1941: Switzerland

Switzerland's 650th year of independence was one of the most critical in its history. Germany and Italy, which encircled Switzerland and had already conquered most of the other small European neutrals, were able to regulate Swiss imports and exports to obtain whatever economic and political concessions they wanted. German Propaganda Minister Goebbels was reported to have remarked that it would not be necessary to attack the Swiss, because any desired advantages could be achieved more easily by stopping coal deliveries.

Foreign Trade.

Although diplomatic relations with Moscow had not been resumed since the Bolshevik attempt to overthrow the Swiss Government in 1918, a Swiss delegation went to Moscow early in January to negotiate a trade agreement. The resulting Swiss-Russian treaty enabled Switzerland to import from the U.S.S.R. such urgently-needed commodities as wheat, cotton and oil in return for machinery, electrical instruments and watches. Trade in both directions was to reach 115,000,000 Swiss francs (about $27,000,000) the first year and 150,000,000 the second. But the German invasion of Russia in June prevented fulfilment of this arrangement and made Switzerland more dependent on Germany than ever.

Conditions of trade with Germany were so severe that before the end of the year Switzerland was rationing its leading export commodities. As the Swiss had to rely more heavily on the Reich for shipments of coal, iron and petroleum, the Nazis demanded larger amounts of Swiss meat, cheese and other dairy products. The Swiss-German trade pact which expired June 30 was replaced on July 19 by one requiring even closer economic ties. Germany promised to increase monthly deliveries of coal to 200,000 tons, petroleum and its derivatives to 14,500 tons, iron to 13,500 tons for Swiss use and 6,500 for the manufacture of goods for Germany. The Reich also agreed to deliver some sugar, seeds, alcohol, poultry feed and artificial fertilizer, and to facilitate the export of Swiss products to certain other countries. Switzerland contracted to send cattle, fruits and dairy products to Germany, and gave Germany the privilege of buying merchandise 'according to its choice and within certain limits.' At the same time it was announced that the clearing balance — normally 50,000,000 Swiss francs — might be enlarged to 400,000,000. The British Government expressed its reaction to the pact by decreasing the navicerts issued to the Swiss.

Economic Adjustments.

As the war curtailed European agricultural and industrial production, it became increasingly apparent that Switzerland could no longer depend on foreign countries for delivery of food and other vital supplies. Complete self-sufficiency was impossible because of the country's mineral deficiency, but the Swiss tried desperately to become agriculturally self-sufficient. A decree published on Feb. 10 empowered the Government to forbid farm workers to leave the land, to force unemployed persons to work on farms, and to transfer workers from nonessential industries to agriculture. The Government also provided that the area cultivated in the spring of 1941 should be 123,000 acres larger than in previous seasons, and that each farm should produce all of its own potatoes and bread grains. To obtain as many supplies as possible from foreign countries, the Government on April 9 authorized the operation of seagoing merchant ships under the Swiss flag, with Basel on the Rhine as their home port. A commercial agreement with Spain on April 27 enabled Switzerland to charter 200 old Spanish railroad cars for the transportation of freight between Lisbon and Switzerland. Large trucks also were employed for transporting food from foreign countries. In spite of these measures, however, the food situation in Switzerland grew more serious and rations had to be drastically cut by the end of the year.

Foreign Policy.

Switzerland was drawn more deeply into the German orbit as the year went on. In the spring President Ernst Wetter declared, 'We Swiss are ready to participate in a closer economic collaboration in Europe.' But Germany refused to accept economic collaboration without expecting the Swiss to give up a measure of their neutrality. When the Swiss Government announced on Jan. 15 that it would free all interned French soldiers, it stated that their equipment would be sent to Germany. On March 10 the Tribune de Genève published an interview with German Propaganda Minister Goebbels in which he declared, 'I am personally convinced that Swiss internal conditions will in due time be adjusted to those of the rest of Europe, and that Switzerland herself will take the initiative.'

Switzerland's relations with Great Britain became more strained with each flight of British bombers over Swiss territory to bomb Italy. As Switzerland yielded to German demands, the Allies abandoned their inhibitions with regard to violating Swiss air space. Swiss anti-aircraft guns frequently shot at British planes, and occasionally bombs were dropped, killing Swiss citizens and damaging property. Diplomatic relations with Britain, however, were maintained intact throughout the year.

The expense of keeping the army of 500,000 men mobilized was a considerable economic drain on the country and intensified the shortage of labor for agricultural production. By the middle of August, World War II had already cost Switzerland 800,000,000 francs more than World War I.