840.50 Recovery/11–448: Telegram
The Acting Secretary of State to the Legation in Switzerland
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1502. Conversations here re Swiss participation ERP clearly show Swiss opposed enter into any form agreement with US. This position evidently stems from arguments advanced by members Swiss Parliament during recent debate adherence CEEC. Moreover, Swiss press during recent weeks has played up proposed US-Swiss bilateral to extent question has assumed position out of all proportion to its importance. We regret action Swiss press and consider that it could unfavorably affect ERP.
In consequence above developments ECA and Dept have informed Swiss Min Bruggmann that although US considers agreement desirable in order clearly to define relationship US and Switzerland to ERP, US will not press conclusion agreement if Swiss Govt considers undesirable. At same time, Swiss informed that in absence bilateral US not able define clear line action all cases which might develop between US and Switzerland under ERP. We also told Bruggmann US would be happy enter into negotiations looking toward conclusion bilateral whenever Swiss Govt so desires.
In order allay suspicions Swiss press and public and if you, Harriman, and Thorp agree, request you informally advise Swiss press in substance as follows:
Conversations re ERP have been going on for past few months between reps US and Switzerland. Conversations have clarified position each country re ERP and revealed strong Swiss objections to conclusion bil agr. Since Swiss not receiving financial assistance it has been agreed circumstances do not require signed agreement. US prepared undertake negotiation such agreement whenever Swiss Govt so desires.
We intend informally advise press here (especially Imhoof of Neue Zuercher Zeitung) simultaneously with your making info available Bern and accordingly will await your telegram as to timing.