No. 246 NAI TSCH/3/S15077/A
Memorandum for Government by the Department of External Affairs
'Trade with Communist countries'
(305/57/132/4)
Dublin, 28 January 1954
- Policy in regard to trading with Communist countries is governed by decisions of the Government taken on the 18th September1 and 20th October, 1953.2
- The decision of the 18th September, 1953 related to exports and directed that export licences should be available for consignments of meat intended for the USSR and associated countries and that a similar policy be adopted in relation to exports of other foodstuffs to the countries in question.
- The decision of the 20th October, 1953 related to imports from such countries and directed that applications for permission to import goods from, or engage in other financial transactions with, countries belonging neither to the Dollar Area nor the European Payments Union – including countries under Communist rule – should be dealt with on the basis of the immediate currency position in each case. The currencies of all countries under Communist rule are at present ‘soft’ from the point of view of sterling and it is understood that exchange control permission for purchases from these countries is therefore being given freely.
- The foregoing decisions went far to remove obstacles of an official nature to private trade with countries of the Soviet bloc. In view, however, of the fact that in these countries trade is conducted for the greater part, if not entirely, by Government agencies, commercial relations with the countries in question may give rise to the necessity for action of an official nature on the part of the Irish Government. For example, it is understood that offers of meat have been made by the Irish Fresh Meat Exporters’ Committee to a Russian trade mission, which is at present in Britain. And the transaction, if it develops, might require the visit of the mission to Ireland and discussion between members of the mission and officials of the Irish Departments concerned. Again it is understood that Mr. Peadar O’Donnell is at present endeavouring, with some prospects of success, to arrange the sale of Donegal herrings to Czechoslovakia; the completion of such a transaction may require contact between the Irish and Czechoslovak Embassies in London or between other official representatives on both sides.
- In these circumstances, the question arises as to whether and, if so, to what degree, official action may be permitted in connection with commercial transactions with Communist countries. In his Memorandum of the 3rd March, 19533 the Minister for External Affairs stated that he would not favour the conclusion of any formal trading arrangements with Communist Governments as representing a departure from the general rule of avoiding bilateral relations with such countries; on the other hand, while he would be adverse to admitting into Ireland officials or commercial representatives of any kind from the countries in question for the purpose of trade promotion, he would see no objection, should the necessity arise, to the Diplomatic and Consular Missions abroad being availed of for informal discussion with official or commercial representatives of Communist Governments directed towards facilitating Ireland’s trading or economic interests.
- It is clear that in recent months the climate on both sides of the Iron Curtain has become much more favourable to commercial relations between East and West. Soviet efforts to raise the standard of living of the populations under their control seem to be leading to imports of goods on a much larger scale than heretofore; an important result has been substantial shipments of gold to the West with consequential benefits to the gold and dollar reserves of the Sterling Area and other western countries. Russian trade missions, including one for the purchase of bloodstock, have visited Britain since the beginning of the year, while a group of thirty British businessmen are at present visiting Moscow with the approval of the British Board of Trade. The Minister of State, Board of Trade,4 stated in the House of Commons on the 30th November that ‘the (British) Government believe that an increase in our trade in non-strategic goods both with the Soviet Bloc and China should be possible and we hope that that is what will happen’. The Continental countries have always been in favour of the highest possible level of trade between East and West (at least in non-strategic materials) and are reported to be displaying great interest in expanding markets within the Soviet bloc. Mr. Harold Stassen, Director of the Foreign Operations Administration, has twice indicated since the beginning of the year that the American government favours increased trade with Communist countries (other than China) in non-strategic items. The American Government’s view is that Western Europe’s recovery has reached a point when East/West trade can be economically as well as politically profitable; increased East/West trade can help to promote democratic ideas behind the Iron Curtain and contribute materially to lessening the tension of the ‘cold war’. This viewpoint has received support from the Randall Commission,5 whose report has just been published.
- The present practice in regard to the admission to Ireland of persons from countries of the Soviet bloc is as follows:-
- Official representatives of Communist Governments are not admitted in any circumstances.
- Commercial representatives who are known to have had commercial contacts with Irish firms and against whom there are no political objections are admitted freely.
- The following letter has been received by the Ambassador at London from the Anglo-Irish Bloodstock Agency, 16 Old Bond Street, London:-
‘Your Excellency,
I expect you may have read in the papers that a delegation has arrived in this country from Russia to purchase bloodstock.
We are acting as agents to the delegation.
They have enquired from us whether their entry to Ireland for the purpose of buying stallions would be acceptable, and I am now writing to you to find out whether they would be granted visas.
Naturally they would be accompanied by a member of this firm.
An early reply would be deeply appreciated, as we would have to make the necessary arrangements for conducting the tour in a very short time.
Yours sincerely,
Frank More O’Ferrall’.6 - Having regard to the general desirability of increasing exports wherever possible, the improving international climate in relation to East/West trade and the fact that the successful prosecution of commercial relations with Communist countries may necessitate dealings with Governmental agencies of those countries, the Minister for External Affairs now takes the view that such contacts between Irish officials and official representatives of Communist countries as may be necessary for the conclusion of individual transactions should henceforth be permitted. He considers that, if the circumstances should so require, official representatives of Communist countries should be permitted to enter Ireland for the purpose of individual commercial transactions. He would not, however, favour the conclusion of formal trade agreements with countries of the Soviet bloc.
- The Minister for External Affairs accordingly proposes that the Government approve:
- the adoption of the policy suggested in the preceding paragraph in relation to trade with Communist countries; and
- the admission into Ireland of the Russian delegation referred to in the letter quoted in paragraph 8.
- The Ministers for Agriculture, Finance, Justice and Industry and Commerce have been acquainted with the contents of this memorandum.