1. The Aide-mémoire just received from the American Minister,¹ coupled with the well-known demand of the Allies for Germany's 'unconditional surrender ', makes it fairly clear that the intention is to conclude the war by virtually annexing the territories of the German Reich, instead of entering into peace negotiations with a Government representing the German State or people.

2. The conclusion of the war by conquest and subjugation would be achieved as soon as all German territory was effectively occupied and the German State, at least temporarily, had ceased to exist even in name.

Such a way of terminating a war between Great Powers is unusual – it is difficult to imagine 'Germany' ceasing to exist, much less being 'annexed' – but history provides numerous examples of wars between or against small States (Dukedoms, Papal States etc.) being ended in this way. Two modern examples were Britain's annexation of the Orange Free State and the South African Republic in 1900 and Italy's annexation of Abyssinia in 1936.

3. Assuming that Germany will now be brought under the sovereignty of the United Nations, without any treaty parleys whatever, our position as a neutral is clear. Instead of recognising the right of the German Reich to own property in Ireland, we must recognise the right of the United Nations to take over that property. Insofar as the property remains the property of friendly foreign States, we must endeavour to protect it against damage.

4. Insofar as the former German Reich owes us money, we ought to be able to assert a prior lien on former German State-owned property within our jurisdiction. A lien of that kind could not easily be argued to pertain to property of no particular commercial value such as Legation furniture, archives etc., but there may be other property in our custody (e.g. interned material) against which we might stake a claim.

5. In all this matter, before we take any positive action, we are, it is submitted, entitled to be fully assured that the military and political situation is now such that the Allies are really entitled to lay claim 'by right of conquest' to German State-owned property here.

Strictly speaking we might insist on confirmation by Dr. Hempel of the alleged position, but failing that, it would seem reasonable to expect a more detailed statement of the factual position than the American Aide-mémoire contains.

6. It is interesting to observe that the Americans themselves did not act upon the German Ambassador's notification of the annexation of Austria in 1938 until they had learned of it from the Austrian Minister; the Department of State then acquiesced in the taking over of the Austrian Legation by the German Embassy and announced the news, in an official press release, as coming from the Austrian Minister at Washington.

In the case of Italy's annexation of Albania in 1939, the American Government also took as the source of their news of that transaction the authorities of the disappearing State and not the Italian Authorities. The Albanian Foreign Minister told the American Minister at Tirana of the treaty of 3rd June 1939 with Italy; the Department of State recalled the Minister and then withdrew immunities from the Albanian Minister at Washington.

7. Presumably, the position will be fully clear in a very few hours. It may then be hoped that the German Minister will regularise our position by informing us of his State's disappearance as an international entity and the seizure of its sovereignty (and all the rights appertaining thereto) by the victorious Allies.

In that event we need only announce the news, as coming from Dr. Hempel, to our own public and allow the Allied authorities here to take custody of the German Legation premises and contents with a minimum of interference from our side.

No doubt, we may wish to see that the transfer is effected peaceably and if the American Minister convinces us that there is a likelihood of trouble or risk to person or property we ought to take steps to safeguard him and his rights. But we might also be asked to intervene to protect purely privately-owned German property (e.g. Dr. Hempel's private effects) and our position would be happier if the two parties could settle the matter without our coming into it at all.

It will be recalled that we did not have to supply any police protection or other assistance at the time of the transfer of the Czech-Slovak Consulate to the German Legation.

8. If the German Minister refused to acquiesce in the transfer and if the Allied Governments were able to convince us (which they have not done by the Aide mémoire) of their indisputable title to the Legation property by right of conquest, we might be compelled to lend them the necessary force to implement their right. However, at the moment of writing, we have no reason to expect that Dr. Hempel will decline to face such facts as may materialise in the next few days.