The New York herald., 1921-07-15
VALERA TO ACCEPT
OFFER, IRISH BELIEF
Lloyd George Expected to Go
Limit After Refusing to
Grant Republic.
FINANCE is BIG PROBLEM
Fiscal Policy Must Be Broad
ened to Meet Sim Fein OF
Break Would Be Likely.
BIZ the Associated Press.


DUBLIN, July 14.-The great majority
of the irish people appear to entertain
no doubt that at the informal confer
ences in London, Eamonn de Valera will
assert Ireland's claim to a republic.
based upon the peoples decision at the
elections. When the British Prime Min
ister Lloyd George. as Is expected
here, replies that republic never will
be granted. it Is predicted he will follow
this reply with an offer of the most that
can be conceded.
Everything. 1t is considered here, de-
pends upon the nature of that offer. If
1t Is big enough there will be formal
conferences to settle the details. The
impression gathered by conversations in
responsible Irish quarters here is that
Mr.. de Valera will be able to accept
what he will be offered. He will keep
in touch with Irish opinion and. though
il is believed he will maintain the re-
publican principle he Is expected to
leave to the Irish people the determina-
ton as to whether the warfare shall be
carried on or settlement accepted.
Finance Crucial Question.
The crux of the situation as it is
viewed here Is finance. The Irish virtu-
ally are unanimous that no system can
be called self-government that withholds
from Ireland control of its own money
to collect, spend and to impose taxation
as it pleases. Under the Home Rule act
this is done by British authority, the
Imperial Treasury refunding to Ireland
the sums collected minus s1S,000.000 a
year. Ireland's contribution TO imperial
purposes and the cost of the reserve
services.
The intention was to maintain one
fiscal policy for the United Kingdom and
to prevent differentiation between taxa
ton in Ireland and Great Britain; for
example, British manufacturers do not
want to compete with Irish manufac-
turers whose income tax would be possi-
bly, one-third that of the British. The
concession of fiscal independence as
complete as in the case of the Domin-
ions would be a great advance on any
previous offer to any Irish leader, and
many express the opinion that Mr.. de
Valera may consider II he gets that, the
rest of the problem may be left to settle
itself
Even so the important question would
remain If any contribution could be
claimed from Ireland toward the cost
of war. The army, navy and other mn
perial services, and the amount of such
contributions. The Doninions do not
make contributions of this sort and Ire
lands claim 20 similar exemption
would be pressed.
Ulster Issue Involved.
The Ulster question Is linked up
with that of finance and might,
it Is thought in some quarters, be
eventually settled through it. Three
forms of financial autonomy have been
suggested: The first to be given Ireland
as a unit. exercisable through a joint
Irish Parliament connecting the North
ern and Southern Parliaments the
second to be given both Parliaments and
exercisable separately, enabling fiscal
policies applicable. If thought At. against
each other the third to be given the
Southern Parliament alone. leaving the
Northern Parliament within the British
fiscal system.
OF these alternatives, the Sim Fein. it
is asserted. would prefer the first. and
might even find the third tolerable. On
the other hand, the Northern Parliament.
it is conceded would certainly prefer the
second. and the question is. as southern
Ireland views il, whether listers in
fuence on British politics remains suffi-
GENTLY strong to get its wishes. even at
the cost of rupturing the negotiations.
There is declared to be no disposition
on the part of the Sim Fein to dimin-
ish the local autonomy granted the six
counties of northern Ireland under the
Home Rule Act. and it is believed here
it would be easy to devise a system for
greatly increasing the local powers of
those counties while preserving the
unity of Ireland.
Unless Mr.. Lloyd Georges financial
terms differ widely from any previously
contemplated. it is predicted in well
informed quarters here that the nego-
tions probably will break down.