740.00112 European War 1939/11001: Telegram

The Minister in Sweden (Johnson) to the Secretary of State

2121. From Griffis and Poteat for Department and FEA. Following supplements our 2115, June 12, 7 p.m.80 (562, June 12, 7 p.m. to London) and gives context of the final meetings at which letters consummating the deal were exchanged:

Paraphrase of telegram received by American and British Ministers on June 11 was shown SKF at first meeting held morning of June 12. (Message was Department’s 1174, June 10, 7 p.m.)

SKF declared this was unacceptable as it meant in effect that there was no agreement. We called attention to fact that SKF had not objected June 9 to our reservation of freedom of action and that throughout negotiations, this had been quite clear. Their objection was to having such reservation in writing and they asked that it be made orally. In keeping with their request, we had asked our principals for instructions and were now able to make this verbal statement. The purpose of giving them the gist of these instructions in the form of the above paraphrase was simply to avoid any possible misunderstanding. We adjourned with no action having been taken to meet at 5 o’clock in afternoon.

At 5 p.m. meetings were resumed with Company and we were shown by SKF informal statement to effect that although our views on future policy had been heard by them, they were unable to regard these as part of the contract. Mr. Griffis stated we had time and again stressed to SKF our perfectly clear instructions and were now complying with Company’s request of June 9. However, as no progress was being made, he could not continue negotiations. Mr. Waring indicated agreement.

We declared that we were under entirely unequivocal instructions to give Company perfectly clear view of position and, lacking any other choice, we must inform Company that if our viewpoint was unacceptable to it, negotiations must be broken off. The Company’s present attitude was placing us in an entirely false position inasmuch as our respective Governments had been informed of the situation as it had [Page 568] been understood by us June 9. Extracts of a telegram from Mr. Dingle Foot to British Minister on June 10 referring to need for retaining freedom of action were read by Mr. Waring, substance of which follows:

I am sorry to have to emphasize in such a manner a position (namely retaining future freedom of action) which we have already made exceedingly plain. It is impossible for me to emphasize too strongly how important it is to reach an agreement with the Company as soon as at all possible. Accordingly I hope letters can be exchanged at once in view of present feeling here. (End of substance of extracts from Dingle Foot’s telegram.)

Finally we said that there either was or was not an agreement. At last Mr. Hamberg said he thought there had been enough argument and he therefore suggested that we go about exchanging letters. This was then immediately done without further ado.

We hope to leave for England tonight. Original documents are being sent by pouch on same plane. [Griffis and Poteat.]

My 568, June 13, 2 p.m. to London repeats this message.

Johnson
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