740.00112 European War 1939/10–944: Telegram
The Minister in Sweden (Johnson) to the Secretary of State
[Received 9:23 p.m.]
4097. For Department only. When the joint Anglo-American letter threatening punitive action (Legation’s 4070, October 6, 9 p.m., 1226 to London for Ambassador only) was handed to Hamberg October 7, he submitted that since SKF had voluntarily agreed completely to stop all exports to Germany and satellite countries of ball and roller bearings and parts thereof and ball-bearing machinery, it was hoped that the British and American Governments would agree (a) to the immediate cessation of all discriminatory action against SKF and its affiliated companies; (b) to use their best efforts to insure the restoration to SKF after the war of all SKF property in Germany and in countries now or previously during the war under the control of Germany; (c) to confirm the undertaking regarding the taking over of ball-bearing machinery, ball and roller bearings and parts thereof mentioned in the letter of Messrs. Griffis and Waring dated June 9, 1944;88 (d) to give the necessary facilities to SKF for its exports and payment therefor during and after the present war and to this end appropriately to instruct the Combined Production and Resources Board and other authorities concerned; and (e) to allow SKF access to raw materials and other equipment and material needed for SKF’s production.
It was made quite clear by Mr. Hamberg that SKF’s action would not be conditional on the satisfaction of the above points but it was his feeling that in view of what SKF would do it might properly be expected that the British and American Governments would in return do something for SKF.
The oral reply given to Hamberg by Waring and Ravndal on October 6 and reiterated by Waring the following day was that while the two Legations could not make any commitments there was no doubt in our minds that the company’s request would receive sympathetic consideration. It was evident that Hamberg had expected this reply in view of what I had previously told Mr. Boheman (Legation’s 4053, October 6, 2 p.m.,89 1221 to London, for the Ambassador only).
Specifically with regard to the points made by Mr. Hamberg he was advised that it was thought by the two Legations as regards (a) this was a matter primarily for the decision of the United States Government; (b) there was no apparent reason why property clearly belonging to SKF should not be returned to it; (c) the question of the interpretation [Page 647] of the Griffis-Waring letter of June 9 would be referred to Washington and London (Legation’s 4066, October 6, 9 p.m., 1225 to London for the Ambassador); (d) once the company had ceased dealing with the enemy there would appear to be no reason for discrimination against SKF; (e) the needs of liberated areas would necessarily come first and it was not now known what supplies would be available after the war for neutral countries but otherwise there would appear to be no reason for discrimination against SKF.
My British colleague is telegraphing the Minister of Economic Warfare that he trusts that once the Board of Directors of SKF have formally ratified the decision completely to stop all exports to Germany and satellite countries of ball and roller bearings and parts thereof and of ball-bearing machinery, the British and American Governments will take into urgent and sympathetic consideration the matter of giving the company the desired assurances.
As I have previously reported, (my 4053) I fully agree with this position and urge, with reference to the Department’s 2011 of October 7, 11 a.m.,90 that the interested authorities of our Government give prompt and favorable consideration in so far as this may be practicable in light of our laws and regulations. It is my opinion (my 4053) and the British Minister fully concurs that it is of the utmost importance that our threatening letter should be kept secret and given no publicity.
My 1243, October 9, 7 p.m. repeats this to London for the Ambassador only.