740.00112 European War 1939/9425: Telegram
The Secretary of State to the Ambassador in the United Kingdom (Winant)
6479. For EWD.71 Department and OEW have considered Bern’s 6162, October 2,72 (815 to you) and full text of memorandum mentioned therein handed us by Swiss Legation here. We believe extension of additional credit by Swiss after our attitude on that subject had been clearly stated to them and also their indication in the memorandum that in 1944 they merely intend to retain present ceilings on undesirable exports require a firm and immediate response. We therefore suggest that you discuss immediately with the Foreign Office and MEW the advisability of presenting to the Swiss a joint communication along the following lines:
“For many months the Government of Great Britain and the United States had been endeavoring to negotiate an economic agreement with the Swiss Government. The aim of the two Governments in this regard has been to effect a reduction in Swiss economic assistance to their enemies. In return for achievement of this aim the two Governments have been prepared to make substantial concessions to the Swiss in the field of supplies, et cetera, and to give sympathetic consideration to the effect which the achievement of their aims would have on Swiss internal economy.
The two Governments have felt it advantageous and fair to the Swiss Government to inform it early of their aims in these matters in order that the Swiss Government might be guided accordingly in any economic negotiations undertaken by it with the Axis and associated countries, thus placing the Swiss Government in a position of being able to negotiate with the British and United States Governments on [Page 882] the economic objectives which the latter would hope to achieve in any negotiations with the Swiss Government. The Governments of Great Britain and the United States have frequently expressed to the Swiss Government the importance which they attach to the question of Swiss credits to Germany and associated and occupied countries; this notwithstanding the Swiss Government has continued to grant new credits of considerable magnitude to their enemies. It is now revealed that on October 1 an agreement was concluded with the German Government under which Swiss exporters are to receive until December 1, 1943 a new and enlarged credit guarantee on their exports to Germany which added to the credit facilities already granted will promote German [Swiss?] economic assistance to their enemies, thus defeating one of the primary aims of the British and United States Governments.
The explanations which have been given by the Swiss Government as to the reason for the new credits to Germany are far from satisfactory from the point of view of the British and United States Governments. It is therefore considered most important that the Swiss come immediately to London to commence the negotiations and that they be prepared without delay to conclude a satisfactory agreement.
Meanwhile, in view of recent Swiss concessions to the enemy, the British and United States Governments are prompted to adopt such measures of control over Swiss imports and exports and such action against Swiss firms dealing with their enemies as will best protect their interests. The British and United States Governments are inclined to withhold taking such action only if:
- 1.
- The Swiss Government is prepared to open negotiations with the British and United States Governments in London by November 1, 1943;
- 2.
- Agreements are promptly reached during the negotiations which will satisfactorily limit the export to Germany and to associated and occupied territories of undesirable exports;
- 3.
- All credits to Germany or to countries associated with or occupied by her, no matter when such credits may have been granted, shall become inoperative on December 1, 1943, and that no new credits, or extensions of previous credits will be granted to Germany or to associated or occupied countries;
- 4.
- No commitments for the export to Germany and associated and occupied territories of arms and machinery in 1944 will be made until the Swiss have received the views of the British and United States Governments in the London negotiations.”
If agreement is reached in London on this course of action, it is felt that the two Legations in Bern should be asked by you for their comments thereon before delivery of the communication to the Swiss. As time is of the essence, we leave to you the question of phraseology and form of the proposed communication. We would appreciate your reaction by return cable.