No. 223 NAI DFA Secretary's Files S32

Letter from John W. Dulanty to Joseph P. Walshe (Dublin)
(Secret and Confidential)

London, 30 May 1934

I met Mr. Walter Runciman last evening at the Connaught Rooms where the London Chamber of Commerce held its Annual Dinner. He suggested that when the dinner was over we might walk back to his house together and I of course agreed.

Mr. Runciman said that he had gone very carefully into the figures since my recent conversation with him - which I reported on the 9th May.1 Owing to the holidays and the absence through illness of Mr. Walter Elliot he had not been able to see the latter gentleman.

But he felt that without the advantage of consulting Mr. Elliot there was, from the point of view of the Board of Trade, a case for negotiation. Setting considerations other than trade entirely on one side he would like to do with us what he had done with several foreign countries and certain of the Dominions. The procedure on those occasions I gathered was that each side came with a list of desiderata; a list of things which might be done without cutting across any main principles of either side: and a list of the commodities in which each side wished to see trade expansion.

He reminded me when I made my suggestion to him it was in the terms of exploring the possibilities of our giving them orders on a quid pro quo basis, without reference to either the existing financial or political framework. I accepted that description. ?But', continued Mr. Runciman, 'since then President de Valera has made statements which may affect the current political aspect'. Notwithstanding that however he was willing to see if anything could be done strictly on the basis of trade, without of course committing himself as to what his colleagues in the Cabinet might decide in view of the President's statement in the Dáil on the 25th May.

I have been wondering whether as a further and still tentative step I might be given details of the orders which we could divert to the British and some indication as to what we would like in return, with particular reference to the commodities in which we wish to trade. I could then have a further confidential talk with Mr. Runciman after which I could cross over for fuller discussion on the spot in Dublin.

[signed] J.W. Dulanty
High Commissioner

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