File No. 854.85/41

The Swiss Legation to the Department of State 1

Memorandum

The Legation of Switzerland is in receipt of cable information from Berne stating the difficulties being experienced by the Swiss Government in its efforts to acquire German and Austrian vessels in Spanish waters.

The greatest difficulty lies in the fact that Great Britain has given its approval for the charter of German and Austrian vessels in Spanish ports only, and not for those interned in other ports such as those of the Dutch East Indies, whereas, the Imperial German Government declares that it is not in a position to turn over to Switzerland the vessels in Spanish ports but is ready to cede those interned in the Dutch East Indies.

The Swiss Government is in receipt of information that the German Government has also been approached by the Spanish Government with a view to procuring for its own use the German and [Page 1639] Austrian vessels lying in Spanish ports on terms similar to those under consideration for Switzerland, i. e., repurchase by the owners at the end of the war.

The German Government appears willing to enter into negotiations for the charter of these vessels by the Spanish Government for the duration of the war, on condition that Spain withdraws the Spanish tonnage actually engaged in the Allied transportation service and uses it only for its own interests. In this case it is unofficially understood that the German Government is willing to turn over to Switzerland at least five to seven vessels, provided the Allied Governments will allocate to Switzerland an equivalent amount of tonnage for the duration of the war and engage themselves not to withdraw this tonnage from the Swiss transportation service as long as the war lasts.

The Swiss Government would be very grateful if assurance could be given it that the Government of the United States will assist the Swiss Government in every way possible in its efforts to overcome the existing difficulties in securing the tonnage in question on the conditions which make their acquisition possible. The assistance and approval of the Government of the United States and the Allied Governments is equally indispensable to the acquisition of the German and Austrian ships lying in Spanish waters as to those interned at the Dutch East Indies.

  1. Through the War Trade Board.