File No. 658.119/440

The Chargé in Great Britain ( Laughlin ) to the Secretary of State

[Telegram]

10639. War Trade Board [from Sheldon]:

No. 798. I am informed that the Swedish Government expect to ratify today agreement dated May 29. Referring to your 652, Department’s 8222, June 13, I would call attention to my telegram No. 719, Embassy’s 10429, June 4. I think you must agree that the requirement of replacing ships under the terms of the modus viviendi [is] no longer operative. I have a telegram this morning from Owen in which he states that he advised the Foreign Minister in Sweden on June 10 that releasing ships should be named until such time as the full amount of tonnage mentioned in the agreement should be delivered. Please inform me whether you sent such instructions to Stockholm, and if this is the case I would suggest that in future you send me copies of instructions so that I may be advised myself and in turn advise the Foreign Office of your attitude regarding matters in which they are interested through agreement signed jointly.

For your information, the charters of 30 boats under the Swedish agreement are ready to be signed as soon as the agreement is ratified, [Page 1276] and I have no doubt that additional charters will be presented to you for signature on your side, especially for non-war-zone boats. I think this is an indication that the Swedes will be prompt in signing the charters for the full amount of 400,000 tons and in delivering the boats in accordance with the terms of the agreement. I therefore recommend that you do not insist on replacing vessels being named either according to the terms of the modus vivendi or in accordance with the notification mentioned above that Owen made to the Swedish Foreign Minister. The risks we run in letting vessels leave without the corresponding tonnage leaving Sweden are very small, for should there be a marked tendency on the part of the Swedes to move boats back to Sweden without free movement of boats from Sweden, this would indicate that the agreement was not being lived up to and it would then be possible to bring the boats coming from the other side into British port. I would like you to cable me quickly what attitude you will adopt, as the note in your telegram No. 652 of June 13 will no longer be applicable owing to the nonexistence of the modus vivendi once the general agreement is signed.

Laughlin