Mr. John Hurley:

The reference to that came in the context of the length of the guarantee. There was a discussion about periods, about ... and the cliff issue ... I think it was probably a substantive point in the determination of the two years. There was a feeling really that that would be an adequate period to get over some of the ... a year would've been too short ... six months, a year, too short, and it was felt that the ... it would give more space.

There was also a feeling at the time that international action and concerted action was being taken. Central banks were taking action. As I said in the course of my previous evidence, the nation-state mentality unfortunately was ... it was alive and well, it had got strong for a period and I think that ... that eventually I believed would change, because I had been involved in my young ... my younger life was all about preparations to join the Common Market and to ... the implications of that and the legislative implications of that. I ... that was my ... what I worked on as a younger civil servant. So it struck me that the Community view would resurrect itself after the crisis of the international markets subsided somewhat and so I was ... I felt very strongly that there was a very good chance that that period would work out and would be a good period because I felt Europe would ... would get its act together and the likelihood is that ... that ... you know, the cliff would be less in two years.