Agreement of May 29, 1918, between the “Associated Governments” and Sweden, the United States Memorandum of Adherence, and Annexed Letters1
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 [Page 1243] 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 [Page 1244] 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 [Page 1245] 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 [Page 1246] 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.
[Page 1247]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.
[Page 1248]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.
[Page 1249]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.
[Page 1250] [Page 1251]| 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 [Page 1253] 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
[Page 1254]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 [Page 1255] 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.
[Page 1256]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 [Page 1257] 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, [Page 1258] 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.
[Page 1259]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.
[Page 1264] [Page 1269]- 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.↩
- Not printed.↩
- See par. 7 of covering letter, post, p. 1264; also letter No. 3, post, p. 1268.↩
- See pars. 5 and 13 of covering letter.↩
- See letter No. 1.↩
- See par. 3 of covering letter.↩
- See par. 15 of covering letter.↩
- See par. 4 of covering letter; also letter No. 4.↩
- See pars. 6, 9, and 10 of covering letter; also letter No. 2.↩
- See par. 16 of covering letter.↩
- See par. 18 of covering letter.↩
- See also pars. 11 and 17 of covering letter.↩
- See pars. 1, 2, and 12 of covering letter; also letter No. 5.↩
- See par. 2 of covering letter.↩
- See par. 14 of covering letter.↩
- 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)↩
- See par. 8 of covering letter.↩
- See letters Nos. 7 and 8.↩
- Not printed.↩
- Not printed.↩
- Not printed.↩
- 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.)↩
- 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.”↩
- 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).↩
- 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).↩