740.00112 European War 1939/10963: Telegram
The Minister in Sweden (Johnson) to the Secretary of State
[Received 1:05 p.m.]
2041. This is from Griffis and Poteat for FEA. With great assistance from your cable of instructions from Washington (see Department’s 1105, June 3, midnight, 4427, June 3, midnight to London) and undoubted help from General Eisenhower,72 we have substantially closed deal with SKF well within the limit of your instructions. Letters of agreement73 being drawn today and will be cabled you. In summary, agreement extended from September 1 to October 12 with no substitutions of any kind permitted. Shipments to satellite countries and machinery remain unchanged as outlined our 1909 May 28, 4 p.m., (481 May 28, 4 p.m. to London). Shipments to Germany however limited without substitution to 470,000 kronor per month approximately 21% of total original quota and 31% quota ex-aviation bearings. We have reserved all rights of future action as outlined our 1909. We have agreed to enter additional purchases of approximately 10 million kronor but please note that our liability to take up and pay for goods which by reason of this agreement fail of delivery to Germany, satellites and neutrals must be approximately 6 million dollars as it must include protection against possible shipments to neutral countries notably Switzerland, Turkey, Portugal, Spain and the Argentine which might fail if Germany cut off traffic in retaliation for this agreement. Please note this offer and commitments made early in negotiations (see our 1645, May 10, 4 p.m.; 389, May 10, 4 p.m. to London). Secret embargo still in effect and company stipulates [Page 565] that signing of this agreement must be kept strictly secret and subject only to announcement approved by Governments concerned. We have not taken action on SKF exports of steel as believe that if SKF shut off we would only assume a purchase liability with no results as many other companies here able to immediately fill German requirements. Accordingly, believe this matter substantially a subject for intergovernment discussion. We expect to sign this agreement almost immediately but will appreciate expedited comments. [Griffis and Poteat.]
My 532, June 8, 1 p.m., to London repeats this message.
- Gen. Dwight D. Eisenhower, Commanding General, European Theater of Operations, and Supreme Commander, Allied Expeditionary Force, which began cross-Channel invasion of France on June 6.↩
- The letters of agreement dated June 8 and 9 were transmitted to the Department by the Minister in Sweden in his despatch 3527, June 13; none printed. This understanding is often referred to as the Griffis Agreement in the negotiations that followed.↩