1 0 to 1 35 1 0 is particularly preferred the molar ratio of polyethylene glycol to polyhydric phenol itself is also critical in order for the process to yield water dilutable compositions the process gives acceptable compositions in the absence of any polyhydric phenol but when keeping the total moles constant the amount of polyhydric phenol is increased with a concomitant decrease in the amount of the polyethylene glycol it was found that water dilutability was no longer achieved if the molar ratio of polyethylene glycol to polyhydric phenol exceeded 1 0 1 5 thus to achieve water dilutability the moles of polyethylene glycol to moles of polyhydric phenol in the process of this invention must be in the ratio of 1 0 0 0 to 1 0 1 5 the first step of the process where the aromatic polyglycidyl ether is reacted with the polyethylene glycol can be carried out at a temperature in the range of 150 u00b0 to 250 u00b0 c but preferably at 200 u00b0 to 230 u00b0 c the reaction is carried out with good agitation under an inert atmosphere such as nitrogen or argon the course of the reaction is monitored by taking aliquot samples and measuring the epoxy equivalent value per 100 grams the preferred aromatic polyglycidyl ether has an initial epoxy equivalent in the range of 0 51 to 0 54 the final epoxy equivalent values of the water dilutable hydroxy containing adducts are usually in the range of 0 001 to 0 10 epoxy equivalents 100 grams and preferably in the range of 0 015 to 0.