740.00112 European War 1939/10297: Telegram
The Minister in Sweden ( Johnson ) to the Secretary of State
[Received March 1—3:17 p.m.]
697. After an unsuccessful attempt had been made in London to determine from Hägglöf indirectly whether Swedish-German Trade Agreement would prevent acceptance by Swedes of our formula for spacing iron ore exports (see Department’s 319, February 2952), British Commercial Counsellor here raised with Sohlman53 general question of relation between exports of iron ore to Germany and imports of coal and coke. Sohlman has now replied informing us that [Page 476] agreement with Germany permits Sweden to reduce deliveries of iron ore if Germany does not fulfill her obligations to deliver specified quantities of coal and coke. On other hand agreement does not give Germany right to claim quicker deliveries of iron ore on basis of quicker deliveries of coal and coke.
Legation believes this statement prevents Sweden from arguing that our request for 6 months’ ceiling runs counter to their obligations to Germany. Sweden will be further questioned by Legation as to manner in which determination is made that Germany has failed to deliver coal and coke in accordance with terms of agreement, i.e., whether the German delivery quotas are divided into quarterly or semi-annual subquotas.
My 151 repeats this to London.