File No. 658.119/316
The Ambassador in Great Britain (Page) to the Secretary of State
[Received April 13, 9.45 p.m.]
9509. War Trade Board [from Sheldon]:
No. 427. The Swedish Minister showed me this morning a telegram he had received from America stating that no further Swedish ships [Page 1220] would be released with modus vivendi cargoes until replacing steamers sent out were chartered to the United States Shipping Board for four months, according to modus vivendi. I would point out that clauses 10 of the modus vivendi and 3 of the provisional Swedish tonnage arrangement are those that determine this question.1 The latter clause does not contain a guarantee from the Swedish Government for time-chartering of replacing steamers but only an undertaking to grant licenses if such licenses be applied for. British Foreign Office takes this view also. Swedish Minister further informed me that he had received a communication from his Government stating that it was reported that licenses for oil under the modus vivendi [have] been withheld unless 75 per cent was to be distributed by the agencies of American companies. I informed him that I had heard nothing of any such arrangement and would telegraph concerning it. Please cable me on the foregoing two points immediately. The Swedish Minister informed me that such misunderstandings were very regrettable as they cause considerable apprehension in Sweden and furnish opportunities for attacks by pro-Germans against Sweden coming to any arrangements with the Associated Governments. It is very desirable, under present circumstances, that conventions which have been entered into should be carried out with the least friction possible.
Referring my 364, April 2.2 We have now received from Swedish delegate lists mentioned in clauses 2 and 3 of provisional tonnage arrangement of Swedish modus vivendi. British Foreign Office say that the Swedish Government “appear therefore justified in claiming that all idle vessels in American ports are required to load for Sweden but not in claiming also the replacing vessels sent out from Sweden under clause 10. The lists still require revision and some of the replacing vessels will probably be required to load for Sweden but these must in turn be replaced by further vessels from Sweden.”