740.00112 European War 1939/8593: Telegram
The Secretary of State to the Ambassador in the United Kingdom (Winant)
3709. Your 3745, June 1,68 and other telegrams relating to oil for Sweden. We are in a position to authorize you to agree on behalf of this Government to the Swedes importing between January 1 and October 1, 1943, a total of 120,000 tons of petroleum products exclusively for the use of the Swedish armed forces, subject to our approval of the final terms of the Swedish undertaking on the transit traffic. Please cable proposed text.
When the occasion arises, you should inform the Swedes that this total of 120,000 tons represents the full quota for 1943. The balance of the petroleum products to be lifted under this quota must, of course, be carried in Swedish tankers and lifted from the Caribbean and Gulf areas.
This arrangement would carry with it our permission for the Julius to make the self-compensating voyage.
The final agreement will be predicated upon the following conditions: (1) a general agreement will be reached on the other matters under negotiation with the Swedes, (2) the Swedes will expressly reaffirm that these petroleum products will be reserved for and used exclusively by the Swedish armed forces, and (3) satisfactory agreement will be reached with the Swedes along the lines suggested by Von Shilling69 with respect to control measures in Sweden permitting at the minimum American inspection of all Gothenburg ships which intend to off load petroleum products in Sweden.
(For your information, the authorization for the quota of 120,000 tons was given on the express condition “that competent supervision of such petroleum products gives us reasonable assurance that they are not used for the benefit of the Axis powers.”)
[Draft documents for a war trade agreement between the United States, the United Kingdom, and Sweden were agreed upon by the negotiators for the three countries in London. Copies of these documents were handed to the Swedish delegation at a final meeting on June 19. They were transmitted to the Department of State as enclosures to despatch No. 9667, June 21, 1943 (not printed). For texts finally accepted, see enclosures to despatch No. 11348, September 24, from the Ambassador in the United Kingdom, page 805.]