Dear Joe,

The enclosed was prepared by Leydon and myself last night, and approved to-day, with amendments noted, by our Ministers. The President, when speaking to me this morning, said he did not think a meeting with him was necessary as the matter could be settled with Ministers.

P.S. I can't get Dr Ryan and Twomey is gone.

[handwritten by Walshe] Draft instructions prepared by Messrs McElligott and Leydon and subsequently rejected by the Minister for External Affairs.

[Enclosure]

SECRET

The following instructions to the delegates at the forthcoming conference in London have been approved by the Executive Council:-

1. If the British are willing in any circumstances to concede the demands put forward in paragraphs 6, 7, 8, 9, 10 and 11 of our Aide Mémoire of 22nd January¹ but require in return concessions in addition to the reduction of 10% in the Emergency Duties and removal of administrative discrimination, the minimum concessions so required by them should be ascertained.

2. The Saorstát Government are prepared to consider the extension of existing quotas and preferences in respect of goods imported from the United Kingdom and also, if necessary, a further reduction of the Emergency Duties.

3. In order to secure the repeal of the Ottawa duties, as asked for in paragraph 11 of our Aide Mémoire, the Saorstát Government are prepared, if absolutely necessary, to consider the total abolition of the Emergency Duties.

4. In addition, in order to secure the granting of all the concessions asked for in the Aide Mémoire, the Saorstát Government will, if necessary, in the matter of existing administrative discrimination against United Kingdom goods imported into the Saorstát, refrain from all such discrimination. Import licences in respect of British goods subject to Emergency Duty will be issued more liberally than before and no attempt will be made on the part of the Saorstát Government to influence importers against the purchase of British goods.

5. The Saorstát Government are prepared, if necessary, to waive the proposal put forward in paragraph 4 of the Aide Mémoire of 22nd January in regard to the substitution of cement for coal.

6. The Saorstát Government are prepared, if necessary, to establish a body before which the British manufacturing and exporting interests can be heard in regard to the variation of existing rates of import duty on British goods or existing classifications, for the purpose of assessment of such duty, of these goods. This would be considered only as a feature of an attractive general Trade agreement.²

7. The agreement should be for a period of 3 years and neither of the contracting parties will vary to the detriment of the other party the tariffs or other duties, preferences, or quotas as settled by the agreement, but before 31st December, 1936, and also before the 31st December, 1937, discussions shall take place between the two Governments with a view to exploring the possibility of extending the scope of the agreement and the concessions for which it provides.