611.59A31/22
The British Embassy to the Department of State
Since Iceland was occupied by British forces in May, 1940, the British Government have regarded themselves as responsible for Iceland’s welfare and have done their best (a) to buy Iceland’s products and (b) to supply her needs, including the purchase in the United States and Canada of goods which could not be supplied by the United Kingdom.
At the time of the landing of their forces in Iceland, the United States Government undertook to further the interests of Iceland and by every means in their power to supply the country with sufficient necessities to provide shipping and to make favourable commercial agreements.
His Majesty’s Government in the United Kingdom now proposes to the United States Government that the two Governments shall cooperate closely in fulfilling under present conditions the parallel obligations [Page 756] which both Governments have undertaken at different times. With this object in view, His Majesty’s Government in the United Kingdom suggests immediate discussion so that a plan satisfactory to all parties can be drawn up.
The present position appears to be that the British Government must continue to carry fish and fish oils to the United Kingdom from Iceland and there will, therefore, be a certain amount of tonnage available for carriage to Iceland of those goods which we can still supply, but, owing to the limitation of available supplies in the United Kingdom, most of Iceland’s requirements must to an increasing extent be drawn from the United States and Canada.
The British Government, therefore, hope that the United States will assume the responsibility for providing the tonnage necessary to supply from North America Iceland’s civil requirements and would also welcome United States’ assistance in shipping those military requirements which could be drawn from America. The British Government has in the past had to supply Iceland with some American dollars in order to meet the cost of her purchases in the United States. It is likely that as a result of the United States occupation, Iceland will have increased dollar resources and the British authorities hope that the United States Government will be prepared to assist Iceland to obtain such additional United States and/or Canadian dollars as may be needed to meet her purchases. The British Government wish still to pay in sterling for vital supplies of mutton, fish and fish oil which are imperative for the British food programme.
The following figures give some general indication of the tonnage required both for Iceland’s civil cargoes and for British military supplies:
The volume of goods at present moving annually from the United Kingdom to Iceland is 170,000 tons of coal, and 65,000 tons of coke, salt, fertilizer, cement and general cargo. In addition, moving from the United States and Canada there are about 40,000 tons of timber and general cargoes. A good deal of this programme has to be lifted in the summer months when weather conditions are favourable.
Finally, London hopes that the Maritime Commission will be able to find tonnage for British military requirements to be purchased and shipped under Lease-Lend arrangements.1 These requirements are approximately 70,000 tons of coal and coke per annum, and stores averaging about 6,000 tons a month.
- For correspondence pertaining to lend-lease arrangements between the United States and the United Kingdom, see vol. iii, pp. 1 ff.↩