Office of the Historian

611.5431/242¾

Memorandum by Mr. David Williamson of the Division of Western European Affairs

[Washington,] October 11, 1935.

Memorandum of Conversation With Swiss Negotiators

  • Present
    • For Switzerland:
      • Mr. Micheli
      • Mr. Nef
      • Mr. Amez-Droz
    • For the United States:
      • Mr. Williamson
      • Mr. Catudal (TA)
      • Mr. Barker
      • Mr. Jones25
      • Mr. Leigh Hunt
      • Mr. Murphy (Treasury)

The entire meeting was devoted to discussing the Swiss smuggling proposition. The American delegation recognized the sincere effort that the Swiss had made to cooperate with us in our smuggling problem. The vital point of difference, however, was that the Swiss suggested that exported watch movements be marked with the exporter’s symbol, whereas the Smuggling Act pending in Congress provides that the symbol be that of the American importer. Mr. Nef pointed out that there was serious objection on the part of the Swiss to marking watches with the importer’s symbol. His main contention was [Page 766] that the small Swiss watch manufacturer would lose considerable business, since a certain amount of trade was carried on directly by retailers and the small Swiss manufacturers.

To meet this objection the following proposal was made for study by both sides:

A central office, to be established in New York, which would take out a license as an importer. Small American concerns who for some reason wish to import directly from Switzerland could place their orders with the central organization. Likewise small Swiss manufacturers could distribute their watches in the United States through the medium of this organization.

Mr. Williamson made it clear that the whole trade agreement was contingent upon a satisfactory agreement concerning smuggling, and that until the smuggling question was settled there was no use in discussing further the proposed concessions under Schedule I. Mr. Nef said that he would require some time to study the smuggling proposition, and suggested that the next meeting be held on Tuesday, October 15, at 2 o’clock.

D[avid] W[illiamson]
  1. Joseph M. Jones, Economist, United States Tariff Commission.↩