Newton D. Baker to William G. McAdoo

C O P Y
WAR DEPARTMENT
Washington.
January 4, 1918.

I am in receipt of your letter of January 2nd in which you express the hope that there may be a discussion of the whole military program with the military authorities of the Allied Governments with a view to determining what restrictions should be imposed upon expenditures by our War Department due to the restrictions imposed by the shipping problem upon the transportation of our troops and supplies. You also refer to the effect which such expenditures by the War Department have upon the advances which might otherwise be made available by the United States Treasury to the Allies.

I agree with you that this is a most important study and should be made without delay. This study should result in the coordination of the demands of the other Allied Governments and of the United States with reference to the shipping problem and to the financial problem. To do this effectually, there is no doubt as to the desirability of having a representative of the War Department on the Inter-Ally Council.

As you have requested, I have instructed the Chief of Staff to confer with Mr. Crosby and to cooperate with him along the lines suggested in your letter. The position of General Bliss on the Supreme War Council will enable him to determine with exactness the demands which the other Allied Governments will make upon our military resources and should he find that he could perform full duty upon both the Supreme War Council and the Inter-Ally Council, it might be well to assign him as our military representative upon the latter. The practicability of this, he could probably ascertain soon after conferring with Mr. Crosby in London and, in making any further suggestion to you on the subject, I shall be guided by his recommendation.

Meanwhile, as I have said above, I have very gladly given him instruction to proceed on the line indicated in your letter.
(Signed) Newton D. Baker,
Secretary of War.