Letter from John W. Dulanty to Joseph P. Walshe (Dublin)
(Secret and Confidential) (Copy)

I¹ hear confidentially from a dependable source that the experts in the British Ministry of Agriculture are at work investigating the possibility of the British taking some more cattle from us on the basis of our paying the existing duty plus a small levy.

The experts are doubtful about the markets being able to take even another ounce of beef. The Minister, however, thinks that this is not an impossible assumption and is pressing for a report on the basis indicated.

If the proposal reaches us our reactions will be governed by several factors, one manifestly being the amount of the levy. But there are one or two aspects of a levy that may be put down here in the meantime.

The British are unfeignedly keen on a levy throughout all meat supplies in preference to the more difficult method of quantitative restriction.

At present we occupy a kind of mid-way position between Ottawa agreement countries and foreign countries. As from the 1 April 1935 either a levy or restriction will be functioning and the British are busy urging on both Dominions and foreign countries the merits of the levy plan. It might help them in their negotiations to say that the principle of the levy had already been agreed with us.

If, as seems highly probable, the levy principle is accepted by all the meat supplying countries it might be advantageous for us to agree to a levy early on in what promises to be a universal plan and at a time when it probably suits England's book to make such an arrangement.

Nothing has been put to the Cabinet as yet but if the investigation now going on works out as I believe Mr. Elliot hopes it may, the experts' report will go to the Cabinet next Wednesday 14th November.

No date was mentioned for the beginning of the scheme, assuming it came to fruition, but presumably it could not be earlier than some time in January.