The De Valera Government launched a tariff war against Britain. The issue chosen was that of the annuities paid by the Dubfin Government and the struggle itself redefined the relationship between British and Irish capital. First of all, Irish industry grew steadily more healthy behind the tariff walls. Secondly, the trade war and the Free State's neutrality in the 1939-45 war gave Irish capital more room to manoeuvre as the amount of British finance decreased.
The Republic of Ireland Act marked a new turn in the British attitude. Their main priority was no longer direct ownership backed by heavy financing, but the integration of the currency of both countries along with free trade. Control was now to come in une even more indirect form of investment, that needed the co-operation of Dublin, and via Britain's continued position as the major market for Irish agricultural DrOOUCE The changed relationship of Irish to British capital and the world food shortages of the early 1950s stimulated both Irish agriculture and irish industry. It was these factors which laid the basis for the 'economic miracle promoted by the Fianna Fail Government of Sean Lemass in une sous ane ous.
Certainly during this period both nousinal growin and waces davanceo in the South - so much so, indeed, that by egy of increased economic integration into ontain and curope was seen as possible oy une industrial interests in tne South. This development was welcomed by Britain. A series of economic agreements were sionee, ano westmnsIc! arount its innuence to bear on stor mont to include the six counties in the The struggle in the North can only be fully understood in the context of imperialist strategy in Ireland as a whole. Last week we looked at the circumstances which brought De Valera's Fianna Fail party to power in the 1930s. This week we show how the Southern bourgeoisie was able to change no more than the form of its captive relationship to imperialism.
growing economic cooperation.
This project very quickly foundered The most obvious and dramatic reason was ine exposion it touchee orne six counties. nere were orners noweve and they are significant. The fact of the matter is that for all the grandiose plans advanced by Fianna Fail, Irish industry has never grown up. miracie uterauv naa to oe nanced oy foreign capital.
Ot ine caoital tor tinancino incustria projects in the Free State in the 19601972 period, only 24 per cent came from Ireland itself, and included in this figure were a substantial number of joint projects involving both Irish and foreign capital. The British contribution amounted to 19 per cent of the whole, and the American share was 31 per cent. This meant that the contraction in tinancing after 1970 and the growth of world-wide As a consequence, the old fundamental features of the Irish economy reasserted themselves. Wage levels started to stagnate, ano une social Deransation inar nan started in the -ree state in ine yous slowed to a halt.
In the present circumstances, even ********************************** dust De Valera (right) with subsequent Fianna Fail leader Jack Lynch simple reforms like equal pay for women (in the Free State the average wage of men in manufacturing industry is £44 and that of women E23) have had to be shelved. This in itself has provoked a new rise ooin in workers strucies tun til recently ireland continually topped the poll of working days lost through The 'economic strikes) and - just as the tentative libFeral moves in the North sparked off the civil rights movement - a series of confrontations over social issues. The growin or a women siberation move ment in the Free state is one or the most significant expressions of this proCOSS TASMANTA * FRETILIN