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THE IRISH FREE STATE.

Silver Currency in.

(Previous

Reference: Cabinet 30 (28). Con- clusion 11.)

14. The Cabinet had before them a Memorandum by the Chancellor of the Exchequer (Paper C.P.-264 (28)) covering a Memorandum prepared in the Treasury in regard to British silver coin in the Irish Free State, in which Mr Churchill raised the question as to whether he should proceed with the negotiations on the basis that unless a satisfactory compromise is reached with Mr Cosgrave the necessary legisla- tion would be passed to prevent the dumping in this country of British silver currency rende red surplus by the new Irish currency.

The Secretary of State for Dominion Affairs

asked that he should be kept in touch with all

developments of this question.

The Cabinet agreed

That the Chancellor of the Exchequer should be authorised to proceed with the negotiations with Mr Cosgrave on the basis that unless a satisfac- tory compromise is reached the necessary legislation would be passed to prevent the dumping in. this country of British silver currency rendered surplus by the new Irish currency, and took note that the Chancellor of the Exchequer would circulate a draft of his next communication with Mr Cosgrave on the subject before sending it.

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