Anglo-Irish Trade War - Resolution

Resolution

Finally, the resolution of the crisis came after a series of talks in London between the British Prime Minister Neville Chamberlain and de Valera, who was accompanied by Lemass and James Ryan. An agreement to reach an acceptable settlement was drawn up in 1938. Under the terms of the three year Anglo-Irish Trade Agreement all duties imposed during the previous five years were lifted. Although the period of the Economic War resulted in severe social suffering and heavy financial loss for Ireland, its outcome was publicised as favourable. Ireland was still entitled to impose tariffs on British imports to protect new Irish industries. The treaty also settled the land annuities question by a one-off payment to Britain of £10m., a compromise representing 40 years' payments paid up front, instead of being paid annually over the next 47 years. It also included the return to Ireland of the Treaty Ports which had been retained by Britain under a provision of the 1921 Treaty. With the outbreak of World War II in 1939 the return of the ports allowed Ireland to remain neutral.