File No. 654.119/217
The Ambassador in France (Sharp) to the Secretary of State
[Received May 1, 12.54 a.m.]
3760. War Trade Board [from McFadden]:
No. 65. The conferences in Berne were exceedingly interesting as the Germans were negotiating at the same time as the Associated Governments, we being in conference at one end and Germans at the other end of the Palais Fédéral. Germans and Swiss have now been in continuous conference for five weeks without any apparent progress being made in the negotiations. Germans throughout have pursued an arrogant policy, threatening in case Swiss decline to agree to their proposals to cut off the entire coal supply to Switzerland in consequence of which a very strongly antagonistic feeling has been created throughout German, Italian, and French Switzerland against Germany and we think the Swiss now fully realize that, in the event of a German victory, economic and political liberty of Switzerland would be threatened. We think the German arrogance in negotiations assisted us in our negotiations as we pursued diametrically the reverse policy, that is, one of reciprocal and mutual assistance and friendship which the Swiss apparently appreciated.
The conditions under dispute between Germany and Swiss relative to coal agreement are as follows: (1) Germany proposes advancing price of coal 100 per cent; (2) Germany demands satisfactory guarantees that no coal shall be furnished to any industries working on contracts for Associated Governments. The latter condition is bitterly resisted and opposed by Swiss and will probably [Page 1613] not be accepted unless absolutely necessary by Swiss. The French Ambassador, without previous discussion or consultation with us, informed Schulthess, ex-President of Swiss, that, in the event of Swiss agreeing to latter condition, then Associated Governments would be compelled to reduce not only the wheat quota to Switzerland but would insist that no wheat be given to any national employed by any industries occupied in contracts for the Central Powers. We regret the unofficial statement of the French Ambassador for [the following] reasons:
- (1)
- We had, throughout the discussions, preached spirit of friendship. We feel confident from the remarks of Schulthess to writer that French Ambassador’s statement was resented.
- (2)
- Our impression is that, unless absolutely necessary, it is a mistake to compete with the Germans at their own game of reprisals.
- (3)
- We feel that the German proposals together with their method of presenting same have created a spirit of friendship generally throughout Switzerland towards the Associated Governments and therefore we fear, if we should pursue policy corresponding to that of the Germans, that then not only would cause of Associates be harmed in Switzerland, but also the effect of German policy upon Swiss would be greatly modified.
The above is my personal impression of situation. McFadden.