When Mr. McLaughlin of the American Legation came to see me on the 9th instant on his return from the United States he told me that our recent note about German capital assets in this country had been considered by the American authorities concerned who had decided not to carry the matter any further.¹ They seemed satisfied that any German capital assets which existed in this country were insignificant in amount and they accepted the view that, in any case, the Irish Government would have prior claim to any benefit to be derived from their liquidation on the foot of our unsatisfied claim for bomb damage.

Mr. McLaughlin went on to say that this seemed to dispose of the whole question of reparations so far as Ireland was concerned except for one small item. The Legation had still on hand a sum of about £1,000 which was realised from the sale of the furniture and other effects of the former German Legation in Northumberland Road. They were anxious to get rid of this sum, in one way or another, in order to close the file. They would have to agree the manner of its final disposal with the French and British authorities and they would also have to be sure that whatever they did, did not give the Russians cause for legitimate complaint. Subject to these considerations, which were being examined in the State Department, the disposition of the American authorities was to hand the sum over to the Irish Government to be credited against our claim for bomb damage. Mr. McLaughlin asked whether I could give him any idea of what we would think of such an arrangement.

I told Mr. McLaughlin that I did not think we would wish to be in a position of actually claiming that the sum should be paid over to us but that, if the Allied authorities agreed on the course he suggested and offered us the fund, I thought the gesture would be appreciated and the offer would be accepted. As he knew we were about £350,000 or £400,000 out of pocket as a result of war damage done here by the Germans.