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A USA vs Greater European Alliance, led by UK and Germany in 1916 in theory is asking for big, very big trouble, as the USA alone cannot match the naval and industrial power of the combined German and British empires. It still was growing, but a war on the given scale was too much for it yet. (in 1940, it was in a much better condition to be succesfull, but in 1916 it was still too early.)

1. How would you fight the war if your the US ?
If war came to be, I would seek an uneven sort of battle, as I would know that Brittain still would rule the waves and the relatively new USN was not a match yet for this sort of opponent, badly outnumbering and outgunning the USN in 1916, even without the Germans. Try the german tactic of submarinewarfare would be ideal to frustrate the commercial travic of the Allies and get the enemy fleet as far out of the homewaters as possible. Surface raiders can be used too, to force the enemy to draw away forces to other parts of the world. Do not, repeat, NOT engage the British fleet in a gunbattle, like Jutland, as you simply lack sufficient numbers of battleships in the USN.
Negotiate alliances with other nations, when possible to courner the UK/German alliance in other parts of the world and try to take Canada with the US army. Perhaps use part of it as a negotiationdeal for possible allies (France???)

2. How would you fight the war if your the UK/Germany?
Escort the German Army with transports across the Atlantic to Canada and put the Grand Fleet on the US Eastern coast to blockade and attack the harbours. Provoce the USN to get out of Norfolk and give battle to the Grand Fleet, where the Royal Navy will have a vast superiority in numbers of both ships and guns over the smaller USN. (If needed the German Hochsee Flotte can remain in Europe, as the German vessels lack range and are better suited for the shallower North Sea, rather than deep ocean work.) The Russians can also be on the UK-German side, if it could be tempted to get Alaska back. The small Russian Pacific Fleet is more than a match for the USN forces in the Pacific of the time, as the USN fleet is primarliy locked in the Atlantic, due to the Grand Fleet. The vastly superior German Army with lots of artilery and men can invade the USA from Canada and crush deep into the USA industrial heartland, before the US Army can react in time, with sufficient numbers of troops. (By doing so, the Allies will also prevent the USA from attacking Canada itself, as the burden of defense of its own heartland is more urgent.

3. What about the politics involed?
The European Diplomatic Corpps will try to use its weight to force France into an alliance, or neutralitypact towards them, to isolate the USA internationally. The Alliances were custom to this sort of diplomacy, while the US diplomats were not, due to its old isolationist posture in the past. Smaller powers, like Spain, Netherlands and Austria-Hungaria would be treated simmilarly, and the independant Latin American nations could be peruaded to join the fight against the USA, especially Mexico.
The US Diplomats will have to be very clever in counteracting this sort of threath, as they are alone, without allies and power to be used to force up their will.

a.How could the US say get Russia to join them? Promise to give them bacK Alaska? recognise thier claims in China?
The Russians are not very likely to join the USA as it is an enemy, seeking possibilities to take profit from earlier defeats, so a weak possitioned USA is more like a tempting target than an ally.
b. How could the US get the Japanese to help them? Hand them the Phillipines? give them carte blanche to go after other territory in S.E. Asia?
Japan already was oppertunistic and would like to pay back the USA for its hummiliation in the 19th century. Japan wanted the Pacific for itself and would seek out every opportunity to get rid of the USA as a compeditor, just a it did to Russia in 1904.
c. What about France? Promise them back Quebec? Providing we capture it of course
just use some imagination.
France is the uncertain factor, as it is definetely an opponent of the UK and Germany and still is a military power of some importance. It could not fight both Germany and UK at a single time, but against one, it was a serious opponent. If the USA surprised Canada, before the Allied reenforcements could be there, it could use Quebec as a pay back item for triggering France to get loose in Europe, tying down the Allies in Europe, rather than giving it a free hand in teh New World.

4. Now the US had reasonable size navy in 1916 but a rather small army so my question is
a. Do you go all out and try & build the biggest navy possible having maybe a small-medium type army?
b. Try to strike some sort of balance?
c. maybe just try to build a little bigger navy(maybe as far as BB's are concerned but build far more subs & such) but mobilise the biggest army that you can to protect the homeland.