1942: Switzerland

In 1942, Switzerland's policies were designed for Switzerland, but they served the world. Her continued neutrality was beyond price. Her services to the well-being of the war-wrecked on both sides preserved something fine. As Germany occupied all of France, Switzerland's uniqueness increased; and with the weakening of Italy, a possible channel for a second front, her troubles grew.

Germany's pressure upon her increased with the months. In late 1941, the Reich was reported about to demand that Switzerland expel British nationals (in retaliation for the expulsion of Axis nationals from Syria, Iraq and Iran). They actually forced a blackout on the Swiss to avoid their guiding Allied planes. In January 1942, Goebbels attacked the Swiss for their 'lack of appreciation' for their nation's security, and tried to rally them against Bolshevism. Claiming that the country was out of line with the 'New Europe,' Germany bludgeoned Swiss firms, resorted to bribery especially with the press. In January 1942 it was reported from Stockholm that a Nazi recruiting camp in Switzerland had caused 2,000 German-born men and youths of German parentage to enlist with Germany from the Zurich section alone, though many had Swiss mothers; the enlistees feared that their refusal would result in harm to their families. It was further reported that boys of fourteen or over of German parentage were ordered to register.

In May 1942, Germany was reported to have demanded seventy-five locomotives from Switzerland, threatening to cut off supplies of coal if denied them. All exports are under German control, and in turn Switzerland must get her coal from Germany, her iron, steel and oil with Axis permission. By 1942, Switzerland had piled up a credit balance of about 1,000,000,000 Swiss francs, which was in plain terms a loan to Germany without any hope of repayment except by means of German victory (which would be a defeat in reality for Switzerland). And the 'loan' was constantly being increased.

A feeling is voiced by a correspondent that the tendency of some highly respected Swiss leaders to play a game of 'Real Politik' is the nation's greatest danger. They would yield an inch here, an inch there for 'practical considerations,' side-stepping fundamental issues. The British, too, have added to Switzerland's trials. In March 1942, Great Britain announced an Allied decision to prohibit the export from the Continent of goods which contained over 5 per cent of enemy-produced materials. This blow compelled the Swiss to dispatch a special commission to London.

Switzerland ended 1941 with a national deficit of 60,000,000 francs. In the special account for national defense, there had been spent 1,317,000,000 francs of which only 475,000,000 was covered by special taxation. The national debt totalled on Dec. 31, 1941, 3,661,000,000 francs, an increase for the year of nearly 900,000,000 francs. It was estimated that by the end of 1942, Switzerland will have spent (presumably since 1939) almost 5,000,000,000 francs in special war costs; of this, despite a 10 per cent federal income tax and a special war profits tax, only about one fifth will have been covered.

Her Government and her people, who celebrated in 1940 their 650th anniversary, intend to maintain the inviolability of their land. They have an army of 700,000. It can be mobilized in 48 hours, going on active service meaning merely going home, changing one's clothes and picking up the rifle. They will make adjustments and concessions but, said President Ernest Wetter, 'there is a limit.' The people refuse to know anything but the freedom they have had for six centuries. The workers are almost 100 per cent anti-Nazi; the Church leaders are vocal in their opposition to domination.

The hardships brought by the war seem not to phase them. They have coal for one room per house; less butter than in Germany; three meatless days a week; milk and cheese, rationed; chocolate, scarce. Coffee, tea, grains are rationed; leather and textiles can be bought only against coupons, a year's allotment being 1 suit of clothes and 1 pair of shoes. In 1942, the Government was proceeding with a reorganization of agriculture and hoped they could be self-sustaining in food by 1943.

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.

1940: Switzerland

Counter-Espionage.

The impact of war in Europe has been felt heavily in Switzerland, although during 1940 this 'traditional neutral' escaped the ravages of direct participation in hostilities. As one of the few localities where freedom of communication has been maintained, and where the interests of all belligerents are closely intermingled, Switzerland was a natural center of intrigue for spies. During the year, Swiss authorities uncovered numerous espionage activities, some of which had serious international aspects. One of the most sensational cases was that of Colonel Arthur Fonjallaz, his son, and a woman of German origin who had become a United States citizen by marriage. Fonjallaz, who had attained the highest peacetime rank in the Swiss Army before his retirement, was formerly a leader of Switzerland's disbanded Nazi movement. His arrest, on Jan. 27, was first to be announced in a series of measures to clean up a large German spy ring. Among a number of other agents, Swiss police arrested the following: (on Jan 31) Edouard de Morsier, member of an old and prominent Geneva family; (on Feb. 29) Wilhelm Tobler, head of the Swiss National Front and the country's leading Nazi; and (on April 20) Lt. Col. Hans Trueb, an Army officer working in the Swiss War Ministry. In April and May the Army general staff warned the Swiss people of prevalent attempts by foreign spies to get plans and other information of Swiss frontier fortifications.

National Defense.

Amid the tension of 'Fifth Column' precautions, Switzerland guarded its neutrality actively throughout 1940. In accordance with an announced policy aimed at stationing on its borders as many troops as any one belligerent posted there, Switzerland on April 2 ordered 41 new army units to active service, in order to balance the 200,000 Nazi troops reported in the Baden and Kuertemberg areas north of the German-Swiss frontier. Following the Nazi invasion of Scandinavia, the Swiss Government and High Command on April 18 published mobilization plans for the guidance of the Swiss people in case their country should also be attacked. Simultaneously, the Swiss Army was increased to almost 500,000 men by the addition of 60,000 militiamen, for service in the Winkleried Line (between Basle and Lake Constance) and other frontier fortifications. With the invasion of Holland and Belgium on May 10, the Swiss Government ordered a general mobilization 'in view of the profound changes which have occurred on the western front,' and announced a precautionary 'state of war.' On May 16, as the League of Nations started to shut its offices in Geneva, Swiss and German military authorities closed their common frontier on both sides of the Rhine River. Swiss tension was soon relieved, however, as Germany and the Allies on May 19 withdrew many of their tanks, armored cars, and troops from the Swiss border for service in Belgium. On June 29, demobilization of about half the Swiss Army was begun, but the other 250,000 men were kept under rigid training routine for the remainder of the year. Frequent violations of Swiss neutrality by German and French planes up to the middle of June, and by British planes en route to Italy after Rome's entry into the war, made Switzerland the object of numerous diplomatic protests from both groups of belligerents. Finally, on Nov. 6, the Swiss High Command ordered strict blackout precautions for all Swiss cities.

Vicious anti-Swiss press and radio attacks in Germany and Italy followed military movements and air violations as a cause of concern in Switzerland during 1940. Most of the verbal barrage resulted from Switzerland's unwillingness to muffle its own newspaper editors, who were frequently accused by Axis spokesmen of giving war news a 'pro-British' twist. 'We will place the name of Switzerland . . . side by side with that of our detested enemy,' the Italian press warned on Nov. 8.

Internal Political Developments.

In the face of repeated Axis threats Swiss democracy held its head high. After the death on Jan. 23 of Guiseppe Motta, five times President of the Republic and Foreign Minister at the time of his death, President Pilet-Golaz became head of the Department of Foreign Affairs on March 1. On June 25, after the capitulation of France, he caused some anxiety in the cantons by announcing a new program of centralization and 'economic adaptation' to the Axis-dominated 'new order' in Europe. Since 'events happen quickly these days,' he said, the government would 'no longer be able to explain and justify its decisions,' and speeches would have to be curbed. Switzerland was completely surrounded by Axis powers, and in the succeeding months was forced to yield to German and Italian terms on all trade matters involving the transit of essential supplies over Axis territory. The people's faith in democratic processes, however, remained unshakeable. When in September the President granted an interview to three leaders of the Nazi-affiliated National Movement, widespread popular criticism and indignant protests from the workers' papers brought forth a public explanation from M. Pilet-Golaz. On Nov. 19, the Federal Council dissolved the National Movement, consisting chiefly of two organizations — the Swiss Union of Friends of Authoritarian Democracy, and the Swiss National Socialist Workers Party. Eight days later, the Swiss Communist Party and all its branches were similarly suppressed. On Dec. 4 Federal police raided the offices of the Swiss National Movement and Communist organizations throughout the country, and seized large quantities of propaganda. With a promise that Switzerland's 650-year-old independence would be preserved at all costs, Ernest Wetter was elected President of the Republic on Dec. 10 to succeed M. Pilet-Golaz for the year 1941.

Economic Situation.

The Swiss economy stood up well until June 1940, when Italy's entry into the war impaired the transshipment of Switzerland's vital import requirements through Italian territory, and rail service with France was stopped after the French collapse. Deprived of essential imports, Switzerland's manufacturing industry — normally the country's chief source of revenue — declined sharply. By the end of July prices of motor fuels and chemical products rose 74 per cent, coal and firewood 63 per cent, metals 55 per cent, and the textile-leather-rubber group 46 per cent. Prices on vegetable foods rose 51 per cent, but the domestic livestock industry kept animal foodstuffs down to a 13 per cent price increase. Italy's invasion of Greece on Oct. 28 further complicated Switzerland's supply problem by withdrawing from service the entire Swiss merchant marine, which consisted of 17 Greek ships chartered by the Swiss Government after the outbreak of the European War. See also WORLD ECONOMICS.

1939: Switzerland

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.

1938: Switzerland

The Federal Government was chiefly occupied during 1938 with questions of foreign policy, defense, and national unity. Because of the increasing tension in Europe, especially after the annexation of Austria in March, the Government applied to the League of Nations for a further reduction of Switzerland's commitments under the Covenant. The League Council adopted a resolution on May 14 ruling that Switzerland, which had been exempted in 1920 from all military obligations, could not be invited to participate in economic and financial sanctions. The Swiss Government immediately notified Germany and Italy that it had removed every obligation to intervene in European affairs, and both countries formally agreed to recognize and respect this unconditional neutrality.

This return to the traditional policy of complete neutrality was accompanied by increased defense appropriations, allocation of the Federal income tax for military expenditures, and proposals for extending the age limit of military service and lengthening the period of recruiting and training. The rapidity of modern invasion and air attack compelled Switzerland, wedged between three powerful neighbors, to consider reorganization of its citizen army and enlargement of its transport and aviation units. The Czechoslovakian crisis during September caused the Government to take precautionary measures along the Swiss frontiers. Although a general mobilization was avoided, additional volunteer troops were summoned, anti-aircraft defenses were prepared in the cities, and mines were placed under all bridges, tunnels, and roads near the borders.

The Federal Parliament on March 21 adopted almost unanimously an impressive declaration proclaiming that the Swiss people will defend at all cost their independence, democratic institutions, and neutrality. In order to eliminate every pretext for outside interference, the Government banned the use of foreign uniforms, flags, and party emblems, and extended the 1936 decree against Communist activity to a prohibition of any propaganda material likely to endanger the State. Over one hundred German agents were arrested and several Nazi party headquarters raided during November. The Journal des Nations, a liberal newspaper popular in international circles at Geneva, was ordered on October 7 to suspend publication for three months because of anti-Fascist editorial policy. The trend toward greater national unity was given additional emphasis on July 3, when a popular referendum approved the establishment of a new Federal penal code, replacing the separate codes of the twenty-two cantons.

The Swiss economy, after considerable recovery in 1937, was adversely affected by the general recession during the early part of 1938. Foreign trade declined, and the tourist trade was hampered by bad weather and currency restrictions on German citizens. Unemployment was sufficiently large to compel the Government to close its northern and eastern frontiers to persons without proper passports, and to grant only temporary visas to Jewish refugees from Germany. Swiss business men continued to seek for satisfactory financial and commercial arrangements with both democratic and totalitarian countries without becoming involved in their political controversies.