'Note of Discussion at Treasury - 21st June, 1948 (afternoon)'

Mr. McElligott and Mr. Hogan interviewed Mr. Rowe-Dutton at the Treasury at 4.30 p.m. on 21st June. Mr. Owen and Mr. Curran of the Treasury were also present.

The discussion centred on the terms of a draft communiqué to be issued covering the agreement on dollar requirements. Mr. Rowe-Dutton was at first inclined to suggest some maximum figure over a period but it was generally considered unsatisfactory. He next suggested the limiting of the currency, on an agreed understanding, to three months or six months, but this was objected to by the Irish representatives on the ground that the Chancellor's assurance had been given without any limitation as to time. Mr. Rowe-Dutton admitted that any communiqué should be read in conjunction with the agreed note as to what the Chancellor had said on the previous night, but it was mutually agreed that it would not be practicable to include that assurance in the communiqué as it would have embarrassing repercussions both in Washington when ECA were considering the amount of accommodation to be given to Ireland and also in relation to the U.K. dealings with India and other sterling area countries. Eventually suggestions from the Irish side for an amendment of Mr. Rowe-Dutton's draft communiqué were accepted. These amendments were mainly directed towards ensuring that the terms of the note would be consistent with the understandings in the Hogan-Clarke correspondence of February, 1948, and with the assurance given by the Chancellor, and also that Irish requirements for wheat and maize would not be taken into account in calculating the agreed limit of Irish dollar expenditure after the 30th instant. The text of the note as finally agreed has been circulated and is not annexed hereto. It was subsequently agreed by the Irish and British Ministers and published as part of the official communiqué on 22nd June.

A shorter discussion took place in relation to the terms and conditions of an E.C.A. loan. Mr. Owen read the text of a telegram which had been received from Washington in regard to the procedure to be followed with the ECA and the Export and Import Bank. The information corresponded very closely to that which we had been given by Mr. Wayne Taylor in Washington. It was agreed that Mr. Hogan would have a further discussion with Mr. Owen on the following day.

Mr. McElligott told Mr. Rowe-Dutton that, arising out of the statement made by the Chancellor on the previous night, the Minister for Finance was anxious to know how far he could give public information bearing on the position of the reserves and other matters as it might be necessary for him to be in a position to answer questions in the course of Dáil discussions. The particular points that he would like to deal with covered (a) the figures dealing with the present position and prospects of the reserves, (b) arrangements between the U.K. and other sterling area countries and (c) the sacrifices made by and the problems facing the U.K. herself, arising out of the critical position of the reserves. The Minister would like to know how far he could speak on these points without a breach of confidence or damage to U.K. interests. Mr. Rowe-Dutton promised to speak to the Chancellor and furnish a note on the point.