File No. 657.119/258

The Minister in Norway ( Schmedeman) to the Secretary of State

[Telegram]

494. War Trade Board’s announcement regarding Norwegian rations and conditions for export to Norway was published in Reuter telegram from London last night and this morning. Press comment here ranges from violent and unreasoning criticism to advocacy of acceptance in the Tidenstegn and the Handelstidende which describe our conditions as the price demanded from Norway as a free buyer of American products.

In conversation with Minister for Foreign Affairs this morning he informed me that Norwegian counterproposal was sent to Washington yesterday after being read for its information to a secret session of the Storthing on January 26. Counterproposal contemplates export to Germany of 4,000 tons ferro-silicon, 12,000 tons calcium carbide, 12,000 tons calcium nitrate, 30 tons molybdenum, and [Page 1117] 40,000 tons pyrites, which last cannot begin to go to Germany until fulfillment of present copper agreement with Great Britain. I told him that I did not believe my Government would accept counterproposal and reiterated what I had previously said on various occasions to the effect that my Government would not, in my opinion, deviate from the line it has taken. I said that while we were desirous of making an arrangement with Norway in consonance with our long-standing friendly relations, I was confident my Government would not permit those relations to be adversely affected by decision of Norway on our proposals, giving him to understand that acceptance or refusal of our proposal would merely determine eventual destinations of the American exports concerned. Minister of Foreign Affairs expressed great satisfaction with the schedule of rations which he considered sufficient after inclusion of a few other commodities. To his repeated remark concerning fear of Germany in the event of acceptance of American demands I replied by recalling his recent statements that Norway did not fear actual war but only possible interference with shipping from America, adding that in any event the United States could not allow the enemy to dictate the terms of a commercial agreement between the United States and a neutral state. London informed.

Schmedeman