File No. 658.119/159
The Ambassador in Great Britain ( Page ) to the Secretary of State
[Received January 12, 1.56 a.m.]
8242. War Trade Board from Sheldon:
Referring to your telegram January 6 [4].1 In view of the urgent needs of Swedish shipping now in British and French ports for carrying coal to France and Italy, for which no other tonnage available, and as the need of coal in Italy especially is considered very acute [Page 1202] from a military point of view, British Foreign Office are of the opinion that the modus vivendi with the Swedes to secure this tonnage is desirable even if no more than 100,000 tons dead weight be made available immediately. I would point out, however, that an important clause in this modus vivendi that will be proposed by the Swedish delegates to their Government is the following: “As regards Swedish boats now lying idle in Swedish ports, the Swedish Government will grant licenses for such vessels to resume trading voyage by voyage pending the conclusion of a general agreement and will not obstruct direct negotiations between Allies and Swedish shipowners for this purpose.” This is subject to vessels not being actually required for service of Sweden and for bunkering facilities and examination at a port of danger zone being accorded and on the further express condition that these vessels shall be enabled to return to a Swedish port in ballast, if desired, on completion of the charter. Swedish shipowners also will be permitted to charter to Belgian Belief Commission, and all Swedish ships at present engaged in trade of interest to the Allies will be allowed to continue in such trade.
In return for this 100,000 tons dead weight and for any further ships now in Sweden that might be obtained under the above arrangement, it is proposed to offer—
- (1)
- Release of Jemtland and Österland which will be chartered to Allies for service outside war zone, either for three months or round voyage [with] redelivery in United States ports;
- (2)
- 25,000 tons phosphate rock to be licensed for export;
- (3)
- 15,000 tons illuminating oil, 4,000 tons fuel oil;
- (4)
- 15,000 tons maize, 5,000 tons oil cake now lying in Buenos Aires for the account of Sweden;
- (5)
- 21,000 bags of coffee liberated and license to import additional 25,000 bags;
- (6)
- Release of dried fruit and cocoa only;
- (7)
- Cork for insulating purposes;
but no articles which have been refrigerated to be exported without (consent of?) Allies.
The above arrangements prepared for use of 100,000 tons entirely in French and Italian trade.
If it were not for the urgent need of this particular tonnage, I feel sure Great Britain would not recommend these concessions, and while awaiting your answer as to your agreement on the above points the situation may change. I should like to have definite instructions as to your approval should the Allies decide on the above lines. Against the boats necessary to the above-mentioned rations [Page 1203] to Sweden, equal amount of similar tonnage from Swedish ports should leave for United States of America in exchange as is proposed in the Dutch modus vivendi. I am informed that a copy of the Swedish-tonnage modus vivendi is being cabled tonight to Sir C. Spring Rice.