File No. 658.119/355

The Ambassador in Great Britain ( Page ) to the Secretary of State

[Telegram]

9987. War Trade Board [from Sheldon]:

No. 552. Referring my 535, Embassy’s 9941, May 8, 6 p.m.2 Upon resumption of Swedish negotiations Mr. Wallenberg and Mr. Carlsson, the Swedish delegates, proposed the following modification in the [draft] agreement of February 18, 1918.2 Tonnage to be reduced to 400,000 tons,3 of which 200,000 tons would be for the danger zone and 200,000 tons for use outside. The adequacy of [Page 1226] charter rates outside of war zone is also questioned and introduced subject to further discussion. The Swedish delegates stated that licenses might be given for charter to the Allies of additional vessels which later may be found not actually required for lifting rations, and that a clause in the agreement to this effect might be arranged. In clause 2(A)1 they desire [added] export to Central Powers up to 6,000 tons of carbide. In clause 2(B)1 they desire to add 40 tons of lead, 30 tons of tin and 100 tons of zinc for manufacture in Germany and now also to substitute 50 for 30 tons copper and 150 tons for 37½ tons rubber waste.2 In clause 13 they desire to export to Germany 75 tons per annum molybdenum ore and to increase exportation of ferro silicon to Germany to 7,000 tons with permission to export 2,000 tons additional elsewhere. In clause 71 Sweden desires to commence rations on June 1 including in the first quarter all imports from April 1.

In clause 104 exportations of iron ore to Central Powers to be increased from 3,000,000 tons to 3,500,000 tons per annum of which 750,000 tons to contain less than 0.1 per cent phosphorus. We are endeavoring to have Sweden agree that of said 750,000 tons 350,000 tons only shall contain phosphorus .02 or under.

In clause 25 they desire sulphite pulp increased to 89,000 tons, sulphate pulp to 88,000 tons, and paper and products to 59,000 tons.

The Allied representatives desire to adhere to terms of the original agreement with reference to molybdenum and waste rubber unless additional rubber waste is sent to England for reclaiming.

Modification with reference to pulp and paper might be agreed to provided that textile rations were contingent upon the pulp and paper figures in the original agreement not being exceeded. Exportation of carbide might be conceded.

The above covers principal points so far developed.

Page
  1. Not printed.
  2. Not printed.
  3. It had been set at 500,000.
  4. Cf. the same articles of the final text, post, p. 1240.
  5. Cf. the same articles of the final text, post, p. 1240.
  6. Cf. art. 2(C) of the final text.
  7. Cf. art. 3 of the final text.
  8. Cf. the same articles of the final text, post, p. 1240.
  9. Cf. art. 12 of the final text.
  10. Cf. art. 13 of the final text.