Oscar T. Crosby to William G. McAdoo

C O P Y
London
Dated Dec. 21, 1917.

Recd. 22, 1:00 a.M.
Secretary of State,Washington.
December 21, 4 p.M.
From Crosby for Secretary Treasury. "Number 25. In an interview proposed by Italian Ambassador am informed that present shipping arrangements provide for only three hundred thousand tons coal for Italy in each of the two following months as compared with the requirements of six hundred fifty thousand for reasonably effective operation of industries, railways and ships. Country threated with famine and revolution because food in railway cars at ports cannot be transported to other points where bread lacking. Ninety per cent all cities having gas plants in Italy represented as being now wholly without illuminating gas, generally condition approaching breakdown. The Ambassador has represented these facts to British authorities. Lord Robert Cecil suggested his interview with me. English shipping authorities acting alone, appear to be unable to better situation though recognizing its absolutely critical importance as it seems highly probable that Italy must change her position in war if better situation cannot be created. Only practical step now suggesting itself and approved Italians English and other American advisers here is that inter-ally shipping board should be immediately organized with a view to placing Italian situation before French and English thus brought together under conditions and guided by principles indicated in Paris Conference believe it would be wise to let me temporarily represent our government in bringing this organization into being so that situation may be immediately clarified. In my judgment this is most important immediate subject presented in war situation. Strongly impressed with importance of immediately obtaining neutral tonnage in all pending cases. Slight advantage in matter of blockade seems less important than cure of situation which is all war operations. Cravath fully concurs. Please advise action as soon as possible".

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