I cannot say that we feel very optimistic about being able to persuade the Department of Finance to put up as much as £50,000.¹ Apart from the amount itself, the condition of payment in dollars will, I am afraid, be a great difficulty, especially when it comes to dealing with McElligott. I am sure he will object that our currency arrangement with Britain does not cover capital expenditures and expressly excludes the making of payments in one foreign country in the currency of another. For the moment, I don't see what we can say to meet these points, but you may be certain we will do our very best.

The Taoiseach continues to be very preoccupied with the current political agitation here, centring around the hunger-strikes. There is no doubt but that there is a major effort afoot to form a strong Opposition to the Government made up of Labour, Clan na Talmhan² and IRA elements. It is interesting that Dr. Pat McCartan³ has been persuaded to accept the nomination for the Parliamentary vacancy in Cork⁴. Although the Taoiseach himself takes the development seriously, there are a lot of people who are inclined to discount its importance and doubt very much whether the new combination will ever come into existence, and, if it does, whether it will prove very viable.

I dined with the Archbishop⁵ on Wednesday night. The Taoiseach, Sir John Maffey and Dr. Matthew were there. The Archbishop told me that he is quite convinced that the Communists are working desperately hard in Dublin, and he gave that as the reason why he had intervened to secure a settlement of the teachers' strike.

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I sent the Taoiseach over a copy of your despatch. He was very interested in the account of your reception by Monsignores Tardini and Montini. He will be speaking about the establishment of the new Embassy when he is introducing the Estimate.

I have not spoken to the Taoiseach yet about D'Arcy Osborne's desire to succeed Maffey. Do you think he would make a suitable choice? His familiarity with Catholic affairs would be an advantage, I suppose.

We will push on the question of the house without any delay as soon as we get the further details referred to in your letter. The Villa Spada sounds a marvellous place, and, as I say, we will do our very best to 'sell' it to the Board of Works and the Department of Finance. Are you quite sure, though, that its upkeep would not be too heavy a financial burden?

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Leo and Con are settling down very quickly and we are starting to get back to normal.