Foreign Relations of the United States: Diplomatic Papers, 1944, Europe, Volume IV

103.9169/12–1244: Telegram

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

London, December 12, 1944—7 p.m.
[Received 10 p.m.]

11032. For Department, Crowley and Fleming FEA from Stone. ReDepts 10329, December 11.³⁰ On afternoon December 12 American-British negotiations were opened with Swedes by presentation of memorandum set out below. Boheman’s reaction was on whole favorable and desire of Swedish Government to participate actively in rehabilitation of Europe was emphasized by him.

Following is text of memorandum:

“The United States and United Kingdom Governments agree:

(a) To maintain in force existing basic rations for the period of continued hostilities in Europe and for 90 days thereafter subject, of course, to the existing proviso that the rations may need to be modified in certain instances if this is rendered necessary by the current supply position.

(b) To adopt a liberal attitude towards Swedish requests for increased supplies in all cases where the supply position permits.

(c) In the event of the closing of the Göteborg traffic to raise no objection to Swedish stockpiling of her basic ration purchases up to one-quarter of the annual quantities involved and be ready to give favorable consideration to further stockpiling should entry to Swedish ports be closed for a period of more than 3 months. This provision as to stockpiling to be subject to Swedish Government giving full information with respect to such stockpiled purchases and being willing in the event of an exceptional shortage developing in any particular commodity to sell to the United States or United Kingdom Governments against a promise of future delivery to Sweden when traffic is reopened.

(d) In the post hostilities period to use their best endeavors up to the limits imposed by the supply position to see that goods are made available to Sweden in quantities sufficient to maintain her economy on a reasonable basis; and to proceed to examine possibilities of giving Swedish Government more precise indications of the allocations which it may be practicable to make for Sweden in respect of certain key commodities in short supply.

The Swedish Government agree:

(a) To continue in force the provisions of the 1939 war trade agreement and of the tripartite agreement of 1943 together with all the measures which the Swedish Government have subsequently taken and in particular completely to eliminate trade with Germany, occupied territories and satellite countries as from January 1, 1945 except as regards particular transactions specifically approved by the JSC in Stockholm.

(b) To make provision for full consultation and information regarding Swedish trade with Finland.

(c) To place an embargo on all trade and communications between, or via, Sweden and Japan.

(d) To give a general assurance that it is the intention of the Swedish Government in the post hostilities period to do all in its power to cooperate with the United States and United Kingdom in the general economic tasks involved in reconstruction and relief and in the orderly distribution of supplies throughout the world.

In particular the Swedish Government agree:

(1) to maintain existing wartime restrictions on purchases of a limited number of commodities which are in short supply and which must therefore remain the subject of allocation in order to ensure equitable distribution; and where requested to do so to maintain in force existing arrangements for the centralized or coordinated buying of such commodities.

(2) To arrange for the equitable distribution of Swedish products required for reconstruction in Europe and to facilitate the procurement of needed supplies from Sweden if their procurement on a commercial basis meets with difficulty.

(e) To institute such measures as may be necessary to fulfill the aims expressed in Bretton Woods resolution No. VI.”³¹

With regard to undertakings of American and British Governments Boheman commented on paragraph (d) that Swedish need was not so much for foodstuffs as for raw materials which would make exports for rehabilitation possible. In fact he suggested that after “maintain her economy on a reasonable basis” there might well be added “and to maintain Swedish exports for the rehabilitation of Europe” or words to that effect. Foot and Stone indicated general agreement with Boheman’s suggestion.

With regard to the Swedish undertakings Boheman in commenting on point (a) said that Sweden had recently maintained a small trade with Norway and Denmark on a barter basis and desired to be able to continue this in 1945. The trade with Norway had been approved by the home front and the Government in Exile as not serving any German purpose. Trade with Denmark was mainly in wood products the distribution of which is under the supervision of Danish trade unions. Total of the trade with Denmark and Norway was approximately 50 million crowns for a 6 months’ period. Foot pointed out that the Allied Governments had generally recognized the needs of the Norwegian Government and Danish authorities. It was our desire that these transactions be considered by the JSC on their merits.

With regard to point (b) Boheman desired to know whether consultation implied consultation before export. Foot answered in affirmative. Boheman then inquired as to the basis for this request. Foot and Stone replied that Allied Governments desire an opportunity to make representations at JSC and that clause was inserted in order to prevent exports going to Japan via Finland to make certain that Finland did not get larger share of supplies than liberated areas and that we had an opportunity of controlling Swedish re-export of supplies provided by United States.

With regard to point (d)(1) Foot informed Swedish delegates that we desired continuation of coordinated buying as established by 1943 agreements and might desire to add additional commodities in future. With regard to (d) (2) Foot pointed out that our desire was equal treatment for all countries and that we desired to take care of impoverished countries. This was really a corollary to existence of combined boards. Boheman pointed out that interest of his Government was “not to be deprived of all liberty of action.”

With regard to paragraph (e) Boheman stated that he believed regulations recently put into effect by Swedish Government covering financial transactions and property belonging to non-resident aliens would probably meet our requirements. He promised to supply us with these regulations.

A list of commodities urgently needed in addition to basic rations was also presented at meeting. These will be despatched en clair in a following telegram.

Foregoing was obviously Boheman’s initial reaction and he suggested that he would be ready on December 14 to make additional comment.

Sent to Department as Embassy’s 11032, repeated Stockholm as 826. [Stone.]

Winant

30. Not printed.
31. For text, see Proceedings and Documents of United Nations Monetary and, Financial Conference, Bretton Woods, New Hampshire, July 1–22, 1944 (Washington, Government Printing Office, 1948), vol. i, p. 939. Resolution VI pertained to enemy assets and looted property.