854.24/107: Telegram
The Secretary of State to the Ambassador in the United Kingdom ( Winant )
2842. From Stone,6 Board of Economic Warfare. Reference Bern’s 2273, April 10,7 repeated to London and MEW8 telegram to British Embassy, April 24. With regard to Swiss Army’s request for oats, Department, BEW and the British Embassy agree that we should keep this transaction within the framework of the Compensation Deal and that no special concession should be made at this moment except insofar as the Swiss are now entitled to oats under Compensation Deal and subject to the conditions therein stated.
Therefore, it is suggested that we make it clear to Swiss Army authorities that we would allow the export of 2,000 tons of oats from the Argentine for shipment at the end of May, a shipment to which the Swiss are entitled under the Compensation Deal and for which they have requested the approval of BEW. Subject to your satisfaction that sufficient Geleitscheine have been granted to permit the Swiss to qualify for this amount, above approval is given. We would allow further shipments up to eight to ten thousand tons in all under the Compensation Deal as further Geleitscheine become available.
Army authorities, however, should be told that we would be prepared to allow an immediate export of oats above the 2,000 tons as an advance against future Geleitscheine if we could be satisfactorily assured as to the Swiss attitude in Berlin negotiations.
[Page 904]If the Swiss felt that they would like to have the iron and steel under the present Compensation arrangement in addition to the oats, and if we were able to come to a satisfactory agreement on additional exports from Switzerland in return, Riefler also suggests that we might consider taking this occasion to introduce the idea of expanding the Compensation Deal to cover oats above 2,000 tons. [Stone.]