CRISIS AT HAND

Wanganui Chronicle, Volume 75, Issue 258, 1 November 1932, Page 7

CRISIS AT HAND

TREE STATE DEADLOCK “ANYTHING MAY HAPPEN” I LABOUR PARTY RESTIVE PLIGHT OF AGRICULTURE (Times ('able ■. Received Oct. 31. 9.5 p.m. DUBLIN. Oct- 3,0. The increase in tho duties on farm produce to 30 per cent, after November 15 spells ruin if maintained for many months. Tho effect on Christmas trade pi poultry is likely to be calamitiu-. The Fteu State's whole agricultural economy is heading for bankruptcy, inducing a feeling that a political crisis is certain in the next few weeks. The Labour Party is growing increasingly restive. Unemployment has risen to alarming proportions and the resources of the poor relief are in the last stages of exhaustion. Anything may happen if the Government adds to the discontent bv enforcing the vollection of the annuities. Twelve suffered head injuries in a clash at Mallow, when General Mulcahy addressed a “White Army’’ meeting. A member of the White Army was shot in the leg. CLEAR STATEMENT BRITAIN AND ANNUITIES [ British Official Wlreiesa. ) RUGBY. Oct. 29. A White Paper issued this morning contains correspondence relating to the recent correspondence in London bej tween the United Kingdom and the I krsh Free State. I Tn the first document the Free Slate declines to recognise that there is any binding force in certain instruments upon 'which the British Government reply. They state that the instrument of February 12. 1923, is not binding, because, amongst other reasons, it was not submitted to the Irish Parliament for ratification. It was merely provide nah The ultimate financial settlement in March, 1926, it states, is open to the same objection. The Free State Government contends that land and stocks are part of the public debt of tho United Kingdom and should, therefore, under the 1925 agreement, which amended the Irish Treaty, remain a liability to the United Kingdom. The United Kingdom in reply to this memorandum pointed out that according to recognised practice national agreements concluded between representatives of Governments are binding upon the Government concerned, unless expressly subject to ratification. No such statement occurs in the agreements of 1923 or 1926, which were signed by Ministers on each side. Concerning the land question annuities, it is stated that there are many considerations which show that the Irish land and stock are not part of the Public Debt or National Debt of the United Kingdom. They have, never 1 been so shown in the United Kingdom accounts. They are a contingent liability, since the primary security is the land purchase fund, and the United Kingdom Government are only guaran- ! tors. Apart from the technical con- , sidcrations. it is perfectly clear that when the agreement of 1925 was signed by which fhe Free State was absolved from biaring any share of the Public Debt of the United Kingdom, neither party intended it to include land annuities in this term. This is shown, inter alia. by the fact that the subject agreement of 1926 provide for the payment of annuities in full, and without deduction of income tax, to tho National Debt Commissioners. Land annuities are debts due by the Free Slate tenants to the Laud Purchase Board Fund, held by the National Debt Commissioners, in respect of sums advanced to enable them to buy their land. Annuities have been collected by the Free State Government as agent. That Government have no right to collect except as agents. They are bound to pay them over when collected and the Irish Free State Legislature has provided that they shall be paid over. It is for this reason that the payments cannot be regarded as intergovernmental debts. GOVERNOR-GENERAL LAST OFFICIAL ACT LONDON, Oct. 30. Mr. J. McNeill performed his last act as Governor-General of the Irish Free State by signing three Bills assented to by the Senate. He vacates the A’ice-regal lodge on Tuesday. A new appointment is expected iu a fortnight.