File No. 102.1/394
The Delegate to the Inter-Allied Council ( Crosby ) to the Secretary of State
[Received midnight.]
No. 5. For Secretary of the Treasury:
Best judgment available here suggests that no additional credits need be given to Italy until about ten days hence when probably the military situation will have become more precise, either developing into complete break-down of Italian Army or making stand on some line which could probably be held for the winter. However, see no objection to giving some general encouragement for future support conditioned upon the continued belligerency of Italy without making any definite figure as to the additional ninety millions for October. [Page 581] Believe that the credit actually covered by the last letter prepared by me would for the present be sufficient since the amount therein stated could be made to cover all their immediate needs without referring to the particular months for which the amounts are named. It is not wise to permit large additional orders to be placed on the ground of the destruction suffered in the campaign up to this time since there is so much doubt as to the continued military resistance of the Army. Hence all military plans must be subject to later determination. I believe also that any increases should be kept in suspense as an additional motive for prompt action in getting Inter-Ally Council at work. I am seeing the Italian members to-day but know from the Ambassador that they have no specific instructions. Without continued pressure from me upon representatives of all parties they will continue to lag and look to you for solving all their difficulties however suddenly by themselves [they may] be presented to you. French financial agent here states that delay of his Government in naming delegates due to lack of knowledge as to the exact functions of the council. All this can be cleared up only by my visit to France next week. Political conditions in Great Britain, France and Italy just now so disturbed that consecutive constructive work rendered difficult. I think that even the increase of Belgian loans can await discussion by the council as immediate needs seem to be cared for. French Government has just advanced to Belgian Government here one [omission] pounds relieving temporarily the great distress of the commission’s office here. If De Cartier has asked for transfer of funds by purchase of $10,000,000 sterling exchange referred to in my No. 2 I hope he will be told that it can be accomplished, and if Lever is notified to take advantage of this British demands should automatically be diminished by like amount on their exchange account.