WHEN 14% = 17%

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On Saturday, 18 November 1967, sterling was devalued by 14% from $2.80 to $2.40. Although rumours of impending devaluation had been widespread in the press, including in Europe and the United States, the announcement by the Labour government headed by Harold Wilson administered a severe shock to international confidence and to domestic opinion in the UK.

So what had that to do with me?

Well, let me backtrack a little.

For years the College of Europe had held two places open for Irish students but they were not taken up for want of funding. Denis Corboy, who was the EEC Commission representative in Dublin had been trying for some time to get the Irish government to finance the two places, but without success. Suddenly in late 1967 the Department of Education discovered that it had enough funds left in its vote to finance two students at the College for the academic year 1967/8.

Now, this was a bit late in the day as College was to start within weeks, so Denis canvassed those of us who were just finishing up our MA in European Studies in UCD and I ended up going on my own.

I don't remember the exact mechanics of how the funding was paid over. I assume the College fees were paid up front but I know I was to get periodic payments from Dublin into an account in the Banque Lambert in the Markt in Brugge.

However, I was not long arrived at the College when it became clear that the British government was about to devalue the pound sterling to which the Irish pound was linked. This was an alarming prospect as it would mean that the portion of the grant not already paid over would be worth less in terms of Belgian francs and the money was already tight enough.

So I rang Denis and asked him to get the Department to pay over the rest of the money immediately so that its value would be protected. In retrospect I suppose that I was a bit naive to expect an instant response from a government department, particularly when it involved paying out more than the agreed periodic amount.

Anyway despite a follow up call on my part, nothing happened. The British devalued the pound by 14% and I was mad as hell and the poorer by that amount.

So I started a campaign to have the original Belgian franc value of my grant restored. This meant the department increasing the Irish pound value of the remainder of the grant by 17%. I must say that, despite my indignation, I didn't really hold out great hopes of success, but, to give Denis his due, he came through on that and all was well in the long run, at least from my end.

You will note that the devaluation was rumoured in advance and it was reported that many people made a killing on it at the time.

You can read about the devaluation here