Neutrality and Economy: The Redefining of Swedish Neutrality, 1946–52

Abstract The article deals with the defining of Swedish neutrality in the initial years of the Cold War. The established truth that the Swedish interpretation of neutrality was adapted to US wishes is not challenged but the reasons for this development are discussed. The main reason for adaptation is identified as the Swedish government's ambitious economic policy which led to economic dependency upon the USA, acceptance of Marshall Aid and economic incorporation into the West. Sweden managed to show the US government that formal neutrality could be combined with practical measures that in fact meant adaptation to US wishes. The argument is also that the USA used economic pressure to achieve its purposes, as when Sweden submitted to US demands regarding strategic exports to Eastern Europe. Concern for the development of Swedish trade and economic growth was important when the Swedish government yielded to the US demands. By formulating the agreement with the USA as an expression of Sweden's autonomously decided policy, Sweden could still claim that formal neutrality had been maintained.