740.00112 European War 1939/9–544: Telegram
The Secretary of State to the Ambassador in the United Kingdom (Winant)
7263. Department, FEA and British Embassy representative believe that decision taken in principle by Federal Council to give notice to German Government under escape clause of latest Swiss-German Agreement is not sufficiently effective (Bern’s 5856, September 5, 11 p.m. to Department, repeated to London, number unknown). The escape clause (see Bern’s 1352, August 1, 8 p.m. to London10) provides for a maximum period of 28 days for negotiation of a new agreement between the Swiss and Germans. The rapidity of military developments do not, we believe, justify our permitting Swiss exports to the Axis and transit traffic to remain at the present level for even 28 days or more. Moreover, instructions to CA and CS regarding stoppage and reductions in exports (in order that they might take the matter up at Mixed Commission) would bring whole discussion down to lower levels which would not impress the Swiss with the importance we attach to this matter. We therefore believe that formal démarche should be made at once along the lines of our immediately following telegram,11 which is a redraft of MEW’s Arfar no. 2052, September 2, to the British Embassy, Washington, repeated to British Legation at Bern. The redraft of paragraph 1 was agreed upon yesterday at a meeting attended by British Embassy, FEA, and Department representatives and reflects our thinking in Washington in light of Federal Council’s decision.
With reference to redraft should the Swiss inquire what economic assistance is considered of immediate benefit to the enemy, it is our thought that Ministers in Bern should inform the Swiss that the [Page 767] export of the following items constitute such assistance and represent our minimum demands:
(Following lists number of tariff item and description.)
- Group 1.
- 811/813 X arms and parts thereof; 1083/1084 X, small arms’ ammunition; 809a 1 X, ball and roller bearings and parts, of one kg. and over; 809 2X, ball and roller bearings and parts, of 250 gr. to one kg.; 809 3 X, ball and roller bearings and parts, of less than 250 gr.; 914h X, aeroplanes and parts; ex 948a X, fuses; 954a X, radio equipment.
- Group 4.
- 882e/h, steam and petrol locomotives; M5, gas and petrol driven motors; 914a/d, automobiles and tractors, chassis and parts; 954, telegraph and telephone apparatus.
- Group 5.
- M5, gas and petrol driven motors.
With regard to transit traffic the Ministers are authorized to inform the Swiss that our minimum present request is the cessation of all northward traffic and the cessation of southward traffic other than that necessary to preserve north Italian economy at a reasonable level.
The Federal Council has clearly rejected our total demands made in the informal démarche. A reiteration of total demands without giving authority to Ministers in Bern to inform the Swiss along the lines of the above paragraphs would, we feel, be a waste of time by raising the neutrality question and would receive a reply similar to that given to the informal démarche. On the other hand, the stepping down of our demands from 100 percent stoppage of exports and transit traffic might result in a more favorable reply and we would be asking for what is most important to us and what we feel the Swiss may be prepared to give. If this plan is adopted, our Ministers should make it clear to the Swiss that our minimum present demands are emphatic and that we desire an immediate reply.
If, however, you and the British consider it better tactics to make use of the phraseology used in paragraph 1 of Arfar’s no. 2052, September 2, and to withhold authorization from our Ministers at Bern to make known our minimum demands regarding exports and traffic to the Swiss, you are authorized to instruct Bern accordingly. We must insist, however, on the changes outlined in the new draft in paragraphs 2 and 3 of the Arfar telegram as we are not yet prepared to make the commitments outlined therein. A further telegram on this subject will follow shortly.
In presenting the note to the Swiss Foreign Office, it is believed that it would be very helpful if the American and British Ministers should emphasize Keller’s statement at a meeting during the recent London negotiations on or about August 4 that “in the event of a major development [Page 768] such as the total dislocation of the German economy, the Swiss would suspend all exports immediately, basing their action on the rebus sic stantibus principle” (paragraph 4, your 6285, August 5, 8 p.m. to Department.) The Ministers should also emphasize the reservation made by H.M.G. and the U.S.G. in a letter of August 14, 194412 to Professor Keller stating that, “with reference to our letter of today’s date, on the subject of the Anglo-American-Swiss Agreement of December 19, 1943, we wish to make it clear that in view of the rapidly changing military situation, we reserve the right to call upon the Swiss Government at any time from now onwards for further reductions, or complete embargo on certain or all Swiss exports to the Axis”.
Please discuss immediately with British authorities and report fully, repeating appropriate telegrams to Bern including the final text if agreed to in London.
Sent to London, repeated to Bern as Department’s 3095.