Foreign Relations of the United States: Diplomatic Papers, 1944, Europe, Volume IV

740.00112 European War 1939/9–2944: Telegram

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

Bern, September 29, 1944—4 p.m.
[Received September 30—9:22 a.m.]

6491. There is given below text of note handed to me on evening of September 28 by Mr. Pilet. (My 6467—London 1807, September 28.¹⁹) Mr. Pilet stated that this note represents Swiss reply to that part of note and aide-mémoire I handed him on September 18 (Legation’s 6206, London 1734, September 19) concerning exports to Axis territory. He stated aide-mémoire transmitted to me on September 27²⁰ concerning transit traffic constituted Swiss reply to our demands on this point; Swiss reply on transit traffic question transmitted in separate telegram.

Text of Swiss note of September 28 is as follows:

“The Federal Political Department refers to the note and aide-mémoire transmitted by His Excellency Mr. Leland Harrison on September 18, 1944.

In order to confirm and define the first oral indications given on September 23, Political Department has the honor to make known to the Legation of the United States of America the following:

[I] A. As of October 1, 1944, export of goods under the following positions of the Swiss customs tariff is prohibited: 811/13 arms and parts thereof; 1082/84 explosives and ammunition; 809A1/A3 ball and roller bearings and parts; 914 H aeroplanes and parts; EX 954 A radio apparatus and parts except finished radio receiving sets destined for civilian use; 954 telegraph and telephone apparatus and parts.

B. In conformity with the obligations incumbent upon Switzerland as a neutral state under the terms of article IX of the Hague Convention of October 18, 1907,²¹ concerning the rights and duties of neutral powers and persons in case of war on land, the prohibition of export of goods cited under I A will affect all belligerent states.

C. Export to Axis countries of steam and petrol driven locomotives under tariff rubric 883 A will also be prohibited. However, the Swiss Government considers that the special single quota of 1,651,000 francs export to Germany of 13 shunting engines granted to Switzerland according to Annex I of the arrangements of August 14, 1944 remains in force.

D. In order to maintain the balance of clearing in economic relations between Switzerland and Germany, the Swiss Government envisages still other modifications in the compensation traffic with that country which modifications because of the effect that new transfer quotas bearing guarantee of the license will not be fixed until further notice. Among other consequences the order resulted in a considerable decrease in exports of goods under the tariff positions mentioned in aide-mémoire of September 18, 1944 and which positions are not listed under IA above.

II A. The Swiss Government takes note of the statement that the Government of the United States is ready to assure until the year 1944 importation into Switzerland of the goods cited under Annex II to the agreement of December 19, 1943.

B. Under the terms of the >aide-mémoire accompanying the note of September 18, 1944, the Government of the United States and his Majesty’s Government declare that they are prepared to permit shipment to Switzerland of Swiss stocks at present in storage in the United States. Basing itself on this declaration, the Swiss Government desires to express the firm hope that in relation to the new export prohibitions which it is going to decree the two Governments will take into account imports which it desires to effect as set forth in the attached list.

The Swiss Government assumes that the two lists of merchandise communicated on April 20, 1944 and referred to in paragraph 2 of the aide-mémoire of September 18th are cited merely as examples and that the sense of the offer of the two Governments is to liberate the stocks of Swiss goods existing overseas. The attached lists asking about importations which it desires to effect also include therefore merchandise which without being included in one of the lists submitted on April 20, 1944 to London were either previously communicated (skins and hides 400) or which has not yet been communicated. In any case only merchandise of Swiss ownership greatly reduced by the requisitions enforced [apparent omission] years is involved.

C. The Swiss Government regrets that the Government of the United States and the Government of His Majesty have considered it necessary to abstain for the moment from including in the aide-mémoire of September 18, 1944, importation of Swiss army stocks of mineral oil. In the course of negotiations in London, Swiss delegation already had occasion to present seriousness in the supply situation of mineral oil and derivatives of coal and mineral oil which addition of have been assured to Switzerland by importations of Axis origin.

D. The Swiss Government declares that the raw materials or half-finished products which will be brought into Switzerland in consequence of present exchange of notes will not be utilized for reexportation to Axis countries. This declaration applies equally to the 3000 tons of cotton and the 1000 tons of washed wool the shipment of which to Lisbon was authorized August 14, 1944 at London; the Swiss Government expresses the hope that there is no further obstacle to the entrance of this merchandise into Switzerland.

E. In view of the prohibitions of exports described under paragraph I and aside from the Swiss stocks existing overseas, the Swiss Government considers as understood that acceptance will be given to the Swiss import demands presented in the course of the negotiations at London in 1944. It is ready to enter upon new negotiations on this subject with the Government of the United States and with the Government of His Britannic Majesty.

III. The Swiss Government is ready to negotiate with the Government of the United States of America and the Government of His Britannic Majesty concerning the questions raised under paragraph 3 of the note of September 18, 1944 relative to the participation of Switzerland in the work of reconstruction.

IV. The Swiss Government desires as soon as possible clarification as to what extent the terms of the agreements of April 24, 1940 and of December 19, 1943 between Switzerland and the Allied Governments apply to the liberated countries. It firmly counts on the raising of the restrictions on Swiss exports to these countries imposed until now as a result of the blockade.”

With regard to paragraph I B of his note Mr. Pilet stated that an unpublished decree will be sent today to appropriate Swiss controls to permit export of material listed I A to neutral countries in quantities not exceeding volume of recent exports to those countries.

As regards I D Mr. Pilet stated that amount of German credit in the clearing would depend in future upon German deliveries and as the latter might now be expected to diminish progressively the result would be a diminution in Swiss exports to Germany.

As regards IV Mr. Pilet mentioned particularly France.

Department will note that under 954 A exports of finished “civilian” radio receivers will continue to be exported; what proportion of Swiss radio exports are civilian as opposed to military is unknown and definition of “civilian” also uncertain.

Assumption made by Swiss in section II B of note that our offer regarding release of stocks applied to all Swiss stocks overseas is not justified by any statement in texts of note and aide-mémoire delivered September 18 nor by any oral statement made by me.

British’s 3813 and 3814 to MEW September 29 give details of stocks and Swiss estimate of requirements of one quarter referred to in above note. London please repeat by airgram to Department.

Repeated to London 1808.

Harrison

19. Not printed.
20. For summary of September 27 memorandum, see telegram 6546, October 1, 2 p.m., from Bern, infra.
21. For text of Convention V regarding rights and duties of neutral powers, see Foreign Relations, 1907, pt. ii, p. 1216.