File No. 102.1/405

The Delegate to the Inter-Allied Council ( Crosby ) to the Secretary of State

[Telegram]

No. 8, for Secretary of the Treasury:

Referring yours November 15.

(1)
Referring Canadian purchases. Recommend that small and urgent purchases may be made without reference to council here but their general program should be submitted if only to determine place in priority scale and further because of highly probable relation [Page 582] between Canadian and British finance. If, however, Canadians willing to accept foot of priority list see no great objection to letting them enter purchasing agreement without reference to council.
(2)
Referring to moneys reimbursed on account of shipping construction. Treasury here would like assurance that it may be all applied in one way or another to payment of their outstanding cash obligations including bills held by Du Ponts and other manufacturers. Have proposed that best disposition would be to apply to $94,000,000 notes maturing February which are scattered as previously indicated. Lamont 1 naturally expresses preference that all available cash should be applied to reduction of overdraft but I consider we must deal with British Government solely on this subject. There will be no difficulty in having subrogation to collateral held against obligations thus met. Please advise amount of money and probable time of payment to British Government by Shipping Board considering possible changes in situation of Italy and France whose requirements for next year still unknown, possibly very large. Recommend that if application of these funds to Morgan overdraft insisted upon they must be put on notice that February maturity cannot be met unless large reductions in other programs be accomplished.
(3)
Referring to Greek situation. Do not consider necessary to send special financial American agent to Greece. Information here that English and French experts are very capable master the situation; so urgent that probably no delay admissible such as would be invalued [incurred?]in getting American special agent there. It would be well, however, to ask our Minister to be associated with the French and English experts in financial investigations. During an interview with Venizelos yesterday he urged immediate help particularly in the way of food. Consider French and British absolutely bound to aid Greece whose situation very bad but do not believe we should make commitment for money until after conference in Paris with French authorities. Venizelos will be there. It seems probable that 200,000 tons Indian wheat may be allocated to Greek consumption. This could be financed by Great Britain. Future military movements not yet decided. Venizelos likely to be terribly disappointed, perhaps to the extent of complete discomfiture, if British and French troops are more or less withdrawn as is now anticipated but not known to him. This point entirely confidential.
(4)
Concerning Japanese financial assistance. Treasury here considers not available nor particularly desirable. No war purchases being made by Allies in Japan save for Russia. Financial relations between Russia and Japan may present serious situations. No present action indicated.
(5)
Concerning Belgium. Think proposed increase justifiable but recommend that it be made now for not more than two months in order to require further Belgian demands to be coordinated with other demands upon the Treasury.
(6)
Referring to Serbia. Recommend application of Minister be granted.
(7)
Concerning Roumanian Minister. Understand he is awaiting my arrival in Paris.
(8)
Crespi, Italian Food Minister, just arrived. Thinks it necessary to get immediately large stores for Italy in order to prevent public excitement possibly reaching revolutionary crisis. This will be considered within next few days, possibly affecting amount of money immediately required. But slight prospect that program as to transportation of grain can be modified to meet his views.
(9)
Referring to nitrate agreement. Understand that State Department and purchasing commission have authorized negotiation by Skinner. See nothing objectionable in financial side of contract which provides that each Government concerned shall finance its own purchases and provide its own shipping. Am asking British, French and Italian Governments to explain how they expect to finance their part merely because we must anticipate possibility of entire purchase price appearing in New York in the form of sterling bills.

Please advise Mrs. Crosby that Carraciolos stationed officially in Paris.

Crosby
  1. Thomas W. Lamont, member of the firm of J. P. Morgan & Co.