File No. 763.72/6033
We feel sure that the importance of the question put by the Honorable
Mr. McAdoo, which touches
upon the general conduct of the war and the coordinated action of
our Governments cannot fail to arrest your most earnest
attention.
[Enclosure—Free translation]2
The French, British,
Italian, and Russian Ambassadors to the Secretary of the Treasury
Mr. Secretary of the Treasury: We have
the honour to acknowledge the receipt of your letter of July
18,3 and to inform you that we immediately
telegraphed its contents to our respective Governments. As soon
as we receive their answer, it will be transmitted to you.
We wish however to assure you immediately that all the Allied
powers are thoroughly inspired by that feeling of solidarity,
which you so justly consider indispensable for victory.
We are convinced that the same spirit inspires the Government of
the United States in the prosecution of this war, into which
they entered deliberately, in the exercise of their sovereign
rights, and after weighing carefully the responsibilities
entailed and the conditions under which the war is being fought.
We also know that the United States Government are firmly
resolved to carry on the struggle until their object has been
attained in close cooperation with the European powers, who for
so long have borne the burden of the common struggle against
autocratic Germany.
[Page 556]
We therefore are convinced that the United States Government,
when they indicated to our Governments a definite date by which
the organisation now contemplated should be in working order (a
highly desirable object), only wished to make clear—immediately
to the Allied powers, and later on to Congress—the great
importance they attach to the realisation of this object, which
our Governments appreciate no less than that of the United
States.
We thoroughly understand why you should have deemed it necessary
for the conduct of this war, in which the United States and the
Allied powers are alike resolved to bring their respective
resources up to a maximum of efficiency, to secure that all our
efforts should be more closely coordinated.
It cannot be denied that up to the present time this coordination
may have been somewhat impeded both by the procedure followed by
the Allied powers in their dealings with your Government, and by
the conditions under which the new bodies, created in the United
States to deal with war problems, have been working.
The scheme which you submitted to us aims at securing more
thorough collaboration. The Allied powers are ready to devote
all their experience to the accomplishment of that special task
in the most effective way; they have been willing to do so from
the very day when the United States entered the war, and we feel
sure no difference of views can arise in principle as to the
desirability of better coordination of the requirements arising
out of the European war, and the corresponding demands made for
the satisfaction of such requirements.
You will however not lose sight of the fact that the question
raised by your letter calls for serious examination, the
necessity for which is indicated to our respective Governments
by their long experience in the war.
It is for our Governments to express their opinion as regards the
ways in which this coordination can be effected, and as regards
the powers and duties of the council to be established in
Europe.
On the other hand, by the force of circumstances this question
must be closely connected with the organisation of an executive
committee in the United States; for the council to be set up in
Europe would evidently lose greatly both in authority and
efficiency, if the American committee happened not to answer
exactly to the contemplated object.
Consequently, while we are awaiting the reply of our Governments
on the first point we feel bound meanwhile to submit to you,
with the concurrence of the High Commissioners for France and
Great Britain the following observations on the second point,
which forms the subject of the joint memo. The latter is of
course in the nature of a mere suggestion.
[Page 557]
Primary importance attaches to war expenditure, for which payment
is made in the United States out of funds advanced to the Allies
by the United States Government under financial agreements
fixing the rate of interest and the period within which
repayment is to be made.
It is therefore clear that our Governments are responsible to
their respective legislatures for the sums lent from the moment
when they obtain possession of them, in accordance with their
constitutions and rules governing public accounts.
It seems to follow that the Governments in question should have
some means of controlling the use made of these funds, despite
paragraph 6 which seems to assert the contrary; such control the
memorandum does not provide, but the need for it is clearly
indicated, because the United States Government in paragraph 10
express their unwillingness to incur any responsibility by the
mere fact that this organisation is in existence.
If the Allied powers are to undertake not to place orders in the
United States otherwise than through the committee to be set up
in Washington (par. 3), it would seem equally necessary that, as
a corollary to this undertaking, the Allies on their side should
be assured that they will be able to place such orders under
most favourable conditions, especially as regards the prices
being the same as those paid by the United States Government for
their own war orders.
The following point we consider equally essential. The Allied
powers have in the course of three years, at the cost of the
blood of their peoples, gained a thorough experience in all war
problems; and it is indispensable that they should have some
means of giving the benefit of all this experience to the new
bodies to be set up at Washington, the method of accomplishing
this must be determined later.
Long experience has proved the absolute need of an intricate
organisation to cope with the execution of orders placed, their
distribution among various factories, the unavoidable changes
which may have to be made while contracts are in course of
execution, supervision over the manufacture of the goods and
acceptance of them on delivery. It will not be expected that the
Allied Governments should give up control over this
organisation.
Generally speaking, we feel confident that you will agree with us
in thinking it is only fair that while on the one hand the
Allied powers give undertakings as regards their war needs, the
United States Government for their part should define what
obligations they undertake to assume.
[Page 558]
It is in our opinion desirable that an agreement should be
reached without delay upon the above points, and on others of
secondary importance.
We feel therefore that we are falling in with your wishes in
asking you to designate as soon as possible one or more
delegates, with whom we can immediately begin to discuss what
form our collaboration should take, and how the executive
machinery at Washington is to be organised. The result of these
negotiations will naturally have an immediate bearing on the
final decisions of our Governments regarding the projected
European council; for the activities of this council cannot be
determined with precision or efficiency except in close
connection with the organisation which it is proposed to
establish in the United States.
We are convinced that you will appreciate the importance of the
above considerations.
Finally, we are anxious to assure you once more of the great
satisfaction given us by your letter, which paves the way for
drawing still closer the bonds now uniting the United States
with the Allied powers, and cementing more firmly that union of
hearts and interests which so happily exists between your
country and ours.
With sincere gratitude for all the generous help extended by the
United States Government in the past, and keen appreciation of
their present views as to the need of our relations becoming yet
more intimate and cordial, we beg you, Mr. Secretary, to accept
the assurance of our high consideration.
[No signatures indicated]
