460.509/10–1850: Telegram

The Ambassador in Sweden (Butterworth)1 to the Secretary of State

secret

501. Excon. Re Embtel 433, October 4, repeated Paris 103, London 117.2

1.
Astrom3 of Foreign Office yesterday gave Embassy oral but definite assurances that, except for slight possibility of leaks through negligence or fraud, “no 1A or 1B items shipped to Sweden from US would be reexported East Europe”. He indicated that there might be a very few Swedish exports EE which might prove to be approximately same or even identical with certain 1A and 1B items imported Sweden from US (presumably machinery or highly fabricated products) and that Swedish official assurances did not apply to this type nondeliberate substitution. It seems clear to Embassy that this proviso is not intended cover intentional or systematic substitution. Sweden’s [Page 211] imports from US are largely items which are not produced locally. In addition such imports require hard currency and therefore exchange considerations alone constitute a major bar transactions resulting in any major export of similar items to EE. We suggest therefore that the above assurance be accepted at face value at this time.
2.
Assurances also not applicable 1A and 1B items originating in PCs. Astrom pointed out however that State Trade Commission does not authorize reshipment eastward of “sensitive” items purchased by Swedish dealers and imported from western European countries and he was confident that such transshipments to EE would occur only in insignificant amounts. He stated however that of course a properly documented shipment from western Europe of 1A or 1B items in transit through Sweden to EE will continue to go forward. He stated that such shipments must be controlled at place of origin.
3.
In view these statements we feel that CoCom approach to Swedes (Embtel 497 October 174) should be successful on transit problem as it appears Swedes can probably give adequate assurances on reshipment list I or II items from all PC’s.
4.
Simple transit shipments controlled by destination (see section A Embdes 379 October 9,5 copy sent Paris). Astrom stated that other shipments carefully screened for “politically sensitive items”, with implication that 1A and 1B lists used for “guidance” in screening.
5.
Full meaning Article 316 still under consideration Commerce Minister, but Astrom stated that definition available soon.

Sent Department 501, repeated Paris 113, London 125.

Butterworth
  1. W. Walton Butterworth assumed office as Ambassador in Sweden on July 5, 1950, succeeding H. Freeman Matthews.
  2. Telegram 1387, September 15, from Paris, not printed, observed that Sweden had failed to make any definite reply to Consultative Group Chairman Alphand’s démarche regarding Sweden’s possible adoption of security export controls (see footnote 4, p. 137) and suggested, inter alia, that the export of 1–A and 1–B items to Sweden be halted or curtailed pending Swedish adoption of such controls (460.589/9–1550). Telegram 395. September 22, from Stockholm, not printed, urged that the curtailment of 1–A and 1–B items to Sweden be postponed until the Embassy had attempted to obtain Swedish concurrence on some agreed control procedure (458.119/9–2250). Telegram 433 under reference here, not printed, reported that the Embassy had requested of the Swedish Foreign Ministry a formal assurance that no 1–A and 1–B items shipped from the United States to Sweden would be reexported to Eastern Europe (460.589/10–450).
  3. Sverker Åström, principal aide to Swedish Foreign Ministry Secretary General Dag Hammarskjold.
  4. Telegram 1880, October 10, from Paris, not printed, reported that the Swedish and Swiss Ministers in Paris had indicated to the French Foreign Ministry the willingness of their countries to cooperate informally with the Coordinating Committee on export controls. At its meeting on October 9, the Coordinating Committee agreed to work out a detailed approach to the two governments (460.509/10–1050). In the telegram under reference here, not printed, the Embassy in Stockholm welcomed the opportunity to approach Sweden and offered suggestions on the modalities of such an approach (858.00 (R)/10–1750).
  5. Not printed.
  6. The reference here is to article (or item) 31 of the Swedish Government decree (or proclamation) of November 25, 1949, which provided the authority for the control of exports from Sweden.