No. 234 NAI DFA GR 459/17

Letter from Michael MacWhite to Joseph P. Walshe (Dublin)
(M.P. 1008-21-29)

Washington DC, 3 July 1929

During my recent stay in New York, I had a long talk with the Directors of the National City Bank as to the possibility of providing funds for the construction of two or more hotels in the Saorstát. Many of the Directors, from personal experience in Ireland, are convinced of the necessity for better hotel accommodation there. Even the Vice President, Mr. W.W. Hoffman, who is going to Ireland in a few weeks time, could not make a reservation in any hotel nearer to Dublin than Bray, and some of his friends for want of hotel accommodation had to cut out Ireland altogether from their European programme. They were all of the opinion that thousands of pounds are being lost to the country owing to the lack of suitable accommodation. I mentioned the fact, which these people with scarcely any Irish background accept, that the Saorstát is becoming more and more the point of attraction for American tourists.

A few years ago, France was the centre of American tourist activities. This was to a great extent because so many Americans had been there during the war, and the friends and relatives of those wanted to see something of the battlefields and the devastated regions. With the reminiscence of the great war receding, the French tours have not the same appeal as of old for the people of this country.

On the other hand, the publicity that Ireland is getting here, the interest that so many millions of Americans have in the development of the Saorstát, and the fact that her scenic beauties are unrivalled is an incalculable asset. This asset can be capitalised if only proper hotel accommodation is available.

According to the experts of the U.S.A. Department of Commerce, American tourists spent eight million dollars in the Irish Free State in 1927. In 1928 the sum must have increased considerably, and judging by the number who have had Saorstát visas so far, their expenditures in 1929 cannot fall much short of $15,000,000. With an Irish Tourist Bureau in activity in this country carrying out an up-to-date publicity campaign, the number of Americans making Ireland their holiday ground could easily be doubled in the course of a year or two.

I submitted the foregoing and many other arguments to the Bank Directors, some of whom were surprised that there were no Irishmen sufficiently enterprising to take advantage of the situation.

I was asked what help the Government would give in floating a Company. I could not give any guarantee that the Government would do anything more than give it their blessing. It was a sound economic proposition in which the element of speculation was almost negligible. They saw no difficulty in putting up five or six million dollars in debentures, if the Government or the Irish public would be prepared to take half of them. Another suggestion was that the local authorities give the sites free, such as has been the case in Cuba. I could not give any encouragement that the Government would back any project materially.

As further discussions are to take place on this subject in the near future, I should like to know if there is any means by which the Government could help in the creation of a Company in case the money would be forthcoming on either of the foregoing propositions. Can there be a remission of rates on which material facilities if any could be given?

On my return here yesterday, I found a letter from Mr. W.W. Hoffman, Vice President of the National City Bank, awaiting me in which he stated: 'I cannot help feeling that something can be developed in connection with the matters on which you spoke'.

After leaving the National City Bank, Mr. Sheedy of the United States Lines, Inc., called to see me at my hotel. He told me that his corporation was vitally interested in the development of American Tourist trade with Ireland. They realize that they are losing patronage at the present time, as traffic is diverted elsewhere because they cannot guarantee suitable hotel accommodations in Ireland to their wealthy clients. They feel the time is rapidly approaching when they can keep a couple of up-to-date hotels well filled for nearly half the year with the passengers they transport in their own ships, and they are now making a preliminary survey of the possibilities by their hotel experts. In the course of two or three weeks, Mr. Sheedy wishes to meet me again as he will then be in a position to say exactly how matters stand.

It may be possible for me to get the National City Bank and the United States Lines to work together on the matter, but I must wait for two or three weeks to see how things develop before I take any further steps in the matter.

[signed] M. MacWhite


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