'Informal explanatory discussions with British officials, on 6 March, 1957,
regarding the Free Trade Area proposals'

The proceedings at the meeting with British officials on the 6th March,² in relation to the effect of the formation of the Free Trade area on the Anglo-Irish Trade Agreements, and other matters arising from the establishment of the Area, are recorded in the attached Report.³ As the discussions covered a wide area, it may be useful to draw attention to the more important points which arose.

2. It is significant that the British showed no desire to discuss in any detail the implications of the formation of the Area in so far as Anglo-Irish Trade Agreements are concerned. This cannot be attributed to the fact that they have overlooked – or intend to ignore – such implications. The Irish side drew their particular attention to the loss of industrial preferences in Britain which Ireland will suffer (whether or not she will join the Area) if Britain becomes a member of the Area. Despite their general unwillingness to discuss the Trade Agreements, the British did go so far as to say that, if Ireland did not join the Area, there would obviously have to be discussions in relation to Ireland’s loss of industrial preferences in Britain; it is possible that, in relation to the question of the similar loss of preferences if Ireland does join the Area, the British would prefer to defer any discussions until the position regarding the Area has been clarified. This viewpoint may also be responsible for their unwillingness to discuss the general effect of the Area on the Trade Agreements – although they admitted that the effect might be such as to require a re-negotiation of the Agreements. Their non-committal attitude at this stage might also be due to an understandable reluctance not to show their hands in advance of any such negotiations – particularly as they contemplate discussions with Commonwealth countries on the subject of the loss of Commonwealth preferences in Britain when the Area is established.
3. Apart from a very veiled allusion in the reference to the possible re-negotiation of the Trade Agreements, it is noteworthy that the British did not raise the question of the eventual loss of their preferences in our market which Irish membership of the Area would entail. They referred to the trade relations between the two countries as unique amongst OEEC countries, and it is possible that they may advance this as a justification (if, indeed, any justification is required) for continuing to receive a preference so long as we may be permitted under any special arrangements to retain protection for our industries.
4. Beyond a passing reference (to which no significance need be attached) to the position in which we would find ourselves (a) if we joined and (b) if we did not join, the British gave no indication that they were acting on the assumption that we would not join the Area. This attitude is in contrast with that hitherto adopted by some British officials.
5. Furthermore, the British gave no indication that they considered that Ireland was not a country to which special concessions, as a country in process of economic development, might be granted on joining the Area. On several occasions, in referring to such countries, they added the phrase ‘like Ireland’
6. While the British re-affirmed the position they have adopted from the start regarding the exclusion of agriculture from the Area, they did not seem to be worried about the further examination of the agricultural position which is to be carried out by one of the OEEC Working Parties. They were inclined to take the view that most OEEC countries would have to wait and see what emerged from this Working Party before they could decide what attitude to adopt in regard to agriculture.
7. Finally, the British specifically indicated that they thought that it would be useful if the British and Irish Departments concerned, and the two OEEC delegations in Paris, kept in close touch regarding future developments relating to the Area.