With reference to your personal letter of the 28th July,¹ regarding the Russian jewels, I am directed by the Minister for External Affairs to inform you that a note in the terms agreed was addressed by the High Commissioner to the Russian Ambassador in London² on the 30th July,³ in accordance with the Government decision of the 12th July.⁴

Mr. Dulanty has now received a letter from the Soviet Ambassador, of which a copy is attached, stating that 'although this transaction has not been done in the proper way', the Soviet Government recognises the sum of $20,000 advanced by Mr. de Valera to Mr. L.K. Martenson in 1920 as its loan and is ready to deposit the amount to the account of the Irish Government.

On the assumption that the Government will decide to accept repayment of the loan and to return the jewels to the Soviet Government, I should be glad if you would be good enough to furnish the views of the Minister for Finance as to how and into what account the Soviet Government should be asked to repay the amount of the loan.