611.41D31/53
The Minister in Ireland ( Cudahy ) to the Secretary of State
[Received February 18.]
Sir: With reference to the Department’s telegram No. 2, January 20, 7 p.m., I have the honor to report that yesterday I called on Prime Minister de Valera and advised him that in view of overtures for a trade agreement between the United States and Ireland, the [Page 187] Government of the United States would be willing to enter into exploratory conversations on this subject if the Government of Ireland was agreeable thereto.
In the discussion which followed, I pointed out that all trade agreements were made by my government subject to the unconditional most-favored-nation treatment and that this provision would be applicable to any trade treaty made between the United States and Ireland. The Prime Minister pointed out that the trade balances between Ireland and the United States indicated adverse figures for Ireland in the ratio of approximately 11 to 1, but I told him this was more than offset by the invisible items comprised within the balance of payments between the two countries and I was convinced that an investigation would show that the total of these very strongly favor Ireland.
The Prime Minister said that the matter was a subject for the experts and that he was eager for me to enter into discussions with Mr. Sean Murphy, Assistant Permanent Secretary to the Department of External Affairs, who was conversant with the subject in its preliminary stage and who in turn would refer matters of detail to competent experts.
Respectfully yours,