Office of the Historian

File No. 654.119/571

The Ambassador in France ( Sharp) to the Secretary of State

[Telegram]
Paris, October 13, 1918, noon.
[Received October 16, 6.33 p.m.]

5438. War Trade Board [from McFadden]:

No. 506. As a result of joint discussion between the Blockade, Dresel, and ourselves it was suggested, in view of political and military situation with possibilities of peace by 1st January, that under the circumstances it might be advisable to—

(1)
Postpone for the present the preparation of programme and negotiations in connection with the new Swiss agreement, as, in the event of peace, the compensations or commercial concessions which would be required of the Swiss, in consideration of the contingent which, under any circumstances, will be required by Switzerland, would be of quite a different character than those required in the event of war continuing; for example, in the event of peace,—
(a)
The French, British and possibly ourselves will desire to make a reciprocal and preferential trade agreement with Switzerland;
(b)
Restrictions as regards trade between Switzerland and enemy countries where commodities, raw materials or manufactured articles made therefrom originated in the countries of the Associated Governments;
(c)
Concessions as regards the use of German railways or water routes, especially the Rhine route, so far as concerns shipment of materials to and from Switzerland [for] Associated Governments;
(d)
Various other questions or concessions which will develop in the course of the next few months and which you may wish to consider in preparation of the new agreement.
(2)
It is thought an arrangement can be made with the Swiss Government by which existing French-American-Swiss and French agreements may be extended until 31st December 1918, the contingent, etc., required by Switzerland being regulated and based on the monthly quantities allocated under the old agreement. In this connection we would point out that lumber and agricultural agreements will not expire until 31st December 1918 and the British agreement not until 30th January 1919, and the Blockade think under any circumstances [Page 1655] it would be better for the new agreement to date as of 1st January 1919. Furthermore the C. I. C. [Inter-Allied Committee on Contingents] Statistical Bureau is based on quarterly periods, the first period beginning the 1st January of each year, and it would simplify the preparation of statistics and regulation of contingent if the agreement was made [as] of 1st January. Please advise your views.

Sharp