Ashburton Guardian Magna est Veritas et Prævalebit. SATURDAY, JULY 27, 1935. IRISH FREE STATE TRADE.

Ashburton Guardian, Volume 55, Issue 243, 27 July 1935, Page 4

Ashburton Guardian Magna est Veritas et Prævalebit. SATURDAY, JULY 27, 1935. IRISH FREE STATE TRADE.

It is not surprising that a stir was caused in Irish political circles by Senator Jameson’s proposal in regard to trade with England. The Senator advocated that a Free State commission representative of all parties and business interests should be appointed to meet a similar body of Englishmen to discuss the settlement of the trade war between Britain and the Free State. In support of his proposal Senator Jameson emphasised that both countries would gain enormously from a mutual trade agreement, and for this reason both should be prepared to make valuable concessions. But the balance of advantage would be with the Free State. When Mr de Valera s Government refused to pay the land annuities, the British Government set out to collect them by imposing duties on Free State produce. The method has proved effective, since Mr de Valera has admitted in the Dail that the duties have yielded £4,692,000, against £4,900,000 withheld by his Government. Thus accounts are practicajly balanced on paper, although actually the Free State has lost , a great deal by the virtual repudiation of the annuities. Her credit has suffered and she has lost the free market in Britain which the rest of the Empire still enjoys. The sums she has withheld from Britain she has had to use to subsidise her own producers to enable them to pay the duties levied on their produce. So, in effect, the Free State is still paying the annuities, but also suffers all the pains and penalties for withholding them. Her trade position shows a marked deterioration. Last year the value of imports was mor.e than twice that of exports, £39,000,000 against £19,000,000, leaving an adverse balance or £20,000,000, which exceeds the total of exports. No doubt it was this ominous drift which caused the Minister of Finance to explain to the Dail about two months ago that the income of Free State citizens from foreign investments totalled £9,000,000 in 1933. That is certainly a substantial set-off against the adverse trade balance, although the latter remains dangerously high. But it dos not say- much for the faith of Free State citizens m their own country that they should invest so largely abroad. An income of £9,000,000, capitalised at four per cent, represents foreign investments of £223,000,000, surely a large sum for a small country. Its alienation in foreign lands is the more significant since Mr de Va era launched his policy of natiopal involving the establishment of local industries.