854.24/172: Telegram
The Ambassador in the United Kingdom (Winant) to the Secretary of State
[Received September 27—9:07 p.m.]
6493. For Department and OEW. With further reference to the Department’s 5800 of September 21 and Embassy’s reply 6358 of September 23, 2 p.m., following is text of the memorandum dated September 20, left by the Swiss Minister in London with Foot of MEW protesting against resumption of black list pressure in Switzerland.
“M. Thurnheer is in receipt of a cable from Bern, according to which direct approaches by His Majesty’s and the United States Consular representatives with important Swiss firms, especially in the machine industry, would have shown a considerable increase of late. In some of these cases, the firms were asked for an immediate reply, in certain instances within a time limit of a few hours only, and given to understand that they would be placed on the Statutory List unless they are willing to enter into individual restrictions regarding their exports to [Page 875] Germany. Also, the reductions which these firms are asked to adopt would go considerably beyond the restrictions recently stipulated through official channels.
- 2.
- Bern feel that such measures could hardly be reconciled with the agreement of August 17, 1943,64 which now provides for definite restrictions to be enforced by Switzerland on her exports to the Axis countries. In view of these arrangements, to which Switzerland will strictly adhere, Bern are of opinion that autonomous measures for individual restrictions could thus be dispensed with. In this connection Bern also refer to the exchange of letters with the Swiss Trade Delegation of December 14th, 1942, on the same subject.
- 3.
- M. Thurnheer has thus been instructed to bring the above to the attention of the Ministry of Economic Warfare, and he would be very grateful if the Ministry of Economic Warfare would kindly let him know their views on this matter.”
Foot is replying to this memorandum in the following letter to the Swiss Minister:
“I have given careful consideration to the memorandum dated the 20th September, in which Your Excellency was so good as to set out the observations of the Swiss Government regarding direct approaches to important firms in Switzerland by His Majesty’s and the United States Consular representatives.
- (2)
- I of course recognise that the Agreement of August 17th, 1943, provides definite restrictions to be imposed by the Swiss Government on exports to Germany and German-occupied or -controlled territories. H. M. Government have, however, never accepted the contention that the conclusion of such an agreement precludes approaches to individual firms. They certainly could not accept it at the present stage of the war when, as was pointed out in Mr. Foot’s letter to you of 21st August,65 trade with neutral countries is of relatively greater importance to the Axis war effort than ever before. At the present time, when the British and United States Armies are already engaged in the liberation of Europe, and when further and even more considerable military operations are in prospect, H.M. Government feel bound to adopt every legitimate measure in order to diminish the flow of supplies from neutral countries to Germany and her associates. Moreover, the agreement of August 17th is only valid until 31st December, whereas the undertakings given by individual firms are intended to continue in force until the end of the war.
- (3)
- It is also material to point out that although the agreement of August 17th provides for considerable reductions in Swiss exports to the Axis in the later months of 1943, the benefit of this agreement to the United Nations was substantially offset by the extraordinary rise in such exports during the second quarter of 1943, and in the month of July.
- (4)
- As regards the exchange of letters of 14th December 1942, the letter addressed to Dr. Sulzer and signed by Mr. Riefler and Mr. Foot contains an undertaking that, in order to facilitate the compensation agreement in its early stages, the British and American representatives in Switzerland would for the time being refrain from new approaches, such as those hitherto made to Swiss firms in the watch and metallurgical industries. As was fully understood at the time by all parties, the period then contemplated was certainly not longer than 3 or 4 months. In fact, this period of immunity has lasted for 8 months, during which time it is clear that many of the firms which were not bound by undertakings took advantage of the situation substantially to increase their deliveries to the Axis.”