740.00112 European War 1939/10486
The American and British Legations in Sweden to the Swedish Ministry for Foreign Affairs 58
Aide-Mémoire
1. The Government of the United States of America and His Majesty’s Government in the United Kingdom have used their best efforts to carry out their engagements under the Swedish-Anglo-American economic agreement of 1943. They expected that the Government of Sweden would strictly observe the provisions of that agreement and that there would be in consequence a marked reduction in the aid given by Sweden to their enemies. The results obtained during the last half of 1943 were not what the two Governments believe they were justified in expecting.
2. Certain grievances of which the two Governments complain and in respect of which they are asking reparation are set forth below:
(a) The export of iron ore in 1943 from Sweden to Germany, associated countries and occupied territories in excess of “normal trade” as defined in the Anglo-Swedish war trade agreement of 1939.
The two Governments, in their urgent communications of December 1 and January 22 last, asked the Government of Sweden to restrict Swedish exports of iron ore to Germany, associated countries and occupied territories to 200,000 tons in any one month and to 488,000 tons in the first quarter of 1944. The two Governments have noted the reply to this request which was contained in the Swedish Government’s memorandum of February 24, 1944.59 They have also noted [Page 479] that contrary to their expectation Swedish exports of iron ore approximated 450,000 tons in the month of January. The two Governments are deeply disturbed over this development and feel it necessary to obtain from the Government of Sweden a satisfactory agreement with respect to exports of iron ore during the immediate future.
It is pointed out in the Swedish Government’s memorandum of February 24 that no special limitation, other than the 7,500,000 ton ceiling for 1944 and the fixed relation between exports of iron ore and imports of coal or coke, was foreseen in the Swedish Declaration of 1943 with reference to exports of iron ore. The two Governments nevertheless consider that they are justified in expecting from the Swedish Government a limitation of iron ore exports during the first half of 1944 to an amount which does not represent a larger percentage of the 7,500,000 ton ceiling for the whole year of 1944 than the averages of the precentages exported in the first six months of the years from 1938 through 1942 in relation to the total of iron ore exports in those five years.
The offer of the Swedish Government to reduce iron ore exports to Germany, associated countries and occupied territories in 1944 by the amount by which the 1943 exports exceeded the ceiling established in the Anglo-Swedish war trade agreement of 1939 is accepted and the two Governments expect that this reduction will be made during the first half of the current year.
The two Governments cannot agree, however, that 86,000 tons represents the amount by which in 1943 the ceiling established in the Anglo-Swedish agreement of 1939 was exceeded, since this figure resulted from what they believe to be an unpermissible method of calculating “normal trade”.
The two Governments must insist that the correct figure for “normal trade”, which all concerned had previously accepted, is 9,900,000 tons and that it is this figure which must be taken as the basis for the computation of the deduction.
Official Swedish statistics furnished monthly to the Allied Governments by the Ministry of Foreign Affairs indicate that a total of 10,257,073 tons of iron ore was exported to Germany, associated countries and occupied territories in 1943. On the basis of this figure it would follow that the deduction to be made is in round figures 357,000 tons.
Swedish exports of iron ore during the first six months of 1944 might be expected to approximate 2,940,750 tons, if the average of the five years from 1938 through 1942 is taken as the basis for the computation. After deducting the excess exports in 1943, the ceiling for Swedish iron ore exports during the first six months of 1944 would become 2,583,750 tons. The Swedish Government is requested to assure the Allied Governments that it will limit Swedish exports of iron ore to Germany, associated countries and occupied territories to that ceiling during the first six months of 1944.
(b) The continuing grant through a clearing deficit of a substantial credit to Denmark.
The Allied Governments ask for assurance that termination of credits of this kind covered by the War Trade Agreement will be arranged to their satisfaction.
[Page 480](c) The export to areas under German control of various means of transport, such as railway rolling stock and equipment and bicycle parts in contravention of Paragraph XI (1) of the Swedish Declaration in the 1943 economic agreement.
The two Governments must ask for an assurance from the Swedish Government that these exports will immediately cease.
(d) The ineffective nature of the steps taken by the Government of Sweden in pursuance of its undertakings in the so-called two point letter embodied in the 1943 economic agreement.
The marked increases in the 1943 exports to Germany, particularly of ball bearings, balls and rollers and high speed steel, have surprised and disappointed the two Governments. They would be interested to learn what steps the Swedish Government took in this connection and why those steps failed.
Moreover, in view of the great increase in the value of Swedish exports to Germany in 1943 over those in 1942, especially in the last five months of 1943 as regards ball bearings (rubric 1527) and balls and rollers (rubric 1529), notwithstanding the undertakings of the Swedish Government in the so-called two point letter, the two Governments consider that they are justified in expecting that the Swedish Government will take still further steps to reduce exports in 1944 of all three balls and bearings rubrics.
3. The attention of the Swedish Government has already been invited to the undertaking in Paragraph 7 of the Swedish Declaration of 1943. The two Governments consider that they are justified in asking for an assurance from the Swedish Government that it will immediately arrange with respect to commodities or groups of commodities the export of which is regulated in 1944 by the economic agreement of 1943 that the export of such goods during the first half of 1944 will not exceed the average rate of the export of such goods during the corresponding period of the five years from 1938 through 1942.
The two Governments have noted the statement in the Swedish memorandum of February 24 that the Government of Sweden will, as a matter of course, see to it that the stipulations of Paragraph 2, Section 7, of the Swedish Declaration will be fully observed. What the two Governments desire is a new undertaking which might take the form of an addition to Section 7, providing that the principle above set forth would be applied to all items specifically mentioned in the economic agreement of 1943 and on which there have been fixed definite ceilings.
4. The Government of the United States and His Majesty’s Government desire to emphasize the great importance which they attach to the very early receipt of the assurances for which they are herein asking. The two Governments hope they may at the same time receive from the Government of Sweden an expression of its fixed [Page 481] intention scrupulously and in every particular to observe the terms of the 1943 economic agreement.