740.00112 European War 1939/7770: Telegram
The Minister in Switzerland ( Harrison ) to the Secretary of State
[Received 12:45 p.m.]
805. In sequence to Legation’s 799 (101 to London) February 3. At this Mixed Commission meeting the Swiss raised the following points with regard to compensation agreement:3 They are aware of the importance of ordering raw materials under this agreement and will telegraph Washington and London with reference thereto immediately. They outlined their position as follows: They can arrange for prompt shipment of 1,097,000 francs worth of oats they have already purchased in Buenos Aires, toluol, rubber and copper which are Swiss-owned but of which only the copper has been requisitioned by the United States authorities and has not yet been paid for by the latter. The only item of the priority products which the Swiss do not now own is the seven tons of nickel which they value at 42,000 francs but for which they are placing an order at once.
The Swiss expressed the hope that we would accelerate our orders under the compensation agreement in view of the uncertainty as to the German reactions following breakdown in their negotiations. They expressed fear that under present conditions the Germans would not grant facilities for more than the provisionally accorded onefourth of the Berlin protocol figures (see Legation’s 999 [9] to London, January 64).
They stated that they are convinced that the items not utilized in part or in whole could not be carried forward nor could their value be transferred to other items. On the basis of this supposition, the Swiss have calculated that we and the British will be able to receive about [Page 826] 833,000 francs worth of products as against the compensation figure of 2,500,000 francs. The Swiss asked that this situation be brought again to the attention of Washington and London because if our combined original requirements should not be available now in their entirety they consider that Washington and London might wish to place orders for those goods for which the Germans have granted quotas but for which neither the British nor ourselves have so far shown any interest as they were not included in the proposed purchases under the compensation agreement (see items 753, 754, and 6; other than special types; [apparent omission], 928/936).
Repeated to London.
- For exchange of letters which constituted the compensation agreement, see telegram No. 7117, December 15, 1942, from the Ambassador in the United Kingdom, Foreign Relations, 1942, vol. iii, p. 401.↩
- Sent to the Department. as telegram No. 99, not printed.↩