Sweden Finance and Armed Forces

History. – The Socialist and Democratic Hansson ministry had to resign on June 14, 1936, having both the First and Second Chambers rejected the government’s proposal to increase retirement pensions in places where the cost of living was higher. On the 19th of the same month he was succeeded by a ministry headed by A. Pehrsson, head of the agrarian party; but following the general elections to the Second Chamber (20 September 1936), which gave – for the first time – the majority to the left parties (Social Democrats with 112 seats; Kilborn Socialist Party, 6; Communists, 5), also the ministry Pehrsson had to resign. And the Social Democratic leader PA Hansson returned to power (September 28).

In foreign policy, Sweden has accentuated its ties of close collaboration with the Nordic states (see oslo, states of, App.); and, in accordance with the requirements of the common program – independence and neutrality – it also set out to reorganize and strengthen national defense (the proposals in this regard by a special commission were approved by the two chambers on 12 June 1936). In July 1938, the Swedish government also joined with the governments of the other Oslo states at the Copenhagen conference in affirming that the system of sanctions should no longer be considered mandatory.

Finance. – The financial policy of Sweden has remained faithful to the directives adopted since 1931: stability, that is, of the cost of living inside, an extensive program of public works and maintenance at a constant level of the exchange rate with the pound. The general situation improved as a result of the favorable global economic situation. Balance sheets (in millions of crowns):

As of February 28, 1938 the public debt (all internal) was 2411 million crowns (of which 2372 million in consolidated).

On 22 July 1933 the krona was pegged to sterling at the rate of 19.40 kroner per £ 1: de facto stabilization, which recognized an overall devaluation of about 45 per cent, and which did not undergo any further changes. By a law of June 1936, the issue limit, over double the reserve, was set at 350 million crowns, which can be raised to 700 in exceptional cases. The reserve must not be less than 150 million. As of December 31, 1937, notes in circulation amounted to 980 million and the reserve was 539 million in gold and 984 million in foreign exchange.

Army. – The Swedish army is now made up of 4 mixed divisions of different composition, and garrison troops in Upper Norrland and Gotland Island. For Sweden military, please check militarynous.com.

The first division includes: 5 infantry regiments, 1 cavalry, 2 artillery, 1 engineering battalion, services; the second: 4 regiments of infantry, 1 of artillery, services; the third, four regiments of infantry, the cavalry, 2 artillery, services; quantity: 6 regiments of infantry, the cavalry, artillery 1, 1st Battalion genius services. The troops of Upper Norrland: 2 infantry regiments, 1 cavalry, 1 brigade and 1 artillery regiment, 1 engineering battalion, 1 connection company, services. The troops of the Gotland Island: 1 infantry regiment, the artillery brigade.

In 1937 a light brigade was formed, as an experiment, made up of 2 cavalry regiments, 1 cavalry battalion (2 motorized squadrons, 1 tank squadron), 1 artillery group, the engineering company, services.

Navy. – New units: Battleships: 1 (Tre Kronor) planned, 8000 t. and 29 knots, armed with 6/203, 8/120, 2 x 533 launch tubes.

Destroyers: 4 planned, 2 (Karlskrona, Malmö) under construction of 1040 t. armed with 3 / 120.6 tl of 533 and capable of carrying 20 torpedoes, 2 (Göteborg, Stockholm) built in 1936, of 1040 t. and 39 knots, armed with 3/120 and 2 triple 533 launch tubes, two capable of carrying 20 torpedoes.

Submarines: 3 planned, 3 Sjölejonet type, under construction, of 620 t. and 15/10 knots, armed with 4 tubes of 533 and 1/75 anti-aircraft.

Minesweepers: 2 under construction, 367 t. and 17 knots armed with 2/75.

Motorboats: 12 planned.

The balanced strength is 5500 men.

Merchant Navy. – It is constituted (1937) by 1249 ships per ton. gross 1,501,969. In this complex the steamers predominate: 861 per ton. gross 896,456; but also motor ships (377 for 597,976) have a large share (39.8%: the world share is 20.7%). The Swedish yards have worked to full yield, producing, in 1937,161,008 tons, the highest figure that can be remembered; 56.5% of this complex is intended for foreign shipowners, especially Norwegians.

Military aviation. – The rearmament program continues which envisages a total of seven aviation groups with a complex of 300 aircraft, of which 250 are scheduled.

Civil aviation. – In addition to the lines mentioned, the Swedish network includes the following:

a) operated by Aktiebolaget Aerotransport: Stockholm-Copenhagen-Berlin, in collaboration with the Danish company DDL and the German Lufthansa; Stockholm-Mariehamn; Stockholm-Malmö-Copenhagen-Amsterdam, in collaboration with the Dutch company KLM; Stockholm-Malmö-Copenhagen-Gothenburg, in collaboration with the companies DLH, KLM and DDL; Copenhagen-Gothenburg-Oslo.

b) operated by British Airways: London-Amsterdam-Hamburg-Copenhagen-Malmö-Stockholm.

This network has about twenty air bases among which the main ones are: Stockholm, Malmö, Norrköping, Gothenburg, Jönköping, Bromma.

Industrial yards: a) Government aeronautical factories; b) Svenska Järnvägsverstädernas Aeroplanavdelnig; c) Gotaverken; d) Svenska Aeroplan AB; e) Sparmann’s Flygplanverkstad. With the exception of Sparmann, which has built its own type of training aircraft, all other yards generally build aircraft of foreign design under license. The engine industry is represented only by Nohab Flygmotorfabriker which builds the engines of the English firm Bristol under license.

Sweden has over twenty aviation associations.