740.00112 European War 1939/8806: Telegram
The Ambassador in the United Kingdom (Winant) to the Secretary of State
[Received July 2—12:15 p.m.]
4341. For Department and BEW from Riefler. In accordance with your telegram 3988 of June 30 I have agreed with MEW to the following instructions which are now being sent to the British Minister in Bern.41
Begin draft instructions:
- 1.
- We have now considered with the Americans the proposals contained in the Swiss memorandum,42 which we regard as a considerable advance on anything the Swiss have so far offered. We observe, however, that while it is proposed to suspend exports of dairy produce and reduce exports of cattle to all Axis-controlled territory, it is proposed to reduce exports of arms and machinery to Germany alone.
- 2.
- The Swiss proposals are only put forward as a basis for
negotiation, and we have no assurance that even the
limitations now operating will continue. It is important
that we should secure continuing guarantees on exports of
arms and machinery immediately, whereas other outstanding
matters can await discussion in London. Please therefore
inform the Swiss Government that we hope they will agree to
put the following provisions into effect as from 1st July.
[Page 853]
- 1st.
- The proposed reduction of exports for the last 6 months of this year to 40 percent of the 1942 exports to apply to each individual tariff item in group 3.
- 2d.
- Radio equipment (954a) to be transferred from group 2 to group 3, and also to be subject to the same reduction.
- 3d.
- Item 948a (gasometers, et cetera) to be split up and the same reduction to apply specifically to fuses.
- 4th.
- Group 4 to be subject to itemized reduction as proposed by the Swiss.
- 5th.
- All these reductions to apply to the whole of Axis Europe and not to Germany alone.
- 6th.
- All above limitations to be by value as well as by weight. The Swiss would guarantee that total exports to Axis Europe during the last half of 1943 should not in the case of any one of the tariff items involved exceed 40 percent either by weight or value of the corresponding total exports in 1942.
- 3.
- If the Swiss are prepared forthwith to meet us on these points we will at once lift the ban on food imports thus ensuring the Swiss their food quotas for third and fourth quarters of 1943. This will mean that Swiss intransigence which led to suspension of navicerts, et cetera, in April will have cost them only the unused balance of the second quarter’s quotas.
- 4.
- Thereafter we would welcome return of delegation to London to discuss other outstanding matters. These would inter alia include Swiss proposals regarding exports of cattle and dairy produce, the further reduction of arms and machinery exports in 1944, the imposition of a ceiling on group 2, and credits. You should emphasize that the offer stated above does not mean that we acquiesce in the granting of further credits or renewal of past credits to the enemy. In particular you should make it clear that the form of credits which it is now intended to extend to the enemy in your telegram number 8373, paragraph 6 (of 26th June) is no less objectionable to us than the form previously contemplated.
- 5.
- We realize that the above demands go somewhat further than the Swiss seem prepared to go from your telegram, particularly in regard to M6, on which we place great importance. But if they meet us they will be able to start shipments of food at once, whereas the procedure envisaged by the Swiss Government (even if we decided to accept it) would involve at the very least the continued loss of shipping facilities for several weeks.
- 6.
- Please address communication to Swiss Government accordingly and inform your American colleague who will, we hope, be instructed to associate himself with your communication. End draft British instructions.
Swiss Minister here is being informed of the substance of above.
No doubt you will wish to instruct the American Minister at Bern to associate himself with this reply to the Swiss proposals covered by Department’s 3988, June 30.
Not repeated to Bern except above instructions by British. [Riefler.]