868.48/12–1644: Telegram

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

5142. My 4926, December 2, noon. Swedish reply to joint démarche of November 30 was communicated orally to American and British Ministers December 14 at Foreign Ministry. Although Grafstrom, Stahle, Lundborg and Ripa of Foreign Ministry were present, Gunnar Carlsson, representing Swedish shipowners did most of talking. He emphasized that owners have no desire to withdraw ships.

Carlsson said shipowners had at time when each ship was released signed guarantee to German Government covering return of ship in question to Sweden. These guarantees fall into two types, viz.: type (a) requiring owner to bring ship back to Sweden whenever Germans so request and (b) later type which merely specifies ship must return to Sweden when purpose for which it was released shall have been accomplished.

Type (a) guarantee applies to Akka, Formosa, Boolongena, Fenris and Parramatta (perhaps also to Boreland and one other vessel).

Shipowners feel type (a) guarantee constitutes obligation which would have to be complied with should Germans so demand. Therefore, some solution is necessary to get around need for such compliance.

Swedish Government licenses for validity of charters covering Greek relief vessels were formerly issued for 6-month periods. However, recent licenses have been limited to 3 months. Carlsson suggests that present charters on vessels bound by type (a) guarantee be replaced at once (not prolonged) by new charters valid for 6 months. After these new charters take effect Swedes will be in position to reply to an eventual German demand for return to Sweden of ship in this group by saying ships will return at expiration of charters. Shipowners might add that return trip requires Allied safe conduct and Allies refuse to authorize return of ships until charters expire.

Swedes do not regard type (b) guarantee as sufficient basis for Germans to demand return of ships while they are still engaged in traffic for which originally released. They are convinced this group of ships can be kept in traffic for at least 6 months without heeding any efforts on part of Germans to force their withdrawal.

Carlsson stressed that neither type of guarantee requires return of ships to Sweden merely in case safe conduct is withdrawn. If Germans cancel safe conduct, shipowners will be informed by Swedish authorities that it need cause no alarm and ships should continue in [Page 214] traffic. (Second point in Swedish note of October 19 reported in my 4258, October 19, 6 p.m., indicated that in case of cancellation of safe-conduct shipowners would decide individually whether vessels should continue to sail as before, with understanding that Red Cross markings be retained. Carlsson’s present remarks developed this point by indicating Swedish shipowners may be expected to continue. Presumably possibility cannot quite be excluded that some individual shipowner might insist on withdrawing his ships.)

Stahle made it clear that Swedish Government would deal favorably with applications for 6-month licenses. Although new 6-month charters are not really necessary to insure continuance of ships with (b) type guarantee, Swedes may for sake of uniformity also want such charters for their group.

Carlsson said he would begin at once preparing new charters. Steps are: (1) Approach Swedish Red Cross; (2) get new charter parties signed; (3) obtain license which renders charters valid for 6 months. Matter is urgent if only because new charters should be in force before Swedish intentions regarding Allied shipping pool become public. News of these intentions may provoke angry reaction from Germans.

Carlsson said he thought convoys should be avoided.

Swedish reply outlined above constitutes a type of informal assurance that, without heeding any adverse steps Germans may take, Swedes plan to keep Greek relief fleet in service for at least 6 months to come. Stahle stated this arrangement was best Swedes could do and British Minister and I believe that it represents limit to which they are willing to go in order to meet our wishes.

Definite lists of ships affected by guarantees (a) and (b) will be telegraphed as soon as Foreign Ministry obtains particulars from Carlsson.

Although he is at present unable to communicate with his Government Greek Chargé is prepared to sign new charters in accordance with usual procedure if American and British Ministers so recommend. Sir Victor Mallet and I consider that basic assumption of our démarche of November 30 (paragraph 1 of Department’s 2329, November 18, 9 p.m.) justifies our giving this recommendation and we shall do so as soon as charter parties are ready, unless contrary instructions are received.

Please instruct whether in case Swedes prepare new charters for ships under type (b) guarantee, we should also give Greek Chargé recommendation to cover these vessels.

Johnson