File No. 854.85/40
The Chargé in France ( Bliss) to the Secretary of State
[Received August 24, 6.25 p.m.]
4862. [For War Trade Board from McFadden:]
No. 360. The Swiss negotiations for Spanish and Austrian-German tonnage conducted during the last seven weeks in Madrid have been unsuccessfully concluded and Mr. Cailler has returned to Berne. Doctor Sulzer and Mr. Cailler give the following in explanation of the same.
First: The Spanish Government have requisitioned the Spanish mercantile fleet, therefore it is no longer possible, either by time charter or purchase, to secure Spanish tonnage.
Second: The terms, locations, etc., of the various tentative offers made by the Austrian and German Governments for the Austrian and German tonnage, were unacceptable to the Associated Governments, while on the other hand the terms, location, etc., under which the Associated Governments were willing for the Swiss to purchase or charter the Austrian and German tonnage were unacceptable to the German and Austrian Governments. Therefore the Swiss commissioners thought that for the present it was useless to continue further negotiations in Madrid.
Further: It was felt that geographically, Madrid was not as suitable a location as Berne from which to pursue further negotiations and discussions in connection therewith.
In connection with the transport problems of the Federal Government, we think Sulzer, Cailler and Grobet are now fully alive to the importance of securing independent tonnage for Swiss transport service. On this account, the Federal Government sent shipping experts to Berlin and are now in receipt of a tentative offer on time charters of eight ships, four of which are interned in Spanish ports and four interned in the Far East, under the condition that the Associated Governments will furnish a corresponding number of ships, of approximately corresponding tonnage, all to be employed in the Swiss transport service. We have suggested to Doctor Sulzer [Page 1642] that as soon as a concrete and definite offer is obtained by the Swiss Government for Austrian or German tonnage that same shall then be contemporaneously submitted, together with all the details in connection therewith, to the diplomatic representatives of the Associated Governments in Berne to be transmitted by them to their respective Governments for joint consideration of the Associated Governments.
In this connection we venture to observe that we are decidedly of the impression, judging from various correspondence which has come under our observation, that the British Government regard unfavorably the Swiss negotiations for Austrian-German tonnage and in consequence have been a discouraging influence. The following is an example and an extract [from] a letter written by British Foreign Office, London.
His Majesty’s Government are, however, now advised by their shipping authorities, that the present tonnage situation, while still critical is not such as to justify the recognition, in case of enemy vessels, of any transfer of flag which might tend to embarrass any policy which may be adopted by the Allied Governments in regard to the period following the conclusion of the war. It is accordingly for consideration whether it may not prove more advantageous to Allied interests to keep enemy vessels in port in the unseaworthy condition rather than to allow them to be utilized now and thereby facilitate their resumption of trade in German interests on the conclusion of the war. His Majesty’s Government are of course ready, in accordance with the assurances already given, to support for the present both the Italian and Swiss negotiating for the enemy ships in Spain but, for the reasons given above, they would not be greatly concerned, if as appears not impossible, no appreciable result is obtained.
We understand it is your intention to negotiate, about October 1, a new agreement with Federal Government in which you propose to again provide a ration to the Swiss in view of the fact that the Swiss are unable, on account of control by various Associated Governments’ committees, boards, and councils, to obtain either neutral or Associated Government tonnage, therefore it occurs to us that in granting a ration, a collateral obligation of providing tonnage to transport same is assumed by War Trade Board. We therefore, venture to suggest that the Swiss should be encouraged in their negotiations with the Austrian Germans as the extent to which enemy tonnage can be secured, just to that extent will the Associated Governments be relieved of transport obligations. We are inclined to think that a concrete proposition will be submitted by Swiss within the next few weeks. McFadden.