740.00112 European War 1939/12–1844

The Assistant Secretary of State (Acheson) to the Counselor of the British Embassy (Marris)

My Dear Marris: The Department has given careful consideration to your letter of December 18th relating to the impending embargo by Sweden of exports to Germany. The Foreign Economic Administration has also been consulted and concurs in this reply.

As you are aware, the overriding objective of this Government in its economic warfare dealings with Sweden has been the complete stoppage of trade from Sweden to Germany and German occupied areas. On this objective our military authorities and the civilian agencies concerned have been in full agreement. The collateral risks and disadvantages, including those itemized in your letter, which might result from this stoppage have been given full consideration. The Department and the Foreign Economic Administration do not find any basis at this time for modifying their decision that these risks and disadvantages should be accepted in securing, as we now have, our major objective.

We would agree that it would be to our advantage to maintain the Gothenburg traffic if this could be accomplished without affecting in any way the complete embargo which the Swedes have promised to impose in the immediate future. We attach, however, great importance [Page 681] to the psychological aspects of a public Swedish announcement of the embargo of all trade with Germany. The Department and the Foreign Economic Administration accordingly would not be prepared to authorize the Swedes to discuss with the Germans in January the terms upon which the Germans would permit the Gothenburg traffic to continue.

In connection with the foregoing, I understand that the representatives of your Government on the Combined Liberated Areas Committee have submitted a similar statement of this proposal with the request that the Combined Liberated Areas Committee formulate its views for the consideration of the economic warfare policy authorities of both Governments. The matter is being discussed on the American side, and my understanding is that they will transmit to your representatives on the Combined Liberated Areas Committee an expression of views identical with those contained in this letter.

Sincerely yours,

Dean Acheson