460.509/7–451: Telegram
The Minister in Switzerland (Patterson) to the Secretary of State
priority
21. At Wednesday mtg Hotz1 stated that further review of items on original IL I led Swiss to conclude that such exports wld not exceed 15 percent of combined IL I plus tri list exports. Bulk of IL I items wld be in machine tool category. Suggested not necessary make industry inquiry. Proposed extend same quota principle to IL I which was proposed on tri items, and in addition, put all machine tool exports regardless of list on a 1949/50 quota basis. Basically, Hotz failed suggest any concessions and insisted on previous rationale. He pointed out that if US insisted on detailed inquiry they wld make it but only if we accepted quota concept based on 1949–50 as normal.
Linder replied US unable accept 1949–50 base and reiterated US insistence for full information before proceeding. He said we wld be glad seek practical solution to problem; but that we cld not operate under principles different from those applied to other friendly countries. [Page 1139] In principle US opposed all IL I shipments, but some exceptions might be made for prior commitments and hardships. Although ultimately problem must be settled as whole, US must insist on item by item analysis as basis or solution along practical lines. Therefore we need all facts and cannot be satisfied with statement of gen magnitude. We wld insist full embargo on AEC items and imported materials.
King explained COCOM procedures on hardship and prior commitment in reply to Swiss false notion re handling of these issues by COCOM countries. Schaffner asked US release licenses for items not mfgd in Switz as basis prove Swiss people that good results possible from talks. Linder said not possible and Strauss added that licenses being held now because not clear items not made in Switz and guarantees given to date not sufficient. This one more reason for requiring full info on all IL I items. Hotz finally proposed that Swiss wld agree get statistics quickly as possible if US wld permit some members deleg remain and work on items on which statistics had been already submitted. Linder agreed this proposal urging greatest haste.
Lyons and Strauss remaining Bern for technical discussions determine basis Swiss statistics, nature prior commitments, study items which might be eliminated without high-level discussions. Clearly understood however that Linder will return only after technical details cleared up.
Rptd info London 12, Paris 9, Stockholm 5.
- Jean Hotz, Director of the Trade Section of the Swiss Department of Public Economy.↩