Confidential Report from Timothy A. Smiddy to Joseph P. Walshe (Dublin)
(Confidential)

I paid my respects this morning to Mr. Ramsay MacDonald and presented to him the good wishes of Mr. Cosgrave for the greatest measure of success possible in the administration of Great Britain and also in his efforts to promote world peace. He begged me to express to Mr. Cosgrave his appreciation of the good wishes and to convey to him his best regards.

He asked me if I had seen the leading article in the London 'Times' this morning; that it was pernicious and calculated to make the task of the Government more difficult in the betterment of the unemployment situation and in its efforts to promote industry.

He mentioned that during the last week there had been an increase in unemployment.

I told him that, from my personal knowledge of General Dawes for over four years, I had the greatest regard for him, especially as being both intellectually honest and being very humane in his outlook. I gave him my opinion that what he and General Dawes had already done with regard to America would have a very beneficial reaction on Europe. He said it was significant that, within a few days of their meeting, already he noticed changes in the attitude of some of the European powers. Recently these European Powers did a good deal on their own account and did not consult Great Britain on matters on which they might have consulted her; but already he saw an indication of a change in that direction.

I referred to the Experts Committee on Reparations and International Allied Debts and said it would remove some of the difficulties in the way of the settlement of Europe. He said, yes; but that it was not a satisfactory settlement for Great Britain inasmuch as they were adopting the method of payment in kind. I said that it was strange, considering that Great Britain had such excellent experts. He said, yes; they had excellent experts on the technique of the subject, but no excellent experts in negotiations. He then mentioned that in 1924, at the time of the setting up and operation of the Saar Committee, that whereas that Committee was a Committee of the League of Nations, not responsible to Governments but responsible only to the Council of the League, the British Experts were unfettered and not interfered with by the Government, whereas the other Experts, especially the French, were in intimate contact with their Governments and took orders from them. On the occasion he had 'to put his foot down' and see that the British would do likewise and cease to make their Experts independent. Likewise with the Reparations Committee. He said that while the English Experts were unfettered it was very likely that the other Experts were in close touch with their Governments.

He made enquiries about the political situation in the Irish Free State and also about her economic condition, and I was able to assure him of the practical measures adopted by our Government to promote both agriculture and industry, and also that political stability was making headway, and that the tendency for parties was now to become more economically-minded than politically-minded. He said he was exceedingly interested in the Irish Free State and had no doubt but it would make good. I refrained from referring at this stage to Ulster, as I will under less formal circumstances in the future get an opportunity of so doing.

Mr. MacDonald said he would be very glad to receive me at any time that I have information that will be of any help to him or to the Irish Free State; 'and', he said, 'even though you have got nothing to see me about, I will be always glad to have you come and see me'.

Mr. MacDonald requested me to convey to Mr. Cosgrave his personal regards and thanks for his good wishes in the administration of his office. He said Mr. Cosgrave has performed a very difficult task with great efficiency and tact.