File No. 654.119/356

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

No. 3422

Sir: With reference to this Legation’s telegram No. 3505 of May 30, 1918, transmitting Mr. Dresel’s telegram No. 51 for the War Trade Board,1 I have the honor to enclose herewith copy and translation of the official communication from the representative of the Swiss Department of Public Economy to the effect that no American cotton will be exported from Switzerland in any form to countries at war with the United States during the life of the agreement of December 5, 1917.

A copy of a personal letter from the head of the Section of Textile Industry of the Department of Public Economy, Dr. E. Iklé, is likewise enclosed. In this letter Dr. Iklé makes the request referred to in the above-mentioned telegram in regard to the form of any public announcement in America concerning this undertaking of the Swiss Government.

I have [etc.]

Pleasant A. Stovall
[Page 1630]
[Enclosure]

The Head of the Section of Textile Industry of the Swiss Department of Public Economy ( Iklé) to the War Trade Board Representative ( Dresel)

Dear Mr. Dresel: In regard to the enclosed letter I take the liberty of calling your attention to the fact that in case its content should be published in the U.S.A., the form in which this is done matters greatly to Switzerland. I would be very much obliged, if to the enclosed letter it would not be given the character of a special arrangement between the two Governments, but only that of an explanatory letter as to the effect of the new “accord” between the Allied Governments and Switzerland of May 8 concerning the exportation of cotton goods to the Central Powers.

As I have explained to you and Mr. McFadden, the new wording of the article 10 of the S.S.S. règlement does not allow any exportation of heavy cotton goods made of American cotton, but only that of fine goods made of Egyptian cotton in a limited amount. Furthermore our internal Swiss need in American cotton compels us to use every ounce coming in for our own purpose.

Trusting that this matter will be settled to your full satisfaction I remain [etc.]

R. Iklé
[Subenclosure—Translation]

The Head of the Section of Textile Industry of the Swiss Department of Public Economy ( Iklé) to the War Trade Board Representative ( Dresel)

Dear Sir: During an interview which I had the pleasure of having with you and with Mr. McFadden, concerning the exportation of cotton goods to the Central Empires, you asked me if there will still be exports of American cotton under the new regime established between the Allied Governments and the Swiss Government on May 8, 1918. I replied to you that the new restrictions will doubtless have the result of practically preventing such exports. You then proposed to me to draw up the following memorandum:

The following memorandum between the War Trade Board and the Swiss Government is supplementary to a certain memorandum between the said parties dated December 5, 1917.

With reference to schedule F of article 3 of said memorandum of December 5, 1917, it is hereby stated and declared as follows, notwithstanding the statement in said schedule to the effect that the [Page 1631] declaration therein contained shall not apply at present to the goods specified in article 10(c), pars. 4 and 6, of the by-laws of the S.S.S.:

The Swiss Government declares and agrees that no raw cotton of American origin and growth and no manufactured products of such raw cotton shall be exported in any form, whether as raw or finished products to Germany, Austria-Hungary, Turkey or Bulgaria, or to destinations beyond such countries involving transit through the countries named, provided that such raw cotton [or] products thereof manufactured either within or without Switzerland, has arrived within Swiss territory on May 1, 1918, or subsequent to said date.

This memorandum becomes void on September 30, 1918, it being further understood that raw cotton or manufactured products thereof of American origin and growth received in Switzerland during the life of this memorandum shall not subsequently to last named date be exported to the countries mentioned except by previous agreement.

United States of America: War Trade Board
By
Representative.
For the Government of Switzerland:

As I had the honor of explaining to you, it is not possible for political reasons for us to sign such a declaration, even if the reality of the situation would permit it. Nevertheless I take the liberty of confirming by the present that in view of the penury of cotton in Switzerland no exportation of American cotton can take place in a manner contrary to the idea expressed in your memorandum. Moreover, the necessary instructions for putting this idea into execution were given after the abovementioned conversation.

Please accept [etc.]

Dr. R. Iklé
  1. Not printed.