103.9169 Stockholm: Telegram
The Secretary of State to the Minister in Sweden (Johnson)
964. Department and FEA think it highly important that Swedes should not be led to believe that we will accept settlement of bearing issue on the basis of their granting some other valuable concession to the enemy, i.e., “some other form of tribute”. (Your 1634, May 9th.)
In discussing possibility of blacklisting SKF under certain circumstances we recommend you emphasize specific accommodation to the enemy, such as having added to their plant with result that British preclusive purchases failed to cut into the amount of bearings scheduled for delivery to Germany, rather than simply their exports to the enemy within limits set by War Trade Agreement. We take this view because if at this stage we blacklist a firm merely for its exports within the ceilings, Swedes may argue that the present War Trade Agreement is of little value to them, and will be less concerned about possibility of its termination.