One issue which may have created tensions between a government made up of [[Irish Republicanism|Republicans]] and [[Irish Free State|Free Staters]] was the country's relationship with [[Britain]]. However, no problems arose. During the campaign [[Clann na Poblachta]] had promised to repeal the [[External Relations Act]] of [[1936]], but didn't make an issue of this when the government was being formed. However, Costello and his [[Tánaiste]], [[William Norton]] of the the [[Irish Labour Party|Labour Party]], also disliked the Act. During the summer of [[1948]] the Cabinet discussed repealing the Act however no firm decision had beenwas made.
In September [[1948]] Costello was on an official visit to [[Canada]] when a reporter asked him about the possibility of leaving the [[British Commonwealth]]. Costello seemed angry by the question and immediately declared publicly that the government was indeed going to repeal the Act and decaledeclare a [[republic]]. The news took the [[British Government]], and even some of Costello's ministers, by surprise. The former had not been consulted, however, they did not want to lose face and so issued the [[Ireland Act]]. This guaranteed the position of [[Northern Ireland]] within the [[United Kingdom]] while at the same time granting certain concessions to the new republic. Finally on [[Monday]] [[April 18]], [[1949]] the twenty-six county [[Irish Free State]] left the Commonwealth and became the [[Republic of Ireland]]. While the last fewconstitutional links to [[Britain]] had finally been cut and there was a psychological change, in reality little had changed. From now on [[Partition of Ireland|partition]] was seen as the only obstacle to uniting[[United Ireland,|uniting North and SouthIreland]].
