File No. 600.119/256
The British Embassy to the Department of State
Memorandum
sweden’s exports of iron ore
The British Embassy was instructed a few days ago to bring urgently to the attention of the Government of the United States the large shipments of iron ore which were going from Sweden to Germany. These shipments come very largely from the Gulf of Bothnia via the Kiel Canal and through German and Dutch territorial waters where it is impossible to intercept them. The same instructions drew the attention of the Embassy also to certain recent evidence of very large exports of copper ore, iron ore, and sulphur pyrites and pulp, besides quantities of preserved meat, cellulose wadding and steel billets. Action was taken on these instructions verbally, but no official statement on the subject was made to the United States Government in writing.
Now, further information has reached the Embassy which makes the situation even more grave and urgent.
One item of information is that in the three weeks ending June 16th, 83,000 tons of iron ore was exported to Germany from the one port of Oxelösund alone.
Fuller information states that in the two months, May and June last (the shipping season begins on the 1st May) the Swedes have shipped 465,000 tons of iron from Lulea and Oxelösund. They hope to ship during this season two and one-half million tons which they will be able to do at their present rate of shipment unless some steps are taken to prevent it. If they succeed in transporting this quantity, German requirements will be covered up to the end of 1918. Ore is pouring into every available German port, especially Stettin, Lübeck, Hamburg, and Emden. Last year large quantities went via Rotterdam but none appear to have gone by this route since January 23rd of this year. Stettin is however already blocked with traffic and when the other German ports are filled it is anticipated that traffic via Rotterdam will recommence.
The vast importance of these exports of iron ore to Germany is due to the fact that the Germans have built up their munition works and their pig-iron and steel industries to deal with these high-grade [Page 1030] Swedish ores. If these ores were cut off, all munition works would have to be reorganized so as to deal with inferior ores and the pig-iron and steel industries would be seriously in danger.
The Swedish Government argue of course that it is absolutely necessary to have to continue this export in exchange for German coal but this argument cannot be accepted until the Swedish Government have at least shown themselves willing to test fully the possibility of obtaining coal from the United Kingdom. The Swedish Government also argue that they are supplying Great Britain also with iron ore. This is true but British requirements of iron ore annually from Sweden are probably less than one-seventh of what Sweden has exported to Germany in each of the years 1915 and 1916.
In view of these facts the British Government venture to urge upon the Government of the United States that this situation affords an opportunity for strong and effective action at once and that the stoppage of iron ore to Germany should be made the subject of an emphatic demand upon the Swedish Government without delay.
[Received July 16.]