Foreign Relations of the United States, 1951, National Security Affairs; Foreign Economic Policy, Volume I

460.509/6–2251: Telegram

The Secretary of State to the Legation in Switzerland ¹

secret
priority

Washington, June 22, 1951—7 p. m.

1772. 1) As stated Deptel 1759 June 21 rptd Paris 6970, London 6029,² Dept proposes send Del to Switz to hear Swiss positions re E–W trade and determine extent to which they will meet our desires. Expects that Del be headed by Harold Linder, Dept Asst Secy for Econ Aff, who wld probably be present only for initial talks; King for Emb Paris who wld head Del in later talks; Jacques³ from Paris if needed in tech discussions; Strauss as Rep Dept Commerce; Lyons⁴ from EUR Swiss desk; and an approp member Leg Staff. Request King confirm availability.

2) Swiss preference for bilateral rather than tri talks (Legtel 1678 June 16⁵ and statements June 15 by Swiss Leg to Dept)⁶ is acquiesced in by Dept. We assume Swiss, knowing from previous approaches and recent discussions that Trilateral approach being considered, will inform Brit and Fr Reps Bern that talks are projected at this time with US alone keeping UK and Fr informed. (Bern pls confirm this as we do not wish to appear to be by-passing UK and Fr.)

3) Plan Del wld be available for initial mtgs July 2 and 3 and that discussions wld fall into two stages: (a) initial gen examination of position as revealed by Swiss statement of intentions and by List I export statistics (which per reftel we hope cld be recd in advance of Del’s departure and certainly in time for concurrent examination here); and (b) resumption of negots week or so later when US in position to comment on Swiss situation. Leg Bern shld inform FonOff substance first three paras immed and follow-up to assure rapid reply.

4) FYI, break between (a) and (b) will be required in order permit US negots London and Paris with UK and Fr which Linder must also attend on other aspects Excon problem. During interval Strauss and Lyons wld remain Bern and coordinate with Leg in preparations for phase (b). Break shld make feasible King’s participation Bern talks as assume Moore of Emb London cld replace him in any conflicting later phases of Paris negots with UK and Fr or with CG/COCOM. Separate tel being sent Paris London on tri negots.

5) Objective of US negots must be obtain complete as possible de facto embargo List I exports backed by some acceptable form of assurance such goods will be denied SovBloc by Switz. Main subsidiary problem presumably will be (a) convincing Swiss of our need for official written assurances, even if informal, and our inability accept assurances based on possible effectiveness of voluntary private action and (b) substitution for Swiss concept of “normal trade” some other definitive and specific formula acceptable to Swiss which will have effect of de facto embargo to SovBloc of List I goods. De facto embargo wld of course allow for liquidation of outstanding prior commitments and solution of hardship cases on basis approx same as for COCOM countries. Presume our proposals re formulation of assurances, permissible exceptions, etc, wld be determined between phases (a) and (b) of negots by careful examination of trade payments and property agreements with SovBloc and of actual control possibilities of Apr 26 Swiss Excon legis and regs effective June 25 as reported Bern’s 1686 June 18 rptd Paris 200.⁷

6) Since reasonable ground exists for belief that desiderata para 5 will not be obtained by talk alone, Dept considering possible steps increase pressure induce Swiss action. Subsequent message will outline suggested forms of pressure seeking your comments thereon.

Acheson

1. Drafted by Ainsworth and Avery F. Peterson (Officer in Charge of Western European Economic Affairs); and cleared with Camp, Wright, George of Commerce, Moffatt of Defense, and Cox of ECA; repeated for action to Paris and London.
2. Not printed; it stated that the United States Government was prepared to send a delegation to Bern to examine with the Swiss Government the problems relating to the reduction of its trade in certain goods with Soviet bloc countries and it requested statistics on Swiss exports of certain strategic items to the Soviet bloc. (460.509/6–2151)
3. Sidney B. Jacques, attaché in the Embassy in France.
4. Daniel M. Lyons, international economist in the Office of Western European Affairs.
5. Not printed; it reported Swiss objections to tripartite talks since undesired publicity would inevitably result. (460.509/6–1651)
6. A memorandum of the conversation under reference is in Department of State file 450.6031/6–1551.
7. Not printed; it informed the Department of State that the Swiss Department of Public Economy would be authorized on June 25 to designate goods which cannot be exported without special permission as well as goods for which a certificate of Swiss export would be required. (454.006/6–1851)