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Seanad Éireann díospóireacht -
Wednesday, 6 May 1931

Vol. 14 No. 17

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

I move:

That the Seanad 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 Seanad on the 4th day of June, 1930, and recommends the Executive Council to take the necessary steps to ratify the said Treaty.

There may be some points in this Treaty which require explanation, but as the Minister for External Affairs is here to deal with it I simply content myself with formally moving the motion.

There are quite a number of points that I think ought to be touched upon before this motion is passed. The Treaty itself is, I think, the first of what will likely be a series of somewhat similar treaties. Therefore I think we ought to know exactly where we stand and what the principles in operation are. What I have to say on the matter will be preliminary to voting in favour of the motion, but I think there are some points that require explanation by the Minister. To begin with, I take it as quite a courtesy to the Seanad that the motion is submitted in this form at all. We are asked to approve and to recommend the Executive Council to take steps to ratify. It happens that Article 25 of the Treaty says that "the present Treaty, after having been approved by Dáil Eireann and by the Competent Legislative Authorities on the part of the German Reich, shall be ratified," and so on. So that the form of the Treaty itself does not recognise the Oireachtas so much as the Dáil. I say, therefore, it is somewhat of a courtesy that this Treaty is formally brought to our notice as a Seanad at all.

The first question I want to raise is as to whether, in Article 7, the term "The British Commonwealth of Nations" is understood by the German Government in the same sense as it is by the Free State Government. The same term is included in the Portuguese Treaty. In the Portuguese Treaty and in this Treaty the corresponding foreign text signifies "the British Empire" where the English text speaks of the British Commonwealth of Nations. I think it is quite understandable that the use of this new term in recent years should be somewhat vague. That is to say, it does not bear a precise definition, and perhaps there is some misunderstanding as between the British Government and the British people, the Free State Government and the Free State people, Australians, Canadians, and so on, on the significance of the term "British Commonwealth of Nations." It may not be any great harm that the term has not been specifically defined. But so far as we are concerned, when we put it into a Treaty, it surely is important that the other parties to the Treaty should have the same understanding of the term as we have ourselves.

It has been stated, for instance, that the term "British Commonwealth of Nations" only includes those Dominions with Great Britain and the Free State which are independent, self-governing, and have representation on the League of Nations and are recognised by it. If that is the meaning in this particular Article, then it is a question as to whether the succeeding Article in the Treaty would apply, let us say, to Ceylon or perhaps even to India. Although India is represented on the League of Nations, it is not a self-governing Dominion of the British Empire. If that narrow definition is the real definition, and is understood by the German Government as well as by the Free State Government, it would rule out many countries—Ceylon, Newfoundland, I think, the West Indian Islands, Rhodesia, Malay, and quite a number of other places with which there may be traffic at some time or other. The important thing, I think, is that the German Government should have the same understanding of this term as we have ourselves. In the German text there is a phrase which clearly indicates "British Empire." We have to take it, therefore, that "the British Commonwealth of Nations" has the same meaning as "British Empire" has. That, surely, is likely to be a difficulty in the future. It certainly has been stated in the Dáil that the term "British Commonwealth of Nations" is something different from the term "British Empire" in its meaning. I think it is important that this matter should be cleared up at an early stage in these international conventions in which the term occurs.

In Article 5—to come back again for a moment—there is a reference to exemption from all compulsory military service. That is to say, that Free State nationals in Germany will not be obliged to serve in the Army, or that if there were compulsory military service here German nationals in this country would not be obliged to serve in the Army. The Article goes on to say: "They shall similarly be exempted from all judicial, administrative, and municipal functions whatever, other than those imposed by the laws relating to juries.

I am in a difficulty to know what exactly is exempted there. Is it meant that only those judicial, administrative and municipal functions which are obligations shall be exempted, or are we to take it that those functions may be the duties and privileges of residents in this country? Is it the function that is exempted and does exemption there imply prohibition; that a German living in the Free State will be exempted or prohibited from exercising the vote? That is a municipal function. Will a German citizen living in the Free State be exempted from serving in the Dáil, if elected, or on a municipal council, if elected? I am inclined to presume, after reading the next paragraph, that this word "exemption" rather implies exemption from obligations that are imposed upon all the citizens, but it seems to bear the interpretation that it is a deprivation of what is the right accorded in the main to residence in the country. I do not think it would be desired by the people of this State to exempt or deprive of the right to vote a resident who was of German nationality and who had not taken out Free State naturalisation papers.

There is a series of Articles dealing with navigation, light dues, tonnage and harbour dues. It appears that what we are asked to say is that henceforth, while this Treaty is in effect, no preference shall be given to vessels of Irish Free State register which will not equally apply to German vessels; and, similarly, that German vessels will not have preference over Free State vessels in German ports. As the number of Irish national vessels is very small and the number of German national vessels is very great, the advantage in this matter is clearly with the Germans. It ought to be known that we are entering into an obligation not to give a special preference to Irish national shipping over German shipping.

In Article 14 there is a provision giving a preference in respect of fish—

The provisions of this Treaty shall not be applicable to the special treatment which is, or may hereafter be, accorded by either of the contracting parties to fish caught by vessels of that party. Fish caught by vessels of either party shall not be treated less favourably in any respect on importation into the territory of the other than fish caught by the vessels of any other country.

That could be quite well understood as a Treaty between Great Britain and Germany, but I am not quite sure what its effect would be in respect of herrings caught by the Scotch drifters in Donegal and exported to Germany. They are not caught by vessels of the Free State. Are they to be treated on equal terms and as though they had been caught by vessels belonging to the Free State? I think that the great bulk of the fish caught around our coast and shipped to Germany is caught by vessels not belonging to this State. Therefore, this particular provision would seem to have no reference to the bulk of the fish exported from this country, because it is not caught by vessels belonging to this State. Articles 15 to 19 deal with matters of tonnage rates, harbour rates, pilotage, lighthouse, quarantine or other analogous duties. We are again contracting with the German Government not to give any preference to Free State ships which will not apply equally to German ships, and we are not to give any preferences to British ships which are not to apply to German ships. That is not stated in so many words, but it is the clear implication of these Articles.

There is another Article which, in effect, is a proviso which says "the provisions of this Treaty relating to the mutual concession of national treatment in matters of navigation do not apply to the coasting trade." Now, I am at a loss to know what that means, because, in practice, unless there have been great changes in the last few years in the shipping trade, the merchanting of goods traffic between Dublin and Belfast is coasting trade, as it is between Dublin and Liverpool, Cork and Liverpool, Cork and Bristol. So that while we are making certain concessions in regard to tonnage rates, harbour rates, etc., saying that we are giving to German ships in Free State harbours treatment equal to that which we give British ships or to Free State ships in those harbours, we are also saying that these concessions will not apply in respect to the coasting trade. Are we certain that the Free State Government and the German Government understand that the trade referred to as "coasting trade" is the coasting trade round the ports of the Saorstát only, or are we contracting to put German ships in respect to all Free State ports on equal terms not only with our own ships but with British ships? Are we binding ourselves to give to German ships the same terms and privileges in regard to all shipping that we are doing in respect to British ships?

There is a further point. Unless there has been change within recent years, it was customary for harbour dues and light dues to be on a lower scale for coasting traffic than for foreign-going vessels. Cross-Channel traffic was always treated as coasting traffic and, therefore, charged on the lower rate. British ships, in the main, do that coasting traffic. It would seem to me to follow from this Treaty that henceforward German ships travelling, say, from Hamburg to a Free State port must be placed in the same category as British ships which are doing a coasting trade. If that is understood it is all right, but if there is any doubt in the interpretation of this Treaty in that respect I think it may cause some difficulty in the future. The term "coasting trade" has hitherto been held to mean cross-Channel trade as well as trade around the coast of Ireland, and even taking Ireland as a geographical unit traffic between Dublin and Belfast was surely coasting trade. Is it still coasting trade? If it is, then it would seem to me to follow that Hamburg to Cork traffic would be coasting trade. I am rather doubtful whether that is the intention of this Treaty.

Article 23 provides that this general series of most-favoured-nation provisions will not extend in respect of favours already granted or to be granted hereafter by either of the contracting parties to an adjoining State "to facilitate traffic to certain frontier districts, as a rule not extending beyond 15 kilometres on each side of the frontier, and for residents in such districts." That is quite easily understood, particularly when we have regard to the recent provisions respecting butter going across the Border.

Then we have paragraph 2 of Article 23, which sets out:

The provisions of the present Treaty with regard to the grant of the treatment of the most-favoured-nation do not extend to—

(2) Favours granted by either of the Contracting Parties to a third State in virtue of a Customs Union which has already been or may hereafter be concluded.

Paragraph 3 says:

(3) Favours which either of the Contracting Parties has granted or may hereafter grant to a third State in agreements for the avoidance of double taxation and the mutual protection of the revenue.

It would almost seem to me that if the present ideas regarding a customs union come to fruition, and if the relations between the States that are members of the British Commonwealth are to be interpreted as being a customs union, there will not be very much left within the scope of this general scheme. These are some of the points that occur to me as being worthy of further elucidation. I make these comments in the hope that some of the doubts I have expressed as to the interpretation of the Treaty have been made quite clear to the other party. I hope the Minister will reassure me on the point, particularly in regard to those two matters—one, as to the recognition of the meaning of the term "British Commonwealth of Nations," and, two, the interpretation of the term "coasting trade."

I am very glad that the points outlined by Senator Johnson have been raised. I am not sure that I will be able to give him the entire satisfaction that he would like in regard to all his points. This Treaty took us very much longer than one year to negotiate, not because there was any lack of good-will as between the parties, but simply because there were so many details to be covered and because we did regard this Treaty as a model Treaty, a Treaty which will be the basis of most of the trade relationships into which we will enter with other countries. We left certain things somewhat open, it being recognised that the Treaty may be denounced on six months' notice and may thereby be subject to amendment on disputed points.

As to the clause dealing with exemptions, all that we set out to achieve here was that nationals of either of the contracting parties should be exempted from certain things which they considered undesirable. For instance, the nationals of either of the contracting parties in the territory of the other shall be exempted from all compulsory military service, whether in the Army, Navy, Air Force, National Guard or Militia. Similarly, they shall be exempted from all judicial, administrative and municipal functions other than those imposed by the laws relating to juries.

The Senator raised the special point about a German being allowed to stand for Parliament and being allowed to serve if elected. If we attempted to impose an obligation on a German to stand for Parliament, or if there was compulsory voting in this country and we attempted to impose it on a German resident in this country, I think that under the terms of this Treaty he could object. On the other hand, if we decided under the municipal law to grant to a German resident in this country the right to vote or stand for election, I do not think anybody could use this Treaty as against that person availing himself of the right. It seems to me that it is only where the person himself regards it as something compulsory and objectionable that he might claim exemption. That, at any rate, is the framework of the section, and I may say that the trouble that is likely to arise under it will be small.

A variety of matters was raised by the Senator with regard to shipping. Under Article 16 we do guarantee that in regard to duties of tonnage, harbour, pilotage, lighthouse, quarantine, or other analogous duties or charges of whatever denomination levied in the name or for the account of the Government, public authorities, concession-aries or undertakings of any kind, the vessels of each of the contracting parties shall enjoy in the ports of the territory of the other treatment at least as favourable as that accorded to national vessels or to the vessels of any other country. In respect of specific duties—duties of tonnage, harbour, pilotage, lighthouse, quarantine or other analogous duties or charges— certain vessels are guaranteed national treatment. The ships affected are the vessels of each of the contracting parties.

The Senator raised the point: What vessels are "the vessels of the contracting parties"? Section 17 makes an attempt to deal with that, and it sets out that: "The nationality of vessels shall be recognised by each of the contracting parties in accordance with the laws and ordinances of the other, and shall be proved by the documents issued by the competent authorities and carried on board." With regard to boats which carry herrings caught off our coast, say within our territorial waters, whether or not these boats will be considered as boats of ours will have to be determined by our shipping legislation. The question of the registration of the boats will, of course, then arise. If they are registered here, then they are our boats, and they will get whatever favourable treatment they are entitled to under this Treaty. Boats will have to be registered in connection with herring fisheries. Already some boats have attempted to take out registration, and a certain type of registration has been introduced in regard to them.

With regard to Article 14, I did not quite catch the Senator's point. Reference was, however, made to boats carrying fish, caught around our coast, to Germany. The Treaty sets out: "The provisions of this Treaty shall not be applicable to the special treatment which is, or may hereafter be, accorded by either of the Contracting Parties to fish caught by vessels of that Party. Fish caught by vessels of either Party shall not be treated less favourably in any respect on importation into the territory of the other than fish caught by the vessels of any other country." Again, the meaning of the phrase "of either Party" will have to be determined in accordance with Article 17. If and when the whole thing is clear we shall not give less favourable treatment in any respect on importation than would be given to fish caught by the vessels of any other country; in other words, the most-favoured-nation treatment is accorded.

Apparently, I did not make my point clear. Let us take the Scottish herring boats as an example. They land their fish in Buncrana. The fish are cured in this State and they are shipped from Buncrana to Germany. Does this Treaty guarantee that these fish, not caught by vessels of this State, will be treated equally as though they were caught by vessels of this State?

Not as far as this Article is concerned. The fish are caught by vessels which are not "of either Party." There is an Article with regard to the exportation of goods which would have a bearing on those fish, but this Article would not have any bearing. I am in doubt as to the point raised in connection with Article 18, which says:

The provisions of this Treaty relating to the mutual concession of national treatment in matters of navigation do not apply to the coasting trade, in respect of which the nationals and vessels of each of the Contracting Parties shall enjoy most-favoured-nation treatment in the territory of the other, provided that reciprocity be assured.

In respect of that we guarantee most-favoured-nation treatment if there is reciprocity. The Senator is really, I think, querying what is coastal trade. That, again, may have to be determined by practice. I want, however, to be precise on one point. Trade between Hamburg and Cork is not coastal trade.

What about trade between Cork and Liverpool? Is it coastal?

I think not. The trade between Cork and Belfast is a more difficult thing to determine. The trade between Cork and Liverpool is not coastal and the trade between Cork and Hamburg is decidedly not coastal. There were two big points raised with regard to Article 23 and Article 7. According to Article 23 the provisions of the Treaty with regard to the grant of the treatment of the most-favoured-nation do not extend to favours granted by either of the contracting parties to a third State in virtue of a customs union. Consequently we do not receive by virtue of this Treaty any advantages which Germany may give to Austria through the projected Austro-German Customs Union. Even if customs arrangements are hereafter concluded between different members of the British Commonwealth of Nations, and if these arrangements were to count as a customs union, I think that there would still be quite a lot of value in this Treaty if it continued to regulate our relationship.

With regard to Article 7, I think that there we find a difficulty in translation more than anything else. We have no doubt as to what is meant in that Article and I cannot conceive that the Germans are in any doubt as to what we mean. The term "British Commonwealth of Nations" is a wider term than the British Empire. The British Empire is in itself one of the sections of the British Commonwealth of Nations. "British Empire" has, in fact, now come to mean "British Colonial Empire." The meaning of "British Commonwealth of Nations" emerged to some point of clarity in the 1926 Conference, and year by year it is becoming clearer to the nations which frequent Geneva. Even though there is some slight difficulty because people may, in rhetorical moments, use the term "British Empire" in the old meaning, I do not think there is any difficulty when it comes to a matter of precise documents. There may be confusion in the phrase used in the German text, but as far as we are concerned we rely on the English text of the Treaty. There is really no doubt as to what the term "British Commonwealth of Nations" covers in the minds of the nations with which we have frequently to deal.

Question put and agreed to.
The Seanad adjourned at 5 p.m. until Wednesday, 13th May, 1931.
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