Foreign Relations of the United States: Diplomatic Papers, 1943, Europe, Volume II

740.00112 European War 1939/8691d: Telegram

The Secretary of State to the Ambassador in the United Kingdom ( Winant )

Washington , June 15, 1943—8 p.m.

3708. Swiss Legation has presented a memorandum dated June 11³⁴ to the effect that Swiss Legation in London recently approached British authorities to inquire whether it would be acceptable to MEW and American delegation to reopen suspended negotiations. The Swiss state that the Federal Council has taken a decision to reopen the London negotiations as soon as possible with delegation consisting of Sulzer and Keller and that they are prepared to submit proposals concerning export restrictions including quotas for undesirable exports groups 3 and 4 and for dairy products. The Swiss expressed disappointment with the London reception of this proposal and state that American and British Governments intend to set down in writing the conditions which alone will permit reopening of negotiations. They say that such a step would not be acceptable if the contents of the hoped for negotiations should thereby be anticipated. The Swiss specifically point out that some new credits will have to be given Germany in order to reach an agreement enabling Switzerland to obtain necessary raw materials and they suggest that if they meet us on quotas, further credits would be of small significance. If a general agreement is reached, the Swiss are willing to conclude the financial arrangements. The memorandum concludes with the expression of hope that upon further consideration the proposed visit of the Swiss delegation will be agreeable.

British Embassy informs Department that on June 9 after discussion with Riefler, British Parliamentary Secretary sent a letter to the Swiss Minister doubting the utility of reopening negotiations unless the Swiss were prepared to inform us in advance as to the subjects they regard as open to discussion.

We have not received your views or those of Riefler on the present status of Swiss relations but our preliminary views follow:

1. We think the Swiss must be under a misapprehension when they state that London intends to impose written conditions to reopening of negotiations. It would seem to us sufficient if the Swiss came to London prepared to meet our desires in principle leaving to the negotiations the precise form of commitment.

2. The memorandum presented in Washington being subsequent to the approaches by the Swiss in London, may to some extent meet London’s conditions for reopening the negotiations. The Washington memorandum specifically refers to quotas on undesirable exports and to dairy products.

3. If really satisfactory quotas are obtained for undesirable exports, an absolute prohibition of all credits may not necessarily be a sine qua non to a satisfactory solution. This question would have to be examined in the light of concrete proposals.

4. On principle it seems wise to attempt to obtain an agreement with the Swiss before they conclude negotiations with the Germans.

5. To refuse to meet the Swiss may discourage them to the point where they despair of reaching any agreement with us. This would weaken their desire to resist German demands.

6. It seems to us that the Washington memorandum at least provides a basis for reopening the negotiations although amplification and clarification may be desirable. We urgently request your views and those of MEW and Riefler.

Hull

34. Not found in Department files.