File No. 657.119/423

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

[Telegram]

677. It having been stated by various newspapers recently that the Prime Minister was opposed to making an agreement with the United [Page 1169] States and that he favored a policy of compensation pure and simple, the Prime Minister has announced that such rumors are unfounded and that he desires conclude an agreement. I called upon the Prime Minister today. He said that the present outlook for an agreement with the United States is exceedingly dark, adding that Norway could not recede from the objections taken to our last proposal and intimating that the difficulties encountered were mainly due to interference of British, French and Italian Governments. The Prime Minister was quite vehement about the possibility that Norway might very soon proceed to a strict policy of compensation and stated that Germany has offered assistance if supplies cannot be obtained elsewhere. While saying that he did not wish to avail himself of Germany’s offer he intimated that Norway would possibly be obliged by circumstances to do so.

I also saw the Minister of Foreign Affairs today. He intimated that if Nansen was unable to conclude the agreement, the transfer of the negotiations to Christiania might have better results. I expressed doubt as to the wisdom of this course and suggested that no such action should be taken in any case before the War Trade Board’s answer to the last Norwegian objections is received. The Minister of Foreign Affairs requested that the schedules of commodities referred to in War Trade Board’s memorandum of April 1 be delivered to Nansen. Ihlen intimated that the War Trade Board was not particularly anxious to make an agreement with Norway.

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Schmedeman