IRISH FREE STATE

Ashburton Guardian, Volume 53, Issue 17, 31 October 1932, Page 5

IRISH FREE STATE

mr james McNeill. HIS LAST ACT AS GOVERNOR. SIGNING OF THREE BILLS. (United Press Association —Copyright.) (Received This Day, 9.45 a.m.) LONDON, October 30. Mr James McNeill performed bis last act as Governor-General of the Irisn Free State, signing three Bills assented to by the Senate. He vacates the Y ice--11 egal Lodge on Tuesday. The new appointment is expected in a fortnight.

LAND ANNUITIES QUESTION. CORR ESPONDENCE PUBLTSHED. (Received This Day, 11.40 a.m.) LONDON, October 30. A White Paper issued this morning contains correspondence relating to the recent conference in London between the United Kingdom and the Irish Free State. , - In the first document the Free State declines to tecognise that there is any binding force in certain instruments upon which the British Government relies. It states that the instrument of February 12, 1923, is not binding because, among other reasons, it was not submitted to the Irish Parliament for ratification. It contains merely the provisional heads of the ultimate financial settlement of March, 1926. The Free State is open to take objection. The Free State Government contends that land stocks are part of the public debt of the United Kingdom and should therefore, under the 1925 agreement, which amended the Irish Treaty, remain a liability of the United Kingdom. The. United Kingdom, in reply to this memorandum, pointed out that according to the recognised practice of nations, agreements concluded between representatives of Governments are binding upon the Governments concerned unless expressly subject to ratification!. No such statement occurs in the agreements of 1923 or 1926, which were signed by Ministers of each .side. Concerning land and the question of annuities, it is stated that there are many considerations which show that the Irish land stocks are not part of the public debt or national debt of the United Kingdom. They have never been so shown in United Kingdom accounts. They are a contingent liability, since the primary security is the Land. Fund, and the United Kingdom Government is only the guarantor. Apart from technical considerations, it is perfectly clear that when the agreement of 1925 was signed, by which the Free State was absolved from bearing any share of the public debt of the United Kingdom, neither party intended to include land annuities in this term. This is shown, inter alia, by the fact that the subsequent agreement of 1926 provided for the payment of annuities in full and without deduction of income-tax to the National Debt Commissioners. Land annuities are debts due by the Free State tenants to the Land Purchase Fund, held by the National Debt Commissioners, in respect of sums advanced to enable them to buy their land. The annuities have been .collected by the Free State Government as agent, and that Government lias no right to collect- except as agent. It is bound to pay them oyer when collected, and the Irish Free State Legislature provided that they shall be paid over. It is for this reason that the payments cannot be regarded as inter - .governmental, debts.—British Official t\ ireless.

CLAIMS MADE ON BRITAIN. DETAILS OF THE NEGOTIATIONS. LONDON, October 29. The Government has published a White Paper dealing with the redbnfc negotiations between Great Britain and the Irish Free State concerning the Land Annuities and other matters in dispute. The White Paper reveals that Mr de Valera claimed that the Free State was entitled to a share of the United Kingdom Road Fund. The British Government agreed, hut a dispute has arisen in regard to the apportionment. The Free State claimed that they would deem it unfair that it should he retrospectively revised. The Tieasuiy regarded this as inadmissible and both sides agreed to submit the question to the arbitration of Sir Henry Strakosch. The Free State claimed compensation in respect of loss consequent on Britain abandoning the gold standard. The British reply was that such abandonment had involved no loss to the Free State, but rather a profit. In any case the matter was a domestic one and no claim could lie admitted. Tim Free State claimed recoupment for over-taxation since the Union and a share of the assets of the foimei United Kingdom. It is understood that the amount involved is about £400,000,000. The British reply was that it was impossible, to establish any clear proof that Ireland had been over-taxed since the date of the Union up to the present. The Free State sought to avoid payment of pensions to the .Royal liisli Constabulary, civil servants and judges employed in Ireland before the creation of the Free State. It. was argued that the constabulary was an occupying force, hostile to the national aspirations of the Irish people. The British reply was that the question of the Royal Irish Constabulary was settled by the financial agreements of 1923 and 1926, when the Free State took over the functions of the police along with other governmental responsibilities Consequently the cost of pensions was a normal expense which any government would expect to bear. As regards

civil and judicial pensions, the genera! principle was that the various departments were handed over as going concerns with assets and liabilities attached. , '['he Free State, claimed a share oi the assets of the Post Office Savings Bank held against dormant accounts located in the Free State. The British reply said it was not possible to agree to transfer any part of the balances without the consent of the depositors or their legal representatives. As regards the annuities, the "White Paper disclosed nothing new except the insistence on the part of the Free State that the 1923 financial agreement was not submitted to ratification. The British reply was that according to recognised practice among nations, tlu agreements of 1923 and 1926 were binding unless expressly stated to he subject to ratification. No such statement was made in the agreement which was signed bv responsible Ministers on each side.