Economic War

Economic War, a six‐year Anglo‐Irish dispute involving economic, constitutional, financial, and defence questions. The dispute began in 1932 when de Valera abolished the oath of allegiance and refused to pay the land annuities. The British government imposed special duties on Irish imports, principally cattle and dairy produce. The Irish government retaliated with emergency duties on British coal, machinery, and iron and steel goods. Both sets of duties inflicted considerable damage on Anglo‐Irish trade.

From 1933 to 1935 de Valera passed further controversial amendments to the constitution. In 1934 the trade war was ameliorated by the first of three coal–cattle pacts. Malcolm MacDonald, appointed British dominions secretary in 1935, established friendly relations with de Valera and pushed the British cabinet towards negotiations. For most of 1936–7, de Valera's new constitution was the focus of attention. Its completion, and the decision that its terms did not after all change Ireland's position within the Commonwealth, clarified the constitutional issues that had underlain the economic dispute. Neville Chamberlain, prime minister from May 1937, gave added backing to MacDonald's efforts to secure a settlement. Negotiations began in January 1938 and ended three months later with the Anglo‐Irish agreements.

Deirdre McMahon