740.00112 European War 1939/10752: Telegram
The Minister in Sweden (Johnson) to the Secretary of State
[Received 4:13 p.m.]
1645. For Crowley, Currie, Sheuer and Stone from Griffis. Mr. Douglas Poteat, Mr. Waring (who has been given powers of negotiation by Ministry of Economic Warfare) and I called on Mr. Hamberg, President of SKF, at the Enskilda Banken47 yesterday afternoon at 3 p.m., and were joined shortly by Mr. Marcus Wallenberg. At the outset Waring stated his position to the effect that despite any suggestions looking to a compromise which might have been made in previous talks with Hamberg, his instructions from his Government now were to associate itself completely with United States in the present negotiations and his Government was equally insistent with the United States that a complete stoppage of ball-bearing exports to belligerents must now be sought. The discussion developed substantially into a reiteration of discussion with Wallenberg the previous day (see Legation’s 1634, May 9, 1 p.m.; 387, May 10, noon to London), Mr. Hamberg urging a compromise position and we restating our position. However almost immediately both Hamberg and Wallenberg made the flat statement that whatever was done was now a matter for the Government; that the company could and would do only what was fully approved by the Government. Both men were familiar with fact that the Minister had already arranged for us to meet Boheman and were insistent that company could take no steps without full Government sanction. Wallenberg, however, seemed reluctant to end the meeting and asked what next step was in case negotiations failed. We stated that we were not here with threats but he was probably completely aware from his own associates in United States what next move would be. He indicated that he was thoroughly aware thereof. It was stated that we might say to the Government that we were convinced that a satisfactory [Page 537] deal could be made with the company if Government concurred. Hamberg stated, of course, that any negotiations would be subject to the company’s board which he would be willing to immediately call into conference. Upon his statement that our consideration of the value of their trade with belligerents must take into consideration their trade with neutrals such as Switzerland, Spain and Portugal where shipments might be stopped by the Germans, we restated our proposition that upon a theoretical calculation of their possible trade for the balance of 1944 and 1945, we would hold them harmless against losses of orders including such neutrals.
See my immediately following telegram 1646, May 10, 5 p.m.,48 repeated as my 390, May 10, 5 p.m. to London.
Legation’s 389, May 10, 4 p.m. repeats this to London. [Griffis.]