This morning, Mr. Gray, the American Minister, called to the Department by arrangement (at his request). He talked about the transfer, and I suggested that he should give us a formal note stating that the United Nations had assumed the powers and responsibilities (the word 'property' was subsequently suggested by Sir John Maffey, the British Representative, in substitution for the word 'responsibilities' which he regarded as too comprehensive) of the Government of Germany, and that he was now prepared, on behalf of the United Nations, to take over the premises of the former German Legation.

Mr. Gray immediately agreed.

I told Mr. Gray that, on receipt of that note, we should be ready to hand over the keys of the premises to his Secretary, who would be accompanied to the premises by the Assistant Secretary of this Department and Dr. Nolan.

Mr. Gray enquired whether the late German Government had transferred any German bullion to our Government and whether there were any German Government funds in this country.

I replied that we regretted that we had no German bullion and no German Government funds. If we had such bullion or funds in our possession, we should have recouped ourselves for the damage done in the North Strand and elsewhere by German bombs and for the loss of our ships.

He asked a few more questions about the German funds which had been transferred to us.

In this case, I replied that we had completed the operation of legally taking over these debts long before the war was ended and the money collected on foot of them was irrevocably ours.

Mr. Gray asked some further vague questions in regard to German funds which might belong to us.

I put him off with a general evasive reply but it struck me that his questions were prompted by some statement made to him by a third party who probably suggested that he should endeavour to probe into the matter.

In the afternoon, Mr. Colladay, the Secretary of the American Legation, called and handed me the statement requested from Mr. Gray. I gave him the keys and he signed a receipt. Both these documents are on the file.