With reference to Mr. Macaulay's note of the 4th February last on the subject of the proposed Commercial Convention with the United States, I am directed by the Minister for External Affairs to enclose herewith, for your information, a copy of a Departmental memorandum¹ upon the case which can be made on behalf of An Saorstát for claiming special trading advantages in connection with the proposed Convention. There appears to be little doubt that under more favourable tariff treatment the United States market for certain Saorstát products could be greatly developed. It will, however, be seen that the prospects of securing any tariff concessions from the United States are not regarded as very hopeful. At the same time, the Minister feels that the unbalanced character of the trade between the two countries, which is greatly to the advantage of the United States, constitutes a strong argument for more favourable treatment of Saorstát products on entering that country than they at present enjoy. There is no doubt that public opinion in this country will be disappointed if, under the terms of a new Convention, no trading advantages can be secured in excess of those already obtainable. In the circumstances it seems desirable that every effort possible should be made to secure some special concessions under the Convention now under consideration.

The memorandum is intended solely for your confidential information and for the purpose of assisting you in connection with any enquiries which you may think expedient to make in official quarters at Washington with a view to ascertaining what tariff concessions, if any, could be secured in connection with the present negotiations. The Minister desires that you should make such enquiries, either informally or otherwise as in the circumstances might seem to you most appropriate, upon the matter, and report to him in due course whether there is any prospect of securing from the United States any tariff concession in respect of all or any of the Saorstát products cited in the memorandum.

I am also to enquire whether any change has taken place in the attitude of the United States towards the embargo upon Irish grown potatoes since the date of Mr. Macaulay's note of the 10th March, 1926¹ or whether any fresh representations or negotiations with a view to the withdrawal or modification of the embargo in favour of Saorstát grown potatoes would be likely to be successful.

The Minister would be glad to be favoured with a report from you upon the matters referred to in the preceding paragraphs and upon any other points arising in connection with the present negotiations upon which you may wish to express your views.