IRISH DISPUTE.

Press, Volume LXVIII, Issue 20620, 9 August 1932, Page 9

IRISH DISPUTE.

SIR JOHN SIMON'S STATEMENT. CONTROVERSY DEPLORED. DESIRE FOR EARLY SETTLEMENT. t ■ (BRITISH ojriciA.li vrmiuESS.) RUGBY, August 7. An important reference to the Anglo-Irish dispute was made by Sir John Simon (Secretary of State ior Foreign Affairs) in a speech to-night. He particularly deplored the controversy, because., after a long histoiy of misunderstanding, the Irish Treaty, signed 10 years ago, had formed & basis on which close and harmonious relations wero being built up. The essential elements of the land annuities question wero very simple. The annuities were based 011 actual transactions entered into by tho Irish farmers for the purpose of buying their holdings. The British Government borrowed from .individual lenders the money by which tho land was bought, guaranteeing repayment on the faith of the promise that the instalments paid by tho purchasers, representing interest and sinking fund, would bo regularly forthcoming. The annuities thus represented the means by whicn. hundreds of thousands of Irish tenants were becoming owners of farms, by tho payment of instalments, which wero little more than half the amount payable as rent prior to purchase. Before Mr E. de Valera came jn fco office the annuities were collected irora the borrowers by'tho Free State Government, and paid to the British Commissioners, who distributed them to the lenders. The agreement signed on March 26th, provided: "The Government of the. Irish Free State undertakes to pay to the British Government, at agreed intervals, the full amounts of the annuities due under tho Irish Land Acts of 1891 to 1909." This agreement was published and discussed in the Dail. Mr do Valera, however, while still co'lecting tho stalments from the Irish formers, contended that thero was no obii en t ion to pay the money over, with the consequence that tho British Goverment had been obliged, out of its own resources, to find the monev due to tho lenders. "No Analogy "With War Debts." It was obvious th&t the case had no sort of analogy with war debts, indeed, Ireland was the only country m Europe, besides Belgium, wiucu had been forgiven its suare of war debts altogether. The British Government had to protect its budgetary position by imposing certain duties on Irish imports, to make up tho loss. It was clear that the case might bo adjusted two ways, by arbitration or negotiation, and the British Government earnestly trusted that one or the other would be speedily adopted. Mr do Valera contended that thero were good arguments to prove that the Irish Government should keep the money. The British Government did not agree, arid the way to end such a disagreement was by an arbitral award, by which both sides would be bound. The Minister denounced as false any suggestion that the Prime Minister (Mr Ramsay Mac Donald) had refused even negotiation unless the land annuities were first paid over. "Progress is possible," said Sir John Simon, "through arbitration such as We proposed, either on the basis that in the meantime both sides continue what they are doing now (the money being impounded and the duties bfeing collected), or on the basis that both sides go back to tho course of practice they were following before the instalments were withheld. But whatever _ procedure is followed, men of goodwill on both sides of the Irish Sea who want to see the bargain kept and disputes settled will hope tho means will soon be found to end a controversy that every believer in Anirlo-Irish co-opera-tion most deeply deplores." SURPRISE VISIT. MR MACDONALD IN IRELAND. NO POLITICAL SIGNIFICANCE. LONDON, August 7. Considerable speculation lias been aroused in the Irish Press over Mr Ramsay Mac Donald's week-end air diish to Ireland; It was announoed in London that Mr Mac Donald was flying to JiOf-siOinouth, and was making a "personal call" en route. His real destination was kept secret until he was located with Lord JLondonderry at Mount Stewart, Newtownards, County Downs. Mr MaeDoiiald declined to make a statement before August 9th, but it is hinted that his visit is associated with an Ottawa message suggesting the iirgent desirability of settling the Irish dispute. The "Daily Mail" says that anxiety has been aroused in political circles as the result of the Irish Press revelation of Mr Mac Donald's visit. Mr MacDonald says it is private and confidential, but in some political circles it portends further concessions to Mr do Valera. Ther Ottawa correspondent of the "Daily Mail" says: "It is unofficially understood here that Mr de Valera within a fortnight has twice ordered the Irish delegation to return, which orders were ignored." Mr Mac Donald later informed the Mount Stewart correspondent of the "Daily Mail" that the report that he was visiting Ireland for the purpose of effecting a settlement with the Free Stat© Was a sheer invention, arid there was not 3, vestige of truth therein. He acjded: "I 'vo come here for three or I four days' complete rest and am not concerning myself in Irish affairs at tlv> moment." FREE STATE TRADE. CITIZENS NEAR DESPAIR. (Received August Bth, 7.10 p.m.) LONDON, August 8. The Dublin correspondent of "The Times" sp.ys tlutt the people of the Free State, after a most depressing week, are bewildered almost to the point of despair. Tile Dail Eireann will U6t reassemble until October. Mr do Val«ra'6 speech has mado the position oven more obscure. Citizens resemble the of a rudderless, Storm-tossed ship, the officers and crew standing idle, waiting for the end of the one-way trade. Mr de Valera advises the farmers to fivoid panic, but nothing is being done to remove the deadlock.