File No. 658.119/331
The Minister in Sweden ( Morris) to the Secretary of State
[Received 9.05 p.m.]
1934. The Swedish commission which went to Germany, see my 1824, April 3, 4 p.m.,1 has now reported fully to the Swedish Government here, and as a result of these conferences, the Swedish Government has sent to its representatives in London a final proposal. In an interview today with the Swedish Minister for Foreign Affairs concerning London negotiations, I obtained the following information: [Page 1223]
- 1.
- That Sweden’s export to Germany [is] 3,500,000 tons iron ore of which 750,000 tons of low phosphorus iron ore.
- 2.
- That existing contracts with Germany could not be broken and cover shipments of specific quantities of wood pulp, cellulose, pyrites, ferro alloys and ferro silicon, in exchange for coal, furnace coke, sugar beet seeds and other articles of essential value; that if the possibility to export is hindered, the basis on which Sweden began negotiations, namely, to be permitted to have commercial relations with Germany, is destroyed according to Swedish point of view.
- 3.
- On other points, agreement may be reached without great difficulty.
The Foreign Minister stated that maximum shipments of 3,500,000 tons of iron ore, of which 750,000 tons to be low phosphorus ores, is the most that would be offered to Germany. He still fears indiscriminate sinking of Swedish boats if other restrictions are accepted. He stated that 400,000 tons of shipping was all that the shipowners would offer, 200,000 tons of which to be used for war-zone purposes.
The Swedish Minister of Marine stated in a private conversation that in Swedish Government’s opinion, the situation is grave and that if agreement is not concluded, the Government will probably resign giving the lead to Conservatives who are working on treaty with Germany augmenting exportation of iron ore to 6,000,000 tons; that all Socialists, even Branting and Adelsward, agree with the standpoint of the Government on the London negotiations.