740.00112 European War 1939/8318: Telegram

The Secretary of State to the Minister in Switzerland (Harrison)

1089. Reference your 2645, April 29, and 2722, April [May] 3.19 While latter telegram seems more optimistic respecting forthcoming Swiss-German negotiations, it is still the firm conviction here that a general warning is inadequate to meet the situation. The note contained in Department’s 978 of April 26 [27], however, has been re-studied in the light of your telegram, and it is believed that the revised phraseology which follows, will to a large extent meet your suggestions:

“The Government of the United States appreciates the frankness shown by the Swiss Government as to its intentions with reference to the negotiations now taking place between the Swiss and German Governments. The Government of the United States must express, however, in most explicit terms, its profound concern over the course of action which the Swiss Government has apparently taken in liquidating the 1941 agreement which, when coupled with the negotiations of a new agreement, will have the result of increasing rather than reducing the amount of undesirable exports to Germany. It will be recalled that during recent months the representatives of the United States and British Governments have called to the attention of the Swiss Government their unwillingness to assist, by facilitating imports into Switzerland, the economic contribution made by Switzerland to the Axis. During the recent negotiations which have taken place in London the Swiss representatives have indicated their willingness to consider the establishment of a formula which would result in an effective reduction in exports from Switzerland to the Axis of arms, munitions, and machinery. It now appears, however, that the Swiss Government as a result of the liquidation of the 1941 agreement and the negotiations for a new agreement will permit a situation to be created whereby there is every reason to expect that there will be a substantial rise in exports of undesirable items from Switzerland to Germany. The Government of the United States finds itself constrained to express its great concern over this situation. Moreover it finds it difficult to understand how such action, which will tend directly to strengthen the military potential of the Axis and thereby prolong the war, can be regarded as consistent with the interests of Switzerland. Consequently, the Government of the United States is forced to inform the Swiss Government that it is compelled reluctantly to reconsider its attitude with respect to facilities for imports to Switzerland pending a satisfactory clarification of the Swiss trade policy toward Germany.”

The presentation of the note is being held up pending the outcome of conference between Swiss Minister in London with British Foreign Secretary which may change the situation. Department will wire you further if suggested course of action is changed.

Hull
  1. Latter not printed.