611.5431/517
Memorandum by Mr. Theodore C. Achilles of the Division of Western European Affairs, of a Conversation Between the Assistant Secretary of State (Sayre) and the Swiss Minister (Peter)
The Minister of Switzerland called to request further assurance that the “escape clause” contained in Article 11 of the Trade Agreement between the United States and Switzerland would not be invoked as a result of Swiss devaluation.
The Minister had cabled his Government concerning his conversation on the same subject with the Secretary on October 2, in which the Secretary referred to the action of the Belgian Government, at the time its currency was devalued, informing this and other Governments that it would not permit undue exportations of commodities at unduly low prices as a result of the devaluation. The Swiss Government had cabled him to the effect that the situation in Switzerland was different from that which had prevailed in Belgium in that (1) this was the first time the Swiss currency had been devalued; and (2) wages and prices in Switzerland were exceedingly high prior to the devaluation. His Government had also informed him that the Decree authorizing devaluation of the Swiss franc had conferred upon the Federal Council specific authority to take measures to stop exportation at unduly low prices as a result of the devaluation. His Government had requested him to endeavor to obtain further assurance that Article 11 of the Trade Agreement would not be invoked.
Mr. Sayre advised him that, while we could naturally not bind ourselves in regard to future action, the primary purpose of this Government was to promote currency stabilization and a revival of international trade, that the Trade Agreement with Switzerland was a step toward the revival of trade between the two countries which had been made after much effort and which this Government would be loathe to see discarded, and that we had no present intention of taking any action under Article 11. He added that this Government would not take such action in the future unless imports from Switzerland should come into this country in such volume as a result of the devaluation as to disorganize prices in this country of any particular commodities.