“4. All questions connected with permission for the entrance and exit of members of the staff of the British and American representatives in Hungary will be decided on the spot by the President of the ACC within a time limit of not more than one week.
“5. The bringing in and sending out by plane of mail, cargoes and diplomatic couriers will be carried out by the British and American representatives on the ACC under arrangements and within time limits established by the ACC, or in special cases by previous coordination with the President of the ACC.
“I consider it necessary to add to the above that in all other points the existing Statutes regarding the ACC in Hungary, which was confirmed on Jan. 20, 1945, shall remain in force in the future.”
ANNEX II
Use of Allied property for satelite reparations or “war trophies”
1. The burden of reparation and “war trophies” should not fall on Allied nationals.
2. Capital Equipment. We object to the removal of such Allied property as reparations, “war trophies”, or under any other guise. Loss would accrue to Allied nationals as a result of destruction of plants and the consequent loss of markets and trading connections. Seizure of Allied property makes impossible the fulfillment by the satellite of its obligation under the armistice to restore intact the rights and interests of the Allied Nations and their nationals.
The United States looks to the other occupying powers for the return of any equipment already removed and the cessation of removals. Where such equipment will not or cannot be returned, the U.S. will demand of the satellite adequate, effective and prompt compensation to American nationals, and that such compensation have priority equal to that of the reparations payment.
These principles apply to all property wholly or substantially owned by Allied nationals. In the event of re-
