File No. 658.119/139
The Ambassador in Great Britain ( Page ) to the Secretary of State
[Received December 22, 3.15 a.m.]
8041. Our telegram 7946, December 12 , 4 p.m.,1 and your 6061, December 10 , 11 a.m.2 At meeting of subcommittee on iron ore it was tentatively proposed to Swedish delegates that export of best grade Swedish iron ore containing less than .2 per cent phosphorus, the record grade containing .2 to .4 per cent phosphorus, and all slig be entirely prohibited; that all products of these three grades of ore so far as not exported to Allies shall be consumed in Sweden; and that as regards remaining ore containing [Page 1094] higher percentage of phosphorus, subject to satisfactory arrangement that present output shall not be increased during the war, Allies shall have option to purchase up to 50 per cent at same price paid by Germany.
Marcus Wallenberg stated he would telegraph this proposal to his Government but that he could not recommend it and was sure it would be immediately declined. Wallenberg states that a very large part of the highest grade ore can be consumed in Sweden and that considerable quantities will probably be exported to Denmark and Norway next year. He has informally intimated to one of the American representatives that he would be willing recommend to his Government that all ore exports be equally divided between the Allies and Germany. I should like to have early instructions on this point. Wallenberg points out that even this arrangement would present serious difficulties for Sweden as she would be obliged to decrease her exports to Germany who would undoubtedly retaliate by curtailing exports to Sweden of coal and other necessities.
Suggest that Doctor Lundbohm be consulted regarding qualities of the various grades ore produced in Sweden as he is thoroughly conversant with the subject.