740.00112 European War 1939/7769: Telegram
The Secretary of State to the Minister in Switzerland (Harrison)
395. Reference your 799, February 3. At a meeting at the Department attended by representatives of the Board of Economic Warfare and the British Embassy the present position and attitude of the Swiss was discussed. The stiffening of the Swiss attitude vis-à-vis Germany is encouraging and deserves recognition by American and British Governments. For your confidential information the Department suggested to our negotiators in London that this recognition might take the form of granting a special quota for the shipment of from five to six thousand tons of raw cotton. For over a year the Swiss have received no cotton and the Swiss Legation here has indicated that the granting of such a quota might have a beneficent effect on negotiations out of all proportion to its importance from the blockade point of view. It is our opinion that such a special quota should be in cotton rather than fodder, because fodder has a direct bearing on Swiss exports to the enemy. We also suggested that if a satisfactory War Trade Agreement is signed our negotiators might desire to offer the Swiss basic rations which would involve definite supply commitments. Under the present form of the proposed War Trade Agreement we are under an obligation to use our best efforts to supply the Swiss with commodities for which quotas may be granted and as control of materials by supply authorities grows in scope our commitment for all practical purposes may amount to a grant of basic rations. These suggestions were posed for the consideration of the Economic Warfare Division and the Ministry of Economic Warfare and are not to be construed as offers at this time.
Until these suggestions have been considered in London they should not be communicated to the Swiss, but you can assure the Swiss that [Page 827] our appreciation of their attitude towards the Germans will be clothed in substance.