740.00112 European War 1939/11075a: Telegram
The Secretary of State to the Minister in Sweden (Johnson)
Washington, June 17,
1944—5 p.m.
1216. From Department and FEA for the Minister, Ravndal82 and Fagen.83 Department and FEA wish to receive your views on the following matters which have been discussed with Foot and Riefler and are under consideration here:
- 1.
- Desirability of proposing to Swedes that in view of improved atmosphere now prevailing it may be mutually desirable to consider new over-all trade negotiations dealing with extension of present war trade agreement in amended form beyond present expiration date of December 31, 1944. It is contemplated that such negotiations would take place about September. This proposal if made to Swedes would also include request that no commitments be made to enemy for 1945 pending conclusion of negotiations with us and confirmation by Swedes of fact that they have as yet made no commitments to the enemy for 1945.
- 2.
- The probable supply and other desiderata which the Swedes might regard as constituting an acceptable quid pro quo for an extensively revised agreement for the period following December 31, 1944.
- 3.
- That as preliminary to over-all trade negotiations mentioned in 1 and 2 above, comprehensive discussions be undertaken with the Swedes with the object of reaching a satisfactory agreement both on violations and on necessary clarification of provisions of the present war trade agreement which in operation have revealed wide difference between our interpretation and that of the Swedes. We feel that it may be desirable to raise problem of violations and clarification in connection with proposal for comprehensive discussions, so as to focus our full bargaining power on objectives which have current value. We wish to avoid offers of reparation from Swedes for violations of such a nature that they could not logically be refused although they might represent no real economic warfare benefit to us under present conditions (for example reduction of iron ore ceiling by amount of 1943 excess export is less important now because of reduced enemy steel production due to shortage of alloy metals). [Page 570] We are considering that comprehensive discussions of Swedish as well as our own immediate desiderata under the present agreement should take place as soon as possible, preferably not later than July 15, in London if the present ban on communication has been rescinded, otherwise in Stockholm.
- 4.
- In order to create a favorable atmosphere for such discussions we propose to grant subject to MEW concurrence in the near future certain supply requests of the Swedes. These will include 80 tons of buna for Goodyear, tire cord fabric, carbon black, reclaimed rubber asphalt and probably Chilean nitrates. We believe this will indicate to Swedes that under favorable circumstances we are not averse to granting additional supply concessions and should whet their appetite for larger quantities and other concessions in the future. Major supply concessions will, however, be reserved for the discussions planned for July and the subsequent negotiations so as to protect our bargaining power.
We would appreciate receiving your views as quickly as possible so that work can be begun on drafting a joint Anglo-American agenda for the proposed discussions in July and for later over-all negotiations.
This telegram is being repeated to London. [Department and FEA.]
Hull