Memorandum for Government by the Department of External Affairs
'Customs Union Study Group'

1. There is attached hereto the text of a declaration to be made and published on the 13th September by the Governments of all countries joining the Customs Union Study Group set up by the Paris Conference on European Economic Co-operation. The Conference has already been informed that Ireland will join the Study Group.
2. The declaration does not involve any commitment to take part in a Customs Union. What the participating Governments have agreed to do is not to form a Customs Union or Unions but to examine the problems involved in their formation.
3. The proposed Study Group will give us an opportunity of explaining the special problems involved in the case of countries such as ours which are still in an early stage of their industrial development.
4. From one point of view it is a pity that the mandate of the Study Group is so narrowly limited to customs unions, ignoring other possible forms of European economic co-operation. There are specific reasons for that – reasons of a technical character arising out of the Draft Charter of ITO, as well as the fact that American public opinion has already singled out a Customs Union as the ideal solution of European economic problems.
5. Even within this mandate, however, the proposed study can do a good deal to further European economic co-operation. It can throw much light on the structure of European trade relations, and by so doing, suggest means for improving economic co-operation between European States. From that point of view, the constitution of the Study Group is an important gesture of European economic solidarity.
6. The declarations of the participating Governments contemplate the issue of invitations not only to other European countries but to such members of the British Commonwealth as may express a desire to take part. That is in accordance with the principle adopted from the very start by the Paris Conference which has been continually at pains to emphasise the non-exclusive character of its work. The only regret is that in spite of the efforts of the Irish and Portuguese delegations, Spain is not among the countries to be invited.

[Text of declaration]

During the course of the discussions of the Committee of Co-operation in Paris, it has been agreed that every available means should be found of promoting a stable and healthy economy in Europe within the framework of expanding world trade. As a contribution to the attainment of this objective, the possibility of forming a Customs Union in accordance with the principles of the draft charter for the proposed International Trade Organisation has been raised, and it has been recognised that decisions to form such Unions cannot be taken without preliminary study.

The Governments of Ireland, Austria, Belgium, France, Greece, Luxembourg, Italy, Netherlands, Portugal, Great Britain, Turkey, Denmark and Iceland have, accordingly, decided to create a Study Group for the purpose of examining the problems involved and the steps to be taken in the formation of a Customs Union or Customs Unions between any or all of those Governments and any other Governments invited to participate in the work of the Group. The Governments of Belgium, Luxembourg and the Netherlands have agreed to act as sponsoring powers. They have arranged for invitations to join the Group to be issued to other States and will convene a first meeting of the Study Group as soon as sufficient opportunity has been given for other States to signify their desire to adhere to the Group.

The Study Group will seek to establish appropriate relationships with the Interim Tariff Committee to be set up under the General Agreement on Tariffs and Trade, and with the International Trade Organisation as soon as it is established.