Did Swedish ball bearings keep the Second World War going? Re-evaluating neutral Sweden's role

Abstract

This paper examines the Swedish ball bearings industry during the Second World War, including subsidiary operations in Germany and the United Kingdom. It determines that these ball bearings were very important to the war effort in both countries, comprising in total about 58% of German supplies and 31% of British. Despite favouring Germany with more exports, the Swedish government allowed the British access to Swedish territory to ensure the delivery of the bearings through the German blockade. In relation to price increases for other exports, prices for ball bearings were time-dependent on the position of the acquiring country. From an overall perspective, the United Kingdom received a discount which Germany did not share. However, with the exception of direct exports, representing respectively about 10% and 15% of total German and British supplies, it would have been difficult for the Swedish industry to successfully withhold all supplies of ball bearings to either belligerent. Ultimately, any shortage of Swedish ball bearings in either belligerent could have been overcome only by long-term industrial changes and import substitution programmes.

Keywords:

• war economy
• neutrality
• ball bearings
• trade
• Sweden

Keywords:

• N14
• N44
• N74
• N84

Acknowledgments

The author wishes to thank M. Fritz, B. Karlsson and W.P. Howlett as well as three referees for their advice and guidance. The author also benefitted greatly from the comments of participants at the Swedish Economic History Meeting 2011 (Goteborg), Association of Business Historians 2011 Annual Conference (Reading), Economic History Society 2011 Annual Conference (Robinson College, Cambridge), Economic History Association (Evanston), World Economic History Congress (Utrecht), Nuffield College, University of Oxford, the German Historical Institute (Washington, DC), and the Business History Unit seminar at the London School of Economics.

Notes

¹Milward, ‘Sweden’ (1967), 127–138.

²Fritz, ‘Swedish Ball-Bearings’ (1975), 15–35.

³For the purposes of this examination, the term ‘ball bearings’ includes ball bearings, roller bearings and, if applicable, their associated balls and rollers.

⁴Fritz/Karlsson, SKF (2006), 116–121.

⁵National Archives and Records Administration, Washington, DC, (NARA) Department of Economic Warfare, RG107/160/925: file marked ‘General Ball Bearings SKF’: report entitled ‘The Swedish Ball Bearing Business’, draft May 1944, 9.

⁶National Archives, Kew Gardens, London (NA), Foreign Office Files, FO837/897: ‘Tripartite War Agreement, 23 September 1943’, 22.

⁷Fritz, ‘Swedish Iron Ore’ (1982), 28. NA Cabinet Papers, CAB66/49/6: ‘Anglo-American Differences over Blockade Measures’, table I, April 1944, 2. British figures indicate 1943 was the highest year of annual imports, with SKF and its subsidiaries providing 22% of German production. This cannot be verified with available German statistics.

⁸Calgren, Swedish Foreign Policy (1977).

⁹NA Board of Trade Files, BT11/1140: Draft War Trade Agreement with the United Kingdom, 1939.

¹⁰Fritz, ‘Swedish Iron Ore’ (1982), 28.

¹¹Riksarchivet, Stockholm, Utrikesdepartementet (RA UDA), Specialdossier SKF, RA UDA/1920ds/HP64Ua/2897: table, 10 July 1943.

¹²See Table 1.

¹³NARA Department of Economic Warfare, RG107/160/925: file marked ‘General Ball Bearings SKF’, report entitled ‘The Swedish Ball Bearing Business’, draft, May 1944, 9.

¹⁴RA UDA/1920ds/HP64Ua/2897: Correspondence, September to November 1944. Fritz/Karlsson, SKF (1998). Fritz/Karlsson, SKF (2006).

¹⁵Fritz, ‘Swedish Iron Ore’ (1982), 29.

¹⁶NARA RG107/190/925: file marked ‘General Ball Bearings SKF’, report entitled ‘The Swedish Ball Bearing Business’, draft, May 1944, 9.

¹⁷NA War Office Files, WO219/2201: documents, March and October 1944. RA UDA/1920ds/HP64Ua/2897: memoranda, 22 January 1944 and 22 April 1944.

¹⁸NA Aviation Authority, AVIA11/7 and NA WO219/2201 and NA Foreign Office FO115/4029-4031: files on Schweinfurt Raid.

¹⁹NA Special Operations Executive, HS2/267: ‘Schweinfurt – Bombing of Ball Bearing Installations: Liaison with SKF’, correspondence from August 1942 to February 1944.

²⁰NA FO837/897: Tripartite War Trade Agreement, 23 September 1943.

²¹NA Cabinet Office, CAB6/29/6: although the figure of 29 million Kronor is the most frequently mentioned in Allied and Swedish correspondence and in the agreement, 26 million Kronor is also noted in several places.

²²RA UDA/1920ds/HP64Ua/2897: documents, 22 January 1944 and 22 April 1944.

²³RA UDA/1920ds/HP64Ua/2897: folder marked ‘1 April–April 30’, Aide Mémoire, 22 April 1944.

²⁴NARA Records of the Reconstruction Finance Corporation, RG234/26/19: report ‘Preclusive Operations in the Neutral Countries in World War II by Blanche Britt Armfield’, section entitled ‘Swedish Ball Bearings’.

²⁵NA WO219/2201: memorandum on ‘Status of the VKF Ball Bearing Factor and Export Position at Gothenburg, Sweden’.

²⁶NA Foreign Office, FO837/916: memorandum, 28 November 1944.

²⁷NARA Collection of Foreign Records Seized, RG242/T-71/108/611492-05: Reichsministerium für Rüstung und Kriegsproduktion, memo entitled ‘Der Auβenhandel Deutschlands 1943’. RA UDA/1920ds/HP64Ua/2800: memo, 10 June 1944. NARA RG107/190/925: file marked, ‘Swedish Exports of Bearings 1943 as Compared with 1942’, memo entitled ‘Ball Bearings’ from Neff, 13 March 1944.

²⁸NA FO836/916: letter from Stockholm to the Ministry of Economic Warfare, dated 21 November 1944.

²⁹NA FO837/916: see correspondence from April 1944 to November 1944.

³⁰Fritz, ‘Swedish Ball-Bearings’ (1975), Table 4, 24.

³¹RA UDA/1920ds/HP64Ua/2800: Correspondence, 9 October and 20 December 1943.

³²Wagenführ, Industrie (1963), 178.

³³Fritz/Karlsson, SKF (2006).

³⁴Price index based on statistics from the Sveriges Officiella Statistik, Handel Berättelse For År 1938–1945 av Kommerskollegium, 1938–1946; ball bearings categories 1527, 1528 and 1529 included in the ball bearings index. All prices exclude shipping costs. For more information on calculations, see Golson, ‘The Economics of Neutrality’ (2011), ch. 2.

³⁵RA UDA/1920ds/HP64Ua/2897: file marked ‘Juli 1943–Mars 31 1944’, table marked ‘SKFs Totalexport Exkl. Maskineroch Gängtappar under Aren 1938–1942’, 19 July 1943.

³⁶See Table 2.

³⁷Fritz/Karlsson, SKF (2006), 116–121.

³⁸NA Aviation Authority, AVIA22/191: Report ‘Reply to the Enquiry from the Minister of Production Regarding the Ball Bearing Industry’, points 2 and 3. British Airways Museum and Archive [BAMA] AW/1/6512, ‘Air Service – Midnight Sun Period’, memorandum, 26 February 1944.

³⁹NA Admiralty ADM199/7517, memorandum ‘Bearings from Sweden’, dated 5 March 1943.

⁴⁰NA Aviation Authority, AVIA38/333. NA Aviation Authority, AVIA38/381. NA Aviation Authority, AVIA38/409. NA Aviation Authority AVIA38/811. Harrison, ‘Economics’ (1998), 15.

⁴¹NA Cabinet Office, CAB115/195: memorandum, 27 August 1940.

⁴²NA AVIA22/191: report ‘Reply to the Enquiry from the Minister of Production Regarding the Ball Bearing Industry’, points 5 and 6.

⁴³Due to the lack of any relevant information, no part of these US-produced SKF-related bearings is counted as Swedish bearings for the purposes of this paper.

⁴⁴NA AVIA38/333. NA AVIA38/381. NA AVIA38/409. NA AVIA 38/811. NA Cabinet Office CAB115/195-197.

⁴⁵NA Cabinet Office CAB122/241: Letter from Mr Eden to Viscount Halifax, 1 December 1942.

⁴⁶Calgren, Swedish Foreign Policy (1977).

⁴⁷Calgren, Swedish Foreign Policy (1977).

⁴⁸See reports in NA Board of Trade BT60/68/2: NA HS7/191; NA HS8/769. Churchill Archives, University of Cambridge [CAC], Personal Records of George Binney: BINN/1; CAC BINN/2; CAC BINN/3.

⁴⁹Åmark, ‘Kristidspolitikoch kristidshushållning’ (1952), 996. Rockberger, ‘Göteborgstrafiken’ (1973), 272.

⁵⁰For discussion of transport problems during the war see NA Foreign Office FO954/23: memo ‘From Foreign Office to Washington’, dated 13 November 1942.

⁵¹For the final inventory of Allied bearings held in Sweden, see NARA RG107/160/925: memorandum from E.E. Gloss, Anti-Friction Bearing Branch, ‘Supply Purchase of SKF Bearings from Sweden’, 30 March 1945.

⁵²NA CAB122/241: memorandum, 1 December 1942. NA ADM199/7517: memorandum ‘Bearings from Sweden’, 5 March 1943.

⁵³/68/2: chart ‘Appendix A: List of Materials Shipping from Gothenburg to England in January, 1941’, from ‘Report by George Binney, H.M. Legation, Stockholm’; CAC BINN/1, ‘Operation Rubble’.

⁵⁴NA HS7/191: report ‘The Performance Operation’, from Sir George Binney to Sir Andrew Duncan, June 1942. CAC BINN/2, ‘Operation Performance’.

⁵⁵NA HS7/191, 55.

⁵⁶NA HS7/191; RA UDA/1920ds/HP64Ba/2800, folder marked ‘1944, Nov 21–Dec 19’, draft memorandum, 6 December 1944.

⁵⁷NA H58/769, report on ‘Operation Bridford’, 10. CAC BINN/3, ‘Operation Bridford’.

⁵⁸NA H58/769, report on ‘Operation Bridford’, 10. CAC BINN/3, ‘Operation Bridford’. Note: precise manifests do not exist – based on ships’ carrying capacity and associated notes in these reports.

⁵⁹NA BT60/68/2. NA HS7/191.

⁶⁰NA CAB115/197: telegram, 10 October 1942.

⁶¹RA UDA/1920ds/HP73Ba/3311: folders marked ‘1940-1941’ and ‘Jan-Feb 1942’.

⁶²RA UDA/1920ds/HP73Ba/3311-3317: reports ‘Översikt over flygtrafiken mellan Sverige och England under tiden …’, various dates from 1942 to 1945, and reports ‘Statistik over visa uppgifter I lastningsbeskeden for de utgående brittiska kurirflygplanen’, various dates from 1943 to 1945.

⁶³RA UDA/1920ds/HP73Ba/3311-3317: reports ‘Översikt over flygtrafiken mellan Sverige och England under tiden …’, various dates from 1942 to 1945, and reports ‘Statistik over visa uppgifter I lastningsbeskeden for de utgående brittiska kurirflygplanen’, various dates from 1943 to 1945.

⁶⁴RA UDA/1920ds/HP73Ba/3311-3317: reports ‘Översikt over flygtrafiken mellan Sverige och England under tiden …’, various dates from 1942 to 1945, and reports ‘Statistik over visa uppgifter I lastningsbeskeden for de utgående brittiska kurirflygplanen’, various dates from 1943 to 1945.

⁶⁵RA UDA/1920ds/HP73Ba/3311-3317: reports ‘Översikt over flygtrafiken mellan Sverige och England under tiden …’, various dates from 1942 to 1945, and reports ‘Statistik over visa uppgifter I lastningsbeskeden for de utgående brittiska kurirflygplanen’, various dates from 1943 to 1945., only from March 1942 to 1945.

⁶⁶NA Ministry of Supply, SUPP 14/90: report ‘Ball, Roller and Taper Roller Bearings’, 21 June 1951.

⁶⁷RA UDA/1920ds/HP73Ba/3314: folder ‘1943 Febr.–April’, table ‘Export till Storbritannien med kurirflyg under 1942’.

⁶⁸NA Cabinet Office, CAB24/246. Note: In 1936, SKF sold 55% of the company to British investors in what was probably a defensive measure against the perceived risk of the state seizure of arms and weapons manufacturing. After a Royal Commission had checked the feasibility of prohibiting the private manufacture of arms in 1935–1936; see ‘Royal Commission on the Private Manufacture of and Trading in Arms (1935–1936)’. By 1943, SKF holdings were further reduced to approximately 36% of the share capital; see NARA RG107/160/925: file ‘General Ball Bearings SKF’, report ‘The Swedish Ball Bearing Business’, draft, May 1944, 12.

⁶⁹NA BT60/68/2: ‘Appendix A’ from ‘Report by George Binney, H.M. Legation, Stockholm’. NA AVIA11/8: Correspondence from Skefko Ball Bearing Company.

⁷⁰NA AVIA22/1171: memoranda regarding the efficiency of new ball bearings installations in Britain, 1943–1944.

⁷¹NA AVIA22/191: report ‘Reply to the Enquiry from the Minister of Production Regarding the Ball Bearing Industry’.

⁷²NA SUPP14/90: report ‘Ball, Roller and Taper Roller Bearings’, 21 June 1951.

⁷³RA UDA/1920ds/HP64Ua/2897: file ‘Juli 1943–Mars 31 1944’, table ‘SKF's Totalexport Exkl. Maskiner och Gängtappar under Aren 1938–1942’, 19 July 1943.

⁷⁴RA UDA/1920ds/HP64Ua/2897-2898.

⁷⁵RA UDA/1920ds/HP64Ua/2800.

⁷⁶RA UDA/1920ds/HP64Ua/2800, 2897–2898. Fritz/Karlsson, SKF (2006).

⁷⁷NA AVIA 38/333. NA AVIA38/381. NA AVIA38/409. NA AVIA 38/811.

⁷⁸NA AVIA22/1171: memoranda regarding the efficiency of new ball bearings installations in Britain, dated between 1943 and 1944.

⁷⁹NA AVIA 22/1171: memos, July 1942 and 1943.

⁸⁰NA AVIA22/1171: memorandum, 30 July 1943.

⁸¹NA AVIA22/1171: memoranda regarding the efficiency of new ball bearings installations in Britain, dated between 1943 and 1944.