File No. 654.119/117a
The Secretary of State to the Ambassador in Great Britain ( Page )
6258. Following is from War Trade Board for Sheldon:
Our No. 5. Referring your 8194 through Department, the action of the Paris conference was based upon proposal by the British Minister in Berne as to the serious political and military results that would follow if Switzerland were unable to secure the minimum grain requirements and would be compelled to accede to the maximum German demands in order to avoid starvation.
It was agreed that the minimum needs of 30,000 tons per month should be taken over by the Inter-Allied Wheat Executive, in other words, placed upon the same basis as those of the Allies, obviously this body to supply either the grain itself in France, or the tonnage to carry it to France. The interpretation which the British authorities have placed upon this agreement, namely, that they merely guaranteed to the Swiss the right to buy it, leaving it up to them to transport it, would leave the Swiss exactly where they were before, since they had then no difficulties in buying it, but merely in transporting it. This would mean that the Inter-Allied Conference deliberately and solemnly promised to give the Swiss what they already possessed. Naturally the Swiss will leave the market when the Allies furnish the grain which is due Switzerland. The statement of the Minister of Shipping is that they can not find tonnage either among Allied or neutral ships. This only shows the absurdity of the statement that the Paris conference guaranteed the Swiss their breadstuffs if they could find the tonnage, because Swiss inability to find the tonnage, under present conditions and control of tonnage, was the very reason why they appealed for relief. The Swiss appeal for relief was an appeal for tonnage; if they were promised relief at all, it could be only in the shape of tonnage, or of wheat in France; any other promise was mere words.
As to the loan, it does not seem to us to be in accordance with international equity to request a loan in performance of what we have already agreed to do. There are, furthermore, good opportunities for securing such a loan apart from this. Before we left Paris, we turned over to Mr. Crosby a memorandum to the effect that Switzerland [Page 1596] needs further tonnage in order to provide sustenance for domesticated animals, raw products for the maintenance of her industrial and economic life, and manufactured products in order to maintain her social life; that in return for tonnage directed to these ends Switzerland should agree to sell timber to Pershing, facilitate a loan, and deliver to Allies increased amounts of calcium carbide, aluminum, and ferro-silicon. Of course, if there is to be no tonnage to transport to Switzerland anything outside of the 240,000 tons of wheat, this will place her in the position of blockaded Germany, so far as her industries are concerned.
The British representatives sat in on the negotiations with Switzerland in Paris and concurred with all the other Allies in the agreement and we feel we must insist upon the agreement being carried out in the greatest good faith.
As to the Dutch tonnage there can, of course, be no objection by the War Trade Board, if the Shipping Board approves, to the use of Dutch boats when they are in our possession. But in any event, tonnage must be found to carry these foodstuffs to Switzerland in accordance with our promise and the promises of the Allies.