File No. 763.72/7902
The Ambassador in France ( Sharp) to the Secretary of State
[Received November 29, 11.35 a.m.]
2813. No. 11. For Secretary of the Treasury:
French Finance Minister proposes that instead of having one Inter-Ally Council as originally proposed, its functions shall be divided between two councils, one to deal with questions relating primarily to purchases and supplies and the other primarily with financial questions, trade council to have headquarters in London and finance council to have headquarters in Paris. It is suggested that I be chairman of each council as representative of the United States. Only suggestion of extending powers is to include questions relating to finance and war trade with neutral countries. These questions particularly those relating to exchange necessarily involved in the main questions for consideration of which council was formed. It seems probable that to some extent at least the two councils will have the same personnel. Colonel House and I favor the proposed division principally as means of satisfying apparent strong desire of French that portion of work originally planned for Inter-Ally Council should center at Paris instead of having all center at London. It is distinctly understood that the work of both councils will be recommendatory only and that finance ministers of governments represented in council will retain full freedom of action. Of course, European powers would in any case be free to have their delegates in these councils consider the extension of authorization above indicated but before taking part as United States representative in such organization prefer to have matter distinctly understood by you and to have your approval. Please cable promptly whether you concur. Crosby.