740.00112 European War 1939/10–2644: Telegram
The Minister in Sweden (Johnson) to the Secretary of State
[Received October 27—8:40 a.m.]
4367. As anticipated in my 4331, October 24, 8 p.m., 1351 to London Mr. Boheman informed the British Minister and me this afternoon and is similarly informing the Swedish Ministers at London and Washington that the Foreign Office has completed its conversations with the exporters of products of importance to the German war effort (Department’s 2122, October 21, 7 p.m.5 and previous related correspondence particularly Legation’s 4166, October 13, 7 p.m.,5 1274 to London) and the following results have been achieved.
Charcoal and pig iron stopped (all stoppages effective as of this date). Machine tools stopped with the qualification that one firm, Lidkopings Mekaniska Verkstad, has some machine tools ready for shipment which cannot be used in Sweden. The value of these approximates 500,000 crowns and it is hoped that the Allied Governments will be able to help in having orders for these goods placed to the end that this firm will not suffer too great a loss from meeting our wishes. Selenium stopped. Caesium chloride stopped. Cobalt slag stopped. Electric machines and motors and parts thereof stopped. Measuring instruments stopped with the qualification, however, that one firm, Aktiebolaget C. E. Johansson, has approximately 500,000 crowns of orders in process and the firm requests that we help it to obtain new orders for these instruments so that it will not be necessary to throw skilled laborers out on the street. This might be done through its selling companies in United States (Swedish [Page 654] Gauge Company, Detroit) and England (C. E. Johansson Ltd., Coventry).
Iron and steel: The total amount of steel of all kinds to go from Uddeholm, Hellefors, Hofors, and Bofors6 totals 4,000 tons. The total of the rubrics we have asked them to stop is 400 tons. The stoppage of exports of these 400 tons is regarded as feasible though it is thought that it would lead to a very narrow escape for the Gothenburg safe conduct traffic. There would still be 3,600 tons of permissible steels to be exported during the balance of the year. The Foreign Office suggests an alternative plan which it hopes will meet with our approval. It proposes that the Swedes be permitted to export about 2,000 tons of all kinds of steels including about 175 tons of the rubrics we wish to have stopped up to the time around December 1 when the Saturnus will have reached Gothenburg with the buna aboard to which reference is made below. Thereafter all exports of all kinds of iron and steel would be stopped.
Iron ore is now being exported out of three ports Halmstad, Otter-backen and Narvik. The only company exporting out of Halmstad is a German-owned company which is permitted to export 15,000 tons a month which means it still may export 30,000 tons up to the end of the year. This ore is of a very low quality. The amount which still may be exported out of Otterbacken is 21,000 tons for balance of year, which is also of a low quality. As for Narvik only 17,000 tons have been taken by the Germans out of that port during the past 4 weeks. Grängesberg is actively collaborating in keeping this amount low. (Legation’s 4227, October 17, 8 p.m., 1302 to London.)7 Swedes propose that they be permitted to continue this low rate of shipment since it is vital to them that the Gothenburg safe conduct traffic be kept open as long as possible and they have learned that the Germans have told Hitler without indicating how insignificant the amount of the iron ore shipments is that he must not close the Gothenburg traffic, otherwise the Swedes will stop shipments of iron ore out of Narvik. All shipments would be stopped immediately if the Gothenburg safe conduct traffic were stopped by the Germans.
Lithium carbonate. As indicated in my 43318 the Swedes have a barter agreement with the Germans under which they are to provide 20 tons of lithium carbonate in exchange for 75 tons of nickel sulphate plus 12 tons of cadmium. These are goods which are greatly needed for Sweden’s defense and the Swedes hope that we will permit them to continue this barter arrangement. However, if it is vital to us that the shipment of this lithium carbonate be stopped the [Page 655] export will be stopped but they would request us to assure them that they will be supplied with approximately 6 tons of cadmium.
The total of surgical instruments for which the Swedes request exception is 17,000 crowns. Legation assumes in view of the Department’s 2122 October 21, 7 p.m. (873 to London) that there will be no objection to making this exception.
It was stressed by Mr. Boheman that the Swedes have made no commitment to the Germans for trade in 1945 and unless the Allies should agree to certain exports with a view to permitting the Swedes to negotiate with the Germans for the maintenance of the Gothenburg safe conduct traffic all exports to Germany will cease January 1 (Legation’s 2718, July 21, 7 p.m., 728 to London). He added that when the Swedish Government closed the east coast ports it thought it had a well-founded hope that by Christmas Sweden would be able to trade with the Allies without German permission. It now finds from reports from its representatives in Allied countries and in Germany that its views in this regard were too optimistic and that it must reckon with waiting until the spring before Sweden will be able to trade with us. This means that Sweden expects to be completely isolated from trade with all countries beginning January 1 when its trade with Germany ceases and the Gothenburg traffic almost certainly will be closed unless we have permitted Sweden to negotiate a new agreement with the Germans good enough to induce the Germans to allow the traffic to continue. For this reason the Swedes must necessarily associate with our request for the stoppage of certain additional exports of importance to the German war effort Sweden’s desperate need for buna and accessories. The Swedish Government has reduced tire-borne traffic to the uttermost and yet the 35,000 buses and trucks operating in Sweden are now facing a situation wherein all tire reserves and material for their manufacture will have been exhausted in a very few months. Mr. Boheman pointed out in this regard that Sweden has to use trucks to get the firewood out of the forests and out of the way so that the timber can be floated down the rivers. He added that if Sweden cannot get the firewood out of the forests which is imperative now that the coal shipments have stopped and if Sweden cannot use trucks to transport milk and other food products from the farms to the population centers Sweden’s situation will be intolerable. If on the other hand Sweden can get buna and accessories from us it could hold out completely isolated until next July. Politically the Swedish Government is no longer concerned about Germany and is perfectly willing to be “rude” to the Germans but the Swedish Government realizes that German patience has been stretched to the utmost degree and it therefore feels unable to do anything which would make it impossible for Sweden to get these vitally needed supplies of rubber. [Page 656] Incidentally if Sweden does not get the rubber it will not be able to produce for us the pulp paper and timber et cetera which we will need from Sweden after the war.
Accordingly the Foreign Office feels it must ask us to give firm assurances that we will cover Sweden’s minimum needs for 1945 and in this connection assure it immediately that we will load on the Saturnus which is due to arrive in New Orleans the end of this week a total of 3665 tons of buna and accessories subdivided as follows: buna 2105, natural rubber 345, carbon black 380, tire cord 185, and for manufacture 1000 tons Svedopren: 300 tons of carbon black, 100 tons of magnesium oxide and 250 tons of “unknown chemicals”.
Total requirements for 12–month period including amounts requested for loading on Saturnus are buna 3700 tons, natural rubber 610 tons, tire cord 1000 tons, carbon black 1125 tons and for production of 1000 tons Svedopren same figures as desired for Saturnus. In addition Swedes would require other chemicals and ingredients necessary for tire manufacture from buna which are unknown here but estimated to amount to 500 tons. These figures exclude small stocks of buna, natural rubber and tire cord reserved for civilian supply but do take into consideration present stocks of buna and natural rubber for military purposes. Memorandum setting forth this information prepared by Rubber Department of Industrial Commission will be transmitted by next air pouch.9
It is believed that it would be satisfactory to Swedes if we would assure them promptly that we will load the amount specified for the Saturnus and undertake to cover Sweden’s minimum requirements for 1945. It cannot be emphasized too strongly that Sweden’s need for buna is desperate and that Swedes’ last opportunity to obtain enough buna to subsist at the minimum rate of consumption until next July is the Saturnus arriving at New Orleans at the end of this week. It is the considered judgment of the Foreign Office that if we cannot give these assurances with respect to rubber it will not be able to get the Swedish Government to support what the Foreign Office has succeeded in getting the exporters to agree to.
My 1365, October 26, 7 p.m. repeats this to London for the Ambassador and Stone.