No. 94 NAI DFA/10/P/226/1

Memorandum for Government by the Department of External Affairs
'Report from the Interdepartmental ERP Committee on the implications of a Note of the 10th January, 1952, from the US Embassy notifying the suspension of economic assistance to Ireland'

Dublin, 7 February 1952

  1. In accordance with the Taoiseach’s request of the 11th January, 1952, the Interdepartmental ERP Committee has considered, over four meetings, the implications of the Note of the 10th January, 1952, from the US Embassy, notifying the suspension of economic assistance to this country.1 The Minister for External Affairs presents to the Government the attached report from the Committee on this subject.
  2. In the light of the considerations outlined in paragraph 9 of the Report the Minister for External Affairs considers it desirable that the Government should continue the provision of facilities to encourage Irish agriculture, industry and public utilities to seek expert outside assistance and advice with the object of increasing productivity. He accordingly recommends that the Government approve the suggestions contained in paragraph 10 of the Report, that
    1. the principle of a State-sponsored Technical Assistance Programme should be maintained notwithstanding that any dollar expenditure will no longer be defrayed by the US Government;
    2. for this purpose the present Vote for Technical Assistance (which is at present limited to projects put forward with ECA approval) should be expanded in such a manner as to enable funds to be made available for technical assistance projects of any kind, including visits of Irish technicians to any country abroad and visits by foreign technicians to Ireland;
    3. the standard State contribution to a technical assistance project should be 50% of the total cost of the project, with discretion for a larger proportionate State contribution in exceptional cases, each project to be recommended by the appropriate Department and approved by the Department of Finance;
    4. when the proposals for the utilisation of the Grant Counterpart monies are submitted to the United States authorities the amount proposed in respect of technical assistance should be raised from that already approved by the Government, namely £250,000, to £350,000, so as to provide for that part of the expenses which, under the ECA Programme, were met by the American authorities;
    5. the existing programme of projects, as described in Annex A to the Report, should be re-examined by the appropriate Departments in the light of altered circumstances resulting from the withdrawal of the American contribution, and
    6. such steps as are necessary should be taken to make it possible to resume negotiations without delay for the carrying into effect of projects contained in the existing programme, which on re-examination are recommended by the Departments concerned and approved by the Department for Finance.
  1. The Ministers for Industry and Commerce2 and Agriculture3 concur in this recommendation.
  2. The Minister for Finance has been consulted and offers no objection to the recommendation.

1 Not printed.

2 Seán Lemass.

3 Thomas Walsh (1901-56), Minister for Agriculture (1951-4).



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