BRINGING THE FREE STATE TO HEEL

Nelson Evening Mail, Volume LXVI, 1 July 1932, Page 5

BRINGING THE FREE STATE TO HEEL

ACTION BY BRITAIN AN ANNUITIES BILL TO RECOUP LOSSES CUuited Press Association—By Electric Telegraph—Copyright) LONDON, 30th June. Mr Baldwin makes an important announcement in the House of Commons to-day regarding measures to recover moneys due from the Free State for annuities. These are being paid to stockbrokers as guaranteed by the Government, but in order to safeguard British taxpayers, Cabinet has decided to intx-odiice immediately a Bill to be passed through all stages without delay. Cabinet on Monday decides the nature of the levy to be made. This may be either in the form of import duties on certain classes of Irish goods, or a levy whereby half the purchase price of imports would be payable to excise, leaving the Irish exporter to recover the amount from the Free State Government.

British Ministerialists expect that there will be a speedy dissolution of the Irish Parliament. Mr de Valera hoped to make the oath the issue at the election, but now he will be forced to test Irish opinion on the question of annuities. Mr Baldwin said Britain bought £23,500,000 worth of food products from the Free State, which was 96 per cent, of her total exports. It is unlikely that definite procedure will be embodied in the Annuities Bill. Instead the Treasury will be authorised to take any steps it deems proper to recoup itself for the loss of money due to the Treasury, being given power to withdraw dominion preferences from the Free State, or remove Free State imports from the existing free list. The Government niay not immediately put its powers into operation, but will use the Act as a bargaining weapon to bring the Free State to heel. (British Official Wireless? RUGBY, 30th June. Mr Thomas stated in the House of Commons that no payment,in respect to land annuities now due had been received from the Irish Free State and he would next Monday submit to the House proposals for dealing with the situation. Later Mr Baldwin said a ways and means resolution relating to the Irish Free State Special Duties Bill would be moved on Monday. It is understood this measure will impose special duties on Free State imports into Britain, which amount to approximately thirty million pounds annually, to raise revenue so that the consequences of the Free State default shall not fall on the British taxpayer.