740.00112 European War 1939/5939: Telegram

The Secretary of State to the Ambassador in the United Kingdom (Winant)

3568. Your 3719, July 4.

The Board of Economic Warfare approves increase to 30,000 tons quarterly provided the agreement as finally negotiated is satisfactory to this Government.
It will, of course, be necessary that any agreement which may be entered into must provide for a division of this 30,000 tons allotment. The Board of Economic Warfare has suggested the following division: 6,550 tons of aviation gasoline, 21,150 tons of gas and fuel oil and 2,300 tons of lubricants.
The figures in paragraph 2 have been reached on the basis of the following figures. Estimated stocks in Sweden: aviation gasoline 27,995 tons, gas and fuel oil 105,105 tons, lubricants 34,907 tons; stock position desired by Swedes: aviation gasoline 40,700 tons, gas and fuel oil 145,700 tons, lubricants 12,400 tons; present quarterly consumption: aviation gasoline 5,000 tons, gas and fuel oil 16,275 tons, lubricants [Page 349] 5,000 tons; assumed quarterly imports by products on 30,000 tons total basis: figures given in paragraph 2 above,; date on which desired stock position would be reached if present consumption continues: for all three categories of products, August 1, 1944; estimated subsequent consumption per quarter after desired stock position is reached: aviation gasoline 5,700 tons, gas and fuel oil 18,600 tons, lubricants 5,700 tons; percent increase in consumption: 14 percent for all three types of petroleum products. Please telegraph your opinion on the division suggested in paragraph 2 after you and the British have checked with Swedes on suggested division and on accuracy of Board’s estimates in this paragraph on stocks and consumption.
Negotiations as to the economic concessions described in paragraph 2 of your 3719 appear to be satisfactory. According to Ministry of Economic Warfare, the Swedish Government is ready to give assurances that no arsenic will be exported to Germany; we assume that this commitment will also include exports of arsenic to any destination controlled by the Axis.
With respect to the adequacy of the military concessions referred to in paragraph 3 of your telegram, it is assumed that the British military authorities who are considering these proposals will consult with the appropriate American military authorities. In this connection, we are repeating to you separately Stockholm, no. 1577 of June 21.
Reference your paragraph 4. We agree to eliminate any statement to the effect that the petroleum quota is subject to revocation at any time. However, this must be the result which is achieved, and it is obvious that we cannot undertake to make an unconditional commitment for any fixed period to supply petroleum products. Perhaps this issue, which is largely one of phrasing, can be avoided by eliminating any reference whatsoever to the duration of the quota but at the same time leaving no reasons for an understanding on the part of the Swedes that a definite duration for the quota has been agreed to.
Your paragraphs 5 and 7 are satisfactory.