File No. 654.119/111

The Chargé in Switzerland ( Wilson) to the Secretary of State

[Telegram]

2480. Department’s 1366, January 19, 4 p.m.1 Federal Councilor Schulthess requested me to call. Before complying I discussed situation with Levick, agent of British Treasury now here. Was received at Capitol by Schulthess and De Coppet, Chief of Military Department.

Schulthess asked me whether, since America had freely undertaken to deliver 240,000 tons breadstuff, it was the intention our Government that delivery should be used as basis for compelling compensation on the part of Switzerland.

I replied that United States recognized that its word was pledged and was determined to carry out its agreement. I added that under present circumstances it would probably be necessary for the United States to turn to its allies for tonnage and therefore if Switzerland could get into agreement with Allies over shipping it would greatly facilitate determination of United States to carry out its pledge. So long as Switzerland maintained a stiff attitude with Great Britain it would make it difficult for America in spite of best possible good will to fulfil her obligations. I intimated that, having received this pledge of 240,000 tons from United States, Switzerland should feel some obligation to aid United States in fulfilling it. I was careful to point out that if they desired formal answer to their question I must cable Washington, that what I had expressed above was my personal view of situation.

They both stated that they recognized this and it was my personal view they desired and that they would make every effort to reach an agreement with English on the loan.

I took the stand indicated above in regard to the loan in view of Department’s instruction 1257, December 21.2

Wilson