611.5431/216a: Telegram
The Secretary of State to the Minister in Switzerland (Wilson)
52. When we told Stucki during the negotiations the nature of the tariff concessions we were prepared to make we specifically asked that pending the conclusion of the agreement our offers be kept confidential. American watch interests have recently come to the Department with exact copies of the proposed duty reductions on watches. These interests state that they obtained the information from Swiss sources. A similar situation has arisen in connection with Neora and Pedaline braids.
[Page 762]You will readily understand how serious this development is to us. I am not unmindful of the fact that in matters of this sort the Swiss Government likes to consult its interested industries but I cannot help but feel that sufficient care has not been exercised by the Swiss in keeping our offers confidential.
You will appreciate that this leak has created a most embarrassing situation here which may jeopardize the entire agreement. Although it is presumably too late to check the dissemination of this confidential information it seems to me that it becomes essential that the agreement be concluded at the earliest possible date. As Stucki knows American watch interests have bitterly opposed any duty reduction and now that they know the exact nature of these proposed reductions may renew their attack. Furthermore, Stucki will readily perceive that with this knowledge American importers will, pending the conclusion of the agreement, be very loath to import, which would be against the best interests of both countries.
Please bring the above at once orally to the attention of Stucki and urge strongly on him the necessity of hastening the conclusion of the agreement.