740.00112 European War 1939/8–1744: Telegram

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

3147. Legation believes it advisable to review history piston rings negotiations in view Department’s 1602, August 12, noon,35 as Department and FEA might wish to give consideration to various factors which Legation believes have strong bearing on settlement and final outcome on these negotiations. The seriousness of export of piston rings from Sweden to enemy Europe was first raised by Department and FEA in 366, March 7, 5 p.m.36 which instructed Legation to request Swedes to place embargo on piston rings. 490, March 23, 9 p.m.36 instructed Legation to pursue any course of action deemed most effective by it in obtaining complete embargo. London’s 108, March 27, 9 p.m. (2493 to Department)36 likewise restressed importance of obtaining prohibition of exports on basis information available in London.

Legation’s 1059, March 29, 2 p.m. (238 to London)36 reported that Sohlman had arranged for refusal export licenses for piston rings for second quarter and his informal request that as compensation for embargo, Allies place orders for 300,000 kronor piston rings for 1944. Department’s 639, April 11, 6 p.m.36 stated our Government’s willingness to comply with the request and again stressed urgency for immediate action. Question of urgency was again raised Department’s 826, May 4, 9 p.m.36 In Department’s 1220, June 19, 10 a.m.,36 Department and FEA restated objective of total prohibition and confirmed offer to purchase piston rings to value 300,000 kronor. Legation’s 2226, June 20, 10 p.m.36 reported that while during period of negotiations no export licenses had been granted for piston rings destined for enemy Europe firm had taken position it could not cancel all outstanding orders. Department and FEA considered this disappointing. (Department’s 1251, June 24, 3 p.m.36).

Difficulties in company’s compliance with our requests were emphasized and elaborated upon at time of visit of Chairman of Boards of Directors of Davy Robertson (Legation’s 2537, July 9, 10 a.m., not repeated to London and Legation’s 2619, July 14, 8 p.m., repeated to London as my 69337).

In view of these difficulties we recommended that (1) United States supply piston rings for 200 Twin Row Wasp engines, (2) we provide [Page 613] suitable furnace for manufacture of piston rings required by Swedish Air Forces; (3) we reimburse Davy Robertson for the 50–60,000 kronor value of piston rings they would have to scrap; (4) we place orders to compensate Davy Robertson for outstanding orders with enemy Europe which it would have to cancel. It should be noted that Davy Robertson was anxious to be permitted to export 140,000 kronor of outstanding orders but Legation took position pursuant to Department’s and FEA’s instructions that because of great benefit derived by enemy from export of piston rings nothing short of complete embargo would be satisfactory.

Legation naturally indicated in accordance with Department’s and FEA’s authorization that our Government would be willing to compensate Davy Robertson for loss incurred as direct result cancelling orders as result of compliance with our request for continuance of total embargo.

London’s 266, July 20 (5757 to Department)38 raised for first time possibility that the piston rings being exported from Sweden were not sufficiently important to enemy to warrant our spending any funds to prevent any exports thereof. As stated in its 2758, July 25,38 Legation advised that withdrawal of our offer at this time would undermine confidence in our good faith. Department’s 1511, July 2938 implied furnace could probably be delivered. Furthermore its 1590, August 1038 stated it was probable Wasp piston rings could be supplied from England and agreed that our compensation offer was still open.

The Legation believes that only bases on which we can in good faith obtain continuance of complete embargo are set forth in its 3021 August 9 (864 to London),39 It would be unfair to the firm to advise them that an electric melting furnace will be furnished when we know it is extremely unlikely that this can be arranged (Department’s 1590). Moreover in view of strong interest of Swedish Air Force in obtaining this furnace for manufacture piston rings for its use an unfulfilled promise for delivery of furnace may have undesirable consequences with Swedish Government at a time we are pressing for far more important concessions than those under reference.

In view long period of negotiations, which Legation, pursuant to Department’s and FEA’s instructions, has increasingly taken strong position that export embargo is a matter of military necessity, Legation believes that only alternatives are to withdraw our request and accept undesirable consequences or to fulfill moderate requests of [Page 614] Davy Robertson and Swedish Air Force as summarized Legation’s 3021, August 9.

It is to be emphasized that the Legation seems to have succeeded to date in accomplishing the specific and urgent aim set forth by FEA and Department in telegram 490, March 23, subsequent to which it appears that this aim is found to be of less value than first supposed with consequent difficulties in settling the obligations meanwhile undertaken by the Legation under instructions.

Legation should appreciate Department’s and FEA’s further instructions before it takes final action.

My 908, August 17, midnight repeats this message to London.

Johnson
  1. Not printed; it stated that the present situation did not warrant any concessions to Sweden to obtain an embargo on export of piston rings to Germany (103.9169/8–1244).
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  16. Not printed; it suggested that the Davy Robertson Company be supplied an electrical furnace and be given fair compensation for cancelled orders and lost business in return for maintaining a complete embargo on export of piston rings to Germany (740.00112 European War 1939/8–944).