[matter omitted]
2. Customs Unions: The French and Italian delegations have been having talks in regard to a Customs Union between their two countries. They agreed to it in principle but wished Benelux to come in. Benelux replied that they would not enter the Union unless Great Britain were to participate also. Sir Oliver Franks, Leader of the British Delegation, went to London a few days ago to ascertain the views of his Government. He was told that the British Government would not be agreeable to enter the proposed Customs Union. The USA, on the other hand, are very favourable to the idea of broad European Customs Unions - see in this connection paragraph (c) and subsequent portion of Secretary's report of his interview on the 24th July with the Financial Counsellor of the US Embassy in Paris. Sir Oliver Franks had asked the Secretary the previous night (12th August) what the Irish Government thought about entering a Customs Union. Mr. Boland replied that his personal opinion was that the Government would almost certainly not be in favour of a Customs Union with any other country. The position at the Conference now is that there is likely to be much disagreement and discussion on this question and it is possible that the Secretary may be called upon to make a statement on the Irish Government's views. If such a statement should be called for he would submit here the draft of what he would propose to say.