In Search of the Promised Land
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There is a danger that, in the conditions of uncertainty that may prevail in the months ahead, the momentum that has been achieved in the preparations for entry to the EEC will be lost. Preoccupation with external events or with the short term discomforts of adjustment must not cause us to lose sight of our principal objective, namely, the reshaping of the economy to enable us to hold our place in a world that is moving towards freer trade and to maintain the rate of economic growth achieved in recent years.151
At a political level, Lemass responded primarily by devoting a parliamentary party meeting of Fianna Fáil in late January 1963 to the suspension of the application, where he dealt ‘at some length’ with the implications for the Government and the country following the effective withdrawal.152Some days later, he made an important speech to the Dáil in which he stressed his determination not to let any complacency slip back into the Irish industrial psyche:
The deadlock is, we hope, purely temporary … our desire is that a way will be found before long to enable all European countries which share the aims expressed in the Treaty of Rome to participate fully in a wider Community. The forces making for European unity which received such an impetus after the last World War, will, I feel sure, be strengthened as time goes on and must in the end prevail. The suspensions of the British negotiations should be viewed as a temporary setback and not as a final breach.153
He maintained that, while for the present it was not practicable or desirable for the Government to pursue its application, ‘this decision will not of itself make our position any worse than it has been for the last two years’.154He was of the opinion that the country had gained permanently from the measures taken to gear up the economy for greater competition, and maintained that these measures would have to be reinforced and accelerated. Ireland, he declared, had become a stronger economy due to the changes brought about since the late 1950s, and would have to strive to make the most rapid advances in the forthcoming years as this would increase its capacity to benefit from eventual participation in a wider EEC. In an important passage, he argued:
The promotion of industrial efficiency by reduction of protection is not being initiated because of free trade principles, but because in the circumstances now prevailing in the world it is recognised to be necessary for economic and social progress. To remain efficient in only parts of the economy, with limited capacity to expand exports, is to condemn ourselves to inert dependence on the British market in which we may expect a progressive hardening of competitive conditions for our products.155
This was an important point, in that Fianna Fáil could claim that there was no contradiction in its moving from protectionism to free trade as the latter could be framed in terms of the patriotic endeavour of doing what was best for the country. Lemass was setting the broad context within which this new economic policy, incorporated in the shift to Europe, was being situated. The social and political advancement of the nation, according to Lemass, could best be achieved by new methods that in themselves would secure the independence of the country, which, to some degree, had been threatened by the country’s economic malaise.156This volte-face was too much for some of the opposition. Dillon attacked Lemass in blistering fashion:
One must plead for some measure of indulgence if one experiences consternation in listening to the leader of the Fianna Fáil Party speaking for an hour and a quarter on the subject of free trade and the vital importance of the British market to the Irish economy. If he had advanced either thesis to any member of his party during the past 20 years, they would have gone as near to assassinating him as the law would allow, and I can assure him from my own position looking at the faces of his own backbenchers that it is a most stimulating experience. Whether it is the reaction to learning the truth or the discovery that they have been made fools of for so long I cannot quite delineate, but the general air of bewilderment that characterises them from the youngest to the most venerable is a stimulating experience for those of us on this side of the house … I am glad that the Taoiseach at least, and the Fianna Fáil Party, I assume, have woken up to the fact of the vital importance to this country of the British market but they really ought to go for 40 days into the desert, fast and pray to purge themselves of their past history.157
While this can be seen as part of the normal cut and thrust of politics, there was in Dillon’s castigation of Fianna Fáil a serious charge that it had to answer. Lemass’ argument in favour of membership of the EEC was theoretically an anti-nationalist policy rooted firmly in free trade. But he had to frame it in nationalist terms of serving the country.
EEC entry was part of a developmental strategy. Since 1958 and the production of Economic Development, the Government and a civil service – whose prime economic department had changed dramatically – were searching for new avenues along which to lead the country into the promised land of economic prosperity. While the immediate application was in a sense an emergency response to external changes over which the Government had no control, this merely speeded up an evolutionary process the Government had embarked on. The decision to look for full membership – something that would have been considered lunacy only ten years earlier – was an act of faith in the Irish economy and its constituent parts, the sectional interest groups.158In essence, there was no reluctance about the application. The decision to apply focused policy-makers’ attention on the need to restructure industry to meet the competitive challenge of Europe. Policy-makers had realised that Ireland could not develop as an autonomous economic unit if it wished to benefit from growth and trade expansion. The application finally confirmed the views of those within and outside the Government who had argued that in an uncertain economic world, it was better to be prepared for uncertainty by being aligned rather than by standing alone.
The collapse of the EEC negotiations in 1963 provided the Govern-ment with the motivation to move quickly to reduce tariffs and to prepare for a second application. Lemass’ goal was to transform the state into a modern entity – one able to confidently take its place amongst a community of Western European nations. He told a US audience that ‘although Ireland was an ancient nation, she is a young state. The limited size of the Irish market means of necessity that our growth target must be realised through export trade.’159As Whitaker told an OECD economic-policy-committee meeting: ‘We inhabited the cellar … Although the cellar proves to have been quite a respectable club, we were not happy there and wanted to break out into a more invigorating atmosphere.’160It might have been an invigorating atmosphere but it was also a rarefied one. In the context of moving out of the safety net of protectionism and a reliance on the British market, the decision to apply for membership of the EEC was the most important psychological decision taken by any Government since the foundation of the state.
1 NARA, RG59, box 3170, 740A/00 (W)/18–157, Dublin embassy to State Department, 18 Jan. 1957.
2 Meenan, The Irish Economy Since 1922, p. 81.
3 Maher, The Tortuous Path, p. 55.
4 Garret FitzGerald, ‘Ireland and the free trade area’, Studies, vol. xlv, no. 181 (spring 1957), p. 19.
5 NAI, DT, S.15281D, interim report of the committee of secretaries, 18 Jan. 1957.
6 Whitaker interview.
7 NAI, DT, S.15281D, interim report of the committee of secretaries, 18 Jan. 1957.
8 Ibid.
9 Ibid., Appendix from the Department of Industry and Commerce.
10 Girvin, Between Two Worlds, pp. 191–2; J.J. Lee, ‘Economic Development in historical perspective’ in McCarthy (ed.), Planning Ireland’s Future, p. 121.
11 Nagle interview.
12 NAI, DT, CAB G.C. 7/183, 8 Feb. 1957.
13 Quoted in Moynihan, Currency and Central Banking in Ireland, pp. 438–9.
14 Cromien interview.
15 Quoted in Maher, The Tortuous Path, p. 67.
16 NAI, DT, S 15281F, committee of secretaries, ninth meeting, comments of J.C.B. MacCarthy, 12 Mar. 1957.
17 NAI, DT, CAB
G.C. 8/5, European Free Trade Area, 9 Apr. 1957.
18 NAI, DT, S 15281G, Fay to secretary, Department of External Affairs, 15 Apr. 1957.
19 NAI, DT, S 15281J, memorandum of Government to OEEC Working Party 23, 11 May 1957.
20 NAI, DT, S 15281J, European Free Trade Area, 13 July 1957.
21 ‘Ireland and the European Free Trade Area’, The Statist, 11 Jan. 1958, p. 44.
22 Whitaker’s memorandum is quoted in Fanning, ‘The genesis of Economic Development’, p. 96.
23 NAI, DT S 15281J, memorandum of Government to OEEC Working Party 23, 11 May 1957.
24 Ibid.
25 Maher, The Tortuous Path, pp. 77–8.
26 NAI, DT, S.15281 F, Department of Agriculture policy with regard to the free trade area, 4 Apr. 1957.
27 NAI, DT, S.15281J, Working Party 23, consideration of the Irish case, 28 May 1957.
28 NAI, DT, S.15281I, MacCarthy to Fay, 6 June 1957.
29 NAI, DT, S.15281J, European Free Trade Area, 13 July 1957.
30 Extract from the budget speech of Minister for Finance, 8 May 1957. The speech can be found in Dáil Debates, vol. 161, cols. 933–62.
31 Ibid., col. 961.
32 Garvin, Preventing the Future, p. 118.
33 Ó Cearbhaill interview.
34 Dáil Debates, vol. 165, cols. 531–81, 20 Feb. 1958.
35 Barnes interview.
36 NAI, ICTU Archive, box 41 (part 1), 7331, ‘Fine Gael memorandum on EFTA’, 23 Jan. 1958. The memorandum was not intended to indicate official Fine Gael policy. It was prepared by a committee of experts on behalf of its research and information centre.
37 Ibid.
38 NAI, DT, S.15281N, discussions with British Government on implications for Anglo-Irish trading agreements, third meeting, 13 Nov. 1957.
39 NAI, DT, S.15281L, extract from Cabinet minutes, G.C. 8/55, 1 Nov. 1958.
40 NAI, DT, S.15281N, European Free Trade Area: visit of British paymaster general, Jan. 1958, 28 Dec. 1957. Maudling had specific responsibility for chairing the talks with the members of the EEC in relation to joining a free trade area with Britain.
41 Cahan’s lecture is reprinted as ‘Ireland’s role in a free trade area’, Studies, vol. xlvii, no. 186 (summer 1958), pp. 122–30.
42 Ibid.
43 Clarke is quoted in Richard Lamb, The Macmillan Years: The Emerging Truth (London, 1995), p. 113.
44 Economic Development (Dublin, 1958), p. 1.
45 NARA, record group 59 box 3170, 740A/00 (W)/8–659, Dublin embassy to State Department, 6 Aug. 1959.
46 Whitaker interview.
47 NAI, DT, S.15281R, report of the committee of secretaries, 8 July 1959.
48 NAI, DFA, 348/69/II, minutes of the Foreign Trade Committee, 12 June 1959.
49 NAI, DFA, 348/69/II, Department of Agriculture, external trade policies, Aug. 1960.
50 NAI, DT, S.15281V, Ireland’s position in relation to free trade in Britain, 13 Jan. 1960.
51 NAI, DT, S.15281X, memorandum for the Government, Anglo-Irish Trade Agreement, 13 Apr. 1960.
52 Ó Cearbhaill interview.
53 Whitaker interview.
54 NAI, DT, S.15281V, memorandum presented to the Taoiseach, 8 Feb. 1960.
55 Frank Barry, ‘Theoretical and pragmatic elements in the civil service debates on trade liberalisation’, paper to IPA conference in honour of T.K. Whitaker, ‘Economic Development 50 Years On’, Dublin Castle, 19 Sept. 2008. I am grateful to Professor Barry for providing me with a copy of his paper and for discussing this issue with me.
56 Ó Cearbhaill interview.
57 Desmond Fisher, ‘Ireland in Europe: Advantages of joining the EFTA’, The Statist, 19 Mar. 1960, p. 15.
58 Interview with Christopher Audland.
59 Fisher, ‘Ireland in Europe’, p. 16.
60 FitzGerald is quoted in the Irish Council of the European Movement newsletter, Mar. 1960.
61 Ibid.
62 Dáil Debates, vol. 189, col. 1297, 16 May 1961.
63 NAI, DFA, 348/69/II, statement by Irish representative at OEEC Council, 14 Jan. 1960.
64 Terence Brown, Ireland: A Social and Cultural History, 1922 to the Present (Ithaca, N.Y., 1985), p. 214.
65 Ó Cearbhaill interview.
66 NAI, DT, S.16877B, Cremin to St.J. Connolly, deputy secretary, Department of Industry and Commerce, 18 June 1960.
67 NAI, DT, S.15281R, discussions between the Tanaiste and Mr Maudling, London, 26 May 1959. Also S.15279B/1, Taoiseach’s statement on Irish policy, 12 July 1960.
68 NAI, DT, S.16877G, memorandum on Ireland’s trade relations: prospects for agricultural trade, 8 Nov. 1960; For Ireland’s reluctance to join GATT, see S.15030B-D.
69 Gary Murphy, ‘A wider perspective: Ireland’s view of Western Europe in the 1950s’ in Michael Kennedy and Joseph Skelly (eds), From Independence to Internationalism: Irish Foreign Policy, 1916–1966, pp. 247–64.
70 Whitaker interview.
71 Barnes interview, Joseph McCullough interview.
72 NAI, DT, 16877G, membership of (or association with) EEC, comments by Industry and Commerce, 19 Dec. 1960.
73 Ibid.
74 NAI, DT, S.16023C/61, Whitaker to Ó Nuailláin, 2 May 1961.
75 Brian Girvin, ‘Economic Development and the politics of EC entry, Ireland 1955–63’, paper presented at conference, ‘The First Attempt to Enlarge the European Community, 1961–63’, European University Institute, Florence, Feb. 1994, pp. 17–18.
76 Dermot Keogh, Ireland and Europe 1919–1989: A Diplomatic and Political History (Cork, 1990), pp. 232–3. The background to the decision to apply can be followed in NAI, DT, S.16877K, European Free Trade Area.
77 Economist, 9 Feb. 1962.
78 NARA, record group 59, Office of British Commonwealth and Northern European Affairs, alpha-numeric files relating to Ireland, box 1, Tyler to S/P – Mr McGhee, 11 Aug. 1961.
79 NAI, DT, S.16877X/62, Lemass to Ó Nuailláin, secretary, Department of the Taoiseach, 1 Jan. 1962.
80 Ronan Fanning, ‘Raison d’état and the evolution of Irish foreign policy’ in Kennedy and Skelly (eds), From Independence to Internationalism, p. 324.
81 Quoted in Ibid. p. 325.
82 NAI, DT, S.16877X/62, Lemass to Ó Nuailláin, secretary, Department of the Taoiseach, 1 Jan. 1962.
83 Dermot Keogh, ‘Irish neutrality and the first application for membership of the EEC’ in Kennedy and Skelly (eds), From Independence to Internationalism, pp. 272–3.
84 NAI, DT, S.16877X/62, Biggar to Sheila Murphy, Department of External Affairs, 30 Dec. 1961.
85 NAI, DT, 16877G, membership of (or association with) EEC, comments by Industry and Commerce, 19 Dec. 1960.
86 NAI, DT, S.16877X/62, Biggar to Murphy, Department of External Affairs, 30 Dec. 1961.
87 NAI, DT, S.16877X/62, Ó Nuailláin to Whitaker, 4 Jan. 1962.
88 NAI, DT, S.16877X/62, draft statement to ministers of the Governments of the member states of the European Economic Community revised, 1 Jan. 1962.
89 Girvin, ‘Economic Development and the politics of EC entry’, p. 14.
90 NAI, DT, S.16877X/62, McCann to Cremin, 7 Feb. 1962.
91 Whitaker interview.
92 NAI, DT, S.16877X/62, Whitaker to Minister for Finance, 5 Jan. 1962.
93 It is interesting to note that the files on the application to the EEC in the National Archives (S.17246A/62 to W/62) reveal that Lemass’ handwritten accounts were effectively the line followed.
94 NAI, DT, S.16877X/62, Whitaker to Minister for Finance, 5 Jan. 1962.
95 Moran’s speech can be found in NAI, DT, S.17246A/62.
96 See Horgan, Seán Lemass, p. 223; Keogh, ‘Irish neutrality and the first application for membership of the EEC’, p. 277.
97 Fianna Fáil parliamentary-party minutes, FF441/B, 14 Feb. 1962.
98 NARA RG59, box 1651, 740a.00/2–962, Dublin embassy to State Department, 9 Feb. 1962.
99 NAI, DT, S. 17246D/62, meeting of s
ecretaries, 1 Mar. 1962.
100 NAI, DT, S.16877Y/62, Biggar to Cremin, 9 Jan. 1962.
101 NAI, DT, S.17246D/62, transcript of interview with Taoiseach on Telefís Éireann’, 15 Mar. 1962.
102 NAI, DT, S.16877X/62, draft statement to ministers of the Governments of the member states of the European Economic Community revised, 1 Jan. 1962.
103 Horgan, Noël Browne, p. 209.
104 UCDA, Fine Gael papers, P39/GE102, Cosgrave speech at Dalkey, 2 Oct. 1961.
105 Puirséil, Irish Labour Party, p. 221.
106 Ibid., pp. 218–21 for a further elucidation of this view.
107 Economist, 9 Feb. 1962.