740.00112 European War 1939/7769: Telegram
The Minister in Switzerland (Harrison) to the Secretary of State
[Received 8:10 p.m.]
799. Legation’s 440 [448] (57 to London) January 20.2 At the Mixed Commission meeting on January 29, the Swiss delegates claimed emphatically that they had compromised their economic relations with Germany and possibly with serious effects to be expected on Swiss economy through their demand that Germany give formal acceptance to a reduction in Swiss exports which we consider undesirable. They added that they had gained the impression during the London negotiations that our negotiators were not only interested in securing actual reduction but that it was desired that Switzerland should demonstrate for political reasons its independence from the Axis by obtaining this concession from Germany.
Although since the breakdown of negotiations on January 15 there had been no noticeable alteration in Swiss-German trade, the Swiss fear a slowing down of imports especially of coal and possibly of steel. The Swiss argued that some recognition by the American and British Governments of the position they have taken vis-à-vis Germany was now called for and suggested that we should consider restoring the suspended quotas and mentioned particularly fodder. They maintained that a decline in essential imports from Germany would automatically lead to a reduction in undesirable exports.
Also as the suspended quotas were fixed quarterly we would be in a position periodically to suspend these quotas again if we were not satisfied that the reasonable expectation of a reduction in undesirable exports had been realized. The Swiss appear to be anxious to learn the reaction of Washington and London to this suggestion before deciding upon the date of the return of the Swiss delegates to London but which in any case will be delayed pending a clarification of the Swiss-German situation.
[Page 825]Furthermore, the Swiss pointed out that their formal acceptance of the specific reduction on individual ceiling bases without prior agreement by the Germans to a reduction in undesirable exports would be extremely difficult since the political factors must be insidious.
The Swiss also stressed that they could not remain indefinitely in the present state [of] uncertainty in their relations with Germany and that any concession from us at this time would greatly strengthen their hand when negotiations with Germany are resumed.
Repeated to London.
- Not printed.↩