Keesing's Record of World Events (formerly Keesing's Contemporary Archives), Volume 29, July, 1983 Sweden, Page 32285 © 1931-2006 Keesing's Worldwide, LLC - All Rights Reserved. Cabinet appointment Swedish-Soviet controversy over allegations of submarine activity Summary and key dates Appointment of Mr Mats Hellstrom as Minister for Foreign Trade (Jan. 11, Publication of report on suspected presence of foreign submarines in Swedish waters (April Swedish protest to Soviet Union over alleged violation of territorial waters (April Mr Olof Palme, the Swedish Prime Minister, announced on Jan. 11, 1983, the expansion of his Social Democratic Government formed in October 1982 through the appointment of Mr Mats Hellstrom to the newly separated cabinet post of Minister for Foreign Trade. Mr Hellstrom (40), a Social Democrat, was first elected to the Riksdag (Parliament) in 1968; he had been a member of the Riksdag's committee on foreign affairs, and of the Swedish delegation to the United Nations, and became chairman of the Riksdag's committee on finance in October 1982. Following the unsuccessful Swedish search for a suspected foreign submarine in Swedish territorial waters near the Musko naval base south of Stockholm in October 1982, a five-member, all-party submarine defence commission was set up to investigate the incident. The commission was chaired by Mr Sven Andersson, a Social Democrat, who had been Minister of Defence from 1957 to 1973 and Foreign Minister from 1973 to 1976. The unanimous report of the commission, published on April 26, quoted “abundant technical and circumstantial evidence” (including Swedish Navy photographs of imprints left on the sea-bed by submarines near the Musko base) in support of its conclusion that the Soviet Union was responsible for the October incident and for other submarine intrusions in 1982. It reported that six alien submarines were “probably involved”, including three manned midget submarines of a previously unknown type, which could “crawl” along the sea-bed by means of caterpillar tracks. Forty incidents had been reported in 1982 (as opposed to only four in the previous year); the October incident was seen as part of an “increasingly provocative” series of territorial incursions, but the report noted that “no observations (had been) obtained indicating intrusion in Swedish territorial waters by North Atlantic Treaty Organization (NATO) submarines”. The report also advocated the allocation of between 200,000,000 and 250,000,000 kronor (about US $ 26,500,000-$ 33,000,000) to improve the country's submarine defence network. Mr Carl De Geer, the Swedish ambassador to the Soviet Union, was temporarily recalled from Moscow on April 26, while on the same day Mr Boris Pankin, the Soviet ambassador to Sweden, was also summoned to the Foreign Ministry in Stockholm and handed a strong letter of protest. The letter complained of “the gross violations of Swedish territorial integrity of which the Soviet Navy has been guilty”, and added: “The Swedish Government request the Government of the Soviet Union to give instructions to the Soviet Navy that violations of Swedish territory cease.” Mr Palme indicated that official visits between the two countries would be cut back, and he said later in an interview that the Swedish Navy's rules of engagement had been changed to permit senior commanders to open fire at once on vessels violating territorial waters. Mr Palme also promised that orders to sink the vessels would come promptly from Stockholm if they remained, warning that “if a submarine and its crew are harmed, the whole responsibility will rest with the country which is responsible for the violations”. The following day (April an indirect Soviet rejection of the Swedish accusations came in the form of a commentary by the Soviet news agency Tass, which maintained that the conclusions of the commission's report were “devoid of any foundation”, and that the report gave no proof that the submarines were Soviet. Subsequently, on April 28, the Swedish Government further announced that it would not be attending the May Day parade in Moscow that year, while members of the Riksdag greeted with enthusiasm the news that a visit to Moscow by Danish Social Democrats had been cancelled in protest at Soviet submarine violations of territorial waters. On the same day, the Swedish Navy also began a search for what military officials suspected were two midget Soviet submarines off the Swedish coast near Sundsvall, approximately 250 miles north of Stockholm, and, although two remote control permanent anti-submarine mines were exploded on May 4 and a further charge was dropped on May 5, the search had to be called off on May 10 after contact with the suspected submarines was lost. Earlier, on March 22, an ultimately unsuccessful operation had been ordered for what defence staff said was “something which could be a submarine” detected near the Musko base. Likewise in Norway, unsuccessful searches were made for suspected submarines sighted on April 27 in the Hardangerfjord and on May 2 in the Selbjoernsfjord, approximately 30 miles south of Bergen. The official Soviet response to Mr Palme's written protest of April 26 came on May 5 in the form of an oral reply from Mr Pankin, in which he said the Soviet Union had been wrongly accused and viewed with “deep displeasure” the “unfriendly behaviour” of the Swedish Government and the anti-Soviet coverage of the question in the Swedish press. At a press conference on May 6, this reply was rejected by Mr Palme as unacceptable, and relations between the Soviet Union and Sweden were widely regarded as being at their lowest ebb for many years. The issue was further complicated by Mr Palme's subsequent criticism, which was made public on May 26, of a visit to the United States earlier in the month by Mr Carl Bildt, a Moderate (Conservative) member of the Riksdag and of the submarine defence commission. Mr Bildt was accused of seeing military officers and Defence Department officials, including representatives of the intelligence community, during his stay, a move regarded as “exceptionally injudicious” for a neutral country such as Sweden.-(Guardian Times Financial Times Daily Telegraph International Herald Tribune Neue Zurcher Zeitung Le Monde Swedish International Press Bureau, Stockholm BBC Summary of World Broadcasts) © 1931- 2010 Keesing's Worldwide, LLC - All Rights Reserved.