Sir,

The proposal of the British Government for arbitration on the question of the Land Annuities has been considered by the Government of the Irish Free State.

2. The Government of the Irish Free State accepts the principle of arbitration and agrees that a Tribunal, of the general character outlined in the Report of the Imperial Conference of 1930, would be suitable, but is unable to agree to the restriction of the personnel of the Tribunal solely to citizens of the States of the British Commonwealth.

3. The Government of the Irish Free State is of opinion that in justice to the people of the Irish Free State the matters to be submitted to the Tribunal for determination must include not merely the Land Annuities but also the items of the other annual payments to the British Government by the Government of the Irish Free State, except those made in pursuance of agreements formally ratified by the Parliaments of both States.

4. I must further add that in the view of my Government any agreement reached between the two Governments on these matters must be submitted to both Houses of the Oireachtas for their approval.