740.00112 European War 1939/10–944: Telegram
The Secretary of State to the Ambassador in the United Kingdom (Winant)
8503. London’s 8508, October 9, 8 p.m.27 Our general position is as follows:
While we greatly appreciate the extent to which the Swiss have already gone to meet our wishes and would not be averse to expressing this appreciation either in words or by some gesture of good will, we believe we should, for the present, stand firm upon our minimum demands before giving the raw materials.
Subject to position stated above, we agree in principle with the British point of view expressed in MEW telegram 2349, October 9.28 Comments on numbered paragraphs follow:
- 2.
- We agree that previous offer should be renewed for a very short time.
- 3.
- As to export of shunting engines, the subject has been spotlighted here to such an extent that it is unlikely that military clearance could be obtained and therefore we could not agree to withdrawal of demand on this point. For your confidential information, eventually, if our trading position requires, we may be prepared not to insist on the other Swiss departures from our demands on exports.
- 4.
- It is not clear that the British understood our proposal regarding a formula for transit traffic, which was to agree to “continued shipments of consumption goods for civilian use only”. We intended [Page 778] thereby to exclude industrial products including those enumerated in our 3473, October 10, noon to Bern, which was repeated to you as 8423, October 12.30 Moreover, the reduction to normal (1938) levels should be further reduced to take account of proportion of Italian population under Allied control. Existing prohibitions will, of course, be maintained together with additional prohibitions under proposed formula. We agree that volume of traffic may advantageously be fixed for each route separately. Formula should be left to discretion of Ministers at Bern.
- 5.
- Swiss agreement to termination of Compensation Agreement did not constitute a concession since Compensation Agreement became valueless when Allied forces reached Swiss frontier and geleitscheine lost all value. We believe Swiss should be reminded that as soon as they meet us on transit and give reasonable assurances regarding restrictions on the export of textiles, we are prepared to authorize the on-carriage to Switzerland.
- 6.
- We are not averse, in principle, to this suggestion but believe that it would be better strategy to tell the Swiss that we are prepared immediately to grant export facilities as soon as the Swiss meet our objectives of which transit is now the most important. If Swiss take immediate action as requested, the immediate granting of export licenses would actually result in their receiving exports more quickly than by permitting on-shipment to Lisbon. However, the alternative, in so far as one quarter’s stocks are concerned, may be offered to the Swiss. While we are on this subject it might be well to remember that all Swiss stocks here are of course subject to requisition and that in view of increasing demands for the liberated areas the Swiss must reckon with this as a real possibility.
We are not averse to some gesture of good will toward the Swiss to “sweeten the atmosphere” but believe that for the moment our best strategy is to remain firm until we hear from Swiss on transit.
If British agree, request them to instruct their Minister at Bern to join Harrison in approaching Swiss along lines of Department’s 8178, October 6, 6 p.m. and subsequent telegrams.
Sent to London, repeated to Bern.