File No. 658.119/140

The Ambassador in Great Britain ( Page) to the Secretary of State

[Telegram]

8043. My 8014, December 20, 9 p.m. [a.m.] At further meeting of tonnage subcommittee to-day it was decided to add following paragraph to those quoted in my 8014 December 20, 9 p.m. [a.m.]

The rates for Swedish vessels time-chartered by the Inter-Allied Chartering Executive, trading in the danger zone, under this agreement are to be as follows: up to 500 tons, 58 shillings per ton dead weight per month; 500 to 1,000, 54 shillings per ton dead weight per month; 1,000 to 2,300, 49 shillings per ton dead weight per month; 2,300 to 4,000, 46 shillings and 6 pence per ton dead weight per month; 4,000 to 6,000, 43 shillings and 6 pence per ton dead weight per month; over 6,000, 41 shillings and 6 pence per ton dead weight per month.

Charters on the usual Inter-Allied Chartering Executive terms. Charterers will be responsible for war risk on the following values: steamers under 10 years old, 50 pounds per ton dead weight; steamers [Page 1095] 10 years to 30 years old, 40 pounds per ton dead weight; steamers over 30 years old, 30 pounds per ton dead weight. Charterers also agree, if requested to do so by the owner, to insure the excess value up to 35 per cent of the value indicated above at a premium of 3 per cent per month payable by the owner.

In view of these undertakings on Sweden’s behalf, the Allied delegates on the committee decided to recommend to plenary committee that the eight items of the Swedish modus vivendi be granted in toto. American representatives stated that they made distinct reservations on each point and would not participate in the above recommendation to the plenary committee. Negotiations for tonnage are therefore at a standstill pending the receipt of your instructions.

In this respect we are not authorized to commit the Government of the United States to any decisions that may be reached in Swedish negotiations. It is essential that instructions be telegraphed at the earliest possible moment. Otherwise we shall be placed in the very embarrassing position of delaying negotiations on every point discussed and will not be able to conclude negotiations by the time the Swedish Parliament convenes on January 15 which, as I have previously pointed out, would be most unfortunate.

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