Oscar T. Crosby to William G. McAdoo

C O P Y
Paris
Dated January 7, 1918.

Recd. 8, 13:55 p.M.
Secretary of State,Washington,January 7.

For Secretary of Treasury. Number 56. Since departure of Mission have been somewhat embarrassed by fact that several members and Colonel House requested me to give attention to their affairs until various inter-ally organizes were completed by American representation. Have avoided all such questions except those seeming imperative because of lack of other authority than that above mentioned which might not be known to or considered sufficient by Departments in Washington, hence inquiry my number 27 as to progress in carrying out resolutions, Paris conference concerning inter-Ally organization.(Blue) Made exception by sending my number twenty-five referring Italian coal situation which remains very acute and was desired by Italian Government to be laid before Inter-Ally Shipping Board. British and French officials also prefer to have inter-Ally consideration to this question my telegram number twenty-five sent through inadvertence having been proposed to me by others as first draft, nevertheless I consider its substance sound. In meeting of council have item of ten million dollars asked by Italian Government for freights presents a question as to propriety of present maritime freight charges. This was referred by our council to inter-Ally Shipping Board again with urgent desire expressed by several cabinet ministers sitting on council that American representation should be established in Shipping Board. Furthermore, since total requirements presented by Allies for purchases in United States and elsewhere must be reduced primarily for financial reasons, it follows that particular reduction in such matters also be seriously affected by tonnage. According to arrangement it is difficult, therefore, to make proper final determination until shipping problems determined. General understanding reached in Paris as to position of shipping produces certain hesitation and confusion in immediate independent action of Governments and will be beneficial only when actually carried into effect. European members of council urge that question should be again presented with the suggestion that any competent temporary representative of United States would be better than none since organization could be completed and that representative could receive instructions for shipping board at Washington. Agreed present matter but will make no further recommendation.

Meeting of full council here, particularly presence of Bonar Law and Nitti, has done much to consolidate work, and satisfy French sentiment. Great advantage also had from presence of three active French Ministers Klotz, Clementel, Loucheur, representing Finance, Commerce, and Transport and Munitions. Without occasional meetings here impossible to obtain hearty cooperation required for maximum economy and efficiency. Task of coordination between European Allies remains very difficult in spite of all public talk to the contrary.

Referring to Spanish loan British, French, Italian Government sending financial mission to Spain. Lord Cunliff left yesterday as British representative. Presume Willard will obtain authority to support these negotiations, importance of which to treasury obvious.