(c) crown copyright
Catalogue Reference:CAB/128/53/14
Image Reference:0001
m
Q
C M ( 7 3 ) 53rd
Conclusions
\
COPY NO
9
0 6
CABINET
C O N C L U S I O N S of a M e e t i n g of the Cabinet
h e l d at 10 Downing S t r e e t on
T H U R S D A Y 8 N O V E M B E R 1973
at 10. 00 a m
PRESENT
T h e R t Hon E d w a r d Heath M P
P r i m e Minister
The R t Hon S i r A l e c D o u g l a s - H o m e
S e c r e t a r y of State f o r F o r e i g n and
Commonwealth A f f a i r s
MP
T h e R t Hon L o r d H a i l s h a m of St M a r y l e b o n e
Lord Chancellor
The R t Hon Anthony B a r b e r M P
C h a n c e l l o r of the E x c h e q u e r
T h e R t Hon W i l l i a m W h i t e l a w M P
S e c r e t a r y of State f o r N o r t h e r n I r e l a n d
The R t Hon L o r d C a r r i n g t o n
S e c r e t a r y of State f o r D e f e n c e
T h e R t Hon R o b e r t C a r r M P
S e c r e t a r y of State f o r the H o m e
Department
The R t Hon J a m e s P r i o r M P
L o r d P r e s i d e n t of the C o u n c i l
T h e R t Hon S i r K e i t h J o s e p h M P
S e c r e t a r y of State f o r S o c i a l S e r v i c e s
The R t Hon G e o f f r e y Rippon QC M P
S e c r e t a r y of State f o r the E n v i r o n m e n t
T h e R t Hon M a r g a r e t T h a t c h e r M P
S e c r e t a r y of State f o r Education and
Science
T h e R t Hon G o r d o n C a m p b e l l M P
S e c r e t a r y of State f o r Scotland
T h e R t Hon P e t e r W a l k e r M P
S e c r e t a r y of State f o r T r a d e and Industry
T h e R t Hon John D a v i e s M P
C h a n c e l l o r of the Duchy of L a n c a s t e r
T h e R t Hon P e t e r T h o m a s QC M P
S e c r e t a r y of State f o r W a l e s
The R t Hon M a u r i c e M a c m i l l a n M P
S e c r e t a r y of State f o r E m p l o y m e n t
T h e R t Hon Joseph G o d b e r M P
M i n i s t e r of A g r i c u l t u r e , F i s h e r i e s
and F o o d
The R t Hon S i r G e o f f r e y H o w e Q C M P
M i n i s t e r f o r T r a d e and C o n s u m e r A f f a i r s
T h e R t Hon L o r d W i n d l e s h a m
L o r d P r i v y Seal
ALSO PRESENT
The R t Hon Francis P y m M P
Parliamentary Secretary, Treasury
SECRETARIAT
S i r John Hunt
Mr
Mr
Mr
Mr
Mr
Mr
P D Nairne
H F T Smith
P Benner
I T Lawman
H F Ellis -Rees
D Evans
( I t e m s 2, 3 and 4 )
( I t e m s 1, 2 and 3)
$Item I)
( I t e m 5)
( I t e m s 2 and 4 )
(Item 4)
C O N T E N T S
Item
Subject
1.
P A R L I A M E N T A R Y A F F A I R S
2.
FOREIGN AFFAIRS Page
1
Middle East
1
Iceland
1
3.
N O R T H E R N I R E L A N D
2
4.
E U R O P E A N C O M M U N I T Y A F F A I R S
3
5.
INDUSTRIAL AFFAIRS Firemen's Pay
4
P u b l i c S e r v i c e s i n London
6
The Coal Industry
6
E l e c t r i c a l Supply Industry
7
T h e M o t o r Industry
7
PARLIAMENTARY
AFFAIRS
1.
T h e C a b i n e t w e r e i n f o r m e d of the b u s i n e s s to b e taken
i n the House of C o m m o n s during the f o l l o w i n g w e e k .
FOSUSJGN
AFFAIRS
2.
T h e Cabinet r e s u m e d their c o n s i d e r a t i o n of the l a t e s t
d e v e l o p m e n t s in the M i d d l e E a s t .
T h e i r d i s c u s s i o n and the
conclusions r e a c h e d a r e r e c o r d e d s e p a r a t e l y .
Middle East
Previous
Reference:
C M ( 7 3 ) 52nd
Conclusions,
Minute 3
Iceland
Previous
Reference:
C M ( 7 3 ) 50th
Conclusions,
Minute 3
T H E F O R E I G N A N D C O M M O N W E A L T H S E C R E T A R Y said that
the p r o s p e c t s of r e a c h i n g an a g r e e m e n t w h i c h would end the
f i s h e r i e s dispute w e r e f a v o u r a b l e .
One p r o b l e m r e m a i n e d ,
n a m e l y t o r e a c h a g r e e m e n t on our r i g h t to a m e n d the l i s t of
t r a w l e r s which would f i s h off I c e l a n d , so that r e p l a c e m e n t s
m i g h t be i n s e r t e d for t r a w l e r s which f o r one r e a s o n o r another
had to be r e m o v e d f r o m the l i s t .
This matter might have to be
c o v e r e d i n a s e p a r a t e and p r o b a b l y unpublished exchange of
notes.
T h e attitude of the C o m m u n i s t m e m b e r s of the I c e l a n d i c
G o v e r n m e n t , and of t h e i r P a r t y , should b e c o m e known that day.
If they d e c i d e d t o oppose the a g r e e m e n t this m i g h t have i m p l i c a ­
tions f o r the I c e l a n d i c G o v e r n m e n t s s u r v i v a l i n i t s p r e s e n t f o r m .
The Cabinet
T o o k note of the statement b y the F o r e i g n and
Commonwealth Secretary.
3.
THE S E C R E T A R Y OF S T A T E FOR N O R T H E R N I R E L A N D
s a i d that the m o s t r e c e n t talks w h i c h he had h e l d w i t h the
r e p r e s e n t a t i v e s of the Unionist P a r t y , the S o c i a l D e m o c r a t i c and
L a b o u r P a r t y ( S D L P ) and the A l l i a n c e P a r t y , had gone r e a s o n a b l y
well.
T h e t h r e e P a r t i e s had a g r e e d i n p r i n c i p l e that t h e r e
should be a C o u n c i l of I r e l a n d and t h e r e w a s a m e a s u r e of a g r e e ­
m e n t on how the C o u n c i l should w o r k .
E a c h P a r t y had put f o r w a r d
a number of p r o p o s a l s in c o n n e c t i o n w i t h the p r o p o s e d C o u n c i l ,
and they w e r e now e x a m i n i n g t h e s e p r o p o s a l s .
It might prove
n e c e s s a r y to p e r s u a d e M r F a u l k n e r and his s u p p o r t e r s in the
Unionist P a r t y that t h e r e should be a C o n s u l t a t i v e A s s e m b l y
a s s o c i a t e d with the C o u n c i l .
T h e Unionist P a r t y and the S D L P
w e r e s t i l l in d i s a g r e e m e n t on the question w h e t h e r a t r i p a r t i t e
c o n f e r e n c e , including the I r i s h G o v e r n m e n t , should p r e c e d e o r
f o l l o w the f o r m a t i o n of an E x e c u t i v e , and he w a s g i v i n g further
c o n s i d e r a t i o n to the p o s s i b i l i t y of b r e a k i n g this d e a d l o c k b y
a r r a n g i n g an i n f o r m a l exchange of v i e w s in w h i c h the I r i s h
G o v e r n m e n t would p a r t i c i p a t e .
H e e x p e c t e d d i f f i c u l t i e s when the
t a l k s w e r e r e s u m e d i n the f o l l o w i n g w e e k s i n c e they would then
h a v e to d i s c u s s the number of p l a c e s on the E x e c u t i v e to be f i l l e d
b y each of the t h r e e P a r t i e s .
L a t e r i n the day he woulct be
m e e t i n g the I r i s h M i n i s t e r f o r E x t e r n a l A f f a i r s , D r F i t s p s s r a k L
and he would t r y to m a k e D r FifcjGarfeM. wsd&rgt&jad Shat
M r FauLkner had l i t t l e r o o m f o r m a k i n g further c o n c e s s i o n s to
the demands of the S D L P .
T h e Cabinet T o o k note of the s t a t e m e n t b y the S e c r e t a r y of
State for N o r t h e r n I r e l a n d .
2
4.
THE C H A N C E L L O R OF THE DUCHY O F L A N C A S T E R
said that although the m e e t i n g s of the Council o f M i n i s t e r s
on 5 and 6 N o v e m b e r had b e e n dominated by the M i d d l e E a s t
question the C o u n c i l had b e e n a b l e to consider o t h e r n o r m a l
business.
The Development Co-operation M i n i s t e r s meeting
on 5 N o v e m b e r had d i s c u s s e d C o m m u n i t y p o l i c y t o w a r d s
d e v e l o p m e n t a i d but had f a i l e d to r e a c h a g r e e m e n t .
The
Council of F o r e i g n M i n i s t e r s m e e t i n g on 6 N o v e m b e r had d i s c u s s
the g e n e r a l i s e d s y s t e m of p r e f e r e n c e s ( G S P ) f o r the C o m m u n i t y
t o apply i n 1974.
A g r e e m e n t had been r e a c h e d on a p a c k a g e of
i t e m s which w a s b r o a d l y s a t i s f a c t o r y to us subject to further
d i s c u s s i o n at o f f i c i a l l e v e l o f the d e t a i l e d a r r a n g e m e n t s on food
stuffs.
T h e r e w a s a l s o d i s c u s s i o n of a C o m m u n i t y o f f e r of
c o n c e s s i o n s f o r n e g o t i a t i o n s under A r t i c l e X X I V ( 6 ) of the G A T T .
Although t h e r e w a s not f i n a l a g r e e m e n t on the content of the
o f f e r a p o s i t i o n w a s r e a c h e d which was tenable in t e r m s of the
C o m m u n i t y ' s r e l a t i o n s w i t h the USA.
The Cabinet T o o k note with a p p r o v a l of the s t a t e m e n t b y the
C h a n c e l l o r of the Duchy of L a n c a s t e r .
3
5.
T H E C H A N C E L L O R O F T H E E X C H E Q U E R said that the
M i n i s t e r i a l C o m m i t t e e on C o u n t e r - I n f l a t i o n a r y M e a s u r e s had
that m o r n i n g c o n s i d e r e d the new national a g r e e m e n t on the pay
and hours of f i r e m e n r e a c h e d at a m e e t i n g of the N a t i o n a l Joint
C o u n c i l ( N J C ) f o r L o c a l A u t h o r i t i e s ' F i r e B r i g a d e s on 2 N o v e m b e r .
T h e r e w e r e t w o m a i n a s p e c t s of the a g r e e m e n t .
T h e f i r s t w a s an
i m m e d i a t e pay i n c r e a s e w h i c h would g i v e f i r e m e n up to an
a d d i t i o n a l &8 a w e e k , or about 18 p e r c e n t .
It would be f o r the
P a y B o a r d t o d e c i d e w h e t h e r the p r o p o s e d i n c r e a s e w a s w i t h i n the
t e r m s of the Stage 3 P a y C o d e .
The second involved a reduction
i n the w o r k i n g w e e k of f i r e m e n f r o m 56 hours to 48 hours f r o m
11 N o v e m b e r 1974, without l o s s of e a r n i n g s , but I n r e t u r n f o r
a g r e e m e n t b y the m e n to m a k e m o r e e f f e c t i v e use of t h e i r w o r k i n g
hours.
T h i s could be w o r t h an a d d i t i o n a l 14 to 17 p e r c e n t ,
excluding the p o s s i b l e s a v i n g s f r o m g r e a t e r e f f i c i e n c y and
productivity.
Although the e f f e c t i v e date of the r e d u c t i o n of hours
w a s m o r e than 12 months h e n c e , this p a r t of the a g r e e m e n t w a s
a l m o s t c e r t a i n l y outwith the S t a g e 3 P a y C o d e .
I f the
G o v e r n m e n t r e f u s e d to e n d o r s e i t t h e r e would a l m o s t c e r t a i n l y be
a national s t r i k e of f i r e m e n ; on the o t h e r hand c o u n t e r - i n f l a t i o n
p o l i c y as a w h o l e m i g h t b e u n d e r m i n e d if the G o v e r n m e n t a p p e a r e d
t o g i v e w a y , i n the f i r p t m a j o r dispute under Stage 3, to m i l i t a n t
pressure.
T h e C o m m i t t e e had b e e n unable to r e a c h a g r e e m e n t
on the attitude which the H o m e S e c r e t a r y should adopt on this point
when he and the S e c r e t a r y of State f o r Scotland m e t the NJC on the
following day.
In d i s c u s s i o n i t w a s a r g u e d that firemente hours of w o r k had long
b e e n a m a t t e r of contention, and they attached c o n s i d e r a b l e
i m p o r t a n c e to the i m p l e m e n t a t i o n of the Cunningham R e p o r t s
r e c o m m e n d a t i o n that hours should b e r e d u c e d f r o m 56 t o 48 to
c o i n c i d e with the l o c a l g o v e r n m e n t r e - o r g a n i s a t i o n on 1 A p r i l 1974.
T h e N J C had a l r e a d y a g r e e d that the c o n c e s s i o n should b e d e f e r r e d
b y 7 m o n t h s , which would take i t outside the f o r e s e e n p e r i o d of
Stage 3; but f o r the a g r e e m e n t t o c o m e into e f f e c t in N o v e m b e r
1974 the p r e p a r a t i o n s , taking the f o r m of additional t r a i n i n g , the
r e - m a n n i n g of s o m e s e r v i c e s and the c l o s u r e of s o m e f i r e stations,
which would r e q u i r e H o m e O f f i c e a p p r o v a l , would need t o b e g i n
v e r y shortly.
It w a s t h e r e f o r e i m p o r t a n t that the G o v e r n m e n t
should be a b l e , as a m i n i m u m , to announce that, without
anticipating the p r o v i s i o n s o f any l e g i s l a t i o n on pay that m i g h t be
e n f o r c e d i n N o v e m b e r 1974, they w o u l d w o r k w i t h the f i r e
a u t h o r i t i e s to e n s u r e that u r g e n t c o n s i d e r a t i o n w a s g i v e n to the
p r a c t i c a l s t e p s r e q u i r e d to e n a b l e f i r e b r i g a d e s i n G r e a t B r i t a i n
to w o r k a 48 hour w e e k f r o m that d a t e .
A s t a t e m e n t along these
l i n e s m i g h t not be sufficient to s a t i s f y the f i r e m e n , but, if i t did
not, the G o v e r n m e n t would then be i n a b e t t e r p o s i t i o n t o counter
public c r i t i c i s m .
If it was not p o s s i b l e to g o this f a r i n the
statement the m e n would h a v e no a s s u r a n c e of when the r e c o m m e n d e d
1
4
reduction i n hours m i g h t take e f f e c t , and i t w a s a l m o s t c e r t a i n
that the l e a d e r s of the F i r e B r i g a d e s Union, w h o had adopted a
r e s p o n s i b l e attitude during the s t r i k e in G l a s g o w , would be
unable to d i s s u a d e t h e i r m e m b e r s f r o m a national s t r i k e .
If
this o c c u r r e d the Union would be l i k e l y to have public sympathy
on t h e i r s i d e and the e x p e r i e n c e i n G l a s g o w had shown that,
although the S e r v i c e m e n had p r o v i d e d a good s e r v i c e , the
M i n i s t r y of D e f e n c e would b e quite unable to p r o v i d e enough m e n
to r e p l a c e the f i r e s e r v i c e s in a l l the m a j o r e i t i . e s .
In these
c i r c u m s t a n c e s t h e r e s e e m e d no point in the G o v e r n m e n t s
p r o v o k i n g a confrontation with the f i r e m e n w h i c h i t could not h o p e
to win.
On the other hand, i t w a s a r g u e d that the f i r e m e n w e r e not in f a c t
seeking a r e d u c t i o n in h o u r s but t o b e paid at a h i g h e r r a t e f o r the
s a m e number of hours actual w o r k , r e c e i v i n g f o r 48 hours the
s a m e pay as they at p r e s e n t r e c e i v e d £or 56, the o t h e r 8 hours
then being paid f o r a t h i g h e r o v e r t i m e r a t e s .
The commitment to
a r e d u c t i o n in hours w a s i n c o n f l i c t with p a r a g r a p h 175 of the
P a y C o d e , and i t in any c a s e s e e m e d v e r y unlikely that the pay
p o l i c y in f o r c e in N o v e m b e r 1974 would m a k e p r o v i s i o n f o r such
a r e d u c t i o n , other than by counting the c o s t as p a r t of the next
pay s e t t l e m e n t .
A n d the a r g u m e n t that s p e c i a l c o n s i d e r a t i o n
should be g i v e n to the f i r e s e r v i c e s b e c a u s e of s h o r t a g e s of staff
was one w h i c h could w e l l b e used b y m a n y other e m p l o y e e s to
b r e a c h the c o d e .
T h u s , w h i l s t i t w a s r i g h t that the G o v e r n m e n t
should e x p r e s s sympathy with the o b j e c t i v e of a r e d u c t i o n of h o u r s
in a c c o r d a n c e with the Cunningham R e p o r t r e c o m m e n d a t i o n , t h e r e
should be no c o m m i t m e n t t o i m p l e m e n t i n g it in N o v e m b e r 1974.
W h a t e v e r the p r e c i s e w o r d i n g used to c o n v e y such a c o m m i t m e n t ,
i t would b e i n t e r p r e t e d by public opinion a s a s u r r e n d e r t o the
m i l i t a n c y shown b y the G l a s g o w and London f i r e m e n and would
t h e r e f o r e b e r e g a r d e d as a t e s t c a s e by the m i n e r s , the
E l e c t r i c a l P o w e r E n g i n e e r s A s s o c i a t i o n and the P o s t Office
w o r k e r s i n support of their own e f f o r t s to i m p r o v e t h e i r pay and
conditions of s e r v i c e beyond the P a y C o d e .
Indeed, in the d e b a t e
i n the H o u s e of C o m m o n s on the p r e v i o u s day the N J C a g r e e m e n t
w a s being h a i l e d as a v i c t o r y f o r the G l a s g o w f i r e m e n , who w e r e
e x p e c t i n g , i n addition to the i n c r e a s e s under the national a g r e e ­
m e n t and the r e d u c t i o n i n h o u r s , to r e t a i n the £ 2 . 48 o f f e r e d t o
them b y the G l a s g o w C o r p o r a t i o n .
The Government-*s
s u p p o r t e r s w e r e a l r e a d y e x p r e s s i n g c o n c e r n about the d a n g e r s
to the pay and p r i c e s p o l i c y .
One p o s s i b l e c o m p r o m i s e might
b e to r e f e r t o the o b j e c t i v e of making p r o g r e s s t o w a r d s the
w o r k i n g o f a 48 hour w e e k b y N o v e m b e r 1974.
5
T H E P R I M E M I N I S T E R , s l i m m i n g up the d i s c u s s i o n , said that the
Cabinet would r e s u m e t h e i r c o n s i d e r a t i o n of the f i r e m e n s pay­
a g r e e m e n t l a t e r that day.
T h e H o m e S e c r e t a r y and the
S e c r e t a r y of State f o r E m p l o y m e n t should, in the m e a n t i m e ,
c o n s i d e r the m a t t e r further i n the l i g h t of the d i s c u s s i o n , and
should e n d e a v o u r to put b e f o r e the Cabinet an a g r e e d s t a t e m e n t
of the G o v e r n m e n t ' s p o s i t i o n .
1
T h e Cabinet ­
1.
T o o k note, with a p p r o v a l , of the s u m m i n g
up of t h e i r d i s c u s s i o n b y the P r i m e M i n i s t e r .
2.
I n v i t e d the H o m e S e c r e t a r y and the S e c r e t a r y
of State f o r E m p l o y m e n t to p r e p a r e an a g r e e d
s t a t e m e n t of the G o v e r n m e n t s p o s i t i o n on f i r e m e n s
p a y f o r c o n s i d e r a t i o n l a t e r that day.
J
Public S e r v i c e s
in London
Previous
Reference:
C M ( 7 3 ) 52nd
Conclusions,
Minute 2
The C o a l
Industry
Previous
Reference:
C M ( 7 3 ) 52nd
Conclusions,
Minute 6
T H E S E C R E T A R Y OF S T A T E F O R E M P L O Y M E N T s a i d that he
had now m e t the C h a i r m a n of the P a y B o a r d to u r g e on h i m the
n e e d f o r e a r l y c o m p l e t i o n of the B o a r d ' s r e p o r t on L o n d o n
allowances.
T h e C h a i r m a n had a g r e e d tc p r o d u c e the r e p o r t as
quickly as he c o u l d , but i t w a s c l e a r that the B o a r d would take
s o m e t i m e o v e r the study; and they w e r e u n w i l l i n g to f o r e c a s t
the o u t c o m e .
Although i t could be a r g u e d that i m p r o v e m e n t s
i n London a l l o w a n c e s should b e c o n c e n t r a t e d on w o r k e r s in the
public s e r v i c e s r a t h e r than making them g e n e r a l l y a v a i l a b l e
thus adding to the e c o n o m i c p r e s s u r e s in the m e t r o p o l i s , this
would b e d i f f i c u l t to a r r a n g e p a r t i c u l a r l y s i n c e many of the
w o r k e r s i n t h e s e s e r v i c e s l i v e d outside the a r e a s w h e r e the
staff s h o r t a g e s e x i s t e d .
T H E S E C R E T A R Y O F S T A T E F O R E M P L O Y M E N T s a i d that,
at the m e e t i n g b e t w e e n the N a t i o n a l C o a l B o a r d ( N C B ) and the
N a t i o n a l Union of M i n e w o r k e r s ( M U M ) e a r l i e r that w e e k , the N C B
had o f f e r e d m i n i m a l i n c r e a s e s in the b a s i c r a t e s , and i m p r o v e ­
rnents i n h o l i d a y pay and the p r o p o s e d p r o d u c t i v i t y a r r a n g e m e n t s .
T h e P r e s i d e n t of the N U M w a s seeking to a r r a n g e f u r t h e r
m e e t i n g s w i t h the N C B a f t e r the N U M E x e c u t i v e C o m m i t t e e had
m e t that day.
T h e hope w a s that the m o d e r a t e e l e m e n t s would
p r e v a i l and that the E x e c u t i v e would conclude that they would b e
a b l e to e x t r a c t a m o r e f a v o u r a b l e s e t t l e m e n t under the t h r e a t of
an o v e r t i m e ban than b y a c t u a l l y i m p o s i n g such a ban.
The
6
C ^ M C m C M T I A I
i
q u e s t i o n of a c o m m i t m e n t to a t h i r d week-'s h o l i d a y , when the
P a y C o d e p e r m i t t e d , had a l s o b e e n r a i s e d a g a i n .
If the E x e c u t i v e
d e c i d e d to i m p o s e the o v e r t i m e ban this would i n c r e a s e the
m i l i t a n c y w i t h i n the N U M and l e s s e n the chances of a d e c i s i o n
a g a i n s t s t r i k e action in a national b a l l o t .
Electrical
Supply
Industry
Previous
Reference:
C M ( 7 3 ) 52nd
Conclusions,
Minute 6
The Motor
Industry
Previous
Reference:
C M ( 7 3 ) 43rd
Conclusions,
Minute 4
T H E S E C R E T A R Y O F S T A T E F O R E M P L O Y M E N T s a i d that the
s e l e c t i v e ban on standby duties b y the E l e c t r i c a l P o w e r E n g i n e e r s
A s s o c i a t i c n w a s continuing; and t h e r e s e e m e d l i t t l e p r o s p e c t
o f a s e t t l e m e n t of the dispute b e f o r e the m e e t i n g of the Joint
N e g o t i a t i n g B o a r d on 20 N o v e m b e r , when the annual pay c l a i m by
the e n g i n e e r s was due to b e d i s c u s s e d .
The E l e c t r i c i t y Council
hoped that this would p r o v i d e an opportunity f o r a c o m p r o m i s e
s e t t l e m e n t of the d i s p u t e .
T H E S E C R E T A R Y O F S T A T E F O R E M P L O Y M E N T said that the
e l e c t r i c i a n s ' dispute at C h r y s l e r s had b e e n ended on the t e r m s
reconmtmended by the independent enquiry, the P a y B o a r d having
a g r e e d that the r e c o m m e n d a t i o n that the e l e c t r i c i a n s be g i v e n
staff status should b e i m p l e m e n t e d in full.
A l t h o u g h there w a s
a r i s k that this m i g h t c r e a t e d i f f i c u l t y in o t h e r g r o u p s of s k i l l e d
c a r w o r k e r s the c o m p a n y did not e x p e c t this to happen.
P r o d u c t i o n at Vauxhall M o t o r s , E l l e s m e r e P o r t plant, w h e r e
the m a s s m e e t i n g of s t r i k e r s had b e e n postponed until Saturday,
w a s s t i l l at a s t a n d s t i l l .
T h e Cabinet
­
3.
T o o k note of the s t a t e m e n t s b y the S e c r e t a r y
of State f o r E m p l o y m e n t .
Cabinet Office
3 N o v e m b e r 1973
7
COPY NO
A'A
CABINET
CONFIDENTIAL ANNEX
C M ( 7 3 ) 53rd Conclusions, Minute 2
Thursday 8 November 1973 at 10. 00 am
FOREIGN
AFFAIRS
Middle E a s t
Previous
Reference:
C M ( 7 3 ) 52nd
Conclusions,
Minute 3
T H E F O R E I G N A N D C O M M O N W E A L T H S E C R E T A R Y said that
p r * E m i o & r y reports on the discussions which had taken place
in C a i r o the previous day between P r e s i d e n t Sadat of Egypt and
the A m e r i c a n S e c r e t a r y of State, D r K i s s i n g e r , indicated that
they had a g r e e d to seek an a r r a n g e m e n t under which the road to
the Egyptian T h i r d A r m y would be opened
under the s u p e r ­
vision of United Nations o b s e r v e r s ; an exchange of p r i s o n e r s
would take place; and within 10 to 15 days a peace conference
would begin.
D r K i s s i n g e r s a d v i s e r , M r Sisco, had taken the
proposals to I s r a e l .
D r K i s s i n g e r appeared to think that the
P r i m e Minister of I s r a e l , M r s M e i r , would accept them, despite
the fact that during her recent v i s i t to Washington she had been
obdurate and no p r o g r e s s had b e e n made with h e r .
It was
intended that the peace conference should be attended by the
Secretary G e n e r a l of the United Nations, D r Waldheim, the
contestants, and the United States and the Soviet Union.
W e had
learnt f r o m the Egyptians that they would prefer a somewhat
l a r g e r conference since they did not wish to have the Soviet Union
as their only a d v i s e r .
It would not be advisable, however, for us
and the F r e n c h to attempt at present to take part in the conference,
although this possibility might a r i s e at a later stage.
American
supplies of w a r m a t e r i a l to the I s r a e l i s , and Russian supplies to
the Egyptians, had fallen to a relatively low level.
B y this time
the equipment l o s t by both sides had probably been r e p l a c e d .
Neither side w a s asking us to r e s u m e supplies.
J
THE C H A N C E L L O R O F THE D U C H Y O F L A N C A S T E R said that
the meeting of the Council of M i n i s t e r s of the European Economic
Community ( E E C ) which had been held in B r u s s e l s e a r l i e r in the
week had been dominated by consideration of the A r a b / I s r a e l
dispute and its repercussions o n E u r o p e ' s supplies of oil.
The
statement b y the F o r e i g n M i n i s t e r s of the Nine, despite its
critical and indeed p e r v e r s e reception by the media, represented
a considerable achievement in Community solidarity as w e l l as a
helpful contribution to the s e a r c h for a settlement in the Middle
E a s t . The United Kingdom and F r a n c e now had a f i r m Community
p o s i t i o n on w h i c h to b a s e t h e i r e f f o r t s to perstia.de the A r a b s t a t e s
to m o d e r a t e t h e i r e m b a r g o on o i l s u p p l i e s to H o l l a n d .
Although no
signs had y e t a p p e a r e d of s e r i o u s s h o r t a g e s of o i l d e v e l o p i n g in
E u r o p e , the p o s i t i o n w a s e x t r e m e l y u n c e r t a i n .
Of the supply of
o i l n o r m a l l y r e a c h i n g H o l l a n d , half was d e s t i n e d f o r r e - e x p o r t t o
W e s t G e r m a n y and B e l g i u m ; and the G o v e r n m e n t s of these t w o
c o u n t r i e s w e r e much c o n c e r n e d at the p o s s i b i l i t y that i f the
i n t e r r u p t i o n to H o l l a n d ' s s u p p l i e s p e r s i s t e d , public opinion m i g h t
c o m p e l the Dutch G o v e r n m e n t to b a n e x p o r t s .
But i t a p p e a r e d
that the point of c r i s i s m i g h t not b e r e a c h e d f o r about 10 d a y s ;
and the C o u n c i l of M i n i s t e r s had a g r e e d t o take no d e c i s i o n this
w e e k on any p r o p o s a l t o s h a r e s u p p l i e s .
I n d i s c u s s i o n i t was s u g g e s t e d that although r e n e w e d c o n s i d e r a t i o n
should p e r h a p s now be g i v e n to the s h a r i n g a r r a n g e m e n t s under
the O r g a n i s a t i o n for Economic
C o - o p e r a t i o n and D e v e l o p m e n t , the
Dutch G o v e r n m e n t had c o n c e d e d p r i v a t e l y that a n y a t t e m p t b y t h e i r
E E C p a r t n e r s to d i v e r t supplies of crude o i l t o R o t t e r d a m in
d e f i a n c e of the A r a b e m b a r g o w o u l d be v e r y d a n g e r o u s ; but f o r the
t i m e being i t would be a d v i s a b l e not to t r y and stop the n o r m a l f l o w
of o i l products b e t w e e n m e m b e r s o f the C o m m u n i t y .
The
opportunity should not h o w e v e r b e l o s t of turning the C o m m u n i t y s
s o l i d a r i t y on this i s s u e to a d v a n t a g e by r e m o n s t r a t i n g with the
A r a b states about the p o l i t i c a l use of the o i l w e a p o n against E u r o p e .
It had b e e n r e p o r t e d that the p r o d u c e r states had b e e n s u r p r i s e d
and g r a t i f i e d b y the l a c k of any c o n c e r t e d r e s p o n s e f r o m c o n s u m e r
g o v e r n m e n t s t o the r e c e n t p r i c e i n c r e a s e s , and they should not b e
l e f t t o a s s u m 3 that t h e i r a c t i o n would go u n c h a l l e n g e d .
On the
o t h e r hand, i t w a s r e m a r k e d that both the I r a n i a n and the Saudi
A r a b i a n G o v e r n m e n t s had m a d e i t c l e a r i n r e p l y t o our own
r e p r e s e n t a t i o n s that they s a w t h e s e d e v e l o p m e n t s a g a i n s t a h i s t o r y
of e x p l o i t a t i o n of their r e s o u r c e s b y the W e s t e r n nations.
Although
the p o s i t i o n now r e a c h e d b y the E E C p r o v i d e d a sound basis on
w h i c h t o d e v e l o p a c o m m o n a p p r o a c h t o the o i l p r o d u c e r s , the
p r o c e s s m u s t take t i m e .
N o r should it b e f o r g o t t e n that at l e a s t
until the e a r l y 1980's, when s u p p l i e s of o i l f r o m the N o r t h Sea
m i g h t m a k e us l a r g e l y s e l f sufficient, w e l i k e the r e s t of E u r o p e
w o u l d continue t o depend o v e r w h e l m i n g l y on the M i d d l e E a s t ; the
c a p a c i t y of p r a c t i c a l l y e v e r y m a j o r p r o d u c e r w a s f u l l y s t r e t c h e d
to m e e t c u r r e n t d e m a n d s ; and the A r a b s t a t e s w e r e i n a p o s i t i o n
not m e r e l y to i n c o n v e n i e n c e us b y c o m p e l l i n g us to r a t i o n p e t r o l
and a l l o c a t e s u p p l i e s , but to p a r a l y s e i n d u s t r y , c a u s e w i d e s p r e a d
d a m a g e to aur e c o n o m y and m a s s i v e u n e m p l o y m e n t .
1
A g a i n s t this background i t w a s r e c o g n i s e d that the extent of our
d e p e n d e n c e on supplies of o i l f r o m the A r a b nations r a i s e d
d i f f i c u l t questions f o r the public p r e s e n t a t i o n of the G o v e r n m e n t s
policies.
W i d e s p r e a d c r e d e n c e w a s b e i n g g i v e n to a v e r s i o n of
e v e n t s w h i c h s u g g e s t e d that the G o v e r n m e n t had succumbed to
b l a c k m a i l f r o m the A r a b o i l p r o d u c e r s to adopt an i g n o b l e attitude
with r e g a r d to the A r a b / I s r a e l dispute, taking l i t t l e account o f
public s y m p a t h y for Isx^ael and c o n c e r n f o r h e r s u r v i v a l .
The
m e d i a , w h i c h a p p e a r e d to b e e x c e s s i v e l y open t o I s r a e l i i n f l u e n c e ,
put o n l y one side of the c a s e and i g n o r e d the G o v e r n m e n t s
c o n s i s t e n t e n d e a v o u r s , f i r s t e x p r e s s e d i n the F o r e i g n and
C o m m o n w e a l t h S e c r e t a r y S s p e e c h at H a r r o g a t e i n O c t o b e r 1970,
to p e r s u a d e the G o v e r n m e n t of I s r a e l that t h e r e could be no
lasting s e t t l e m e n t i n the M i d d l e E a s t w h i l e they sought to p r o t e c t
t h e i r own f r o n t i e r s b y holding A r a b t e r r i t o r i e s through f o r c e of
a r m s . But the G o v e r n m e n t had n e v e r a d v o c a t e d I s r a e l s
unconditional w i t h d r a w a l f r o m t h e s e t e r r i t o r i e s without any
g u a r a n t e e of I s r a e l s s e c u r i t y .
It w a s s u g g e s t e d that the
G o v e r n m e n t s attitude to this question w a s not f u l l y a p p r e c i a t e d
e i t h e r b y the J e w i s h c o m m u n i t y in this country o r b y public opinion
at l a r g e ; no e f f o r t should b e s p a r e d t o m a k e it u n d e r s t o o d ; and f o r
this p u r p o s e i t would b e v a l u a b l e f o r m e m b e r s of the Cabinet to b e
fully b v i e f e d on the i s s u e s , the facts and the c o n s i d e r a t i o n s underlying
the G o v e r n m e n t s p o l i c y .
I t w a s further r e p r e s e n t e d that although
the e s s e n t i a l i n t e r e s t s of I s r a e l s s e c u r i t y m u s t be supported, and
h e r p o s i t i o n as the v i c t i m of unrelenting A r a b h o s t i l i t y and r e p e a t e d
attacks s i n c e h e r foundation m u s t comrtsaaaa e d e g r e e of sympathy,
to support on that account e v e r y a c t of I s r a e l i a g g r a n d i s e m e n t , o r
a c c e p t u n c r i t i c a l l y t h e i r v i e w of the situation, wotild do l i t t l e good
to therr e s s e n t i a l i n t e r e s t s o r our own.
It w a s much in t h e i r
i n t e r e s t s that t h e r e should b e W e s t e r n nations w h i c h could b r i n g
influence t o b e a r on the A r a b s .
T h e r e was h o w e v e r a l a r g e and
a c t i v e l o b b y at. w o r k i n this c o u n t r y to further the I s r a e l i c a u s e ;
and i t w a s difficult f o r a b a l a n c e d v i e w p o i n t to g e t a h e a r i n g .
It
w a s i m p o r t a n t that the J e w i s h c o m m u n i t y and o t h e r s should
a p p r e c i a t e that public sympathy f o r I s r a e l would e v a p o r a t e r a p i d l y
if i n t r a n s i g e n c e on h e r p a r t t o w a r d s a p e a c e s e t t l e m e n t w e r e to
b r i n g , through d i s r u p t i o n of our o i l s u p p l i e s , s e r i o u s d a m a g e t o our
own economy.
T H E P R I M E M I N I S T E R , s u m m i n g up the d i s c u s s i o n , said that the
C a b i n e t took note of the l a t e s t d e v e l o p m e n t s in the M i d d l e E a s t ,
as w e l l as the o u t c o m e of the m e e t i n g of the C o u n c i l of M i n i s t e r s
of the E E C .
C l o s e w a t c h w a s being m a i n t a i n e d on our o i l
s u p p l i e s , and the M i n i s t e r i a l C o m m i t t e e on E c o n o m i c S t r a t e g y
would b e r e v i e w i n g the p o s i t i o n l a t e r that day.
T h e intentions
of the A r a b p r o d u c e r s w e r e b e i n g a s c e r t a i n e d , and t h e r e w a s c l o s e
c o n t a c t with the o i l c o m p a n i e s .
Contingency p r e p a r a t i o n s t o
r e s t r i c t consumption of o i l i n this country w e r e a l m o s t c o m p l e t e :
p e t r o l r a t i o n i n g could be i n t r o d u c e d
three w e e k s ' notice if
n e c e s s a r y , and a l l o c a t i o n could be m a d e within a f e w d a y s .
On
the w i d e r i s s u e s r a i s e d i n the C a b i n e t S d i s c u s s i o n , c o n c e r n
had b e e n e x p r e s s e d that the G o v e r n m e n t s p o s i t i o n , which had
b e e n m a i n t a i n e d c o n s i s t e n t l y since 1970, w a s w i d e l y m i s u n d e r s t o o d ,
and m i s r e p r e s e n t e d .
H i s c o l l e a g u e s would w i s h to use o v a r y
opportunity a v a i l a b l e t o p r o m o t e w i d e r puhlic a p p r e c i a t i o n of the
G o v e r n m e n t s p o l i c y and the c o n s i d e r a t i o n s w h i c h underlay i t .
T o this end i t would b e helpful i f the F o r e i g n and C o m m o n w e a l t h
S e c r e t a r y would c i r c u l a t e a note setting out the f a c t s in d e t a i l
and i n d i c a t i n g f o r his c o l l e a g u e s the l i n e that m i g h t b e taken in
public d i s c u s s i o n .
T h e note should a l s o g i v e guidance on our own
p o l i c y on a r m s supplies and on c r i t i c i s m that w e had denied
f a c i l i t i e s to the United States i n pursuance of t h e i r support f o r
Israel.
The S e c r e t a r y o f State f o r T r a d e and Industry should
a l s o c i r c u l a t e a note on the p o s i t i o n w i t h r e g a r d t o o i l s u p p l i e s ,
b r i n g i n g out the e x t e n t of our dependence on A r a b o i l , the
a s s u r a n c e s w e had r e c e i v e d , and the p r e c a u t i o n a r y m e a s u r e s i n
hand both in thi3 country and a m o n g other c o n s u m e r c o u n t r i e s .
T h e Cabinet I.
T o o k s&Qto, w i t h a p p r o v a l , of the summing
up of their d i s c u s s i o n b y the P r i m e M i n i s t e r .
2.
Invited ­
jt.
the S e c r e t a r y of State for F o r e i g n and
C o m m o n w e a l t h A f f a i r s to c i r c u l a t e f o r t h e i r
i n f o r m a t i o n a note of the G o v e r n m e n t s p o l i c y
t o w a r d s the A r a b / I s r a e l d i s p u t e ;
i i .
the S e c r e t a r y of State for T r a d e and
Industry t o c i r c u l a t e a note about the p o s i t i o n
of o i l s u p p l i e s , as indicated in the summing up.
C a b i n e t Office
8 N o v e m b e r 1973
4