854.24/27

The Secretary of State to the Swiss Minister (Peter)

Sir: Most sympathetic consideration has been given to your note of May 26, 1939 transmitting information regarding arrangements contemplated by the Federal Council of Switzerland for securing certain supplies from the United States.

I have noted your statement of the desire of the Federal Council of Switzerland to negotiate option contracts with American concerns for the supply of certain foodstuffs and raw materials to Switzerland in the event of a general European conflict. You inquire as to whether there would be any objection on the part of this Government to the negotiation of such contracts, and I am glad to be able to state that so far as this Department is aware there would be no objection, provided, of course, that the proposed transactions would not be in conflict with the rules and principles of international law or statutory enactments, regulations, or treaty obligations of this Government.

I have noted also your statement that the Government of Switzerland would likewise desire to negotiate option contracts to charter certain American vessels in the event of a general European conflict. You also inquire if there would be any objection on the part of the American Government to such contracts, and, again, I can assure you that so far as this Department is aware there would be no objection, provided that the contractual obligations assumed by the American [Page 866] concerns, and the actual carrying out of the plan, would not conflict with the rules and principles of international law, or statutory enactments, regulations, or treaty obligations of the United States.

I need not assure you that in the future as in the past, both the Government and the people of the United States will have the steady desire to maintain the friendliest and fullest possible commercial relations with the Government and people of Switzerland. This desire, I am confident, will be present under all circumstances. The action that this Government, however, may be compelled to take under any future sets of circumstances cannot be determined in advance and would have to fall within the rules of international law and the course of domestic legislation.

Accept [etc.]

Cordell Hull