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Seanad Éireann debate -
Wednesday, 4 Mar 1936

Vol. 20 No. 28

Private Business. - Imposition of Duties (Confirmation of Order) Bill, 1936—(Certified Money Bill)—Second Satge.

Question proposed: "That the Bill be now read a Second Time."

This Bill is the necessary confirmation of the Emergency Imposition of Duties Order (No. 97), 1936, made by the Executive Council on the 18th February. That Order would, in accordance with sub-section (2) of Section 1 of the Emergency Imposition of Duties Act, 1932, have statutory effect for only eight months after the date of making unless confirmed by an Act of the Oireachtas.

The effect of Order No. 97 is to reduce by one-half the additional Customs duties imposed by paragraph six in the Schedule to the Emergency Imposition of Duties Order No. 5 of 1932 on certain articles of United Kingdom origin. The articles affected are those numbered two to seven inclusive of the schedule of the Order and they may be set out under the following general heads:—(a): ad valorem duty of 20 per cent. now reduced to 10 per cent., (1) cement, (2) electrical apparatus and component parts and appliances, (3) iron and steel articles such as machinery (subject to certain exceptions), bedsteads, bicycles and tricycles and component parts, bars, girders, etc., nails, screws, etc., barbed wire and steel cables. (b) Specific duties:—(1) sugar, molasses and glucose, 2/4 a cwt., reduced to 1/2; (2) saccharin, 9d. an oz., reduced to 4½d. an oz.,; (3) articles (subject to certain exceptions) made from or containing sugar or other sweetening matter, ¼d. per lb. or 3d. a gallon, reduced to 1/8d. per lb. or 1½d. per gallon.

The effects of the agreement are obvious. Whilst the Exchequers both in Great Britain and here will lose by the reduction in the import duty in both countries, the producers here and in Great Britain will gain considerably, by the extended market. We, on this side, are satisfied that a new agreement will go a long way to solve the problem of our surplus cattle, whilst the British are satisfied that the agreement will proportionately extend their market for coal, cement and other manufactures. Whilst it is not possible at this stage to assess the effects of the agreement in regard to the Exchequer returns, it is estimated that the reduction in duties collectible by the British Exchequer will be about £800,000, and the reduction in the home Exchequer will be, approximately, £200,000. The Minister for Finance, however, in the Dáil stressed the fact that these figures were given with the utmost reserve because of the many incalculable factors which enter into the Estimates. I think it should be stressed here, as it has already been stressed in An Dáil, that the agreement has been reached without prejudice to the issues which exist between the two Governments. It is a trade agreement of equal and mutual advantage to the two countries. The Emergency Order, which it is now sought to confirm by this Bill, gives effect to our part of the agreement in so far as it relates to the reduction of duties.

I hope I shall not be regarded as unduly inquisitive or presumptuous in asking for a little information in connection with the pact with which this Bill deals. I have glanced at the Debates in the other House since I came here and I cannot find any explanation of the financial or commercial reactions of this pact. The other House was invited to treat this pact as a business measure. As a business man I should like to know how much the Department of Finance estimates Britain will receive in duties under this instrument and what the Free State duties on the articles covered by the pact will in future be. I should also like to have the estimated benefits to this country rendered in £ s. d. Deputy Mulcahy asked for information on these lines in the other House and was told that the particulars were not then available. I can hardly believe that the Government rushed into this secret agreement without any advertence to its financial results and, if we are to treat it as a business matter, we should be provided with the necessary material for assessing its merits. As it is, we are asked to adopt a statement of accounts we have not seen.

There was a great deal of discussion in another place as to certain agreements made in 1923, when our present Ministers were endeavouring to help the then Government in their negotiations with Britain by suggesting that the annual tribute of the Free State would be £19,000,000 per year. I learn from the President and the Minister for Finance that a despicable bargain was then made—and that it was made secretly. The Minister for Finance quoted several columns of discussion from the Dáil Debates on the 1923 agreement to prove how inviolably and diabolically secret it was. I gather from the argument of the Minister for Finance that an agreement which is implemented by an Act of Parliament after public debate is strictly secret, but an agreement which is not officially published and the signatories to which are not known is public.

These are the Minister's tests of secrecy and publicity. I am not, however, concerned with the financial agreement of 1923. My only comment on that document is that this State was singularly blessed that the present Administration was not then in power. If they had been, they would not alone have given the British the land annuities but they would have handed over the £19,000,000 about which Mr. de Valera so gaily and so helpfully prophesied, as well as our entire import business.

I base that statement on the present pact. Let us assume that Mr. Cosgrave made a present of the land annuities to Britain. That is the only commercial present he is accused of making them. The British were providing an unrestricted market for our produce and we were giving their products no more than a small imperial preference. What happens under this pact? The Government which denounce the Ultimate Financial Settlement proceed to do precisely what they accuse Mr. Cosgrave of having done—handing over the annuities.

Nobody disputes the assertion that, under this agreement, Britain will collect all the money she is owed, as she has done up to the present. But our Government is still more generous. Not alone do they arrange to pay the annuities to Britain, but they proceed to make a present of our coal trade to Britain and one-third of our cement trade, with certain minor concessions. If Cosgrave had done that, how the welkin would have rung with denunciation ! And what does our Government get for their magnanimity? A return to the status quo ante of unrestricted free market? No. Instead of an unrestricted free market for our produce in Britain, we get a limited market and a heavily taxed market. That is the bargain which is presented to us for approval now by Ministers who howl about the Ultimate Financial Settlement.

Let me summarise the position as a Fianna Fáil Senator would summarise it. Cosgrave gave away the annuities. He secured the continuance of an unrestricted market and other concessions which are not germane to this issue.

De Valera gives away the annuities, the whole of our coal trade and a share of our cement trade. And he gets a portion of the market which Cosgrave succeeded in retaining.

Who was the better negotiator? Who did the better for the country? There can be only one answer to that question.

With this pact in operation, the economic war will be fought for one purpose and one purpose only—to enable the British to help themselves to the annuities and to grab our coal and cement trade at their own price while giving this country less than they gave in 1923. The British were to be starved out by this insensate conflict. Instead of starving them out, we are paying for the privilege of feeding them. Our Government has presented to Britain the only portion of our trade which is of any substance. If Britain asks for more on the next occasion, what is to be the answer? Fiscal control was won by a great effort in 1921-22. This pact is the first nail in the coffin of fiscal autonomy—and the Government know that.

If there were any sense of shame in the Government, this pact would have been kept as secret as the names of those who signed it. Written all over it is the word "Surrender" and it is not a manly surrender but a crawling and ignoble surrender. The Government have degraded the country and no amount of loud talk or braggadocio can conceal the degradation.

I support this Bill and I approve the renewal and extension of the coal-cattle pact. The farmers welcome this pact but they are disappointed that the Government could not manage to obtain a better settlement. The farmers welcome the pact in the sense that a person under sentence of death would welcome a reprieve although that reprieve meant penal servitude for life. In considering the attitude of the Government in connection with the economic war, I have often wondered whether members of the Executive Council were aware of the hardships, the misery and the poverty they are inflicting on the farming community. If they are aware of that, I say that they are the most cruel and most callous men this country ever produced. I do not believe they are aware of the state of affairs. I do not believe they are aware of the ruin which their policy is inflicting on the country. My own opinion is that they have been wrongly advised from the start and that they continue to be wrongly advised. We have heard a lot of talk by people who are supposed to represent the agricultural community. We have heard speeches, from time to time, from members of this House who are supposed to represent the agricultural industry and the cattle trade, such as Senator MacEllin, Senator Quirke, Senator Lynch and others. The Government, in considering all that advice, must have come to the conclusion that all that foolish talk has been exploded. They must have come to the conclusion that England can pay for our cattle, that England is not broken and that England provides the best market we can get in any part of the world for the sale of our live stock and agricultural produce. In fact, England is the only country which wants to take anything from us. We have heard of pacts with Germany on a three to one basis, the former basis being 16 to one but, even with the tariffs we have to pay to get into the British market, the British buyer is still able to pay a better price than is obtainable for cattle sent to Belgium or Germany. That is admitted by everybody who knows anything about the situation.

I should like to know from the Minister if there is any possibility of making a better settlement or how long it is intended to let the present state of affairs continue. According to the Minister for Industry and Commerce, the Government are now aware that the farmers are suffering. In discussing this Bill in the Dáil, the Minister said that they appreciated that the farmers had suffered loss, and were suffering loss, but Deputies opposite would some day realise that the farmers who had put the Government into office had the fire of patriotism in their veins, and had an appreciation of what was good in the nation's interest. What return are those farmers who have the fire of patriotism in their veins, and who put the Government into office, going to get from the Government?

I was speaking to a rate collector in County Dublin the other day and he assured me that, before this month was cut, he would have hundred and hundreds of processes served on the farmers of the county for recovery of rates. He said he was compelled to issue these processes although he knew that, when decrees were got, they would be useless, as the farmers had not the money to meet them. The farmers of County Dublin are law-abiding. They would pay if they had the money, but they cannot pay when they are without resources. Is this the return that these farmers with the fire of patriotism in their veins, who helped to put the Government into power are going to get—to be always compelled to man the front-line trenches in the economic war, to produce the funds to carry on the war, and, when they have done that, to have the sheriff and the bailiffs sent out to break up their homes, seize their last cow, calf, or horse, and prevent them from providing food for their families? I implore the Minister to use his influence in the Executive Council on behalf of those farmers who are not able to pay. I ask him, at least, to institute an inquiry and not send the bailiffs to the houses of these people, if he finds that they have not the money and cannot meet the demands. There is no use in saying that this is an organised effort not to pay rates. If, after making that inquiry, the Government are satisfied that these people have the money and will not pay, they can then send out the sheriff and the bailiffs but, until that inquiry is instituted, it is a dangerous practice to send the sheriff and the bailiffs to take the last cow or the last calf from the farmer and prevent him from producing food to maintain his family. If you bring the farmers into court and show them up to such an extent, you will create a dangerous situation in the country because, if the farmers lose their self-respect, they will lose their credit. They will then become desperate and, eventually, will not care what happens.

I should like to say a few words, with regard to this pact and the great boon it is represented to be. The only boon it is is that it gives us an opening for more cattle than we have to sell because, last year, the quota was not filled. I learned from a Government official that, by last November, there were between 9,000 and 8,000 of the fat cattle quota not filled, and I am certain that the numbers are very much greater since that date. That proves that, while this pact provides a certain relief, it is merely prolonging the agony and putting off the evil day. The evil day will not be long postponed because we cannot produce cattle and pay the tariffs which Britain is imposing even under this pact. The tariffs have been slightly reduced. The tariff of 25/- previously charged upon a calf has been reduced to £1. When that calf is fed for another nine. months it is £2. Will Senator MacEllin admit that a farmer cannot feed a beast for nine months and pay a £1 tariff? Can he feed him for another nine months and pay another £1, that is £3, and when the animal becomes two years' old can he turn that animal into beef and pay £4 5s. in the way of tariff? I say the position is impossible. Farmers cannot pay a tariff which would mean for them less than the cost of production. In the end there will be no necessity to enlarge the cattle quota because as time goes we will be unable to fill the quota; we will have less and less to sell as the years go by.

I appeal to the Minister to take this matter into consideration, and to use all his influence with the Executive Council. As we are paying at the moment what England claims is her due, could we not make some attempt at a settlement? Everyone can see England is determined to collect the amount they have in view, and that they have the means of collecting it and in a way that causes most disadvantage to the farmers of this country as a whole. Would it not be a wise thing in the circumstances for the Government to take their courage in both hands and make some attempt to settle? If they do not succeed then let them come back, and, as Senator Jameson said some time ago, any help the Opposition can give will be given if they show that they had made efforts to settle this question.

I should like to express my disagreement with the opening words of the speech made by the Senator who has spoken last. I would not have risen to speak at all only that the last speaker had said that the farmers welcome this pact. I have been at consultations and conferences with farmers since this pact, and, instead of welcoming it, they are in the depths of despair about it. That is my view, and it is the view of the farmers, too, to whom I have referred. They look upon that pact as putting the seal upon the policy and the principle adopted in this country since the annuities were first retained. They look upon it in this way; those annuities had no right to be retained under any programme, and were retained in a gratuitous way and without any authority. They regard the continuance of that policy, in this pact, as if the live stock industry of the country was being pawned for the purpose of obtaining other necessary commodities for the people. The live stock is practically the only export from this country. And the live stock export has been reduced from something like £17,000,000 some years ago, to £6,500,000 last year. Live stock is exported from year to year for the purpose of importing manufactured articles, machinery and coal. The farmers know that they have to rear and produce live stock to pay these tremendous tariffs put upon them, for the purpose of the imports of the other materials I have mentioned. This pact seems to be continued as an express act of hostility to the live stock branch of farming in this country.

Live stock raising is the very head and front of the agricultural industry. There is no other branch of agriculture, dairying or tillage, but depends upon the live stock as the producer of wealth. The Government in this last pact seems to have decided that the live stock branch of the industry must be continuously and perilously kept in pawn through these tariffs. The significance of the pact, in this respect, is very bad and has made conditions impossible for the farmers.

But there is another aspect of the pact which is left out of consideration in connection with the raising of live stock. The prohibition put upon the export of dressed meat is absolutely ignored. In Waterford there is a dressed meat factory in which I am much interested, and in which 6,000 farmers are interested. We started a dressed meat business with Smithfield, and in the last six months a canning business was established with them. That is a seasonal business and lasts for only three months of the year. But no provision seems to have been made, or easement sought, in respect of the dressed meat exported from Waterford. It is, without doubt, one of the greatest wealth producing industries this country could have. I know there are some Senators here, and possibly some people outside, who may disagree with me on that, but I have authority and experience for making that statement. There is no competition in first class dressed beef from this country to Smithfield except Scotland. But Scotland is by no means able to supply the full necessities of Smithfield. We have a canning factory in Waterford that cost £30,000 or £40,000. It is idle for eight or nine months of the year until the seasonal canning takes place again. What is going to happen to that great industry with all its plant and everything else there to carry it on?

There is another very significant thing to be considered. In connection with all the industrial revival and trade development, there can be no hope of any great export trade from this development, because the trade is protected and restricted, and the cost of production is so high that you cannot hope for a favourable export trade. So that our whole dependence must be on live stock raising, and the surplus product of that industry for the purpose of importing other products. The Government have completely ignored the agricultural farming interest in this matter. I do not think there is anything further I may say except that I want to emphasise, and strongly emphasise my disagreement with the opening remarks of my colleague in saying that this pact was good for the farmers. It simply means that the production of animals in the face of tariffs that are imposed cannot continue for any length of time.

I do not profess to be in a position to discuss this matter from the purely farmers' point of view. There are other Senators on this side of the House who will deal with that aspect of the case more effectively. Senator MacLoughlin, as a business man, has made some remarks which I, as a business man, would like to question. He referred to what he described as the tremendous sacrifice that the present Government had imposed upon the people by reason of the fact that they have given away our entire coal trade as part of this bargain. One would imagine, from that remark, that it was a customary thing to see ships from all parts of the world—Poland, Germany Russia, France, and all other countries—sailing into the ports of this country with cargoes of coal. The truth is, of course, that not a ton of foreign coal entered this country until the present Government came into office, and during the strike of 1926, when foreign coal came in, not only to Ireland but to England.

It is the same with regard to cement. Cement has been used in my time, and contracts for it had been advertised. Certainly in the last years under the housing schemes of the present Government very considerable quantities of cement have been imported from Belgium as well as from Britain. But all the time imported cement was used. This pact is called the coal-cattle pact. If we are to speak strictly of the terms of settlement it will be found that the sum of £5,250,000 of land annuities, and R.I.C. pensions, which a former Government agreed to pay, and actually did pay to England, amounted to a sum per capita of the cattle exported of £6 19s. 10d. That is what the late Government actually agreed to pay. The maximum export duty payable now is approximately £4 5s. per head, and the minimum £2 5s. per head.

£2 per head.

Taking the average for big and small, it would be not more than £3 per head under the present agreement, so that if you take it in terms of cattle alone, the cattle producer, as a part of the Irish nation, has an advantage of nearly 100 per cent. That is the proposal of the Government.

A sound argument!

It is very much better than paying the land annuities and having no charge at all on our cattle. I think I have dealt with the arguments regarding coal and cement, and I will leave the questions raised by Senator Counihan to be dealt with by some of my friends here. I may say that I live among a comparatively poor class of farmers, and I do not hear any of the complaints from them that I hear in this House from gentlemen representing the big farmers, who have lands which can grow wheat and all the other crops. The small farmers of my county have none of these advantages at all. Hearing the speeches of some of the people in this House who say that they represent the views of the farmers, would cause you to imagine that you were at the Wailing Wall of Jerusalem. I know farmers who are making money now — more solid money —than even they made during the big price periods of the war.

Getting the dole!

I did not wish to intervene in this debate, but arguments have have been raised by Senator Honan with which I do not agree. There has been a lot of talk on this subject of the economic war. It is something like the mountain in labour that brought forth a mouse in the shape of the coal-cattle pact. Now, I hold strong views on this economic dispute, and with the permission of the House I should like to read a statement which sets out my views. I do not believe I can be contradicted, after my 70 years in the cattle trade, if I say that the cattle trade is the staple industry of this country. I have been a tillage farmer all my lifetime, carrying on mixed farming, and I believe in it, but there are other parts in Ireland where grazing is more popular owing to the richness of the land. The statement I wish to read to the House is:—

"I have had, and still hold, very strong views on the ‘economic war' that unfortunately has existed in this country for now almost two years — (it was two years ago that I made this statement). I am in agreement with Mr. de Valera's condition in his statement that there can only be arbitration on condition that the Chairman should be a statesman entirely independent of the British Commonwealth of Nations. My reason for this is based on the result of the decision arrived at by the Feetham Commission on the Border. I wish to say that the partition of Ireland, which renders this Commission necessary, was the greatest injury ever inflicted on this country. I formed the strong view that Sir John Feetham, as Chairman, gave ample proof of favouring the British claim and the Northern majority. With regard to the present deplorable position of our staple industry, especially the cattle-breeding industry, I desire to say that as farmers we are almost, if not entirely, bankrupt, and there seems amongst the members of the Government a callous indifference to the interests of the prosperity of the farmers. Personally I hold that arbitration should be agreed to on the condition made by Mr. de Valera, and the question be decided by legal argument as to whose obligation it is to pay. We have the opinion of Mr. Cosgrave, late President of the Executive Council, in whose judgment I have the greatest respect and belief, backed by his legal advisers, that the annuities were due by the Free State, and we have the present Government and their legal advisers giving their opinion that the annuities are not due by the Free State, and they are retaining them in a Suspense Account, as they call it. This grave position as to the rights or wrongs of the dispute should be settled... I attach the blame to Mr. J.H. Thomas for refusing the offer of Mr. de Valera, as I think the great British Empire representatives — on whose dominions the sun never sets, is their proud boast—should show a more friendly spirit to a small country like Ireland. The history of our past connection with England would encourage us to hope for a more friendly gesture to bring about a solution which would be for the mutual benefit of the two countries. I may say that the levy made by the British Government on our agricultural produce to the full amount which they claim as being due is not a transaction that redounds credit to the British Empire as ‘the power to do ill deeds makes ill deeds done'."

These were the views I held two years ago and I hold them firmly still. I do not want to enter into the pros and cons of the legislation we had lately from the Government. I hold very strongly that Britain's action is really a covetous way of dealing with this country without having the issues threshed out. I have a great deal of experience of farming and of people depending on farming and the opportunity of knowing exactly how the farming industry is being affected at present. I had an interview recently with a clergyman, a great friend of mine, who had an intimate knowledge of five or six important farms in County Carlow. After seeing how these farms have been worked, he concluded that if the farmers had worked the land in the ordinary way it would not pay for the last three or four years. That is the position in the country, and though I do not like to say anything that may seem unreasonable, I say that it cannot go on. The new pact turned into money, means only a difference of 15/- per head from the previous tariff on the older cattle. The duties are lower on the younger cattle but they are of smaller value and fewer of them are sold. People throughout the country do not want to bring forward cattle at a young age if they can keep them for a while longer and get a higher price. It is a question, as far as the tariffs are concerned, either of taking the money out of people's pockets and paying the annuities or paying the money through these tariffs imposed by the Government of England, which I described in my statement as an unreasonable and unfair method of chastising or punishing us by reason of the historical past. The longer an injustice is practised is all the more reason why it should be the sooner abolished. I say without fear of contradiction that it has been a great injustice to the farming industry to carry on with these tariffs on the property of the people. It is an old characteristic of the Irish character that nobody likes to be complaining of poverty. I know, for a fact, that there are a lot of people who are a great deal worse off than they let on and the sooner that is brought to an end, the better it will be for the country. It is not the question of whether we make coal-cattle pacts or any other form of pact; it is the question of settlement, and the longer the injustice goes on is all the more reason why it should be stopped. The country is in a very deplorable state and I am afraid there is no apparent hope for the live-stock industry.

I want to refer to remarks which have been made by Senator Counihan which have been misinterpreted. Senator Counihan welcomed the pact and I also welcome it, inasmuch as it gives us a market for our cattle. Two years ago when we had no market and when cattle were a drug on the market and valueless, we were delighted to have an opportunity of sending an increased quota to Britain under the coal-cattle pact. It relieved the situation which existed then and the continuation of that particular line of action is welcomed by Senator Counihan, not that he considers that the country is getting what is due to it, but because it is better than nothing at all. He looked at it from the point of view of the man sentenced to death, whose sentence is commuted to penal servitude for life. This agreement has been spoken of as a pound for pound arrangement. That is a misnomer. British coal and British cement come in here free of duty and our cattle and produce going into the British market are subject to tariffs amounting to over £4,000,000. That is on a trade which is only worth £6,000,000 or £7,000,000, or at the most £10,000,000. We pay £4,000,000 on our cattle while the British pay nothing. I cannot see how you can consider an agreement of that sort as a pound for pound agreement. I appreciate the fact that there are political difficulties which are incapable of solution. We know the position that the Government are in. They refuse to accept the position of this country as a dominion, and the British, on the other hand, will not agree to a settlement unless we do accept our position as a dominion. That question is leaving the solution of our difficulties with Great Britain impossible, and, when the farmers down in Kilkenny are complaining, they forget that, unless we in this country make up our minds to accept the King of England or the King of Ireland, we can never have a settlement, and if we do not accept that position, we will have to agree to this kind of settlement by tariffs, and the reduction of tariffs, year by year, as conditions seem feasible, and look upon that as the normal way of settling these affairs, year by year, in any particular pact that may be concerned. The Government say that they will not have a representative of the King of England in our Government and, therefore, we are suffering and I do not see any solution of the difficulty in that way.

Now, our friend from Clare was talking about the grand position we are in because we were paying so much in tariffs on our cattle some years ago, and that now we are in a better position because we are only paying about £4 5s. of a tariff. He forgets that the fact of our cattle being tariffed to that extent has meant a reduction of £4,000,000, that it has made a difference in the cattle trade of £12,000,000 of a national loss, and that that leaves the farmer in a rotten position to pay his debts. It also leaves out of account the fact that, if the farmer is unable to pay his debts, the other people depending on, or connected with, the farmer are unable to carry on their business. As a matter of fact, I am surprised that we have been able to carry on as well as we have done, in view of all these circumstances. Of course, I understand that the money that is being devoted for building purposes and so on is all helping the people to carry on; but I hold that prosperity gained by such methods is a fictitious prosperity. I am afraid that that kind of prosperity is of a transient character and that the time will come — although I hope it will not — when we will have to face up to the proposition of either acknowledging the King or else condemning ourselves to a lower standard of living in this country. Of course, it must be admitted that, if the people are satisfied with regard to that, there is no one to blame. You cannot blame the Government for that. Senator Counihan asked why do we not have a settlement. I put it to Senator Counihan that we cannot have a settlement, that there is no settlement possible, as things are, and that the only thing to do is to have a pact like this year by year. As things are, you are up against a deadlock. On your side, you say that you will not acknowledge the King, and on the other side they say that we must acknowledge the King or else there will be no settlement. We would all appreciate a settlement of this question, but, so long as that is the position, I feel that no settlement is possible, except along the lines now being pursued — the line of getting something for something.

There is another point to which I should like to refer, and that is that, when we had an open market, we only paid something over £3,000,000 in the way of annuities per year to Great Britain, and so much by way of R.I.C. pensions and so on, bringing the total up to somewhere like £5,000,000 per annum; but by reason of the present trouble, Britain has collected about £6,000,000 per annum from us—in other words, almost £2,000,000 more than she would have been able to collect under the former arrangement. That is a well-known fact, and since we have agreed to that imposition then we are consciously expected to pay. In addition to that, the farmers here are asked to pay half their annuities into the Exchequer. I suggest that that is a position that the Government and all of us have to face up to, and I say that if we are going to continue with this economic struggle, then these tariffs should be paid for by the general taxpayer and not by the farmers alone. I say that there should be an automatic arrangement with regard to the payments to be made by the farmers in connection with the tariffs collected yearly and that you can pay your R.I.C. pensions and annuities in that way, and that the burden should be spread amongst the general taxpayers of the country. In that way, I hold that you can raise automatically the value of the stock owned by the farmers, whether in cattle, horses, sheep, or whatever it may be, by millions of pounds, and thus not alone help the farmers, but help the merchants and importers, and so on. In that way, you can inflate the whole market, and I think that if you can get that into the Government's mind you can carry on the economic war. I think it will be admitted that none of us are dying to recognise anything that we cannot help recognising, but I suggest that that would be a way to carry on.

I should like to say that I thought that this debate had jogged along very nicely until Senator Wilson started talking about tariffs and what not. With regard to the question of tariffs, I have said here before, and I repeat it now, although it would be very hard to prove it, possibly, that the tariffs that had been put on by England are not being paid in full by this county. The case is just the same as that of any other tariff. Let us take, for example, that it is the case of a tariff placed on goods coming in here. Let us say that we put on a protective duty on goods of any description coming in here. That does not mean necessarily that these tariffs should raise the cost of living, so long as there is a certain amount of that particular commodity being manufactured here already. If, on the other hand, it does mean the raising of the price here, or if the people here are paying the tax that was put on as a customs duty, well, then, the people on the other side are doing the same. You cannot have it both ways. However, it is a general belief of people in the trade that, if there were a complete settlement to-morrow by way of a reduction of the tariffs by that amount, that would not mean an increase of the price here to that extent. I do believe — and I am talking quite frankly on this matter — that the only class of stock that would show a substantial increase, if the tariffs were removed, would be the old cattle. I believe that they would show a substantial increase, but I do not believe that other classes of cattle would show any substantial increase. I do not believe that the two years old or two-and-a-half years old cattle would show any increase, because I believe that, circumstances being such as they are, the live stock exporter as such is the best gambler in the world, and if he sees a chance of gaining a shilling, he will take that chance, and, as a result, when the time comes for a reduction of these tariffs or for the wiping out of the tariffs, the people who sell the smaller cattle will all realise that they are not getting the benefit that the Opposition has led them to believe they will get. It must be remembered, as I say, that the British themselves are paying portion of that tariff, and the keenness of the buying at the present time in the small cattle actually is above what prices on the other side will justify. We have had an example in the West of Ireland only to-day, in connection with cattle put in last autumn, and it is a well-known fact that they are paying from £3 to £4 a head since last autumn. There again, however, these sort of arguments will not help us one way or another. There must be ups-and-downs in connection with a question of this kind, and I believe that, even if there is a settlement, we will not get an increased price as a result of the settlement of the tariff question.

Senator Wilson talked about the reason why you are not going to have a settlement, and said that, in effect, it was because we refused to recognise the King or to recognise that we are a Dominion. If that is true, I suppose it is a case of the arrogance of the idle rich, or well-to-do, blackguarding the weak nations again, and certainly, if that is the case, there is a clear demonstration there of that black-guardism towards a people such as ours here. Well, the arrogance of England in the times gone by did not for one moment shake the confidence of the people here in the fundamental principles, or, if you like, in the tradition that has been handed down to them. There is no question about it whatever, even though some of us here, in our anxiety for temporary gain, might be willing to compromise, that the people of the country in general would stick to their traditions and their principles regardless of what price they might have to pay for thus sticking to their principles, and I hold that there is no reason for trying to force them away from their tradition.

What is the tradition?

On a point of explanation, Sir, I did not say that the people were to be forced away from their principles or their traditions. I said that the position that the Government was in was forcing them into that, but I did not say that they were wrong.

All right, Senator, I accept that. In any case, however, to get back to the point, all I am asking is why should England expect allegiance or subserviency from the people here any more than they would expect it from, say, Denmark or the Argentine —the Argentine, which to-day supplies something like 75 per cent. of the beef trade of England?

And it is 6,000 miles away from England.

Yes, but modern steamship transport brings it within a few days of England.

Nonsense!

Modern transport has brought the Argentine within a few days' reach.

Do not misunderstand me deliberately.

My point is: Why do not the British ask or expect from the Kingdom of Denmark, or from the Argentine, the subserviency that they seem to expect from us? I was reading an English paper last night — I am sorry that I have not the quotation with me, but I shall send it to any Senator who wishes to read it—where it said that, in connection with Denmark's and the Argentine's supply to Great Britain, it has been ascertained that, in the last 10 or 12 years, the root cause of foot and mouth disease in Great Britain has been directly traceable to the imports from Denmark and the Argentine. Representations were made by the National Farmers' Union in England pointing to the serious situation that in the previous 10 years this dreaded disease had cost them £5,000,000. The Minister for Agriculture informed them that, for reasons which it would not be in the public interest to give, the Government did not intend to take the necessary steps to stop imports from those countries.

There is this further point to be considered: the Argentine is a Republic and Denmark is a Kingdom, and England is prepared to give to both more concessions in the matter of trading than she will give even to Australia. There was the remarkable spectacle witnessed in the last six months of the Premier in Australia coming over to England with his hat in his hand seeking a concession because the British Government had put a tariff on Australian meat. These are some of the things that have happened. When one thinks over them they cause some surprise. Before the big war, Denmark was sending 80 per cent. of her food products to England. During the war, when England was fighting with her back to the wall, you had the extraordinary situation that instead of sending her food products to England, Denmark sent them to Germany, because she got a better price for them there. Yet England prefers to deal with Denmark than with a country that is beside her, a country, too, that sent over its kith and kin to help her on the battlefields of France. There is nothing to show that either the Argentine or Denmark helped her in that respect between 1914 and 1918. All that goes to show that it is not the loyalty or the allegiance that you give to England that will get you anything from her. It is the price that you can demand, and perhaps at a not distant date in the future England will be glad to yield to us when she is in a difficulty, as she was during the war, when she was glad to take all the food stuffs that we could send her.

I, personally, would like to see as free a flow of trade as possible between this country and England, but not at the price that she can extort from us, a price that we must pay whether we can afford it or not. If that price involves the sacrifice of fundamental principles on the part of our people, then, obviously, there can be no deal. It seems clear to me that this pact is evidence of the fact that the British are coming down to a sense of realities. They are beginning to realise that they have completely lost the Irish market. That market is worth at least £1,000,000 to them. They are prepared to pay that price in order to get back the Irish market which they have lost. They want to get back our trade that has been scattered all over the world. It may not have been of much value to us, but the British people realise that the Irish market is a valuable one. The concessions that we have given them are far less than the concessions they were able to secure during the ten years that the Cumann na nGaedheal Government was in power when they had complete free trade in this country not only for all their manufactured goods, but for their coal as well. This pact is appreciated by the farmers, and I hope that every opportunity will be taken for extending it. It has, however, to be borne in mind that, no matter what trade agreements are come to with the British, the Irish people are not prepared to surrender their fundamental rights. On these they must insist.

I am afraid that Senator MacEllin is not quite right when he says that the people of this country are not paying the whole of the amount collected in these special tariffs by the British Government. If the British had no source of supply of substitutes, then, of course, they would pay most of it, but the circumstances being as they are, with the British being able, plentifully, to draw on equivalent goods from other countries, their prices are not affected at home, and the whole of the tariffs is reflected in a reduction of the prices obtained by our people. I think if the Senator examines the situation he will be forced to acknowledge that, in this particular case, the whole amount collected by the British in the special tariffs comes out of the pockets of the farmers, and, in fact, as has been pointed out by other speakers, our farmers lose a good deal more because the internal price is depressed. That is why, as has been acknowledged by the President of the Executive Council, the British are not only extracting the full amount involved from us, but they are extracting it in a way that causes the utmost dislocation and that does more economic damage than would result from a direct payment. Not only are they getting the money but they are upsetting our markets and causing a whole variety of reactions.

I do not agree with Senator Wilson when he says that the Government is not to blame for the situation or, when he says, that because there is a feeling for a certain thing that then the Government has to accept that position and take no action to clear up the situation. As a matter of fact, it is the duty of the Government, I hold, in all the circumstances to lead the people. If they are convinced that a certain thing is right, it is their duty to persuade, as far as they can, the people to agree with them, and, if the matter is of importance, it is ultimately their duty to go out of office and allow some other people to carry on a policy which they do not approve of. One cannot simply say that there is a stalemate and that the Government have no responsibility in regard to it. I think, in regard to every aspect of this matter, that the Government is responsible for making up its mind to do what is right, and of trying to get the people to agree to that thing being done. That is why I find many of the statements of the President of the Executive Council on the political situation objectionable and weak because he does not say what he thinks ought to be done. He talks about some view which may or may not be supported by a majority of public opinion. To say that that is what the people want rather suggests that it should be the ultimate view, whether it is right or not. As I have said, I do not agree with Senator Wilson that the economic difficulties could not be settled without a settlement of the political difficulties. I agree that the economic difficulties can be settled. This pact comes as a kind of partial settlement of them. What I would say is that to get the best economic settlement it would be necessary that the political difficulties should be settled simultaneously. It will be obvious to anybody that if there are two disputes going on simultaneously between two parties, you cannot get one of those two disputes settled on the most favourable terms unless you simultaneously settle the other, but it would be quite possible for this Government to bring the economic war to an end to-morrow by a variety of settlements. I fancy that, ultimately, if they pursue the line that is shown in these two pacts, we will reach the position where the economic war will have ceased and where that side of the dispute will have altogether disappeared. I think it will not have disappeared on the most favourable terms. In fact, what will have happened is this: that the whole matter will have been opened up and will have been fought out at great length with great immediate loss to the farmers, and, in the end, the position will be that we will have a liability in a different form for the full amount that was being paid before the economic war started, or very nearly so; whereas there are any amount of indications to show that, if the Government were prepared to face the whole issue, the economic dispute could be settled on terms extremely favourable to this country.

I would never suggest that one is going to completely submerge the political aspect in the economic aspect. I feel that we want the political dispute settled by itself and for political reasons, just as much as we want the economic dispute settled for economic reasons, because I believe that there is no possibility of going forward to the next stage of national advance without some deliberate and definite settlement of the political difficulties. I regard that form of national advance as involving a reunion of the country and the undoing of Partition — an aspect of the Treaty which, whatever views people may hold about the Treaty as a whole, was accepted with the greatest reluctance. If that is to be undone, there has to be a facing up in a realistic spirit to the political issues that are before us. That seems to me to be an additional reason why the Government should seek to go into the whole matter, by way of negotiations, and settle at once both the political and the economic issues. If that is done, there need be no question of going back in any respect to what was, say, the precise position that existed before.

I am glad that these two pacts have been entered into. It has already been pointed out that the first coal-cattle pact relieved a situation that was very menacing because of the large surplus of cattle which could not be disposed of at any price. It enabled them to be disposed of at an unfavourable price, but still it got us out of a serious crisis. This present pact goes a little bit further. I do not agree with Senator MacEllin that this pact shows a change of attitude on the part of the British. I think that in these two pacts the British have driven an exceedingly hard bargain, and that what these pacts show is rather a change of attitude on the part of our own Government. I think that our Government in these pacts have come to face things in a more realistic spirit. The main, hard fact is that the British believe that these moneys are due to them, and that they are finding it possible to collect those moneys which they believe to be due to them.

Our Government has reached the position where it acknowledges that the British are in a position to collect these moneys, and is prepared to make arrangements which will not interfere with that collection, but which will rid us of some of the disadvantages arising out of the dispute, and the method of collection adopted by the British. That is an advantage, but it does not take us very far and is not winning us anything. It is really getting us something less nearer what Ministers called the winning of the economic war. Because of that I think the Government should cease to be content merely with the nibbling policy and should take a big step forward. I believe a nibbling policy will not get us very good results, judging by what has happened up to the present, because it looks as if the whole attitude of the British was going to be one of extremely hard bargaining. Perhaps, in view of the circumstances of the dispute, you could hardly expect anything else, because people will only give more than they are going to give when you are going to have a settlement. If things are half way, and if negotiations were to go on month after month and year after year, the position with the person bargaining, the one who has to give concessions, is to hold back, not to give freely full concessions that would be to his advantage, perhaps, taking the long view, but rather to have something in reserve to meet future demands.

I think it is manifest, if you like, that the British have the trump cards because of their superior strength and greater economic strength. They are the people who have to give concessions, if concessions are to be given. If Ministers go along in this way we will get a settlement of the economic war by a bad process, and it will not give us the good results which could be got, even if we faced up to the economic dispute separately, and apart from the political dispute, and very much less than if the two things were faced. Negotiations are the basis upon which an attempt to make a settlement should be made. I do not want to go over the legal arguments but, personally, I do not believe that any tribunal set up to deal with the matter from the purely legal point of view would be likely to give a decision in our favour. I think the Hague Tribunal is the wrong one. I have frequently objected in that connection to the British attitude and to their refusal, so far as they could refuse, to have an Inter-Commonwealth settlement at the Hague. It would be much better if the dispute between this country and the British could be settled by that International Court, just as disputes between Switzerland and Germany, and Switzerland and Spain could be settled by an international court. I am not sure if it is not fortunate in the present case that the British took up such an attitude, because I fear if this was hailed before the Hague Court it would not give a result anything like as good as could certainly be obtained by negotiations on the whole issues between the two countries at the present time. I hope the Government fairly soon will move forward in this matter and will try to reach agreement on wider issues. It is unfortunate that in order to get sale for our cattle we have to pledge our coal market entirely to the British, and that we have to give them a monopoly — and apparently we are — as well as the cement market and other things.

It is perfectly true that we bought our coal from the British when there was free trade here, but, at any rate, we were free to get it wherever we liked, and if any particular situation arose the British had no monopoly and had not the temptations of a monopoly. It is extremely hard, when faced with a monopoly, to be sure that the monopoly is not in some way or another, even in a modest way, taking advantage of its position to extract a higher price or to give less value. It will be found in the long run that a British coal monopoly here will mean that something more is being paid for coal by the people than would be paid if they were free to go to markets that were there before the British had all the trade. When we come to other matters it is more serious. In the past we bought the majority of our manufactured goods from Britain, but other countries were free to come in, and there was that competition which ensured lower prices and the best value as far as competition could influence it. If we are to go along this path of giving further monopolies to the British, it means in an indirect way that we are going to pay a proportion of the land annuities and other things that are now paid by indirect tariffs on our exports. For every reason it seems to me that the whole matter should be faced up to in a somewhat different spirit, and that there should be an extension of the changed attitude that the Government has manifested; that they should say: "Here is an economic problem. A claim is made against us. Our Government denies the claim. In any event, the amount is being collected, and as there seems to be no immediate prospect of an immediate cessation, we should reach whatever agreement we can with them that would give us the greatest advantages." For many reasons I think we can get them in the British market, and better than fair play, if we bring forward all the factors into account.

I remember either the Minister for Agriculture or the Minister for Industry and Commerce talking in the Dáil about the refusal of the British to give certain concessions regarding meat imports to New Zealand. Of course, there is a fundamental difference, from the point of view of any British Government, between the position of this country and the position of New Zealand. That is where the factor of distance comes in. For obvious reasons it would be beneficial to Great Britain to have a big source of meat supplies here, rather than in New Zealand, and it would be worth the while of the British to pay something for that. Even if you agree with what Senator MacEllin said there is a reason why they should trade with this country rather than with Denmark. In certain circumstances it might be of importance to the British to know that there was a big supply available in this country rather than in Belgium. I agree with Senator MacEllin that it is not gratitude mainly that gets a good bargain, but to be in the position to demand a price. However, I think other factors count and ease the position when making a good bargain. I hope the Government will get into a position to make a good bargain, that they will proceed to make it and not be ashamed or afraid to make it. I do not think there is anything derogatory in taking up the attitude of facing facts, whatever they are, and the Government doing its best for the people in any circumstances in which it may find itself. One might say that it was terrible to surrender this money or that money but I think one should look at what is the ultimate gain and the ultimate loss. I think we are losing by treating the land annuities question as we are treating it; we could be better off. The effect of denial of any right is that they found some other means of securing the money. Even if it is acknowledged, theoretically, that they are not entitled to it and, if we do not give it, and if we find means whereby they do not get it we have gained our point much more than by protesting from the hilltops, and continuing to have to pay it by some round-about method. The Government should look at that view of the question and should face the political issues in the same spirit.

I see no prospect of national reunion in Ireland if this part of Ireland leaves the British Commonwealth. National reunion and the bringing of the whole of Ireland into one state and under one flag disappears practically for ever — it is certainly indefinitely postponed — if we separate, because all the differences and all the barriers that exist are going to multiply, and reasons will be created for the British which do not exist now to oppose reunion. Perhaps that is outside the terms of the Bill, but in any case I hope the Government will face up to the issues and try to make a full settlement.

The debate has taken a very wide range and, listening to it, I felt that there was more propaganda with the object of telling us what the speakers thought than of the question of a settlement between our Government and the Government of Great Britain. I think Senator Counihan will get himself into serious trouble for what he said. He rather spilled the beans, when he recognised that this was a step in the right direction calculated to help the farmers. Having listened to the speeches of the other representative of the farmers one would imagine that they were the only people who were suffering by the economic war. They should remember that when we were getting German and Polish coal we were getting it a good deal cheaper than British coal. Before foreign coal ceased coming everyone was satisfied that it was as good as the best British coal. The working classes here are suffering owing to the increased prices of coal.

And everything else.

I do not want to be interrupted. I could deal with Senator Miss Browne if I liked. I am not going to take any notice of her. Listening to the representatives of the cattle trade, one would imagine that the British market was an El Dorado, that all we had to do was to keep the British market, and that this would be a land flowing with milk and honey. Let us see what happened when there were no restrictions against Irish produce entering the British market, when we were paying our land annuities like good people; telling the English what good people we were by saying to them: "There is £5,000,000; there are the land annuities." What was the prosperity of the working people here then? I will tell you. We heard representatives of the cattle trade frequently beseeching the Government for grants and indemnities, because of outbreaks of foot and mouth disease. They complained that they were ruined and that desolation stared them in the face. Old age pensions were reduced although we had an unrestricted British market in a land that, at that time, was said to be flowing with milk and honey. We had to take 1/- a week off the poor old people although we had that unrestricted market. During the same régime, with an unrestricted British market, we had curtailment of unemployment benefit. The employers' contribution was reduced and the benefits of the unemployed people were reduced in proportion. We had then very little if any social legislation. We had the "great white horse," the great machine, that was to revolutionise industry in Ireland — the Shannon scheme. The wages allowed to the people employed on that scheme, even with the unrestricted British market, were 29/- per week. Is that the prosperity to which you want to bring the working classes and the poor back? You want an unrestricted market to make the rich richer and the poor poorer.

What are the wages to-day?

We have not the Shannon scheme to-day.

What are the wages on the land to-day?

I was not talking about agricultural wages.

Why not deal with them?

I venture to say that any man employing a labourer on a farm is hardly paying him less to-day.

He is paying less.

I doubt that very much. A farm labourer with 25/- per week and allowances would be much better off than a labourer on the Shannon scheme with 29/- per week.

How many farmers are paying 25/- per week?

I claim the protection of the Chair from these interruptions.

You need it.

Senators should allow Senator Foran to proceed. They can contradict him later.

I cannot deal with the matter when a whole lot of people are jumping at me.

The Senator should be allowed to proceed without interruption.

I may be hurting their feelings, but I want them to face up to facts. One would imagine that, when we had this free unrestricted market, we had a high state of prosperity. I am pointing to some of the things we really had. I pointed out that Senator Counihan had been complaining from time to time here that the cattle trade was being ruined because the traders were not indemnified. It was suggested at one time that they might have a raffle or a drawing of prizes to compensate people who lost their cattle owing to foot and mouth disease. I must say that the people who went from this side to negotiate were considerably handicapped and hampered by statements made in this and the other House. In dealing with the people on the other side, they were hampered by the fact that people here were bewailing the loss of the British market. The time has come when we must realise that the British market, so far as the working class is concerned, is not anything like the El Dorado it is alleged to be by people on the opposite side.

Bhí a lán cainnte ar an gceist seo agus isé an locht is measa ar an sgeal na go bhfuil cuid maith de mhuinntir na tire seo ar thaoibh an námhad.

I am very glad to say that the tone of the debate this evening is altogether different from that which characterised the speeches of the Opposition for the past two or three years. Senator O'Connor is one of the oldest members of this Assembly, and, if I understood aright what he said, he made the first declaration from the Opposition Benches that all the justice in this issue is not on the side of the British. People talk about the Government not being able to make a good bargain and not being able to settle this question to the satisfaction of the Irish people. How could you expect any Government that was being torpedoed by a large section in the country to bring about a satisfactory settlement of this question? Look at what is happening in other nations. In Egypt you have different parties. You had there a sycophant Government, a Government which was the creature of the British Government. During the past few months, you had that Government lining up with the great majority of the Egyptian people to see that Egypt would get fair play. Our experience of dealing with the British Government has not been a very happy one. Most of us are old enough to remember how Mr. John E. Redmond was diddled in his time.

Senator Blythe is a Northerner and he has a good deal of experience of the mentality of the people of the Six Counties. Senator Blythe said that we would never have Irish unity if we here stood for the complete independence of Ireland. Like myself, Senator Blythe is old enough to remember a prominent statesman they had in the Six Counties, although he was not a Six-County man. I refer to Sir Edward Carson. Sir Edward Carson organised the Ulster Volunteers. He went out in rebellion against the British Parliament. Did that action by Sir Edward Carson interfere with him in having his own way? Within a few months, he was taken into the British Cabinet. It is time for us to get down to realities and hard facts. There is no use in any section of the Irish people trying to create delusions in the minds of the British people. The fact is that there was never English kingship in this country except by force. That kingship was never acknowledged except by force of conquest. It is time to make absolutely clear to the English people that the majority of the people of this country stand for Irish independence and will take nothing else. The fact that we have respect for ourselves and that we stand up for what is right will not stand in the way of Irish unity. I was told in 1925 by Senator MacLoughlin, who is a great exponent of the rights of the people of the Six Counties, that we were doing what we could to prevent Irish unity. Senator MacLoughlin had his way and we do not see that we were brought nearer to Irish unity. The person who acts a weak part, the man who is prepared to take a slavish stand, is not going to carry conviction in any place. I think that has been a fatal blunder.

This country is the country of the people who were nurtured and reared in it. If they threw in their lot with the people, stood for Irish ideals and for the Irish claim, their names would be honoured and they would be the greatest possible asset to the country. At a recent meeting of the Seanad, I was delighted to hear another very old man, a man who has given honourable service in this country—I refer to Sir John Griffith — make a plea for Irish unity. That was a plea that found an echo in the hearts of every Irishman. If we could throw aside Party bitterness and Party divisions, make this question an Irish question, throw in our lot with our own people and take our stand with our own people, then, though we have little more than 4,000,000 people within the four shores of Ireland, I believe those 4,000,000 would have their way, no matter what obstacle was placed in their path by the 40,000,000 across the water.

I do not understand what Senator O Maille's speech had to do with the business before the House — a Bill dealing with the coal-cattle pact. I do know that his reference to the attitude of the Irish people to English kingship is entirely contrary to fact and history. I quoted here before Thomas Davis, who is held up by the President of the Executive Council as an ideal patriot. I could quote him again, but I do not want to follow up the speech of Senator O Maille. I entirely agree with Senator Wilson as to the attitude of the people. Only those who are ignorant of Irish history can recognise in the policy of the Fianna Fáil Government the national tradition. It is quite different from the national tradition as patriots who have studied history recognise it. I cannot now follow up that argument but what I say I could prove conclusively.

To go back to the coal-cattle pact, I agree with Senator Dillon that there is no great enthusiasm for this pact throughout the country. I know that because I have spoken to many farmers since civil servants were sent over by the Government to conduct negotiations behind closed doors. It is a humiliating thing that we have a Government whose members are ashamed or afraid to go over to another country, sit down at a table and negotiate with statesmen of that country. Are they so timid or are they as much afraid of being beaten as they were when they refused to go over and negotiate the Treaty?

They did go on this question and the British came over here.

They cannot sit down and negotiate as statesmen of any other country would do. We are all glad that some little advance has been made. We do not want to decry this agreement and say it should not have been made. In the desperate situation brought about by the Government it is a certain relief, but it is poor consolation to think that this sort of tinkering will have to go on indefinitely. Very serious aspects of this question are revealing themselves. I do not think anybody has touched on one particular aspect of it. The cattle are deteriorating because the people are not paying attention to the breeding or the feeding of them. If a settlement were made to-morrow we would find ourselves with our most valuable marketable product in a very depleted and deteriorated condition. Anybody who goes to a fair witnesses the most depressing spectacle a person could witness at the present time. He sees cattle staggering and falling — cases for the Society for the Prevention of Cruelty to Animals.

Blueshirt talk.

Farmers realise that what I am saying is true. The horrible crime — I can refer to it as nothing else — of the slaughter of the calves is bringing its Nemesis. Looking at this pact, we may say we have got out of it with no great honour to ourselves. It is no doubt a small help with regard to the marketing of cattle, but we have no advantage. The English have got the best of the bargain all round. There is no use pretending anything else.

I should like to deal with some of the remarks made by Senator Foran. He went over the old catch-cries about old age pensions. Did not the present Government reduce them last year, and did they not take a very considerable amount off the unemployment benefit? He made an astonishing remark as to the condition of the poor people under the old régime and at the present time. When one takes the list of commodities a poor man has to buy, what do we find? I have gone over that list with poor women, some of whom work for myself. I have examined their weekly budgets, and I have been shocked on discovering what people have to try to live on. Senator Foran talked of 25/- per week paid, and of the perquisites also, of the agricultural labourer. I do not know any agricultural labourer getting such wages; I do not know any farmer who could pay such wages, and I do not know any tillage farmer who is able to make 25/- a week for himself. If he is he is not getting it out of his farm. The wages of agricultural labourers are nothing like that. There are between 4,000 and 5,000 more unemployed now — I do not know the exact figure, but it is considerable; they are on the dole. The wages of those working are something like 18/- a week at the very highest, and on that they have to keep themselves and their families, in my part of the country at any rate.

The rule is for big farmers to feed their labourers in the farm kitchen and to pay them 8/- or 9/- a week, on which they have to keep their family. I have gone through the weekly budgets of such labourers and their families, and I have seen what they can buy for their wives and children. These people are not living; they are starving, and the Labour Party are to blame for that and for the 144,000 unemployed as well. They talk of the conditions that brought that about. Senator O Maille and Senator Foran talked of the effect of the propaganda conducted by the Opposition. What was the effect of their own propaganda when men were trying to build up this new State?

As bad as your own.

It was a great deal worse, in the circumstances. We are not going to be muzzled in this matter. I want Senator O Maille and others to understand that. We will not have a muzzle put upon us. We are going to speak the truth and we are going to stand up for the rights of the people. I suppose we ought to sit down and say "Amen" to every lying statement that is circulated. We ought to be accommodating enough for that. Unfortunately for them we are not, and we intend to continue to make the truth known. There is no use in the Government blinding themselves to conditions that exist in the country. They are very bad. I will not go into the reasons put forward by Senator MacEllin. They are beyond me. His reasons, as also those given by Senator Foran, I will leave to some professor of logic in a university to deal with.

We all regret very much indeed that the Government have not gone the right way, as they might quite easily have done if they had sufficient courage and statesmanship, about the settlement of the economic war. It is quite wrong, as Senator Blythe pointed out, to mix that up with the status of the country. If this country was pitched out into the Atlantic by a volcano, no one outside would care whether it was sunk in the sea to-morrow. But as long as it is where it is, it is of vast importance to the world. The present geographical position of this country makes its outlook with regard to the British market quite different from the other countries mentioned, and even from that of the dominions. They are very far away, and all these things have to be considered and are of great importance. It is rather humiliating to think that the Government have seized the first available opportunity to cut off the little benefits they were giving to the farmers in the way of bounties——

That is outside the question before the House. The bounties are not in the pact.

In the announcement of the pact, as it appeared in the papers, mention that the bounties will be cut off was also made.

That was on the following day. The bounties had nothing to do with the settlement with Great Britain and I will not allow them to be discussed.

The position is rather humiliating.

We were told the bounties did not reach the farmers.

That is a question that should be looked into. The people are taking this pact as Lazarus took the crumbs from the rich man's table. The pact is a little better than nothing. There is no enthusiasm for it in the country, and there never will be until this economic dispute is settled and the markets restored to the people.

I have not had the privilege of being able to say anything in reference to these pacts in our Legislative Assembly heretofore. I should like to join with Senator O'Maille in urging that this whole problem should be faced in a national way. I would ask him to go to his own Party, and to make that plea there. I think it is a matter of very considerable regret that it has been faced up to in a different way, and it is a matter of greater regret that it was faced up to in a heartless spirit. It was a cardinal error, in the first instance, that this question was seized upon by one political Party and was used by that political Party to drive their opponents from office. I regret that position in a very special way, because, like some others in this House, I was not satisfied with the financial arrangements made by the predecessors of the present Government with the British Government. I opposed that arrangement on previous and vital occasions. But, from the beginning, I saw no solution for our problem in the attack made by the Government of to-day on the Party of Cumann na nGaedheal for their failure in not making an arrangement with Britain in the matter of our finances that would give satisfaction and would be of benefit to the people as a whole. That is not the way that statesmen in other countries face up to their problems when making agreements with neighbouring or bordering States in matters of finance.

When a Labour Finance Minister, a few years ago, was in control in England and when, according to his views, he believed that the financial arrangements at that time existing between England and some of the countries of the Continent were not fair to England, he did not make the question an issue in the previous general election. Before Mr. Snowden went to the Continent, to engage in discussions with other countries, he did not split the people on the matter. If it was raised at all at the elections in England, it was in a very small way. It was not put forward as a vital question upon which the people of the country had to pass judgment. Here, unfortunately, a different situation was created. We were driven, from the very beginning, into different camps. Our people were split asunder, and each party tried to make a case. In England, in the days I am referring to, discussion was avoided upon it, and it was not made a matter of party policy. Unfortunately, with us, the opposite course was pursued and it was made a matter of Party policy. It was not faced up to from the beginning as a non-Party question as it should have been. The Government came into power on the crest of the wave, filled with hope, having raised the conviction in the minds of the electorate that when they came into power they could retain the land annuities. That was a very tragic situation. I think the people accepted that statement, through enthusiasm, in their unwisdom.

Nothing of the kind.

I raise this deliberately because I think it ought to be recognised how hard it is for people to weigh the charges levelled against their political opponents — charges of dishonesty and secrecy with regard to documents and so on. If men go out honestly and calmly making statements that they believe to be true, how can you expect them next day to get away from these? That is what the statement Senator O Maille made amounts to. What answer can you expect to get when things are being said and done which have the effect of perpetuating the situation of a few years ago? This is a problem of such financial magnitude that it seems to me to demand an extraordinary effort on the part of the leaders of this country to create a situation in which the country can get the best out of the existing conditions. As far as I know, I believe that there is a desire and an anxiety among the leaders of the Opposition in the State to make their contribution to a satisfactory solution of this problem, but as far as my knowledge goes, I am not aware that there is any very keen desire shown by the Government for that kind of co-operation. We have to remember, of course, that men cannot yield up easily the principles by which they have stood for a considerable time and it should also be borne in mind that that applies to the other side of the House.

Senator, are you going to come to the Emergency Imposition of Duties?

I am sorry, Sir, if you think my remarks are irrelevant.

I am trying to connect you with the Emergency Imposition of Duties which we are discussing, but you have not so far connected it yourself.

I thought I was saying what is very pertinent. I have been following the case made by several other speakers, who were permitted to go on those lines, and I was merely making the point in answer to them. The country undoubtedly is in difficulties to-day, and there is no use making the pretence that farming in Ireland is not finding these days very harassing, difficult, and indeed very depressing. It is true, of course, that farming all over the world has been passing through a very difficult period, but in some countries conditions have been on the up-grade for a considerable time. In Australia and elsewhere prices have improved, and the whole position of the farmer is much better than it was two or three years ago. The same cannot be said with regard to conditions here. Senator MacEllin has been arguing that we have not been paying the full amount of the duties that have been levied on our cattle by the British Government. He has stated so, but the fact remains that in one year we paid £2,515,000, the next year £4,555,000, and last year we paid £4,694,000. I am sure the Senator does not want us to pay any more than that. Our agricultural commodities have been making that contribution to the British Exchequer all the time, and here at home we are expected to pay half our land annuities. At the same time, mind you, people like Senator MacEllin and myself, who are making our contribution to the British Government and our contribution to the Irish Government, have to pay our proportion in increased rates if our neighbours are not paying their annuities, whether we like it or not.

Senator Blythe made an honest and fair plea to face up to realities. These are the realities. This pact is accepted in the country with mixed feelings. What the people think about it is that it is better than no pact at all, but that there should be a complete settlement. That would fairly represent what Senator Counihan and Senator Wilson were trying to put before the House. It is not anything as satisfactory as a complete settlement would be for the farmers, but it is better that it should be made than that we should have no pact, because people in agriculture, like those in any other business, want to see something like stability for the next 12 months and, for that reason, are anxious to see that something would be done. This is undoubtedly something, but, nevertheless, the truth is that conditions in rural Ireland are far from being satisfactory. I believe myself that conditions in rural Ireland are very much worse in the last few years than they have been for a very long time. I believe that if conditions continue to progress along the road they are travelling at the moment, the future of rural Ireland is very dark indeed, because this economic situation has created problems of a very peculiar kind. I think that anyone will find in a rural district that the population is declining. Ask the teachers of the rural schools. I am prepared to make a very big bet that there is hardly a rural school where the attendance has not been progressively decreasing for the last few years.

Is the population going down?

They are two distinct things. Let Senator MacEllin go back to his own County Mayo and acquaint himself with conditions there. I think it is a most serious problem as far as Ireland is concerned, because it is rural Ireland that is feeding the rivers of the national life of Ireland and if you do not keep these rivers in flood your towns and cities will not be able to keep afloat. We have fewer marriages and fewer births, and that is very largely due to the economic conditions. It is true that in the days of the predecessors of the present Government, agricultural prices were falling, as they were falling all over the world, but this economic war came as a thunderclap on top of conditions that brought enough suffering in themselves. Where, in rural Ireland to-day, would you find a young man enthusiastic enough to face the problems of married life? I think anyone who has troubled himself to consult the National Teachers' Organisation in the country will find that it is very true indeed. We may have plenty of life and energy in rural Ireland but that is between the ages of 19 and 30, and they are passing on. What about the people who ought to come on to take their places and are not coming on?

I think myself that the present situation ought not to be permitted to continue, but when you read this document and hear the speeches that have been made in connection with it, you are forced to wonder when is the economic war, with all its attendant evils and problems, going to be viewed in the proper perspective and brought to an end? This I presume is a document that will give us conditions that will continue for 12 months. I wonder what are the hopes and prospects? Senator Connolly speaks the mind of the Government with as much authority as any Minister, and, indeed, if only one may say so, every bit as forcibly, and we would like to hear from him what are the hopes with regard to the future? I have been often in a very great difficulty with regard to the rights or wrongs of this question — where we stand in the matter of these annuities at all.

As I said already, there are others here with me, who in 1925 opposed the financial settlement made then. Senator Johnson can contradict me in this if I am wrong, but he and I went to a very great distance in those days to get the support of Fianna Fáil and to induce them to come into the Dáil to oppose the boundary settlement and the financial settlement. We did not succeed but have no reason to be ashamed of our efforts. I think if the same courage had been displayed then by the Opposition and if they had come along with us, the history of the country to-day might be somewhat different. I did not support the financial settlement of 1925 and neither did Senator Johnson, but I will say this and I believe Senator Johnson knew it — he can contradict me if my recollection is at fault — that we knew that we had agreed to pay the land annuities to England and when we voted against the settlement in 1925, we knew quite well that we were voting against a situation that not only meant we were paying £5,000,000 to England but the land annuities as well. That is my recollection and understanding of what the position was.

Whatever may be the position about the secret agreement, if that document had been produced in the debates in any of those years, it would have been assented to as well. We had not the support of the people who agreed with us that time and when we approached the position in 1936 it is well to see exactly whose hands are clean. Anyway, we live in 1936 and after the experience of the years that have gone by, I think there is a realisation on the part of responsible people in this country now, that the position with regard to this country and England is that we are very close together and that it is a country that wants many of our products and that nowhere else in the world can we find a better market for them. We have land the finest on earth and have people who know how to work it, farmers who are skilled in producing agricultural commodities as good if not better than are produced anywhere else in the world.

Whatever the leaders may think and whatever they may say, I find it difficult to believe that down in their hearts they are not satisfied that the right thing to do is to create such a situation, to have the relationship between this country and England so defined, that the surplus products of this country can find a market in England free of tariffs and free of duties. It is their responsibility to create conditions for the Irish farmers when, at least, they will not be compelled to do as they are doing to-day, to pay the full amount of the annuities as they were in 1931 and in addition to make a considerable contribution to the British Exchequer towards R.I.C. pensions and Board of Works' and local loans as well as paying half the land annuities to our own Government here at home. It ought to be possible now, with their experience of four years in office, to know exactly what they can do in their day to make such a settlement with the British Government as would give the people of this generation a chance. Goodness knows we have bled enough — we have lost enough economically, financially and otherwise, in the last 15 years and we ought to get a chance. I do not think there is anybody in this House, or in the country, who wants to make any surrender to England. Nobody is going to be applauded for doing that. As far as the people on this side of the House are concerned, we do not want to make any surrender. The word "surrender" may mean a great deal. I do not believe it is possible to make any treaty with England nor is it possible for two countries to make any treaty involving political and financial problems on which they are at variance, without some surrender on either side.

I think we are all aware of the traditions of England in so far as her relations with this country are concerned. Stressing these is not going to put us in a better position to make a lasting and final and advantageous settlement and I think that it is definitely wrong to continue this struggle interminably. The Irish farmer will not be strengthened in his position. He is not prepared to surrender any principle, any more than he was prepared to do so in the past, but we think we are in a position to make a bargain that would be advantageous to our people in our day. What we want from our Government is that, being full of the knowledge and conviction that the people of this country would be behind them in their attempt to straighten out the tangled relations between England and this country, they ought to do what Senator Blythe has suggested, and that is to go out and face up to the difficulties involved. I admit that you may have to give something away, make a concession, but it would be better to give something and take something in return than to continue the position as it exists at the moment and as, apparently, it is going to continue for perhaps another year or two or three years. Even if a settlement were to come, then your successors will be in a stronger position to improve the position. For these reasons, I think the country is in a strong enough position to make a good bargain, and I think that it is a good time to do it. I know that it can be argued that the position as between England and ourselves is not so good as it might be; but I suggest that any settlement to be made by you will not be final: that there will be another settlement, and that we ought to be prepared to meet that. However, I think that if we put all our eggs in one basket our position will be all the less secure, and I think that the country now feels that the Government should make a bargain and that the Government themselves ought to recognise that fact.

While Senator Baxter was speaking, it was quite properly pointed out to him that the business before the House was the imposition of duties. Anyone, looking at such business coming into the House would say that it would not take up much time. Everybody in the House is in favour of it, but when my old friend Senator Counihan spoke, and once the economic war was mentioned, I knew what we were in for. I amused myself taking a great many notes of the different speeches. It would take me a long time to deal with them, but I think that the House is fairly well tired out already.

Mr. Healy

Agreed.

Yes. I agree with what the Senator has said. I think that the House is fairly well tired out as a result of the great range of subjects we have gone over, from the King of England down to the youngest citizen in the State. There was one little item coming from a Senator, whose native modesty and natural broad-mindedness, I thought, would have prevented him from saying it — I hope I interpreted it correctly—and that was that, so long as the King of England is there the economic war will not be settled. Now, that raises a bigger issue still. I thought that it was the annuities that created the economic war. Now, we have it vouched for by Senator Wilson that, so long as the King of England is there, there will be no settlement of the economic war.

It is his being here — that is the trouble.

I am sorry that Senator Miss Browne is not here at the moment. I always admire her tenacity. No matter what we may think of Senator Miss Browne, she is neither afraid nor ashamed to tell us what is going through her mind; but this is only one item that covers a multitude of what has been said, and it is saddening to think, after what this country has gone through during the past 700 years, that it should now be suggested that this country should owe allegiance to the English King. That is sad, after 700 years of struggle, blood and strife. I am not as great a student of history — political, historical or any other sort of history — as Senator Miss Browne, but I would not like it to go out from this Seanad that Senator Miss Browne's version of Irish history is correct. When Senator Miss Browne was speaking, my mind went back to the time of conscription, when each and every one of us took a solemn oath that Ireland was a nation separate and distinct. However, I shall leave it at that.

Now, Senator Blythe stated that, in his opinion the annuities should be paid to England, but that also opens up another very wide and very long discussion. I am not going to argue whether the President and his Government are right or wrong in this, but I have said before, and I repeat now, in this House, that the position is that the President and his Government, like honest men, said that they believed our country was entitled to withhold the annuities, and that Mr. Thomas, the then Dominions Secretary, said: "No, you are not." President de Valera and his Executive Council then said: "Well, Mr. Thomas, you think we are not entitled to withhold the annuities, and we think that we are entitled to do so: then, why not place the matter before an independent tribunal?" What was the answer of the British Government to that? Their answer was that, instead of taking that honourable offer, they put certain tariffs on our cattle and the economic war was started. It is just as well that this issue should be kept clear and steadfast before the people. It is just as well that they should know, in the first instance, what was the cause of the economic war. As my friend behind me said, he agreed that the debate had taken a long turn, and on that account I am not going to speak very much more, except to say that I am thoroughly in favour of the motion before the Chair.

I noted that the line of opposition here to-day, in so far as it was expressed, differed considerably from that taken in the Dáil. In the Dáil, the Opposition desired that the House should decline to give a Second Reading to this Bill until certain undertakings had been given by the Government. The Government did not give those undertakings and, therefore, the Opposition voted against the Second Reading of this Bill, and the general arguments were that the Bill was useless, if not disastrous. Here, on the other hand, we learn that the Bill is better than nothing. I think it is worth while to look into the matter a little more closely than most Senators have done, to recognise that this Bill is a Bill reducing tariffs that have been hitherto in force, but which is bound up with a more general agreement, formal or informal, as to countervailing duties and modifications of quotas. I think it is undoubtedly true that, if one is thinking of this matter alone, the agreement that has been announced is not first-class. In fact, it may be said in the main, if one were starting from zero, to be disastrous; but we are not starting from zero. We are starting from the position of January, 1936, and it is a continuation of, and an improvement on, the arrangement made in 1935. That, again, was not a desirable agreement, and, again, if one could detach oneself from the thought of the general situation as affecting the cattle trade, it was a really disastrous agreement. Taking the long view, however, and having all matters under consideration, I think that that agreement could be justified under the circumstances.

A habit has grown up, which I deprecated from the beginning, of referring to the "economic war." It is useful enough as a kind of shorthand term and for the purpose of mere rhetoric, but I am afraid that it is very damaging if we get into the way of using that phrase as though it represented a fact and dominated our judgment. If we are to think in terms of an economic war as a fact and that we are participating in a "war" which the other side recognises to be a war — if we let that phrase dominate our thoughts, then I am afraid that the situation is going to be very much worse indeed. If the enemy in this alleged war were to take it up as a war, then I do not know what our position would be. Therefore, I think it would be very advisable to stop thinking in terms of war and to recognise that we are dealing with a quarrel in matters of economics which has a foundation in politics. Now, I have said before, and I think it no harm to say it now and to emphasise it, that this dispute is not merely in connection with the land annuities and the land annuities quarrel. It happened to coincide with the land annuities quarrel, but it began, in fact, with an avowal on the part of the British Government that they would not enter into a new agreement with this country because they alleged that this country had, unjustifiably, broken a previous agreement. That was the beginning. Therefore, the quarrel has a political origin and it is not merely an economic quarrel. One has to take into account the meanings of that political quarrel and of that disavowal of what were asserted to be agreements broken unilaterally.

It is now admitted that this country had legal power to make its own laws, and whatever may be the consequences of the alleged breach of a bilateral agreement — consequences which were given effect to in the duties imposed on Irish cattle in 1932 — the electors, at least, ratified and approved the action of the Government in what was done during that year. The election of 1933 gave this Government very definite authority and approval of their action in the previous year, and a mandate to go ahead with the policy that they had then avowed. Whatever may be the consequences economically, there is the authority. Therefore, in my view it is useless to suggest that the Government here should force itself upon the British Government— gate-crashing, if you like — to make a comprehensive agreement. So far as I know, there has been no open invitation to go and make an agreement on terms which could be accepted by this Government, and because the country has told it that it must go ahead with a certain policy, the Government cannot make an agreement in defiance of that policy.

Senator Blythe said that the duty of the Government was to give a lead to the country. The Government did give a lead to the country. The country followed it in that lead, and for the Government now to take upon itself the function of adopting a different policy would be a complete reversal of all political ethics and wise political practice. If they feel that they went too far in advising the country to go in a certain direction, then their business is to go to the country again or leave the responsibility to somebody else; but, so long as they follow the line that they have followed and have got authority to proceed with that policy, they have no authority to do anything else. To suggest that the Government should now give a lead in the opposite direction is simply making political government a farce.

I think, Sir, that when speaking from your seat in the House you, in your own frank way, did really get to the heart of this matter. There is a political dispute, and until the British Government recognises the position that the people have taken up, following the lead, if you like, of the present Government, I can see no solution of the politico-economic quarrel. I would say again, what I have said before, that those who in 1916, 1919, 1921 and in the intervening years claimed for this country not alone political independence, but even those who never went so far as claiming political independence but claimed the right of fiscal freedom, the power to impose tariffs on whatsoever they would, once that was done, the consequences that we now have experience of must have been foreseen, at least as possibilities. Even those who claimed, not national independence as the Republicans did, but Home Rule or what was called Dominion Home Rule, and insisted on free fiscal powers, must have assumed that those powers would in practice only be effectively applied against British goods. Once they assumed the possibility of applying tariffs against British goods they must have foreseen the possibility of countervailing tariffs, so that these things have their root in the political demand for independence, and, as I see it, until that demand is recognised by the British Government, these quarrels will have to proceed. As much conciliation as possible, having regard to those facts, should be sought, and as many agreements as can be made, having regard to those facts, ought to be made; but I agree that it is useless trying to patch up quarrels now with the certainty that succeeding Governments in this country would reopen them.

But, having said that, having recognised that the Government of to-day ought to proceed on the assumption that the worst will happen: that there never will be an agreement with Britain, let us act on that assumption and everything better than that will be so much gained. Then I suggest that the Government, although this might perhaps be extending the leniency of the Chair, is going to create for itself and its successors further trouble internally unless it readjusts and changes its attitude towards the general economic relations between the people within this country. As the Cathaoirleach has ruled that the discussion here shall not proceed on as broad lines as it did in the Dáil, I had better not enlarge upon that theme.

So far as this Bill is concerned, it should be thought of, when one speaks in terms of an economic war, as rather like an exchange of prisoners, with one side giving away something in exchange for something that the other side has to give without prejudice. As far as I can read the signs in the Bill, the British Government is continuing to assert its right to collect the sum which is represented by the debt that they claim this country owes to Britain. It intends that it shall collect, by way of duties, just an equivalent sum. Some question has been raised here as to the effect on prices in this country of the tariffs on this country's goods, particularly cattle — who pays them and so on. I think that one has to take into account the effect of the quota system. The normal consequences of the tariffs in pre-quota times were vitiated or destroyed once the quota system was adopted. In so far as the quotas imposed by the British Government upon Irish produce forced back into the home markets quantities of goods which would otherwise be exported, they must have a destructive effect upon prices in these home markets; but, as soon as we find that any articles in respect of which a quota has been fixed are not surplus in this country — that the quota covers all that we have to sell — then, in my view, the effect of the tariffs upon the prices of those articles will be negligible.

I am inclined to endorse a good deal of what Senator Baxter said in regard to the controversy and to the methods of controversy that have been adopted in this and other matters. I think that we are too apt to treat assertions of what is good political policy in terms of moral right or wrong, and to denounce an opponent because of his disagreement on matters of policy as though he were a moral pervert or defective in the moral sense. Because political matters are approached from that point of view, we get the animus, the enmities and bitterness that are so often expressed. If we could for about a year, on both sides, recognise that these issues are political—matters on which there is a difference of opinion — each side believing that its policy is for the best interests of the country, then there would be no sense in asking a particular Party going to act for the national good. We are all acting for the national good because we all believe our own line of policy is for the national good, but there is a difference of opinion as to what is the national good. If we were prepared to think that it is a matter of difference in political view rather than of moral perversion, I think we would be very much nearer to a happy political life.

I feel that I am somewhat at a disadvantage in trying to deal with all the points that were raised, as we have had a very long and somewhat rambling discussion on this whole subject. I appreciate what Senator Johnson said just now, but I am afraid that however much I agree with him on principle, and however much I dislike the trend that frequently operates in this country as regards the development of antagonisms and the rest, I have to remember that there are very definite reasons for such antagonisms. I have tried, by abstention from debate, by being logical in so far as my mentality would allow, and by treating everything on its merits in this House, to approach matters on their merits. We are dealing here with a proposal in connection with an agreement which has been reached on a partial exchange of commodities between two countries. If in dealing with that, I have to refer to certain things that one might say belong to historical background, I am only doing it so that something like a full perspective of the whole issue may be clear to members of the House and to the public generally. I will be as brief as possible. This trade agreement is the type of trade agreement that operates between normal countries, between countries that have no wars, economic or otherwise. In entering into a trade agreement with another country the negotiators have to remember that the country with which they are going to deal is out to get the best possible bargain it can; and in turn, they are out to get the best possible bargain for their particular country. In so far as this represents a specific agreement between two countries — rather I should say between a nation and an empire — then I think it is all to the good, because it emphasises and lays stress on the fact that it is possible, in spite of all that Mr. Thomas said, to have negotiations between this country and Great Britain. The agreement specifically, in so far as it is humanly possible, is on a 50-50 basis. Certain commodities of which we have a surplus are being exchanged for certain commodities which we need, and it is stressed that this agreement was made entirely without prejudice to any of the rights which we have already put before not only our own people but the British people and the world in general.

I certainly — and I make no apology for my attitude — will not agree to yield on the main political issues — what I call national issues as between this country and Great Britain. We know that the British market is a most valuable market. The whole world knows that. We know that it is our most convenient market and we are anxious to get the maximum of trade from it. We are going to get the maximum trade from that market but we must get it with a recognition of our rights and a recognition of our national dignity. We have to recognise, and we have recognised the fact, that if you are held up against a wall and your pocket rifled, or that if a burglar comes along and holds you up at the point of a gun that he has superior force and occasionally you have to yield or go under.

That is the position this country has been held in. That is the position which the British still hope to hold. Let us be quite frank about that. It is our job to make the best of the position. Senator Johnson does not like the term "economic war." Neither do I. I do not like the word "war" at all if we can get away from it. We have our opinions on that. There has been a major feud between this country and Great Britain, and as far as the British are concerned the imperial policy demands that we should be held down and put "where we belong" in their estimation. Senator Blythe and other Senators realised that many years ago, and I do not think they have had any experience in the intervening period that would change their view on that issue. I would like, before stressing any other aspect, to emphasise that in making this agreement, or in making any agreement with Great Britain, we do not deny that we might have to yield, but we are not yielding one iota of what we believe to be our fundamental right, and what we believe to be our position. We cannot yield that, because, as Senator Johnson said, we have a definite mandate from the people.

Senator Baxter made a very moving appeal with regard to all co-operating from the point of view of national progress and co-operating in a national way. I made that appeal from the beginning of the economic conflict between Britain and this country early in 1932. I am not going to rake up all that transpired. We know how that was met. I will summarise it in one phrase by saying that the main political support, the main propaganda support that Britain got in the early stages of this conflict was supplied by the Oireachtas, by the Opposition in this House and in the other House. Senator Baxter referred to the attitude that was adopted when Mr. Snowden made his declaration on behalf of Great Britain, that they were not going to pay a certain £3,000,000. All the Parties in Britain rallied to Mr. Snowden. What was the attitude here? Mr. Thomas, Mr. Ramsay MacDonald, Mr. Churchill and all the rest could not make as moving an appeal in defence of the British attitude as was made in this country by the Opposition. I am a believer in unity. I believe in co-ordination of all effort in this country, but you can only get co-ordination if people are willing to stand by their rights as a principle, and not on the basis of yielding, as yielding took place in the past. Senator Baxter concluded on a note of hope for future relationships between the two countries. Let me make this quite clear; the present Government has no antipathy to the British people. Neither has it any antipathy to the British Government. We are anxious and willing to be friendly, and we believe that in the natural order of things there should be friendship between the two countries. The President of the Executive Council has stressed that in all his statements. But that friendship can only be based as a friendship of equality — as friendship between two Governments. One could hold a right and could hold out for what he believed to be right. Remember that in the annuities discussion we have not yielded to them on the legal or the moral issue, and I think there we have been backed up by a very substantial volume of opinion on the other side. I do not agree with some speakers who suggested that we had a bad legal case. On the contrary, the leading jurists in Britain have held that by virtue of the fact that the Agreement of 1923 was neither ratified nor confirmed by the Oireachtas that Agreement is null and void.

That brings me to the whole question of the agreement. There are certain Senators in the House who have vivid recollections of the discussion that took place on the annuities debate. Our present Cathaoirleach, to his credit be it said, raised this issue in this House and wanted to have a frank discussion. Senator Blythe, who was then Minister for Finance, and who sits here now, refused to allow such a discussion to take place. He indicated that he would not attend. I have not all his exact words, but he said:

"As a matter of fact I would not attend at the Committee if it had been appointed... No papers would be submitted by the Government and no information would be given to the Committee."

Sometimes when reflecting on Senator Blythe's talk some years ago about dictatorships and the rest, I wondered how he once interpreted that attitude in this House. We heard Senators refer to this agreement of ours as a secret agreement. It was only made within the last ten or 14 days, yet it was before the Dáil last week and it is here now. I know perhaps better than most people Senator Blythe's beginnings in this matter. I have known him for many years. I have very definite recollections of his attitude in 1923. Senator Blythe's attitude then was that the only cure for anyone who did not agree with the Government was to get out of the country, because there would be no living here. That was the mentality of Senator Blythe then, and it is nauseating to come here to listen to the type of appeal he makes now. Personally I was ordered out of the employment of a certain concern in this city at the order of Senator Blythe, simply because I had the hardihood to sit as chairman of the reorganised Sinn Fein in 1923. That is the mentality of the man who is now pleading with his tongue in his cheek. I would not like this Seanad to disappear without mentioning that matter. What are the facts about the secret agreement? He, more than anyone, was responsible for the last Executive not making it public; he, more than anyone, was responsible for not bringing it to the Dáil, and he, more than anyone else, was responsible for the Seanad being refused an opportunity to discuss it. To the credit of the Seanad at the time, it was only on the casting vote of Lord Glenavy that an inquiry was not held. My only regret is that the present Cathaoirleach, who was then a rank-and-file Senator, like ourselves, did not insist in making public the terrible position that the country was being launched into. I say decidedly now that the day that the economic conflict or war, or whatever it is called, started was the day that Senator Blythe prevented the Oireachtas discussing the 1923 agreement.

We were the inheritors of this position. We have no regrets whatever for our attitude in our inheritance. We decided we would not pay these moneys. That is our position to-day. The present Government will go out of office before yielding on this issue. We are not unconscious of the difficulties of the farmers. We have not been unconscious of them. We have taken every step possible within the reasonable economy of this country to enable the country as a whole to weather this storm. We have had to weather storms before. Some Senator referred to the conscription crisis. Many of us remember 1916. Senator Blythe remembers 1916. Many of us remember the Black and Tan period. We all remember these things, and the country did not yield then. I am satisfied that the big bulk of the people will not thank anyone for expressing a desire to yield on their behalf now. What is more, I am satisfied that the people are determined and would give an increased mandate to-morrow for a continuance of the right to withhold these annuities and the other moneys. I do not want to labour the question and to go back to the whole of the 1923 position, but there is one quotation I would like to give, and it arises out of what was discussed in the Dáil. Deputy Costello referred there to the fact that President Cosgrave in 1923 had made the position clear about the annuity payments. This is what happened. Having explained that the question was brought on without notice, Deputy Cosgrave said:

"This Estimate is one which is concerned solely with accounting transactions as to which no controversy can arise, and I hope that Deputies will accept the Estimate and enable us to make the payment. The Estimate deals with purchase annuities under the existing Land Acts. The law provides that these annuities be collected by the Government of Saorstát Eireann."

Senator Wilson will remember that he then intervened in the debate. He was then Deputy Wilson and he raised a very vital question, whether only the annuities collected were being paid, or whether there was anything from the Central Fund. Deputy Cosgrave then became less vague and referred to the recent negotiations which took place in England. He said:—

"We came to a provisional arrangement which binds us, or in which we accepted liability for the payment of a certain sum pending a settlement—"

Mark you, " a settlement."

"regarding the major question.

That sum in all amounts to £160,000 over and above the amounts we will get in annuities. We considered at the time it was a fair bargain."

This is the important part:

"It does not prejudice us or make weaker our case and it leaves open the question of the ultimate settlement of the difference between the actual sum collected of the Land Commission annuities payable to us here and the actual outgoings in order to provide interest on the land stock and sinking fund."

I do not want to labour the question unduly. But we have had close on four years' talk with regard to the responsibility for continuance of the economic conflict and we have to get at the root of it. The root of it was in the alleged agreement which Mr. Blythe would not allow to be published or used in evidence in court without having portion of the document covered up. If those are not the facts of the case, I should like to know what the facts are.

I do not think that the other points raised call for reply. I understand and sympathise with Senator Wilson's viewpoint. He is quite right in saying, as Senator Johnson has emphasised, that there is a political issue involved. The agreement, in short, aims at the disposal of a certain surplus commodity which we have and which we are in a position to exchange for certain commodities which the British want to sell to us. Whether that can be improved upon later and whether we can further extend it, is a matter for future consideration. I should like, again, to stress that we have no enmity in this matter. Some people imagine that Ministers sit down brooding and squirming against Britain and everything British. We have something else to do. We have a duty in this matter. That is, not to sell out to the British as a sale was effected before. If the people want a Government which will sell out to them they can get it, but they are not going to get us to do it. That is my attitude, the attitude of the Executive Council, of the Government Party and of the people behind the Party. We are anxious to go as far as possible in the development of trade relations with Britain and every other country. People talk as if agriculture had no problem in any other country. I have quoted here figures and reports as to prices from the United States, New Zealand, South Africa and many other countries. We all know the conditions in these countries but some Senators deliberately forget them when they come in here. From the experience I have had of other countries and from what I know is going on in these countries now, I can say that this country has, relatively speaking, weathered the storm. It has weathered it well considering that, on top of a complete collapse of agricultural prices, we were faced with the bullying attitude of the British Government. It has always been the policy of the British to bully us when it suited them and to attack us at the most disadvantageous time. We had to stand up to them before and we did so under more trying conditions than exist to-day.

We are probably more conscious than anybody in the Seanad of the disabilities under which agriculturists are labouring. We have been paying more attention to agriculture than did any previous Government in this country. We have been taking stock of all the elements of the agricultural industry, and we have been doing our best to enable our people not only to survive the economic war, but to survive the complete depression in agriculture. That is our line of policy. It is in pursuance of that policy that this agreement is brought forward to-day, and I feel it is a step in the right direction. It has been welcomed by people engaged in the industry mainly concerned — the cattle industry — and I believe it will go a long way to relieve the position in the one commodity in which we have a surplus — cattle. With that in mind, I asked the Seanad to pass the Second Reading of this Bill.

Question put and agreed to.
Committee Stage fixed for Wednesday, 11th March.
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