In spite of the fact that at the beginning of trench warfare, France had lost behind the German line 80 per cent of her normal pig-iron production, and 70 per cent of her steel production, it has been possible by the utilization of lower grade ore in other districts of France, and which were not exploited to any extent previously, to increase the steel production of the country 100 per cent over that of last year. The interesting fact regarding this is that of the production which has been cut off the larger part in pig iron is of so-called Thomas iron (non-Bessemer), and in the case of steel, mostly "Martin" or acid open hearth. Neither of these products enters to any considerable extent into the manufacture of projectiles. The plants in the center and southern part of France were already producing the special qualities of steel required for artillery use, hence the amount of special quality steel brought in from foreign countries, in both the raw and semi-manufactured state, was an immediate necessity for the country at outbreak of hostilities. It is also noticeable, and based on information obtained from leading steel manufacturers, that many idle and in some cases abandoned plants have been rehabilitated and utilized as far as possible. As a matter of fact, I am told that there is not a single idle plant of any kind formerly engaged in the manufacture of fabrication of steel that is not now in full operation, either in its original form or by being transformed into a munitions plant. It is only too evident that the present pre-occupation of steel manufacturers is to bend every effort to assist in the final military victory of the Allies. However, I met steel manufacturers, conversing with them freely, and their mental attitude is that when the military victory has been achieved and France has again entered into possession of her own, they are determined to succeed in producing a close union with the British producers and thus prevent a rapid return of German industrial prosperity. With this fact in mind, it seems clear to me that the United States will have to make up its mind in which field it will choose to work. It certainly will be impossible to continue to hold a position of theoretical neutrality. Welfare work in Le Creusot is in a high state of efficiency. Comfortable modern dwellings are furnished the employees at low rental. Hospital facilities are of the best and everything is done to bring the workman in close and harmonious relations with his employer. It has been suggested that I embody in this report something with reference to the mines in France, but as the data concerning them has been printed in public documents of the French Minister of Mines, I will omit this detail with the single word that these reports include minerals of all kinds. I am indebted to John Weare, representative of the United States Steel Products Company in France, for valuable information in the preparation of this brief report.