840.50 Recovery/8–648: Telegram
The Secretary of State to the Legation in Switzerland
1127. Legtel 1024 Aug 6.1 Dept is of course cognizant substance talks held between Thorp and Swiss Min Bruggman re ERP Agreement. These were preliminary nature and did not touch upon actual substance of bilateral. We are opinion that successful conclusion exchange of notes between US and Switzerland is dependent upon realization by Swiss Govt that proposed substance notes and those sections Public Law 472 dealing with content of bilateral both in large measure parallel undertakings Swiss agreed, in both CEEC report Sept 1947 and April 1948 convention, to be necessary for success joint recovery program. If Swiss appreciate this approach on part US and consider substance of bilateral in light of participation in European recovery and are actually in earnest in their adherence to OEEC there should be little difficulty in effecting mutually agreeable exchange of notes.
[Page 475]On other hand if Swiss maintain apparent desire to be treated as if they were not full participant in ERP and insist upon special treatment for Switzerland not based upon full cooperation with other participating countries in joint program, possibilities obtaining mutually satisfactory bilateral agreement in form exchange of notes border on remote since we will be negotiating from quite different premises.
So far as we are aware Swiss Legation representatives here have never been authorized discuss substance master bilateral agreement. Although we attempted to impress upon them at all times that agreement must be based on provisions Public Law 472 which envisages joint program they have continuously asked for separate reassurances on various questions and problems which fall outside authority of Administrator as defined in Public Law 472.
Insofar as Dept concerned negotiation mutually satisfactory exchange of notes can proceed soon as Swiss Govt instructs Leg discuss substance those provisions of bilateral based on ECA of 1948 which are applicable to Switzerland and which other participating countries have accepted. You may at your discretion communicate substance above Swiss Govt.
- Not printed.↩