The Waterbury Democrat., 1942-10-16
SWEDISH TRADE
 WITH ARGENTINA. MAY HELP AXIS
BY EVERETT A. BAUNEAN United Press Stan Cnrresnondent

 United Press Stan Correspondent
 Buenos Aires, Oct. l6-(UP)-An Argentine-Sweedish trade boom may be contributing to the Axis war effort on the Nazi home and fighting fronts, according to Allied diplomatic quarters here.
 Fantastic figures redecting the phenomenal growth of trade be- tween Argentina and Sweden have aroused suspicion in Allied quart CTS causing an investigation to de- termine whether a leak has been sprung in the Allied blockade through which Argentine products are flowing to support the Axis war effort.
 During the first eight months of this year, Argentine exports to Sweden were 2,000 per cent greater in value than for the same period last ysar. Imports from Sweden rose approximately 300 per cent
 Swedish trading circles here ex- plained that the sensational gains are merely the consequence of shrinking and disappearing mark cts elswhere throughout the world. Following the Rio de Janeiro con- ference last January, Germany re- fused to issue navicertS to ships sailing from Sweden to American nations which had broken diplo- matic relations with the Axis, 1eav- ing Argentina and Chile the only eligible countries. Spread of war to. the Orient already had cut off Sweden from the greatest neutral trade area outside the Western Hemisphere.
 Use Full Ship Quota
 Only five Swedish ships per month are allowed to sail from home ports through the British and German blockades. At present these are all coming to Argentina, whose ports are nearer than those of Chile and whose economy com- plements Sweren's to 8 certain eX- tent. Sweden needs tEe grains, wools, oils and meat products of Argentina, which in turn lacks the newsprint, iron and steel products which Sweden can furnish.
 While United Nations represen- tatives admit the logic of the Swed- ish argument, they point out that the increase of Swedish imports from Argentina is considerably greater than the proportion of ex- ports. Also, they ask why some Swedish ships lately have been ar irving here in ballast but leaving heavily laden with Argentine pro- ducts.
 Investigation has revealed that Sweden this year has received at least 55,0O0 tons of Argentine Whrat, 14,000 tons of corn, 5000 of linseed, and large quantities of casein, hides, wool, cotton and canned meat.
 We have few or no means of checking what happens to these goods after reaching private hands in Sweden" one informed source pointed out. Tt doesn't seem likely to us that the Nazis would allow so much to pass through their Bal tic blockade without exacting a heavy prive."
 Nazis Inspect Ships
 The five Swedish ships that sail each month stop at the Norwegian port of Kristiansand for examina- tion by the Germans, who are care- full about what the Swedes take out but place no restriction whatever upon what they bring back.
 "The Nazis are glad to get what ever they can from outside" said ever they can from outside" the same source explained.
 "Only non-c -contrabran materials get through the British navicert control, but the Germans can cer- tainly make use of food, which Is the principal Argentine export" he said.
 Sweden is a neutral country, al- led circles pointed out, whose friendship is highly prized by the United Nations. A certain amount of trade leekage is regarded as in- evitable due to Sweden's geogra- phical proximity to German-occu- pied territory. However, soaring Argentina export figures create the suspicion that Axis benefits through Swedish trade amounts to more than a trickle.
 Positive evidence, supplementing the suspicion, might force the Allies to revise their policy regarding Ar gentine-Swedish trade, it was ir1- dicated.