File No. 654.119/571
The Secretary of State to the Ambassador in France ( Sharp)
6025. For McFadden [from War Trade Board]:
No. 397. Your 506, Embassy 5438, October 13, noon. We are strongly of the opinion that it would be most unwise to take any action in respect to Swiss negotiations which would create in the Swiss mind the opinion that we thought peace to be imminent. Such an impression if created in Switzerland would at once be communicated to Germany and might produce most unfortunate consequences. We believe that our attitude towards Switzerland should be such as to create the impression that we fully believe the war may still continue indefinitely. We consequently feel that there should be no interruption in the present preparation of a program for use in the Swiss negotiations.
In the event of a cessation of hostilities and subsequent opening of peace negotiations, there will still be ample opportunity to conclude, if it seems desirable, a new agreement which will take into account the probable peace situation. Switzerland’s dependence upon the Associated Governments will not terminate with the conclusion of the war, and even after peace, she will desire special concessions, upon the granting of which suitable conditions may be imposed. We say the foregoing without intending, however, to commit ourselves in [Page 1656] any way to a policy of preferential postwar economic agreements, or to the particular provisions which your cable suggests might be regarded as desirable.
With reference to the date when the new agreement shall become operative, we are disposed to agree to January 1, feeling that however actively the negotiations are pushed they can hardly be concluded so as to make the agreement effective before this date.