Evening star. [volume] (Washington, D.C.) 1854-1972, 1939-12-25
Britain and Reich
Battle for Bulk
Of Sweden 5 Trade
England Seeks to Force
Exports to Nuzis Down
To Lowest Levels
BY LELAND STOWE,

" eVWSSN SSNSuS
BY LELAND STOWE.
Chicago Daily News Foreign Correspondent.
STOCKHOLM by Clipper -
What the Swedes would like to do
is to remain neutral during this war
and retain as much trade as possible
with both sides. If we lived in
Sweden that's what we would want
to do, but we'd find it a terrific job
to manage.
In September Sweden lost Is per
cent of her foreign trade, but she
fears there's much worse to come
The SWedes have trade rope
drawn around their midriff and the
Germans pull fiercely at one end
Of it while the British tug just as
determinedly at the other, and
sometimes Anders Anderson gets
distressingly short OF breath.
The trouble is that this second
war to save the world from COM
mon sense began where the last
lamentable effort ended. so far as
the technique and application OF
naval blockades and economic war
fare are concerned. That means
that Sweden, as a Nordic neutral,
has found herself up against the
tough realities of 1917 rather than
the mere perplexities and annoy
ances tina. she experienced through
out 1914 and a bit later, until the
U-boat campaign got going in
earnest.
Rival pressure for the lions share
of Sweden's trade in wartime has
been bitterly keen from Germany
and Great Britain alike, from the
moment that hostilities began.
None Will BE Satisfied.
It's much too early to prophesy
how this highly important British
Nazi trade tug of war will wind up
for the Swedes. but its vital signifi-
canoe for Germany is as plain as
was a side view of Field Marshal
Goering before he reduced his con-
sumption Of butter and sugar.
For Great Britain, commerce with
Sweden represents an essential ele-
ment in final victory over Hitlerism.
For the Swedish people, large
scale trade with both of these
enemy nations is imperative, if they
are to avoid severe losses and per-
haps a serious depression in the
midst of steadily rising prices for
all commodities.
The upshot of this situation is
that neither the Germans, the Brit
ish nor the Swedes are likely to
be satisfied and that commercial
relation between the three coun-
tries willsremain subject to constant
stress and to military and diplo-
matte incidents or accidents.
Sweden's economic dilemma is
clarified by few simple facts.
Sweden buys more goods from Ger
many than from any other country
and the Third Reich habitually
makes the second largest amount Of
purchases from her.
Sweden sells more to Great Britain
than to any other country, under
normal conditions, and she makes
her third largest amount OF pur-
chases from the British.
Fight to Control Exports.
The British game is to force Swe-
den's exports to Germany down to
the lowest possible figure, while the
Nazis' game is to do precisely the
same thing in respect to Britain.
The Swedes may make money from
both sides. but only at heavy risks.
The Swedes need to keep selling
their products to Britain, and they'd
lose % per cent of their export
business ii the United Kingdom cut
them of completely. But if Sweden
stopped selling iron ore to Germany
she would lose 125, 900 900 crowns or
more in the first year of the war
actually Germany bought 1853 ,OO0,-
900 crowns worth of Swedish ore
In 1899. The Nazis might we'll
threaten to use force unless impor-
tant deliveries of this war-essential
product were continued.
AS result Anglo-Swedish nego-
tiations for wartime trade agree
ment have dragged on for weeks in
London, and the opening of similar
chickering's with Berlin is scheduled
for the first week of November. The
Germans agreed to let the British
go first, apparently believing they
could exert tighter squeeze" upon
Sweden after London had shown its
hand.
Meanwhile, the Swedes seemed
loath to move very fast in their Lon
don talks, perhaps preferring to de-
lay and see how successfully the
British could keep their trade lanes
open across the North Sea despite
the Mas U-boat warfare.
In several respects Germany en-
joys advantages over Britain in their
struggle for Swedish trade. The
Germans have much easier access
to Swedish ports. 1t is estimated
that the Reich's exports have been
reduced about so per cent by the
allied blockade, which has erased
German trade with North and South
America and other foreign lands. So
the NaZis must concentrate their
efforts upon commerce with neutral
countries near at hand
Take this enlightening example:
Before the war German tradesmen
made big sales of wooden goods in
Sweden. They sold so much that
Berlin ordered them to stop sales
and to cancel the fat orders they
had obtained. Then the Germans
about-faced and informed their
Swedish customers they were willing
to sell again, but the product would
have to contain so per cent Of artifi-
cial wool and the prices would be
20 per cent higher.
The Nazis got away with it because
the SWedes needed wooden goods,