658.119/770: Telegram
The Acting Secretary of State to the Ambassador in Great Britain ( Davis )
3772. For Sheldon [from War Trade Board]: No. 1975. The following is for your information and to be repeated to the American Legation at Stockholm as an answer to Legation’s 3357, December 18th, 10 a.m.55
“The War Trade Board believe that the present control of imports into Sweden should not be immediately and wholly abandoned. Even if such relaxation did not result in the immediate resumption of exports from Sweden to Germany, it would nevertheless permit Germany to accumulate in Sweden large stocks of raw materials which Germany requires for post-war use, and would thus seriously weaken the economic pressure which we believe should prove a most potent factor in compelling Germany to accept the peace terms which the Associated Governments desire to impose. There are, however, a large number of commodities to which this objection is not applicable. These are principally manufactured articles and foodstuffs, and we have already recommended to the Allied Blockade Committee that these commodities be added to the so-called ‘free list’ which will mean that they may be exported to approved consignees in all northern neutral countries without limit as to quantity and without requiring a guarantee by the manufacturer.
[Page 785]“You have already been informed by Sheldon and by our No. 132 for Owen of December 21st56 of the simplified procedure effective December 26th, whereunder it is no longer necessary that applications for export licenses be referred to the Allied Blockade Committee at London. The licenses will be issued here as soon as the import certificates have been issued by the importing associations in Sweden. It would therefore appear that any delay in the issuance of licenses in appropriate cases is attributable to the Swedish Associations.”