611.5431/267: Telegram (part air)
The Minister in Switzerland (Wilson) to the Secretary of State
[Received November 27—6:30 a.m.]
48. Your 77, November 20, 8 p.m. I have had a long talk with Stucki and shall restrict this message to points not previously reported.
Stucki said that he has spent the last few days in frequent conferences with members of the watch, embroidery, cheese, and other industries in Switzerland as well as in discussions with the Swiss watch expert just returned from Washington. He points out that the concessions proposed by the United States offer small scope for development of Swiss industry; that they figure that the total increase that can be expected would be about one million francs whereas the concessions that they offer on wheat, fruit, automobiles, et cetera, should give the United States an increase of 10 or 20 times that value. Nevertheless, Stucki says that he and his associates came to the conclusion that at least there is some advantage in what we offer; that the alternative of not making an agreement is to risk curtailment of American-Swiss [Page 773] trade bit by bit until it is reduced to nothing; that in the present situation of sanctions against Italy they should risk no further curtailment; that there is always present the hope that as your trade policy prevails more advantageous negotiations may be practicable in the future.
Stucki has therefore mailed on the 21st instant detailed instructions to Peter to the effect that Switzerland can make an agreement on the basis proposed under certain conditions. These conditions Stucki said were of three kinds, (1) concessions which Peter is to ask for but on which he is not to insist if they are refused, (2) concessions which he is to demand and which if refused should be compensated for elsewhere, (3) the sine qua non concessions.
Under (3) Stucki listed three articles, (a) certain details in respect to watches, (b) respecting embroidery, (c) processed cheese.
[Here follow technical details regarding Swiss proposals as to American tariff concessions regarding items (a), (b), and (c).]