[matter omitted]

FINANCE.
Since the Emergency terminated I do not know if any money has been coming to this Group from abroad but in view of their increased activities of various kinds they obviously must be spending more money and obtaining it somewhere. Some of the Soviet Friendship Society public meetings were, of course, a considerable financial success and their only regret was that they did not double the entrance charge. Local appeals and demands for subscriptions are frequently made but there is no evidence that very much is obtained as a result of them. The Party has no wealthy local supporters and it must be assumed that some money is available from an outside source to keep the propaganda activities going, maintain the Bookshop and keep a whole-time employee like Seán Nolan,¹ and possibly some part-time employees, going.

CONNOLLY CLUBS.
I have no special information about the Connolly Clubs since 1945 except that derived from a study of its official organ, the Irish Democrat and other information published about them. I have no doubt, however, from previous information at my disposal that it is entirely a communist controlled and dominated organisation. This view is based on a good deal of confidential information obtained prior to 1945 which I can, if necessary, have elaborated. There is continuous contact between the group running the Connolly Clubs in England and the Communist group in Dublin. I have myself long since reached the same conclusion as to the objects of the English Connolly Clubs as were expressed in the Dáil the other day.² I have no information as to the exact extent and membership of the Connolly Clubs in England and the influence they exercise on the Irish workers over there. There is some reason, however, to believe that it is not inconsiderable and is probably growing. The Communist propaganda is well gilded with the Green, White and Yellow flag. In this connection I attach two brief notes prepared before this question was raised in the Dáil and marked 'A'.³ The recent important development in connection with the Connolly Clubs is their extension to America where they have recently been visited by a prominent number of the Labour Party and where at least one feature of this visit was very definitely of a pro-Soviet and pro-Communist type. I really know nothing of their activities in America beyond occasional press reports, but the fact that Gerald O'Reilly,⁴ long known to us as a prominent communist agent amongst the Irish group in New York, is one of the prime movers in the Connolly Clubs in New York, is sufficient to satisfy me that the New York organisation, as in London, is communist dominated.

EXTERNAL CONTACTS.
No evidence is available of any direct contact between the Communist Group in Ireland and Russian or Soviet centres. Certain members of the Soviet Friendship Society made social contacts with personnel of the Soviet Embassy in London during a visit to Great Britain and prior to the end of the Emergency some of the prominent communists here evidently had postal contact with the Soviet Embassy in London. Lists of people who were to receive the Soviet papers are, of course, sent to the Soviet Embassy in London and the Editor of the Soviet paper in London visited the Communist group in Dublin towards the end of 1946. Two prominent and active members of the Soviet group in Dublin paid a visit to Sweden in June 1946 ostensibly for a holiday but there is a suggestion that the visit had other purposes.

As far, however, as can be seen the Dublin groups' external contacts are largely based on visits to London and visits of the London Group to Dublin and by postal contacts with America from where their financial subsidy came until at least 1945.

INFLUENCE ON OTHER THAN LABOUR ORGANISATIONS.
At one period the Communists were endeavouring to get hold of ex-internees and ex-I.R.A. men or even possibly to influence organisations of those people. This activity has evidently been discontinued for the time being. At the moment, however, the Communist papers like the Review in Dublin and the Democrat in England and Communist supporters generally are extensively supporting the Anti-Partition campaign. This, of course, is portion of both the Communist and the Connolly Clubs 'procedure' and will aid them in penetrating and obtaining influence in Irish organisations both in England and America, which could then be used not merely for Irish but also for Communist and Russian ends. It, in fact, immediately makes one think of the pre-1939 position when the Germans influenced the I.R.A. to start the bombing campaign in England because of the German capacity to exploit anti-Partition and nationalist sympathy in a similar way to suit their own end.

CONCLUSION.
I judge the Communists solely from the extent to which they might interfere with Irish defence efforts in a crisis or, still more important, by the extent to which they might use sections of the Irish population in England, America and other countries during a war that would affect Irish interests. Briefly this means, how could Russia in a future conflict, or even in peace time, use the Irish population here, in England or America for anti-British and anti-American propaganda or for sabotage or espionage against these countries. In my opinion, if, as I am convinced, this is the Russian and Communist purpose, they are meeting with a fair measure of success and are improving their potential organisation, whilst at the same time working on the nationalist and anti-Partition spirit and skilfully selling their propaganda. So far no information of attempts to use the Irish people for espionage has come to my knowledge. This would, however, only follow after skilful penetration by propaganda etc. The Russians have attempted to use Irish organisations in England for this purpose before and certainly will again. In Ireland, prior to and during the recent emergency there was not a half dozen doctrinaire Nazis. There were a number of I.R.A. people and some other people who were anxious to use Germany to aid what they considered were Irish interests. In Ireland at present there are at least 1,000 people who are so indoctrinated with and sympathetic to Communist ideas that on international issues they automatically take the Russian and not an Irish view. They, for external purposes, form the nucleus of a fifth column and except that their numbers are not so large there is no difference between them and the fifth columns which have attracted attention in Canada, and Australia recently. Like the fifth columns in those countries, they include intellectuals and persons of good position. So far, as stated already, there is no evidence that these people have engaged in espionage directed against Ireland or England.

With regard to the internal problem, I have not seriously studied or considered it. I do not think that the Communists here are from that point of view a serious or important factor. They are, however, increasing in influence and of course exert an influence out of all proportion to their numbers in the Labour Party.

P.S. The most recent development of Communist activity here is a proposal to send young men at very cheap rates to combine a holiday with certain work in Czechoslovakia, Yugoslavia and Poland. The proposal was advertised in Irish Youth recently and I did not think anyone would take it seriously. This morning, however, a former officer on my staff has been on to us to know if we knew of the proposal as he is aware of an instance in which a young man has made all arrangements to avail of it.