740.00112 European War 1939/8801: Telegram

The Minister in Sweden (Johnson) to the Secretary of State

2027. Swedish officials concerned in studying texts of draft documents for Anglo-American-Swedish trade agreement profess themselves privately to be greatly disturbed about formula covering transit question and limitation to 120,000 tons of goods not on list. They are particularly upset by use of expression that “Swedish Government undertakes”. Reasons are those which I have reported to Department in many previous telegrams that Swedish Government has for internal political reasons as well as because of prospective difficulties with Germany thought it essential that action taken by Sweden to curtail or stop transit traffic should appear to be a unilateral act of Swedish Government and not result of bargaining with or pressure from Allied Powers.

There are a number of other points familiar to Department and American negotiators which give Government concern but matter is still under concentrated study and no formal reactions have been received so far. Officials in favor of agreement state that if Government gives favorable decision, which now appears possible, it will be entirely on grounds of policy as it is considered that agreement imposes much greater obligations on Sweden than it confers benefits. Changes of phraseology are to be requested.

Repeated to London as my No. 336 for Riefler, Cumming and Canfield.

Johnson