

Currently released so far... 12404 / 251,287
Browse latest releases
2010/12/01
2010/12/02
2010/12/03
2010/12/04
2010/12/05
2010/12/06
2010/12/07
2010/12/08
2010/12/09
2010/12/10
2010/12/11
2010/12/12
2010/12/13
2010/12/14
2010/12/15
2010/12/16
2010/12/17
2010/12/18
2010/12/19
2010/12/20
2010/12/21
2010/12/22
2010/12/23
2010/12/24
2010/12/25
2010/12/26
2010/12/27
2010/12/28
2010/12/29
2010/12/30
2011/01/01
2011/01/02
2011/01/04
2011/01/05
2011/01/07
2011/01/09
2011/01/10
2011/01/11
2011/01/12
2011/01/13
2011/01/14
2011/01/15
2011/01/16
2011/01/17
2011/01/18
2011/01/19
2011/01/20
2011/01/21
2011/01/22
2011/01/23
2011/01/24
2011/01/25
2011/01/26
2011/01/27
2011/01/28
2011/01/29
2011/01/30
2011/01/31
2011/02/01
2011/02/02
2011/02/03
2011/02/04
2011/02/05
2011/02/06
2011/02/07
2011/02/08
2011/02/09
2011/02/10
2011/02/11
2011/02/12
2011/02/13
2011/02/14
2011/02/15
2011/02/16
2011/02/17
2011/02/18
2011/02/19
2011/02/20
2011/02/21
2011/02/22
2011/02/23
2011/02/24
2011/02/25
2011/02/26
2011/02/27
2011/02/28
2011/03/01
2011/03/02
2011/03/03
2011/03/04
2011/03/05
2011/03/06
2011/03/07
2011/03/08
2011/03/09
2011/03/10
2011/03/11
2011/03/13
2011/03/14
2011/03/15
2011/03/16
2011/03/17
2011/03/18
2011/03/19
2011/03/20
2011/03/21
2011/03/22
2011/03/23
2011/03/24
2011/03/25
2011/03/26
2011/03/27
2011/03/28
2011/03/29
2011/03/30
2011/03/31
2011/04/01
2011/04/02
2011/04/03
2011/04/04
2011/04/05
2011/04/06
2011/04/07
2011/04/08
2011/04/09
2011/04/10
2011/04/11
2011/04/12
2011/04/13
2011/04/14
2011/04/15
2011/04/16
2011/04/17
2011/04/18
2011/04/19
2011/04/20
2011/04/21
2011/04/22
2011/04/23
2011/04/24
2011/04/25
2011/04/26
2011/04/27
2011/04/28
2011/04/29
2011/04/30
Browse by creation date
Browse by origin
Embassy Athens
Embassy Asuncion
Embassy Astana
Embassy Asmara
Embassy Ashgabat
Embassy Apia
Embassy Ankara
Embassy Amman
Embassy Algiers
Embassy Addis Ababa
Embassy Accra
Embassy Abuja
Embassy Abu Dhabi
Embassy Abidjan
Consulate Auckland
Consulate Amsterdam
Consulate Adana
American Institute Taiwan, Taipei
Embassy Bujumbura
Embassy Buenos Aires
Embassy Budapest
Embassy Bucharest
Embassy Brussels
Embassy Bridgetown
Embassy Bratislava
Embassy Brasilia
Embassy Bogota
Embassy Bishkek
Embassy Bern
Embassy Berlin
Embassy Belmopan
Embassy Belgrade
Embassy Beirut
Embassy Beijing
Embassy Banjul
Embassy Bangkok
Embassy Bandar Seri Begawan
Embassy Bamako
Embassy Baku
Embassy Baghdad
Consulate Barcelona
Embassy Copenhagen
Embassy Conakry
Embassy Colombo
Embassy Chisinau
Embassy Caracas
Embassy Canberra
Embassy Cairo
Consulate Curacao
Consulate Ciudad Juarez
Consulate Chennai
Consulate Casablanca
Consulate Cape Town
Consulate Calgary
Embassy Dushanbe
Embassy Dublin
Embassy Doha
Embassy Djibouti
Embassy Dili
Embassy Dhaka
Embassy Dar Es Salaam
Embassy Damascus
Embassy Dakar
Consulate Dubai
Embassy Helsinki
Embassy Harare
Embassy Hanoi
Consulate Ho Chi Minh City
Consulate Hermosillo
Consulate Hamilton
Consulate Hamburg
Consulate Halifax
Embassy Kyiv
Embassy Kuwait
Embassy Kuala Lumpur
Embassy Kinshasa
Embassy Kingston
Embassy Kigali
Embassy Khartoum
Embassy Kathmandu
Embassy Kampala
Embassy Kabul
Consulate Kolkata
Embassy Luxembourg
Embassy Luanda
Embassy London
Embassy Ljubljana
Embassy Lisbon
Embassy Lima
Embassy Lilongwe
Embassy La Paz
Consulate Lahore
Consulate Lagos
Mission USOSCE
Mission USNATO
Mission UNESCO
Embassy Muscat
Embassy Moscow
Embassy Montevideo
Embassy Monrovia
Embassy Minsk
Embassy Mexico
Embassy Mbabane
Embassy Maputo
Embassy Manila
Embassy Manama
Embassy Managua
Embassy Malabo
Embassy Madrid
Consulate Munich
Consulate Mumbai
Consulate Montreal
Consulate Monterrey
Consulate Milan
Consulate Melbourne
Embassy Nicosia
Embassy New Delhi
Embassy Ndjamena
Embassy Nassau
Embassy Nairobi
Consulate Naples
Consulate Naha
Embassy Pristina
Embassy Pretoria
Embassy Prague
Embassy Port Of Spain
Embassy Port Louis
Embassy Port Au Prince
Embassy Phnom Penh
Embassy Paris
Embassy Paramaribo
Embassy Panama
Consulate Peshawar
REO Basrah
Embassy Rome
Embassy Riyadh
Embassy Riga
Embassy Reykjavik
Embassy Rangoon
Embassy Rabat
Consulate Rio De Janeiro
Consulate Recife
Secretary of State
Embassy Suva
Embassy Stockholm
Embassy Sofia
Embassy Skopje
Embassy Singapore
Embassy Seoul
Embassy Sarajevo
Embassy Santo Domingo
Embassy Santiago
Embassy Sanaa
Embassy San Salvador
Embassy San Jose
Consulate Strasbourg
Consulate St Petersburg
Consulate Shenyang
Consulate Shanghai
Consulate Sao Paulo
Embassy Tunis
Embassy Tripoli
Embassy Tokyo
Embassy The Hague
Embassy Tel Aviv
Embassy Tehran
Embassy Tegucigalpa
Embassy Tbilisi
Embassy Tashkent
Embassy Tallinn
Consulate Toronto
Consulate Tijuana
USUN New York
USEU Brussels
US Office Almaty
US Mission Geneva
US Interests Section Havana
US Delegation, Secretary
UNVIE
Embassy Ulaanbaatar
Embassy Vilnius
Embassy Vienna
Embassy Vatican
Embassy Valletta
Consulate Vladivostok
Consulate Vancouver
Browse by tag
ASEC
AE
AF
AM
AR
AJ
AU
AORC
AG
AEMR
AMGT
APER
AGMT
AL
AFIN
AO
AMED
ADCO
AS
ABUD
ABLD
ASUP
ASECKFRDCVISKIRFPHUMSMIGEG
APECO
AID
AND
AMBASSADOR
AN
ARM
AY
AODE
AMG
ASCH
AMCHAMS
ARF
APCS
APEC
ASEAN
AGAO
ANET
ADPM
ACOA
ACABQ
AORL
AFFAIRS
ATRN
ACS
AFSI
AFSN
ADANA
ASIG
AA
AX
AUC
AC
AECL
AADP
AGRICULTURE
AMEX
ACAO
ACBAQ
AQ
AORG
ADM
AINF
AIT
ASEX
AGR
AROC
ATFN
AFGHANISTAN
AFU
AER
ALOW
AZ
AVERY
BA
BY
BU
BR
BE
BL
BO
BK
BM
BILAT
BH
BEXP
BF
BTIO
BC
BBSR
BMGT
BTIU
BG
BWC
BB
BD
BX
BP
BRUSSELS
BN
BIDEN
BT
CW
CH
CF
CD
CV
CVIS
CM
CE
CA
CJAN
CLINTON
CIA
CU
CASC
CI
CO
CACM
CDB
CN
CMGT
CS
CG
CBW
CIS
CR
CONDOLEEZZA
CPAS
CAN
CWC
CY
COUNTER
CDG
CL
CT
CIC
CIDA
CSW
CHR
CB
CODEL
COUNTERTERRORISM
CTR
COM
CICTE
CFED
CJUS
CKGR
CBSA
CEUDA
CARSON
CONS
CITEL
CLMT
CROS
CITT
CAC
CVR
CDC
CAPC
COPUOS
CBC
CBE
CARICOM
COE
COUNTRY
CLEARANCE
CACS
CTM
CNARC
ECON
EFIN
ETRD
EUN
EFIS
EG
ETTC
EZ
EPET
EAID
EAGR
ENRG
ECUN
EU
ELAB
ECPS
EAIR
EINV
ELTN
EWWT
EIND
EMIN
EI
ECIN
ENVR
ELECTIONS
EINVEFIN
EN
ES
ER
EC
EUC
EINT
EINVETC
ENGR
ET
EK
ENIV
ETRDEINVECINPGOVCS
ECONOMY
EAP
EFTA
EUR
EUMEM
EXIM
ERD
ENERG
EUREM
ESA
ERNG
EXTERNAL
EPA
EINVECONSENVCSJA
ECONOMICS
ELN
EINN
EFINECONCS
ENNP
EEPET
ETRDEINVTINTCS
ENVI
ETRO
ESENV
ECINECONCS
ECONOMIC
EAIDS
EDU
ETRA
ETRN
EFIM
EIAR
ETRC
EAIG
EXBS
EURN
ECIP
EREL
ECA
ENGY
ECONCS
ECONEFIN
ETC
ETRDECONWTOCS
EUNCH
EINDETRD
IR
IZ
IS
IAEA
INRB
IRAJ
IQ
IN
IT
IMO
INTERPOL
ICAO
IO
IC
ITALY
ITALIAN
IRAQI
ICTY
ID
IPR
IWC
ILC
INTELSAT
IL
IBRD
IMF
IA
IRC
ICRC
ILO
ITU
ITRA
IV
IDA
IAHRC
ICJ
ISRAELI
IRS
INMARSAT
ISRAEL
ISLAMISTS
INDO
IZPREL
ITPHUM
ITPGOV
ITF
IBET
IEFIN
INR
IACI
INTERNAL
IDP
IGAD
IEA
ICTR
IIP
INRA
INRO
IF
KJUS
KSCA
KNNP
KU
KCOR
KCRM
KDEM
KTFN
KHLS
KPAL
KWBG
KACT
KGHG
KPAO
KTIA
KIRF
KWMN
KS
KG
KZ
KN
KMDR
KISL
KSPR
KHIV
KPRP
KAWK
KR
KUNR
KDRG
KCIP
KGCC
KTIP
KSUM
KPKO
KVIR
KAWC
KPIN
KGIC
KRAD
KIPR
KOLY
KCFE
KMCA
KE
KV
KICC
KNPP
KBCT
KSEP
KFRD
KFLU
KVPR
KOCI
KBIO
KSTH
KMPI
KCRS
KOMC
KTBT
KPLS
KIRC
KREL
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KFLO
KBTS
KSTC
KTDB
KFSC
KX
KFTFN
KNEI
KIDE
KREC
KMRS
KICA
KPAONZ
KCGC
KSAF
KRGY
KCMR
KRVC
KVRP
KSEO
KCOM
KAID
KTEX
KNUC
KNAR
KNUP
KNNPMNUC
KLIG
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KCRCM
KHDP
KGIT
KNSD
KOMS
KWMM
KPAI
KHSA
KTLA
KO
KMFO
KRCM
KCSY
KSAC
KTRD
KPWR
KID
KWNM
KRIM
KPOA
KCHG
KOM
KSCI
KFIN
KMOC
KESS
KWAC
KMIG
KSEC
KIFR
KDEMAF
KPRV
KBTR
KERG
KTER
KDDG
KPAK
KRFD
KHUM
KDEV
KCFC
KWWMN
KWMNCS
KJUST
MARR
MOPS
MU
MTCRE
MNUC
MY
MASS
MCAP
MOPPS
MAR
MPOS
MO
ML
MR
MASC
MX
MD
MP
MA
MTRE
MIL
MCC
MZ
MK
MDC
MRCRE
MAPS
MV
MI
MEPN
MAPP
MEETINGS
MAS
MTS
MLS
MILI
MTCR
MG
MC
MARAD
MIK
MILITARY
MEDIA
MEPI
MUCN
MEPP
MT
MERCOSUR
MW
MASSMNUC
MQADHAFI
NZ
NATO
NG
NI
NO
NATIONAL
NU
NPT
NIPP
NL
NPG
NS
NA
NGO
NP
NSG
NDP
NAFTA
NR
NC
NH
NE
NSF
NPA
NK
NSSP
NRR
NATOPREL
NSC
NT
NW
NORAD
NEW
NV
NSFO
NAR
NASA
NZUS
OTRA
OVIP
OPRC
OPDC
OSCE
OAS
ODIP
OIIP
OFDP
OVP
OREP
OFFICIALS
OSAC
OEXC
OPCW
OIE
OIC
OFDA
OSCI
OPIC
OBSP
OECD
ON
OCII
OHUM
OES
OCS
OMIG
OPAD
OTR
PGOV
PREL
PHUM
PINR
PTER
PSOE
PINS
PARM
PK
PBTS
PEPR
PM
POLITICAL
PARTIES
PREF
PBIO
PROP
PA
PSI
PINT
PO
PKFK
PL
PAK
PE
POLITICS
PINL
POL
PHSA
PU
PF
POV
PFOR
PHALANAGE
PARTY
PARMS
PRGOV
PNAT
POLINT
PRAM
PMAR
PG
PAO
PROG
PRELP
PPA
PCUL
PSEPC
PSA
PREO
PAHO
PGIV
PREFA
PALESTINIAN
PAIGH
POSTS
PTBS
PGOVLO
PORG
PGOVE
PLN
PINF
PAS
PUNE
POLICY
PDEM
PDOV
PCI
PGOVSMIGKCRMKWMNPHUMCVISKFRDCA
PBT
PHUMPGOV
PMIL
PNG
PP
PS
PHUH
PECON
POGOV
PY
PHUMPREL
PHUS
PRL
PGOC
PNR
PGGV
PROV
PTERE
PGOF
PHUMBA
PEL
RS
RU
RW
REGION
RP
RICE
ROBERT
RSP
RUPREL
RM
RO
RCMP
RSO
RELATIONS
REACTION
REPORT
RIGHTS
ROOD
RF
RFE
RIGHTSPOLMIL
SP
SA
SY
SF
SYR
SENV
SCUL
SOCI
SNAR
SO
SU
SG
STEINBERG
SHUM
SW
SMIG
SR
SZ
SIPRS
SI
SAARC
SPCE
SARS
SN
SYRIA
SANC
SL
SCRS
SC
SENVKGHG
SAN
SNARCS
SHI
SWE
SNARIZ
SIPDIS
SEN
SNARN
SPCVIS
SEVN
SSA
SH
SOFA
SK
ST
TPHY
TU
TRGY
TI
TX
TS
TW
TC
TFIN
TD
TSPA
TH
TT
TIP
TBIO
TSPL
TZ
TERRORISM
TRSY
TN
THPY
TINT
TF
TL
TV
TK
TO
TP
TURKEY
TNGD
TBID
TAGS
TR
UP
US
UNSC
UK
UZ
UE
UNESCO
UV
UNGA
UN
UNMIK
UNO
UY
UAE
UNEP
UG
UNHCR
UNHRC
USUN
UNAUS
USTR
USNC
USOAS
UNCHR
UNCSD
UNDP
USEU
USPS
UNDC
UNDESCO
UNCHC
UNFICYP
UNC
UNODC
UNPUOS
UNCND
UNICEF
UNCHS
UNVIE
USAID
UNIDROIT
Browse by classification
Community resources
courage is contagious
Viewing cable 10BERN48, U/S HORMATS REVIEWS BILATERAL ECONOMIC RELATIONS \
If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:
- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #10BERN48.
Reference ID | Created | Released | Classification | Origin |
---|---|---|---|---|
10BERN48 | 2010-02-04 17:05 | 2011-03-14 06:06 | CONFIDENTIAL | Embassy Bern |
Appears in these articles: http://www.letemps.ch/swiss_papers |
INFO LOG-00 EEB-00 AF-00 AGRE-00 AID-00 CEA-01 CIAE-00
COME-00 CTME-00 INL-00 DODE-00 DOTE-00 PERC-00 PDI-00
DHSE-00 EXIM-01 E-00 FAAE-00 VCI-00 FRB-00 H-00
TEDE-00 INR-00 IO-00 ITC-01 JUSE-00 LAB-01 L-00
VCIE-00 DCP-00 NSAE-00 ISN-00 NSCE-00 OES-00 OMB-00
NIMA-00 GIWI-00 MA-00 ISNE-00 DOHS-00 FMPC-00 SP-00
IRM-00 SSO-00 SS-00 STR-00 TRSE-00 NCTC-00 BBG-00
R-00 EPAE-00 IIP-00 DRL-00 G-00 SAS-00 FA-00
PESU-00 SEEE-00 SANA-00 /004W
R 041731Z FEB 10
FM AMEMBASSY BERN
TO SECSTATE WASHDC 6294
2010-02-04 17:31:00 10BERN48 Embassy Bern CONFIDENTIAL INFO LOG-00 EEB-00 AF-00 AGRE-00 AID-00 CEA-01 CIAE-00 \
COME-00 CTME-00 INL-00 DODE-00 DOTE-00 PERC-00 PDI-00 \
DHSE-00 EXIM-01 E-00 FAAE-00 VCI-00 FRB-00 H-00 \
TEDE-00 INR-00 IO-00 ITC-01 JUSE-00 LAB-01 L-00 \
VCIE-00 DCP-00 NSAE-00 ISN-00 NSCE-00 OES-00 OMB-00 \
NIMA-00 GIWI-00 MA-00 ISNE-00 DOHS-00 FMPC-00 SP-00 \
IRM-00 SSO-00 SS-00 STR-00 TRSE-00 NCTC-00 BBG-00 \
R-00 EPAE-00 IIP-00 DRL-00 G-00 SAS-00 FA-00 \
PESU-00 SEEE-00 SANA-00 /004W\
\
R 041731Z FEB 10\
FM AMEMBASSY BERN\
TO SECSTATE WASHDC 6294\
C O N F I D E N T I A L BERN 000048 \
\
\
E.O. 12958: DECL: 12/31/2025 \
TAGS: ECON EFIN ETRD SZ
SUBJECT: U/S HORMATS REVIEWS BILATERAL ECONOMIC RELATIONS \
WITH SWISS ECONOMICS MINISTRY OFFICIALS \
\
Classified By: Pol/Econ couns. R. Rorvig for reasons 1.4(b) and (d). \
\
\
¶1. (U) January 25 at 11:00 am; Zurich \
\
¶2. (U) Participants: \
\
U.S. \
\
U/S Robert Hormats, Under Secretary for Economic, Energy, and \
Agricultural Affairs \
Amb. Donald Beyer, US Ambassador to Switzerland \
Alex Whittington, Special Assistant to the Under Secretary \
Richard Rorvig, Bern Embassy notetaker \
\
Switzerland \
\
S/S Jean-Daniel Gerber, State Secretary, Swiss Department of \
Economics \
Amb. Monika Ruehl Burzi, Ambassador, Swiss Department of \
Economics \
Dr. Philippe Nell, Director of the America's Office, Swiss \
Department of Economics \
Remigi Winzap, Director of the WTO and Procurement Office, \
Swiss Department \
Josef Renggli, Director of the Financial Affairs Office, \
Swiss Department of Foreign Affairs \
Guido Barsuglia Deputy Director of the America's Office, \
Swiss Department of Foreign Affairs \
\
\
------- \
Summary \
------- \
\
¶1. (C) Swiss State Secretary Jean-Daniel Gerber told U/S \
Hormats on January 25 that a recent Swiss Administrative \
court ruling had created complications for implementation of \
the 2009 US-Swiss Agreement on Exchange of Tax Information. \
Gerber said Switzerland will do its utmost to honor the \
agreement, though this - in his opinion - might now require \
submitting an adapted Agreement to the Swiss parliament for \
ratification. Gerber urged the US to be more active in the \
Doha round, saying that progress there would undermine \
domestic Swiss opposition to agricultural trade \
liberalization. This would improve the odds for an \
agricultural Free Trade Agreement (FTA) with the EU, a top \
Swiss priority. Switzerland also hopes to negotiate an FTA \
with China and will start a feasibility study on the issue. \
Swiss firms have huge intellectual property rights (IPR) \
problems with China, and the Swiss hope to get more \
protection from a new FTA. Switzerland decided not to join \
the EU/US WTO IPR panel against China, due to Chinese threats \
to break off talks if the Swiss went that route. U/S Hormats \
said there is a systematic assault on intellectual property \
rights occurring in China, and he urged the Swiss to be tough \
in the negotiations. \
\
¶2. (C) Gerber asked the US to consider broadening G-20 \
membership to include Switzerland, which he said is more \
qualified based on economic criteria than some members. If \
this is not possible, then perhaps Switzerland might be \
allowed to take part in G-20 working groups where it has \
"something special to offer." Concerning the potential \
reduction of IMF and IBRD board seats and the current \
European over-representation, Switzerland wants to underline \
that it is not a member of the EU or the Euro zone. If a \
Swiss seat is cut, Gerber added, then European representation \
will be even more 'EU' and less 'European.' With regard to \
the US-Swiss discussion of economic issues in the Joint \
Economic Committee, both sides affirmed interest in \
continuing the dialogue. \
\
------------------------ \
Financial and Tax Issues \
------------------------ \
\
¶3. (C) Gerber noted that a recent Swiss Administrative Court \
ruling (siding with several UBS account-holders seeking to \
prevent their UBS account data from being transferred to the \
IRS) had caused complications for the implementation of the \
2009 US-Swiss Agreement on Exchange of Tax Information under \
the existing US-Swiss Double Taxation Agreement. The Swiss \
Government disagrees with the Court's opinion, but is \
compelled to live with it. The Administrative Court is the \
highest authority on administrative matters in Switzerland, \
so its decisions cannot be appealed. Nonetheless, the Swiss \
Government will do its utmost to honor the Agreement reached \
with the US on the UBS case. Gerber said that the Agreement \
requires Switzerland to fulfill its obligations by August 20, \
2010, but contains a clause allowing the US to take \
offsetting actions should the balance of benefits be \
disturbed. \
\
¶4. (C) The Swiss cabinet will meet shortly to decide on a \
course of action. In Gerber's view there are three potential \
ways to address the issue: \
\
-- The Swiss cabinet resorts to its emergency law-making \
authority (Notrecht), which allows it to circumvent \
parliament and Switzerland's public referendum process when \
vital national interests are at stake. Gerber said use of \
this provision is unlikely, as these powers were conceived \
for wartime emergencies. \
\
-- Negotiations with the US restart, in part to verify \
whether the number of voluntary disclosures by UBS's American \
account-holders has reached the level of 10,000 filings \
needed to satisfy the agreement. \
\
-- The Government submits an adapted US-Swiss tax information \
exchange agreement to Parliament for ratification, thus \
superseding existing banking privacy laws. This will mean \
pushing an agreement through parliament and potentially \
through a national referendum challenge. In Gerber's \
opinion, this is the most likely action. \
\
¶5. (C) Gerber said that some parties in parliament oppose an \
information-sharing agreement, while others are supportive. \
Furthermore, Switzerland has negotiated twelve such \
agreements with various countries, all intended to bring \
Switzerland in line with OECD banking transparency \
requirements. These agreements are essentially identical and \
the Administrative Court's decision also creates the same \
problem for all of them and the same need for a legislative \
solution. \
\
¶6. (C) U/S Hormats told Gerber that the US Department of \
Justice is studying the Swiss Administrative Court ruling \
closely. The US has chosen to avoid saying anything \
publicly, since the US does not want comments from Washington \
complicating the achievement of a solution in Switzerland. \
The US is familiar with the concept of an independent \
judiciary and respects it. The US ratification process for \
the Agreement is going forward. The Senate's calendar is \
full and the US-Swiss Agreement is one of several such \
accords the Secretary hopes can be ratified before the end of \
¶2010. The Ambassador noted that 14,700 persons from all \
countries had come forward under the IRS voluntary disclosure \
program. Of the 4,000 cases so far developed, about half are \
from UBS. \
\
-------------------- \
Trade and WTO Issues \
-------------------- \
\
¶7. (C) Gerber said that successful conclusion of the WTO's \
Doha round remains paramount for Switzerland. As a major \
trading nation and financial center, Switzerland is dependent \
on world markets and free trade. The Swiss Government would \
like to negotiate an agricultural free trade agreement with \
the EU. The proposal faces significant opposition from some \
elements within Switzerland. While a Swiss-EU agreement \
could be challenged by a domestic referendum, a successful \
Doha Round would increase the outside pressure for trade \
liberalization and be helpful to the internal Swiss political \
debate. Swiss WTO office director Winzap noted that the Doha \
round could reduce emerging market tariffs by up to 70 \
percent on average. Gerber said that Switzerland very much \
wants the US to push for restarting negotiations and would \
like to see a more active US stance. U/S Hormats reported \
that the Obama Administration, including USTR Kirk, support \
the successful conclusion of the Doha Round. However, the \
Administration will not be able to sign on to any agreement \
without more flexibility from countries such as India, China \
and Brazil. U/S Hormats dismissed Swiss concerns that Doha \
technical discussions could not move forward without a \
ministerial meeting. \
\
----- \
China \
----- \
\
¶8. (C) Gerber reported that Switzerland will conduct a \
feasibility study for a Free Trade Agreement (FTA) with \
China. (Switzerland already has FTA's with Japan, South \
Korea, Indonesia, Malaysia and Singapore.) Switzerland \
currently has a trade surplus with China, to whom it sells \
machinery, food, and diverse manufactures. Gerber indicated \
that while China originally wanted to start its broad \
European trade liberalization effort with a China-Iceland \
FTA, the financial crisis derailed these plans. China next \
examined the possibility of an FTA with Norway, but was \
uninterested as Norwegian exports are comprised mostly of \
fish, oil and shipping services. Switzerland, on the other \
hand, has a more diversified product range and is "small \
enough not to matter." Gerber reported that Swiss firms \
continue to have huge IPR problems with China, and \
Switzerland hopes to get more IPR protection from a new FTA. \
\
¶9. (C) U/S Hormats opined that there is a systematic assault \
on intellectual property rights in China. Gerber agreed and \
reported that Switzerland decided not to join the EU/US WTO \
intellectual property rights complaint against China only \
because the Chinese threatened to halt FTA plans if \
Switzerland participated. Instead, Switzerland and China \
agreed to set up a 'dialogue' between Swiss and Chinese IPR \
experts. \
\
--------------- \
Export controls \
--------------- \
\
¶10. (C) According to Gerber, Switzerland is sensitive to the \
issue of export controls and its firms comply with US \
regulations. Switzerland is the world's fourth-largest \
exporter of dual-use goods, and was recently elected chairman \
of the Wassenaar Arrangement, which controls such items. \
Gerber urged the US to contact the Swiss Government should \
any export control issues arise. Gerber understands that the \
USG is in the process of reviewing its export control regime \
and would like any updates going forward. \
\
--------------- \
G-20, IMF, IBRD \
--------------- \
\
¶11. (C) Switzerland, according to Gerber, believes it is \
more qualified to be in the G-20 than some current members. \
It is the seventh-largest financial market in the world with \
a monetary policy closer to that of the Fed than the European \
Central Bank. Gerber expressed concern that the G-20 is \
tasking international organizations of which Switzerland is a \
member, to undertake G-20 projects, but not allowing \
Switzerland a chance to comment. Gerber singled out the OECD \
in particular. Switzerland still prefers, however, that the \
G-20 involve international organizations with a broader \
membership base than see non-G-20 states excluded entirely. \
If Switzerland cannot be a G-20 member, Gerber continued, \
then perhaps it can participate in G-20 working groups on \
particular subjects, where it has "something special to \
contribute." In addition, Switzerland remains concerned \
about the possible reduction of board seats at the IMF and \
World Bank. Gerber reminded the Under Secretary that while \
the EU is over-represented in the G-20 and on the IMF and \
World Bank boards, Switzerland is not an EU member. Swiss \
President Leuthard reportedly feels very strongly about these \
matters and the Government of Switzerland hopes the US will \
take the Swiss point of view into account. \
\
---------------------------------- \
International Financial Regulation \
---------------------------------- \
\
¶12. (C) Gerber was surprised that the global financial crisis \
had so far led to very little trade protectionism. There \
have been around 400 mostly small-scale, trade-restricting \
measures implemented since the onset of the crisis. Russia \
is by far the biggest offender. Gerber believes that the \
status of global finance has declined markedly. For many, \
"offshore banking has become a dirty word." Gerber reported \
that the Swiss fear that the OECD goal of free capital \
movement has been forgotten. Gerber said it is difficult for \
Swiss banks to offer financial services in the US or Germany \
without having a subsidiary in those countries. Switzerland \
is concerned by some of the new legislation being considered \
by Congress. One bill, for example, would limit \
deductibility of re-insurance expenses paid to entities \
abroad. The qualified intermediary system works well, but \
many smaller Swiss banks think the cost of compliance and US \
regulatory filings is too high. However, even small Swiss \
banks cannot work only within the domestic Swiss market. \
\
¶13. (C) With regard to the financial responsibility fee, \
Switzerland also faces a different situation than the US. \
The Swiss National Bank's purchase of 60 billion CHF (USD \
58.5 billion) of bad assets from UBS has so far turned out to \
be profitable. The Swiss Government had made 1.2 billion CHF \
(USD 1.14 billion) on its sales, and reduced the outstanding \
balance to 29 billion CHF (USD 27.5 billion). Furthermore, \
The Swiss National Bank has increased reserve requirements \
for Swiss banks to levels higher than their foreign \
competitors. It has also lowered the allowable leverage \
ratios to third parties. Introduction of a financial \
responsibly fee on top of these measures would "overload the \
situation." \
\
--------------------------------------------- -------------- \
Joint Economic Committee and the Trade and Investment Forum \
--------------------------------------------- -------------- \
\
¶14. (C) Turning to the Joint Economic Committee (JEC) Gerber \
believes that the forum has been used to provide an overview \
of all economic matters and advance some particular issues, \
such as some particular export control cases. The US has many \
opportunities to talk to the EU about economic matters, he \
continued, but the case is different with Switzerland. U/S \
Hormats and State secretary Gerber pledged to identify a time \
that works for both sides to hold the next JEC meeting in \
Washington, possibly on the margins of the Spring IMF/IBRD \
meetings. With regard to the Trade and Investment Forum, \
which had been set up after the failure of our FTA \
negotiations, Gerber said both governments can do better. \
Switzerland is interested in global issues and President \
Leuthard has a few ideas for USTR Kirk on how to develop the \
Forum. U/S Hormats said that the US is interested in \
Switzerland's ideas of how to invigorate the agreement, \
noting the US is increasingly focused on labor and \
environmental standards. \
\
\
¶15. (U) This cable has been cleared by U/S Hormats. \
\
\
BEYER \