740.00112 European War 1939/11–1544
The British Embassy to the Department of State
Aide-Mémoire
His Majesty’s Government understand that instructions have been sent to the United States Minister in Stockholm to request the Swedish Government to cease forthwith, or as from a fixed date in the future, all exports to Germany, and to inform them that in the meanwhile the tyre making requirements for which they have asked cannot be released. His Majesty’s Government further understand that a communication along the above lines has been made to the Swedish Legation in Washington.19
His Majesty’s Government do not agree with this decision, and are disturbed to learn that they were afforded no opportunity of expressing their views before action was taken, bearing in mind that economic warfare policy with regard to Sweden has hitherto been handled on a joint basis and that the Department were aware that His Majesty’s Government were in favour of the immediate release of the rubber, etc. against certain conditions to be entered into by the Swedish Government. The Embassy have accordingly been instructed to draw the attention of the Department to the following consideration:
- 1.
- As a result of restrictions on Swedish exports to the enemy already secured under the War Trade Agreement or now promised by the Swedish Government, and as a result of the cessation of all exports from the Baltic Ports, Swedish exports to the enemy are reduced to insignificant quantities of goods of little or no assistance to the enemy’s war effort.
- 2.
- Some time ago the Swedish Government indicated their intention in any case to stop all exports to Germany on January 1st, 1945, and they have now announced publicly that the trade agreement with Germany will not be renewed on expiry at 31st December, 1944. The Swedish Government have explained the various considerations that have made them reluctant to precipitate a crisis prior to January 1st, by stopping immediately their remaining exports to the enemy, and His Majesty’s Government are of the opinion that these considerations are valid.
- 3.
- The communication made to a representative of the Swedish Legation in Washington on November 6th19 as a result of which the Swedish Legation is understood to have reported to the Swedish Government in Stockholm that the military authorities in the United States insisted on an immediate embargo on all exports, and that in the meanwhile it was most unlikely that the tyre making requirements would be released evidently came as a complete surprise to the Swedish Government, who whether rightly or wrongly had formed the impression that the substantial progress they had made in meeting our [Page 666] economic warfare objectives was appreciated, and that their difficulties in making further immediate progress were understood. In this connection it is perhaps relevant that as recently as a few weeks ago, the Department themselves are understood to have proposed in a telegram to Stockholm that in return for embargoes on a further limited list of Swedish exports, the Swedes should be afforded sympathetic consideration of their urgent supply needs. It seems that the Swedish Government in putting forward their proposals for further embargoes at the end of October, and in asking for the release of tyre making requirements, were acting under the impression that in the light of the action they had already taken and the further steps they proposed to take to meet the wishes of the American and British Governments, their request for the release of tyre making requirements would be regarded by the American and British Governments as reasonable.
- 4.
- His Majesty’s Government attach importance to securing the embargoes promised by the Swedes at the end of October, which in the opinion of His Majesty’s Government comprise the remaining exports to Germany that might be of any significant assistance to the enemy’s war effort. His Majesty’s Government are most averse to acquiescing in a course of action that may well result in the Swedish Government refusing to implement these embargoes for a further few weeks.
- 5.
- His Majesty’s Government also wish to draw to the urgent attention of the Department certain other consequences of direct importance to the United Kingdom which are likely to result if Swedish tyre making requirements are not immediately released. As the Department is aware, His Majesty’s Government are extremely anxious that Swedish timber should be available for shipment to the United Kingdom as soon as transport is possible. The need for these supplies of timber is of course due to the serious housing shortage, largely resulting from the robot bomb attacks on Southern England and on London in particular. The Swedish Government in explaining their need for their tyre making requirements have pointed out that unless these are immediately forthcoming, their road transport situation will be extremely grave. Because of the shortage of coal, one of the important purposes for which trucks are used in Sweden is for the transport of wood for fuel either direct to the towns or to the rail head. If wood for fuel cannot be transported from the forests, the Swedish Government will be obliged to use as fuel construction timber which has already been cut and transported, and which would otherwise be available for export to the United Kingdom immediately shipment was possible. The same consideration applies to pit props, which are urgently required in France and Belgium. His Majesty’s Government cannot ignore the fact that a decision to withhold tyre making supplies for Sweden is likely, for the above reasons, to prejudice the procurement of timber that is desperately needed in the United Kingdom, and in this connection, His Majesty’s Government feel obliged to point out that in spite of our acute need for timber, negotiations with the Swedes for the purchase of this timber have been held up ever since May, in compliance with the wishes of the United States authorities, who feared that they might prejudice the attainment of our joint economic warfare aims. Furthermore, His Majesty’s Government are gravely concerned at the probable effect of this decision on the negotiations with the Swedish Government for a new financial agreement between [Page 667] Sweden and the United Kingdom, of which the Department is aware, and on the negotiations concerning Swedish participation in the United Maritime Authority.
In view of the foregoing considerations which compel His Majesty’s Government to the conclusion that the decision of the United States Government referred to above is unlikely to result in any material advantage to the American and British Governments, and is in fact only too likely to have the opposite effect, the Embassy is instructed to urge the Department to reconsider this decision and as an alternative to request the Swedish Government to undertake immediately that all Swedish exports to the enemy will cease as soon as the Swedish vessel Saturnus has arrived, and to inform the Swedish Government that on receipt of this undertaking the tyre making requirements will be released at once for shipment on the Satumus.21