4.
 
between them. This Council would keep the Supreme Council informed and would refer to the
latter questions of policy for which a decision of the Supreme Council might be necessary.
     As said above, the above scheme is simply an adaptation or an extension to present
cirumstances of the organization which, under the pressure of difficulties and after considerable
waste of time, our two countries had to establish about the end of 1917. Our aim to-day is to
tackle the problems at once and before they are forced on us by the pressure of events.
 
     In the execution of the programs, it is likely that the main difficulties will arise in
connection with shipping and finance.
     As to shipping, we have the experience of the last war to guide us.
     It is obvious that France will be short of shipping and therefore that a certain balance will
have to beprovided for her imports. This problem might not become so acute in this war as it was
in 1914-1918, since the Admiralty, giving us the lead by applying immediately the methods
adapted at the end of 1917, appears optimistic as to the limited scope of submarine destruction.
Nevertheless there will be a shortage. The difficultly in the last war was solved, after three years
of disorderly negotiations and much trouble, by an agreement made in November 1917, and it
would greatly simplify everything if we reverted to the principles then adopted.
     As to finance, the difficulty is going to be the limited resources of gold and foreign
exchange of our two countries. Indeed the problem of financing foreign imports will be an
important one which never existed to a similar extent in 1914-1918