No. 451 NAI DFA Secretary's Files P130
'Note of Conference'
1. Anglo-Irish Joint Committee
2. European Recovery Program
Dublin, 27 November 1947
- Mr. McElligott presided over a conference in his room on 25th November, 1947; also present, Messrs. Leydon, Williams, Boland, McCauley, Ó Broin, Nagle and Hogan. He said it was desirable, as a matter of some urgency, that steps should be taken to implement the understanding reached at the London Discussions that a joint committee of officials should be established for the purpose of ensuring continued co-operation on the lines agreed upon by Ministers. He outlined the purpose of such a committee as being, in his opinion, to review the progress made in implementing the measures recently agreed upon by the two Governments and also to consider from time to time other matters in regard to which it might be found expedient to concert measures designed to serve the mutual economic interests of both countries and, in particular, to assist the expansion of production in Ireland. In the latter connection, Mr. McElligott referred to the Taoiseach's recent statement in the Dáil that one fundamental point of importance that had emerged from the London Discussions was acceptance by the British of the principle that increased Irish production was of advantage to Britain and to the sterling area as a whole; it would be one of the functions of the committee to ensure that practical effect was given to that understanding. As regards the 'terms of reference' of such a committee and the scope of its functions, Mr. McElligott recapitulated the discussion on that matter between Mr. Rowe-Dutton and Mr. Hogan on the 7th November.
- Mr. Boland said that on the previous day Mr. Norman Archer had telephoned from London to the effect that the CRO would like an expression of views from the Irish aide as to the scope of the committee's functions, as to the frequency of its meetings and as to the chairmanship. The British suggestion was that the committee might meet once a quarter and that meetings should be held alternately in London and Dublin, the chair to be taken by the CRO in London and by D/EA in Dublin, but the Board of Trade pressed the point that the chairmanship should be held by them. It was agreed that the Irish view should be in favour of the chairmanship being held by the CRO and D/EA according to the place of meeting. It was also agreed that there need be no fixed frequency for meetings and that the volume and urgency of business should decide that issue from time to time.
- Mr. Ó Broin raised the question whether the ordinary relations and negotiations between Irish and British Departments should continue notwithstanding the establishment of a joint committee. Mr. Leydon thought that it would be essential that the committee should be in touch with all aspects in the trade and economic relationships between the two countries, but after discussion it was generally agreed that there could be no objection to inter-departmental relationships being conducted as at present subject to the committee being informed of the progress and outcome of any questions which were being dealt with in that manner and that, where Departments failed to reach agreement, the point would be referred to the committee.
- Mr. McElligott raised the question of the departmental representation on the joint committee. On the British side representatives of the Treasury, the Board of Trade, the CRO and of the Ministries of Food, Agriculture and Supplies would probably be present, and on the Irish side it was essential that the Departments of Finance, Industry and Commerce, Agriculture and External Affairs should be represented. It was agreed that it should be suggested to the British that the permanent heads of the Departments concerned should be nominated to serve on the joint committee with the addition of a deputy or deputies who would attend the meetings in case the permanent head was unable to be present or did not find it necessary to attend a particular meeting on account of the nature of the agenda.
- As regards the statement of the committee's functions it was agreed that the suggestion to be made to the British should be a form of words which would describe in broad outline the nature and purpose of its work. It would not be necessary to have any precise or detailed statement. It was agreed that Messrs. McCauley and Hogan should draft a statement on these lines for circulation to the Departments concerned.
- Mr. Boland said that it was now certain that American aid for Europe would be approved by Congress on the broad lines of the proposals put forward by the Administration. It was imperative that Ireland's claim for a share in the benefits under the European Recovery Programme should not fail on account of omission to present adequately the Irish case and viewpoint in regard to some parts of the detailed plan likely to be put before Congress. There were matters in regard to which any view which Ireland might have should be expressed before final decisions were taken in the USA, e.g. the proposed financing of long-term capital development by means of loans from the International Bank, and the method of control and use of local currency funds arising out of direct American aid. There was the danger, for instance, that the British might claim that such local currency funds held in Ireland should be applied in reduction of our claim against Britain on foot of accumulated sterling balances. Mr. Boland suggested that it was essential that a committee or study-group of representatives of the Departments interested should be formed to examine these questions in detail and submit recommendations as to the representations that might be put forward to Washington. Such a committee should also be charged with the examination of matters arising out of the ITO proposals and questions arising out of the suggestion that Ireland should join the International Monetary Fund and Bank. There was also the point that the State Department in Washington appeared to have unfavourable information regarding Ireland's economy and economic policy; it would be necessary to prepare corrective briefs on these points. Mr. McElligott agreed that, while it was desirable that these matters should receive attention immediately, it was difficult to spare the staff for intensive work on the problems. He suggested that Mr. Boland should prepare a memorandum setting out the points which he thought required special consideration and that on that basis, further consideration could be given to the best machinery to be set up to achieve the desired results. Mr. Leydon suggested that Mr. Boland might undertake the chairmanship of a small interdepartmental committee which would handle the questions involved. It was generally agreed that the personnel of such a committee should be drawn from those officers who would be nominated on the panel of Irish representatives on the Anglo-Irish Joint Committee, having regard to the bearing which direct assistance to Ireland under any ER Programme would have on questions arising in relation to supplies of essential requirements by Britain.
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