Memorandum by Mr. Harry C. Hawkins, of the Treaty Division, of a Conversation Between the Swedish Minister (Boström) and the Assistant Secretary of State (Sayre)

The Minister inquired regarding the status of the preparations for the proposed negotiations. Mr. Sayre replied that up to the present the personnel available for making the necessary studies had been completely occupied with similar studies in connection with proposed negotiations with other countries. However, Mr. Sayre stated that the plan is to take up the question of the negotiations with Sweden immediately after Christmas.

The Minister said that he had in mind for the moment only exploratory discussions designed to lay the basis for the negotiations. Mr. Sayre agreed on this point. He said that the best procedure apparently would be for each government to submit its desiderata to the other and then see if a basis exists for entering into more definite and detailed negotiations.

The Minister indicated that he is under instructions to find out [Page 723]whether assurances could be obtained that no action would be taken under the National Industrial Recovery Act which would limit the importation of pulp and paper from Sweden. Mr. Sayre said that we must of course consider the National Industrial Recovery Act in relation to the proposed agreement; that if the domestic recovery program succeeds in increasing prices materially there might be a serious influx of imports. He said however that he does not by any means despair of finding a means of reconciling commitments to Sweden regarding importation of Swedish products with the domestic recovery program; that this question will be taken up with the appropriate authorities of the recovery administration next; week. The Minister, in reply to a question from Sayre, implied that it would not be necessary to include a provision concerning the National Industrial Recovery Act in the proposed agreement; that Sweden might be satisfied with collateral assurances of some sort.