Sweden was one out of nine nations that managed
to keep up an official status of neutrality throughout the Second World War . Sweden came
into the war as a paper tiger, militarily weak, isolated and economically dependent on
nations like Britain and Germany. To survive, Sweden had to maintain trade with both the Axis
and Allies, lest she be cast as a co-belligerent and risk the threat of invasion. Though officially
she remained neutral, Sweden certainly performed numerous “unneutral actions” during the war.
In this video, we will explore what these actions were and examine how Sweden walked
the razor’s edge between peace and conflict during the deadliest war in human history.
And this isn’t just history you can learn, it’s history you can use with the sponsor of
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tenth, is available for preorder beforehand, and you can get all the details
via our link in the description. Since 1495, Sweden had fought 11 wars with Russia
and in 1809 lost their final war with them, and Finland in the process. Consequently, Sweden’s
King, Gustav IV, was deposed during the coup of 1809, and Sweden lost her role as a major regional
power. This began the “neutral policy of 1812,” in which Sweden chose to renounce her traditional
involvement in the eastern Baltic and began a phase of neutrality that arguably lasted for
200 years . During WW1, the conservatives in the country and the Swedish royal family wanted
to join the fight on Germany’s side, but Prime Minister Hjalmar Hammarskjöld held firm on his
country’s policy of neutrality. Sweden remained neutral during the Great War and traded with both
the Entente and Central powers, albeit exporting far more to Germany than she did to Britain or
France . Sweden paid a high price when the Entente blockaded her, leading the country to the brink
of serious unrest due to hunger marches swept through the country, protesting the government .
Sweden’s military budget was reduced significantly by 1925 in order to improve the domestic welfare
state. Moreover, to neutralize the threat of the emergent Soviet Union on their eastern doorstep,
Sweden’s strategic interest was to support the new nations of Estonia, Latvia and Lithuania, which
had emerged after the collapse of the Russian Empire, and now stood between her and new USSR
. When the Nazis took power in the early 1930s, Sweden remained broadly within the German sphere
of influence, and the new Third Reich would expect no less. In 1935 the Anglo-German Naval agreement
saw Britain effectively desert the Baltic. This, combined with the League of Nations inability
to stop the Italian conquest of Abyssinia, provoked Sweden to begin a 10-year rearmament
program in 1936 . By 1940 Sweden had improved her land forces, but her navy and, more
critically, her airforce was small and made up of mostly obsolete aircraft.
On September 3rd of, 1939, Sweden declared official neutrality in the
Second World War and responded diplomatically, economically and militarily to reflect this
decision. Shipping lanes and harbours were closed to foreign warships, unnecessary
journeys were prohibited to save petrol, and 70,000 reservists were called up. Despite
having strong iron and forestry industries, Sweden had few carbon resources and was dependent
on other nations for coal, coke and oil, which were necessary for maintaining a defensive
military . Before WW2, Sweden imported coal and coke mostly from Britain, Sweden’s primary
trading partner, and oil from the US. Germany also provided these goods and relied on Sweden
for 40 percent of her iron ore. While Germany was able to produce its own iron ore, it was low
grade quality and required mixing with high-grade quality, which nations like Sweden provided .
In 1939 Sweden’s main priority concluded a trade agreement with Britain as a precursor to negotiate
trade with Germany who expected to maintain its iron ore shipments. Both Britain and Germany began
blockades and began targeting scandinavian pulp boats, sinking several swedish merchant vessels
. Sweden was able to bypass the allied blockade by transporting high above the arctic circle to
the port of Narvik where the Germans were able to sneak into by sailing around a chain of 50,000
Skjærgård off Norway's western coast . Britain sought an agreement to reduce Swedish exports to
Germany, particularly that of iron ore, but Sweden risked Nazi invasion if the iron flowing into
Nazi factories became insufficient. Nevertheless, Sweden and Britain managed to negotiation the
Anglo-Swedish War Trade agreement on December 7th, 1939, limiting iron ore export to pre-war levels .
However, the long-term consequences of this would see Sweden become dependent on Germany for coal,
steel, chemicals, coke, machinery and instruments. Sweden then negotiated with Germany based on
Britains proposal , which Germany rejected, responding by beginning to mine Sweden's southern
coast. Sweden capitulated to this threat and increased its iron exports to Germany in January
of 1940. Thus Sweden had achieved maintaining its trade with both warring parties for now.
Nazi Germany was not Sweden’s only threat, there was also the Soviet Union. The threat
Russia posed to Sweden increased tenfold with the Molotov-Ribbentrop Pact of 1939, which allowed
the USSR to recoup territorial losses from 1917, leading to the Winter War against Finland .
Finnish Prime Minister Väinö Tanner looked to Sweden for support, but Sweden declined fearing
it would be dragged into war. The Finns managed to hold on for two months and on December 1st,
Finland requested Sweden send troops to Åland to allow the Finns to withdraw their forces there to
fight the Soviets. Sweden refused to do so because it would breach neutrality, but on December
2nd they altered their status from neutral to ‘non-belligerent’ in order to offer material and
humanitarian support to Finland . Additionally, at least 15,000 Swedes volunteered to fight with
the Finns, 10,000 were accepted into training and 8260 fought in the Winter War particularly
during the battles of Salla and Honkaniemi. During the Winter War, Sweden faced three critical
issues. First, her public and military sought to support Finland against the Soviets, threatening
the government’s neutrality policy; secondly if the USSR seized Finland, she would border Sweden,
which posed a severe threat to national security. The third threat was not posed by Russia, but her
western allies, who were forming a deceptive plan to invade Sweden’s iron mines. In late November
the allies devised two plans, Operation Wilfred and Plan R 4. Operation Wilfred sought to mine
the Norwegian channel, which was partially carried out by April 8th of 1940. Plan R 4 was a ruse in
which the allies would request permission to send an expeditionary force of 18,000 men to go across
Sápmi under the guise they were going to help the Finns. In reality, the force planned to seize key
iron mines, harbors and would present Norway and Sweden as fait accompli . Luckily for Norway and
Sweden, the request was immediately seen as fishy, and both countries refused the request. Ironically
Germany unleashed its invasion of Denmark and Norway just one day later, on April 9th.
As German forces landed on Scandinavian shores, Germany demanded Sweden maintain neutrality,
restrict naval activity to coastal territorial waters, maintain telecommunications between Norway
and Germany, continue iron ore exports and allow German troops transit through Sweden by rail to
Norway, for Germany feared the allied navy would strike their troop transports . Sweden conceded
to allowing civilian and humanitarian supplies be transited on April 19th but refused military
transit for two months. The British blockade efforts tightened threatening Sweden’s vital
import for oil, prompting Sweden on May 7th, 1940 to request Britain lessen the blockade to
maintain their Anglo-Swedish War Trade agreement. Britain refused, leading Sweden to become totally
dependent on the Axis for oil, which supplied only a fraction of her requirements . Looking for
alternatives, on September 7th, Sweden signed an agreement with the USSR to export goods in
return for oil, but the commencement operation Barbarossa and Germany’s invasion of Russia would
eventually kill this trade deal in the crip. Sweden watched as fellow neutral countries,
Belgium and the Netherlands were invaded on May 11th. On May 15th, Sweden conceded to unarmed
sailors transiting her waters, but still refused to allow foreign infantry or war materials
through its territory. Luckily for Sweden, the allies pulled out of Norway on June
7th and Norway surrendered on the 11th, ending the issue. However Germany pressed for it
still and on June 18th under immense threat Sweden caved into the demands allowing unarmed infantry
to travel while “on leave ”, infamously known as the “leave traffic”. Sweden was now surrounded,
to her west Germany, to her east the USSR. Sweden faced the likelihood of another Soviet war against
Finland; further concession demands from Germany; a new naval blockade at Skagerrak , making
her dependent on the axis. To top it all off, the political situation at home was growing more
tense by the day. Sweden vitally needed specific supplies to survive , thus the three nations
came to a mutual agreement, the “lejdtrafiken” or “safe conduct traffic” . Henceforth both the
Allies and Axis would periodically threaten to limit or break the agreement to pressure Sweden
with further demands until the end of the war. In 1941 Sweden began to notice a build-up
of German forces in Norway. On March 22nd, Germany demanded 76,000 troops be transited
through Sweden, prompting the “March crisis”. Sweden mobilized 80,000 reservists, fearing an
invasion, but the next day Germany stated they made an error and only needed 16,000 troops
transited, so Sweden acquiesced. Meanwhile, the Soviets had been making aggressive resource
demands on Finland prompting Finland to seek help from Germany. Germany began secretly
arming Finland, and on August 18th, Finland agreed to allow Germany to set up supporting bases
along the arctic truck road. In January of 1941, the USSR demanded Finland relinquish control
of Petsamo and her adjacent nickel mines, but this time Finland firmly said no, having been
informed of the upcoming Operation Barbarossa . Germany withdrew from the lejdtrafiken and reduced
exports to Sweden in March, and on June 7th, Swedish intelligence learnt of Operation
Barbarossa. At 7 am on June 22nd , Germany demanded the transit of its 163rd infantry
division over Swedish rail to Finland beginning the “Midsummer crisis.” The demand triggered a
furious debate amongst Sweden’s politicians. Prime Minister Per Albin notified King Gustav V, who
stated he supported agreeing to the concession, but that he would not take responsibility for
Sweden going to war . Albin chose to interpret his remarks as a threat to abdicate. On
the 23rd, Albin presented the issue to the Riksdag alongside King Gustav’s “threat” .
The Riksdag was heavily divided on the issue, but by June 24th, pro-Finnish, anti-Soviet
sentiments and Germanophilia won a majority. On June 25th, Germany received a “one-off” yes .
During the Continuation War, Finland regained her lost territories, but refused to support Germany’s
attack on Leningrad, knowing this would end chances of negotiating with the USSR. The Soviets
looked to Sweden to broker a peace deal and Sweden wanted to avoid conflicts with all parties . An
agreement came on September 19th of 1944 with Sweden managing to thwart war again. After the
Soviet victory at Stalingrad, Sweden officially recognized the Norwegian government in exile,
established diplomatic contact and got Germany to allow her to provide charity goods to Norway
. When the German army began its retreat from north Norway in 1944, Sweden began to secretly
import war materials from Britain to Stockholm and then to north Norway via American aircraft.
In 1943 Denmark saw an increase in sabotage operations and strikes leading to Germans
crack downs. The Danish forces were disarmed as Germany took direct rule . By December 11,000
Danish forces fled to Sweden joining organized resistance groups including 7000 Danish Jews
escaping Gestapo roundups. Sweden began to train and arm paramilitary units of Danish and
Norwegian refugees as “police troops” under the guise it was to help prevent loss of life
and maintain order after German occupation. It was a significant departure from neutrality
and by 1945 there was a 3000 strong Danish Brigade and 12,000 Norwegian police troops.
The Germans objected to the police troops, but Sweden argued they were being trained only for
police purposes. By late 1944 the police troops were equipped with grenade launchers and anti-tank
weapons, unusual police equipment. Sweden also began to permit the transit of resistance
groups in Denmark and aiding in the smuggling of British source weapons by early 1944 .
On June 13th of 1944, the test rocket V-89 departed Peenemünde and crashed in Bäckebo, Sweden
after it strayed from its course . The V-2 rocket contained a FuG 230 Straßburg radio control
receiver unit. Sweden exchanged the wreckage for Supermarine spitfires from Britain. By the
end of the war, Swedish intelligence had begun aiding the allies with reports about the V2 rocket
program and Hitler’s declining health. Sweden’s Centralen deciphered an estimated 300,000 German
messages and shared this with MI6 and the OSS. Despite anti-communism, nazi sympathizers and
several hundred Swedes volunteering for the Waffen-SS , Sweden also saved countless Jews
from the Holocaust. The Swedish diplomat Göran von Otter found out about the Belzec extermination
camp by an SS officer in August 1942. When Germany began rounding up Jews in Norway, Sweden smuggled
a possible 1100 Jews out of their own country using the Carl Fredriksens transport . Between
October and November of 1943, Sweden evacuated 8000 Danish Jews to Sweden. When Hungary was
caught holding secret negotiations with the Allies, Germany unleashed an extermination
campaign against her Jewish population. Unofficial diplomat Raoul Wallenberg helped the
War Refugee Board to issue several hundred visas and tens of thousands of protective passes in
Budapest until the USSR captured the city in December 1944. Wallenberg most likely perished
in Soviet captivity in 1947, but it is believed his actions may have saved as many as 9,000 Jews
Sweden's negotiating position with Germany changed dramatically after Germany’s losses at El Alamein
and Stalingrad. In June 1943, another War Trade Agreement, including the Americans, was made.
The allies wanted Sweden to reduce its exports to the Axis, stop financial credits to Germany
and reduce the “leave traffic” in return for increased Allied exports. Sweden agreed to cancel
the leave traffic and limit German transit of materials to 120,000 tonnes per annum by October
1st. Meanwhile, 300,000 reservists were called up in case of German attacks as Sweden relayed the
demands to Germany. The timing was fortunate as Mussolini had fallen and a large Soviet offensive
hit the eastern front, Hitler had his hands full and accepted the terms without much trouble, with
the lejdtrafiken remaining uninterrupted. In 1944 Sweden managed to reduce exports to Germany for
key materials like ball bearings and iron ore to 7.1 million tonnes, exceeding the Allied demands
of 7.5 million tonnes. In the spring, the Allies sought further reduction as the Pentagon believed
these components were strategically critical to the Luftwaffe. On June 12th, Sweden agreed to
reduce ball bearing export by 60% to Germany for four months but promised Germany she would make
up the difference by the end of the year. Thus Sweden was able to meet the demands of both sides.
In July 1944, with the Allies invading France, Estonia and Latvia. Sweden demanded no coal, coke
or cement be allowed to transit through Sweden to Norway, which Germany accepted without protest.
Following this, the Allies demanded all Swedish shipping to Germany be suspended, so Sweden
reduced shipping by half. On August 24th of, 1944, the Allies demanded all commercial trade be cut
with Germany, so on September 27th Sweden closed her territorial waters to German shipping. On
October 12th of 1944, Sweden requested an end to all ball-bearing exports to Germany and on October
20th, the Allies requested this be extended to all metal and ore exports, but Sweden was still
trying to maintain the lejdtrafiken. Instead, Sweden gave a secret guarantee to stop all exports
to Germany on November 24th and informed Germany of this on January 1st of 1945. Despite officially
withdrawing from the lejdtrafiken on January 31st, Germany was in near collapse, and it continued
simply because of routine. The allies made a final demand to stop the export of materials to Norway
and Denmark, but by that time, the war was ending. After the war, Sir Winston Churchill accused
Sweden of playing both sides for profit . Indeed Sweden has ever since been heavily scrutinized for
her conduct during the second world war. Sweden was isolated economically, surrounded by hostile
states and breached her neutrality in favour of both the Allies and the Axis multiple times.
Sweden prudently looked after its own interests and managed not to be invaded like her neighbours
. Above all else, one thing can certainly be said, Sweden’s government managed not to expose
its citizens to the horrors of war. More videos on the geopolitics of WW2 are on
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