Extract from 'Minutes of a meeting held in the Office of the Minister for Economic Affairs, Gt George's Street, SW1, on Tuesday, 4th November 1947 at 10 am'

PRESENT:

THE FOLLOWING WERE ALSO PRESENT:

SECRETARY:
Mr. T.A.G. Charlton

THE MINISTER FOR ECONOMIC AFFAIRS said that he hoped it would be found possible to reach agreement on a number of points which had been mentioned at the previous meeting held on the 3rd November (GEN.194/2nd Meeting).¹ He suggested that it would be convenient if these points were dealt with seriatim.

(a) Establishment of a Joint Standing Committee
Reference was made to the suggestion put forward by the Prime Minister at the previous meeting for the establishment of a Joint Standing Committee, consisting of officials of the two Governments, which should meet from time to time in order to consider any difficulties which might arise in carrying out the objective of increasing trade between the United Kingdom and Éire.

The Meeting:-

1. Agreed that steps should be taken by the two Governments to set up a Joint Standing Committee on the lines suggested as soon as possible.

(b) Membership of the International Monetary Fund and the International Bank for Reconstruction and Development
THE MINISTER FOR ECONOMIC AFFAIRS expressed the hope that the Éire Government would agree to become members, both of the International Monetary Fund and the International Bank for Reconstruction and Development. It was in the interests of the sterling area as a whole that each of its members should tap all possible sources for dollars. Drawings could be made from the International Monetary Fund to meet current payments, while loans could be made from the Bank for the purchase of capital equipment required for development purposes. Thus, if the Éire Government decided to join these two organisations it should be possible to effect a considerable reduction in her net dollar drawings from the sterling area pool during the period 1st October, 1947 to 30th June, 1948.

MR. LEMASS referred to the difficulties with which his Government was faced in preparing firm estimates of their dollar requirements. While he was not able to commit his Government, he was confident that they would give very careful consideration to the desirability of becoming members of the International Monetary Fund and the International Bank for Reconstruction and Development.

(c) Éire's dollar requirements
MR. ROWE-DUTTON said that he understood from the previous meeting that the Éire Government was prepared to reduce its net dollar demands on the sterling area pool to a figure of £14 million for the period 1st October, 1947 to 30th June, 1948. This figure might be reduced to £12 million in the event of wheat being made available from Australia. If Éire became a member of the International Monetary Fund, he felt that any drawings from that Fund should be used in diminution of Éire's demands on the sterling area pool. Mr. de Valera had referred to the urgent need for obtaining capital equipment for the development of Éire's industry. If the Éire Government became a member of the International Bank, it should be possible to finance their requirements of capital equipment from the dollar area by a loan from the Bank which could be used anywhere. It would facilitate planning by the United Kingdom Government if the Éire Government would forward a break-down of their proposed dollar expenditure programme under general heads. This programme could then be considered in detail by the Joint Standing Committee of Officials as need arose.

THE MINISTER OF FOOD said that he did not anticipate any difficulty arising in the procurement of £2 million worth of wheat from Australia and felt it might be assumed to be a fait accompli for the purposes of these discussions.

The Meeting agreed that:-

1. The Government should make every effort to limit their dollar requirements to £14 million for the period 1st October, 1947 to 30th June, 1948, this figure to be reduced to £12 million in the event of the negotiations for Australian wheat being successful.
2. In the event of Éire becoming a member of the International Monetary Fund, any drawings from this Fund should be used in diminution of Éire's net dollar demands on the Sterling Area Pool.
3. In the event of Éire becoming a member of the International Bank, any loan which was obtained from that organisation should be used for the purchase of capital equipment.

[matter omitted]