Letter from Seán MacBride to Paul Miller (Washington DC)

Dear Mr. Miller,
For some time past I have been considering Ireland's position in relation to the tapering off of Marshall Aid and trying to take stock of the lasting effect the Marshall Plan, while it still continues, could have upon our economy. The generous Aid which we have so far received has enabled us to tide over successfully what would have been a very difficult period and I think that the results achieved are a tribute to the concept which underlay the European Recovery Programme. As was inevitable, much of the Aid Programme was devoted to the fulfilment of day-to-day needs; this enabled us to repair some of the disastrous effects of war conditions upon our economy, and in particular upon our agriculture. As you know, a large proportion of the Loan Counterpart Fund has been committed to the Land Rehabilitation Project which is now gathering momentum; this Project, given proper technical application, will be of lasting benefit. While these results are very important, I have felt that, in many respects, our economy sorely needs a fundamental overhaul and that, if ECA were in a position to assist us in this task, the productive capacity of Ireland and its economic position could be radically improved.

In many respects the problems affecting Ireland's economy are very different from those affecting the economy of other nations which have participated in the Recovery Programme. We only gained control of our own affairs, after our War of Independence, in 1921. Until then, for reasons which are obvious, the developments of our economy had been stunted. The fact that, despite a very high birth rate, our population decreased by half in less than a century is a fair indication of the economic situation which existed then. The development which should have taken place following upon our emancipation in 1921 was retarded in the first place by the Civil War which was not merely materially destructive but was also disruptive insofar as long-term planning was concerned, and in the second place by our own lack of experience. These conditions were followed by the Economic War with Britain, which in turn, was followed shortly afterwards by World War II. To add to these grave difficulties, our country was partitioned and the industrial portion was cut off from the rest and added to the British economy. I mentioned these matters merely to indicate that it is only since the end of World War II and the inception of Marshall Aid that Ireland has had an opportunity of planning the development of her economy in a normal way. The task of economic development in Ireland is, therefore, different from that in most other countries; it is to repair the damage resulting from wartime conditions plus the planning of an integrated Irish economy to ensure the maximum utilisation of Ireland's natural resources. This latter task could never be seriously attempted before, and is really now being undertaken for the first time in our history.

It is this line of thinking which, after consultation with my colleagues in the Government, has prompted me to write this letter to you. It is the earnest desire of my Government to take every possible step to ensure the development of an economy here, the main aims of which will be to achieve the fullest possible production and to maintain full employment levels. In the light of international trends and of the lessons learned in the case of countries where such objectives have not been successfully maintained, my Government is determined to pursue an active policy of economic development in the fullest sense of the term.

If we are to succeed in this task we will require a very substantial amount of technical advice in every field of our economy. As I pointed out, we have not available to us the tradition and technical 'know-how' which other countries with longer experience of self-government have at their disposal. I consider, therefore, that in this process of recovery and development, we require substantial technical help to ensure that the action programmes and investment policies to be pursued are conceived in the light of the best advice which can be obtained. ECA Technical Assistance could provide for us this very type of technical advice and assistance which, in my view, are so vitally essential to ensure that the programmes and policies contemplated will have sound and lasting results.

I have always felt, and have said so on many occasions, that one of the features of the ECA Programme which would, in the long run, confer the most lasting benefits on European countries was Technical Assistance. Possibly owing to the many urgent day-to-day pre-occupations and having to continually deal with immediate problems, we hitherto have not given as much attention as I would have liked to this aspect of the Programme. As you know, we have already availed of Technical Assistance in a comparatively modest way and have, as a result acquired a better realisation of its value; on the basis of the experience thus gained, we are anxious to make substantially fuller use of it during the unexpired period of the Marshall Plan.

In the light of these circumstances, I have discussed the position with my colleagues in the Government and have been authorised to discuss the possibility of securing a comprehensive and carefully thought out Technical Assistance Programme within the framework of the ECA, concentrating on those particular fields of our economy in which Technical improvement is vital. I attach hereto a list of Technical Assistance Projects of the type contemplated by us.¹ This list is provisional and may have to be reviewed in the light of more detailed consideration; it gives, however, an indication as to the type and extent of Technical Assistance visualised. If a comprehensive Technical Assistance Programme of this nature were agreed upon, my Government would be willing to make 100% deposit of Counterpart in relation to it.

I think, too, that I could assure ECA that the Irish Government would give the fullest possible consideration to the recommendations arising from such Technical investigations and would be prepared, wherever practicable, to make available funds from the Grant Counterpart Fund for the implementation of recommendations made and approved.

I am convinced that the implementation of Technical Assistance proposals of the nature indicated would enable the fullest benefits to be obtained from the Recovery Programme and would be of lasting benefit to our economy.

The total cost of the Technical Assistance projects proposed would exceed $2.5 millions. It is our hope, and request that ECA would be prepared to set aside from the Technical Assistance Funds at its disposal this amount and to give us an indication that in general principle it agrees with this line of thinking. If this can be done, my colleagues and I will, with the approval of the Government, endeavour to submit to you in the usual manner, within ninety days, detailed proposals and justification for each specific project.

Please forgive me for writing to you at such length on this matter, but I feel that it is of sufficient importance to warrant it. I am sending a copy of this letter to Ambassador Foster in Washington and to Ambassador Katz in Paris with covering letters.

Please accept for yourself, Mrs. Miller and the members of the ECA Mission in Dublin, our very best wishes for the coming year.