading Maria’s journal: The first entry is

by Salazar, the Prime Minister of Portugal, in 1939.

Salazar Portugal’s most significant danger is a German invasion of the Iberian Peninsula.

If Germany wins the war, Portugal will almost certainly disappear as an independent country and be relegated to a mere province of Spain which is the avowed aim of the Spanish fascists. Portugal’s primary policy objective, particularly after 1941, is our alignment with Britain, with few exceptions. To avoid provocation, this has to be concealed from Germany as far as possible. This will be achieved through the declaration and practice of neutrality. It is easy to understand Portugal’s position where the Duke of Windsor is concerned in this context. Our desire is to further the solution desired by Britain while concealing Portugal’s motives from the Germans but leading them to believe that Portugal is sympathetic to the interests of the Axis powers. Who better receive the Duke of Windsor in his home than a man whom the Germans consider a Portuguese confidant?

Throughout the war, the Germans are woefully inefficient in handling information received by their intelligence services, particularly when it comes to checking its reliability. It has been shown that on innumerable occasions, they are prone to wishful thinking and accept any information they want to hear as reliable. I can mention the mistaken belief of Rudolf Hess, for whom ending the war was an obsession that the Duke of Hamilton was “a great friend of Germany.” Imbued with this idea, he made his famous solo

42.

NOTES:

The Four Horseman of the Apocalypse flight to that Scottish nobleman’s Castle. The price he paid for that error of judgment was 46 years of incarceration – and ultimately his life.

Ricardo Espirito Santos

Santa Justa Elevator

Over the years, I would remain a steady confidant of Salazar, one of his leading financial advisors and even a personal friend. Salazar was not in the habit of mistaking true friends and allies for false ones. If we look at the scenario in this light, everything would seem to fall into place: I was one of the most appropriate persons to receive the Duke of Windsor. I commanded enormous respect, a cosmopolitan vision and the savoir-faire to play host in irreproachable style to a royal guest (even one who had abdicated from his throne) at my summer residence in Cascais. In short, the ideal host for the Windsor’s in Portugal. My Boca do Inferno villa is isolated, thus lending itself perfectly to keeping any guest under observation and protected from any unexpected intrusions.

Interesting, but what does this have to do with Nazi gold. I get up and leave. It will take a lot more reading to convince me that this story is worth writing about.

Back in the Chiado, I notice an outdoor elevator. There are four I discover in Lisbon.

This one is called the Santa Justa Elevator or Elevator do Carmo. It connects the lower Baixa district with the upper Barrio Alto (the lowest and highest points in the city). The Lift is decorated in Neo-Gothic style in iron. It was constructed at the end of the nineteenth century by an apprentice of Gustav Eiffel and bears some striking similarities to the Eiffel Tower.

I go back one day to visit the Armazeno do Chiado, an excellent department store with local designers and speak with Claudia Martens in their marketing department.

Construction is still going to repair the damage to the area after the 1988 fire, and she is interested in a magazine promoting Lisbon. She will get back to me by fax, she says.

The Four Horseman of the Apocalypse NOTES:

43.

There are many hotels in Lisbon, and I pick up business cards from several over the next few days. If the magazine is just on Lisbon, there will be an article on the old city, parks, plazas, and hotels.

Another article could be on Estoril-Cascais. It will include the entire Estoril coast up to Sintra. There are a couple of hotels in Cascais that I want to have as well. The Hotel Albatroz is one, so I need to call Mariana Franco on Monday. Other articles will include shopping and entertainment. So far, I have only the Amazons do Chiado to include in this article.

Avenue da Liberdade (the main boulevard in central Lisbon) and Rua Augusta in the Baxia are where the high-end shops are located. Liberdade’s scenic qualities, hotels, shops, theatres and architecture have turned it into an important tourist attraction. It is famous nationally for hosting numerous luxury brands. Nowadays, it is considered the thirty-fifth most expensive Avenue in the world.

Dining was another article I want to include. I sometimes include a section on hotel dining. I also want to have an article on Cafe Society - the Lisbon Way of Life. Ever since arriving in Lisbon, I was drawn to the little cafes in Cascais or downtown Lisbon’s Baixa and Barrio Alto districts. I need to have a closer look at the Alfama and its Fado restaurants and bars as well. I am concentrating on the Old City on this first visit to this eyeopening capital. After returning from Romania, I will be back in Lisbon for another week before catching my return flight home. During that week, I will be staying at the Sheraton Lisboa, which is located above downtown just past Park Eduardo the Seventh. The box of promotional magazines my editor has sent on ahead to each hotel has arrived on schedule and is a great introduction to hand out to advertisers. It shows examples of each article in full glossy colour with large photo spreads and is quite attractive. It is my second or third edition of that particular magazine.

44.

The Four Horseman of the Apocalypse

NOTES:

Alfama

Sao Gorge Castle

The Alfama is a picturesque labyrinth of narrow streets and small squares. During the Moors, the Alfama constituted the whole city, which later spread to the West, to the Baixa neighbourhood. It is a village within a city and comprises narrow streets, tiny squares, churches, whitewashed houses with tile panels, wrought-iron balconies adorned with flower pots, drying laundry, and caged birds. The narrow streets date back to the Muslim era, guided by individualistic rules where public spaces are unimportant. Narrow streets are a mark of the Coran, where little value is given to facades, and much greater weight is given to the interiors of the houses. Due to its proximity to the river, The Alfama is also the home of many sailors. I spend a couple of hours one day getting lost in the steep, narrow alleyways of the Alfama. I often come across a lookout point that affords a magnificent view of the city below. You can walk all the way up to the hilltop citadel of Castelo de São Jorge (Saint George Castle).

Perched above the enticing tangle of streets of The Alfama, São Jorge Castle has eleven towers and a dry moat. I don’t venture to the Castle and choose instead to get lost in the labyrinth of streets below.

Fado, translated as destiny or fate, is a song about sorrow (sometimes happiness) and the many things that affect our daily lives. For the visitor, Fado is a curiosity, but it is a complex expression for the singer, accompanied by complex guitar melodies played by smartly dressed men. It was probably invented by homesick Portuguese sailors who spent long periods away at sea in terrible conditions. There are many Fado bars in the Alfama district.

The Four Horseman of the Apocalypse NOTES:

Rossio Square

45.

I want to find the Sheraton Lisboa Hotel, so I leave the Alfama and cross over into the Baixa. I need to find Avenida da Liberdade. At the northwest end of the Baixa, I come to Praca do Rossio (Rossio Square). This town Centre has been the principal meeting place for locals and travellers since the Middle Ages. Some of the cafés and shops of the square date from the Eighteenth-century. It is also home to the Rossio train station. I find Avenida do Liberdade on the other side of Rossio Square. It is a beautiful boulevard patterned after the Champs-Elysees in Paris. It is ninety meters wide with ten lanes of traffic, divided by pedestrian walkways decorated with gardens. Its pedestrian sidewalks and roundabouts are paved with the traditional Portuguese pavement and are decorated with many monuments and statues that pay homage to influential personalities.

At the end of Avenida da Liberdade, I arrive at the Marquess de Pombal Square. The Sheraton Lisboa is a beautiful hotel. The square is the radiating point for various vital avenues. The Sheraton Lisboa is on Avenida Fontes Pereira de Melo a short distance north-east. It is only fifteen minutes to the airport from the hotel, so it will be an excellent place to stay when I return. This area is one of the most prestigious areas of Lisbon, close to government offices, banks, embassies and entertainment areas. It will be an excellent place to stay when I return. There is a beautiful park behind Pombal Square called Park Edward VII. There are several train stations in Lisbon. I had already found the Cascais line where the trains departed for Estoril and Cascais. I mentioned Rossio Station (a train that connects Rossio with Sintra). But I need to find Entrecampos train station. It is the central railway station in the centre of Lisbon. The leading Portuguese trains, the “Pendular” to the South - the Algarve, and the I.C. to Évora and Beja stop there. It is located just north of central Lisbon. When it is time to depart for the Algarve, I decide to take a taxi from the Hotel Palacio to Entrecampos. Another station on the river below Alfama, called Santa Apolonia Station, is for international destinations.

Pombal Square

46.

NOTES:

The Four Horseman of the Apocalypse Back in Estoril, I am still getting up at six a.m. and running along the promenade to Cascais. It is such a beautiful run, and the weather is always exceptional. I am told it will remain until late December when it might get a little colder right through to February, but that’s it! Then it starts to warm up again.

“Good morning Hemmingway. Did you sleep well?” Alfonso asks, seeing me walking through the lobby. He has now taken to calling me, Hemmingway.

“Yes. I always sleep well when the weather is so beautiful, and there is a good reason to get up,” I answer.

“Where are you off to next,” asks Alfonso.

“My next stop will be Albufeira in the Algarve. There are many municipalities in the Algarve, but Albufeira seems to be the most central. It is also a tourist hot spot which will be good to promote a magazine. My home away from home will be the Sheraton Algarve Hotel. It has a stunning cliff-top location above Portugal’s longest beach called Praia da Falésia, I am told. “ “I envy you, Hemmingway, Alfonso sighs.

“Why’s that?” I ask.

“You get to travel where ever you want.”

“That can be tiring too.”

“You meet all sorts of interesting people.”

“That’s true, but they are not always nice.”

“You stay in wonderful hotels like this one.”

“Yes, this one is nice,” I say.

“And after the Algarve?”

“After the Algarve, I will be heading to Seville. Seville has the hottest summer in continental Europe for all cities, with over 100,000 people. Did you know that Alfonso?”

“No. But I could have guessed,” answers Alfonso trying to look interested.

“The average daily highs in July are 36.0 °C (97 °F).”

“Phew, that is hot!”

“I am glad I’m not arriving during summer.”

“And where will you be residing in Seville?” Alfonso asks.

“I will be staying at the Hotel Alphonso XIII,” I say.

“That sounds impressive.”

“Yes. Doesn’t it. I am looking forward to visiting the Macarena and Triana districts.”

“Flamenco,” shouts Alfonso with a flick of his fingers above his head. “You like flamenco?”

“Do you dance the flamenco Alfonso?”

“Doesn’t every hot-blooded Spanish boy?”

“I thought you were Portuguese?”

“No. I was born in Malaga.”

“Oh, I see.”

The Four Horseman of the Apocalypse NOTES:

47.

I thought I distinctly remembered Alfonso telling me he was Portuguese.

“And then where?”

“Marbella on the Costa del Sol.” Marbella is situated on the Mediterranean between Málaga and Gibraltar Strait and lies in the foothills of the Sierra Blanca. It is one of the most important tourist cities of the Costa del Sol, and throughout most of the year, it is an international tourist attraction due mainly to its climate and tourist infrastructure. In 1954 Prince Alfonso of Hohenlohe-Langenburg opened the Marbella Club, an international resort aimed at movie stars, business executives and the nobility. The resort would be frequented by European aristocratic families with famous names: Bismarck, Rothschild, Thurn und Taxis, Metternich, de Mora y Aragon, de Salamanca or Thyssen-Bornemisza, thereby transforming Marbella into a destination for the international jet set.

“I love Marbella,” says Alfonso dreamily, looking off into the distance.

“You must know this area of Spain well,” I ponder.

“Oh yes. I have been to the places you mention many times.”

“My hotel for my stay in Marbella will be the Melia Don Pepe on the Golden Mile.”

“Good choice” “My last stop on the Costa del Sol will be Malaga, your hometown.”

“And Picassos,” says Alfonso.

Malaga is known as “the capital of the Costa del Sol.” I didn’t have a hotel booked in Malaga, so I would have to find one when I arrive.

“It sounds like a wonderful trip Hemmingway. I wish I could accompany you, but this place would fall apart if I wasn’t here.”

“I understand, Alfonso. I leave Alfonso to tend to his business but looking a little dejected. You better stay here and make sure that it doesn’t fall apart.”

In Cascais, the lights shine through the night. They are not ghosts. They are guides: old lighthouses that once guided fishermen’s boats so they would not get lost at sea.

The first sign of electricity in Portugal appeared in Cascais. The main street of Cascais

48.

NOTES:

Caiscais

The Four Horseman of the Apocalypse is Rua Direita, leading up from the train station to Luís de Camões Square. I enjoyed my morning runs to Cascais and exploring the small streets of the old town. From the Eighteenth-century Town Hall to the Casa Santa Maria and the Guia House, the architecture is magnificent. I loved the walk along the seawall and through the town. The marina had just opened when I visited. Today it is well known for its shops and restaurants and bars.

The Estoril Coast is marvellous, and I didn’t want to leave, but there were many more beautiful places to visit this trip. I made a good start on either a magazine on Lisbon or one on the Estoril Coast or maybe both. Time will tell! On my first visit to Lisbon, I couldn’t have asked for a better place to stay than the Hotel Palacio, I think as I stand looking once again at its exterior from the garden. It set the bar for all the great places I stayed in Europe that fall. If a hotel can make you feel like you belong, then it is a superb hotel.

I return to the hotel and pick up my bag. Alfonso is again at the front desk.

“Time to go, Hemmingway?” he asks.

“Yes. I don’t have to be at the train station for a few hours, so I think I will find a nice park on the way and read some more of Maria’s journal.”

“It’s been a pleasure,” gushes Alfonso with a big smile.

“Likewise, I’m sure,” I agree and carry on out the front door.

“Likewise, I’m sure; likewise, I’m sure. I’ll have to remember that.”

It didn’t take long for me to arrive at Cais do Sodre Station on the small commuter train. I cross over to the Praca do Comercio. This time though, things are pretty different! I see what looks like a turn-of-the-century horse-drawn carriage moving through the Praca do Commercio with Portuguese royalty sitting inside. All of a sudden, two men run-up to the carriage and begin shooting. I know right away it is the assassination of King Alfonso 1 and Prince Royal in 1908 in the Praca do Commercio.

The Four Horseman of the Apocalypse NOTES:

49.

“Damn ghosts,” I mutter.

The queen is standing up in the carriage, threatening to beat the assassins with a bouquet of flowers. The Prime Minister has just shot one killer, and two other assassins are firing at Prince Royal, who appears to be hit and slouched over in the carriage. The king is long gone lying on his back like a pig waiting to be butchered, his fat belly protruding up into the evening sky. It is a scene of brutal carnage but one I have gotten somewhat used to with this talent of mine for seeing the ghosts of essential people.

Suddenly, a new scene appears as the entire Praca do Commercio is filled with the brutality of African slaves being transported off ships docked at the river and marched through the Praca do Commercio. Everywhere I look, there are scenes of white terror against the black man. A thousand ghosts depicting the beginning of the modern-day slave trade.

Chafariz d’el Rey in the Alfama District (of Lisbon) 1570

50.

NOTES:

The Four Horseman of the Apocalypse Enslaved Africans primarily from Argium, Benin, and the Congo are marched in chains to the prison of the Casa dos Escravos before their physical evaluation and auction in the public square. In 1512 the Portuguese king orders that all slaves entering Portugal be required to disembark in Lisbon—heavy penalties and fines awaited those who fail to follow.

The great majority of the Negro population is concentrated in the dock area of Lisbon along the riverfront, where blacks serve as labourers and porters for the burgeoning maritime commerce of the Tejo and its chief port. It is not uncommon to encounter dozens of work-gangs of Negro slaves, many of whom belong to the crown itself. These chattels are chained together and used to transport grain and other commodities among the various royal ships, workshops and storehouses.

“Too many ghosts for me.” I need to get away from the square, and over to the Baixa, I think, and I runoff. A half an hour later….

There. That’s better. My perch in the park looking out over Lisbon is much quieter.

Even the Placio do Commercio looks calm from up here. I settle down into the same park bench I had sat in before and begin to read more of Maria’s father’s journal.

American Intelligence Official 100 tons of Nazi gold ended up in Portugal after first passing through Swiss banks that were helping to disguise its origins. Almost half of this gold was stolen from the treasuries of European countries that fell to the Nazis. Portugal used the same arguments before the Allied Tripartite Commission, which was in charge of recovering stolen gold after the war. American officials tried to pressure Portugal to surrender 44 tons of gold by freezing its assets in the United States and cutting back on wheat exports. But the Salazar regime did not budge. In 1953 the Allies finally gave up, accepting the four tons

The Four Horseman of the Apocalypse NOTES:

51.

Lisbon offered to return and letting it keep the rest.

British Intelligence Official Old trade records tell part of the story: in 1940, less than 2 percent of Portugal’s exports went to Germany; by 1942, that figure had reached 24.4 percent. Portugal sent Germany textiles, boots and food, but it earned most from tungsten, an alloy used in steel, indispensable to the Nazi war machine. ‘’At the height of the tungsten fever, prices in Lisbon increased by up to 1,700 percent.”

Lisbon was also a crucial intermediary for Berlin, bringing insulin and industrial diamonds from Latin America and food from its African colonies and selling Nazi gold in South America. A businessman whose foreign company had a long presence said: ‘’Salazar, the President, was the master of wartime neutrality. He charged extortionary prices.’’

American Intelligence Officer After the war, we demanded that Portugal give back at least 44 tons of looted Nazi gold. But Lisbon instead began to sell off its Nazi bullion secretly through Macao, going to China in the 1950s.

According to a government official involved in supervising numerous shipments, the China-bound gold was flown from Portugal to Macao, and from there, moved across the Chinese border. The former official said some ingots sent to Macao were still embossed with the seal of the Dutch Treasury, which had been plundered by the Nazis; others were marked with swastikas. Many bars were carried from Macao to the Philippines and Indonesia, strapped on people’s bodies, the official said.

French Intelligence Official Looting monetary gold was one thing -- stealing it from individuals, from victims, is another. Both types of gold came to Portugal. But, even if new details spill out of official archives, it may be too difficult to separate the different sources of gold. There may still even be upwards of forty tons of gold hidden somewhere in Lisbon.

British Intelligence Officer Portugal ranked second only to Switzerland for countries that received stolen Nazi gold. A look at the figures is sufficient corroboration. On January 1, 1939, total Portuguese gold reserves amounted to a mere 63.4 tons; throughout the war, these swelled by nearly 600 percent, reaching an imposing 356.5 tons as of October 31, 1945. During this period, Portugal received at least 123.8 tons net in gold directly or indirectly

52.

NOTES:

The Four Horseman of the Apocalypse from the Reichsbank, valued at the time at $139.9 million.

German Intelligence Officer By the spring of 1941, there had been two key changes. One was the Wehrmacht’s occupation of the Balkans. The second was the mammoth upsurge in the Wehrmacht’s need for finished goods and raw materials vital to the war effort—including textiles, boots, foods, and, of course, the munitions component tungsten—in preparation for the massive Russian campaign. Since the price of tungsten on the Portuguese open market had skyrocketed by some 1,700 percent within fifteen months, the German Reich was able to cover its requirements only by a considerable increase in outlay. The means of payment was the gold it had seized from Austria, Czechoslovakia, Belgium, the Netherlands, and Norway. As a result, the Yugoslav state bank, up until then a significant recipient of the looted gold, could not continue these services.

American Intelligence Official By 1942, both the Americans and the Swiss authorities had received first reports about concentration-camp atrocities. Even if those trading in the Nazi-seized gold may not yet have known about the extermination, the prudence of the Portuguese suggests they were aware of the gold’s ill-gotten origin. But the Portuguese wished to obtain gold from Switzerland and were unconcerned about its provenance. They wanted the Reichsbank to sell the gold either to the SNB or to Swiss commercial banks regularly. Subsequently, the Reichsbank deposited the Swiss Francs acquired in this way in a Banco de Portugal account with the SNB. The Banco de Portugal, in turn, used these Swiss francs to purchase gold from the SNB. Despite the additional expenses associated with using the Swiss banks as middlemen, the roundabout route had a decided advantage: from the legal point of view, Portugal apparently became the lawful owner of the gold since it had been procured from the SNB normal channels.

Swiss Bank Official The problem of where to park the freshly acquired Portuguese gold was also solved quickly using the Swiss banks. The Banco de Portugal maintained three parallel accounts with the SNB: accounts A, B and C. Account A was used to deposit the gold transferred in payment for the purchase of Escudos by the SNB from the Banco de Portugal. Account B was reserved for the gold that the Banco de Portugal financed with the Swiss Francs supplied to it by the Portuguese commercial banks, which had also begun to sell Escudos to Swiss private banks in exchange for Swiss Francs. Deposited in account C was the gold

The Four Horseman of the Apocalypse NOTES:

53.

transferred on orders from Berlin directly by the SNB to the Banco de Portugal account in Zurich. The Swiss commercial banks then closed the dealing circle by selling the Escudos it had acquired in this manner to the Reichsbank in Berlin in payment for gold.

Allied Official Although we took a dim view of this activity, we chose to turn a blind eye to neutral gold trafficking throughout 1942. In January 1943, however, we decided on a more challenging, unmistakable signal: we issued a declaration that we would do whatever is necessary to clamp down on this trade and declare dealings with assets looted by the German Reich null and void.

Although the British Embassy in Lisbon saw that this statement was published in several Portuguese papers, the Salazar government preferred to play deaf. The profits from the gold trade, including the former Belgian central bank holdings, were too consequential an enticement to resist; during 1943, at least 20.4 tons of the former Belgian reserves found their way to coffers in Portugal.

American Official In June 1953, the agreement the Allies grudgingly signed stipulated the restitution of just 4 tons of gold along with a payment of 175 million Escudos, or some $7.6 million (based on 1939 exchange rates). The final result achieved by the Allied negotiating team over seven years of haggling appears even more catastrophic because the American negotiators had in their possession a memo from the American Office of Strategic Services (OSS) dated February 7, 1946, stating that the Portuguese had actually obtained 124 tons of Nazi gold, and not 44. The states that had served as fences for Nazi loot confirmed the effectiveness of the Portuguese tactics in the negotiations with the Tripartite Commission. It was worth wasting time and waiting for a favourable turn in international politics. During the Cold War, Portugal’s membership in NATO and the indispensable strategic role of the Azores Islands in U.S. geopolitical planning weighed far more heavily in Washington’s considerations than the question of compensation for the gold illicitly garnered by the Portuguese. American Under-Secretary of State Stuart Eizenstat could not help remarking that “Negotiations with Portugal were even more protracted [i.e. than with the other Neutrals—A.L., A.S.], with gold discussions dragging on into the 1950s, because of Portuguese resistance.

British Official 124 tons of Nazi gold, and no one knows officially where it went. Portugal was very shrewd at not only getting its hands on the gold but keeping it for itself after the war

54.

NOTES:

The Chase

The Four Horseman of the Apocalypse ended.

Then, I hear a commotion to my right and lookup. Three men are coming towards me. One, I recognize as Maria’s butler from La Casa Cor-de-Rosa. They don’t look too happy, so I decide I better make a hasty retreat.

“Mr. Barnes. We want to talk to you,” one of them yells as I pick up the pace.

The three men are now in hot pursuit.

I need to get away from this lookout and mingle with the crowds down below on Avenue Liberdade. I jump a railing and stumble down a few feet to Rua das Tapas. The sheer shock of being pursued makes me explode up Rua das Taipas until I roar into Lisbon City Centre Baixa, flying past an obelisk and then scampering further along the street past the Hotel Alegria. I lunge backwards to see if I am still being pursued, and sure enough, three men vault around a corner and race towards me. One of them rams into the obelisk, and another has to sidestep a garbage can with all three shouting at me as they sprint along. They sure are angry.

I tear past a Patek Philippe shop and finally escape to the right down Avenue Da Liberdade. Unfortunately, it isn’t very crowded, so I am in full view when my three assailants charge around the corner. I need to make them think I am heading to Appoliana Train Station rather than in the opposite direction. If I can evade capture and who knows what fate they have in store for me, by ducking out of sight in the labyrinth of tiny narrow streets in Alfama, I can then double back to Liberdade and gallop up the hill to

The Four Horseman of the Apocalypse NOTES:

55.

Entrecampo Station, if it works. I pass tv. Gloria and accelerate even more towards the Alfama. Good thing I’m a jogger. I wonder how my pursuers are holding up. I then dodge to the left as far as Rua Sao Jose, with the beautiful smell of spices infiltrating my nostrils.

I backtrack down to Liberdade and come out at Praca dos Restauradores, a famous

collection of restaurants. I evade not falling into a fountain but lose my footing and slip on the wet tiles tumbling to the ground; luckily, I am unhurt except for the bruise on my behind where I fell. I pick myself up, bolt forward, and don’t even try to look back until I reach Praca do Rossio. They have vanished, and I have escaped, but I still continue to beat a hasty retreat to be sure down to the Praca da Figueira, a small square. I swing inside the Mercado da Figueira, an open-air market, the chatter of shoppers reverberating through my head and penetrate deep into its interior, coming out a back entrance, scampering back up Rua da Palma.

There has been no sign of the three men for a while, but I am not going to take any chances, so I plow on up the Avenue and hang a left at Avenue Nova do Desterro and hug the buildings closely until I reach Jardim Braancamp Freire, where I flatten myself behind a tree. I don’t flinch for quite a few minutes until I catch my breath, the hot sun beating down on my brow. Then, I beat a hasty retreat up Rua do Passadico, past the Hospital Santa Maria before vanishing down Rua Alexandre Herculione, where the sound of automobiles plays an Ode to Modern Day Transportation in my ears. Soon, I am hurling along Avenue Liberdade again, in the opposite direction, at a good sprint on my way to Praca Marques de Pombal. Once I see Parque Edward VII, I muster all the force of a mighty tornado because I know Entrecampo Station is not far away. I scoot up Avenue Fontes Pereira de Melo until I reach Avenue Republica. About ten blocks later, past Jardim do Campo Pequeno, I arrive at Entrecampo Station exhausted but intact. I rally at the mere thought of being pounced on by those three marauders. I would have wiggled and yanked and yelled and yelped, but when I hear the roar of a mighty train and then another and then another, I forcefully retreat inside the station vanishing from sight.

56.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

57.

Chapter 3 – Chariots of Fire

That was close. I quickly buy a ticket for Albufera and dash along the platform to catch the train that is already pulling out of the station. Boy, that was close, I think. I almost missed it. That was a lot of running. I doubt my assailants are in good enough shape to follow me, but I wasn’t going to wait around to find out. I wonder what they wanted. It must be something to do with this journal, I think. I had better hold on to it tightly until I figure this whole thing out.

Once onboard the train, I decide to walk from car to car to make sure there are no more surprises. Halfway through the third car, a man rushes towards me, not watching where he is going and crashes into me, sending my one carry-on bag toppling to the floor.

“Mr. Barnes, are you all right?” the man asks.

“Alfonso, what are you doing here?” I exclaim, surprised to see him.

“Three men came to see me at the hotel, and they wanted to know where you were.

I told them you had left. They persisted in knowing how and where. I didn’t want to tell them you were going to Entrecampo, so I told them you were leaving for Madrid via Appolina Station,” says Alfonso. “They said if they didn’t find you, they would come back and deal with me later. So I figured I better get out of Dodge. Isn’t that what you say in America?”

58.

NOTES:

The Four Horseman of the Apocalypse “Something like that,” I mutter, grabbing Alfonso and pushing him into a window seat next to me as I sit down beside him.

“What’s Dodge like, Mr. Barnes?”

“Dodge, oh, it’s not that nice now. It was popular back in the days of the Wild West.

Dodge City, it is called.”

“I’d like to see Dodge City one day,” replies Alfonso confidently with his hands folded, looking straight ahead as if dreaming about the Wild West.

“You were right,” I confirm.

“I was?”

“Yes. Maria does have some secrets, or I should say her grandfather has some secrets.”

“I knew it. I just know there are lots of secrets in that family,” bubbles Alfonso.

“One of the three men was Maria’s butler. They caught up to me at Alcantra while I was reading the journal. I just finished running across half of Lisbon, trying to escape from them. Do you know who the other two men are Alfonso,” I asked?

No. I have never seen the other two before. Probably part of the Company.”

“The Company?”

Yes. The Banquo Espirito Santo, it is referred to as the Company.” Alfonso twists himself around towards Barnes. “Hemmingway, do you mean to tell me you didn’t do your homework before you went to see Maria? Well, I never. Your grandfather will be rolling over in his grave. I do say.”

Alfonso was right. I hadn’t looked into the Espirito family before I went to see Maria because I didn’t realize the scope of what her story might be. She could have been a senile old woman with nothing of much importance to contribute, but apparently, I was wrong. Oh well, old boy, better luck next time.

“You’re right, Alfonso. I should have done due diligence. I will look into the family background once I reach my next destination in the Algarve, especially after what I discovered on my second look at Maria’s grandfather’s journal.”

“You discovered something?” Alfonso jolts forward with anticipation.

“Yes. Seems there may be forty tons of gold hidden somewhere in Lisbon.”

“Gold?” shouts Alfonso.

“Don’t be so loud,” I roar back.

“Gold?” he reiterates in a soft, almost inaudible voice.

“Nazi gold,” I whisper back.

“NAZIS?” he shouts again as I look around to see who else is in the car.

“I’m sorry, Hemmingway. I will be quiet, but Santa Maria on my mother’s grave, where did it come from?”

“During WWII, Salazar laundered tons of stolen Nazi gold through Portugal which the Nazi’s stole from the treasuries of countries it had invaded and also from the personal belongings of six million Jews they had exterminated in the death camps.”

The Four Horseman of the Apocalypse NOTES:

59.

“Santa Maria.”

“You said that. Who’s Santa Maria?”

“I don’t know. It’s what all Spaniards say when they get excited.”

“Oh.” “I have a feeling I’m going to say it many more times.”

“No one knows what happened to the gold. Some of it has turned up here and there, but the bulk of its whereabouts is still unknown.”

“Mr. Barnes, don’t you think I should have a code name like you?”

“What’s my code name?”

“Hemmingway.”

“Well, that’s original. You don’t think the bad guys will be able to figure that out a mile away, especially when they know I am the grandson of Jake Barnes?”

“What about Silver?”

“No. Just gold.”

“No, I mean, what about silver.”

“What about silver,” I ask.

“My code name. Don’t you think that would make a good code name? Hi, ho Silver away. You know, the Lone Ranger.”

“Silver was the Lone Ranger’s horse.”

“Oh, well, doesn’t matter, all part of the family.”

“My dog would like Silver,” Alfonso adds.

Just then, the sound of feet running across the roof of the train car above spurs them into action. Hemmingway and Silver jump to their feet.

“Here we go again,” I cry.

Hemmingway runs in the direction he entered. Silver runs in the opposite direction. When Hemmingway gets to the car’s door, he opens it and goes into the next one but not before turning to see where Silver went. When Silver reaches the door, it is open, but the train’s movement slams the door shut right in his face knocking him out cold, and he falls backwards into the aisle unconscious. Hemmingway gives a sigh, looks upward and leaves the car. Soon, everything turns dark as the train goes through a tunnel. Hemmingway then comes back into the first car and rushes to Silver’s side as he gradually regains consciousness.

“You’ll be all right. You just got hit in the face by the door,” Barnes says as Silver begins to come around and pull himself up.

“Good thing it wasn’t one of those thugs, or I would have beaten him up badly.”

“I’m sure you would have Silver,” I console, helping him back up on his feet.

“What about the bad guys,” asks Silver looking around anxiously?

“Whoever they were, they weren’t brilliant. I heard three thumps on the ground, one, two, three as we went through the tunnel.”

“I forgot. That’s right. There is a tunnel not far from the station. It’s an overpass,

60.

The Four Horseman of the Apocalypse

NOTES:

Elevator to the beach

Falésia Beach

actually.”

“Come on, Silver, you better come back here and rest for a while.”

“He’s calling me Silver. I’m a double agent. Santa Maria, my dog, will be so proud,” Silver says to himself as he follows Hemmingway back to their seats.

After a two-and-a-half-hour train ride from Lisbon to Albufeira in the Algarve and no further sign of their assailants, Alfonso bids Barnes farewell at the train station wishing him good luck and heads off home to Malaga for a three-week vacation. Before departing, he tells Barnes of an excellent hotel to stay at in Malaga. The Tryp Hotel.

To get to the Sheraton Algarve Hotel, the Algarve’s iconic cliff-top retreat where I will stay for the next week, I take a taxi. The diversity of beaches around Albufeira is extraordinary, ranging from pine tree settings and unique cliff faces to breathtaking rock formations and never-ending sandbanks. The Sheraton Algarve is situated on a cliff above Falésia Beach. The longest stretch of golden sand beach in Portugal, Praia da Falésia is renowned for its stunning amber-red sandstone cliffs that rise majestically from translucent blue Atlantic waters. A pine tree forest crowns magnificent cliff-tops and serves as a backdrop. The hotel is a ten-minute drive east of Albufeira. I contacted Ralf Meister, the Director of Sales and arranged accommodation for one week from September 13 through the twenty-first. It is hardly enough time to see the Algarve, but I will at least explore the vicinity around Albufeira. It turned out to be a great choice. The location is breathtaking. The beach below is by a panoramic elevator down to a wooden pathway offering exclusive access to the resort’s beach club. Shaded sunbeds provide shade for guests. You can loll about or walk along miles of sandy beaches to the next town.

Located throughout the lushly landscaped grounds, the Sheraton Algarve Hotel offers guests a selection of six swimming pools. Several dining options are available as well.

The famed Pine Cliffs Golf Course is perched atop spectacular cliffs. This hotel offers its visitors one of the most iconic backdrops in Europe, with sandstone cliff faces and inspiring views of the coastline.

The Four Horseman of the Apocalypse NOTES:

Hilltop dining

61.

“Hello, Mr. Barnes, welcome to the Sheraton Algarve,” greets a well-dressed man standing in the lobby as I enter.

“Hello,” I reply.

“My name is Ralf Meister, the sales manager.”

“Your hotel looks beautiful,” I offer, complimenting him. “I’m looking forward to my stay.”

“I would like to invite you to dinner tomorrow night along with a few other guests.

Can you come?”

“Of course. I would be delighted,” I confirm.

“Shall we say seven, in our dining room, right here,” he enquires, pointing to a doorway behind and to his right.

“I will be there.” I was feeling safer now than I had felt all day.

“Until tomorrow night then,” he repeats and quickly departs.

On my first evening in the Algarve, I decide to go into Albufeira, located about six miles away along the beach. I take the panoramic elevator down to the wooden pathway and walk out to the beach. Albufeira is to the west. I start running.

Albufeira is a fishing village situated on the Atlantic Ocean. It calls itself “the gateway to the Algarve.” The Old Town sits on the seafront and is predominantly a pedestrianonly area. Street artists entertain the crowds, and there is a good choice of restaurants, bars and shops. There are open-air discothèques, and many bars have a live band every night. The most famous are Snoopy Bar on the seafront and The Vertigo on the central square. Measured by the number of bars and restaurants, the Old Town is about four times the size of The Strip.

When I arrive at Fisherman’s Beach, I notice that all the buildings are white-washed and facing the ocean. The sand comes right up to the buildings in some places or to a concrete plaza in other areas. On the internet, I see there is now a concrete pier going out into the ocean. I do not recall it being there when I first visited. From a viewpoint overlooking Fisherman’s Beach, I can see the entire town to my right and the imperial blue Atlantic to my left. It is a gorgeous sight. Now, escalators go down to the stores below, but in 1999 there was just a roadway with a sand embankment. Considerable development has taken place in the sixteen years since my visit.

A magazine on the Algarve looks like a distinct possibility. That night, I return to my hotel and continue reading the journal.

62.

NOTES:

The Four Horseman of the Apocalypse

The Godfather of the Esporito Santo Family Portugal adopted the gold standard in 1854 to put an end to the destructive consequences of monetary instability. A new generation of businessmen was born. Thanks to their achievements, entrepreneurial spirit, understanding of the importance of economic expansion, and social concerns, they would be decisive for the country’s modernization that was possible to attain. One of them was José Maria do Espírito Santo e Silva.

“The life of an exchange dealer is a busy one,” sighs José Maria do Espírito Santo e Silva as he sits at his desk in his modest home at Travessa dos Fiéis de Deus, 72 in Lisbon one afternoon in 1869.

After getting married that same year, he moves to Travessa André Valente, 28.

On a Street in Lisbon.

“What is it you do,” asks a friend he meets one day on the street to Jose?

“I’m involved in the purchase and sale of bonds, in the transaction of domestic and foreign negotiable instruments, in cash loans, in foreign exchange transactions, and particularly in the wholesale of Spanish lottery.”

“You are an important man Jose. You are part of the select group of the most important wholesalers of the Spanish lottery in Portugal and Brazil, therefore keeping close ties with dealers from Madrid, Badajoz, Pamplona and Galicia,” praises joyfully another man passing by and hearing the conversation.

1874: Jose’s home “It seems all I do is write letters these days,” Jose sighs as he sits at his desk.

In the archives of business correspondence sent between 1869 and 1883, more than two thousand five hundred letters bear witness to the importance of his involvement in this business.

The Four Horseman of the Apocalypse NOTES:

63.

“I’ve been trying to think how I can get an advantage over my competition. I see three ways. Be close to the center of political life, a source of immediate news; to receive information from abroad quickly; to manage the transmission of the news to other business people skillfully.”

“You have only been in business for eight years, so that is pretty short,” consoles a friend.

“It is now 1877, and I need to be thinking of transitioning closer towards banking services if I want to get ahead,” longs Jose.

“You have a good life. You travel a lot,” continues his friend.

To receive information from abroad, you needed to travel.

“Time for my annual trip to Madrid,” Jose concludes as he puts on his hat and coat and leaves his home with his friend.

Outside on the street.

“You have a pleasing address. You live at Calçada do Combro, 52,” reminds his friend.

“Next year, we’re moving to Travessa dos Inglesinhos, 35,” Jose brags as they walk off down the road.

“I always meet with my business partners in Madrid. I usually buy a little gold and sell it back home for a 2% gain to offset expenses. Besides Seville, Madrid and Galicia, I often go to Paris. I usually stay longer in Paris. Next year is 1878. I shall go to Paris for the whole month of September because the Industrial Exhibition will be on.”

On Monday, November 9, 1880, José Maria do Espírito Santo e Silva open his new exchange house, located in the area where almost all banking institutions of the capital have their headquarters at the time. In a strategic place in Lisbon’s financial district at

64.

NOTES:

The Four Horseman of the Apocalypse the end of the 19th century, it had two doors that opened to numbers 11 and 15 of Rua Augusta and another to number 95 of Rua Nova de El Rey, also known as Rua dos Capelistas (present-day Rua do Comércio).

Inside his New Exchange House

“My own exchange house,” Jose chimes as he stands proudly inside his new establishment. “I’ve leased it for five years at the cost of 250$000 réis.”

One thousand Reis is worth about fifty cents.

His first customer walks in the door.

“I would like you to meet my clerks Luís Bregante and José Norberto da Silva Pinto.

They each receive 4$500 réis a week. Ezequiel José Garcia also works for me, “Jose chortles, introducing his staff to their new customer.

The 1870s and 80s provide Espírito Santo e Silva with excellent opportunities to reproduce the capital invested very quickly, undoubtedly because of his natural aptitude for business, alongside his seriousness and professionalism, which earn him respect and friendship with business partners.

“I refuse to take part in deals which seem to be less than honest to me. I do not want to “serve as someone’s tool for any sort of wrongdoing.”

An old friend comes to visit.

“Life is good for you, old friend.”

“The market trusts my businesses, and I do not lack any support from the banking sector. I have lines of credit backed by bonds from several institutions: Caixa de Crédito Industrial, Banco Lusitano, Banco Comercial de Lisboa and Banco União Portugal e Brasil.”

Which bank supports you the most?”

“If you want to get more information about my business, please refer to the latter

The Four Horseman of the Apocalypse NOTES:

65.

institution,” he hints proudly.

“Your businesses are solid, well-managed and profitable; therefore, they grow, you have access to credit and a strong reputation in the market. I’m proud of what you have accomplished, Jose,” his friend remarks.

“I’ve become so successful that next month on February 23, 1884; I will found an unlimited liability firm under the name Beirão, Silva Pinto & C.ª with a share capital of 150:000$000 réis.”

“What’s the purpose of the new company,” asks his friend?

“The corporate purpose of the company is “buying and selling our own and third parties’ negotiable instruments, foreign and domestic public funds, banking services, and generally all typical business transactions of this type of establishment.”

“But you have always been a sole trader.”

“In the previous fifteen years, I have worked as a sole trader. Now I will associate myself with other businessmen and owners to become a banker. I have a 100-conto share in the capital of the firm, while João de Oliveira Casquilho, my business partner, holds 50 contos.”

“We both have the status of capitalist and unlimited liability.”

“For the first time in my life, I now have the time for other projects.”

“The fact that you do not have to be involved in the exhausting daily routine of the Banking House should be noted because it provides you with the conditions to expand your activities into other business fields that may turn out to be quite profitable,” praises his friend.

“That’s quite true,” agrees Jose. “You are brilliant.”

March 1889

Praca do Commercio

“I have decided to leave the company that I founded five years ago and have it dissolved,” Jose confides to an old friend on the street.

“I assume that differences of opinion with the managing partners, perhaps caused

66.

NOTES:

The Four Horseman of the Apocalypse by the wrong direction the Company was heading, led you to your decision? You told me before that the firm’s irrecoverable debt amounted to 23 contos, which you will have to state in the deed that dissolves the Company.”

“Actually, I want to have capital available for other businesses, especially those that I have undertaken since 1875 in real estate, buying buildings that afford guaranteed income such as the one on Rua do Sol (at Rato), which I acquired for 802$000 réis and provides me with an annual income of 90$000 réis.”

“Does this represent an abandonment of the financial sector or just the lending of money?”

“On the one hand, my participation in real estate and other transactions represents both my own investment and the funding of third parties. On the other hand, over the years, I have been the guarantor of bank loans received by exchange dealers from Lisbon and provided guarantees to various transactions.”

“With large-scale urban expansion occurring in Lisbon, the entrepreneurial spirit of the successful exchange dealer can be directed to the real estate business to which, in one way or another, you will probably be directly connected to during much of your life knowing you, either by investing yourself or by financing the projects of other investors,” his friend pontificates.

Later to some friends.

“So I founded the firm Silva, Esteves, Lopes & C.ª, which was the “only Company that stood out in real estate development... and got projects for eight buildings and singlestory houses for 30 tenants approved in 1879. In 1880, I even financed a construction company of which I was a partner.”

Rua do Sol (at Rato)

The Four Horseman of the Apocalypse NOTES:

Rua Garrett, Chiado Passeio Público [Public Promenade]

67.

In the Following Years.

“I continued in the construction sector. I was less interested in other businesses. In 1879 or 1880, I moved to Rua Formosa (present-day Rua do Século), 17-2º, where I remained until 1883. In 1884, my residence was Rua Garrett in the Chiado, 47-2º and in 1887, number 62.”

“You are certainly doing well for yourself, Jose,” congratulates an old friend.

“I have sold all the plots of land and the houses that I had built in Campo de Ourique, and am shifting my attention to another urban area of Lisbon, a city that is expanding in the place where the Passeio Público [Public Promenade] exists. It will be called Avenida da Liberdade.”

Years later, in 1888, on Avenida da Liberdade

Avenue Liberdade

“Now that you have built Avenue Liberdade Jose, the grandest avenue in all of Europe, you should have a house on the avenue.”

68.

NOTES:

The Four Horseman of the Apocalypse “I have just acquired a few plots of land on Avenida da Liberdade contracting the construction of a four-story building at the price of 67:000$000 réis, with the clear indication of the work being completed by May 1890.”

“That’s ambitious, but you will succeed.”

During 1889

“Are you going to build more houses on Liberdade Jose,” asks another friend as they pass on Liberdade on a sunny afternoon?

“I am building two additional buildings, one on Rua Rosa Araújo, where I invested 35:000$000 réis, and the other on the eastern side of the Avenida da Liberdade with an estimated value of 31:000$000 réis.”

In Jose’s Office “What is the largest real estate transaction you have been involved in, in Lisbon,” asks a reporter one day for the local newspaper?

“My last two ventures in this sector were not my first, but in terms of value, they were the largest real estate transactions in which I have been involved up to this point.”

On the Street “I’m so sorry to hear of the passing of your daughter Jose,” relents an old friend.

Luísa Cândida do Espírito Santo e Silva, was born in 1872 and she passed away in March 1888.

“Yes, it is unfortunate, the poor child. Only sixteen, I still have one more,” replies Jose.

Between 1888 and 1892, he resides at Rua dos Anjos, 213.

His first wife, Maria da Conceição Silva, passed away on July 17, 1891. In 1892, as required by law, he enters into an agreement and obligation deed with his surviving

The Four Horseman of the Apocalypse

69.

NOTES: daughter, Maria Justina do Espírito Santo e Silva, born in 1871, and is his only and universal heir. When the time comes, half of all his assets will be signed over to his daughter.

From 1892 until 1897 “Good to see you, Jose. How is Portugal’s leading businessman,” asks an acquaintance on Liberdade one afternoon?”

“I am now living at Avenida da Liberdade, 157 in the building that I built,” he boasts.

“It is the finest street in all of Lisbon.”

“It sure is, Jose.”

1897 Later, in 1897, Jose and his daughter decide to divide their property which is then valued at 490 contos, with 60% of that amount corresponding to the value of urban buildings. By a deed dated December 16, the full ownership of half of the assets was transferred to his daughter Maria Justina, who on the same day signs a prenuptial agreement with a medical doctor, Custódio José Moniz Galvão. To implement the contract, he hands over to his daughter eleven urban buildings, the most important of which is located at Avenida da Liberdade, where he has lived up to that moment.

“I hear you are moving, Jose,” enquires a friend one day on Liberdade.

“Yes, I am settled now at Rua Esquerda do Paço do Lumiar, 39, where I have exploited a small farm that includes wine production. Without needing to conduct business activities in banking houses, I have been able to acquire and construct buildings throughout the city.”

A few days before the division of property, he had negotiated the purchase of an

70.

The Four Horseman of the Apocalypse

NOTES: estate named Quinta do Ministro [Minister Farm] and the courtyard in front of the Casa Inglesa at Paço do Lumiar for 2:070$000 réis, a building that was not included in the inventory of property.

In 1891, a severe financial crisis had erupted in Portugal. According to some, it constituted an “important turning point in the evolution of the Portuguese economy [that] ended the first period of significant economic growth and opened a period of stagnation that lasted until the years between the two world wars.

After periods of some prosperity, the spectres of the past return: suspicion about the ability of the Government to settle its commitments, fiscal imbalance, bank runs and political crisis. The fall of the Brazilian exchange rate, the severe problem of the Baring Brothers (traditional bankers of the Portuguese Government), the consequences of England’s ultimatum and the imbalance of the balance of Casa Inglesa at Paço do Lumiar

payments, coupled with an attempt to overthrow the monarchy, in early 1891, were some of the events that projected a gloomy forecast over the stability of the economy at the dawn of the new decade and would contribute to its rapid deterioration. The creation of new banks would now be dependent on approval by the Government.

Public intervention in the financial sector was reinforced, starting in the aftermath of the 1876 crisis. The hundred years that followed would witness an increase in the public role.

“How did you manage to get through the difficult times Jose,” asks another friend?

“I Focused on other activities and avoided as much as possible the effects of the turbulence experienced by the Portuguese society, particularly by the financial sector, I successfully surpassed those troubled times without being particularly affected by the negative consequences that befell so many other businessmen of my time.”

The Four Horseman of the Apocalypse NOTES:

71.

The founder of the Company, Espirito Santo, was very successful. He understood the factors involved with being successful in the banking business. He switched to real estate investment which had a more significant guarantee of profit but still was involved in private banking services as a guarantor for other real estate projects than his own.

Unless one of his offspring messed things up later, they must have been the wealthiest and most connected family in Lisbon by the Second World War. The development company, the first Espirito Santo, was a partner in built the Av Liberdade and the construction company he was a partner in built several of the buildings on Liberdade that are still there. They owned lots of real estate all over Lisbon by 1900 as well.

I can also see a reason why Salazar was so eager to hoard so much gold. Besides making Portugal rich, it bolstered up the public’s confidence in the Government, which at many times throughout Portugal’s history had been sadly lacking and caused no end of problems for successive governments, including revolts and assassinations and overthrows.

I was up early the following day and, after a delightful breakfast, took the elevator back down to the beach. This time I headed east. The twelve-mile run to Albufeira and about the night before must have done me some good because, before long, all I felt like doing was running again along the hard-packed sand next to the imperial blue Atlantic with the radiant sun beaming down on my forehead. I felt fantastic. I love to run, but you have to keep it up. I now run twenty miles a day, consistently, wherever I am, but there is something about the warm Algarve sunshine that makes a body very relaxed. With the theme song from Chariots of Fire playing in my head, I glide past the sandy cliffs with ease and gaze at their pine tree crowns reaching high above me up into the sky.

Dead ahead, I can see a development of some sort. As I get closer, a sign tells me I am at the Roman ruins of Cerro da Vila, and then I see a marina coming into view up ahead.

The marina is in the center of a small harbor. It and the buildings have been designed with opulence in mind, and it is larger than it looks as I traverse its perimeter. It is ringed by big hotels, luxury holiday homes, expansive casinos, and numerous restaurants and bars. It might have been several resorts side by side, I wasn’t sure. Finally, I arrive at the Vilamoura Marinotel, stop and go inside.

72.

NOTES:

The Four Horseman of the Apocalypse Vilamoura is an unincorporated area. It makes up one of the three corners of what is known as the Algarve’s Golden Triangle. It is one of the largest single tourist complexes in Europe, with about two thousand hectares of land.

There are other hotels, the Hotel Atlantis Vilamoura, the Dom Pedro, the Hotel Vila Gale, and the Ampalius. It is truly unique. If I can get all these resorts interested in a magazine on the Algarve, it will surely come together quickly.

Vilamoura opened in 1966 and was developed by a company called Lusotar. It has six golf courses, the largest marina in Portugal (inaugurated in 1974), two beaches, a lawn bowling club with two grass greens, a tennis centre, a sports club, a shooting club, five Star and four Star hotels, tourist apartments, self-catering villas, night-clubs, an international casino with glamorous shows, and an excellent riding school. Lusotar was acquired in 1996 by Quinta do Lago’s Andre Jordan.

When I return to my hotel later that afternoon, I begin following up. Everything is done by fax in 1999, before computers. Too bad! I contact Mr. Paulo Neves, Director of Tourism for the Algarve, by telephone and tell him about my plans for an Algarve magazine. Paula Silva Cunha says he will send me a press kit with helpful information and contacts. I then contact Mr. De Silva at Lusotur, who must have been in charge of marketing at Vilamoura. I can see from my letters that I was helter-skelter with my marketing. I wasn’t trying to sell the articles to the tourist bureau in the Algarve, but I was planning on marketing them in the Algarve at $3.95 U.S. a copy. The tourist bureau will purchase them for two dollars a copy, I hope. I want to include a twenty-four-page article on the towns of the Algarve, and I need slides and text to prepare it. I was hoping to print 100,000 copies the first year, which I now know was highly optimistic. 40,000 would have been more realistic. The year 2000, and Millennium Algarve was coming up. The tourist board, backed by many public and private organizations, had planned a whole range of events. Knowing this must have led to my optimism.

I also send a fax off to Mr. DeSilva of Lusotar. I decide I will distribute the magazine in London, England, and the U.S. market. There is a large concentration of ex-pat Brits in Vilamoura, so London will be a good market. The magazine’s shelf life will be three years (again, overly optimistic, one is normal).

It is time for dinner. I head down to the dining room.

The Four Horseman of the Apocalypse NOTES:

73.

“Good evening Mr. Barnes,” the manager notes as I enter.

He is standing around a well-appointed table with some other guests. I am the last to arrive.

“Sounds like you had a busy day,” the manager confirms to me.

“Yes. I did,” I agree, surprised.

“Andre Jordan called me to see if we really did have the grandson of the famous Jake Barnes staying with us,” he adds.

“I just faxed Mr. Jordan,” I babble. “That was quick.”

“Let me introduce you to everyone,” suggests the manager.

“On my right, this is Mr. Carvalho and his daughter Sonya.”

“Hello Mr. Barnes,” I’m very interested in getting to know the grandson of the great Jake Barnes,” emphasizes Mr. Carvalho. I wonder who Mr. Carvalho is looking all fit and handsome. With his dark skin, he may have come from one of Portugal’s African colonies.

“Hello, Mr. Barnes,” his daughter remarks demurely.

She couldn’t have been more than twenty-three and very beautiful and reminded me of a young Naomi Campbell.

“Only the four of us,” I ask?

“The others cannot be down from Lisbon before Friday or Saturday, I’m afraid,” apologizes the manager. “We’ll do it again before you leave.”

“That’s okay, Mr. Barnes,” rescues Carvalho, “It will give us a chance to get to know each other better.”

“Are you really the grandson of the famous Jake Barnes,” Sonya asks as we all take our seats?

“Yes. I’m afraid so. For better or worse, as the saying goes.”

“Something I find puzzling,” queries Carvalho, “wasn’t Jake Barnes….”

“Impotent. Yes. Jake was,” I admit, finishing his sentence.

“Then how,” Carvalho adds.

“Was I born? Good question, Mr. Carvalho. The character of Jake Barnes and the real Jake Barnes are two different people. The real Jake Barnes, whom Hemmingway modelled his character, Jake Barnes, after in his book, wasn’t impotent. My grandfather was mad at Uncle Ernest for making his character impotent in his book. He had to spend the rest of his life proving to people that he wasn’t impotent. That caused a lot of problems, I do say. Hemmingway was very young when he wrote The Sun Also Rises in 1926, so my grandfather had to live with it for a very long time.”

“How interesting, Mr. Barnes,” reflects Carvalho.

“Have you too had to live up to it, Mr. Barnes,” asks Sonya smiling.

“That’s not the sort of thing you ask someone, my dear,” where are your manners,” scolds her father.

“One might think I was trying to live up to it if you look at my love life, but no to an-

74.

NOTES:

The Four Horseman of the Apocalypse swer your question, at least not consciously,” I reply. She continues to smile.

“My father saw you jogging into Albufeira on the beach last night,” Sonya alludes.

“Yes. I run twenty miles a day.”

“That’s impressive, Mr. Barnes,” Carvalho adds.

“I try to keep a balance in my life between running and journalism.”

“Does it work,” the manager asks?

“Yes. The running keeps my mind sharp as a tack. The extra oxygen is what does it.

Add to it the sunshine and not overeating, and it works, “I profess, “at least for me.”

“We run a lot in Africa,” boasts Carvalho.

“What brings you to the Algarve,” I ask?

“Oh, we’re here to open a new museum on slavery in Lagos,” informs Sonya.

“I represent a group of six African nations who had come together to try to get repatriation from Portugal for the wrongs it did to our people when it started the slave trade in the fifteenth century,” Carvalho adds.

“Noble cause. The fifteenth century was a long time ago. Wasn’t that the Knights Templar and Henry the Navigator who did that,” I ask?

“The Order of Christ to be exact, Mr. Barnes. Formerly the Knights Templar. Who’s counting years, Mr. Barnes, when you consider the damage the slave trade did to the African people, for centuries after, I might add,” continues Carvalho.

“What brings you to Portugal, Mr. Barnes,” Sonya asks, trying to change the subject seeing her father getting a little agitated.

“Me. I’m here scouting out potential travel magazines in Portugal and Spain. That’s what I do. My editor sends me to where ever; I never know quite where I will be next until I hear from him.”

“That’s a nice job. How do I get a job like that,” Sonya asks?

“It takes a lot of training and a lot of experience,” I warn.

“Sounds like you’re quite a larger-than-life figure to Mr. Barnes, just like your grandfather,” says the manager.

“I met some children last night playing on the street in Albufeira. I ask them what they are doing. One says, I just made a bug house, and one little girl points to a single and standing out in front who hasn’t decided whether to go in or not. It is actually a piece of cardboard raised up a quarter inch so the bugs can walk underneath. I tell her that she should write a sign telling what it is that you have. She tells me, I cannot write small enough so they can understand it,” I end.

“Bravo, Mr. Barnes. The little people in life. The mind must always be thinking and conceptualizing,” philosophizes Carvalho.

“Mr. Barnes, have you ever heard about missing Nazi gold the Nazis laundered through Portugal during the Second World War,” Sonya asks?

Sonya’s question catches me by surprise. I thought I was the only one who knew about the Nazi gold except for the bad guys. I decide to play dumb. I didn’t want to show

The Four Horseman of the Apocalypse NOTES:

75.

my cards until I knew who all the players were and whose side they were on.

“No. I haven’t,” I whisper . “During the Second World War, the Nazis laundered tons of gold through Salazar’s Portugal. Much of it is still missing as the story goes. They say there may be tons of gold hidden somewhere in Lisbon,” whispers Sonya. “My father is hoping to find it and get some of it back as repatriation.”

“You don’t say.”

“It may be just a conspiracy theory, Mr. Barnes. My daughter is a student at the University of Madrid who sometimes has too much time on her hands,” defers Carvalho.

I suspect Carvalho is trying not to show his hand that Sonya has almost played and is now trying to back away. This probably means he knows more than he is letting on. I need to read more of the journal later on the Espirito Santo family.

After dinner is over, I thank the manager and say good night to Mr. Carvalho and Sonya and go for a walk in the garden. It is a beautiful, calm, clear Algarve night, and I can see a full moon as I stand staring out to sea.

“It’s a beautiful view, isn’t it, Mr. Barnes,” a voice soothes me from behind. Turning around, I see Sonya, “Beautiful. It certainly is,” I agree.

“I just love the Algarve. It has become quite eclectic with tiny villages juxtaposed between much larger resorts,” she adds.

“Do you know the Algarve,” I ask?

“Yes. Faro is the capital of the Algarve. It has a public university (the University of the Algarve), an international airport (Faro airport), a seaport, a marina, a railway station and a complete inter-regional bus service. It’s very historic and offers lots of ruins

76.

NOTES:

The Four Horseman of the Apocalypse to visit. Its airport is the central hub for the Algarve. The well-known developments of Quinta do Lago and Vale do Lobo, both five-star holiday resorts, are located west of Faro.

Together they provide seven top-quality golf courses, tennis centers, riding schools, hotels, holiday resorts and villas. The town of Faro is seven km from the beach, which isn’t nearly as appealing, so resorts have sprung up on the coast.

Lagos is one of the most visited cities in the Algarve and Portugal due to its variety of tourist-friendly beaches, rock formations (Ponta da Piedade), bars, restaurants and hotels. It is renowned for its vibrant summer nightlife and parties. It is also an ancient maritime town with more than two thousand years of history. Lagos Station is the western terminus of the railway line from Vila Real de Santo António (via Tavira and Faro).

Portimao is the largest town in the western Algarve and sits on the banks of the Arade River facing Ferragudo on the opposite bank. Over the years, Portimão’s Atlantic beach of Praia da Rocha has become a resort in its own right with lots of hotels and apartments, restaurants and bars, discos and clubs and shops.

Praia da Rocha is the main beach in Portimão. It became a tourist center at the end of the nineteenth century when it was the favoured summer resort of families from not only Portimão but also the rest of the Algarve and Andalusia. In the winter come the English. The Hotel da Bela Vista with its Belle Époque architecture dates from this time and stands out amongst the modern buildings along the beachfront.

“Thanks for the tour,” I acknowledge. “You do know the Algarve.”

“We’ve been coming here since I was little.”

“I better be turning in now; I have some reading to catch up on,” I tell her.

“Anytime.” Sonya smiles as I turn to leave. “Good luck finding the Nazi gold,” I yell.

She waves and adds, “That’s my father’s job.”

I was looking forward to learning more about the Espirito Santo family, so I settle down into my room to do some more reading.

The Four Horseman of the Apocalypse NOTES:

77.

Jose’s office, 1897 “I think I will go back into banking,” says Jose two weeks after the division of the family property in 1897. I am founding the firm Silva, Beirão, Pinto & C.ª, and inviting the three partners of my previous company to join me.”

1900, Viseu Seminary A young boy is sitting with a priest.

“Welcome, Antonio Salazar, to the Viseu Seminary. You will be studying with us for eight years, and then you will have to decide if you wish to enter the priesthood or go in another direction. You have lots of time to decide. You are only eleven now,” confirms a priest.

1906

“I think we should look more into doing business in our colonies in Africa,” Jose remarks one day in his office. Sugar and raw materials are always in significant demand.”

The beginning of the private investments of Espírito Santo e Silva in colonial markets dates back to March 22, 1906.

“For a stake of 2:500$000 réis, I can be a partner in the Empresa Açucareira do Buzi,

78.

NOTES:

The Four Horseman of the Apocalypse Ld.ª, to manufacture sugar and grow raw material. The head office will be in Lisbon, while the manufacturing complex will be located in Nova Lusitânia, on the banks of the Buzi River, in the territory of Manica and Sofala, in Mozambique. I think I will do it,” he confirms in his office.

By a contract dated April 6, 1906, the company is bound to provide the sugar factory with “enough cane for the manufacture of 400 tons of sugar, receiving for payment, when sugar is sold, 25:000$000 réis per ton of manufactured sugar.

Back on Liberdade.

“I hear you’re getting married again, Jose,” congratulate some friends as Jose strolls along with all the confidence in the world. Life is good, and he is enjoying every moment.

On April 18, 1907, in the parish of Santa Marinha (Vila Nova de Gaia), Jose gets married to Rita de Jesus, born on August 20, 1866, the daughter of António Manuel Poucas and Luzia Bárbara, farmers from Vidago. The prenuptial agreement, dated from the 6th of the same month, establishes that no property would be transferred between the future spouses. They will soon have four children: Maria, José, Ricardo and Manuel, born in 1908.

“You have a new baby brother Jose,” gushes his father, in their home in Lisbon, to his first son, also named Jose. “We are going to name him Ricardo. One day he will grow up to help in the bank, and together, you two will carry on my legacy. We need to be constantly concerned with the education of our children, my dear,” Jose tells his wife.

The Four Horseman of the Apocalypse NOTES:

79.

“There is an urgent need to build their character and ensure their professional preparation to secure the continuity of business. José and Ricardo shall continue to have daily English and German lessons even during the holidays.”

His son José attends the Arriaga College in Lisbon from 1904 to 1910.

1910 Viseu Monastery “I have decided not to go into the priesthood, father,” announces Antonio Salazar, now aged 21. “I have decided, father, to go to the university in Coimbra and study law.”

1911 “Bad luck Jose. He is the last,” bemoans an employee.

By 1911, the partners have passed away or left, the firm is dissolved according to the rules, Jose becomes the sole owner of all assets and liabilities.

At Their Home “I am drafting my first will, my dear,” Jose tells his wife. “Besides several provisions, I am leaving my five children “Maria Justina do Espírito Santo Silva, Maria Ribeiro da Silva, José Ribeiro da Silva, Ricardo Ribeiro da Silva and Manuel Ribeiro da Silva” the assets and liabilities of the Banking House located at Rua do Comércio, 95-103 and at Rua Augusta, 11-15. “They are obliged to continue the respective transactions and operation, as long as some of my children want it, and transactions generate a profit corresponding to the capital of 200 contos, which I have invested in that business establishment.”

“You are very pragmatic, my dear and prudent,” his wife tells him.

“I am determined that my children shall form a limited liability company, “in which Alexandre Theux, Ricardo Apolinário Dias, and Liberato Augusto Correia Brandão shall be appointed managers and administrators. They are all skillful and honoured employ

80.

NOTES:

The Four Horseman of the Apocalypse ees of this House, who have given their ability and long experience to the business; they will contribute much to the prosperity and progress of the establishment. The same managers may be fired and replaced whenever their actions do not correspond to what is expected from them.”

“That is a good idea,” his wife agrees. The children have the last say if the managers disagree with them.”

“It will also be the obligation of this company to have a reserve fund financed with a quarter of annual profits to secure the interests of our underage children. Until they reach adulthood or are emancipated, their share of the profits shall not be withdrawn and shall be credited in their account earning 5% annual interest”.

“Do you anticipate the possibility that some of them might not want to continue to be in the banking business,” she asks?

“I hope not, but you never know,” wonders Jose.

“The portion of the capital belonging to the others shall continue to be in the House for no longer than ten years, with those who remain to have to settle the debt during the same period. The building at Rua do Comércio, 95-107 will be left to our sons José, Ricardo and Manuel.”

“I am glad we sent Jose away to study in Scotland,” Maria confides to Jose.

Jose has just completed his secondary education as a boarding student at the prestigious Merchiston Castle School in Edinburgh between October 1911 and July 1913.

The instability caused by World War I and the Portuguese participation in the conflict-affected the economy, with a natural contraction of financial transactions that was severely hampered by inflation.

“I want to invest more into our colonies in Africa,” proposes Jose one night to a group of business associates at a dinner party. “Our investment in Mozambique turned out well, so I am looking now at Angola.”

“What kind of investment, Jose,” asks someone?

The Four Horseman of the Apocalypse NOTES:

81.

“I am thinking about two investments. The corporate purpose of the first company is cultivating cotton and manufacturing sugar in plots of land acquired or rented in the Province of Angola, and the sale of those products and the “exploitation of any other industries that may suit the company.” As for the other, António Costa, Ld.ª, is engaged in “trade of no specific kind and particularly in the continuation of the business that the António da Costa & C. has in Lisbon and Africa.”

In January 1913, the patriarch of the Espírito Santo family became a shareholder of two other companies: Sociedade Agrícola. do Cassequel, Ld.ª and António Costa & C. ª, with head office at Avenida da Liberdade, 7-r/c, both with a share capital of 300 contos. His stake was 95 contos in the first company and 75 in the second, whose majority shareholder was António Costa. Antonio Costa had a 185-conto stake: 50 contos in cash, 15 contos thanks to the estate Maravilha do Cassequel in Catumbela (“with an area over 15,000 hectares”), and 80 contos machinery, rails, trailers, pumps, different material and cattle.

1914 Coimbra University “Congratulations, Antonio Salazar, you have just graduated in law with distinction, specializing in finance and economic policy. You received 19 points out of 20 and became an assistant professor of economic policy at the law school,” boasts the Dean of the school on graduation day.

February 4, 1915 “Today is a great day,” announces Jose. “I am founding J. M. Espírito Santo Silva & C.ª, an unlimited liability partnership, whose corporate purpose is banking business in general.”

82.

NOTES:

The Four Horseman of the Apocalypse “I will subscribe 360 of the 400 contos of the share capital, the rest of which will be divided by family and friends. My son-in-law Custódio José Moniz Galvão is participating with 10 contos and the other 30 contos will be equally divided by another six partners, my son José, “who is now a clerk, living at Avenida Almirante Reis, 18”, and friends and colleagues from other business: José and Álvaro Nuno (sons of the former partner José Norberto da Silva Pinto), Liberato Augusto Correia Brandão, Joaquim Maria da Gama Franco (former exchange dealer and former employee from the days of the establishment on Calçada dos Paulistas), and Ricardo Apolinário Dias (businessmen).”

“Boy, you were sure right about investing in Angola, Jose.”

“Yes. In 1915, the return investment in Cassequel amounted to 10% but, in 1916, to 50% due to the large spike in sugar prices caused by World War I.” After the Monarchy, which had defended the African colonies by force and diplomacy, the Republic tried to promote their development. Before and after the change of the political regime, Espírito Santo e Silva sought to foster the country’s economic progress and take advantage of immediate opportunities to diversify his business, providing an essential individual contribution to the collective endeavour in Africa.

On December 24, 1915, José Maria do Espírito Santo e Silva dies of diabetes and inflammation of the aorta. His eldest son Jose gives the eulogy: “His humble beginnings were in no way benefitted by the fact that he may have been the natural son of an aristocrat. Since he was also not the son of a businessman, we can describe him as a truly self-made man. His two marriages neither provided him with any additional property nor with important social status. Everything he achieved was the result of hard work and of a keen ability for business.”

On July 30, 1916, Pena Monteiro, President of the Sociedade de Instrução e Beneficência José Estevão said, during the unveiling ceremony of the banker’s portrait, that: “Espírito Santo e Silva was a lottery trader who, thanks to his utmost honesty and dedication to work, succeeded in performing many good deeds during his life, benefitting any charity that he came across. He also bequeathed his family both with a fortune – which is something – and with an honourable name – which is really everything and the best and noblest title that can be inherited”.

The speech ended with the sentence that the honoree frequently used: “The more I give, the more I have to give.”

José Maria do Espírito Santo e Silva’s prudence, sobriety, modesty and discretion – attributes which have always been the hallmark of a great banker who inspires confidence – were the basis of his undeniable success. For four decades, his conduct as a businessman and as a citizen revealed efficiency and realism in light of the diverse and conflicting contexts in which he acted. I should highlight the precise parallelism

The Four Horseman of the Apocalypse NOTES:

83.

between Espírito Santo e Silva and the model of ethical bankers, which spread virtually everywhere during economic and legal liberalism and characterized, above all, by the inescapable moral imperative that forces them to rigorously defend the interests of their clients.

“Extra, extra, read all about it – the death of Espírito Santo e Silva, “one of the most influential and respectful figures of our banking sector.”

The press widely reported his death. According to the newspapers, hundreds of people and about 300 carriages followed the funeral coach, and “to mark the modesty and simplicity that characterized Espírito Santo Silva’s life concretely, it was decided not to give any speeches at the cemetery.

At his death, his assets were valued at just over 1,600 contos: 1,110 invested in several companies (460 of which in his own firm), 365 in negotiable instruments and 140 in real estate. Except for the consolidated bonds from Latin America, which had depreciated on average 50% by 1918, the remaining investment was safe and profitable. Almost the entire securities portfolio guaranteed the transactions of the firm J. M. Espírito Santo Silva & C.ª with other banking institutions: Banco de Portugal, Crédit Franco-Portugais, Lisboa & Açores, London & Brazilian Bank, Montepio Geral, Comptoir National d’Escompte and the London branch of the Swiss Bankverein.

One conto equals 1000 escudos so 1,600 contos is worth 1,600,000 escudos. With inflation added, 1,600,000 escudos in 1915 was worth roughly $42,000,000 in today’s dollars.

The founder of the family bank Espírito Santo e Silva was undoubtedly successful and very well thought of, I would say. He certainly provided for his family and left his four children a sizeable fortune. He was also very astute at safeguarding the family fortune and his bank. He also provided his children with excellent educations, and two of his heirs spoke fluent German and English. Time for bed! Any problems that might have hurt the bank’s reputation must have happened leading up to or during World War II. Vale do Lobo is regarded as one of Europe’s premier holiday and leisure destinations.

Sander van Gelder is the Chairman of the Vale do Lobo Group of companies in 1999.

It is the largest luxury resort of its kind in Portugal. Since 1977, it has been providing a relaxed and privileged lifestyle in an ambience where people can choose whatever they want for their enjoyment. Recognizing its constant attractive potential, Van Gelder increased the facilities by adding another 18 hole golf course and many facilities, including bars, shops and restaurants. During the next thirty years, Van Gelder changed the face of Vale do Lobo Resort and made it an important European location in the booming holiday market. In 2006 a combination of Portuguese and international investors and the Portuguese national bank Caixa Geral de Depósitos acquired the development

84.

NOTES:

The Four Horseman of the Apocalypse from Van Gelder. Serious investment has been made to update the luxury facilities and new projects of villas and apartments, a luxury spa, a modern medical centre, a large active tennis centre, the golf, sports & spa centre of Barringtons and the luxury Dunas Douradas Resort. But there was another British connection: Vale do Lobo was started initially by Trust House Fortes, the British real estate company for holidaying Brits.

Mr. Van Gelder is not in Portugal during my one-week visit. I can reach Isla Murray, an executive assistant for Mr. Wagner at Vale do Lobo’s office. I fax her regarding including an article on Vale do Lobo in an Algarve magazine.

One of the most desired addresses in Europe is Quinta do Lago, a unique destination where magnificent golf courses and grand villas blend with green umbrella pines, tranquil lakes, beautiful sandy beaches and wildlife in the Ria Formosa Natural Park. Quinta do Lago has some of the most luxurious villas on the coast. The resort has been carefully planned, with architecturally designed villas blending neatly into pine trees and the four golf courses.

The new Quinta Shopping Centre includes upscale boutiques offering exclusive de

The Four Horseman of the Apocalypse NOTES:

85.

signer labels and spectacular interior design outlets. Facilities include a floodlit tennis courts center, horse riding, water sports and squash. In addition, there are some delicious international restaurants which provide a choice of cuisines.

Planal is the company that owns Quinta do Lago. It is owned by the Irish O’Brian family. I send a fax to Elena Basilio, Director of Marketing for Planal, offering her a sixpage article on Quinta do Lago.

Tourism only began in the Algarve around the time I started travelling to Europe in 1966. Before that, it mainly consisted of farms and villages. Vilamoura began in 1962, and in 1970, Andre Jordan came to visit and saw the potential. He put together a group of investors and bought five hundred kilometres of pine tree land above sandy beaches with ocean views. It became known as Quinta do Lago.

The Golden Triangle is astounding. There is always something new to discover. It has an abundance of luxury accommodation in beautiful settings, some of the best golf courses in the Algarve, lovely beaches, and only about twenty minutes from Faro airport. There are many other developments in the “Golden Triangle” besides the three

86.

NOTES:

The Four Horseman of the Apocalypse I have mentioned: Vale do Garrão, Quinta do Mar, Lakeside Village, Quinta Verde and Dunas Douradas.

In Vilamoura, I contact Mr. Figueiredo with the Atlantis Hotel Vilamoura and Mr. Jorge Beldade, Director of Marketing for Marinaotel. On the other side of the marina, the beach is called Praia da Marina. Just above the beach is the Casino da Vilamoura, which has regular evening entertainment, such as shows, dances, and gaming rooms. If you fancy a spot of luxury, then relax the “Purobeach” way, with sofas, canopied beds and loungers on Praia da Marina (in front of Tivoli Marina Hotel) during the day or around the lake on the grounds of the hotel at night time. DJs are on hand to provide gentle music throughout the day while you soak up the sun or treat yourself to a massage. The pace quickens at night with regular live music acts joining the DJs. Vilamoura marina is the main centre of activity with a vast range of restaurants, bars and shops (including many designer shops). Luis Figo’s ‘Bar Sete’ (bar seven) is also on the marina front. Although it can get quite busy during the day, it’s really a very peaceful area to stroll around. It gets livelier at night, with everyone coming to eat and try out some of the bars. Despite that, it is still a very relaxed resort.

Other resorts in the area that are interested in my magazine are Villa Vita Parc and Balaia Village Golf Resort. Andy Barrett with Parque da Floresta is another. Bill McClary at the Pine Cliffs Golf & Country Club associated with the Sheraton Algarve is also interested. I am a busy boy!

A magazine on the Algarve will start with an article on the traditional towns of the Algarve: Albufeira, Lagos, Faro and Portimao. The following article will be on resorts of the Algarve. This article will focus on Vilamoura, Vale do Lobo, Quinta da Lago and Parque de Floresta. Next, will be an article on spas and then one on villas, town-houses and cottages for sale. Activities will follow golf, swimming, boating, tennis and surfing.

The culture of the Algarve will be next: dance, music, people, and festivals. Then there will be one on town dining and hotel dining. The last article will be on shopping and entertainment (nightlife). That will be enough for a first issue. From what I saw of the Algarve, there is lots of potential.

Every day I was in the Algarve, I travel the same route to Vilamoura. I always run the whole way, and I am getting into pretty good shape. The beaches are beautiful. The azure blue water and hard-packed sand are magnificent. The tide never seems to go out.

I have never been one to lie on the beach, but I love to run, and the hotter, the better.

The muscles relax after years of tension. I discovered strengths I never knew existed.

There is lots of time to work on the articles for the magazine. I want to be sure I have everything I need before I return home. If I have to source photos from home, it will be difficult and time-consuming, unlike today’s computer. Printing in those days was done from colour negatives. Today it is all digital. Ads needed to be sent to me by the advertiser with four colour negatives and a proof sheet. What a difference the computer has made. I sometimes forget how revolutionary the laptop has been. Photos all had to be

The Four Horseman of the Apocalypse NOTES:

87.

made into colour negatives. There was a considerable cost for pre press work in those days. That has all disappeared now. Today we just work with computer files and send them almost instantly around the world. We can also contact people immediately by email. In those days, I had to send a fax and then wait to receive one back. When I was on the road, the faxes came to my hotel, and there was a charge. There were cell phones, but not many people had them. In 1999 there were still telephone booths on most corners.

88.

NOTES:

The Four Horseman of the Apocalypse It is Friday, and my stay in the Algarve is almost up. Time for dinner. When I enter the dining room, I am greeted again by Mr. Carvalho and his daughter Sonya who are still there. They are leaving on the weekend the same as me. Tonight, however, there is another guest at our table. He is wearing a dark suit, not at all fitting for a tropical paradise like the Algarve. He must be the businessman coming down from Lisbon that the manager had mentioned earlier in the week.

“Good evening Mr. Barnes. I hope you had a successful week,” asks the manager?

“Yes. It was very successful. Thank you. I just love the resorts. Mr. Jordan and Mr. Gelder were certainly in the right place at the right time,” I add.

“Yes. Jordan and Gelder certainly were. Mr. Barnes, I would like you to meet another businessman Mr. Galvao. Mr. Galvao is the person I mentioned earlier who was held up in Lisbon,” motions the manager with his hand.

“Good evening Mr. Galvao,” I smile. “I hope your trip down was pleasant.”

“Yes. Quite Mr. Barnes.”

“What kind of business are you in, Mr. Galvao,” I ask?

“I work for the COMPANY, Mr. Barnes. It is a group of businessmen all with a singular purpose in mind to see Portugal thrive and prosper,” Galvao answers.

I remember instantly what Alfonso told me about the two men who had chased me, probably working for the COMPANY. The COMPANY is what they call the Espirito Santo family business. Again, I don’t let on that I have even heard of the COMPANY. “That’s interesting, Mr. Galvao,” I ponder and then turn my attention to Sonya.

“Have you been enjoying the Algarve, Mr. Barnes,” asks Sonya?

“Very much so,” I gush. “It is beautiful.”

“I would agree,” Sonya replies.

“What have you been up to since I saw you last,” I ask her.

“We have a surprise for you tonight, Mr. Barnes,” Sonya exclaims.

“Not only you, Mr. Barnes, but for all the guests,” Carvalho adds.

“We brought a dance troupe with us,” chimes Sonya. “Have you ever heard of Capoeira?”

I had heard of Capoeira. It was a form of martial arts that originated in Brazil in the sixteenth century. When the Portuguese brought slaves to Brazil, the slaves brought along their own colourful dances to camouflage the martial arts aspect of their fitness regimen from the Portuguese. The result was a bright and distinct form of martial arts that kept the opponent unable to move forward in the fight. Again, I play dumb because I don’t feel Carvalho is sincere.

“No. I don’t think I have heard of it,” I sigh.

“Have you ever noticed how those who practice martial arts turn out to be the calmest and the most peaceful? Known to develop discipline, improve concentration, and build confidence, martial art is not just a fitness routine but a system that includes philosophy, traditions, and spiritual practice. If you feel like being a passive spectator is no

The Four Horseman of the Apocalypse NOTES:

89.

longer enough, take action,” explains Carvalho.

“Do you practice Capoeira Mr. Carvalho? You always seem calm and collected as if there is a higher force at work,” I ask.

“As a matter of fact, I do, Mr. Barnes,” Carvalho admits. “You are very observant.”

“When is the show going to start,” I ask.

“How about right now, Mr. Barnes,” announces Carvalho, and he gets up from his chair and, with a motion of his hands, about twenty African dancers appear dressed in colourful costumes.

The costumes are stunning in bright tones of yellows and reds and greens and blue.

“Ladies and gentlemen,” Carvalho announces. I could tell he had done this before.

“I would like to present to you a collection of Capoeira warriors direct from Portugal’s former African colonies. They are going to put on a show for you this evening.”

We get up from our table and move to the back of the room so the dancers can perform. I wind up standing next to Mr. Galvao.

“Mr. Barnes, I am sure I had a more pleasant ride down than you did from Lisbon,” Galvao insinuates.

“Yes. Mine was a bit unpleasant. I hope your three boys had a safe landing,” I sigh?

“Oh, they’re expendable,” Galvao adds.

“So you decided to take the more diplomatic approach than send your goons again?”

“Something like that,” Galvao admits. “If I don’t get what I want, and I am sure I will.

My bodyguards can be quite persuasive.”

Galvao points to five men standing at critical points around the dining room, dressed like him in dark suits.

“Yes. Your men look like they can be quite persuasive,” I stutter.

“Mr. Barnes, you have something I want. If you do not hand it over to me by tomorrow morning before you leave,” Galvao orders, “I will have my men take it from you.”

The music starts, and the dancers begin to put on a lively show. Galvao moves away from me and disappears into the crowd. He has played his hand, and now it is my turn.

90.

NOTES:

The Four Horseman of the Apocalypse I guessed there were too many people around for him to have his men forcibly remove me from the dining room. I had twelve hours to decide on my next move. It was apparent he was referring to the journal.

After the show, I said good night and headed outside to the garden for a last look at the Algarve moon. I would be leaving in the morning one way or another. It wasn’t long before I heard a friendly voice behind me again.

“So our last night together, Mr. Barnes,” sighs Sophia.

“Yes. I thought I would take one last look at the Algarve moon,” I reply. Sophia looks radiant in the moonlight as she stands beside me. She seems much older tonight, probably because of the low-cut evening dress she is wearing.

“Have you been able to see much of the Algarve,” she asks?

“Yes. I have seen quite a lot, actually, but mostly in this area. I have concentrated on the large resorts, which are magnificent. I wish I had more time to view some of the smaller villages,” I babble.

“Yes. The smaller ones are spectacular as well. The next town past Vilamoura is Quarteira.

The Four Horseman of the Apocalypse NOTES:

91.

The best part of Quarteira is the lovely palm-lined promenade, Avenida Infante de Sagres, known as the “Marginal.” It’s a perfect place for jogging along the seafront or relaxing in the many cafes and bars. You would like it. Quarteira Beach is beautiful and rock-free, and there are plenty of eating places with the Avenida Infante de Sagres running along behind it. Quarteira still boasts a local fishing community, and the fishermen can be seen at work at the western end of the beach. The catches are sold at the nearby fish market early in the morning and will end up on your plate for lunch or dinner the same day.”

“Sounds wonderful,” I whisper.

“Quarteira offers a huge range of culinary delights, with the emphasis, of course, on the beautifully fresh fish and shellfish dishes such as grilled sardines, “cataplanas,” “Caldeir a da” (a kind of fish stew) and prawns, to name but a few. After Quarteira you find Vale do Lobo and then Quinta do Lago.”

“What are some of the other villages,” I ask?

“Almancil is the closest Portuguese village located inland ten kilometres north of Vale do Lobo and Quinta do Lago. Almancil is a busy town with several banks, shops and a good selection of restaurants. Since properties in the nearby resorts are among the most expensive in the country, several estate agents are on the main street. There are many excellent beaches near Almancil, such as Praia do Garrao and Praia do Ancão - both with some great beach restaurants.

Then, north of Faro, sixteen kilometres, is Loule. It is a large town with all the usual amenities you would expect to find - a wide selection of shops, numerous banks, art galleries, swimming pools and a sports pavilion, to name but a few!

Loulé is famous for its Saturday morning gypsy market (at the end of Rua da Nossa Senhora da Piedade), and there are trips available from most resorts in the Algarve if you don’t have a car. It also has an excellent daily market in the Arabian style market hall on Praça da República (open every morning except Sunday). Loulé Carnival is one of the most significant events in Loulé and is famous throughout the Algarve. It takes place in February (over three days, the third day being Shrove Tuesday). It’s a genuinely colourful affair with music and dancing and general partying reminiscent of Brasilian Carnivals when people come from all over the Algarve to watch the processions and join in with the party as everyone takes to the streets. The centre of Loulé (Avenida José da Costa Mealha) is shut off for the carnival, and it costs a few euros for entrance.”

92.

NOTES:

The Four Horseman of the Apocalypse “You really should consider going into the travel business,” I encourage her. “You have a good memory and good presentation skills,” I comment.

“Well, thank you again,” she gushes. “Coming from someone as well-travelled as you, I know it must be true.”

“It is true.”

“As I mentioned before, Pria da Rocha is one of the Algarve’s celebrated holiday meccas, popular with the English long before the tourism boom of the 1960s. As early as the 1930s, it was frequented by British writers and intellectuals, and during that decade, the English built the Algarve’s first-ever small golf course. Although it was apparently only a crude nine-hole course in the sand dunes.”

“What about larger towns,” I ask her?

“Larger towns include Tavira, a beautiful town. It has managed to stave off the influence of tourism to hold on to its unique tradition and handsome character. Tavira has typical rows of Portuguese ‘town’ houses with tiled fronts located along narrow cobbled streets, shops to browse in, pretty gardens and squares to sit in, and, of course, plenty of restaurants and cafes for refreshments. Tavira can be proud of its fabulous island beach, Ilha de Tavira, a fourteen km long offshore sandspit. Ferries cross from the town centre throughout the summer. There is also year-round service from nearby Quatro Águas.”

“What’s the most easterly town,” I ask?

“The most easterly town in the Algarve is Vila Real de Santo Antonio. Vila Real is a relaxed and peaceful town, ideal for anyone who likes the quieter side of life and wants to escape the stresses of home. It’s beautifully quaint, with lots to see and do, particularly for those who like to putter around and absorb the local culture. Like Monte Gordo, Vila Real is very flat and ideal for walking and cycling. Vila Real has a lovely open sandy beach, which stretches for several kilometres uninterrupted towards Manta Rota, near Tavira. At the river end, access to the beach is along a narrow road with some rather large speed bumps and very little space to maneuver. There is a small parking area near the end. The better route to follow is signposted through the pine forest between Monte Gordo and Vila Real. There is plenty of parking right behind the beach. There,

The Four Horseman of the Apocalypse NOTES:

93.

now you know as much as I know about the Algarve Mr. Barnes,” compliments Sonya.

“Oh, I doubt that,” I confire. I enjoyed your Capoeira Warriors very much.”

“Very colourful, aren’t they. My father brings them along on his tours to promote our homeland. They will be putting on another show in the morning, Mr. Barnes. You don’t want to miss it,” she assures me with a smile.

“Is your father an active participant in Capoeira,” I ask “Not so much these days. He has lost his confidence, I think. He was excellent. Now, he mostly travels around with his dance troupe remembering the old days.”

“I’m sorry to hear that.”

“He is still strong. All he needs is a push, I think,” adds Sonya.

“What about you? Are you actively involved In repatriation and helping your former African colonies?

“I don’t really know anymore. I was, but since I have been away at university, I may go in another direction. If my father were more enthused, I might be as well. Time will tell.”

“I will look forward to tomorrow morning,” I promise and bid Sonya good night. That might work out perfectly, I think, as I make my way back to my room. I feel more confident about getting out of there safely in the morning with Galvao and his goons lurking in the shadows. If there is going to be another show, maybe I can use it to my advantage.

I am so confident that I decide to read a little more of the Espirito Santo history to see if I can discover how they eventually get mixed up with the Nazi gold.

December 23, 1916 A few weeks after the end of the lengthy civil case of the inventory, the firm Espírito Santo Silva & C.ª is incorporated as an unlimited liability partnership.

“Congratulations, Jose,” wishes his mother. “You have just been made the lifetime manager of the company. You own exclusively and individually the rights to use the firm, with the remaining partners signing after you. It’s all in the articles of incorporation.”

“Thanks, mother,” replies Jose. “I will try to carry on father’s legacy.”

1917 Coimbra University, Portugal “Antonio Salazar, I’m appointing you to the chairs of economic policy and finance at the university,” announces Jose Alberto dos Reis in his office at the university. “I understand that next year you will be receiving your doctorate.”

July 30, 1917, at the office.

94.

NOTES:

The Four Horseman of the Apocalypse “Liberato Augusto Correia Brandão, I appoint you an attorney with powers to perform all acts of management and general administration of the company as my representative.”

“Thanks, Jose,” agrees Liberato. “The funds of the Banking House “are of such magnitude that they make it one of the country’s top credit establishments. According to its latest balance sheet, it has an annual turnover of about 396,000 contos, over 1,000 contos a day. It has upwards of 3,200 contos in cash deposits alone, not taking into account the deposits of securities that amount to a few thousand contos”.

“That’s good, Liberato. I’m going to make it even bigger,” promises Jose.

“The Banking House has deposited a large part of its securities in foreign banks, a fact that “increases safety, because there the State has greater powers and resources and public order is best assured. In our country, civil unrest, including burglaries, have been frequent in recent times and threatens to repeat itself at every step of the way,” confirms Liberato.

“The request of these securities inside the country has become almost impossible given the excessive expenses it would imply, with war insurance up to 1% not being less of a deterrent. Risky transactions on the said negotiable instruments are not to be feared now because the different belligerent States, when not wholly forbidding them, have at least restricted them as it was the case of Portugal under Decree No. 797, dated August 25, 1914,” states Jose.

Though born in a period dominated by instability, the first Banking House of the descendants of José Maria do Espírito Santo e Silva featured the conditions not only to survive the storm but also to grow as soon as the context allowed it to do so, thanks to the volume of its assets, the high amounts that were annually processed and the solidity of the family ownership structure.

The Four Horseman of the Apocalypse NOTES:

95.

1919 Banko Esporito Santo “Boy, the economies of some countries are starting to pick up like in Britain after the war, unlike Portugal,” sighs Jose sitting reading the newspaper.

“I know Portugal is faced with all types of economic, social and political problems that are the cause and consequence of regular banking crises, agricultural difficulties, the decline in exports, inflation and so on,” reports Liberto.

“Factors that contribute to thickening the gloomy atmosphere. Politically the situation is quite volatile; it could be marked by violence of various kinds: revolutions, coups, assassinations, along with the restoration movement in the north of the country,” conti nues Jose.

“The growing public discontent with banks, particularly with foreign ones, is visible in several ways, with banking institutions being accused of being involved in the devaluation of the national currency “to take the pound to 50$00 and force the escudo to be worth just over half of 1$000 Brazilian réis.”

“Who said that,” asks Jose? “The newspapers reported it. Here’s what the Government is doing about it. In an attempt to stop the “growing and disturbing deterioration of the economic and monetary situation, which is called a foreign exchange crisis,” the Ministry of Finance issued Decree No. 6,263, dated December 2, 1919, to combat the most damaging economic effects caused by changes in the exchange rate. And to ensure compliance with the law, the decree created the Supervisory Council of General Trade and Foreign Exchange,” tells Roberto.

“Laws and governments will follow one after the other without finding an answer. A

96.

NOTES:

The Four Horseman of the Apocalypse decade after its implementation, the First Republic continues without finding a sense of direction, crippled by successive crises that progressively affect the credibility of the regime. With the social support reduced and the power of the State weakened, the conditions are set for the spread of social unrest, with every move contributing to “the alarming nervousness of capital,” trembles Jose. “I worry about this country Roberto.”

“We must keep a discreet position during this adverse situation, Jose and seek to establish the necessary conditions for the future continuity of the firm,” says Riberto.

From the late 18th century to the early 20th century, private bankers were, for the most part, traders and businessmen. They had access to international networks for payments and transfers of capital, intervened in foreign and domestic bond markets, carried out sizeable industrial projects, especially in railways and mining, and invested in the service sector, namely in insurance companies.

“We move in a web of relationships based on family ties Riberto, on friendships with members of the political oligarchy and on our connections to people with power over large companies, a situation that gives us access to valuable information from the business world,” states Jose. “Religious solidarity, particularly active in Northern Europe, facilitates all these connections.”

Risk assessment was based not on sophisticated analysis of the markets and modern technology, but above all, on a valid code of values shared by the opinion-makers of banking, industry and services in general. It is arguable whether a community with the characteristics and size of northern countries ever existed in Portugal.

“There is solidarity, and I have seen how my father developed his businesses by being connected to people who he greatly trusted. He associated himself with clients in various sectors of the economy and in private or semi-state companies. The insurance industry is one of the sectors that attracts me the most, with many bankers holding major stakes, which is why they can be found in large numbers on boards of directors and other governing bodies of this industry,” confides Jose.

In 1918, the lifetime manager of the Espírito Santo Silva & C.ª began planning the diversification of the company’s activities. The entry of the family into the insurance sector dates from this time. José Espírito Santo stated that the insurance industry fascinated him “for its complexity and diversity.” It was a small step from fascination to reality, and in May of that year, he opened an insurance section in his Banking House in Lisbon representing the Tranquillidade Portuense – Companhia de Seguros, S.A.R.L., of which José Espírito Santo Silva was already a minor shareholder.

“I am glad you are finely old enough, Ricardo, to join me in the running of the company,” smiles Jose.

“Thanks, brother,” acknowledges Ricardo. “I will try to live up to the excellent name of Espirito Santo and the legacy of our father.

“I’m sure you will, Ricardo.”

The Four Horseman of the Apocalypse NOTES:

97.

“One thing I have been thinking about is providing the institution with a network of branches that would allow it to expand its business, namely by attracting deposits.

In a time characterized by a high concentration of banks as a result of many bankruptcies, I project for the near future a country-wide operation; for us, so the Espírito Santo Silva & C.ª can grow organically, creating its own network of branches,” suggests Ricardo.

“We have that plot of land in Oporto that we bought in 1918,” adds Jose. We could quickly build a branch office in that city. Although the project is ambitious, its implementation is necessary given the importance of that city’s market.”

The purchase was formalized by a deed dated May 7, 1918, with the construction project being approved by the Municipal Authorities on March 13 of the following year.

“We can get António Manuel de Almeida, our cousin and author of the architectural design of the future building, to help,” continues Jose.”

Almeida would say the following many years later.

“I was fortunate enough to meet and socialize as a family member, for five years of my student life, with Mr. José Maria do Espírito Santo e Silva, a prestigious figure from the banking industry... intelligent, kind and generous... who I owe him my studies and my engineering degree”.

The stage was set to implement a long-term strategy, which would become another asset of the banking business of the Espírito Santo family.

“Can you believe this Ricardo,” says Jose reading a letter that is just delivered to him from the minority partners of the Bank. “We now give you an ultimatum to change the laws of the corporation, making us all equal partners.”

“This will mean the family will no longer be in control,” says Ricardo. “What are you going to do?”

“Uphold the wishes of the founder, of course, and weather the storm by paying off the minority partners and going it alone.”

“Let me handle it, Jose.”

“Okay. Let’s see what you can do.”

José and his brother Ricardo assume their father’s entrepreneurial spirit, from whom they inherited the experience and tradition of a challenging and transparent negotiating stance, along with prudence and careful risk assessment.

“We are both aware that the times demand constant modernization efforts, so we should follow the general guiding principles of the English bankers and, in particular, the business and organizational practices of the Midland Bank; they are our reference in European banking,” says Jose.

On April 9, 1920, half a century after the founding of José Maria do Espírito Santo e Silva’s first establishment, the Banco Espírito Santo, S.A.R.L. was founded based on the assets and liabilities of the Banking House headquartered at Rua do Comércio,

98.

NOTES:

The Four Horseman of the Apocalypse 95-103. The authorized capital was fixed at 12,000 contos, 3,600 of which were soon paid through the issue of 40,000 shares with the nominal value of 90$00 escudos, with 39,303 being from Banco Espírito Santo to Banco Espírito Santo e Comercial de Lisboa.

Ricardo Espírito Santo, 1920 subscribed by Espírito Santo Silva & C.ª (representing the total net assets of the Banking House), 467 being paid in cash and 230 corresponding to the shares of Manuel Ribeiro do Espírito Santo e Silva, a minor at the time, in the value of the building of the company.

“There, it’s done,” says Jose. “The corporate transformation allows the Espírito Santo family to strengthen its connections with influential personalities in the business world who we will invite to join the shareholder structure of the B.E.S.” “Who shall we invite,” asks Ricardo?

“I made a list. The list includes António Serrão Franco, a well-known broker from Lisbon and a personal friend of the founder, who is a member of the Supervisory Council and of the General Meeting of several companies; Augusto Victor dos Santos, our lawyer, and Chairman of the General Meeting of the Companhia dos Caminhos de Ferro Portugueses; Custódio Jose Moniz Galvão, an alternate member of the Board of Directors of the Companhia de Seguros Mutualidade Portuguesa, and José Maria de Oliveira Simões, Director General of the Bureau of Commerce and Industry, a member of the governing bodies of several companies, such as the Companhia Nacional dos Caminhos de Ferro, the Companhia Nacional and the Nova Fábrica de Vidros da Marinha Grande.”

“I want to make my brother Secretary-General of the company,” states Jose to Riberto.

“Ricardo Espírito Santo, you have worked at the banking house where you have learned the business since you were 15 years old. We elect you Secretary-General, an important position that will allow you to continue to develop the skills that you have already demonstrated (namely during the complex negotiations with your father’s former partners), asserting yourself as the principal associate of your brother and replacing him when he is absent, confirms Riberto to Ricardo with Jose present.

“Thanks, Riberto. Thanks, brother. I will watch out for you and the Bank as well as our father’s good name and legacy.”

“As for the other members they will be, Carlos Pinto da Cruz e Mello as you know, is a professor at the Lisbon Medical School. He is married to our sister from our father’s second marriage, Maria Ribeiro Espírito Santo Silva, born on October 27, 1893, whist Mateus Lourenço Aparício is a prestigious Lisbon businessman. Regarding the Supervisory Council, General José Maria de Oliveira Simões, who is married to the widow of the founder, Rita de Jesus Ribeiro, is elected Chairman of that body, with João Raposo de Magalhães holding the position of Secretary. Looking at this initial group of officials, you can see my obvious concern to include people who, given their professional relationships in the business world and in the public sector, can contribute to solidifying the new Bank in the market,” says Jose.

The Four Horseman of the Apocalypse NOTES:

99.

“So, are you ready to get married Jose,” asks Ricardo? To Maria José Borges Coutinho de Medeiros Sousa Dias da Câmara, sister of the 3rd Marquis of Praia e Monforte?”

“Yes, indeed.”

April 12, 1920.

“Listen to you talk, brother,” says Jose. Once you were freed from paternal custody in January 1919, you married six months later Mary Pinto de Morais Sarment Cohen, daughter of Benjamin Abraham Cohen. A British merchant banker who is based in Gibraltar and soon to be in Lourenço Marques (present-day Maputo), and of Maria da Conceição Pinto de Morais Sarmento.”

“Yes. Father would be proud of both our choices,” says Ricardo.

1921 In the house which Salazar and Cerejeira shared for fifteen years during their university days and after.

“Why don’t you stand as a candidate for election to parliament, Antonio,” asks his good friend Cerejeira.

“You oppose the new anti-clerical stance of the First Republic. The local press describes you as “one of the most powerful minds of the new generation.” You are a frequent contributor to my journal, O Imparcial.

Salazar appears once in the chamber and never returns. He is struck by the disorder he witnesses and the feeling of futility. Salazar is convinced that liberal individualism has led to fragmentation of society and a perversion of the democratic process.

Cerejeira and Salazar

May 1922 -The restructuring of the governing bodies continues at the Bank.

Banko Esporito Santos “Custódio José Moniz Galvão is not interested in his functions, and has left the Supervisory Council and is being replaced by Domingos Souza Holstein Beck, who is the Count of Póvoa and will later become the Duke of Palmela,” says Ricardo.

“Good move, brother. He will be an asset moving ahead,” says Jose.

The Espírito Santo family continues to promote the expansion of its social circle, widening it to the spheres of society connected to the political power, the business world and the traditional families, promoting and developing a network of contacts that can be potentially useful for its business.

The political agitation that characterized the first years of the new regime and the convulsions generated by the war created a dangerous combination of factors that would

100.

NOTES:

The Four Horseman of the Apocalypse continue to afflict the country’s collective life far beyond the end of the conflict. The inefficiency of the Government, the collapse of public order, social chaos and economic decline were, amongst others, serious problems for which Portugal could not find a solution. In the opinion of Araújo Correia, the period between 1919 and 1926 was “one of the most agonizing in recent history.”

Many political, economic and social mistakes were made during the seven years after the war. The permanent breaches of public order were the cause of constant risks and losses for citizens and their activities. The memories of an employee of that time bear witness to how the problem was almost part of the company’s day-to-day activities: “We would often leave the Bank and go to Rossio to watch the clashes between the police and the rioters that ended with a cavalry charge of the Republican Guard coming from Carmo or Cabeço de Bola.” Members of the Board were being “threatened at gunpoint in the Management Office located at the corner of Rua Augusta and Rua do Comércio by men from the Red Legion.”

General instability was naturally the cause of a whole procession of problems and difficulties for the economy. The financial sector had a growing distrust in politicians who were unable to ensure effective governance. And a succession of Finance Ministers, who held the position for short periods and, for the most part, seemed to legitimate the general pessimism without showing any results. In turn, the population regarded banking institutions with ever-increasing doubts, with a deplorable atmosphere of mistrust also

spreading at this level, a dangerous scenario to the operation of the financial sector.

In the second half of 1924, “Listen to this, Jose,” says Ricardo.

“It took revaluation of the escudo, the stabilization of the exchange rate, the slowdown of inflation, the growth of the G.D.P., and the reduction of budget deficits, the economy improved slightly. These goals were attained due to the policies introduced by Álvaro Xavier de Castro, Prime Minister and Finance Minister, during a few months

The Four Horseman of the Apocalypse NOTES:

101.

this year, especially the policies that imposed greater scrutiny on the foreign exchange market.”

“Sounds like some good news for a change in the newspapers,” gushes Jose.

“We’re doing well, Jose; thanks in part, I would say to our staff,” praises Ricardo.

“I have been aware, as you know, of the strategic importance of offering banking services with skilled, highly motivated and totally committed professionals. Ten years after the founding of the Bank, we’ve created a corporate culture founded on professionalism and dedication from all those working at the institution. This has been publicly recognized again, as you know. For me, the Chairman of the Board, success is the result of the joint work of officials and employees without distinction,” elaborates Jose.

“And with that, I’m going out for a drink,” sighs Ricardo.

Following a model used in the United States and Great Britain, the Espírito Santo brothers began a policy of geographical expansion of branches. The strategic objective was to increase the market share and develop a close relationship with local economies, making it easier for them to have access to credit and general banking services.

The B.E.S. was one of the first private institutions to start this trend in Portugal, taking advantage of the benefits offered by the existence of branches, located according to client needs and controlled by the head office, both in the movement of funds and in the transfer of credits.

April 8, 1920, “Our first branch just opened in Torres Vedras, a region where the Bank already has many clients. Considered to be a good part of the country for wine and distilled beverage businesses and featuring good purchasing power, since “there is money and in great abundance,” the opening of a branch of the B.E.S. provides local trade with the necessary means to fund their activities, announces Jose at a general meeting.

Other openings followed suit: “Well, we tried Ricardo. Too many problems relating to market conditions in those years of crisis prevented the proper operation of our new branches. Both Caldas da Rainha, which we opened on January 15, 1921, and Funchal, were shut down on January 20, 1923,” announces Jose. The former shutting down on May 17, 1926, the latter on November 30, 1924,” he adds.

“I’m sorry to hear that, Jose,” sighs Ricardo. “The goal of geographical expansion will have to wait for better days.”

102.

NOTES:

The Four Horseman of the Apocalypse June 6, 1926, Inside the Bank.

“Have you heard the news, Jose,” shouts Ricardo. “The Government has fallen. The General is outside now on Liberdade. Come.”

Jose and Ricardo and several bank employees rush outside onto Liberdade, where they are greeted by large crowds on both sides of the street and a military procession of Generals marching down the middle to Rossio Square.

“That’s General Gomes da Costas with his troops,” points Ricardo to Jose.

“I wonder how long this one will last,” sighs Jose.

“The revolution started in Braga on May 26, commanded by General Manuel Gomes da Costa, and has spread immediately to Porto, Lisbon, Évora, Coimbra and Santarém,” shouts another man standing nearby.

“Cabecadas won’t resign,” states Jose, going back inside the Bank followed by Ricardo.

“I bet he will,” gushes Ricardo. “But I’m not sure if Gomes will last. Those Generals can be very ruthless,” adds Jose.

June 11, Coimbra University “Mr. Salazar, we would like you to join the government of José Mendes Cabeçadas as Minister of Finance,” says a small group of officers who drive from Lisbon to Coimbra to persuade him.

Salazar spends five days in Lisbon. The conditions he proposes to control spending are refused, he quickly resigns, and in two hours, is on a train back to Coimbra University, explaining that he cannot do so because of the frequent disputes and general disorder in the Government work correctly.

July 9, Lisbon

The Four Horseman of the Apocalypse NOTES:

103.

“Jose, you were right,” admits Ricardo rushing back into his brother’s office.

“Gomes made it all the way to Prime Minister, but when they asked him to be President, he refused. Cabecadas has already resigned.”

“So they forced him to resign,” says Jose. “Yes. He is being exiled to the Azores.”

“Who is taking his place?”

“General António Óscar de Fragoso Carmona, of the conservative military wing of the Ditadura Militar, has become Prime Minister,” says Ricardo.

November 29 “Camona has accepted the position of President of the Ditadura Militar,” announces Ricardo to his brother Jose in his office.

With the opening of the Coimbra branch in 1929, the Bank resumes with renewed strength a project which those in charge believe could be a differentiating factor for the Bank concerning the competition.

“I think we are entering a new period of stability,” Jose predicts at a board meeting.

“The end of the First Republic, consummated by the military coup of May 28, 1926, is paving the way for the consolidation, at the financial, economic and social levels, of a policy of stability, whose ideals date back to the brief Government of Álvaro Xavier de Castro. The financial dictatorship marks the beginning of a new period in the history of the Portuguese economy. With public finances pursuing fiscal discipline and with the implementation of new legal frameworks for economic activities – subjected to a growing public intervention and moving away from the old liberal model that has gone out of control during the First Republic -, the essential balance of the economy will slowly be achieved, and there are new perspectives for development.”

“Seems the government’s loan wasn’t granted,” confides Jose.

“I heard they have appointed a new Finance Minister; as a result, his name is Antonio Salazar,” adds Ricardo. “He may be just what the country needs.”

104.

NOTES:

The Four Horseman of the Apocalypse Portugal’s overriding problem in 1926 was its enormous public debt, much of which was owed to foreign entities. Several times between 1926 and 1928, Salazar turned down an appointment to the finance ministry. He pleaded ill-health, devotion to his aged parents and a preference for the academic cloisters. In 1927, under the Ministry of Sinel de Cordes, the public deficit kept on growing. The Government tried to obtain loans from Baring Brothers under the auspices of the League of Nations, but the conditions were considered unacceptable. With Portugal under the threat of an imminent financial collapse, Salazar finally agreed to become its 81st Finance Minister on April 26, 1928, after the Republican and Freemason Óscar Carmona was elected President. However, before accepting the position, he personally secured from Carmona a categorical assurance that as finance minister, he would have a free hand to veto expenditure in all government departments, not just his own. Salazar was the financial czar virtually from the day he took office.

Spring 1928 “Salazar is implementing a drastic policy to reduce spending as part of several reforms that may last until 1933, I understand,” states Ricardo.

During those years of financial dictatorship, the country would benefit by finally balancing public finances due to the new economic policy, although it did so only after suffering extreme difficulties in the opinion of Salazar.

“The first meaning of this policy of sacrifice is that one generation is sacrificed for the future of our Homeland,” acknowledges Salazar.

On December 27, 1928, the youngest of the Espirito Santo brothers, Manuel, gets married to Isabel Maria de Jesus Pinheiro de Melo, daughter of Bernardo Pinheiro Correia de Melo (Count of Arnoso) and of Matilde Munró dos Anjos.

1929 “Within one year, armed with special powers, Salazar has balanced the budget and stabilized Portugal’s currency. He has restored order to the national accounts, enforcing austerity and red-pencilling waste; Salazar produced the first of many budgetary surpluses, an unparalleled novelty in Portugal,” brags Ricardo. “I told you he would be good for Portugal,” he tells his brother Jose.

In 1930, the crisis in October of 1929 in the United States started to be felt in the other industrialized countries, with a generalized decrease in industrial production and a deep banking and global financing crisis. In Portugal, the world crisis would not have such devastating effects as it did in the more industrialized economies if we believe in the conclusions reached by most authors who studied the impact of the crisis in the

The Four Horseman of the Apocalypse NOTES:

105.

country, as they are unanimous in their belief that it only had a relatively reduced impact.

The heirs of the founder managed to keep the company together through the hard times by not focusing on growth but on stability. They also ushered in an era of professionalism within the company and kept building up contacts in the aristocracy and the business community. They also diversified and opened more branches. I was finding myself admiring the two Santos brothers even more. The end of the First Republic and the new Government’s inability to get a monetary loan from abroad signalled in the era of Antonio Salazar. Time for bed!

106.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

107.

108.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

109.

110.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

111.

112.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

113.

114.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

115.

116.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

117.

118.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

119.

120.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

121.

122.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

123.

124.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

125.

126.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

127.

128.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

129.

130.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

131.

132.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

133.

134.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

135.

136.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

137.

138.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

139.

140.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

141.

142.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

143.

144.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

145.

146.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

147.

148.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

149.

150.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

151.

152.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

153.

154.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

155.

156.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

157.

158.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

159.

160.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

161.

162.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

163.

164.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

165.

166.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

167.

168.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

169.

170.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

171.

172.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

173.

174.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

175.

176.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

177.

178.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

179.

180.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

181.

182.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

183.

184.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

185.

186.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

187.

188.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

189.

190.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

191.

192.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

193.

194.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

195.

196.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

197.

198.

NOTES:

The Four Horseman of the Apocalypse

The Four Horseman of the Apocalypse NOTES:

199.

200.

NOTES:

The Four Horseman of the Apocalypse