740.00112 European War 1939/4747: Telegram
The Minister in Sweden (Johnson) to the Secretary of State
[Received February 20—1 p.m.]
311. Section I. Legation’s 96, January 17, 8 p.m. Under instructions from London British Legation about 10 days ago submitted to Swedish Government through Swedish-British Joint Standing Committee informal memorandum mentioning vastly increased demand for certain materials required by American and British military forces and requested that until a joint British-American survey of supplies is completed Sweden should refrain from pressing for issuance of navicerts covering certain raw materials from Latin America, hides from Argentina being especially mentioned. At same time assurance was given that British considered quotas mentioned in revised agreement reached in London late last December as appropriate and binding and would undertake to explain Sweden’s position to American authorities, also indicating that Sweden might desire to conduct its own negotiations. It concluded by stating that British had approved an increase from present 4 to 5 ships in Göteborg overseas service.
Because Swedish members of committee stated they could not submit them to Swedish Cabinet, paragraphs 4 and 5 were omitted from memorandum as originally drafted and with London’s approval, these were submitted verbally. These paragraphs are quoted in section III.
Swedish general supply problem was informally discussed by Greene7 and Klath8 with Foreign Office officials who stressed vital necessity of obtaining hides and other important raw materials for maintaining Swedish military forces and prevent disruption of economic life.
Section II. He pointed out that from Swedish viewpoint December agreements negotiated in London implied that navicerts would be available up to limit of quotas fixed and hoped that United States would not interfere with fulfillment of agreement although Sweden, of course, could offer no further concessions to United States as limit of these had been made in Swedish-British negotiations.
Following up these conversations an informal memorandum has been received from Foreign Office reiterating points made in preceding [Page 329] paragraph. Later by telephone Klath was informed that a total of 4,200 tons of heavy hides and 4,766 tons of wool had been purchased and paid for by Swedish Government and private firms most of which was in Buenos Aires and balance in Uruguay. Quarterly quotas in Swedish-British agreement are 3,000 tons hide and 1,800 tons wool. Swedish authorities are very desirous that navicerts be issued and that American Government facilitate exportation of these two items at the same time expressing willingness in other respects to cooperate in withholding requests for other commodities ending [pending?] completion of joint Anglo-American survey; it is understood that negotiations about hides and wool are now being conducted in London with appropriate Ministries.
Foreign Office states that Swedish Legation in Washington has been fully informed.
Section III. [“]4. There are many indispensable requirements which Sweden cannot obtain from South America, notably mineral oil. Sweden is dependent on the United States for this and other vital necessities, which His Majesty’s Government fear that the United States would see great difficulty in releasing in the present circumstances.
5. Moreover, the United States can clearly exercise considerable influence on the Argentine and Uruguayan Governments who may well be reluctant to grant at present any export licenses for the hides or other commodities in short supply. The issue of navicerts would in that event prove to be of no practical advantage to Sweden.[”]
Repeated to London.