740.00112 European War 1939/5020: Telegram
The Chargé in the United Kingdom ( Matthews ) to the Secretary of State
[Received March 26—11:55 p.m.]
1457. The Department’s instructions are requested on the following:
Ministry of Economic Warfare have raised the question of Embassy’s representatives being present, at least as observers preferably as participants, in conversations which are commencing tomorrow with a delegation from Switzerland, just arrived in London to discuss questions arising out of the blockade. Since the outcome of these conversations will hinge to a considerable extent on the availability of certain supplies from the United States, M.E.W. thinks it important to have Embassy representation, and have ascertained that this would also be agreeable to the Swiss. From the British side, the conversations are to be conducted entirely by M.E.W. except that the head of the Swiss delegation will pay a courtesy call on the Foreign Secretary.
The first meeting with the Swiss delegation will be held March 27. It has been arranged, pending receipt of instructions from the Department as to whether fuller participation in the conversations is desired, that an Embassy representative will attend as an observer; also that Riefler1 will attend for Board of Economic Warfare.
The following is a summary of the position as explained informally to Somerville2 by Stirling3 of M.E.W.:
Swiss frontiers are now entirely under German control, the Germans having officials at the Swiss-French frontier—posted even in unoccupied France. The Germans thus control Swiss imports and exports; and last summer the Swiss Government gave an undertaking to the German authorities that they would not attempt to export without obtaining transit permits from the German or Italian authorities.
[Page 377]The British Government adopted the position that this submission of the Swiss Government to the control of their exports (which would prevent Great Britain from obtaining any of the important materials, such as machine tools, and watch parts, which they require from Switzerland) meant that Swiss economy was entirely subservient to German war economy. They accordingly informed the Swiss Government that they could not allow the import of raw materials for Swiss industry through the blockade unless Switzerland were willing and able to export to Great Britain. For political reasons the Swiss were still allowed to import food stuffs through the blockade.
As a result of discussions through the British Legation in Bern, the Swiss Government were subsequently informed that if they could obtain permission from the Germans or Italians to export to Great Britain or the United States priority material of certain categories to a value of 2½ million Swiss francs a month, the British authorities would give navicerts for certain important raw materials required by the Swiss to the same value and would consider reopening the quotas, previously fixed for less important raw materials. The Swiss delegation have brought with them a list of the priority material required by Great Britain to the value specified, to the export of which they state that the German authorities have provisionally consented.
The sub-division of this list between the different categories of material is probably unsatisfactory, but the list has not yet been, thoroughly examined.
The Swiss delegation point out, on the other hand, that in present circumstances the grant of navicerts for raw materials is of no value unless supply is assured and they state that in return for the export of the priority material specified to Great Britain and the United States, they would require that the British and American Governments should undertake to supply raw materials to the same value.
Please inform Perkins4 and Stone5 of Board of Economic Warfare.
- Winfield W. Riefler.↩
- James Somerville, Assistant Commercial Attaché in the United Kingdom.↩
- C. N. Stirling, head of the Peninsular Section of the Ministry of Economic Warfare.↩
- Milo Perkins, Executive Director, Board of Economic Warfare.↩
- William T. Stone, Assistant Director, Board of Economic Warfare.↩