I am directed by the Minister to refer to your minute (46/110/6)¹ of the 10th March enclosing copy of a letter received from the Foreign News Editor, 'The Financial News', on the subject of a special survey which that newspaper was contemplating in regard to the effects of League 'sanctions' against Italy on world trade. In reply, I am to state, for the information of your querist, that of the articles mentioned in Proposal (iv) of the League Co-ordination Committee the only item in which Saorstát Éireann had an appreciable export to Italy is Horses. Exports of Horses to Italy have ceased since the imposition of sanctions. The total exports of Horses from Saorstát Éireann to all countries since 1930 has varied in number from approximately 8,300 to 13,000 per annum and in value from £784,500 to £2,123,000, while exports to Italy since that date have varied in number from 14 to 42 and in value from £1,700 to £7,615. It will be noted, therefore, that exports to Italy constituted only a very small portion of Saorstát Éireann's export trade in horses.

In regard to the effect of the imposition of sanctions on Saorstát Éireann exports to other countries, I am to state that, owing to the dissimilarity in the classes of the principal commodities exported from Italy as compared with the principal Saorstát Éireann exports, the cessation of exports from Italy to countries imposing sanctions has not had any material effect in the matter of increasing Saorstát Éireann exports. For the same reason the elimination of Italian competition against Saorstát Éireann goods in the home market has not had any appreciable effect on Saorstát Éireann agricultural pursuits or on industrial enterprises, with the exception of the button-making and marble-quarrying industries. Supplies of 'blanks' for the manufacture of corrozo buttons were formerly obtained from Italy, and these supplies being now cut off Saorstát Éireann button manufacturers are endeavouring to get raw materials from other sources with a view to the production of 'blanks' in Saorstát Éireann. Marble quarries in this country have also benefited to a limited extent by the exclusion of marble imports from Italy but in this connection it should be noted that imports of marble into Saorstát Éireann are subject to a protective duty of 100% ad valorem.

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