Owing to reports of arms and munitions being shipped from Germany
to Petsamo and Murmansk via Norwegian territorial waters and
desire to stop German iron ore supplies via Narvik, the War
Cabinet considering whether the situation arising out of the
Altmark episode [1] does not present opportunity for immediate
action in Norwegian territorial waters by sowing mine field thus
forcing ships out.

This possibility in my view being considered in isolation and I
have made strong representations down the following lines. The
position has to be examined in relation to wider proposal to
afford necessary support to Finland to prevent her being
overwhelmed and to obtain control of Gallivare iron ore fields
(Dominion Office telegrams). [2]

This wider proposal contemplates for its success co-operation of
Norway and more particularly Sweden.

Atmosphere created with Norway as a result of action in her
territorial waters would clearly render her co-operation unlikely.

Sweden while privately not adverse to action in corresponding
territorial waters would be in some difficulty in responding to
overtures for co-operation by Allies, following immediately upon
drastic even if warranted action infringing neutrality of her
fellow Scandinavian country.

Wider proposal contemplates in the very near future appeal by
Finland and indication of preparedness of Allies to respond if
Norway and Sweden will at least co-operate by affording facilities
for volunteers and supplies to pass through their countries.

Difficulties in the way of their refusing that co-operation would
disappear if within few days of appeal the Allies had taken an
action which had aroused intense feeling in one if not both
countries.

In my view essential to decide if major proposal to be pursued. If
yes, action in Norwegian territorial waters should be postponed
pending ascertainment of reactions to it. This may be forthcoming
immediately as Mannerheim [3] being informed today of major
proposals and may refuse to co-operate on grounds of
insufficiency.

If necessary to abandon major proposal Norwegian action could then
be taken on basis, apart from broad grounds which justify it, of
stopping German arms and supplies for Russia being sent through
Norwegian territorial waters.

Matter being reconsidered by War Cabinet this morning.

BRUCE