Papers Relating to the Foreign Relations of the United States, 1918, Supplement 1, The World War, Volume II

Agreement of May 29, 1918, between the “Associated Governments” and Sweden, the United States Memorandum of Adherence, and Annexed Letters¹

May 29, 1918

Agreement between the British, French, and Italian Governments and the Swedish Government

Article 1

The British, French, and Italian Governments (hereinafter called “the Associated Governments”) will facilitate the importation into Sweden of the articles enumerated in the first schedule hereto (hereafter called “the rationed articles”) to the limit of the quantities set out in the said schedule, subject to the special conditions therein stated with regard to certain of such articles, and consistently with their own requirements.

Article 2

(A) The Swedish Government will effectively prohibit the export, directly and indirectly, of all rationed articles, their products (including by-products and waste), covering the terms of the guarantees hereafter mentioned, and “articles similaires” (as hereafter defined) to the Central Powers and their allies, and further they will effectively prohibit the export to the Central Powers and their allies, directly or indirectly, of:—

(1) All foodstuffs, animal and vegetable, and feeding-stuffs of any description except cranberries;

(2) All skins, hides, leather, leather manufactures and tanning materials;

(3) All wool and woollen manufactures, waste and yarn; cotton, cotton waste, yarn and manufactures; textiles made of paper;

(4) All ores, including pyrites, and metals, including steel containing ferro-alloys, except iron ore (subject to article 12 hereof), steel containing not more than 1 per cent, of manganese, and pig-iron containing Swedish manganese;

(5) Sulphuric, nitric, hydrochloric acids; sulphates of copper and of nickel; the export of acetic acid and acetates, chlorates and perchlorates to the Central Powers and their allies not to exceed in any quarter the quantities of similar articles exported to them in the corresponding quarter of 1917;

(6) Carbide in excess of 1,500 tons per quarter; cyanamide.

(B) No objection “will be taken to the export to the Central Powers or their allies of:—

(1) Small quantities of copper, brass, tin, aluminium, rubber, and rosin in manufactured articles exportable under this agreement not exceeding 7½ per cent, of the total value of the manufactured article, provided that the export shall not be allowed in the case of any article which is now or may hereafter be on the Associated Governments’ lists of absolute or conditional contraband, or in the case of any article which is commercially capable, by any process, of being reduced to its original constituents, and provided also that the amount so exported in any quarterly period shall not exceed the average normal trade prevailing before the war, and that the Associated Governments will be furnished as soon as possible, and before this provision is acted upon, with a list of such manufactured articles;

(2) Tin, lead, nickel, aluminium, copper, brass, and rubber in compensation for a corresponding quantity of the same raw materials contained in an article imported from the Central Powers or their allies, in cases where such compensation has been made an absolute condition of the export of the article to Sweden, provided that the amount so exported in any quarterly period shall not exceed 7½ tons of tin, 10 tons of lead, 2½ tons of nickel, ½ ton of aluminium, 50 tons of copper and/or brass, and 1¼ tons of rubber;

(3) 25 tons per quarter of zinc for manufacture and return to Sweden.

(C) No objection will be taken to the export of rubber waste, not exceeding 37½ tons per quarter to Denmark (or additional quantities to the Associated countries) for reclamation and return to Sweden, on terms to be arranged.

(D) It is expressly understood that no exportation under the terms of clauses (B) or (C) of this article will be allowed to take place except under certificate from the Swedish Handelskommission to the effect that they have satisfied themselves that the several conditions laid down have been exactly fulfilled, and that the Swedish Government will take the necessary steps to secure that the provisions of clauses (B) (3) and (C) as to return are exactly performed.

(E) “Articles similaires” shall include the articles enumerated in clause (A) of this article, and other articles to be agreed, which shall be the subject of a separate document.¹

(F) In case there may be articles the export of which is prohibited under this agreement because they contain imported articles or their products, but which are not of any material significance, application may be made through the Swedish Handelskommission or the Importing Associations hereafter mentioned to the representative of the Associated Governments in Stockholm for dispensation from the undertaking not to export such articles, and such dispensation will be granted in all proper cases.

Article 3²

The Swedish Government will effectively prohibit the export, directly and indirectly, of (a) ferro-alloys and steel-hardening materials; (b) mica, micanite, and mica manufactures; (c) tin-plates and terne-plates; (d) cork, manufactures of cork, and cork waste; (e) rosin, including Swedish rosin, or turpentine, oil or other derivatives thereof, wood-pitch, wood-tar, wood-tar oil, and resin oil to any country other than the Associated countries, with the following exceptions, viz., (1) on the express understanding that a contract exists for the supply to Germany of 50 tons of molybdenum ore before the 25th October, 1918, and that such contract cannot be cancelled, the Associated Governments agree that a total quantity of molybdenum ore or concentrate of Swedish native origin not exceeding 50 tons, and containing not more than 15 tons of molybdenum may be exported to the Central Powers and their allies or to other destinations from the date hereof up to the 25th October, 1918, but with that exception no material containing molybdenum in any form shall be exported from Sweden except to the Associated countries so long as the war continues, whether or not this agreement shall have terminated, and the Swedish Government will effectively prohibit the importation into Sweden of molybdenum in any form from the date hereof until the end of the war; (2) ferro-silicon (including ferro-silico-manganese) may be exported to the limit of 1,750 tons per quarter to the Central Powers and their allies, and to the limit of 500 tons per quarter to other destinations; (3) wood-pitch, wood-tar, wood-tar oil, and resin oil obtained without the aid of any imported article to the limit of 2,000 tons per quarter of Wood-pitch, wood-tar, and wood-tar oil in all, and 750 tons per quarter of resin oil, may be exported to the Central Powers and their allies, and wood-pitch and wood-tar may be exported to Holland and Denmark in quarterly quantities not exceeding 1917 quantities.

Exports to other destinations, where permitted under this article, shall be subject to article 4 in the case of exports to Holland, Denmark, Norway, Russia, Finland, and Roumania.

Article 4¹

Articles prohibited from export to the Central Powers and their allies under article 2 (A) and (E) hereof may be exported to Holland only if consigned to the Netherlands Oversea Trust with their consent; to Denmark only on production to the Swedish Handelskommission of a certificate showing that the Merchants’ Guild or Chamber of Manufacturers of Copenhagen have given a guarantee satisfactory to the representative of the Associated Governments in Denmark; to Norway only if consigned to or guaranteed by an association with whom the Associated Governments have an agreement, and in other cases under the usual guarantee in force in Norway attested by the Norwegian Minister of Finance; and to Russia, Finland, and Roumania only with the consent of the representative of the Associated Governments in Stockholm, provided that the conditions of export to Russia, Finland, and Roumania may be reconsidered from time to time.

Article 5²

The Swedish Government undertake that associations will be forthwith formed in Sweden of traders engaged in the importation of the rationed articles, which associations, subject to clause (e) of this article, will be responsible for the distribution of the rationed articles in Sweden, and further that—

(a) The rationed articles will be consigned to the associations (subject to clause (e) of this article), but the secondary consignees shall be named in the bills of lading, and the associations will only deliver to such consignees.

(b) In respect of each consignment of the rationed articles the appropriate association in advance of shipment will forward to an office, to be opened by the importing associations, in London, for communication to the representatives of the Associated Governments in London, a written guarantee in respect of such consignment in the appropriate form set out in the second schedule hereto.

(c) Such association will not deliver any such articles so imported by them as aforesaid to the secondary consignee without first having obtained from such consignee a written guarantee in the appropriate form set out in the second schedule hereto, but before accepting the last-mentioned guarantee such association will satisfy itself that such consignee intends to fulfil the terms of the guarantee.

(d) In order to facilitate expedition in the conduct of the businesses of the associations, and to minimise as far as possible delay to vessels carrying rationed articles, communication with regard to such importations (subject to clause (e) of this article) may be made direct between the said associations and the representatives of the Associated Governments in Sweden, and, if required, duplicates of the guarantees will be handed to them.

(e) Whenever any of the rationed articles shall be imported by the Swedish Government, or a department of the Government, or by the Swedish Victualling Commission, such articles shall be included within the ration, and the Swedish Government hereby give their assurance that such articles and their products (including by-products and waste) shall be consumed only in Sweden, and that no department will act as consignees of articles imported into Sweden unless the same shall be bought and paid for by such department for their own use.

(f) If any of the rationed articles or their products should reach the Central Powers or their allies, the person, firm, or company in Sweden to whom such articles or products have been delivered shall not be entitled to receive any further articles from the associations, and where information is in the possession of any of the Associated Governments which shows that any article consigned to an association is not intended for home consumption in Sweden, such association will, if requested, retain the same pending investigation and a decision being arrived at.

(g) The Swedish Government will make no objection to information reasonably required for the purposes of this agreement being obtained by the associations and/or the Swedish Handelskommission, and supplied by them to the representatives of the Associated Governments.

Article 6

Consignees of articles imported into Sweden in barrels or casks or with textile coverings as packing will furnish an undertaking in respect of such coverings in the form set out in the second schedule hereto.

Article 7¹

The rations shall be quarterly, except as may be agreed from time to time, due regard being had to shipping difficulties and seasonal articles. Balances unimported may be carried forward from one quarter to the next quarter.

The rations shall commence on the 1st June, 1918, but shall include in the first quarter all imports into Sweden from the 1st April, 1918, including articles imported under the modus vivendi and articles released for Swedish use subsequent to the 1st April, 1918, provided that imports of articles specified in the first schedule hereto from Russia and Finland shall count as one-half of the quantity actually imported.

Article 8¹

There will be drawn up a free list, consisting of articles which may be imported into Sweden without guarantees, subject to revision from time to time. If any difficulty should be experienced with regard to the importation into Sweden of articles other than the articles specified in the first schedule hereto and the free list, it is agreed that such difficulty shall be the subject of discussion with a view to early adjustment.

Article 9

The Swedish Government will communicate promptly to the Associated Governments at regular intervals monthly statistics of—

(a) Imports of rationed articles (ship by ship);

(b) Exports of articles in respect of which the Associated Governments may request such information (showing countries of destination).

In respect of all rationed articles and other articles imported into Sweden, whether by land or by sea, for which declarations against re-export have been given, copies of the certificates of entry will be furnished to the representative of the Associated Governments in Sweden immediately after the arrival of such articles in Sweden.

Article 10

The Swedish Government agree to the terms of the Swedish tonnage arrangement contained in the third schedule hereto, and the same shall form part of this agreement.

Article 11²

The British Government will grant licences for the export of coal to Sweden for Swedish consumption up to 150,000 tons per month.

Article 12³

(A) In view of the fact that the Associated Governments are willing, as hereafter mentioned, to purchase 2,000,000 tons of Swedish iron ore, the Swedish Government undertake that the exports of Swedish ore from the 1st July 1918 (including the quantity purchased by the Associated Governments under this agreement, but not exported), will not exceed 6,000,000 tons per annum, and that of such exports the quantity exported to the Central Powers and their allies, directly and indirectly, will not exceed 3,500,000 tons per annum, such exports in any one quarter to be proportionate in amount to the exports to those countries in the corresponding quarter of 1917, and, of such exports to the Central Powers and their allies, the Associated Governments, on the understanding that the exports of low phosphorus ore and slig from Sweden in 1917 containing less than 0.1 per cent. of phosphorus were not less than 1,400,000 tons, agree to 750,000 tons being low phosphorus ores and slig, in the following proportions, viz., 375,000 tons containing less than .02 per cent. of phosphorus and 375,000 tons containing a percentage of phosphorus between .02 and 0.1, the Swedish Government undertaking that these figures will not be exceeded and that the exports of such low phosphorus ores and slig to the Central Powers and their allies in each quarter shall be proportionate in amount to the exports to those countries of such low phosphorus ores and slig in the corresponding quarter of 1917.

(B) The Associated Governments will purchase 2,000,000 tons of Swedish iron ore from the Trafik Aktiebolaget Grängesberg-Oxelösund in the year from the 1st July, 1918, and they shall have the right to purchase from any source in Sweden a further quantity up to 500,000 tons per annum of ores of any class which they may be able to purchase. The Swedish Government will give all facilities within their power for the storage or export at any time of iron ore purchased by the Associated Governments and for transit to Narvik for shipment therefrom, if so desired.

(C) The restrictions and provisions of clauses (A) and (D) hereof shall continue in force so long as this agreement remains in force. But if on the termination of this agreement the British Ministry of Munitions shall exercise the right conferred by the contract with the Trafik Aktiebolaget Grängesberg-Oxelösund to give two months’ notice to terminate their obligation to take deliveries of iron ore under the option of purchase contained in the said contract, the restrictions and provisions of clauses (A) and (D) and the provisions of article 9, as far as the latter relate to statistics of exports of iron ore, shall continue in force and remain binding until the expiration of such notice.

(D) Exports of iron ore from Sweden to Holland, Denmark, Norway, Russia, Finland, and Roumania will be subject to the provisions as to exports to those countries contained in article 4 hereof.

Article 13

(A) The export of pulp and paper from Sweden to the Central Powers and their allies in any one year, calculated as to the 1st June, shall not exceed the quantities exported in 1917, viz.:—

Sulphite pulp	89,000	tons
Sulphate pulp	88,000	“
Paper and products thereof	59,000	“

The quantity of each of the above articles exported in any one quarter shall not be greater than the quantity of each which was exported in the corresponding quarter of 1917.

(B) Should the export in any quarter exceed in the case of—

Sulphite pulp	60/89	parts
Sulphate pulp	67/88	“
Paper, including the products thereof	27/59	“

of the export in the corresponding quarter of 1917 the following reduction shall be made in the textile rations during the succeeding quarter, viz.:—

for every 10 tons of sulphate or sulphite pulp exported in excess, the textile rations shall be reduced by 1¼ tons, and

for every 10 tons of paper or the products of paper in excess, the textile rations shall be reduced by 5 tons, in the following proportions, viz.:

Cotton	by	43	per	cent
Cotton manufactures	“	9	“	“
Hemp	“	9	“
Jute	“	14	“	“
Silk	“	1	“	“
Wool	“	20	“	“
Woollen manufactures	“	4	“	“
		100	“	“

If the reduction which applies to the textile ration in any quarter shall exceed the actual rations for that quarter, the rations for the succeeding quarter or quarters shall be reduced by the amount of the excess until the same shall have been satisfied.

(C) The British Government will cause the embargo on the import of Swedish paper and pulp to be removed if satisfactory arrangements are made for the payment of purchases of Swedish paper, paper yarn, and pulp, by loan or otherwise.

(D) Exports of pulp, paper, and products thereof from Sweden to Holland, Denmark, Norway, Russia, Finland, and Roumania will be subject to the provisions as to export to those countries contained in article 4 hereof.

Article 14¹

The Swedish Government will facilitate exports from Sweden to the Associated countries.

Article 15

The Swedish Government will grant licences for and will transport to and from Russia and Finland, if requested by the Associated Governments, freely and without compensation, subject to the reasonable requirements of the Swedish State Railways, all articles other than those specifically enumerated in the Swedish Ordinances of the 9th January, 1915, and the 25th May, 1917, respectively, not less in amount than 3,000 tons per week, both in winter and summer, viâ Haparanda, with an additional amount of not less than 3,000 tons per week by other lines when the ports of the Gulf of Bothnia are open, provided, however, that if at any time, owing to hindrances on importation caused by belligerent action of the Associated Governments, there shall be a scarcity of supplies in Sweden of any particular class of article required for Swedish home consumption, the Swedish Government may decline to give transit facilities in respect of such class of article so long as such scarcity so caused shall continue.

Article 16

The Swedish Government agree to the financial terms contained in the fourth schedule hereto, and the same shall form part of this agreement.

Article 17

The Associated Governments reserve their rights (a) of visit, search, and (if necessary) detention of vessels, and (b) of placing in the Prize Court any shipment in respect of which they have evidence in their possession justifying such procedure, provided that in the event of failure of such proceedings the party affected shall be entitled to claim compensation in the Prize Court, but so long as this agreement remains in force the Associated Governments undertake to allow shipments made thereunder to proceed with the least possible delay.

Article 18

The expression “the Central Powers and their allies” herein shall include territories in their occupation. The expression “Associated countries” means Great Britain and any country associated with Great Britain in the present war, and does not include Russia, Finland, or Roumania.

Article 19¹

(i) This agreement shall come into force on the 1st June, 1918, but if any difficulty should occur in the prompt delivery of the tonnage to be chartered to the Associated Governments, as provided in clause 14 of the tonnage arrangement, the Associated Governments shall be entitled to delay or suspend the whole or part of their performance of this Agreement until the difficulty shall be removed.

(ii) It shall remain in force for the period of the war subject to the right of the Swedish Government or the Associated Governments to terminate it by two months’ notice at any time after the end of the first six months, but termination shall not affect obligations attaching under this agreement to articles then already imported or shipped or to be shipped under clause (iii) of this article to Sweden, or articles then already purchased in Sweden by any of the Associated countries under this agreement and the provisions of this agreement appertaining thereto shall continue in force. In the case of tonnage, termination shall operate as is provided in the Swedish tonnage arrangement.

(iii) If at the date of such termination there should be any unimported balance outstanding of any rationed articles, arrangements will be made with a view to facilitating the importation by the associations of such articles up to the limit of the rationed quantities proportionate to the period during which this agreement shall have been in force, and in that event the provisions of this agreement appertaining to the imports of such articles shall remain in full force and effect.

(iv) Termination shall be subject as regards iron ore to the provisions of article 12 in that behalf, and as regards molybdenum to the provisions of article 3 in that behalf.

the first schedule²

	Tons
Bread cereals to include if required 50,000 tons of cereals other than wheat and rye; delivery to be subject to special arrangement3	250,000

Quantities calculated at yearly amounts, except where otherwise stated.

				Tons
Fodder (including oil cake) except as to one-third importable before August 1918, to be importable between August 1918 and June 30th, 1919 (subject to prohibition of export of cattle to the Central Powers and their allies) 15 months’ ration				300,000
Cocoa and preparations				1,900
Coffee				25,000
Tea				240
Spirits (only brandy and whiskey)				1,500
Wines				2,000
Fresh fruit (excluding any imported from Holland)				2,500
Dried fruit				5,000
Nuts and kernels				750
Spices, including pepper and pimento 400 tons, total (Any excess up to total of 800 taken from Holland.)				500
Oils and fats—
Linseed—20,000 tons—linseed oil (Linseed imported into Sweden from Russia or Finland after 7th December, 1917, to be included at the oil equivalent in the 1918 ration, but to be counted as half ration.)				6,000
Other technical oils				12,000
Other seeds				800
Edible oil and fats1				7,000
Mineral oils—
Lubricants (Subject to an undertaking not to supply oils to non-Swedish vessels in Swedish ports unless requested by the representative of the Associated Governments.)				15,000
Petrol				10,000
Petroleum				90,000
Fuel oil				18,000
Soap				250
Camphor				10
Gums (Plus 125 tons to be obtained from Holland. If it is not obtainable from Holland, the position will be reconsidered.)				125
Raw rubber				400
Rubber tyres				250
Other rubber manufactured goods (An increase in the raw rubber ration up to an additional 100 tons will be considered, provided an equivalent reduction is made in the ration of rubber tyres and manufactures.)				400
Paraffin wax (Exclusive of 900 tons already released from the British Prize Court.)				2,000
Other waxes				40
Coir yarn				100
Varnishes—
Spirit varnish				10
Oil varnish				80
Other varnishes				360
Binder twine and sisal fibre according to the estimated harvests, if found to be required				2,000
Textiles (see article 13)—
Cotton and cotton manufactures				18,000
Hemp, excluding sisal				3,000
Jute				5,000
Silk, other than raw or waste, including mixed silk tissues				250
Wool (2,000 extra if from Australia)				5,000
Woollen manufactures				1,200
Corkwood				2,000
Vegetable fibres—
(a) Bast piassava and other fibers				500
(b) Rice root				200
Tanning materials, hides, and leather2—
(a) Tanning materials (at 30 per cent. tanning content)				8,000
(b) Hides and leather, &c. (proportion of each to be arranged)				7,200
Tobacco				4,500
Alloys, white metals				400
Antimony				50
Copper and copper alloys				8,000
Ferro alloys and steel hardening agents—				Tons
(To include articles licensed by the British Ministry of Munitions.)
Ferro-manganese				4,000
Ferro-chrome				500
Ferro-tungsten (or equivalent in tungsten)				30
Ferro-vanadium				5
Lead				2,000
Tin				700
Tin-plates and terne-plates				5,000
Asbestos and asbestos waste				400
Borax and boracic acid				400
Citrate1 and tartaric acid				100
Saltpetre—
(a) From overseas				25,000
(b) From Norway				10,000
Raw phosphates				80,000
Graphite				400
Graphite crucibles				200
Phosphorus—
Pure phosphorus				100
Sesqui sulphide				50
Sugar and syrup				8,000
Rosin				4,000
Aluminium				400
Nickel silver				75
Mercury				5
Anodes				9
Nickel sulphate				112
Nickel				100
Soda ash (including carbonate)				10,000
Canned fruit and other canned provisions				230
Starch and sago				250
Anti-fouling composition				300
Bamboos, rattans, and canes				100
Bamboos, rattans, and canes				100
Clover seed	}	if from Russia and Holland	{	400
Grass seed				600
Antimony sulphide				50
Rice				12,000
Sulphur				10,000
Mica (from Norway), micanite, and mica manufactures2				40

the second schedule

I

Ordinary Form of Guarantee by the Importing Association

Whereas _______ of _______ is desirous of importing _______ from _______

Now, therefore, the _______ Association guarantee to the Associated Governments—

1. That the said Association will not deliver any part of the said goods if imported by them to the said _______ without having first obtained from the said _______ an undertaking in the form provided in an agreement made the _______ day of _______ between the Associated Governments and the Swedish Government.

2. That the said goods shall be imported only into Sweden, and when imported neither the said goods nor any part thereof, nor any goods manufactured therefrom, in any form (whether as by-product, waste, or otherwise) shall be exported unless export of such goods can properly be made under the said agreement, and then only in strict accordance therewith.

4. That in the event of breach of the said undertaking, the said Association will proceed to enforcement of the penalties therein provided, and no further goods will be delivered to the said _______.

(Signed) _______

II

Ordinary Form of Undertaking by the Swedish Importer to the Importing Association

In consideration of the _______ Association consenting to delivery to the undersigned of the following goods:

[Specify goods.]

1. The undersigned undertakes not to deal, or permit to be dealt with, any of the said goods or any goods imported with the assistance of the said Association otherwise than in accordance with the conditions below.

2. If any goods are dealt with in any way contrary to the terms of this undertaking, the undersigned will be liable to a fine up to _______, and to forfeit to the said Association a sum equal to double the value of the goods in the highest European market.

In the event of dispute, the same shall be referred to the decision of the arbitrator or arbitrators appointed by the said Association whose decision shall be final and binding, and shall not be appealed against in any circumstances.

Such penalties shall be without prejudice to the enforcement of any penalties for breach of guarantee imposed by any Swedish law for the time being in force.

Conditions

1. The said goods and any goods manufactured therefrom (including by-products and waste) shall not be exported to the Central Powers or their allies or to territory in their occupation, and may be exported: (a) to Denmark only on production to the Swedish Handelskommission of a certificate showing that the Merchants’ Guild or Chamber of Manufacturers of Copenhagen have given a guarantee satisfactory to the representative of the Associated Governments in Denmark in respect of the goods proposed to be exported; (b) to Holland only if the goods proposed to be exported are consigned to the Netherlands Oversea Trust with their consent; (c) to Norway only if consigned to or guaranteed by an association with whom the Associated Governments have an agreement, and in other cases under the usual guarantee in force in Norway attested by the Norwegian Minister of Finance; (d) to Russia and Finland and Roumania only with the consent of the representative of the Associated Governments in Stockholm.

2. The said goods and any goods manufactured therefrom (including by-products and waste) shall only be sold to reliable persons, and in exchange for a written undertaking similar to this undertaking, and after the seller has satisfied himself that such goods and any goods manufactured therefrom (including by-products and waste) will not be exported in any form, save as herein provided. Such undertaking need not be required from a purchaser purchasing in the ordinary course of retail trade where the invoice value of the goods sold at any one time shall not exceed 100 kronor, provided that this exception shall not extend to cover a succession of such sales to the same person, firm, or company at frequent intervals.

3. “Associated Governments” means the British, French, Italian, and United States Governments.

[Other forms of guarantees and undertakings, covering various specific articles, not printed.]

the third schedule

Swedish Tonnage Arrangement¹

1. List of all Swedish vessels of 500 tons gross register and over to be drawn up and agreed upon. The expressions “vessels,” “ships,” and “tonnage” in this and the following clauses do not include sailing vessels except where it otherwise appears.

2. Suitable Swedish tonnage to the amount of 200,000 total deadweight tons (including bunkers) on Lloyd’s summer freeboard to be employed in the service of the Associated Governments on time charter, with liberty to trade in the war zone, the terms of the charter to be as follows:—

Rates.—Up to 500	tons	dead-weight	58/–	per ton	dead-weight	per month
500 to 1,000	“	“	54/–	“	“	“
1,000 to 2,300	“	“	49/–	“	“	“
2,300 to 4,000	“	“	46/6	“	“	“
4,000 to 6,000	“	“	43/6	“	“	“
Over 6,000	“	“	41/6	“	“	“

Ships to be fixed on the usual “Baltime” form of charter, with amendments and additions shown on draft charter “A” annexed to this arrangement.²

Values.—Charterers to hold the ships covered against war risk on the Swedish Government War Risk Insurance conditions in force on the 1st January, 1918, with the following modifications:—

(i) Questions whether missing ships have been lost by war perils or marine perils shall be decided by the Average Adjuster in Stockholm, subject to a right of appeal up to the Swedish Supreme Court.

(ii) Detention money not to be paid in respect of the capture, seizure, or detention of any vessel by one of the Associated Governments. (It is understood that this clause has no reference whatever to the hire-money, the payment of which is governed by the terms of the charter-party.)

(iii) The charterers will continue to hold vessels covered when they are carrying goods which may be declared contraband.

The ships shall be covered on the following valuations:—

Steamers	under 10	years	old	£50	per ton	dead-weight
“	10–30	“	“	£40	“	“
“	over 30	“	“	£35	“	“

If any owner so desires, a clause will be inserted in the charter-party, when originally signed, providing for the insurance by the charterer of an excess value not exceeding 25 per cent. of the above values, at a fixed rate of 4 per cent. per month, which charterer may deduct from the sum payable by way of hire. Vessels time-chartered under the provisional tonnage agreement of January 1918 shall be considered as included in those time-chartered under this clause, so soon as charters of these vessels have been signed in accordance with the provisions of this clause, or a guarantee is given that the charters of the vessels, specifying their names, will be signed, or that charters will be signed for equivalent vessels.

A list of the ships to be drawn up and agreed upon. Vessels to be over 500 tons gross.

3. Suitable Swedish tonnage to the amount of 200,000 total deadweight tons (including bunkers) on Lloyd’s summer free board to be employed in the service of the Associated Governments on time charter in service outside the war zone, in accordance with the trading limits provided in the charter.

The terms of the charter to be as follows:—

Rate.—35/– per ton dead-weight per month.

Ships to be fixed on the usual “Baltime” form of charter, with amendments and additions shown on draft charter “B “annexed to the agreement.¹ The charterers to hold ships covered against war risk on the Swedish Government War Risk Insurance conditions in force on the 1st January, 1918, with the modifications mentioned in clause 2 on the following valuations for a premium of ½ per cent. per month, which will be deducted from the hire money:—

Values.—Steamers	under 10	years	old	£50	per ton	dead-weight.
“	10–30	“	“	£40	“	“
“	over 30	“	“	£35	“	“

If any owner so desires, a clause will be inserted in the charter-party, when originally signed, providing for the insurance by the charterer of an excess value not exceeding 25 per cent. of the above values, at a fixed rate of ½ per cent. per month, which charterer may deduct from the sum payable by way of hire.

It is understood that in the event of the so-called German war zone being extended beyond the limits in force on the 20th January, 1918, owners of ships chartered under this clause shall have the option of rechartering on the terms and conditions set out in clause 2. Such tonnage to be added to the 200,000 tons referred to in clause 2 of this agreement.

Owners may exercise this option at any time on seven days’ notice being given to the charterers through the Swedish Office in London, referred to in clause 17. The new terms shall apply from the date on which the vessel completes the voyage upon which she is engaged at the time when notice is given.

A list of the ships to be drawn up and agreed upon. Vessels to be over 2,300 tons dead-weight.

4. Swedish tonnage to the amount of at least 150,000 total dead-weight tons to be employed in the service of the regular Swedish oversea lines trading in accordance with the plan attached (see annex A), provided the cargo carried in such vessels is subject to approval of the Associated Governments. Preference to be given to particular descriptions of cargo at the request of the Government concerned. If at any time approved cargo should not be available in Sweden on the outward line any ballast voyages from Sweden to be subject to the approval of the Associated Governments.

A list of the ships to be drawn up and agreed upon, showing the amount of tonnage to be employed on each line.

5. All Swedish tonnage not covered by clauses 2, 3, and 4 (including sailing vessels, ships now under construction, and ships idle in Allied ports, but not including ships detained by order of the Prize Court or competent naval authorities), to be available for the service of Sweden, but steamers to a total of not less than 100,000 total dead-weight tons (including bunkers), having a minimum speed of 7½ knots, to be continuously maintained in the Anglo-French-Swedish trade, so long as the losses of Swedish ships in Anglo-French-Swedish trade do not prove so great as to make this impossible.

6. Swedish sailing vessels trading to Sweden from overseas to load only in United States ports. Swedish sailing vessels not required for the service of Sweden shall be at liberty to trade, but their voyages shall be subject to approval of Associated Governments.

7. In the selection of the vessels to be chartered by the Associated Governments under the arrangement preference will, so far as practicable, be given to ships now in Allied ports.

8. Provided the regulations of the British naval authorities are observed, Swedish vessels will, as far as possible, be protected when trading in the war zone under this arrangement, including passages between Norway and the United Kingdom. The North Sea freight regulations will be suspended and Swedish ships allowed to come to the United Kingdom in ballast to load coal, if so desired.

In return for these concessions freight space to the amount of 60,000 dead-weight tons per month will be reserved out of the 100,000 tons referred to in clause 5 for the carriage of Swedish exports to the United Kingdom and France at rates of freight, payable in sterling, not exceeding certain agreed figures, which shall be based upon a rate of £10 per St. Petersburg standard of 165 cubic feet of timber (deals, battens, and boards) from Gothenburg to Hull, and other cargo in proportion. Shippers nominated by His Britannic Majesty’s Government to have the first call on the whole or any part of the above space.

If requested to do so by His Britannic Majesty’s Minister at Stockholm, the Swedish Shipowners’ Association will place at the disposal of those Swedish coal importers who have hitherto relied on British coal freight space to the amount of 20,000 tons per month from suitable ports in the United Kingdom to suitable ports in Sweden. His Britannic Majesty’s Minister at Stockholm will, if necessary, inform the Swedish Shipowners’ Association of the names of the importers for whom these facilities are desired, and it is understood that the freight space will be paid for at the current rate.

All contracts for the carriage of goods from Sweden to the United Kingdom shall provide for the discharge of the cargo at a named port, or at any East Coast port, as may be directed by the British naval authorities, and all contracts for the carriage of coal or coke in particular vessels from the United Kingdom to Sweden shall contain a clause providing for the release of the shipowner from any responsibility if the ship in question is directed by the British naval authorities to load at another port. It is understood that in exercising their rights under this clause of the arrangement the British naval authorities will be guided only by naval considerations and considerations affecting the rapid loading and discharging of the vessels. General licenses will be issued and/or other arrangements made by mutual agreement to enable the diverted ships to load without delay.

9. Swedish vessels proceeding to and from the United States of America will take the northabout route, and will call at Halifax for examination if required by His Britannic Majesty’s Government.

Swedish vessels, including regular liners referred to in clause 4, proceeding to and from South America, will take the northabout route, and will call at Halifax if required by His Britannic Majesty’s Government. They will bunker in a United States bunkering port, and will take sufficient coal or oil to carry them to South America and back to the United States of America.

10. Swedish vessels now on the British black list will be temporarily removed from that list so long as they trade in accordance with the provisions of the arrangement, and will be entirely removed if their owners accept and observe the British bunker conditions as stated in the copy annexed,¹ or if a special arrangement is made with His Britannic Majesty’s Government.

11. So far as practicable, sufficient coals, oil, stores, and provisions to be supplied at bunkering stations to be agreed upon, to all ships trading in accordance with the provisions of this arrangement including those trading in Swedish interests to enable them to fulfil their voyages, such supplies shall be regulated in accordance with the general orders respecting supply of stores, &c., which may from time to time be in force in the ports where supplies are required. No guarantees or undertakings whatsoever in regard to the further employment of the vessels will be insisted upon as a condition for the supply of such coals, oils, stores and provisions, and any undertakings previously given in return for such supplies shall be suspended as regards vessels trading under this arrangement from the date on which this agreement comes into force. It is understood that the provision in the proceeding [sic] sentence does not apply to vessels time-chartered under clauses 2 and 3.

The obligations under this clause only hold good so long as vessels are not held up on the Swedish side, or so long as the total tonnage in Swedish ports does not exceed the amount in Swedish ports on the 1st January, 1918.

12. Any vessels trading in accordance with the provisions of this arrangement including those trading in Swedish interests which may be damaged while so trading, shall be allowed facilities for necessary repairs as soon as practicable, provided material and labour can be spared for the purpose.

13. Swedish vessels engaged in the Anglo-French-Swedish trade in accordance with this arrangement shall be allowed to bunker, load, and clear immediately when ready, without waiting for releasing tonnage, so long as vessels are not held up on the Swedish side, or so long as the total tonnage in Swedish ports does not exceed the amount in Swedish ports on the 1st January, 1918.

14. The charters of the ships referred to in clauses 2 and 3 shall be effected for the duration of the war, subject to the right of the owner or charterer to terminate the charter on the expiry of four months from the date on which notice of termination of the general agreement between Sweden and the Associated Governments is given by the Swedish Government, or on the expiry of three months from the date on which such notice is given by the Associated Governments.

The vessels referred to in clause 2 shall be delivered at a United Kingdom East Coast port or elsewhere by mutual agreement.

The vessels referred to in clause 3 shall be delivered in the United States of America at an East Coast port north of Capt Hatteras or elsewhere by mutual agreement, but ships now in Sweden may be delivered in Norway at any port selected by the charterer between Stavanger and Aalesund inclusive.

50 per cent. of the ships shall be delivered within one month of the signature of the agreement 75 per cent. within six weeks, and the whole within two months.

15. If any of the ships chartered under the provisions of clauses 2 and 3 of this arrangement be lost after delivery, or be prevented by any other cause beyond the control of the owner or Swedish Government from fulfilling the charter-party, there shall be no obligation to replace such ship.

16. Charterers shall have the liberty to place one or two representatives on board any ship time-chartered under the arrangement for the purpose of safeguarding their interest and assisting the master in accordance with the directions of the competent authority.

17. The Swedish Shipowners’ Committee will open an office in London for the purpose of facilitating the working of this agreement, and all questions concerning the grant of bunkers, approval of cargo under clause 4, and other points arising out of the working of this tonnage arrangement shall be dealt with through that office.

18. One-half of the time charters under this arrangement will be effected with nominees of the United States Government, and one-half with nominees of the Inter-Allied Chartering Committee in London.

19. Vessels time-chartered under clauses 2 and 3 of this arrangement shall not be armed, and shall be navigated under the Swedish flag and with Swedish crews, subject to the provision in clause 16.

20. Vessels referred to in clause 2 shall be redelivered at a United Kingdom port or elsewhere by mutual agreement.

Vessels referred to in clause 3 shall be redelivered at a United States port or elsewhere by mutual agreement.

On the termination of this agreement all ships which on 1st January, 1918, were in Scandinavian or Baltic ports, or those which on that date were on passage to such ports and shall have reached their destinations, shall be allowed to return to Sweden, and all ships lying on that date in Holland, Spain, or other neutral countries outside Scandinavia, shall be allowed to return to the country where they were lying, or if that country is then at war with the Associated Governments, to return to Sweden, provided the ships, which on the 1st January, 1918, were in United States or Allied ports, or on passage to such port and have reached their destinations, return to such port. Ships returning to Sweden or neutral ports in accordance with this clause shall be supplied with sufficient coal, oil, and stores to enable them to reach their destinations without any conditions whatsoever in regard to their future employment.

annex a

Plan of Regular Swedish Oversea Lines

Line 1.—From Sweden to Australia viâ United States of America coaling port and panama Canal, and back with wheat from Australia to Sweden, if such cargo available; otherwise with cargo from Australia to United States of America, and from United States to Sweden.

Approximate tonnage for this line, 24,000 tons d. w.

Line 2.—From Sweden to South Africa; from South Africa to India with approved cargo; from India to United States of America with approved cargo, and from United States to Sweden with cargo.

Approximate tonnage for this line, 40,000 tons d. w.

Line 3.—From Sweden to persian Gulf; from persian Gulf or India to the United States of America with approved cargo, and from United States to Sweden with cargo.

Approximate tonnage for this line 12,000 tons d. w.

Line 4.—From Sweden to India. From India back to Sweden with cargo under general agreement; failing this, India-America and then America-Sweden.

Approximate tonnage for this line 15,000 tons d. w.

Line 5.—From Sweden to United States and Mexico and back to Sweden with cargo from United States under general agreement.

Approximate tonnage for this line 25,000 tons d. w.

Line 6.—From Sweden to River plate and back to Sweden with cargo under general agreement.

Approximate tonnage for this line 20,000 tons d. w.

Line 7.—From Sweden to West Coast of South America and back to Sweden with cargo under general agreement.

Approximate tonnage for this line 14,000 tons d. w.

the fourth schedule

Financial Terms

1. The Swedish Government undertake to arrange, through a group of Swedish banks, a monthly credit of 6,250,000 kronor, to be utilised exclusively for expenditure in Sweden, and not for arbitrage purposes, the credit to be available during the currency of this agreement so long as the quotation for sterling exchange in Stockholm is 17.50 or above that rate, and to be divided between France, Italy, and the United Kingdom in such proportions as may be mutually agreed between them before the 1st August, 1918, any amount within the above total not drawn within a given month to be carried forward, and available if required in subsequent months.

2. The French portion to be arranged through the consortium of French banks concerned in the previous Swedish credit, on terms not less favourable to them than those of the previous credit.

3. The Italian portion to be arranged through the consortium of Italian banks headed by the Banca d’Italia, on terms to be agreed mutually.

4. The British portion to be arranged through Messrs. C. J. Hambro and Son, on the terms following:—

(i) The monthly credit to be made available against Messrs. Hambro’s three-year promissory notes, dating from the dates of the respective monthly advances.

(ii) Interest on these notes to be payable half-yearly at the average (calculated de die in diem) cash credit rate of the Sveriges Riksbank during the previous half-year, subject to a minimum of 5½ per cent. per annum, and a maximum of 7½ per cent. per annum.

(iii) British Treasury 6 per cent. three-year notes to a face value 20 per cent. in excess of the amount of the loan outstanding to be deposited at the Bank of England, or, if required, at the Sveriges Riksbank, during the currency of the loan as collateral security in the name of the Swedish group of banks, the notes to be payable in Stockholm in kronor, such notes to be unavailable prior to the due date of repayment of the loan for use as collateral by the lenders, except in Sweden.

(iv) Messrs. Hambro’s notes and the British Treasury notes, expressed in terms of kronor, to be repayable at their maturity in whole or part at the option of Messrs. Hambro and of the British Treasury either in kronor at Stockholm or by sterling cheque on London at the average middle rate of the day for the thirty days preceding the due date of repayment as certified by the Bank of England and the Sveriges Riksbank in agreement or in gold delivered at Stockholm at the rate of 2,480 kronor per kilogramme of fine gold less ¼ per cent. to cover Mint charges.

(v) Interest to be bonified at 3 per cent. per annum on any sums left temporarily undrawn in the hands of the Swedish banks.

(vi) In lieu of commissions or other charges the Swedish group of banks to participate to the extent of one-third in any exchange profit between the average sterling exchange ruling at the time when the drafts are drawn and that ruling at the time of their final repayment, such profit to be calculated as follows:—

(a) The average rate in each case to be the average middle rate of the day for the thirty days preceding the date of drawing or of repayment as the case may be certified by the Bank of England and ‘the Sveriges Riksbank in agreement.

(b) The assumed average rate at the date of drawing to be subject to a minimum of 15 kronor to £1 sterling.

Advance payments in respect of their share of the exchange profit accruing as above to be made to the Swedish group of banks at the rate of ½ per cent. per annum to be paid half-yearly at each interest date, and to be unreturnable in the event of the exchange profit due falling below the amount of the advances thus made.

5. In the event of the value of the goods rationed under this agreement reaching Sweden over a period of 6 months falling below 50 per cent. of the maximum amounts permitted under the agreement, the Swedish Government shall be free to reopen the question of the amount of the monthly credits to be permitted under (1) above.

6. The Swedish Government undertake to make arrangements with the Trafik Aktiebolaget Grängesberg-Oxelösund to accept payment in respect of the iron ore purchased by the Associated Governments under the agreement subject to the conditions following:—

(a) Half of the provisional kronor invoice in respect of iron ore put free on board ships supplied by buyers to be converted on the last day of the month of shipment from kronor into sterling at the average middle rate of the day for the month in question as certified by the Bank of England and the Sveriges Riksbank in agreement.

In the event of the proportionate monthly contract quantity not being shipped payment to be made in the same manner for half of the provisional invoice on the last day of the following month against certificate of ore in stock at Narvik or at the agreed-on stocking place. The sterling amount in question in either of the two cases to be invested in British Treasury notes carrying 6 per cent. interest payable half-yearly from the date on which they are taken up, and payable in sterling in London one year after that date, subject to an option to the British Treasury of renewal for a further period terminating on the 1st August, 1920, such notes to be non-negotiable and to be rendered unavailable for use as collateral except in Sweden during the whole of their currency, except in the event of the exchange between London and Stockholm reaching kronor 17.50 to the £ sterling.

(b) The second half of the provisional kronor invoice to be payable on shipment of the ore against shipping documents or on the 1st August, 1920, whichever shall come first, in kronor in Stockholm or by sterling cheque on London at the average middle rate of the day for the thirty days preceding the date of payment as certified by the Bank of England and the Sveriges Riksbank in agreement, or in gold delivered at Stockholm at the rate of 2,480 kronor per kilogramme of fine gold, less ¼ per cent. to cover Mint charges, at the option of the buyer, and to carry interest at 6 per cent., payable half-yearly from the date of payment of the first half of the provisional invoice to the date of payment.

On ascertainment of analysis any balance that may be due, including storage charges to be paid within thirty days of date of bill of lading, or at latest on the 1st August, 1920.

7. The removal of the embargo on Swedish paper and pulp into the United Kingdom, referred to in article 13 of the agreement, shall apply only to such exports in respect of which arrangements can be made with the Swedish exporters of these materials that they will agree that one-half of the purchase price, as fixed in kronor, be converted into sterling at the middle rate of the day for the month as certified by the Bank of England and the Sveriges Riksbank in agreement, and invested in British Treasury 6 per cent. interest notes, with interest payable half-yearly, and the principal payable in sterling in London one year after the date of investment subject to an option to the British Treasury of renewal for a further year, such notes to be non-negotiable and rendered unavailable for use as collateral except in Sweden during the whole of their currency except in the event of the exchange between London and Stockholm reaching 17.50 kronor to the £ sterling. The Swedish Government will instruct the Royal Financial Commission not to object to such arrangements. Alternatively, at the option of the Swedish exporters, the sterling to be placed on deposit with British banks, on terms to be arranged between the banks and the exporters, for a fixed period of one year, subject to an option to the British Treasury at the end of the year to require that the period of deposit shall be extended for a further year, such deposits not to be used by the exporters for the purpose of obtaining credits from the banks in other accounts, except in Sweden.

8. The Swedish Government undertake to make arrangements for the investment or deposit of one-half of the moneys due for losses of ships under the tonnage arrangement, on the same conditions as those set forth in 7 above in respect of paper and pulp.

9. The Swedish Government undertake to purchase the bread cereals to be imported into Sweden under the agreement, and not paid for prior to its signature, solely from the Inter-Allied Wheat Executive at prices in terms of kronor payable at Stockholm to be agreed upon in advance between the Swedish Government and the Inter-Allied Wheat Executive, and embodied in a formal contract.

• Fred Leverton Harris
• J. C. Charpentier
• F. Giannini
• Wrangel
• Marc. Wallenberg
• G. Carlsson

[Memorandum of Adherence by the War Trade Board of the United States]

The War Trade Board of the United States, an administrative agency empowered by Executive order of the president to license exports from the United States, whose powers are administrative and pertain wholly to the United States domestic and internal affairs, adheres to the agreement signed this day between the British, French, and Italian Governments on the one hand and the Swedish Government on the other hand, and further agrees to grant licences during currency of this agreement for the articles enumerated in the ration list of this agreement in so far as the same (1) are not required for consumption in the United States or in nations associated with the United States in the War, or to meet other obligation in¹ the United States, and (2) will not directly or indirectly be exported to any country or ally of any country with which the United States is or may be at war so long as the above-mentioned agreement shall remain in force and be observed by the Swedish Government.

L. P. Sheldon

,
War Trade Board

May 29, 1918.

Covering Letter to the Swedish Agreement

May 29, 1918.

Gentlemen: As you are aware, there are certain matters which have been arranged during the discussions which have taken place between yourselves and the representatives of the Associated Governments but are not specifically included in the text of the agreement, since it has been thought advisable that they should form the subject of a covering letter, though they form part of the arrangements concluded. These matters are the following:—

1. With reference to the ration of bread cereals in the agreement it is arranged that not more than 150,000 tons shall be imported before the 1st October, 1918, and that the remaining 100,000 tons, together with any unimported part of the 150,000 tons, shall be imported on account of the cereal year 1918–19, and that any amount beyond this required for Swedish needs will depend on the 1918 Swedish harvest and the supply of cereals in the parts of the world controlled by the Associated Governments. Within a fortnight after the result of the Swedish harvest has been communicated to the Associated Governments a discussion on the matter will be opened with a view of a settlement at the latest within the succeeding month.

2. Purchases of cereals and fats from the Associated countries or overseas will be made exclusively through the Wheat Executive and the Meat and Fats Executive respectively.

3. The War Trade Board of the United States are prepared, if asked on the conclusion of the agreement, to permit immediate purchase of the following goods: technical oils, 12,000 tons; edible oils, 7,000 tons; lubricants, 7,500 tons; petrol, 5,000 tons; petroleum, 45,000 tons; fuel oil, 9,000 tons; rubber goods, 1,000 tons; sisal fibre, 2,000 tons; copper, 8,000 tons; phosphates, 80,000 tons. The War Trade Board will agree to issue licences for the export of these goods to Sweden in accordance with the quarterly rations.

4. With regard to supplies of coal to Sweden, provision has been made with a view to ensuring the supply of 150,000 tons a month, and the British Government do not anticipate, apart from any unexpected development in the war, that any difficulty will be experienced in the provision of this quantity.

5. As regards articles coming within the list of rationed articles which are at the present time in Sweden in the course of transit to Russia, whether transit licences have been issued for them or not, the Associated Governments will offer no objection to the Swedish Government making arrangements with the consignees or bill of lading holders for delivery of such articles on account of the quarterly rations of such articles.

6. With reference to the export from Sweden of iron and steel, it is understood that the export from Sweden to the Central powers and their allies (including territories in their occupation) of iron and steel (raw and semi-manufactured) shall not be allowed to exceed 200,000 tons per annum on a quarterly basis, so long as the agreement remains in force, the proportion between iron and steel, to be as in 1917.

7. Any proposed export of tool steel containing molybdenum, from Sweden to neutral countries shall be the subject of special representation to the representative of the Associated Governments, and sanction for such exports, notwithstanding the terms of the agreement, up to the limit of 1917 quarterly exports, will not be unreasonably withheld.

8. Should it prove to be impossible for Sweden to obtain from Norway all the mica included within the rationed quantity of 40 tons of mica, micanite, and mica manufactures, then importation of any balance unobtainable from Norway may take place from other sources, but mica obtained from Switzerland in these circumstances; shall not be taken in transit through Germany or Austria.

9. If the Trafik Aktiebolaget Grängesberg Oxelösund, for the purpose of mining the iron ore to be purchased by the Associated Governments, should require materials which it is unable to obtain otherwise, application for special facilities for the importation of such, materials will be favourably considered.

10. The Italian Government propose to purchase a yearly quantity of 100,000 tons of iron and steel in Sweden. It is understood that the Swedish Government will grant licences for the export thereof to Italy and will raise no objection to the storage thereof in Sweden.

11. The Associated Governments will be advised to accede to the request which you have made that Sweden should be allowed to import 500 tons of American bacon in exchange for the export from Sweden of 500 tons of Swedish bacon.

12. With reference to your application for facilities for the importation of 5,000 tons of grain for malt for Swedish breweries, this, request can be acceded to only if the quantity imported is deducted from the cereal ration.

13. In response to your request that, in view of the necessity of importing into Sweden about 700 tons of sugar-beet seeds, permission should be given to export Swedish seed grain in compensation, the Associated Governments will offer no objection to the importing of such beet seeds from Russia, and should such a course prove to be impracticable, they will be willing to consider a proposal on the lines indicated in your request or on other lines.

14. As regards the rations of tanning materials, leather, &c., the proportions of the tanning materials, which will include chrome, will be arranged later. Bichromate of any kind will be regarded as equivalent to thirty times the same amount of vegetable tanning containing 30 per cent. tanning; 1 ton of chrome alum shall count as one-third of a ton of bichromate, and 1 ton of chrome sulphate liquor as a sixth of a ton of bichromate.

The following proportionate values are fixed:—

• 1 ton dried hide=2½ tons wet salted hides.
• 1 ton dry salted or lime-dressed=1½ tons wet salted hides.
• 1 ton leather=1 ton wet salted hides.
• 1 ton boots=1 ton wet salted hides.

15. The arrangements contemplated in the agreement for drawing up a “free list” will be proceeded with forthwith, but in order to avoid delay in the execution and operation of the agreement the settlement of the list shall be postponed until after execution of the agreement.

16. As regards importation of articles into the Associated countries, no discriminating hindrance will be placed on the importation of non-embargoed articles, subject to shipping conditions.

17. It is understood that if a manufacturing plant producing manufactured articles for any of the Associated countries requires imported articles for the purpose of such manufacture, such articles shall not, during the continuance of the agreement, be requisitioned, commandeered, or otherwise diverted or distributed by the Swedish Government, but this shall not apply to food.

18. With reference to the provisions in article 19 of the agreement regarding the importation of balances of rations after the termination of the agreement, the facilities therein referred to are dependent upon the fulfilment of the terms of the agreement up to the date of termination.

We shall be glad, for the purpose of record, if you will confirm in writing the arrangements stated in this letter.

Yours sincerely,

• Fred. Leverton Harris
• J. C. Charpentier
• F. Giannini

To the Swedish Delegates.

[acknowledgment of covering letter]

Foreign Office, May 29, 1918.

Gentlemen: We have to acknowledge the receipt of your covering letter to the Swedish agreement of this date setting out arrangements made between us which are not specifically included in the text of the agreement.

Yours sincerely,

• Wrangel
• Marc. Wallenberg
• G. Carlsson

To the Representatives of the Associated Governments.

[Supplementary Letters]

Letter No. 1

Foreign Office, May 29, 1918.

Dear M. Wallenberg: With reference to article 5 of the agreement, the Associated Governments have no intention of discriminating against persons, firms, and companies (other than those with whom their subjects are prohibited by law to trade, to whom reference will be made later) on the ground that they have exported to the Central powers and their allies; and unless they have violated undertakings or guarantees given to any of the Associated Governments or have deceived, or made false statements in order to deceive, the authorities of any of the Associated Governments, or have evaded, or attempted to evade, the restrictions of their own country at such a time or in such circumstances that they can not be considered as trustworthy, they will enjoy all the facilities afforded by the agreement with the Swedish Government; and the Associated Governments are prepared immediately, in co-operation with the representatives of the Swedish associations, to revise the names of persons, firms, and companies in Sweden (other than those to whom reference is made below) to whom at the present time objection is taken, and to eliminate all who do not fall within the category mentioned. The revision will take place in London by confidential discussion between a British representative of the Associated Governments and a representative of the Swedish office in London. All future cases will be dealt with in the same way, and the Associated Governments will be prepared to review the names at any time by the same means with a view to the further elimination of persons, firms, or companies on whose behalf a good case is made out for their elimination.

As regards persons, firms, or companies in Sweden with whom dealings are forbidden by law under severe penalties, the Associated Governments cannot alter the existing laws by which dealings with such persons are forbidden, but they are prepared to apply to these also the provision for confidential discussion above stated.

We may add that arrangements of the nature described exist with regard to other countries than Sweden, and have been found in practice to work quite satisfactorily and without friction.

Yours sincerely,

F. Leverton Harris

Letter No. 2

Foreign Office, May 29, 1918.

Dear M. Wallenberg: As you are aware, the agreement with the Swedish Government is made on the condition that the exports to Germany of iron ore in June 1918 shall not exceed such exports in June 1917, and that the proportion of iron ore low in phosphorus shall not exceed 12½ per cent of each category; that the figures of June exports to Germany will be given to the Associated Governments by the 1st August, 1918, and if the above figures have been exceeded they shall have the right up to the 1st September to denounce the agreement, unless satisfactory arrangements are made for the adjustment of the excess in the exports of iron ore to Germany during the following months.

Yours sincerely,

F. Leverton Harris

Letter No. 3

Foreign Office, May 29, 1918.

Dear M. Wallenberg: It is desirable that there should be put on record your statement to me which forms part of the arrangements concluded by the agreement, that the Swedish Government during the continuance of the agreement will not permit the transit through Sweden of molybdenum or mica or any articles containing molybdenum or mica.

Yours sincerely,

F. Leverton Harris

Letter No. 4

Foreign Office, May 29, 1918.

Dear M. Wallenberg: I have consulted the coal authorities and I find that they will license 60,000 tons of furnace coke and 20,000 tons of steam coal per annum for the Stora Copparberg Bereslags Aktiebolaget while the agreement is in force.

Yours sincerely,

F. Leverton Harris

Letter No. 5

Foreign Office, May 29, 1918.

Dear M. Wallenberg: I do not think you need have any apprehension about your cereal supplies for 1918–19. It will be our intention to treat Sweden in a really liberal manner provided there are sufficient supplies of grain available for the Allies’ requirements, and, as to this, present indications show that there is likely to be ample.

Of course should your Government not be satisfied with the arrangements which will be made, they can always give notice to terminate the agreement, though I feel quite confident that there will be no chance of them being dissatisfied.

Yours sincerely,

F. Leverton Harris

Letter No. 6

Foreign Office, May 29, 1918.

Dear Commander Leverton Harris: I am in receipt of your letters Nos. 1, 2, 3, 4, and 5 of this date on behalf of the Associated. Governments, and on behalf of the Swedish delegates I accept the statements and arrangements mentioned in your letters.

Yours sincerely,

Wrangel

¹

Letter No. 7

Foreign Office, May 29, 1918.

Dear M. Carlsson:

Swedish tonnage agreement

As arranged during our discussions in regard to the Swedish tonnage arrangement, I now write to offer explanations on behalf of the Associated Governments as to the interpretation and application of certain of the clauses of the agreement.

Clause 2. By the word “suitable” in the first line the Associated Governments do not wish it to be understood that they expect liners or vessels of high class to be time-chartered to them for service within the war zone under this clause. They do, however, expect that you will propose a list of vessels to be agreed upon under the clause, the representatives of the Associated Governments reserving the right to object to any particular vessel as not being fit for the carriage of ordinary cargo, and stating their reasons.

Clause 3. The explanations of the preceding paragraph apply equally to the use of the word “suitable” in this clause.

No mention is made in clauses 2 and 3 of the arrangement of the vessels that have been requisitioned by the Associated Governments. It is, however, understood by the Associated Governments that the Swedish tonnage requisitioned by the French Government and now afloat, amounting to about 12,000 tons, will be deducted from the 200,000 tons to be chartered to the Associated Governments for service outside the war zone.

As regards these two clauses, it is understood that on the expiry of six months from the signature of this agreement, and at the expiry of each succeeding period of six months, it shall be open to either party to raise the question of revising the rates and values on the ground of a general change in the cost of running ships or in values.

It is also understood that, should the Associated Governments find it necessary for any reason to requisition any Swedish tonnage after the signature of this agreement, such tonnage shall be deducted from the 400,000 tons referred to in clauses 2 and 3, according to the class in which the vessels were in fact employed.

The term “approved cargo” in clause 4 does not bear the special meaning applied to the same expression in connection with the North Sea freight regulations, but refers to cargo of Swedish origin, accompanied by a Swedish certificate of origin. Such cargo will not be disapproved solely on account of its special nature.

Clause 9. The Associated Governments understand that cargo space equivalent to at least 50 per cent of all Swedish vessels calling in the United States on the outward journey shall be made available by Sweden for the carriage of approved cargo from the United States to ports in the country to which the vessel is destined.

Clause 11. It is understood that the expression “all ships trading in accordance with the provisions of this arrangement” means all ships belonging to owners trading under the control of the Swedish Shipowners’ Committee and obeying their instructions, and that the Associated Governments are not bound to give these facilities to ships belonging to owners not so trading, except in so far as the ships may be requisitioned by the Swedish Government for the carriage of supplies to Sweden.

Clauses 11 and 13. The provisions as to vessels not being held up in Sweden, and as to the total tonnage in Swedish ports not exceeding a certain specified quantity, will only be invoked by the Associated Governments if there is a marked tendency to accumulate tonnage in Sweden.

Clause 14, last paragraph. The Associated Governments will not insist on the provision that 75 per cent of the ships must be delivered within six weeks of the signature of the agreement, so long as charters for the whole of the ships are signed for delivery within two months of the signature of the agreement and the vessels are in fact delivered within those two months or one or two weeks thereafter.

Believe me

Yours sincerely,

F. Leverton Harris

Letter No. 8

Carlton Hotel, pall Mall, May 29, 1918.

Dear Commander Leverton Harris: I beg to acknowledge receipt of your favour of the 29th instant, contents of which have my best attention, and which I find in order.

However, as regards your remarks under clause 9, it must be understood that the stipulation regarding cargo space equivalent to at least 50 per cent of all Swedish vessels calling in the United States of America for bunkers on their outward voyages is only applicable provided the space should not be required for approved Swedish cargo.

I also take this opportunity of confirming the following items, which have been agreed upon between us:—

1. The proposed clause 5(b) in the tonnage arrangement relating to further licences for tonnage in Allied interest must, for reasons which you know, be deleted. In view of this, any tonnage under the control of the Committee which should not be required for the carriage of goods to Sweden, as provided for under the general agreement, or otherwise approved by the Associated Governments, and not coming under clauses 2, 3, 4, and 5, will be put on one of the regular Swedish oversea lines referred to in clause 4 as may be nominated by His Britannic Majesty’s Government in agreement with the United States Government authority, or if no cargo should be available on these lines, I undertake to recommend and try to arrange that the Swedish Government will grant licences voyage by voyage for trading for the Commission for Relief in Belgium, or for the Swiss Government.

2. Should there be any serious complaints against the masters of any of the vessels chartered under clauses 2 and 3 under the arrangement for failure to comply with orders, or for misconduct, the Committee will see that the master in question is removed unless satisfactory explanation can be given after the Swedish Shipowners’ Committee’s representative in London has had an opportunity of investigating the matter.

3. It is not the intention of the Committee to let any steamers under their control be laid up, unless when required for repairing purposes; but, on the contrary, the intention is that all the tonnage under their control is to be kept in traffic in accordance with the terms of the general tonnage arrangement between the Associated Governments and the Committee.

I am, dear Commander Leverton Harris,

Sincerely yours,

G. Carlsson

Acknowledgment of Letter No. 8¹

[ May 29, 1918.]

Dear Mr. Carlsson: I beg to acknowledge on behalf of the Associated Governments the receipt of your letter No. 8 of to-day’s date in regard to certain questions connected with the operation of the Swedish tonnage arrangement. I am to express my concurrence in the points contained therein.

Believe me,

Yours sincerely,

F. Leverton Harris

Letter No. 9¹

London, May 29, 1918.

Dear Commander Leverton Harris: According to article 19 of the agreement this comes into force on the 1st June. Licenses not corresponding to the terms of the agreement have, however, been granted for goods which, under the agreement, would be considered to be “articles similaires,” and these are valid some time after the said date.

Such licences cannot be cancelled in cases where the compensatory commodities already have been obtained, and there are other instances where they cannot be cancelled without causing great inconvenience and difficulties to Sweden.

The arrangement now made constitutes certainly a considerable change in the commercial policy of Sweden, a change which forcibly may create a kind of “interregnum” during the first time. I do hope that the Associated Governments will take this into consideration and indulgently deal with any unavoidable infringements which are sure to occur.

With regard to restrictions in the agreement concerning the export of certain goods of Swedish origin to Norway and Denmark, I do hope that you will kindly confirm that applications for dispensation from the said restrictions will be favourably considered by the Associated Governments in all cases where such dispensations are desirable for the continued exchange of commodities between the Scandinavian countries.

Yours sincerely,

Marc Wallenberg

Letter No. 10

Foreign Office, May 29, 1918.

Dear M. Wallenberg: I am much obliged to you for your letter of to-day. You may take it from me that it is our intention to carry out the Swedish agreement in a very liberal spirit, and we feel sure that your Government intend to do the same.

We recognise that there must be a short interregnum before the agreement can come into full operation, and we are quite willing in those cases where licences have already been granted for export to Germany of goods which might be considered “articles similaires” in exchange for compensatory commodities which have already been obtained, or where there are special reasons for not cancelling the licences, not to raise any unreasonable objections to the export of those goods.

As I explained to you the question is really one of degree. We shall of course expect the Swedish Government only to permit the export of goods in cases where the interests of the Allies will not be seriously prejudiced.

So far as concerns the export of certain goods of Swedish origin to Norway and Denmark, you may rely upon our considering any applications in the most favourable spirit.

May I take this opportunity of expressing to you my sense of great appreciation for the manner in which you and your colleagues have conducted these long negotiations, and at the same time offer you my congratulations on the result which has now been obtained.

It has been a very great pleasure to me and my colleagues to have had the good fortune of conducting negotiations with such able and fair negotiators. I firmly believe that the agreement which is now about to be concluded will prove of great mutual advantage both to your country and to the Allies.

Believe me [etc.]

F. Leverton Harris

1. The text here given follows a British print rather than the War Trade Board’s print which was itself based upon an earlier British print. The terms of the agreement had been telegraphed piecemeal as they were decided upon (see preceding correspondence); the covering letter and the first eight supplementary letters were telegraphed on May 30 and 31 (File Nos. 658.119/403, 404, 405, 409, 410). Letters 9 and 10 were telegraphed in part on Sept. 6 (File No. 658.119/598), but were received in full only in the British print which was later forwarded.
1. Not printed.
2. See par. 7 of covering letter, post, p. 1264; also letter No. 3, post, p. 1268.
1. See pars. 5 and 13 of covering letter.
2. See letter No. 1.
1. See par. 3 of covering letter.
1. See par. 15 of covering letter.
2. See par. 4 of covering letter; also letter No. 4.
3. See pars. 6, 9, and 10 of covering letter; also letter No. 2.
1. See par. 16 of covering letter.
1. See par. 18 of covering letter.
2. See also pars. 11 and 17 of covering letter.
3. See pars. 1, 2, and 12 of covering letter; also letter No. 5.
1. See par. 2 of covering letter.
2. See par. 14 of covering letter.
1. According to telegram from the War Trade Board representative at London. No. 853, Embassy’s No. 10779, June 21, this was a typographical error in the British print; should read “citric.” (File No. 658.119/496)
2. See par. 8 of covering letter.
1. See letters Nos. 7 and 8.
2. Not printed.
1. Not printed.
1. Not printed.
1. See telegram of instruction, May 20, ante, p. 1231. War Trade Board’s telegram to Sheldon, No. 692, Department’s No. 8322, June 19, suggests the word should have been “of.” (File No. 658.119/478d.)
1. This signature in the American print and in telegram from the War Trade Board representative, No. 688, Embassy’s No. 10359, May 31 (File No. 658.119/110) is given as “Wallenberg.”
1. Contained in neither the British nor the American print; given in telegram from the War Trade Board representative, No. 689, Embassy’s No. 10363, May 31 (File No. 658.119/409).
1. Contained in neither the British nor the American print; given in telegram from the War Trade Board representative, No. 689, Embassy’s No. 10363, May 31 (File No. 658.119/409).