File No. 854.85/41e
The Department of State to the Swiss Legation
Memorandum
The Department of State has received from the Chairman of the War Trade Board a letter from the Swiss Legation, dated August 15,1 with reference to the Legation’s memoranda of August 13 [12]1 and August 15 on the subject of negotiations by the Swiss Government to secure shipping.
The Legation’s memorandum of August 12 deals with the subject of negotiations by the Swiss Government to secure Spanish tonnage and refers to a statement by Mr. Sulzer that the War Trade Board had expressed their willingness to exercise pressure upon the Spanish Government in favor of Switzerland in such negotiations. The Department feels that there must be some misunderstanding in this connection as it had never been aware that the Swiss Government was negotiating for Spanish ships. The only proposal which had [Page 1640] been laid before the Department by the Swiss Government and the proposal to which the Department had given its approval was the purchase or charter by Switzerland of German or Austrian ships lying in Spanish waters. The Legation’s memorandum of August 12 is the first intimation which the Department received from the Swiss Government that it had in contemplation the acquisition of Spanish tonnage. The Swiss Legation is doubtless aware that there is now in Spain a representative of the United States Government discussing tonnage matters with the Spanish Government. The Legation has been advised as to the pendency of these negotiations and this Government is unable to accept the suggestion that such negotiations should at this late date be discontinued in favor of the proposal now for the first time made, namely, that the Swiss Government itself should negotiate for Spanish ships.
In the Legation’s memorandum of August 15 reference is made to the fact that the Imperial German Government now declares that it is not in a position to turn over to Switzerland vessels in Spanish ports but it is ready to cede those lying in Dutch East Indian waters. The Government of the United States is prepared in principle to consent to the acquisition and use by the Swiss Government of such ships in Dutch waters, whether colonial or continental, and in so far as the detailed terms of such proposed acquisition are acceptable, to use its good offices to assist the Swiss Government in this matter.
It is also noted that the Legation’s memorandum sets out the suggestion of the German Government that provided Spanish tonnage engaged in transportation for the Associated Governments is withdrawn from such use, then the German Government would be willing to turn over to Switzerland the use of certain vessels provided the Associated Governments made a similar allocation for Switzerland. Such a proposal is not acceptable to the Government of the United States.
The proposal of the Swiss Government to which the Government of the United States gave its acceptance involved the purchase or charter by the Swiss Government of German or Austrian ships lying in Spanish waters. This proposal was not coupled with any conditions relative to an allocation by the Associated Governments of tonnage for Swiss use, nor did it involve any question of the use of neutral tonnage. The Government of the United States has given and will continue to give its strong support to the carrying out of this original proposal, provided the details thereof are satisfactory Indeed, this Government desires again to urge the importance of consummating an arrangement along the lines above indicated, in view of the fact that the existing commercial arrangement with [Page 1641] Switzerland under which tonnage is allocated for Swiss use by the Associated Governments is shortly to expire, and since, as previously pointed out, the shipping situation of the United States will continue to be such that, in view of the extensive war program to be consummated, the Swiss Government cannot rely upon the continued use of American ships.