740.00112 European War 1939/10–944: Telegram
The Secretary of State to the Ambassador in the United Kingdom (Winant)
8178. Bern’s 6546, October 1 to Department, repeated to London. This is sequence to our 8091, October 3.24 It is obviously desire of Swiss to separate two parts of our joint demand, regarding exports and transit respectively, and while coming considerable way to meet us on former to avoid discussion of latter. Department and FEA favor maintaining position that two demands are inseparable and any concessions on supplies depend on satisfactory Swiss performance on both.
[Page 776]Swiss note on transit traffic, as reported in Bern’s 6546, is obviously unsatisfactory. Only concessions are to reaffirm 15,000 ton quota for iron and steel which had previously been extensively violated to include additional but unimportant items under that quota, and to prohibit passage of industrial chemicals (largely fertilizers). Swiss take no effective measures to counteract great increase in total volume of traffic, especially northbound, or the changes in character noted in Bern’s 5812, September 4, paragraph 3 (repeated to London as 1568 [1583]).25
Swiss lay principal stress on their obligation as neutral and under Gotthard Convention to maintain traffic by this route. While we recognize that there may be obligation under Convention to permit some shipments, Swiss neutrality requires also that she refrain from contribution to belligerent campaign through allowing great change in volume and character of transit traffic, which change has taken place.
Great increase in volume took place immediately upon start of Allied campaign in Italy and certainly cannot be attributed to normal civilian trade. Increase has continued although portion of Italy in German hands has steadily diminished. (Bern’s 5812, paragraph 4). Normal character of traffic completely altered to consist largely goods “having certain importance in conduct war” (Bern’s 5812, paragraph 3).
Furthermore, the Swiss have already recognized (paragraph 3, Bern’s 5610, September 5 [August 26]) that transit of goods other than war material but “having certain importance in conduct of war” should be limited to amounts conforming to the need and activities of the civilian population, though their claim to have made such a limitation is not supported by the facts.
Finally, Swiss must recognize rapidly changing circumstances of war in Italy, and apparently imminent German withdrawal, which dictates drastic change in their policy (see Bern’s 5610, August 26, paragraph 7, repeated to London as 1532).
We propose that Swiss be informed as follows:
- (A)
- Supply concessions offered them depend on immediate satisfactory compliance with all our demands.
- (B)
- We are willing to agree to continued shipments of consumption goods for strictly civilian use only: such shipments not to exceed, for each category, normal peacetime volume of transit reduced proportionately for Italian population now under Allied control.
- (C)
- Recent Swiss performance on transit traffic has created extremely bad impression in Allied Governments; Swiss have clearly allowed Germans to use Swiss neutrality to their advantage. This [Page 777] feeling can be mitigated only by immediate Swiss action to redress balance.
- (D)
- Swiss emphasis on danger of losing transit rights through Germany indicates that that consideration, rather than preservation of neutrality, is their real concern. Sweden stopped all transit traffic without incurring any penalty. Moreover, free transit through Germany will be less vital to Switzerland in view of opening of frontier by Allies, although Swiss should remember that the possibility transit across Allied territory will depend in large measure on Swiss action on this question.
In view of Bern’s familiarity with details of transit question, we suggest that drafting of memorandum be left to agreement by two Bern Legations. Please discuss above with MEW and Foreign Office and if you agree, inform Bern, cabling us accordingly.
Sent to London, repeated to Bern.26