In accordance with previous agreements, the law: Britain ceded the contract ports in 1938 on the basis of a false assumption that their technological advances would stop German submarines, believed Seén Lemass. The trade agreement was presented as beneficial to the newly created Irish state, given that the remaining responsibility for land pensions under a 1925 agreement was $11.75 million (in annual repayments of $250,000 over 60 years). The seemingly favourable saving of $1,175,000 was much on the Irish side, but more than what the British would have gradually lost in 47 years if the value was easy on the basis of the present value of the money. It was convenient for both parties to close the case. « Land pensions » have caused most of the disputes in the UK. The Annuties were money lent by the British government to Irish farmers before the Government of Ireland Act 1921 and repaid by farmers. Part of the Anglo-Irish treaty was for the government of the free state to recover this debt and return the money to Britain. Britain was so angry with the Irish that they kept the money, that they imposed a 20% tariff on trade with the Free State. The Irish found that they could no longer sell their beef to Great Britain or Northern Ireland, so they returned the favour with an inch in the opposite direction. This prevented Britain from selling coal to Ireland. However, Britain was not as dependent on Ireland as Ireland on the United Kingdom, which seriously paralyzed the Irish economy. After five years, in 1938, the two countries signed an agreement to end the trade war.
Under this scheme, the Free State of the United Kingdom gave 10,000,000 to pay pensions and, in exchange, Britian withdrew from its naval bases in Ireland. Adolf Hitler came to power in Germany in 1933 and since then British relations with Germany had deteriorated. Therefore, the withdrawal of naval bases was a difficult decision for Great Britain, considering that a war was increasingly possible. The law came into force on May 19, 1938 on the basis of a cash contract.  One of the effects of the law was whether Irish citizens were still British subjects. Legal arguments were put forward for that, when the Irish constitution made Ireland an independent sovereign state, the adoption of the law recognizing one of the constitutional names of the Irish state also recognized its sovereignty. These arguments were put forward in the Murray v Parkes case in 1942.  The Eire (Confirmation of Agreements) Act 1938 [Note 1] was an Act of the British Parliament passed on 17 May 1938.  This was the British enforcement measure of the 1938 Anglo-Irish Agreements, signed on 25 April 1938 in London by the governments of Ireland and the United Kingdom.