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Northern Ireland as a problem in the economic war 1932–1938
Published online by Cambridge University Press: 28 July 2016
Extract
In an article published in 1970 Professor Harkness has examined in some detail the negotiations between Britain and the Irish Free State during the economic war, particularly as they affected the relationships of Britain and the Commonwealth. This article discusses an aspect of the dispute not covered in his paper, the part Northern Ireland played in the quarrel, and in particular its role in making a final settlement more difficult. It also examines how the economic war affected relations between Britain and the province.
Although in the end the dispute proved, at least to Malcolm Macdonald’s satisfaction, that ‘the difficulty between North and South still lies at the root of the Anglo-Irish problem’, this was not evident when it began. In 1932, at the outbreak of the war, the question of partition did not arise. As Professor Mansergh has pointed out ‘the coin of contemporary political controversy in Ireland’ concerned the oath of allegiance, the position of the Governor-General, the question ofthe treaty ports and even the right of Ireland to secede from the Commonwealth.
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References
1 This article was written and accepted early in 1978 before the publication either of Fanning, R., The Irish Department of Finance, 1922–58 (Dublin, 1978)Google Scholar, or Buckland, P, The factory of grievances: devolved government in Northern Ireland 1921–39 (Dublin, 1979)Google Scholar. Although these books do not contradict anything I have written, in some respects they may have anticipated it.
2 Harkness, D. W, ‘Mr. de Valera’s Dominion: Irish relations with Britain and the Commonwealth, 1931-1938’, in Journal of Commonwealth Political Studies, 8, 1970, pp 206–228.CrossRefGoogle Scholar
3 Public Record Office (henceforth P.R.O.), D.O.35/893/XII/139, ‘United Kingdom — Eire political and constitutional relations developments in Anglo-Irish negotiations. Note on latest position regarding negotiations with Eire’ Memorandum by Macdonald, 16 March 1938.
4 Mansergh, P.N.S., The Commonwealth Experience (London, 1969), p. 239.Google Scholar
5 Record of Conferences held 14 and 15 October 1932’ (P.R.O. CAB 27/522, CP. 350 (32), I.S.C. (32).
6 Harkness, , ‘De Valera’s Dominion’, pp 209–10. Google Scholar
7 Craigavon to Samuel, 7 April 1932 (P.R.O. CAB 27/525).
8 ‘16th Meeting of Irish Situation Committee 23 November 1932. Statement by J. J. Thomas’ (P.R.O. CAB 27/523).
9 During 1930 and 1931 Northern Ireland’s exports of merchandise to the Free State were over 12 per cent of its total, compared to under seven per cent of Great Britain’s.
10 Calculated from Irish Free State, Trade and Shipping Statistics 1930 and 1931 (Dublin, 1931 and 1932).
11 Or at least so the official statistics state. I have elsewhere suggested that they may not be wholly accurate. Johnson, D. S., ‘Cattle smuggling on the Irish Border 1932–38’, in Irish Economic and Social History 6, 1979, pp 41–63 Google Scholar and Johnson, D. S., ‘Partition and cross border trade in the 1920s’, in Roebuck, P (ed.), Plantation to Partition (Belfast, 1981), pp 229–46Google Scholar. Nevertheless, even allowing for unrecorded border trade, it is highly probable that Northern Ireland did suffer from the economic war more than other regions of the United Kingdom.
12 Between 1932 and 1935 Ireland had greatly increased imports of German and Polish coal, particularly that for household use, but barely increased cattle exports to these countries at all. The United Kingdom still took over 98 per cent. See also P.R.O. CAB 27/523,1.S.C. 32, ‘21st Meeting 29 November 1934, statement by J. H. Thomas, for the question of conversion of boilers’
13 Note initialled E. J J. Harding, permanent under-secretary of state at the dominions office, 30 October 1934, describing meeting of Thomas and Dulanty (P.R.O., Τ 160/1673/14026/01/1).
14 Ibid. Lemass was the minister of industry and commerce and Ryan the minister of agriculture.
15 Sir Wilfrid Spender, permanent secretary Northern Ireland ministry of finance to S. D. Waley principal assistant secretary H.M. treasury, 8 February 1935 (P.R.O., T.160/1673/14026/01/2).
16 Interdepartmental meeting held at the board of trade, 22 January 1935. Views of C. G. Markbreiter, assistant at the home office (P.R.O., H.O. 45/17518/658446/76).
l7 Irish Free State, Trade and Shipping Statistics 1935 and 1936 (Dublin, 1936 and 1937), and Annual Statement of the Trade of the United Kingdom for the Year 1938 (London, 1939).
18 G. Scott Robertson, permanent secretary, Northern Ireland ministry of agriculture to H. L. French, second secretary ministry of agriculture and fisheries, 11 November 1935 (P.R.O. H.O. 45/17518/658446/82).
19 Scott Robinson to Markbreiter, 22 February 1937 (P.R.O. H.O. 45/17518/658446/93.
20 Anglo-Eire Negotiations 1938, Conference between representatives of the United Kingdom and Eire. First meeting 17 January 1938 (P.R.O. CAB 27/642).
21 For an anthology of these see Farrell, M. Northern Ireland, The Orange State (London, 1976), pp 136–7Google Scholar
22 ‘Possibility of negotiations between His Majesty’s Government in the United Kingdom and the Government in the Irish Free State’ Note by the Government of Northern Ireland (P.R.O. T 160/747/14026/04/1).
23 ‘Proposed United Kingdom trade agreement with Eire. Effect on Northern Ireland agriculture and industry. Memorandum by the Government of Northern Ireland, 15 February 1938’ Public Record Office of Northern Ireland, (henceforth P.R.O.N.I. CAB 7R/60/1).
24 ‘Relations with the Irish Free State. Memorandum by the secretary of state for dominion affairs, 18 January 1937’ (P.R.O. CAB 27/522/, CP 14 (37)).
25 S. D. Waley to Sir Richard Hopkins, second secretary at the treasury (P.R.O., T.160/702/F 716/06/Annexe). Irish exports in 1937 were £22 million.
26 P.R.O. CAB 27/642. De Valera made the offer of £8 or £9 million at the third meeting of the Irish and British negotiators on 18 January He raised it to £10 million at the fifth meeting the next day
27 ‘15th Meeting of Irish Situation Committee, 25 October 1932’ (P.R.O. CAB 27/523).
28 Irish Negotiations Committee, ‘Conference between representatives of the United Kingdom and Eire, Fourth meeting 19 January 1938, Draft Defence Agreement’ (P.R.O. CAB 27/642).
29 ‘Note of interview between T Jenkins of board of trade and de Valera. 1 February 1939’ (P.R.O., D.O. 35/893/XII/277). No one else was present. Jenkins had been sent to to Dublin by the board of trade to discuss with Lemass and de Valera the possibility of tariff reductions on goods of Northern Ireland origin. De Valera who ‘had only a vague idea as to the purpose of the talk’ had no reason to dissimulate.
30 This was particularly true of the dominions office and the treasury.
31 ‘First Meeting of the Irish Negotiations Committee, 17 January 1938’ (P.R.O. CAB 27/642).
32 In 1936, when the statistical basis was changed, the United Kingdom supplied 71 per cent of goods classified in the traditional manner, by country of consignment, but only 51.8 per cent by origin. Irish Free State, Trade and Shipping Statistics 1936 (Dublin, 1937), pp 9–10.
33 There is evidence that the Irish Civil Service was only too aware of this dependence and was keen to remind the politians of the favourable economic effects that would result from a settlement of the dispute. See ‘Memorandum on trade relations with Great Britain’ (State Paper Office, S9420), signed by McElligott, Twomey, Walshe & Leydon.
34 ‘Memorandum by the Home Secretary, 10 December 1937’ (P.R.O. CAB 27/522, I.S.C. (32)).
35 Craigavon to Hoare, 15 February 1938 (P.R.O.N.I. CAB 7R/60/1).
36 See Ryan, W J. L., ‘The nature and effects of protective policy in Ireland 1922–39’; (Thesis for Ph.D. in University of Dublin, 1948).Google Scholar
37 P.R.O. CAB 27/524, I.S.C. (32), 34th meeting, 17 February 1938.
38 Quantitative regulations existed only on certain items of agricultural produce.
39 In February 1936 a columnist in the Manchester Guardian wrote of the new Irish protection ‘Not only is the convenience and taste of individuals utterly disregarded but the enterprise of the entrepreneur is now directed chiefly to persuading the Ministry to impose new tariffs or to grant new licenses, special dispensations or monopolies. No budding industrialist is now so modest as to be content with less than a 50 per cent protection and there are those who do not blush to demand their cent per cent’ (Manchester Guardian, 19 February 1936).
40 In 1931 41.4 per cent of Northern Ireland’s exports to the south consisted either of apparel, or those agriculture goods which became subject to severe import restrictions, compared to 29.7 per cent of Britain’s.
41 For instance see P.R.O.N.I., AG, 16/16/1 ‘Northern Ireland agriculture and the proposed trade treaty with Eire’, paragraph 4, or P.R.O., Τ 160/747/14026/04/1 ‘Possibility of negotations between His Majesty’s Government in the United Kingdom and the Government in the Irish Free State, Note by the Government of Northern Ireland’
42 ‘Memorandum by S. D. Waley 29 February 1938’ (P.R.O., Τ 160/747/ 14026/04/1).
43 ‘Secret Memorandum dated 25 February 1938’ (P.R.O.N.I., CAB 7R/60/1).
44 Ibid.
45 Craigavon to Hoare, 26 February 1938 (P.R.O.N.I., CAB 7R/60/1).
46 ‘Conference between Representatives of the United Kingdom and Eire. Eighth Meeting, 4 March 1938 (P.R.O. CAB 27/642). In fact the Cabinet knew of the decision to reject the plan the day before (P.R.O. CAB 27/642, ‘Irish Negotiation Committee, third Meeting’).
47 ‘Conference between Representatives of the United Kingdom and Eire. Eighth Meeting, 4 March 1938’ (P.R.O. CAB 27/642).
48 Ibid.
49 See below p. 154. Under Article 8 of the treaty the Eire Price Commission was to look into the possibility of reducing tariffs on goods imported from the United Kingdom.
50 Sir Harry Batterbee to Sir Warren Fisher, permanent secretary at H.M. treasury and head of the civil service, Memorandum dated December 1937 (P.R.O. T.160/702/5716/06/5).
51 Hoare to Andrews, 14 March 1938; Andrews to Hoare, 15 March 1938 (P.R.O N.I. CAB 7R/60/2). This letter was not in fact sent, as Hoare’s letter informing the Northern Ireland Government of the failure of the five year proposal was received first.
52 Schedules IV and V under Articles 9 and 10 of the Trade Agreement, Agreements Between the Government of the United Kingdom and the Government of Eire. (Cmd. 5728), H. C. 1938. The reduction of duties on clothing were generally from around 40 to 33¼ per cent.
53 ‘United Kingdom — Eire political and constitutional relations, developments in Anglo-Irish negotiations, Memorandum 16 March 1938’ (P.R.O., D.O. 35/893/XII/139).
54 Ibid. ‘Benefits that Northern Ireland will gain under possible compromise, Memorandum 10 March 1938’
55 See below p. 161. One of the most important concessions, reductions on the duty on linen goods, was nullified by refusing to extend it to goods which had cotton hemming. As this applied to virtually all linen goods it was a clear breach of the spirit if not the letter of the agreement.
56 P.R.O. CAB 27/524. I.S.C. 32 (42) Meeting 10 March 1938.
57 Ibid.
58 P.R.O. CAB 27/242 I.S.C. 32, 43rd Meeting, 8 April 1938.
59 S. D. Waley to Woods, 10 March 1935 (P.R.O. Τ 160/747/14026/04/1).
60 See Buckland op.cit., pp 110–16.
61 See Lawrence, R. J., The Government of Northern Ireland (Oxford, 1965), ch. 3.Google Scholar
62 Undated note by S. D. Waley on Home Office Memorandum I.S.C. (32) 1333 (P.R.O., Τ 160/747/F14026/04/1).
63 Note initialled by Sir Warren Fisher on memorandum from Sir Frederick Phillips to Sir Richard Hopkin, 11 December 1937 (P.R.O. T 160/702/5716/06 Annexe).
64 Comment by Fisher on Waley’s note on I.S.C. (32) 1333 (P.R.O. T.160/74 14026/04/1).
65 Minute by Sir Warren Fisher on memorandum dated 7 March 1938 (P.R.O. T. 160/747/14026/0404/1).
66 Memorandum 22 March 1938 (P.R.O., T 160/747/14026/104/1).
67 See below pp 157–8.
68 Waley to Woods 18 March 1938 (P.R.O., T 160/747/F14026/04/1).
69 Ibid., Memorandum by S. D. Waley 24 March 1938.
70 For further details see R. J. Lawrence, op.cit., ch. 3.
71 Northern Ireland Insurance Agreement. Memorandum by S. D. Waley 21 March 1938’ (my italics) (P.R.O. T 160/147/14026/04/1).
72 Isles, K. S. and Cuthbert, N., An economic survey ofNorthern Ireland (Belfast, 1957), p. 572.Google Scholar
73 ‘Proposed United Kingdom trade agreement with Eire: Note on suggested action to be taken by the United Kingdom Government to alleviate the detrimental effects upon Northern Ireland agriculture and industries. Cabinet office 16 February 1938’ (P.R.O.N.I., COM 62/1/655). This does not mention the question offurtheraidtothe province’s unemployment insurance scheme.
74 ‘Northern Ireland, unemployment insurance agreement, Memorandum by S. D. Waley 21 March 1938’ (P.R.O. T 160/747/14026/04/1).
75 Ibid.
76 Ibid. (Memorandum by Sir Frederick Phillips, under secretary at the treasury to Sir Richard Hopkins, 21 March 1938).
77 G. Scott Robertson to Sir Charles Blackmore, secretary to the Northern Ireland cabinet, 26 March 1938 (P.R.O.N.I. CAB 7R/60/2).
78 ‘Memorandum 25 March 1938 from Sir Frederick Phillips to Sir Richard Hopkins’ (P.R.O. Τ 160/747/14026/04/1). The Joint Exchequer Board, then headed by Lord Alness, had been established to oversee financial relations of Britain and Northern Ireland.
79 R. J. Lawrence, op. cit., p. 60. Lawrence’s summary is more succinct than the original document.
80 ‘Memorandum headed “Northern Ireland”, S. D. Waley to Sir Frederick Phillips 24 March 1938’ (P.R.O. T 160/747/14026/04/1).
81 R. J. Lawrence, op cit., pp 69–70.
82 N.I.H.C. Deb xxi, col 663, 26 April 1938.
83 ‘Permanent Work in Northern Ireland. Memorandum from the Office of the Cabinet Secretary 30 March 1938’ (P.R.O.N.I. CAB 7R/60/2).
84 ‘Memorandum by Sir Wilfrid Spender 12 May 1938’ (P.R.O.N.I. CAB 7R/60/5).
85 P.R.O., CAB 27/524, I.S.C. (32), 43rd Meeting, 8 April, 1938.
86 Mitchell, B. R. and Deane, P, Abstract of British Historical Statistics (London 1962), p. 399.Google Scholar
87 Isles, and Cuthbert, , Economic survey, p. 572.Google Scholar
88 Ibid. pp 580–582. Unemployment in these three industries averaged 19,800 per month in the first quarter of 1938, and 19,200 in that of 1939.
89 Andrews to Simon, 4 May 1938: Simon to Andrews, 14 May 1938 (P.R.O.N.I., CAB 7R/60/5). Admittedly Andrews was engaged in a window dressing operation, as the transfer would have merely had the effect of swelling Ulster’s imperial contribution.
90 Craigavon to Hoare, 25 March 1938 (P.R.O.N.I. CAB 4/397/3).
91 Irish News, 26 April 1938.
92 Belfast Newsletter, 26 April 1938, Northern Whig, 27 April 1938.
93 Irish News, 4 May 1938. Capt. Dixon was also a Westminster M.P
94 P.R.O. CAB 27/524: I.S.C. 32. 34th Meeting 17 February 1938. This view was never made public so far as I know
95 Parliamentary Debates Commons 1937-38, 335, col. 1536, 10 May 1938. Speech of Sir David Reed. The outburst came after a reminder that a certain item under Schedule V of the treaty had been included at the request of the government of Northern Ireland.
96 Chamberlain to Craigavon 8 April 1938 (P.R.O.N.I. CAB 7R/60/2). Howeveras Dr. Buckland has pointed out, Craigavon was by this time an old and sick man, susceptible to pressure. If he had been less so, then sterner resistance to the agreement might have been forthcoming from the province’s representatives, though it is very doubtful if, in the end, it would have been any more successful (Buckland op. cit., pp 114–16).
97 Meeting of the Irish Negotiations Committee, 17 January 1938 (P.R.O. CAB 27/642). Statement by W S. Morrison.
98 Undated Memorandum, ‘United Kingdom — Eire Agreement: Effect on Northern Ireland Trade’ (P.R.O.N.I. COM 62/1/697).