Monday, May. 08, 1944

Tougher & Tougher

U.S. diplomacy turned the heat on Sweden and Spain last week. The flame burned hottest on Sweden's giant SKF (Svenska Kullagerfabriken), which supplies huge quantities of ball bearings to Germany's war machine. The U.S. had turned up the torch because the Swedish Government still declined to abolish these and other shipments (notably iron ore) to Germany, still insisted that a recent reduction was all the Allies should expect.

The Choke. SKF has plants in Paris, in Schweinfurt, Germany, and in the U.S.* The German division was larger and did more business than any others except those in Sweden. The U.S. Air Forces and the R. A. F. have battered the Paris and Schweinfurt plants heavily, may have put them out of production. Result: Germany now relies on SKF in Sweden for more than half of the bearings needed to roll the Wehrmacht's heavy arms, keep the Luftwaffe aloft. The U.S. wants that supply choked off.

Chairman of SKF's board of directors is talented, energetic Sven Wingquist. One of its influential directors is big, powerful Jacob Wallenberg, banker, match-truster a man of many financial interests, including some in Germany.

The U.S. won a round in the devious battle of metals when Turkey suddenly agreed to cut off chrome shipments to Germany. This decision may help in the war on SKF: Sweden also gets its chrome in Turkey, shipped overland via Germany, and without it most bearings cannot be made.

Sweden has some aces in the hole. U.S. and British oil goes to Sweden, is used (like German coal) in making war materials for Germany. If the oil shipments were cut off, Sweden would have to turn to Germany for more fuel, pay in increased shipments to Germany. Finally, Sweden knows very well that the British, ever mindful that they must get along in Europe after the war, are unready to go all out against the Swedes.

* SKF's U.S. branch has four factories, all greatly expanded by U.S. war production.

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