dodis.ch/46954

La Légation de Suisse à Londres au Ministère britannique des Affaires étrangères

1

I. Switzerland’s position in Europe is unique both from a geographical and economic point of view. Besides being the only highly industrialized country without any direct access to the sea, she is also the poorest in raw materials. A great part of her population depend for their livlihood upon the manufacturing of goods from raw materials imported from abroad, and on the exportation of the finished products. A considerable number of her inhabitants also depend upon the tourist traffic, which in the present circumstances is completely paralysed. If the country’s economic life is to be preserved it is therefore more necessary than ever to maintain the branches of industry connected with the aforementioned transformation of goods.

2. In spite of this, Switzerland is well aware of the fact that the outbreak of hostilities makes it necessary for her to accept certain restrictions. It is understandable that the belligerent countries who supply her with raw materials should ask her for some guarantee about the re-exportation of these goods, nor has she failed to take the necessary measures in this respect. These measures were brought to the knowledge of His Majesty’s Government on August 2nd and, on September 22nd, 1939 an Order was issued2 bringing imports, exports and the use to be made of imported goods under State control. An organisation to furnish the belligerent countries with the desired guarantees has already been formed. In contrast to the system which was in force during the years 1915 to 1918, this control to-day lies exclusively in the hands of the Federal Authorities, who are thus able to guarantee the strictest observance of such obligations as they may have undertaken in connection with the use to be made of such imported goods.

3. It ist necessary to make clear what undertakings might be requested and given in order to enable the Allies to attain the end, they have in view without forcing Switzerland to change her economic policy too drastically. In this connection it would appear that, in pursuance of the economic war aims set forth by the British and French Governments, undue importance is being attached to the commercial exchanges between Switzerland and Germany. Even in normal times Switzerland only contributed very modestly to Germany’s supply of goods of war interest, on account of her lack of raw materials. This is clearly shown by the figures given below, which are taken from the German commercial statistics:

[...]3

From (2) above the amount of Swiss imports into Germany can be seen in comparison with the total amount of German imports.

4. It can moreover be said, without risk of mis-statement, that the figures given for the year 1938 will probably shortly be reduced, for the following reasons:

Since 1934, German-Swiss exchanges have been subject to a Clearing system; the application of this system limits the amount of Swiss exports to Germany to the value of German imports into Switzerland. In consequence, goods which are not of Swiss origin are rigorously excluded from such exchanges. Moreover, part of the German imports into Switzerland go to make up the Clearing deficit, which still shows a debit balance of seventy million Swiss francs. Then again, Germany can hardly be expected to maintain the amount of her exports to Switzerland under the circumstances actually prevailing, which must automatically result in a further decrease in the amount of Swiss exports to the Reich. The inequality of the Clearing has made it necessary for Swiss exporters to wait a very long time before obtaining payment of their accounts, and the considerable amount of Swiss capital frozen in Germany, (over two milliard Swiss francs) does little to dispose Swiss firms to continue with their exporting to Germany.

5. When it is taken into consideration that part of the German imports into Switzerland has to be used for the tourist traffic and for the payment of interests on frozen credits, it becomes clear that only 50% of the benefit on German exports can be used to pay for Swiss exports to the Reich. The following figures go to substantiate this point. In point of fact, the value of Swiss imports of German origin amounted, during 1937, to four hundred and three million Swiss francs, and to three hundred and seventy-three million in 1938, whereas Swiss exports to Germany only amounted to two hundred million francs in 1937 and to two hundred and six million in 1938.

6. Lastly, the importation of certain products from Germany is of primary importance to Switzerland. Since it is impossible to pay for these goods in foreign currencies, Switzerland is obliged to export goods to Germany and, in view of Switzerland’s lack of raw materials, these goods must include some products manufactured from raw materials imported from other countries.

II. In these circumstances, and for the duration of the war, the Swiss Government, will base their economic policy on the following principles:

(a) Switzerland will in so far as is possible maintain her commercial exchanges with other countries in their present structure and extent. She cannot be a party to any general undertaking which would exclude the re-exportation of goods without taking into consideration the manufacturing processes to which such goods might have been submitted while in Switzerland.

(b) Switzerland claims the right to dispose freely of all her natural and agricultural resources.

(c) In so far as her exports to Germany are concerned, Switzerland will continue to apply the strict prescriptions which have been in force since the drawing up of the Clearing Agreement. These measures, in conjunction with the Export Prohibitions issued on September 4th, will render impossible any exportation to Germany of imported raw materials or of products manufactured in Switzerland from such imported raw materials as have not by this process undergone an essential transformation. Moreover, as a result of the Agreement of October 24th,4 1939, which Switzerland concluded with the Reich for the duration of the war5, it is to be expected that Swiss exports to Germany will only amount to approximately one half of the value of German imports into Switzerland.

(d) With regard to the use to be made of goods imported from Great Britain and France, Switzerland is prepared to give an undertaking on the lines indicated above; the Swiss Government would wish to enter forthwith into negotiations on this subject with His Majesty’s Government and the Government of France.

(e) The Swiss Government will themselves control the application of the regulations concerning the use to be made of imported goods, as set forth in the international agreements into which she may enter. The required legislative measures to this effect have already been taken.