Switzerland became increasingly involved during 1939 in the diplomatic crisis and outbreak of war. On Jan. 27 the Federal Government made representations in Berlin regarding articles in the German press about Swiss neutrality, and secured a denial from the Foreign Office that these attacks represented official opinion. In April the Government reaffirmed its policy of neutrality in European affairs, and replied to Germany that it was not consulted by President Roosevelt with respect to the peace message which he addressed to Hitler. The Federal Government issued a formal statement on July 7 proclaiming its neutrality as guaranteed by the Great Powers, and on Aug. 23 it declined to join the 'Oslo' group in their conference at Brussels. The Government decided on Feb. 14 to recognize General Franco's régime in Spain, but refused during the summer to resume diplomatic relations with the Soviet Union, while indicating its desire to improve its trade with Russia. Switzerland's relations with Italy remained friendly, although in February the Government protested to Rome concerning the expulsion of three Swiss journalists, and in July over the expulsion of Swiss residents of Alto Adige.
When the European War began, Switzerland continued its efforts to safeguard its traditional neutrality. On Aug. 23, the Post Office seized numerous letters from Commander King-Hall in London to German citizens, on the ground that these messages constituted foreign propaganda. Early in September the Federal Council placed all news agencies under governmental control. During the opening weeks of the war, the Government protested to Germany that its bombing planes on several occasions had flown over Swiss territory. The Government, meanwhile, continued to deal with the difficult problem of refugees, and on Oct. 3 granted permission to former President Moscicki of Poland to visit Switzerland. (See RELIGION: Jews.)
While European relations grew more strained during 1939, Switzerland moved away from political extremes of both Left and Right. A few remnants of the Nazi groups which were banned in 1938 reappeared under new names, but one small party was broken up and its leaders were arrested. Even in Zurich, Fascism virtually disappeared and the party offered no candidates in the November elections. At the same time, the two Communist members of the National Assembly, elected in 1935, were not returned to office. On Dec. 14, Marcel Pilet-Golaz, head of the Department of Posts and Railways, was elected President for one year, succeeding Philippe Etter. The Socialists protested unavailingly that they had received no seats on the Federal Council, despite their large membership in the Assembly.
Like other small European countries, Switzerland was compelled to increase its defenses throughout 1939. Early in February the Government adopted a longer training period for the army, and expanded its military program. Following Germany's occupation of Prague in March, the Government took precautionary measures along the frontier and extended the age limit for military service from 48 to 60. On June 4 a Federal referendum accepted, by a vote of 443,960 to 198,598, a law providing approximately 400,000,000 francs for defense and public works. During the first weeks of the war, Switzerland established compulsory service for all civilians, in order to replace men called to the front, and granted General Henri Guison power to call men to the colors without prior authorization by the Government.
Although the first half of 1939 brought considerable improvement in Switzerland's national economy, the war severely curtailed the foreign investment, commerce, and tourist trade which are vital to the country. On the outbreak of hostilities, the Government fixed wholesale and retail prices, rents, gas and electric charges, hotel and other rates. The Government regulated the sale of coal and coke, and it first prohibited and later rationed the sale of the following commodities: sugar, rice, peas, products of oats and barley, edible fats and oils, and flour. Switzerland's foreign trade improved, however, somewhat toward the end of the year, after its exports had fallen 54 per cent and its imports 34 per cent between August and September.
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