740.00112 European War 1939/10–2444: Telegram
The Minister in Sweden (Johnson) to the Secretary of State
[Received 10:42 p.m.]
4331. It is thought by Ståhle and Hire (the latter is in charge of the German Section of the Commercial Department of Swedish Foreign Office) that I shall be informed by Mr. Boheman tomorrow or Thursday what the Swedish Government has decided with reference to our informal suggestions that Sweden terminate the export to Germany of products of importance to the German war effort (Department’s 2122, October 21, 7 p.m.1 and previous related correspondence). The British Minister and I have not called on the Foreign Minister since we have reason to believe from numerous conversations with Mr. Boheman and others that our objectives may be attained this week. These conversations have of necessity dealt with our desires in detail.
I gather that the Swedish Government may make a proposition looking towards the stoppage of the exports in which we are interested in exchange for the immediate shipment of a reasonable quantity of buna, Swedish necessity for which is desperate. Mr. Ståhle believes in this connection that we shall be asked to give firm assurances that 1500 tons of buna plus accessories will be placed aboard a Swedish ship which is due to arrive in New Orleans towards the end of October.
According to Hire a problem faces the Foreign Office in the matter of stopping the exports of lithium carbonate (Department’s 2099, October 19, 3 p.m.1) since this commodity is the basis of a barter agreement involving a nickel substance which is wanted by the Swedish Armed Forces.
As for iron ore, it is expected by Ståhle that the offer will be to keep exports down to the present low level (Legation’s 4227, October 17, 8 p.m.,1 1302 to London) with Grangesberg cooperating. Boheman discussing same commodity with me on Saturday indicated that Government would probably propose to stop all exports of iron ore after arrival of buna safely in Sweden. Boheman seems to be of the firm opinion that the Germans attach a genuine prestige importance to the iron ore shipments out of proportion to what their present intrinsic importance can be, and that if Sweden stops all iron ore shipments the Germans will probably cut off the Göteborg traffic. It is for this reason that he said they desire that the iron ore shipments be kept to the present low level until the buna has arrived.
[Page 652]Possible method of procedure in effecting stoppage of trade in other products will be, according to both Ståhle and Ihre, to postpone shipments and otherwise to prevent exports under plausible excuses without immediately disclosing to Germans Swedish Government’s decision—this in the hope that the Germans will not close the Göteborg safe conduct traffic before buna arrives.
A troublesome question is possibility that companies may bring claims against the Swedish State in connection with the Government’s requirement that they break contracts which they were encouraged by the Government to make for the year 1944. See my No. 4260, October 19, 8 p.m.3 We should resist any demands for compensation.
My 1351, October 24, 8 p.m. repeats this to London for the Ambassador and Stone.