Economic Civil War

Economic Civil War

The quarrel of His Majesty's Government in the Irish Free State with His Majesty's Government in Great Britain passed from ominous threats to ominous action last week. At 6 p. m. the King-Emperor gave royal assent to a bill passed by his Lords & Commons empowering the MacDonald Government to levy an import tax up to 100% on Free State products entering Great Britain. One hour later the Government, acting with wrathful zeal (because President Eamon de Valera had said "They're only bluffing!"), issued an order in council placing a 20% tax on virtually all Free State imports.

Promptly in Dublin the Free State Cabinet began drafting retaliatory taxes on goods from Great Britain, of which the Free State buys somewhat more than the Mother Country buys from her. The situation thus drifted toward a state of economic civil war.

Causes of the conflict were President de Valera's attempt to abolish the Free State Dail's oath of fealty to George V (an attempt thus far blocked by the Free State Senate) and secondly Mr. de Valera's nonpayment of the so-called "Irish annuities" -- sums which the pre ious Free State Government of President William Thomas Cosgrave paid to compensate absentee landlords living in Britain for their former Irish estates. From the first President de Valera offered to arbitrate this issue before a tribunal not exclusively composed of the King's subjects, and from the first His Majesty's Government in Great Britain refused such arbitration (TIME, June 27).

British and Irish opinion was further provoked last week by a tempest in the teapot of Irish Free State Governor Gen eral James McNeill, appointed by George V but obliged to act on the Free State Cabinet's advice. Similarly His Majesty is obliged to act upon the British Cabinet's advice, would never think of doing otherwise. But last week Governor Gen eral James McNeill flatly disregarded the advice of the Free State Cabinet that he keep to himself certain complaints which he desired to make.

In a rage the Governor General re leased to the Press statements that he has been "discourteously treated" ever since the de Valera Cabinet came in. Defying Mr. de Valera personally, the Governor General wrote to the President, "I know you have a majority in the Dail, aid I know that you can have me removed. ... I do not think I should resign my office because other officeholders think I am a suitable target for ill-conditioned bad manners."

The "other officeholders" are two members of the de Valera Cabinet who made the Governor General their "target" by leaving a dance at the French Legation in Dublin directly he appeared. This insult, according to virtually the entire Press of Great Britain last week, was intolerable. The Governor General was lauded for disregarding President de Valera's official and mandatory advice that he keep his wounded feelings to himself. Mr. de Valera assured His Excellency that if he will give timely notice of his public movements to the Free State Cabinet in the future, "no more such incidents will occur." Under the Official Secrets Act, the President kept the Governor General's complaints out of the Free State press for a few hours, then released them.

Doing No Wrong? "If England wants a fight, England can have a fight!" cried de Valera Deputy Corey in the Dail. "Ireland is no longer going to be the kitchen garden of England!"

Previously President de Valera, by no means spoiling for a fight, had exclaimed, "I appeal once more to the British, asking them to state unequivocally that the people of Ireland would not be interfered with by hostile British action should they declare their independence!"*

Independent Deputy MacDermott: Does the President mean war?

President de Valera: I mean the kind of action one person takes against another when one feels that the other has done him wrong. I hold that we should be doing no wrong to Great Britain by declaring our absolute independence tomorrow!

Of course the Free State did not declare its independence next day. Instead President de Valera consented to meet Prime Minister MacDonald again face to face, traveling for this purpose to London last week, as he did last month before Scot MacDonald left for Lausanne (TIME, June 20). Again they flatly disagreed, an event which so upset old George Lansbury, leader of the Labor Opposition in the House of Commons, that he cried: "I call upon the Pope and the Archbishop of Canterbury to intervene! . . . We have started a fight with Ireland the end of which no man can see."

Hurrying back to Dublin, President de Valera was rousingly cheered. Dublin's Republican newspaper An Phoblacht cried: "We are the one country in Western Europe that can face temporary isolation with enthusiasm! We have ample source of food and other essentials." Next morning Dublin awoke to find buildings, billboards and even lamp posts plastered with: BOYCOTT BRITISH GOODS.

Dublin officials pointed out that the Free State can easily obtain from the U. S., France, Germany and Belgium the manufactured goods she has previously bought from Great Britain. "That would realize," said President de Valera, "another ideal: direct, economic touch with other nations. In times of shrinking foreign markets ours is not a trifle."

Pointing out that Great Britain expects to be paid in "land annuities" nearly one-quarter of the tax revenue of the Free State, Mr. de Valera exclaimed: "Britain finds the -L-37.000,000 due the United States [yearly] almost unbearable. What appeal would she not make to the world if she had to transmit abroad a fourth of her tax revenue as we have had to do! ... If she paid the United States proportionately as much as she expects us to pay, she would pay the United States -L-330,000,000."

For good measure last week, despite the fact that the Irish Senate had blocked the. Bail's bill to abolish the oath of fealty, Finance Minister Sean MacEntee declared at Dublin: "The oath is as dead as Queen Anne!* It will never be taken again."

Two courses are possible. Either after a lapse of 18 months the bill will automatically become law, despite the Senate opposition, or President de Valera can advise Governor General James McNeill to dissolve the Senate at once and declare a general election. In Dublin it had been currently said that, "McNeill and de Valera aren't on speaking terms," but last week the President called on the Governor General, presumably spoke and was spoken to.

*The right to declare independence is implicit in "Dominion status" which the Free State has.

*"Traditionally the deadest of all sovereigns, just as a doorknob is the deadest of inanimate objects.

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