611.5431/258: Telegram
The Minister in Switzerland (Wilson) to the Secretary of State
[Received October 28—3 p.m.]
44. I saw Stucki today regarding your 66, October 23, 2 p.m. Stucki told me that he was feeling depressed about the negotiations, that he had consulted representatives of both the watch and the embroidery industries and that they had stated that they preferred not to have any arrangement to the proposed one. Stucki said that as far as business with America was concerned for Switzerland the key industry was watches. If this industry wanted the arrangement [Page 771] he could put it through his Government even though other industries were dissatisfied but not otherwise.
I then told him about your 67, October 26, 1 p.m. He said that Nef had not reported any “reassurances” and that frankly he had not known that their specialist had sailed on the Bremen. He would of course take the matter up when the specialist arrived and would again discuss it with the watch people. It might be, he said, that in this question of watches, especially in the matter of adjustments, the Swiss had been mistaken on the American offer and he hoped that such would prove to be the case. The watch manufacturers however seemed distressed at the proposals on bushings.
Stucki then went over the argument that he had previously advanced to me and which I reported in my despatch 3956, July 9th, regarding the relative importance to the United States [and?] to Switzerland of the watch industry and hoped something more could be done in this connection. I told him I feared we had made our last concession and that the state of the negotiations and the balance of our offer were such that the bargaining time had passed. He replied that he wanted this agreement with America really badly and that he knew that you did and urged me in spite of what I had said to bring the matter before you again with the hope of a reconsideration of the watch schedule.
He then said he had something which candor compelled him to bring to our attention, namely, the matter of lard. He had consulted the chief of the Veterinary Bureau and found that it was unlikely that importation of this article will be resumed in the near future. He did not wish to make any agreement with you which would mislead you in this connection. In any case he thought 90% too high and 70% a fair figure.
With respect to the argument in the last paragraph of your 66 October 23, 2 p.m. Stucki recognized its force but said that trade with Spain had no analogy in Switzerland, trade with the Netherlands had one article of importance to Switzerland and trade with France two articles in silk of importance to Switzerland, thus the gains by such conventions while appreciated by Switzerland would not be very beneficial.