The Minister for External Affairs hopes that it may be of assistance to members of the Government if he sets out briefly in this memorandum the more important matters at present receiving or awaiting attention in connection with E.R.P. They are as follows:-

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2. The settlement of the loan-grant issue.

Certainly the most important point outstanding in connection with E.R.P., however, is the question whether the aid allotted to Ireland under the Act will be given by way of grant or loan. The decision on this question rests with the Administrator acting in consultation with the National Advisory Council on International Monetary and Financial Problems. The Minister has informed the American authorities of our desire to have this point determined as soon as possible. He understands from the Administrator, however, that it cannot be settled until the new bilateral Agreement has been signed.

It is desirable that the preparation of any material likely to be required for discussions on the loan-grant issue should be put in hand at once. Present indications suggest that the discussions on this issue will have to be conducted in Washington and will turn largely on the question of our ability to repay dollar loans.

The desirability of having the loan-grant issue definitely determined before the bilateral Agreement and the Paris Convention are submitted to the Dáil for ratification will be obvious.

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