740.00112 European War 1939/10497: Telegram

The Minister in Sweden (Johnson) to the Secretary of State

1178. Following is summary of memorandum dated April 6 presented by Foreign Office in reply to aide-mémoire of March 17 (see Legation’s 1177, April 6, 8 p.m.).

After stating questions raised in our aide-mémoire should have been treated in Joint Standing Commission,74 and recapitulating events leading up to 1943 agreement, Swedish memorandum asserts that “on all essential points” Swedes observed agreement in 1943. Swedish memorandum admits that interpretation of some points in agreement may be controversial but states they have always endeavored so far as possible to meet Allied wishes and that machinery set up by agreement exists to settle whatever differences may arise.

On specific points made in our aide-mémoire Swedes reply as follows:

1.
Deficit in Danish clearing does not constitute grant of credit.
2.
Export of means of transport was covered by list of existing [Page 492] commitments presented in London in 1943 before signature of agreement.
3.
Swedes have more than complied with two point letter which bound them only to do their utmost to prevent acceptance of further orders for delivery to Germany in 1943. By exerting pressure on Swedish exporters Swedish Government succeeded in reducing deliveries of bearings during 1943 from 36 million reichsmarks contracted to 28 million reichsmarks.
4.
Regarding iron ore exports Swedes state that if they had not taken special steps these exports would have reached higher figures (they reject Allied interpretation normal trade principles and attach special memorandum on this subject).

Swedes characterize new demands made in aide-mémoire as involving “structural revision” of 1943 agreement. Regarding our request for spacing of iron ore exports Swedes state that it is impossible for them to agree because of commitments they have already entered into.

Regarding bearings Swedish memorandum repeats contents of letter sent by Hägglöf to Foot dated March 375 in which Swedish Government referred to undertaking by SKF that deliveries in any one month will amount to about one-twelfth of total exports for year and that no changes except minor normal ones would be permitted in types ordered by Germany.

Swedish memo closes with statement that in their view no purpose is served [“]in reiterating on every occasion an assurance to fulfill at the best of their ability an undertaking which they have already given”.

Attachment on normal trade doctrine presents same points as those made previously by Swedes on this subject and confirms their willingness to make reduction of only 86,000 tons from 1944 ceiling.

Copy of memo is being forwarded by airmail pouch leaving Stockholm April 11.76

My 257, April 6, 8 p.m. repeats this to London.

Johnson
  1. This Commission, consisting of American, British, and Swedish representatives, was established in Stockholm to assure Allied Governments that Swedish policy was in accordance with various trade agreements including the London Declarations of September 1943.
  2. See telegram 2617, March 31, 8 p.m., from London, p. 481.
  3. Despatch 3145, April 11, from London, not printed.