The Minister made it clear earlier this afternoon that he takes full responsibility for the Bill and for all its contents. We have been trying to get him to achieve this very desirable object in a different way from the way in which it is set out in the Bill. We have made a number of suggestions, all of which he has turned down. He says that on Report Stage he may consider a different name but indicates that it is unlikely.
We have gone through these arguments in considerable detail and I certainly would not be here still if I did not believe exactly what I was saying, even if at some times we are getting a bit exasperated by the Minister's attitude of not an inch, an attitude associated with the famous politicians in another part of the country. Perhaps he is getting exasperated by our attitude but I want to move to another point on which I think this Bill falls. I do not think we can pass section 10 without abrogating the treaty signed between the United States and Ireland in 1958 which set up the institute. This has been referred to on a number of occasions. Both Senators Quinlan and Lenihan took part in the debate which established the institute and they referred to the fact that the money which established the institute was a sum of around £1,800,000 and it was a counterpart of the Marshall Aid Fund which came to us in the fifties. This is brought out very explicitly in the discussions that went on about the establishment of the institute if one reads the speech of the Taoiseach of the day in Seanad Éireann in 1958. Mr. de Valera in his introductory remarks outlined the long and protracted negotiations that had gone on between the United States and the Republic. This resulted in a treaty which was agreed to by the two Houses of the Oireachtas and passed by a special motion in the Congress of the United States of America. I will quote from the treaty which set up the institute because I think we are breaking this treaty by passing section 10 of this Bill.
It is headed: Treaty Series, 1958, No. 7. Agreement between Ireland and the United States of America (subsidiary to the Agreement of 17 June, 1954), respecting the use of Counterpart for the Establishment of an Agricultural Institute. It is dated 16th April, 1958. I will quote the sections that I think are the vital ones. The Governments of Ireland and the United States of America have agreed as follows:
ARTICLE I.
The Irish Government undertake to establish an Agricultural Institute to be known as An Foras Talúntais, and to place at the disposal of the Institute £1,840,000 (one million, eight hundred and forty thousand pounds) from the balance in the Counterpart Special Account. This money shall be utilised by the Institute in the manner specified in paragraphs 4 and 5 of the Annex to this Agreement. The functions, government and other regulations relating to the finances and administration of the Institute shall also be set out in the Annex.
ARTICLE 11.
The Irish Government undertake, in pursuance of Article IV of the Principal Agreement, to furnish to the American Government as soon as possible after 31st March, 1959, a report on the progress of the project referred to in Article I and to furnish similar reports as soon as possible after 31st March in each subsequent year. Each such report shall be accompanied by a copy of the annual report of the Institute referred to in paragraph 13 of the Annex to this Agreement.
There are a couple of other articles which I will not quote but in the annex to the agreement the functions of the institute are clearly set out and these were incorporated in the 1958 Act. They can be read in the 1958 Act. Section 2 of the Annex to this treaty states:
GOVERNMENT OF THE INSTITUTE
(i) The Institute shall be a body corporate and shall be governed by a Council.
(ii) The Council shall consist of a Chairman and 12 ordinary members. The Chairman shall be appointed by the President of Ireland.
The rest of that section deals with the establishment of the Institute.
Section 5 of the annex states:
ENDOWMENT FUND.
(i) The Irish Government shall place at the disposal of the Institute the sum of £1,000,000 out of the monies held in the Counterpart Special Account which sum shall be placed by the Institute to an endowment fund, to be called the Endowment Fund of An Foras Talúntais, and invested by the Institute in such securities as may be approved from time to time by the Minister for Finance of Ireland.
(ii) The interest on the Endowment Fund shall accrue to the Institute as annual income.
So a sum of £840,000 was granted by the United States in Marshall Aid for the initial capital expenditure to set up the institute and then a fund of £1 million was given by the United States Government which was to be invested and the income was to provide the annual income to run the institute.
The Bill before us simply abrogates that treaty. This raises a number of difficult legal questions. If this is in fact the case, if there have been no amending treaties, then it seems clear that this Bill is doing something very serious indeed. As the Government have stated—in particular the Minister for Foreign Affairs has said this on a number of occasions—that for small States international agreements must be interpreted in good faith as our protection against great power machinations.
This is the principle on which our foreign affairs have been conducted for many years. It is different from the principle which adheres to legal agreements internally, where the letter of the law is interpreted. It is clear that to protect ourselves in international agreements we have to interpret the spirit of these agreements as well as the letter. It is the spirit of the agreement which counts.
Anybody who knows anything about the United States knows that that is a country in which bodies such as the Agricultural Research Institute are distanced as far as possible from departmental bureaucracy, probably further than in any other country. They are very particular about distancing their institutions from the central bureaucracy. There is a continuing debate in the United States about the encroachment of bureaucracy. So not only in the letter but in the spirit are we abrogating the agreement that was signed in 1958 between Ireland and the United States. This is very serious. It has very serious ramifications. I should like to know if the United States Government are aware of what the Minister intends to do in this Bill and, if so, what their reaction has been.
It seems strange, and not a little sinister, that the Agricultural Institute was founded by means of a treaty between Ireland and the United States and that this is the first time in the two debates that this has been mentioned. That is very strange. I think there is something funny going on. The institute was founded by an international treaty between two sovereign countries and if I had not fortuitously discovered this during the Second Stage debate no reference would ever have been made to it. Surely the Minister should have referred to this in his speeches.
It also raises an internal question of our own domestic law. The institute was established by a treaty as a body corporate. The body corporate is the crucial thing. This meant that it had its own legal status, which is totally different from the limited legal status of an authority. A body corporate has all sorts of legal rights and it can undertake all sorts of legal obligations in legal contracts, which an authority cannot do. This is the point we have been trying to make.
It could be that the employees of the institute would be in a position, in view of this treaty, if this Bill is passed, to take an action. I am not sure what the actual legal term would be under which the action would be taken but in the case of private citizens it would be a breach of trust action. In the case of a private citizen it would be a case of winding up a trust—we are winding up an institute here. There certainly would be a case for taking a breach of trust action. I do not know what the corresponding legal name is here. There could be a prima facie case that the employees of the institute are in a similar legal position to the beneficiaries of a trust. If a trust is wound up then one can take a breach of trust action. It could be that because of this treaty, which as far as I know has not been mentioned, the employees of the institute might be in a position to take an action against the Minister on these grounds.
There are two points here. There is the important point of international law if we do not adhere to the terms of the treaty set out in 1958, which this Bill does not; it clearly breaks them. Then there is the point of our own internal law concerning the establishment of this institute and the position of the employees in view of the treaty signed between the United States and Ireland.