740.00112 European War 1939/8755: Telegram

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

4181. For Department and BEW from Riefler.

1.
Monday37 when the Swiss Minister handed me the memorandum quoted in Embassy’s 4109 of June 21, I told him we would have to examine the exact meaning of the reductions named therein before any final answer could be made but on its face the memorandum looked promising. He said he wanted to give an answer to Bern as quickly as possible. I replied that I hoped it would be possible to give one by Monday June 28 by which time I hoped to have received instructions from Washington.
2.
The Swiss Minister said that the absence of any mention of credit in the memorandum or in his instructions might possibly mean that credit of some kind might have to be given Germany by the Swiss [Page 850] Government. However, no information one way or the other on this point had come to him.
3.
Leaving aside cattle and dairy products for the present, closer statistical examination of the remaining tariff numbers in the memorandum quoted in Embassy’s 4109 of June 21, indicates that the Swiss have substantially met our demands in so far as these particular tariff items are concerned. MEW and ourselves consequently are inclined to inform the Swiss that if they undertake as of July 1, 1943, to carry out the terms of the memorandum with respect to these particular tariff items namely: 811 to 813 arms and parts; 1083 explosives; 1084 small arms ammunition; 948a gasometers and certain other fine mechanical apparatus (including fuses); 733 to 756 precision instruments; 747 tools for watchmaking; 914h aircraft and parts; 937 astronomical, geodetical (sic) and mathematical apparatus; and if they will also undertake as of July 1, 1943, to apply the same formula to the following additional items: 809a1/a3 steel ball and roller bearings; MDY dynamo-electric machines; M6 machine tools of all kinds; M9 other machinery n.e.s.; 956a/f magnetos of all kinds; 935d/936d chronometers, repeaters, et cetera, and 954a radio equipment, we on our side will immediately reopen the blockade quotas which were closed in April (mostly food). The Swiss offer with respect to 948a, gasometers and fuses, will require clarification to make sure that the 20 per cent reduction applies to fuses separately.
4.
We would at the same time inform the Swiss that we would be pleased thereafter to resume the London discussions looking (a) towards a new war trade agreement and (b) towards a settlement on other outstanding economic warfare questions. For this purpose we would welcome the return of Dr. Sulzer and Dr. Keller to London. We are now engaged in preparing a list of the subjects which we would like to discuss with the Swiss delegates on their return and we would be prepared to send this list as soon as we had heard that the Swiss had given the undertaking referred to above.
5.
Please inform me before Monday June 28 if possible whether you agree and whether we may reply to the Swiss in this sense. [Riefler.]
Winant
  1. June 21.