740.00112 European War 1939/8268: Telegram

The Minister in Switzerland (Harrison) to the Secretary of State

2525. My British colleague15 has shown me the exchange of telegrams between his Government in London and British Embassy in Washington beginning former’s 1522, April 16, to Washington the latest of which was London’s 1572, April 20, and series from Washington [Page 830] beginning with its 1384, April 17, the latest of which was its 1399, April 19.

As I read these telegrams the proposed plan to revoke all export licenses [and] navicerts in near future and to hold up all new applications is intended principally: (1) To cause Swiss to break their existing “liquidation” agreement with Germany as a means of further reducing undesirable exports to Germany or at least maintaining them at their recent lower level; and (2) to bring pressure to bear upon Swiss to stiffen them in their current negotiations at Berlin.

With regard to (1) it is my considered opinion that Swiss will not be induced to break this agreement by reason of application of measure proposed, and objective of reducing undesirable exports immediately will therefore not be achieved because of Switzerland’s inescapable dependency upon Germany for coal, oil and other essential raw materials, seeds, fertilizers, et cetera.

With regard to (2) it is my belief that the threat to take severe action against Switzerland in event that Swiss negotiators are unable to obtain approximately the objectives laid down by Federal Council (my 2258, April 10 [9], 288 to London) would be more effective in stiffening their efforts than would be immediate application of sanctions envisaged. Undoubtedly Germans would learn of such sanctions immediately and could and would exploit Switzerland’s weakened position to impose an agreement which might be far less favorable to our interests than one within framework of Federal Council’s instructions which limit for proposed agreement of 1 year a Swiss quota credit to Germany (proportioned to German coal deliveries) to one-eighth of open credit of 850,000,000 francs accorded under 1941 agreement.

I believe we should confine ourselves for present to a joint expression of our dissatisfaction in strong but general terms and not except perhaps in oral explanation go into specific details of exact measures of retaliation which we have in mind pending some indication of German reaction to present Swiss position which should be forthcoming shortly.

Harrison
  1. Clifford John Norton.