Sugar beet factory in Carlow. Ending the Economic War
The Economic War had taken a substantial toll on Irish farming, particularly on smaller farmers. Farmers did receive some relief, with a 50% reduction in the cost of their land annuity payments, but because of the trade dispute they found themselves with a surplus of cattle that they were unable to sell. It was not until 1935 that the agricultural sector began to recover. In late 1934 talks began between Irish and British officials about ending the severity of the trade war. This led to the Coal– Cattle Pact in January 1935. Under the terms of the pact, the British agreed to increase the number of cattle they would import, and in return the Irish agreed to import only British coal.
By 1938 both the British and Irish were eager to bring the Economic War to a close. De Valera had realised that Irish self-sufficiency was unachievable and that trade relations with Britain were a vital element of Ireland’s economy. The British Prime Minister, Neville Chamberlain, was also in favour of ending the dispute. Ireland was the United Kingdom’s fifth-largest trading partner and he was under pressure from British industries to end the conflict. Furthermore, Chamberlain was also aware that tensions in Europe could possibly lead to a conflict with Germany in the near future, and he did not wish to have further conflict with Ireland at the same time. Chamberlain hoped, too, that if a satisfactory agreement was reached, it might secure Irish support for Britain in a future European war.
Cattle fair in the 1930s. THE PURSUIT OF SOVEREIGNTY AND THE IMPACT OF PARTITION, 1912–1949 197
