Minute from Seán Nunan to William P. Fay (Dublin)

I disagree entirely with any suggestion that we take the initiative in proposing that we welsh on our debt to the USA – or that we even join in a démarche with the other debtors to that end merely because Britain desires to follow the precedent she set up in avoiding full payment of the loan made to her in the First World War.

We accepted the loan and agreed to its repayment conditions and, until such time as the Government become convinced that the economy of the country cannot stand the strain of repaying the obligations entered into, I feel that we should not attempt to avoid the honourable course.

What Britain does is a matter for her own conscience, if any, but our record of honouring our obligations is a clean one and should be maintained. We repaid our 1920/21 Republic of Ireland External Loan to the people of America, even though not legally bound to do so, and it would ill become us to connive at an attempt to evade honouring a legal obligation.

This, to me, is a moral issue and its political aspects are a thing apart, even though, I believe, we would stand to gain a political advantage by honouring our obligations.