Dear Mr. Taft,
I am now writing to you with further reference to your letter of November 23rd last, on the subject of Ireland's trade with the countries of Eastern Europe which are not participating in the European Recovery Programme.

In order to give you a general picture of the extent and type of trade which is carried on between Ireland and those countries I enclose for your information two statements as follows:-

1. Statement of trade (in terms of value) with each of the Eastern European countries concerned over the periods average 1936/38, 1946 and 1947 and
2. Statement showing the type and value of Irish exports to the individual countries concerned in 1947.¹

As you will see from the figures in these statements, Irish exports to the countries in question are relatively insignificant and, while the policy of the Irish Government in regard to trade generally with this group is one of non-discrimination in regard to currency or other matters affecting trade, the controls on exports at the disposal of the Irish Government are such as to provide an effective check on exports to any of the countries concerned of commodities in respect of which the United States Government would, on general security grounds, refuse export licences in pursuance of Article 117(d) of the Economic Co-operation Act, 1948. You may rest assured that these controls will be administered with due regard to the requirements of this Article.

As to the future trend of Irish trade with the countries concerned, the indications are that as regards non-agricultural items there will not be any significant change in the present type and volume of exports and imports. The same is largely true as regards agricultural items, the only developments of any significance which can be foreseen as possible being in the export of canned meat and the import of maize supplies.

Regarding canned meat, some 2,400,000 lbs., valued approximately £205,000 were exported to Czechoslovakia in 1948, but whether this will prove to be an isolated transaction or will lead to the development of a steady annual export of this commodity to Czechoslovakia and/or others of the countries concerned it is, at this stage, impossible to say.

Regarding maize, we have, as I think you are aware, intimated to the Organisation for European Economic Co-operation that while, in the programmes which we have thus far submitted to that Organization, substantial shipments are envisaged from the dollar area, we shall be ready, in the interests of keeping dollar expenditure to a minimum and encouraging intra-European trade, to divert purchases from dollar sources to sources in Eastern Europe to the extent that supplies can be made available to us from the latter on comparable terms as regards price, quality and times of delivery.

The degree to which imports of maize by Ireland from Eastern European countries will develop in the future depends, therefore, on the extent to which those countries will be able and willing to supply on terms as stated above.