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United States Department of State / Foreign relations of the United States diplomatic papers, 1941. Europe
(1941)

Iceland,   pp. 755-792 PDF (14.3 MB)


Page 766


FOREIGN RELATIONS, 1941, VOLUME II
the draft they had informed us that the terms of an agreement con-
cluded last spring between the British Government and the Icelandic
Government would make it impossible for Iceland to sign the proposed
stabilization agreement with the United States.
  I told Mr. Wyndham White that Assistant Secretary Berle's obser-
vations to Sir Ronald Campbell 12 last week during which Mr. Berle
expressed the hope that the British Government would release Iceland
from its obligation to refund to Britain the first dollars which might
come into Iceland's possession, included, of course, the expectation of
the United States that any and all other agreements between Britain
and Iceland which might impede or bar the conclusion of economic
and financial agreements between Iceland and the United States would
be waived by the British Government.
  Mr. White said that he would dispatch a telegram to London im-
mediately, since he felt sure that, since the Anglo-Icelandic agree-
ments of last spring were negotiated and concluded without the
possibility in mind that the United States might enter into the picture,
his Government would release Iceland from the obligations which I
had mentioned.
  I told Mr. White that the matter was rather urgent and thanked
him for undertaking to dispatch a telegram at once.
611.59A31/61
        The Briti8h Embass8y to the Department of State 13
  With reference to the Department's memorandum of October 7th
regarding the cooperation between the United States and British Gov-
ernments in fulfilling their obligations to Iceland, we are authorized
to state that the British Government agree in principle to the follow-
ing proposals made by the Department in the aforementioned
memorandum.
  (a) That the fish agreement shall be included in the proposed Lease
Lend arrangements.
  (b) That in order that it may fulfill its broad obligations under
the exchange of letters between the President and the Prime Minister
of Iceland, the United States Government should purchase, until fur-
ther notice, all imports from Iceland into the United Kingdom, these
to be supplied to the British Government and charged to the British
account as defense aid.
  (c) That the United States Government should take over all of the
unexpired contracts by which Iceland is obligated to supply goods to
Britain. It is understood that goods which are not under contract
' British Minister.
'i Left at the Department on October 20 by Mr. Wyndham White. The
substance of this memorandum was sent to the Minister in Iceland in telegram
No. 98, October 21, 11 p. m.
7'66


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