740.00112 European War 1939/9288: Telegram

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

6673. On the basis of previous telegrams from our Legation in Stockholm (Stockholm’s 2883, September 10; 3039, September 22; [Page 816] 3379, October 18, and 3405, October 20, repeated to you as the Legation’s 551, 568, 661, and 672.98), OEW99 is very much disturbed by volume of Swedish iron ore shipments in September which is more than double the amount we had been led to expect.

It is felt that Swedes should be told that while we appreciate their recent efforts to reduce exports, we must remind them of our strong disapproval of exports in excess of last year’s amount and of their firm obligation under the War Trade Agreement1 not to permit exports beyond 9.9 million tons, in view of the fact that 8.2 million tons of ore have been shipped through September 30. Since the figure 9.9 conforms to the Fitzmaurice formula on normal trade and represents a level not thus far exceeded by shipments in any year of the war, OEW believes most strongly that no ceiling figure in excess of it should be recognized. We suggest that you discuss urgently presentation to the Swedes of a warning along these lines in collaboration with MEW.2

OEW believes that consideration will have to be given to positive measures designed to protect our interests unless the Swedes give a satisfactory reply to the warning. Sent to London, repeated to Stockholm.

Stettinius
  1. None printed.
  2. Office of Economic Warfare, Foreign Economic Administration.
  3. Anglo-Swedish War Trade Agreement of December 7, 1939; text not printed, but for substance, see W. N. Medlicott, The Economic Blockade, vol. i, in the British civil series History of the Second World War (London, His Majesty’s Stationery Office, 1952), p. 141. See also correspondence leading to the War Trade Agreement between the United States, the United Kingdom, and Sweden signed September 23, 1943, pp. 739 ff.
  4. British Ministry of Economic Warfare.