Dear Mr. Thomas,

By this time you will, no doubt, have learned from Lord Sankey, who as Acting-Minister for the Dominions during your absence in Ottawa, that a third party¹ with Lord Sankey's knowledge and approval had come to Dublin and discussed with me the possibility of finding a basis for the termination of the dispute concerning the financial relations between the two countries.

It was proposed by this third party that, pending the settlement of the dispute, the amounts claimed by your Government as being due to Great Britain under several headings including Land Annuities, should be deposited in the Bank for International Settlements, and that such deposit having been made the discriminatory tariffs imposed by both sides should be withdrawn and negotiations immediately initiated between the two Governments.

I gave my approval to these proposals and I now wish to confirm formally the acceptance of them by the Government of the Irish Free State.