868.48/2087: Telegram

The Chargé in the United Kingdom (Matthews) to the Secretary of State

1654. Department’s 1299, March 28, midnight [9 p.m.] We have just received from the Foreign Office the following letter giving their reactions to the proposal to transport to Greece in Argentine flag vessels the 20,000 tons of wheat donated by the Argentine Government:

“As you know, the Axis is at present considering the proposal put to them by the Swedish Government at our joint instigation that safe conduct should be given to Swedish shipping at present in the Baltic to carry wheat to Greece, provided that the Axis accept certain conditions. If the plan is accepted, our intention is that the wheat should be fetched from Canada as being the shortest haul.

In our view, the optimum solution of the Greek relief question is that the Axis should accept this proposal, since it has the great advantage from the preemptive point of view of getting Swedish ships out of German clutches and involves no cost either direct or indirect to the shipping resources of the United Nations. We also attach considerable importance to the acceptance by the Axis of our conditions, as minimizing the benefit to the enemy of relief shipments.

The shipments which we have already either initiated or agreed to are definitely regarded by us as interim arrangements to meet the emergency pending the institution of a proper controlled scheme.

In these circumstances we are not much taken with the idea that Argentine ships should be allocated for relief shipments which might otherwise be contributing, even if indirectly, to the common shipping pool; nor do we wish the enemy to get the idea that the series of interim uncontrolled shipments will continue indefinitely. If, however, the enemy do reject or delay the Swedish scheme on one pretext or another, it may be that we should have to fall back on this Argentine plan to tide the Greeks over.

In all these circumstances, we think the best thing to do is to stall, perhaps by saying that other proposals are under consideration, and that it is not possible to give a decision on their part. We have encouraged the Greek Minister here to take this line with his contacts in the Argentine.”

Matthews