740.00112 European War 1939/10871: Telegram
The Minister in Sweden (Johnson) to the Secretary of State
[Received May 25—12:15 a.m.]
1854. Mr. Boheman sent for me yesterday afternoon and referred to suggestion which had been made by Mr. Griffis urging through his contacts that Government announce enforcement of decree No. 65 of 1937 and appoint a commission of Swedes to pass on what bearings are war materials. See my 1778, May 19, 5 p.m. (436 to London). He stated that this suggestion had been considered in highest Government quarters and that Government could not agree. I argued with Mr. Boheman along the lines set forth in Department’s 969, May 20, midnight58 and urged on him the vital necessity of Sweden taking some action in ball-bearing matter to meet our requests. I also asked him to explain why Government was unwilling to implement decree No. 65 by effective action. He said that Government could of course amend that decree by issuing a new one adding ball bearings to commodities of which export is prohibited, and that furthermore there was no legal impediment to Government’s declaring a complete embargo on ball bearings as we had originally suggested. He said the suggestions had been exhaustively examined and that Government had simply reached the conclusion that it was not action that Sweden could take. I asked him then if the Government’s action toward our ball-bearing requests resolved itself entirely to a matter of high policy. He replied that “exactly the case”. He endeavored to assure me, however, that they are desperately trying to find some formula within the terms of trade agreement with Germany to meet our views as far as [Page 550] possible. He mentioned that Mr. Hamberg was to make certain proposals to Mr. Griffis on May 25 and asked us to wait until we had these proposals “before discussing the matter further”. He pointed out that there have been no exports of ball bearings to Germany whatever since May 12 which indicates that he is fully informed of undertaking Hamberg has given in this connection (see Legation’s telegram 1683, May 12, 3 [5] p.m., from Griffis; 404 to London). I thereupon urged Mr. Boheman that on no account should this de facto embargo be lifted and asked him to examine urgently possibility of continuing it in this form at least for some months, suggesting that terms of Swedish agreement with Germany would fully cover such action. He objected that if this complete embargo is carried too long Germans will smell a rat and return with their complaints and threats to Stockholm. We then agreed to postpone any further discussion until after Mr. Griffis has received SKF proposals on May 25.
Griffis informs me that Hamberg held a meeting of directors SKF yesterday which lasted entire day. He is holding a stockholders’ meeting today and another board meeting. He returns to Stockholm tomorrow and Griffis and Poteat are expecting to receive definite written proposals from the company which they will endeavor to improve and submit by telegraph. These are undoubtedly the proposals referred to by Boheman yesterday afternoon. Please inform FEA.
My 460, May 24, 10 p.m., repeats this message to London.