Sir,

I have the honour to refer to the Declaration of Financial and Monetary Policy signed by representatives of States of the British Commonwealth of Nations, which was issued on the 27th July last following the World Monetary and Economic Conference. The Government of the Irish Free State have had this Declaration under consideration, and I have to inform you that they are in general agreement with the views of the signatories as to the desirability of an increase in price levels and of the stabilisation of exchange rates.

2. The Government of the Irish Free State are willing to participate in the consultations which it is proposed should take place from time to time between the Government of the States of the Commonwealth on matters of monetary and economic policy. At the same time, they feel that the prospects of attaining the ends in view would be greatly improved if these consultations were open to all States now operating on currencies bearing a fixed relation to sterling, and to any other States which may be willing to co-operate in an effort to raise prices and stabilise exchange rates. They would, therefore, be prepared to join in a general invitation to such States to participate in the proposed consultations.

3. The Government of the Irish Free State note the statement in the Declaration that the United Kingdom Government have no commitments to other countries as regards the future management of sterling and retain complete freedom of action in this respect. It is presumed, however, that the undertaking in the matter of consultation will apply to any major decision affecting the position of sterling which may be made in the future, and that no such decision will be made without prior consultation with the other States concerned.

4. I enclose herewith a copy of this despatch which I should be glad if you would transmit to the Government of India for their information.