740.00112 European War 1939/8733: Telegram

The Ambassador in the United Kingdom ( Winant ) to the Secretary of State

4109. For Department and BEW from Riefler. The Swiss Minister called on Foot and me this afternoon to leave with each of us a copy of the following memorandum in response to the letters quoted in Embassy’s A–452 of June 10, 9 a.m.35

1. In response to Mr. Foot’s desire for additional data as to the nature of the Swiss proposals for a continuation of last year’s trade discussions, Monsieur Thurnheer is now in a position to give the following information.

2. In regard to dairy produce the Swiss Government would be prepared to suspend exports to all Axis countries under the following tariff items: Ex–19 milk powder, 91, 92, 98a–99c with the exception of exports in the small frontier traffic, through the International Red Cross Committee as well as gift parcels to Swiss citizens abroad.

In regard to cattle for breeding, exports under tariff items 137a, 138a, b, 139b, 140 and 142 could be limited to 5500 heads for 1943, of which not more than 3000 to Germany.

3. As regards machinery, the Swiss Government is prepared to reduce as from July 1, 1943, exports under the following tariff items to 80% of the weight exported in 1942 to Germany for each individual item:

811/813, 1083, 1084, 948a, 753/756, 747, 914h, 937.

Exports during the second half year of 1943 would be limited to 40% of the export weight in 1942.

[Page 849]

4. The Swiss Government would be prepared to introduce as per August 1, 1943, additional restrictions on exports of certain machinery under Group III. For these positions further clarification as well as discussions in London would seem to be required. This is based on the assumption that exports for goods which are of no war material will be largely facilitated.

5. Furthermore, the Swiss Government is prepared to introduce forthwith certain other export restrictions which had been discussed with the Ministry of Economic Warfare last year, for instance for textiles, provided that new imports will be granted for these industries. In this respect verbal discussions seem likewise necessary.

6. The Swiss Government is prepared to bring to a conclusion the finance agreement which had been prepared in the course of 1942 with the Treasury and the Bank of England.

7. The Swiss Government is prepared to offer additional supplies to the Allies in Switzerland within the framework of the compensation deal.

These proposals are considered as a sufficient basis for further discussions in view of a new trade agreement with corresponding blockade facilities.

Dated June 21, 1943.”

I told the Minister we would have to study the tariff items enumerated above before we could form an idea of their significance, but that we would do this immediately.

Comment will follow in separate telegram.36 [Riefler.]

Winant
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  2. Infra.