FREE STATE DEFAULT

Waikato Times, Volume 112, Issue 18682, 7 July 1932, Page 7

FREE STATE DEFAULT

IRISH DUTIES BILL. READ A FIRST TIME. RETALIATION PROPOSED. United Press Assn.—Elec. Tel. Copyright. LONDON, July 5. In the House of Commons to-day the Irish Free State Special Duties Bill was read a first time amid cheers. Dublin correspondents report that the attitude of Mr. De Valera and his Ministry on the question of arbitration in regard to the land annuities is unchanged. The British Cabinet to-day will consider the terms of its reply to Mr. De Valera's latest despatch repudiating a whole series of financial obligations. In the absence of the Free State’s acceptance of arbitration by an Empire tribunal the Government feels it has no option but to go straight ahead with the second reading of the Special Duties Bill in the House of Commons today. The Dublin correspondent of the Daily Herald states that although Ireland is still hoping for an agreement on the arbitration tribunal’s personnel, in order to prevent economic reprisals the Free State Government is preparing to counter Britain's special duties by a prohibitive tariff against British coal. Already offers have been received of large supplies of German coal at favourable prices, says the correspondent. LATER. IRISH DUTIES BILL. SECOND READING MOVED. MR THOMAS’ ASSURANCES. United Press Assn.—Elec. Tel. Copyright. (Received July 7, 12.30 p.m.) LONDON, July 6. In the House of Commons, Mr J. H. Thomas, in moving the second reading of the Irish Duties Bill said it admittedly took drastic and unlimited powers, hut the Government had no alternative, for it refused to call on the taxpayers to bear a further burden. The Act would be discontinued immediately the just dues were received or other settlement reached. The Government proposed to collect the money with a minimum of inconvenience to Britain’s trade. The powers of the bill included taxation of all Free State imports. The Minister appealed to the House to trust the Government not to abuse its powers and added: "We have gone to the limit. We will not be a party to any tribunal to settle what is essentially a domestic matter from outside the Commonwealth of nations. In a despatch now en route to Mr De Valera, I have made that clear. “In regard to the other payments mentioned in his latest despatch, we still do not know the grounds whereon the Free State’s liability is disputed. If, however, the Free State will Indicate the grounds whereon the agreements relating to those payments are challenged we, in order to show a desire for a friendly settlement, of all financial questions, will consider the possibility of agreeing to arbitration thereon by the same tribunal we have already proposed in regard to the land annuities." The Bill was read a second time by 321 votes to 41.