611.59A31/94a

The Secretary of State to the Chairman of the Icelandic Trade Delegation (Thor)

My Dear Mr. Thor: I have the honor to refer to your memorandum dated August 26, 194125 and to the conferences which have been held between the Icelandic Government Trade Delegation and officers of the Department of State regarding trade relations between the United States and Iceland, and to confirm to you my understanding that the situation with respect to each of the major points which have been under discussion is as follows:

1.
Pursuant to the obligations assumed by the Government of the United States under the exchange of messages between the President of the United States and the Prime Minister of Iceland, as well as to further its policy of aiding the British war effort, this Government has proposed, and the Governments of Iceland and the United Kingdom have agreed, that until further notice this Government will purchase all exports from Iceland to the United Kingdom, the price of the supplies so purchased to be paid from Lend-Lease funds. In this connection it is understood that the Government of the United States will take over all of the unexpired contracts by which Iceland is obligated to supply goods to the United Kingdom, including the so-called [Page 774] “Fish Agreement” which expires June 30, 1942. It is further understood that goods which are not under contract but which are currently supplied by Iceland to the United Kingdom, such as fishermen’s cargoes, will be the subject of arrangements to be made in Iceland by the representatives there of the three Governments concerned.
2.
In response to the request of the Icelandic Government that arrangements be made to facilitate the sale of Icelandic products in the United States, this Government has announced its intention to negotiate a trade agreement with Iceland covering products of importance to the Icelandic export trade, such as herring of different cuts and cures, dried and salted cod, cod liver oil, herring oil and other fishery products as well as dressed lamb and sheep skin.
3.
The procurement by Iceland from the United States of necessary imports will, it is anticipated, be facilitated by the Lend-Lease Agreement between the United States and Iceland26 which has been concluded after discussion with the Icelandic Trade Delegation.
4.
In order to contribute to the fulfillment of the Icelandic Government’s wish to open direct mail and telecommunication services between the United States and Iceland, as well as to increase the security of the United States military and naval forces in Iceland, this Government has agreed to the request of the Icelandic Government that during the present emergency United States Government personnel undertake to maintain in Iceland censorship of telegrams and mail to and from Iceland. Arrangements are now being made, and it is hoped will be concluded shortly, to establish the necessary censorship organization in Iceland.
5.
It is understood that the Iceland Trade Delegation has been in direct communication with the United States Maritime Commission with respect to the supply of shipping facilities essential to the Icelandic-United States trade and that arrangements satisfactory to Iceland have been agreed upon.
6.
Other questions which have been raised by the Icelandic Trade Delegation, such as those relating to the discharge in the United States of the cargoes of Icelandic fishing vessels, are still under consideration by the responsible agencies of this Government.

Let me take this opportunity to express my appreciation of the cooperation extended by you and by your colleagues, Mr. Ásgeir Ásgeirsson and Mr. Björn Ólafsson, in the course of the negotiations under reference.

Sincerely yours,

Cordell Hull
  1. Not printed.
  2. See telegram No. 133, November 26, 11 p.m., to the Minister in Iceland, infra.