File No. 654.119/163
The Minister in Switzerland ( Stovall) to the Secretary of State
[Received March 25, 10.45 p.m.]
2929. For War Trade Board [from Dresel]:
Negotiations based on note summarized Legation’s 2387, January 11, and 2421, January 16,1 now approaching completion and believe that satisfactory results attainable. Chief source of disagreement has been revision of the article 10(c), 6,2 relating to cotton tissues, as to which total suppression of exports was originally demanded by Allied delegates. Swiss delegates protested strenuously against this, alleging as certain the adoption of retaliation measures of a serious nature by Germany. Finally, consent provisionally given to annual ration of 500 tons for cotton tissues, less than 6 kilograms per hundred square meters, of specific resistance less than 7.5, and of which value has been increased by high finish 50 per cent over unbleached state. Categories A and B mentioned in agreement of March 20, 1917, thus canceled. Under (c), 4,2 embroideries, a ration of 1,000 tons to be granted and classes of permissible considerably limited by samples to be deposited at St.-Gall. In addition certain articles of which amount exported has been insignificant such as handkerchiefs and embroidered collars excluded from restrictions. To cover orders placed before February 4 on which work begun before February 15, additional ration of 300 [tons] of embroideries and 250 tons of tissues allowed. Under (c), 9,2 knitted goods, a ration of 200 tons allowed in accordance with samples to be deposited. Export of elastic tissues under article [10] (c), 10,2 to be suppressed. Amount of goods sent via Vorarlberg route for finishing in Austria to be reduced from 600 to 250 tons.
[Page 1606]New rationing arrangements to come into force April 1 provided that Allied Governments raise embargo on cotton imports into Switzerland which action recommended by British, French and Italian delegates.
Allied delegates consider frontier control on cotton exports excellent and only minor changes.
In a memorandum of March 19 Swiss delegates request specific statement that United States will inform Swiss Government of quantities and qualities of articles for which American market could be provided, especially cotton and silk tissues, knitted goods and narrow elastic tissues, for all of which United States is asked to furnish raw materials and any special products necessary for these manufactures where peculiar character of orders renders it impossible to obtain such products elsewhere. I shall appreciate instructions as to what assurances may be given in this connection but consider explicit and binding undertaking on subject inadvisable.
Only matters still to be taken up are: (1) agreement on samples—as to this no serious difficulties anticipated; (2) accumulation of stocks, as to which considerable discussion has taken place already. Swiss delegates show disposition to concede essential points relating this last subject and failure to agree, which seemed unlikely, could be followed by further reduction of export rations of raw materials.
In accordance with all Allied delegates I advise adoption of agreement based on foregoing statement believing that any serious risk of furnishing cotton and rubber of appreciable military value by Switzerland to Germany will thereby be eliminated and I shall be very glad to receive approval at earliest possible moment. Dresel.
- Neither printed.↩
- Of the by-laws of the Société Suisse de Surveillance Economique; see schedule F of the agreement of Dec. 5, 1917, Foreign Relations, 1917, Supplement 2, vol. II, pp. 1185–1196.↩
- Of the by-laws of the Société Suisse de Surveillance Economique; see schedule F of the agreement of Dec. 5, 1917, Foreign Relations, 1917, Supplement 2, vol. II, pp. 1185–1196.↩
- Of the by-laws of the Société Suisse de Surveillance Economique; see schedule F of the agreement of Dec. 5, 1917, Foreign Relations, 1917, Supplement 2, vol. II, pp. 1185–1196.↩
- Of the by-laws of the Société Suisse de Surveillance Economique; see schedule F of the agreement of Dec. 5, 1917, Foreign Relations, 1917, Supplement 2, vol. II, pp. 1185–1196.↩