As¹ I explained on the telephone to Mr. Lemass, the Minister for Industry and Commerce, I have been discussing the coal-cattle proposals since I returned on Monday night last with the Aide Memoire approved by the Executive Council.²

The officials concerned are now at work on the questions of cattle quantities and duties but I found it difficult to get any Minister interested owing to the crisis which was impending in the British Government from the Abyssinian situation. Mr. Walter Elliot told me confidentially last evening that he did not think any Ministers were thinking of any subject but the Abyssinian crisis and the possibility of a Government defeat. He has to go North tomorrow, the 20th December, and does not expect to be back in London until the 4th February. Other Ministers similarly will be away for the holidays. In these circumstances it would seem that the middle of January is likely to be reached before we can achieve agreement.

I have been apprehensive all through for the need to make provision about the continuance of the coal arrangement through the apparently unavoidable interregnum.

I also mentioned to the Minister that the British Board of Trade people say that it would be an immense help to them if some formula could be devised indicating that our Government would be ready to do what might be possible in the direction of easing the situation for the British on the point of our administrative discrimination against their goods, notably plant and machinery.

The Minister is considering what can be done on these two main points.