740.0011 European War 1939/3445: Telegram
The Minister in Sweden ( Sterling ) to the Secretary of State
[Received 2:30 p.m.]
577. In making his farewell call yesterday before returning to Finland and retiring to private life Erkko7 gave me some interesting information. He has been continuously friendly; he is the soundest and best informed of my colleagues.
He stated that with regard to the fortification of the Ǻland Islands (see my 374, April 24, 10 a.m.8) the Finnish Minister for Foreign Affairs9 had recently visited Stockholm and after discussing the question in all its phases with the Swedish Government, the Finnish reply, although couched in friendly terms, was tantamount to a refusal of the Swedish proposal for joint action. The underlying reasons of the refusal, Erkko said, were (a) Finland was continuing the defense works herself; (b) she wishes to pursue in her present situation a more isolationist policy—friendly to all her neighbors, but taking no action which might lead to international complications during the period of reconstruction; (c) she could not forget how Sweden had broken her written agreement last autumn to send troops to the islands for their joint defense. The Soviet Government, he commented, had no objection to the fortification and while Germany had not been notified he did not doubt that the operations were known although no communication on the subject had been received.
[Page 555]Copy of this section to Helsinki.
In strictest confidence he told me that from absolutely reliable sources he knew that German High Command and War College were now busily engaged in working out plans for attack on Russia, to begin as soon as Western Powers were defeated. Main objects were to loosen Russia’s hold in Baltic and to gain all of Poland and Russian Ukraine. This information had been confirmed to him by Gunther10 who also told him of German plans for new status of northern states, when and if Germany was victorious in present war in west. Under this rearrangement Denmark would continue to hold her sovereignty and independence; southern Norway, as far north as Trondheim, would remain in German hands or placed under control by means of occupation of strategic points; northern Norway, Sweden and Finland would be compelled to form a loose confederation under economic control of Germany.
In confirmation of the Legation’s impression that Sweden, while officially and publicly proclaiming her strictly neutral attitude, nevertheless makes minor concessions to Germany, Erkko has positive knowledge that a few German ski troops passed through Sweden last month by railway to the Narvik area disguised in Red Cross uniforms. Gunther, he said, reluctantly admitted this fact.
As a keen neutral observer his remarks regarding present situation on western front have value. He believes that if Allies can keep up resistance for 2 or 3 more months Germany will be finished because of tremendous losses of best troops and lack of essential material.