740.00112 European War 1939/7289a: Telegram
The Secretary of State to the Ambassador in the United Kingdom (Winant)
5869. 1. On November 12 the full Board of Economic Warfare adopted a resolution which, in summary, is as follows: It is hereby determined that the continuation of commerce with Sweden is approved and that oil shall be shipped to Sweden; this to be in consideration of agreements on the part of the Swedish Government of the nature described in the report submitted to the Board of Economic Warfare by a special Sub-committee appointed for this purpose.
The Recommendations of the Sub-committee are 12 in number and include recommendations with respect to the limitation of personnel and cargo traffic between Germany and Norway and Finland through Sweden, the conclusion of satisfactory arrangements with respect to Swedish shipping and Swedish commerce with South America, certain modifications in the War Trade Agreement, and other similar matters. A copy of these Recommendations is being sent to you by air mail.45
2. On November 16 the Department received a letter from Mr. Noel Hall of MEW, enclosing a copy of a message from the Prime Minister to the President, dated November 13, 1942.46 This message, in summary, is as follows: The British need with some urgency the cargoes of the two Norwegian flag ships, which cargoes are of especial importance to our war effort. The message then describes the cargoes and states when they must be prepared to leave. The message continues that the Swedes are unwilling to release the two ships; suggests that if the President will inform Boheman that we are prepared to increase the petroleum quota to 30,000 tons quarterly, the President may be able to obtain Swedish help about the ships. The message further states that the need for the material on the two ships is so urgent that it is hoped that we will use the oil to get the two ships released without injecting other demands upon the Swedes; and that the Prime Minister will support the President in any future negotiations to obtain the concessions which the United States Government may desire to obtain.
3. On November 20 the President wrote to the Secretary of State47 asking the Secretary to inform the Swedish Government that the 30,000 tons quarterly petroleum quota had been decided upon and that the Sveadrott, now at Port Arthur, Texas, will be released immediately; provided that the Swedish Government would agree to [Page 360] release the two ships and assist in their getting to England; and provided further that they would agree to the chartering of the 21 ships now in the South American coastwise trade to the Maritime Commission. It is further stated in this letter that it is expected that certain other concessions would be obtained, these being the concessions suggested by the Recommendations of the BEW; but that the increase in oil quota was not to be made contingent upon the obtaining of these concessions.
4. On November 20 this position of the United States Government was communicated to Boheman, who stated that the Swedish Government could not Consent to the clearance of these two ships for England; that the ships were “tainted” in the sense that they had become a major concern of the German Government, that the German Government had served notice on the Swedish Government that if these ships got to England, the Gothenberg traffic would be immediately stopped by Germany, and that to release the ships might involve serious military consequences. Boheman was uncompromising and it was our impression that he is unshakeable in his conviction that the request is an impossible one for the Swedish Government to grant as it involves consequences which that Government is not willing to risk. He expressed the greatest surprise and anxiety at the injection of this new condition into the oil discussions.
5. The British Embassy is telegraphing to London and asking for instructions. The Department believes that it will be useful if you would communicate with the proper officials in the British Government (and this would presumably include Sir Charles Hambro) in order that you may be able to inform the Department by urgent telegram of your opinion on the extent of British insistence upon the release of the two ships as a condition to the granting of the oil quota. At a second meeting this morning Boheman expressed the belief that the discussions could not profitably be continued with this condition present.