740.00112 European War 1939/6599: Telegram
The Minister in Switzerland (Harrison) to the Secretary of State
[Received September 9—7:40 p.m.]
4138. Following telegram has been sent to London.
“8, September 9, 8 p.m.
My 2841 to Department which was repeated to London under date of June 20, 11 a.m.20
Hotz, Director of the Division of Commerce informed me yesterday that the Swiss delegates have obtained the agreement of the Germans to accord transit permits for priority supplies for the items (with a few exceptions and reservations) detailed in the Embassy’s telegram from London to Bern No. 20 of April 5, midnight. The Swiss have telegraphed this list to their Legations at Washington and London.
This agreement would run for 4 months to the end of December and would permit exports of those items to the amount of 7½ million francs to the United States and the United Kingdom. While Italian approval is required to effect this agreement, Hotz stated that he had no doubt the Germans would exact their accord, but that the Germans would grant transit permits via France should the Italians raise any difficulties.
Hotz stated that the Swiss have made no concessions to the Germans against this agreement. However, the Germans have imposed, as a condition of this plan, that we should discontinue, during these 4 months and for any subsequent duration of its operation, our efforts to force Swiss firms to abandon or reduce deliveries on munitions manufactured for the Germans.
The agreement, which has been signed by the Swiss and Germans, will become effective when signed by the Italians and receives the formal approval of the Federal Council.
In my telegram under reference I outlined the importance which I attached to the obtention of this phase of the compensation plan and I consider success of Swiss in making this break in German counter-blockade to be an indication of Swiss desire to throw off German stranglehold and finally that this agreement when in operation will have a salutary effect throughout Switzerland and will strengthen resistance of Swiss manufacturers to German suasion.
Hotz informed me that he plans negotiations with Italians in early October and immediately thereafter with Germans for their 1943 commercial agreement. Our reaction to this proposal will I believe have a decided influence upon position which Swiss will take in these negotiations. Possibly as an indication of courage gathered from this success Hotz informed me that his Government proposes to insist upon a further reduction in percentage of so called ‘free’ exchange now allowed Germans under their current agreement.
The offtake of these priority supplies would encourage Swiss in their negotiations with Germans to resist very strong pressure which I am convinced Germans will apply in an effort to increase munitions production by Swiss. It will also give added incentive to effect the [Page 398] limitation on manufactured supplies to Axis which I understand is to be part of London agreement.
I fully realize difficulty of supplying certain raw materials under the compensation plan, but I am even more convinced of practical and political advantages to be derived therefrom and which I outlined in my telegram under reference. The present proposal would seem to be an effective step towards obtention of these advantages and particularly through weakening dependence of Swiss Government on Axis Powers.
My British colleague agrees and is telegraphing similar sense to London.
Repeated to Department.[”]
The Swiss have called a special meeting of the Mixed Commission for afternoon of Friday, September 11, and it would be useful if I might have some indication of Department’s views on this proposal as soon as possible.
- Not printed.↩