740.00112 European War 1939/10–644: Telegram

The Ambassador in the United Kingdom (Winant) to the Secretary of State

8403. The question of a further Anglo-American démarche to Sweden was discussed with the Foreign Office and MEW today along the lines of the Department’s 8146, October 5, 7 p.m. The Foreign Office stated that its preliminary reaction to the terms of the proposed démarche was favorable with two possible reservations; (1) it is not certain whether it is wise at this time to make a definite commitment about giving consideration to Swedish supply needs in view of the possibility of wishing at a later elate to put pressure on Sweden with respect to postwar supplies and trade, and (2) the British do not like to make the threat implied in the last sentence of the proposed démarche as they fear that any threats made to the Swedes would only increase the reluctance of the Swedes to meet our wishes.

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After stating that the matter would be urgently considered, the Foreign Office and MEW approached us later in the day to show us a telegram from British Legation in Stockholm which makes them hesitate to come to an immediate decision. According to this message, which was shown the Embassy, the Secretary General of the Swedish Foreign Office told Mallet that he had had a long talk with Hamberg of SKF and had introduced him to the new Swedish Minister of Commerce.85 The SKF board of directors was scheduled to meet probably today and it is expected that a decision with regard to ball-bearing exports after October 12 will be taken this weekend. It was made clear to Mallet that there was no question of resumption of large scale deliveries after October 12. Hamberg was advised by Boheman, and supported by the Minister of Commerce, to cease all exports of bearings to Germany and German-occupied Europe, even those bearings which have been going to Norway and Denmark. The Swedish Cabinet had later approved this advice and it is thought it will prevail. The Government has promised the company that it would back up the company if Germany should complain at cessation of bearings exports. It was also made clear to Hamberg that the company should not attempt to drive any sort of bargain but should make a clean break and cut off all deliveries. Of course, it was added, in making the announcement of this action to the U. S. and the U. K. authorities, SKF could request the U. S. to cease persecuting its subsidiaries in the U. S. and that both Governments could be requested to reiterate assurances that SKF properties which might be confiscated by Germany would be restored to the company after the war.

Before coming to a final decision with regard to the démarche proposed by the Department, the Foreign Office wishes further to consider the matter in the light of Mallet’s information and they suggest that the Department may also wish to reconsider its proposal.

Sent to Department as 8403, repeated to Stockholm as 535.

Winant
  1. Bertil Ohlin.