'Resumé of subjects dealt with by Departments in reply to query concerning "ties" with the Commonwealth.'
(Confidential) (Copy No. 1)¹

FINANCE:

MEMBERSHIP OF THE STERLING AREA
This involves ties with all Commonwealth (including e.g. Iraq, Transjordan, Iceland and Faroe Islands) except with Canada and Newfoundland. Members of Area agreed since September, 1939, to pool their resources of foreign currencies and to moderate their drawings on the pool. Ireland benefits by freedom to transfer funds and Irish and British securities between herself and U.K. We also obtain reasonable foreign currency requirements. However, a special new arrangement [was] made in June, 1948 re dollar drawings from pool during Marshall Aid period.

EXCHANGE CONTROL WITH U.K.
Since September, 1939, Ireland and U.K. (inclusive of Six Counties) operate as a unit for the control of import and export of bank notes, currency notes, bearer bonds, etc. This means that these documents may move freely within Ireland and U.K., which is a great convenience for numerous travellers. Foreign exchange is provided by the U.K. to U.K. firms who purchase outside Sterling Area on behalf of Irish firms and Irish firms exporting goods on behalf of U.K. firms outside the Area are allowed to receive payment in sterling, provided they comply with formalities to ensure that foreign exchange is surrendered to the pool by the U.K. principal. Similarly U.K. firms exporting for Irish firms can get paid in Sterling. Irish goods being exported outside Area are accepted for trans-shipment in the U.K. provided that the U.K. Customs are satisfied that Irish Exchange Control complied with.

CURRENCY AND COINAGE
Under the Currency Act, 1927, Irish legal tender notes are issued by the Central Bank against money which is legal tender in Britain and to the Associated Banks (Irish Commercial banks) against cash in London.

English notes and token coins circulate freely here, although there is some doubt if the latter are legal tender (proposed to exclude them from that status in Coinage Bill, 1948). Irish legal tender notes and bank notes do not circulate in Britain but can be readily exchanged through British banks.

COMMONWEALTH PREFERENCES
(See under 'Revenue Commissioners').

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DAMAGE TO PROPERTY (NEUTRALITY) COMPENSATION
British have paid £10,300 in respect of compensation made for personal injuries etc; of which their mines etc., were the cause. About £25,000 is soon to be claimed and, unless more British mines do damage, this should close the matter.

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REVENUE COMMISSIONERS

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CUSTOMS AND EXCISE
Commonwealth preference in general is based here and in U.K. on Sect. 8 of Finance Act, 1919 as suitably adapted from time to time on our side.

The Section covers goods consigned from, produced in, etc., the British Empire and, while still workable in our law, might need amendment in Britain to cover Ireland. The Geneva Agreement (Oct. 1947) receives then-existing Anglo-Irish etc., preferences. Following the Agreement with Britain in 1938, the British passed the Éire (Confirmation of Agreements) Act, 1938, to bring us within their Ottawa Agreements Act, 1932, thus relieving us from their British Import Duties Act, 1932, which imposed duties on non-Dominion products.

Preferences given by us under our Customs Duties (Preferential Rates) Act, 1934, to United Kingdom products.

Somewhat similar preference arrangements exist between Ireland and the other Commonwealth countries since 1932.

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PUBLIC WORKS

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LOUGH AND RIVER ERNE DRAINAGE DISTRICT
There is a mutual arrangement with the Six Counties costing us £60 this year.

INDUSTRY AND COMMERCE

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ERNE HYDRO-ELECTRIC SCHEME
We are co-operating with Six Counties.

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INDIVIDUALS IN INDUSTRY
British subjects do not require employment permits here. The Control of Manufactures Acts 1932-34 are not confined to British nationals.

The Control of Imports Acts are dealt with, so far as the U.K. is concerned under Trade Agreements of 1938-48. British Trades Unions do not enjoy any privileges here that Unions of other countries might not, at least, apply for.

Certain firms in Ireland, e.g. Dunlops, Floor Coverings Ltd., and probably many others get facilities from the British Associates, such as loan of plans, moulds etc. For example, the British United Shoe Machinery Company owns the machinery of, at least, 23 of our boot factories. They lease the machinery and service it.

Irish workers are at present trained in Great Britain for certain new industries. They would, of course, go to Switzerland on the stagiaire arrangement we have with that country.

Commercial travellers of no countries require employment permits.

CO-OPERATION IN TRADE MATTERS
There is a great deal of friendly co-operation between Ireland and U.K. in trade matters. In October, 1946 and March, 1947 Ireland was invited by Britain to attend Commonwealth Conferences at London to discuss implications of proposed International Trade Organisation. Ireland also invited to Geneva to be informed of the progress made by British in tariff negotiations in July, 1947, and to Commonwealth discussions at Brussels re European Customs Union Study Group and, in Havana, re the International Trade Organisation.

Irish officials deal directly with British Board of Trade on supply matters and operations of British import restrictions.

An understanding (Ministry of Fuel and Power letter of 29th July, 1948) is to be put into formal notes re 1,570,000 tons of coal, coke and manufactured fuel which under Agreement of 1948, British are to make available in 1949. Of this 1,000,000 tons will be of reasonable quality and 570,000 inferior grades. An understanding that Ireland will be free to impose quantitative restrictions, for protective purposes, on 'Free List' goods (Schedule II of 1938 Agreement) is to be finalised. An assurance that British do not intend to abandon duty-free entry of Irish eggs, butter and poultry (or other agricultural products) is to be finalised.

A proposal for Joint Purchasing arrangements with Britain for certain commodities is under consideration. Confidential reports are received through the Department of External Affairs re British foreign trade and currency negotiations.

Britain allocates barley for Guinness and other Irish brewers. Guinness may export resulting product everywhere; other brewers export to England.

We co-operate with Britain re wheat purchases in Australia and maize in Argentine.

JUSTICE

CITIZENSHIP RIGHTS IN BRITAIN
Position to be unchanged under new British Nationality Act so as to ensure existing rights to Irish citizens in Britain while involving only 'local allegiance'. British subjects in Ireland are declared to be 'aliens' under the Aliens Act, 1935, but are exempted by Order under Section 10 of that Act from restrictions imposed on aliens. This exemption does not confer any citizenship rights (e.g. franchise).

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EDUCATION

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CO-OPERATION REGARDING CHILDREN
British police furnish reports on suitability of persons in Britain who seek discharge to them of children or young relatives committed to Irish Industrial Schools. This practice has existed since before 1921.

We have been paying, on behalf of the British Defence Forces, allowances in respect of Servicemen's children who are detained in reformatories.

Payments were made in respect of 70 cases or so in 1945 but only one (£545) in 1948. Where the servicemen are in receipt of pensions from the British, sums for maintenance of their children in Industrial schools and reformatories are claimed by the Irish Inspector and paid, since 1925, by the British Ministry of Pensions. At present, between £700 and £800 p.a., is received from this source.

Allowances in such cases are also payable to schools under the British National Insurance Act, 1946. The Resident Managers collect about £100-£150 yearly from this source.

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DEFENCE

PURCHASE OF WARLIKE STORES
Irish orders for British supplies do not receive priority over those of countries allied to Britain in recent war.

TRAINING OF DEFENCE PERSONNEL
Irish Officers attend British military Courses and our Naval Cadets receive most of their training on British warships. Our Officers are not admitted to some secret courses, but get the same instruction as Officers of Commonwealth countries.

INFORMATION RE AIR-RAID PRECAUTIONS
British Home Office supply all kinds of publications etc. including much highly confidential matter to the civilian staff of our Department of Defence.

SUPPLY OF BRITISH DEFENCE FORCES LITERATURE
Apart from British Service publications, which are purchaseable, a large number of manuals, orders, instructions etc., some of which are confidential, are received here. Some of these are received on a reciprocal basis. We are allowed adopt British Manual as defence Force Regulations and, subject to acknowledgment, to reproduce matter contained in British Manuals.

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GOVERNMENT

RELATIONS WITH SIX COUNTY AUTHORITIES
Informal relations exist with the Six County Authorities for maintaining certain bridges, roads and canals which cross the Border. Both sides exempt the motor vehicles of the other from licence duty for up to four months stay, without the necessity of an international circulation permit.

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EXTERNAL AFFAIRS

USE OF BRITISH FOREIGN REPRESENTATIVES
The good offices of British diplomatic and consular representatives abroad are still availed of in default of Irish representatives. No payment for this 'protection' is made by the Irish Government but the persons immediately concerned are charged the usual fees, if any. We are endeavouring to build up a service of honorary consular officers outside Europe.