854.6231/261: Telegram

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

2220. Dr. Sulzer told me and my British colleague1 this afternoon on behalf of Federal Councilor Stampfli2 that the Germans had now undertaken to fulfill their obligations with respect to coal deliveries (of which they are in arrears of 1,000,000 tons) under the terms of the Swiss-German commercial agreement of July 1941.3 The Swiss had therefore no choice but to fulfill their obligations and consequently the Germans would deliver 150,000 tons of coal monthly from today until arrears have been filled, while the Swiss would guarantee exports contracted for prior to January 16, 1943, up to a total value of 350,000,000 Swiss francs, the unused balance of the original 850,000,000 credit in the clearing granted by Switzerland (see sixth paragraph of my 448, January 20—57 to London—and my 1481, March 4—191 to London4). Sulzer regretted that investigation showed that instead of the reduction in undesirable exports recently indicated there would be undoubtedly a substantial increase in such exports until orders placed prior to January 16, 1943, had been delivered. We both expressed the opinion that this would undoubtedly prove most disappointing to our respective Governments.

Sulzer also said Hotz will leave for Berlin with a delegation next Monday to negotiate a new agreement in which it will be his main efforts to reduce undesirable exports, maintain deliveries of coal, fertilizers, seed potatoes and Geleitscheine as well as establish an air service [development?]. Hotz will furnish additional information tomorrow. The Swiss Minister in London has been advised.

Reporting further.

Repeated to London.

Harrison
  1. Clifford John Norton.
  2. Walter Stampfli, head of the Swiss Department of Public Economy.
  3. Concerning this agreement, see W. N. Medlicott, The Economic Blockade, vol. i, in the British civil series History of the Second World War (London, His Majesty’s Stationery Office, 1952), pp. 587–588.
  4. Neither pointed.