File No. 658.119/316
The Secretary of State to the Ambassador in Great Britain ( Page )
7330. For Sheldon [from War Trade Board]:
No. 353. Your No. 427, Embassy No. 9509, April 13, 11 p.m. After consideration by counsel, we are prepared to accept the interpretation [Page 1222] placed upon the modus vivendi by Swedish Government and British Foreign Office, to the effect that the Swedish Government did not obligate itself to charter to the United States Shipping Board for four months the replacing steamers to be sent from Sweden under clause 10 of the modus vivendi and clause 3 of the provisional tonnage arrangement. We are accordingly withdrawing our demand that such chartering should occur as condition to releasing the modus vivendi cargoes from this side.
We feel, however, the modus vivendi clearly contemplated that a substantial amount of shipping would be chartered to us by the owners under above-mentioned clauses and we shall continue to urge upon the owners that they enter into such charters and we shall count upon the friendly assistance of Swedish Government in this matter.
In respect to distribution of oil Swedish Legation has proposed plan whereby approximately 75 per cent of modus vivendi and Christmas agreement oil will be distributed through Standard Oil firms in Sweden, the balance to go to British-controlled companies. This we understand to be substantially the same arrangement as has been in force since the war and will be accepted by us in so far as relates to these particular shipments of oil.
You may inform the Swedish Minister of our attitude as above expressed. Morris will be advised.