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Dáil Éireann díospóireacht -
Wednesday, 29 Apr 1931

Vol. 38 No. 4

Treaty of Commerce and Navigation with Germany. - Motion of Approval.

I move:

"Go gceaduíonn an Dáil an Connra Tráchtála agus Loingseoireachta idir Saorstát Eireann agus an Ghearmáin a sighníodh ar an 12adh lá de Bhealtaine, 1930, agus dar leagadh cóip ar Bhord na Dála ar an 4adh lá de Mheitheamh, 1930, agus go molann don Ard-Chomhairle gach ní is gá do dhéanamh chun an Chonnartha san do dhaingniú.

"That the Dáil approves of the Treaty of Commerce and Navigation between Saorstát Eireann and Germany, signed on the 12th day of May, 1930, a copy of which was laid on the Table of the Dáil on the 4th day of June, 1930, and recommends the Executive Council to take the necessary steps to ratify the said Treaty."

The Treaty is based upon the principle of most-favoured nation treatment and gives most-favoured treatment reciprocally as between the two countries. That is shown in the separate clauses of the Treaty which are self-explanatory.

I notice in the report of the discussions of the various Committees of the League of Nations circulated by the Minister that there appears to be considerable disagreement amongst the representatives of various countries as to what the exact significance of the most-favoured-nation clause in commercial treaties is. I would be glad if the Minister would tell us exactly what interpretation his Government has put on that clause. References, for example, have appeared in the Press to a contemplated customs union between Germany and Austria. Are we to understand that whatever commercial advantages are accorded to Austria, under that arrangement, will also be accorded to the Irish Free State, or are special arrangements of that kind excluded? Similarly, a question may arise for us if at any future time it was decided to limit the importation of classes of goods by means other than tariffs. One of the questions raised at that League of Nations Committee was whether in such circumstances we would be bound to take steps to provide that the same proportion of the goods concerned would. come in from Germany as in the past. If, for example, the Free State Government decided to restrict the importation of barley, not by means of a tariff, but by the fixing of a quota, would we be under any obligation to ensure that German barley would still be imported in the same proportion as in the past, under the quota arrangement. These are points upon which there appears to have been a difference of opinion amongst representatives of the various countries at Geneva. I would like if the Minister would clear up the matter on the first occasion on which a motion of this character is being brought before the Dáil.

With regard to the customs union, I can be precise. Most-favoured-nation treatment has not hitherto been extended to customs unions made between two countries, or even, in fact, to identical customs standards which are adopted as between contiguous countries. As a matter of fact, if this country likes to enter into the same relation with Austria as Germany is at present entering into, there is an offer at the moment that that should be done, and the country has only to accept that offer to get these terms. It is not, however, offered by reason of this Treaty.

With regard to the interpretation of the phrase "the most-favoured-nation treatment" there is some difficulty, but more in its application to new policies that are being discussed at the moment at Geneva than otherwise. It is quite clear that I cannot decide here a matter which the League of Nations has thought of such importance as to establish a Special Committee to deal with. As the term is understood at the moment, it has a pretty clear application, in a rough and ready way, that we favour no country more with regard to the specific matters mentioned, that is, that whatever is regarded by Germany as favoured treatment must also be given to them.

With regard to quotas, the view largely held is that they would be fraught with such difficulties in their determination that they would almost lead to the denunciation of the most-favoured-nation clause in treaties. That view, of course, is not completely held. I would not like to say it is held as the majority opinion of the nations whose commercial relations are based upon most-favoured-nation treatment. At any rate, that question can only be decided in the particular circumstances of a particular scheme with regard to quotas. The principle is fairly clear that a nation must get the treatment which is given to the nation that is most favoured in the commercial relations of this country in the specific cases that are mentioned.

I would like to raise another point. I was not aware that this matter was coming on to-day. It has been on the Order Paper for quite a long time. When the terms of this Treaty were being negotiated, did the Minister give any consideration to the fact that some economic dislocation had been caused here by the importation of subsidised oats from Germany? Would he not consider it advisable to have endeavoured to include in the Treaty some safeguard for producers of that cereal in this country against subsidised competition of that kind? Did he attempt to do so, and, if so, what was the result?

That was not attempted. It would have been going away from the basis of most-favoured-nation treatment altogether. There is observable a tendency to change. Up to very recently, the continental system was tending rigidly towards a scheme of most-favoured-nation treatment and no attention was paid to specific items. On the basis of taking out one particular article, the Germans would do no business whatever. As a matter of fact, the export bounty system with regard to oats has been withdrawn recently.

The only point arising in that connection is this: In how far would this Treaty limit us if we found ourselves in a position in which it would be advisable for us definitely to exclude subsidised products of any kind if the only country subsiding the exportation of such products was Germany?

As long as the thing is done generally we can exclude all articles subsidised.

Question put and agreed to.
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