File No. 763.72112/9910

The Minister in Switzerland ( Stovall) to the Secretary of State

[Telegram]

4459. War Trade Board [from Stetson and Dresel]:

No. 132. Subject blacklist for Switzerland. We have presented scheme outlined our cable August 14, Paris, War Trade Board No. 342,1 to Inter-Allied Commission, Berne, which makes following suggestions with which we concur:

The list shall be composed as follows:

1.
Inter-Allied published list comprising: (a) S[ociété] S[uisse de] S[urveillance Economique] individuals and firms to the inclusion of which the S.S.S. allied [agrees?]; (b) non-S.S.S. individuals and firms against which evidence is convincing and as to which publication is not inadvisable for reasons of policy. For purposes of application in Switzerland by the S.S.S. syndicates, the names of such individuals and firms as appear on this list shall be first submitted to the directors of the S.S.S. for its approval before publication, it being [Page 1040] understood that S.S.S. is to enforce in Switzerland among the members of the syndicate the results of the inclusion of names to which they have agreed.
2.
Inter-Allied confidential list: (a) S.S.S. individuals who are not accepted by S.S.S. but who for imperative reasons in the opinion of the Paris committee or Berne commission should be included, (b) Non-S.S.S. individuals and firms who for lack of convincing evidence or reasons of policy are ineligible for the inter-Allied published list. (c) The confidential list shall be communicated to the directors of the S.S.S. for such action as it may think advisable in order to prevent the distribution to undesirable individuals or firms of goods imported en bloc such as case referred to in Legation’s 3685, War Trade Board 73, of July 18,1 by syndicate for subsequent delivery to its members. It is believed that S.S.S. will accept a large proportion of the names appearing on said list for [circulation?] among its members in Switzerland.
3.
Each Government reserves to itself the right to retain on its confidential list, which shall not necessarily be communicated to S.S.S., the name of any individual or firm not included on the inter-Allied confidential list. The names so retained shall be recognized and applied by the Government retaining same only in respect to its nationals and not as to the nationals of any other Associated Governments. We attach importance to this clause as its acceptance by the French and Italians would tend to lessen difficulties now encountered, especially with the French regarding transit shipments for Switzerland consigned to parties on French black list and not on those of the other Associated Governments. These names have often been added without sufficient evidence by the French inter-ministerial commission.
4.
Procedure: (a) Names now on existing lists shall be examined by Paris committee and submitted to Inter-Allied Commission, Berne, for (1) its recommendations as to the names therein included and as to the time of publication and (2) necessary reference to the directors of the S.S.S. (b) New names not now appearing on any lists. The procedure will be the same as that for Spain except for additional factor prior consultations S.S.S.

We make the following suggestions: (a) that S.S.S. members shall not be added to the list for first offense, the punishment in the first instance to be the S.S.S. fine; (b) that published list shall be shorter in order (1) to be effective, (2) to give the appearance of serious concentration on names published, and (3) not to create too unfavorable impression on Swiss public on first publication.

The above plan and suggestions have the advantage of the cooperation of the S.S.S. in giving effect in Switzerland (1) to the publication of their names on inter-Allied published list, and (2) possibly also to the enforcement of names on inter-Allied confidential list. This should prevent members of the S.S.S. transferring goods received through S.S.S. to individuals and firms appearing on inter-Allied [Page 1041] lists except with greater difficulty and at higher prices. We discussed matter with directors of the S.S.S. who have informally advised us that general plan and suggestions as outlined will be acceptable to them both as to composition of the black list and its enforcement in Switzerland among the S.S.S. members, provided the Federal Council adjusts [accepts] principle of the list. The question has been already discussed by S.S.S. with Federal Council and we are informally advised by S.S.S. that definite answer probably will be given by August 27. The S.S.S. believes this answer will be in the following general sense: that the Federal Council will protest against the principle of the list but will tacitly accept same and designate the S.S.S. or some delegate to treat with the Associated Governments as to the enforcement of the list by the S.S.S. in Switzerland.

We believe that the views outlined above will form a practical basis for settling this difficult question, and [one?] which discussed for many months without results, and strove [strongly?] recommend adoption of scheme.

We anticipate, however, considerable difficulty from the French authorities in Paris, especially the inter-ministerial commission which handles the French confidential list, though all members of the Inter-Allied Commission here, including the French delegate, French Ambassador, endorse the plan and suggestions. If above meets with your approval we suggest you support plan strongly through French Ambassador, Washington, and also advise Paris, to whom we are repeating this cable, to urge French to adopt the plan and suggestions outlined above. Stetson, Dresel.

Stovall
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