460.549/7–1751: Telegram
The Secretary of State to the Embassy in France 1
niact
priority
439. Excon for Linder. Re urtel 360, July 17.2 Dept believes difficult justify to other agencies policy with respect to licensing List items to Swiss which is more lenient than that now applied COCOM countries with respect I–A items. We believe furthest we shld reasonably go in modifying licensing policy re Swiss is to license freely items they embargo and to treat Internatl List I items for which Swiss have estab quotas on same basis as that now accorded I–A’s for COCOM countries, i.e., if when asked for assurances country can make justifiable case for continued shipment, granting or denial of licenses will be considered in light all facts.
However we feel you shld continue urge complete embargo Internatl List I items and that argument to Swiss for embargo must be necessity for denial these items to Bloc in their own security interests. Although we recognize that withholding licenses has probably had effect on Swiss willingness to coop, resort to sanction of license denials has also opened way for Swiss proposals such as those they have put forward, suggesting in effect “deal” i.e., Swiss action on embargo certain items in return for US action on licensing other items. We do not believe we shld even discus this type “deal” with Swiss but continue to maintain that no action short of complete embargo on List I, with exceptions for hardship and prior commitment as agreed COCOM, is adequate on security grounds.
Dept has not yet discussed suggestion para 1 with other agencies. We believe it wld constitute reasonable treatment for Swiss if final [Page 1155] Swiss action is along lines indicated Bern’s recent tels but as indicated above we do not believe US licensing procedure shld be directly tied in to negotiations as quid pro quo for Swiss action.