(c) crown copyright
Catalogue Reference:CAB/128/57/15
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THIS D O C U M E N T I S T H E P R O P E R T Y
OF HER BRITANNIC MAJESTY'S
GOVERNMENT
Q K
C C ( 7 5 ) 45th
COPY NO
0
U
Conclusions
CABINET
C O N C L U S I O N S of a M e e t i n g o f t h e C a b i n e t
h e l d at 10 D o w n i n g S t r e e t on
THURSDAY
30 O C T O B E R 1975
at 11. 00 a m
P R E S E N T
T h e Rt Hon Harold Wilson
Prime
MP
Minister
T h e R t Hon J a m e s Caliaghan
The Rt H o n E d w a r d S h o r t M P
L o r d P r e s i d e n t o f the C o u n c i l
MP
S e c r e t a r y o f S t a t e f o r F o r e i g n and
Commonwealth Affairs
(Items
The R t Hon Roy Jenkins
The Rt Hon L o r d E l w y n - J o n e s
Lord Chancellor
1-4)
MP
S e c r e t a r y of State f o r the H o m e
Department
I The R t H o n D e n i s H e a l e y
MP
T h e R t Hon Anthony C r o s l a n d
i C h a n c e l l o r o f the E x c h e q u e r
The R t H o n M i c h a e l F o o t
j S e c r e t a r y o f State f o r
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
MP
T h e R t Hon Anthony W e d g w o o d Benn
Employment
I The R t H o n B a r b a r a C a s t l e
S e c r e t a r y of State f o r
MP
T h e R t Hon E r i c V a r l e y
S e c r e t a r y of State f o r
The R t Hon R o y M a s o n
T h e R t Hon W i l l i a m R o s s
MP
Defence
S e c r e t a r y of State f o r
The R t H o n John M o r r i s Q C M P
S e c r e t a r y o f State f o r W a l e s
The R t Hon H a r o l d L e v e r
C h a n c e l l o r of the D u c h y o f
MP
Industry
MP
Scotland
T h e R t Hon M e r l y n R e e s
MP
S e c r e t a r y of State f o r N o r t h e r n
MP
Ireland
The R t Hon F r e d Mulley M P
S e c r e t a r y o f S t a t e f o r E d u c a t i o n and
Science
Lancaster
i
MP
Energy
S e c r e t a r y o f State f o r S o c i a l S e r v i c e s
S e c r e t a r y o f State f o r
MP
I The Rt Hon R e g i n a l d P r e n t i c e M P
T h e Rt Hon R o b e r t M e l l i s h
?viinister f o r O v e r s e a s D e v e l o p m e n t
Parliamentary Secretary,
T h e R t Hon John Silkin M P
M i n i s t e r f o r P l a n n i n g and L o c a l
ALSO
MP
Treasury
Government
PRESENT
T h e R t Hon S a m u e l Silkin Q C
Attorney General
MP
(Item 5)
SECRETARIAT
S i r J o h n Htuat
Mr
Mr
Mr
Mr
Mr
G
P
T
A
R
R Denman
Benner
F Brenchley
D Gordon-Brown
P S Hughes
(Item ?)
( I t e m s 1, 2, 4 and 5 )
( I t e m 3)
( I t e m s 4 and 5)
( I t e m s 1-3)
C O N T E N T S
Item
Subject
Page
1
PARLIAMENTARY AFFAIRS
1
2
CONFIDENTIALITY
1
3
FOREIGN
OF M I N I S T E R I A L DISCUSSIONS
AFFAIRS
Iceland
2
Cyprus
3
Lebanon
3
NATIONAL H E A L T H SERVICE D E N T A L AND
CHARGES
THE QUEEN'S SPEECHES
OPTICAL
5
8
PARLIAMENTARY
FFAIRS
1,
T h e C a b i n e t w e r e i n f o r m e d o f the b u s i n e s s t o b e t a k e n i n
the H o u s e o f C o m m o n s d u r i n g t h e f o l l o w i n g w e e k .
It w a s n o t e d
that t h e r e w o u l d on 5 N o v e m b e r b e a d e b a t e on a M o t i o n r e l a t i n g
to t h e R.oad V e h i c l e s L i g h t i n g ( A m e n d m e n t ) ( N o . 2 ) R e g u l a t i o n s .
A P r a y e r t o annul t h e R e g u l a t i o n s h a d b e e n s i g n e d b y a l a r g e
n u m b e r o f G o v e r n m e n t b a c k b e n c h s u p p o r t e r s ; and t h e O p p o s i t i o n
had n o w p u t d o w n a s e p a r a t e M o t i o n c a l l i n g f o r t h e i r w i t h d r a w a l .
The G o v e r n m e n t s defeat was inevitable.
F o r technical reasons
it w a s n o t p o s s i b l e f o r t h e R e g u l a t i o n s t o b e w i t h d r a w n , and i t
w a s t h e r e f o r e p r o p o s e d t o t a k e f i r s t the P r a y e r f o r annulment
and t o a n n o u n c e that a f r e e v o t e w o u l d b e a l l o w e d .
The Prayer
w o u l d b e c a r r i e d , a n d t h e n e e d f o r d e b a t e on t h e O p p o s i t i o n ^
M o t i o n w o u l d thus b e a v o i d e d .
It w a s r e p o r t e d that,
the P r e s s ,
c o n t r a r y to r e p o r t s which had a p p e a r e d in
t h e O p p o s i t i o n h a d n o t p l a c e d a ban o n p a i r i n g
a r r a n g e m e n t s , though they w e r e taking a m o r e r e s t r i c t i v e
line
than p r e v i o u s l y .
CONFIDENTIALITY
2.
OF M I N I S T E R I A L
DISCUSSIONS
u n a u t h o r i s e d l e a k a g e to t h e P r e s s o f e x t e n s i v e ( a n d l a r g e l y
m i s l e a d i n g ) i n f o r m a t i o n a b o u t t h e o u t c o m e of t h e m e e t i n g o f t h e
T H E P R I M E M I N I S T E R d r e w t h e C a b i n e t s a t t e n t i o n t o the
M i n i s t e r i a l S t e e r i n g C o m m i t t e e on D e v o l u t i o n ( D S ) which, h a d t a k e n
place on 24 O c t o b e r .
T h e l e a k s , w h i c h a p p e a r e d to h a v e b e e n
c a l c u l a t e d , s u g g e s t e d ­ w r o n g l y ­ that the m e e t i n g of DS had
r e v e a l e d m a j o r d i f f e r e n c e s o f o p i n i o n b e t w e e n M i n i s t e r s ; and
they h a d d o n e g r e a t h a r m to the G o v e r n m e n t s standing in S c o t l a n d
and W a l e s b y s u g g e s t i n g t h a t M i n i s t e r s h a d n o t b e e n a c t i n g in g o o d
f a i t h i n t h e i r e a r l i e r s t a t e m e n t s about t h e i r p r o p o s a l s f o r
devolution.
T h e y h a d a l s o p l a c e d h i m in a v e r y d i f f i c u l t p o s i t i o n
w h e n a n s w e r i n g P a r l i a m e n t a r y Q u e s t i o n s s h o r t l y a f t e r w a r d s , and
h e h a d h a d n o c h o i c e in t h e c i r c u m s t a n c e s but t o a n s w e r a
P a r l i a m e n t a r y Q u e s t i o n about the introduction of l e g i s l a t i o n in
m o r e r o b u s t t e r m s than h e m i g h t o t h e r w i s e h a v e d o n e .
" G o v e r n m e n t b y l e a k " w a s t o t a l l y u n a c c e p t a b l e ; and a l l M i n i s t e r s
should in future a d h e r e s t r i c t l y to the guidance w h i c h w a s c l e a r l y
set out in t h e m e m o r a n d u m " Q u e s t i o n s of P r o c e d u r e f o r
M i n i s t e r s " (C(P)(74) 6).
T h e Cabinet
-
T o o k note w i t h a p p r o v a l of the
M i n i s t e r ^ statement.
1
Prime
F O R E I G N
3.
A F F A I R S
t h a t t a l k s h a d b e e n h e l d i n L o n d o n on 2 3 - 2 4 O c t o b e r w i t h an
I c e l a n d i c d e l e g a t i o n l e d b y the M i n i s t e r of F o r e i g n A f f a i r s ,
Mr Agustsson.
It had b e c o m e c l e a r that the I c e l a n d e r s had m a d e
l i t t l e p r o g r e s s in s o l v i n g the negotiating p r o b l e m s they f a c e d as a
r e s u l t of d i f f e r e n c e s o f o p i n i o n w i t h i n t h e i r c o a l i t i o n G o v e r n m e n t .
In r e s p o n s e t o o u r o p e n i n g b i d f o r a c a t c h l i m i t o f 130, 000 t o n s
a y e a r the I c e l a n d e r s h a d o f f e r e d o n l y 50, 000 t o n s , but h a d a s k e d
u s n o t t o r e v e a l t h a t f i g u r e : h i s i n t e r p r e t a t i o n o f t h i s w a s t h a t the
I c e l a n d i c F o r e i g n M i n i s t e r w a n t e d to b e a b l e t o m a k e an i n c r e a s e
on t h i s o f f e r but k n e w t h a t h e w o u l d b e b o u n d b y t h e f i g u r e i f i t
became public.
T h e n e x t s t e p v/as f o r t h e s c i e n t i s t s o f b o t h s i d e s
t o d i s c u s s d a t a on t h e f i s h s t o c k s i n t h e w a t e r s a r o u n d I c e l a n d .
T h e s e d i s c u s s i o n s w o u l d b r i n g us d a n g e r o u s l y c l o s e to the d a t e of
13 N o v e m b e r w h e n o u r c u r r e n t a g r e e m e n t w i t h I c e l a n d w a s due to
e x p i r e and M i n i s t e r i a l t a l k s w o u l d p r o b a b l y n o t r e s u m e u n t i l a f t e r
that d a t e .
O u r r i g h t s f o l l o w i n g e x p i r y of the a g r e e m e n t w e r e c l e a r
and h a d b e e n c o n f i r m e d b y t h e I n t e r n a t i o n a l C o u r t of J u s t i c e .
N e v e r t h e l e s s the B r i t i s h f i s h i n g i n d u s t r y w a s w i l l i n g t o e x e r c i s e
i t s r i g h t s w i t h m o d e r a t i o n , and w e h a d t o l d t h e I c e l a n d e r s t h a t w e
w o u l d a c t a f t e r 13 N o v e m b e r a s t h o u g h t h e a g r e e m e n t w a s s t i l l in
force.
T h e I c e l a n d e r s w o u l d h a v e t o t a k e the p u b l i c p o s i t i o n that
t h e y s t o o d o n t h e 200 m i l e r i g h t s t h e y c l a i m e d , b u t t h e p r e s e n t
I c e l a n d i c G o v e r n m e n t w e r e m o r e r e a s o n a b l e t h a n the A d m i n i s t r a t i o n
i n f o r c e at t h e t i m e o f t h e l a s t c o d w a r and h e t h o u g h t i t p o s s i b l e
that they m i g h t l i m i t t h e i r action a g a i n s t our f i s h e r m e n to s o m e
s y m b o l i c g e s t u r e such a s t h e c u t t i n g o f o n e o r t w o w a r p s .
The
question of p r o t e c t i o n of our fishing v e s s e l s w o u l d then a r i s e .
It
w a s t e m p t i n g t o p r o v i d e R o y a l N a v y p r o t e c t i o n i m m e d i a t e l y , but t h i s
would make it m o r e difficult f o r the I c e l a n d e r s t o negotiate with us;
t h e r e w a s t h e r e f o r e s o m e t h i n g to be said t o r using c i v i l i a n v e s s e l s
in a p r o t e c t i o n r o l e .
Iceland
THE FOREIGN A N D C O M M O N W E A L T H SECRETARY
said
In a b r i e f d i s c u s s i o n t h e s u g g e s t i o n w a s m a d e t h a t c i v i l i a n v e s s e l s
m i g h t b e u s e d f o r p r o t e c t i o n w i t h i n t h e 50 m i l e z o n e w i t h R o y a l Navy­
v e s s e l s p a t r o l l i n g o u t s i d e t h e 50 m i l e z o n e .
T h e British fishing
i n d u s t r y w a s i n v e r y p o o r s h a p e a t p r e s e n t and any r e d u c t i o n i n t h e
catch f r o m w a t e r s off Iceland would e x a c e r b a t e its d i f f i c u l t i e s .
One
c o n s e q u e n c e w o u l d b e g r e a t p r e s s u r e f r o m t h e i n d u s t r y on t h e
G o v e r n m e n t in c o n n e c t i o n w i t h t h e n e g o t i a t i o n s f o r a C o m m o n
Fisheries Policy.
2
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 s a i d that,
a l t h o u g h n o t h i n g c o u l d b e s a i d p u b l i c l y at t h i s s t a g e , h e w a s
e n g a g e d i n v e r y a c t i v e e x c h a n g e s w i t h the G r e e k and T u r k i s h
G o v e r n m e n t s on t h e C y p r u s i s s u e .
H e had p r o p o s e d t o b o t h s i d e s
a package containing t h r e e e l e m e n t s ; a b i - z o n a l f e d e r a t i o n ;
b o u n d a r y a d j u s t m e n t s ; and a c e n t r a l g o v e r n m e n t w i t h w e a k
powers.
T h e G r e e k G o v e r n m e n t w e r e ready to accept in p r i n c i p l e ,
subject to c l a r i f i c a t i o n of d e t a i l s , p a r t i c u l a r l y on the b o u n d a r i e s .
T h e T u r k i s h G o v e r n m e n t r e s p o n s e w a s l e s s s a t i s f a c t o r y : they
w e r e b e i n g d e l i b e r a t e l y v a g u e a b o u t b o u n d a r y a d j u s t m e n t s and
w e r e d e m a n d i n g that i n t h e c e n t r a l g o v e r n m e n t t h e T u r k i s h
c o m m u n i t y s h o u l d h a v e e q u a l r i g h t s w i t h the G r e e k c o m m u n i t y .
He w a s continuing h i s m e d i a t i o n with the o b j e c t of r e a c h i n g a
sufficient m e a s u r e of u n d e r s t a n d i n g t o a l l o w the C l e r i d e s / D e n k t a s h
t a l k s t o b e r e s u m e d w i t h g o o d p r o s p e c t s of s u c c e s s .
He could not
e x c l u d e the p o s s i b i l i t y that the T u r k s w e r e p l a y i n g a double g a m e
with us in t h e s e n e g o t i a t i o n s s i n c e in p a r a l l e l d i s c u s s i o n s with the
F e d e r a l G e r m a n G o v e r n m e n t they had suggested not a b i - z o n a l
f e d e r a t i o n b u t t h r e e z o n e s , the c e n t r a l z o n e t o b e j o i n t l y
administered.
H e w a s k e e p i n g in c l o s e touch with the F e d e r a l
German Foreign Minister, Herr Genscher.
The American
S e c r e t a r y of State, D r K i s s i n g e r , w a s also p r e s s i n g both sides
to m o v e t o a solution.
So w e r e t h e
European Economic
C o m m u n i t y c o u n t r i e s a c t i n g as a w h o l e , but the T u r k s s e e m e d
d i s i n c l i n e d t o p a y m u c h a t t e n t i o n t o t h e r e p r e s e n t a t i o n s o f the
Community Presidency.
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 s a i d that
t h e r e w e r e t h r e e f a c t o r s i n v o l v e d in the v e r y d i s t u r b i n g s i t u a t i o n
i n the L e b a n o n ; t h e M u s l i m s w e r e d e m a n d i n g g r e a t e r p o w e r s on
t h e g r o u n d t h a t t h e y n o w o u t n u m b e r e d the C h r i s t i a n s ; t h e L e b a n e s e
G o v e r n m e n t c o u l d n o t u s e t h e A r m y t o r e s t o r e o r d e r ; and the
P a l e s t i n i a n r e f u g e e s w e r e an u n s e t t l i n g i n f l u e n c e ,
Syrian policy
on the i s s u e w a s b y n o m e a n s c l e a r : at t i m e s t h e y a p p e a r e d t o b e
t r y i n g t o m e d i a t e , t h o u g h w i t h l i t t l e s u c c e s s , w h i l s t at o t h e r t i m e s
t h e r e w a s e v i d e n c e t h a t t h e y w e r e i n f i l t r a t i n g S y r i a n s i n t o the
c o n f l i c t d i s g u i s e d as P a l e s t i n i a n r e f u g e e s .
T h e r e was a danger
t h a t S y r i a n i n t e r v e n t i o n m i g h t i n d u c e the I s r a e l i s t o m o v e i n t o
southern Lebanon.
H e h a d b e e n c o n s i d e r i n g the p o s s i b i l i t y of
m e d i a t i o n and h a d d i s c u s s e d t h i s r e c e n t l y w i t h t h e S a u d i A r a b i a n
F o r e i g n M i n i s t e r , P r i n c e Saud, w h o had t o l d h i m that the Saudis
h a d b e e n u n s u c c e s s f u l i n t h e i r o w n a t t e m p t s at m e d i a t i o n and t h a t
he thought it unlikely that B r i t i s h m e d i a t i o n could s u c c e e d .
He
p r o p o s e d to d i s c u s s the p o s s i b i l i t y with h i s E u r o p e a n E c o n o m i c
C o m m u n i t y c o l l e a g u e s in R o m e but thought that the p r o s p e c t s o f
successful mediation were slim.
The United States Government
w e r e not a t t e m p t i n g m e d i a t i o n f o r the t i m e b e i n g .
H e thought it
w a s j u s t p o s s i b l e that the L e b a n e s e C h r i s t i a n s m i g h t f i n a l l y a g r e e
t o p a r t i t i o n t h e c o u n t r y , b u t i t w o u l d b e t r a g i c t o s e e the L e b a n o n
b r e a k up in t h a t w a y .
The Cabinet T o o k note o f the s t a t e m e n t s b y the F o r e i g n and C o m m o n w e a l t h
4
Secretary. NATIONAL,
4.
HEALTH
SERVICE
i n c r e a s e s in N a t i o n a l H e a l t h S e r v i c e ( N H S ) d e n t a l and o p t i c a l
DENTAL A N D
S e a l ( C ( 7 5 ) 105) about the p o s s i b i l i t y o f m a k i n g t h e n e c e s s a r y
OPTICAL
CHARGES
related
Previous
Reference:
CC(75) 41st
Conclusions;,
Minute 3
T h e C a b i n e t r e s u m e d t h e i r c o n s i d e r a t i o n of the p r o p o s e d
charges.
T h e y had b e f o r e t h e m a m e m o r a n d u m by the L o r d
Privy
s a v i n g s b y e c o n o m i e s in t h e c o s t o f a d m i n i s t r a t i o n o f t h e N H S and
services.
T H E S E C R E T A R Y O F S T A T E F O R S O C I A L S E R V I C E S said that a
d e c i s i o n on the p r o p o s e d i n c r e a s e s w a s u r g e n t l y n e e d e d ; the
l o n g e r i t w a s d e l a y e d the g r e a t e r t h e i n c r e a s e i n c h a r g e s that w o u l d
be n e c e s s a r y .
She found t h e p r o s p e c t of t h e i n c r e a s e s m o s t
unwelcome.
T h e y w e r e b o u n d t o c a u s e d i s t r e s s and a n n o y a n c e t o
G o v e r n m e n t s u p p o r t e r s , a l l t h e m o r e so b e c a u s e t h e r e w a s n o
p r o s p e c t that any m o v e could b e m a d e t o w a r d s a c h i e v i n g the
G o v e r n m e n t s l o n g - t e r m o b j e c t i v e o f a b o l i s h i n g o f at l e a s t r e d u c i n g
prescription charges.
But the L o r d P r i v y S e a l h a d c o n c l u d e d that
i t w o u l d b e i m p o s s i b l e t o m a k e s a v i n g s o f £18 m i l l i o n a y e a r b y
m e a n s o f a d m i n i s t r a t i v e e c o n o m i e s ; and s h e and t h e o t h e r H e a l t h
M i n i s t e r s c o u l d n o t find t h a t s u m f r o m w i t h i n t h e i r h e a l t h
p r o g r a m m e s , w h i c h h a d a l r e a d y b e e n cut s o s e v e r e l y t h a t i t w a s
doubtful w h e t h e r e v e n i n e s c a p a b l e c o m m i t m e n t s could b e m e t .
U n l e s s t h e n e c e s s a r y m o n e y c o u l d b e f o u n d f r o m e l s e w h e r e she
t h e r e f o r e s a w n o c h o i c e b u t t o i n c r e a s e c h a r g e s in t h e w a y p r o p o s e d ,
despite the d a m a g i n g p o l i t i c a l e f f e c t s .
In d i s c u s s i o n , i t w a s a r g u e d t h a t s e r i o u s p o l i t i c a l h a r m w a s b o u n d
to b e c a u s e d b y any i n c r e a s e in N H S c h a r g e s , w h i c h f o r m a n y
G o v e r n m e n t s u p p o r t e r s w e r e a n a r e a of u n i q u e s e n s i t i v i t y .
The
G o v e r n m e n t s o v e r r i d i n g p r i o r i t y m u s t be to m a i n t a i n the
e f f e c t i v e n e s s of t h e i r i n c o m e s p o l i c y ; opposition to the £6 l i m i t
w o u l d b e at i t s m a x i m u m i n t h e s p r i n g o f 1976, b y w h i c h t i m e t h e
further p r i c e i n c r e a s e s which w e r e unavoidable would be making
themselves felt.
It w a s t h e r e f o r e e s s e n t i a l to r e t a i n the confidence
o f t h e G o v e r n m e n t s s u p p o r t e r s g e n e r a l l y and o f t h e t r a d e u n i o n s i n
p a r t i c u l a r ; and f r o m t h a t p o i n t o f v i e w an i n c r e a s e n o w i n N H S
c h a r g e s , w h i c h c o u l d do n o t h i n g b u t h a r m t o the p r o s p e c t s o f
m a i n t a i n i n g a s u c c e s s f u l i n c o m e s p o l i c y , w o u l d b e an a c t o f p o l i t i c a l
recklessness.
In t h e s e c i r c u m s t a n c e s t h e l e s s e r e v i l w o u l d b e t o
p r o v i d e the n e c e s s a r y m o n e y b y i n c r e a s e d public s e c t o r b o r r o w i n g ,
b e a r i n g in m i n d that the a m o u n t i n v o l v e d w o u l d b e t o o s m a l l t o
undermine confidence.
I t w a s a l s o a r g u e d that t h e p r o p o s e d
i n c r e a s e in c h a r g e s w o u l d i n e f f e c t r e p r e s e n t a f u r t h e r d e f l a t i o n o f
t h e e c o n o m y b y £18 m i l l i o n at a t i m e w h e n , i n v i e w o f i n c r e a s i n g
unemployment, what was n e e d e d w a s probably a controlled reflation.
A n d i f i t w e r e u n a c c e p t a b l e to i n c r e a s e p u b l i c s e c t o r b o r r o w i n g ,
the n e c e s s a r y m o n e y m i g h t be r a i s e d by s e e k i n g s o m e n e w f o r m of
taxation w h i c h would m a k e p o s s i b l e a net i n c r e a s e in t a x r e v e n u e .
On t h e o t h e r hand, i t w a s a r g u e d t h a t t h e r e w o u l d b e g r e a t
d i f f i c u l t y in b o r r o w i n g on t h e s c a l e n e e d e d t o b r i d g e t h e a l r e a d y
w i d e g a p b e t w e e n p u b l i c e x p e n d i t u r e and r e v e n u e , and t h a t f u r t h e r
i n c r e a s e s in the b o r r o w i n g r e q u i r e m e n t m u s t b e a v o i d e d .
M o r e o v e r , e v e n i f s o m e r e f l a t i o n w e r e j u d g e d n e c e s s a r y the r i g h t
c o u r s e w o u l d n o t b e t o i n c r e a s e p u b l i c e x p e n d i t u r e b u t to r a i s e t h e
t a x t h r e s h o l d and t h u s r e d u c e t h e b u r d e n o f d i r e c t t a x a t i o n f a l l i n g
u p o n t h o s e e a r n i n g l o w e r i n c o m e s , w h i c h on p r e s e n t t r e n d s w a s
l i a b l e t o i n c r e a s e t o a d e g r e e w h i c h w o u l d b e j u d g e d i n t o l e r a b l e by­
m a n y of the G o v e r n m e n t s s u p p o r t e r s , including the t r a d e u n i o n s .
A n d even if there w e r e scope for i n c r e a s e d expenditure, there
w e r e s t r o n g a r g u m e n t s f o r the v i e w that the h i g h e s t p r i o r i t y
s h o u l d n o t b e g i v e n t o p r e v e n t i n g an i n c r e a s e i n N H S c h a r g e s ,
w h i c h w o u l d in f a c t d o n o m o r e than k e e p p a c e w i t h g e n e r a l
inflation.
It w o u l d b e q u i t e u n a c c e p t a b l e t o r e o p e n t h e b a s i s o f
w h a t t h e C a b i n e t h a d a l r e a d y a g r e e d in r e l a t i o n t o p u b l i c e x p e n d i t u r e
i n 1976-77, b e a r i n g in m i n d that m a n y M i n i s t e r s had in c o n s e q u e n c e
h a d t o t a k e and announce d i f f i c u l t and u n p o p u l a r d e c i s i o n s ,
s o m e t i m e s involving u n w e l c o m e r e a l l o c a t i o n s within t h e i r
departmental budgets,
In any e v e n t , i t w a s d o u b t f u l w h e t h e r N H S
c h a r g e s n o w a r o u s e d the s t r o n g e m o t i o n s w h i c h t h e y o n c e h a d .
M a n y G o v e r n m e n t s u p p o r t e r s w o u l d a c c e p t t h e i n c r e a s e s as
r e a s o n a b l e and n e c e s s a r y - i n d e e d , t h e y m i g h t h e l p t o s e c u r e w i d e r
r e c o g n i t i o n o f the s e r i o u s n e s s o f the e c o n o m i c s i t u a t i o n .
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, w h i l e
fully r e c o g n i s i n g the p o l i t i c a l d a n g e r s i n v o l v e d , a c l e a r m a j o r i t y of
t h e C a b i n e t a g r e e d that t h e r e w a s in p r e s e n t c i r c u m s t a n c e s n o
e f f e c t i v e a l t e r n a t i v e to p r o c e e d i n g f o r t h w i t h with the i n c r e a s e s in
N H S c h a r g e s p r o p o s e d b y t h e S e c r e t a r y of S t a t e f o r S o c i a l S e r v i c e s .
E v e n i f an a d d i t i o n a l £18 m i l l i o n c o u l d b y s o m e m e a n s b e m a d e
a v a i l a b l e , t o p p r i o r i t y w o u l d n o t n e c e s s a r i l y b e g i v e n to d e v o t i n g
i t to the a v o i d a n c e of i n c r e a s e s in N H S c h a r g e s .
The Cabinets
d e c i s i o n w o u l d h a v e t o b e p r e s e n t e d w i t h t h e g r e a t e s t c a r e , and t h e
c a r e f u l l y chosen c o n c e s s i o n s which the S e c r e t a r y of State had
p r o p o s e d w o u l d be v a l u a b l e in this c o n t e x t .
It w o u l d also be
d e s i r a b l e t h a t , in a n n o u n c i n g t h e i n c r e a s e s , she s h o u l d b o t h
e m p h a s i s e t h e i n c r e a s e w h i c h h a d t a k e n p l a c e in t h e r e a l c o s t o f t h e
N H S , and set the p r e s e n t i n c r e a s e in c h a r g e s f i r m l y a g a i n s t the
b a c k g r o u n d o f the d e g r e e o f g e n e r a l i n f l a t i o n w h i c h h a d t a k e n p l a c e
since the last i n c r e a s e .
I t m i g h t a l s o be h e l p f u l f o r any a n n o u n c e m e n t
i n P a r l i a m e n t t o b e t i m e d s o t h a t the S e c r e t a r y o f S t a t e w o u l d h a v e
an o p p o r t u n i t y on the s a m e d a y o f e x p l a i n i n g t h e d e c i s i o n t o the
Parliamentary Labour P a r t y .
6
The Cabinet
­
1.
T o o k n o t e , w i t h a p p r o v a l , o f the
P r i m e M i n i s t e r ' s s u m m i n g up of t h e i r
discussion.
2.
I n v i t e d the S e c r e t a r y of S t a t e f o r
S o c i a l S e r v i c e s , in c o n s u l t a t i o n w i t h the
S e c r e t a r i e s o f State f o r S c o t l a n d and f o r
W a l e s , to p r o c e e d a c c o r d i n g l y .
?
5.
T h e Cabinet had b e f o r e t h e m a note by the L o r d
President
o f the C o u n c i l ( C ( 7 5 ) 110) t o w h i c h w e r e a t t a c h e d r e v i s e d
drafts
o f T h e Q u e e n ' s S p e e c h e s o n t h e O p e n i n g o f the n e w S e s s i o n and on
the P r o r o g a t i o n of
Parliament,,
T H E P R I M E M I N I S T E R s a i d t h a t on 23 O c t o b e r t h e C a b i n e t had
a p p r o v e d the d r a f t Opening S p e e c h , s u b j e c t to a n u m b e r of
a m e n d m e n t s and a d d i t i o n s , and t h e d r a f t P r o r o g a t i o n S p e e c h
subject to one addition.
T h e s e c h a n g e s w e r e i n c o r p o r a t e d in t h e
r e v i s e d d r a f t s n o w b e f o r e the C a b i n e t .
The following points w e r e m a d e in discussion
-
P a r a g r a p h 12 o f t h e O p e n i n g S p e e c h , i n i t s r e v i s e d v e r s i o n ,
r e f e r r e d to "the p r e s e n t quite i n t o l e r a b l e l e v e l of
unemployment".
T h i s p h r a s e m i g h t subsequently be used
a g a i n s t the G o v e r n m e n t ,
r e p l a c e d by
and " q u i t e i n t o l e r a b l e " should b e
"unacceptable".
P a r a g r a p h 20 o f t h e O p e n i n g S p e e c h s a i d t h a t t h e G o v e r n m e n t
w o u l d b r i n g f o r w a r d " d e t a i l e d p r o p o s a l s " f o r the
e s t a b l i s h m e n t o f S c o t t i s h and W e l s h A s s e m b l i e s .
But a s
a r e s u l t o f t h e d a m a g i n g l e a k w h i c h h a d f o l l o w e d the
m e e t i n g o f t h e S t e e r i n g C o m m i t t e e on D e v o l u t i o n ( D S ) at
C h e q u e r s o n 2 4 O c t o b e r , the P r i m e M i n i s t e r h a d b e e n
o b l i g e d t o g i v e an a s s u r a n c e , w h e n r e p l y i n g t o Q u e s t i o n s
i n t h e H o u s e on 28 O c t o b e r , t h a t l e g i s l a t i o n w o u l d b e
i n t r o d u c e d a s e a r l y a s p o s s i b l e in the n e x t S e s s i o n .
In
v i e w of t h i s i t w o u l d b e n e c e s s a r y f o r t h e S p e e c h t o r e f e r
t o l e g i s l a t i o n r a t h e r than to " d e t a i l e d p r o p o s a l s " which
c o u l d i m p l y no m o r e t h a n a W h i t e P a p e r .
This was
h o w e v e r c o m p l i c a t e d b y the fact that M i n i s t e r s had
a c c e p t e d , and m i g h t h a v e to i n d i c a t e d u r i n g the debate on
the A d d r e s s , that i t w o u l d not be p o s s i b l e f o r the B i l l t o
r e a c h the Statute B o o k b y the end o f the S e s s i o n .
In a n y
c a s e it w a s d e s i r a b l e t o a l l o w a m p l e t i m e f o r public opinion
t o f o r m and t o b e t a k e n a c c o u n t o f .
In t h e s e c i r c u m s t a n c e s
it w a s n e c e s s a r y to a v o i d a f o r m o f w o r d s in T h e Q u e e n s
Speech w h i c h s e e m e d to suggest that the G o v e r n m e n t w e r e
c o m m i t t e d to no m o r e than the p u b l i c a t i o n of a White P a p e r
e a r l y in t h e S e s s i o n and at t h e s a m e t i m e a v o i d a c o m m i t m e n t
t o l e g i s l a t e by t h e e n d o f t h e S e s s i o n .
J
P a r a g r a p h 24 o f . t h e O p e n i n g S p e e c h s h o u l d s a y t h a t l e g i s l a t i o n
w o u l d b e i n t r o d u c e d " f o r a d e v e l o p m e n t l a n d t a x " so as t o
a v o i d the u s e of the w o r d
"impose".
P a r a g r a p h 11 o f t h e P r o r o g a t i o n S p e e c h s h o u l d r e f e r t o t h e
" d e v o t i o n " r a t h e r than t h e " i n t e g r i t y " o f t h e A r m e d
and the R o y a l U l s t e r
Forces
Constabulary.
T H E P R I M E M I N I S T E R , summing up the d i s c u s s i o n , said that the
C a b i n e t a p p r o v e d the d r a f t s o f t h e t w o Q u e e n ' s S p e e c h e s , s u b j e c t
t o the f u r t h e r a m e n d m e n t s w h i c h h a d b e e n a g r e e d .
He would now
s u b m i t t h e d r a f t s to T h e Q u e e n .
P a r a g r a p h 20 o f t h e O p e n i n g
S p e e c h w o u l d s a y that t h e G o v e r n m e n t w o u l d b r i n g f o r w a r d
" l e g i s l a t i v e p r o p o s a l s " f o r t h e e s t a b l i s h m e n t o f S c o t t i s h and W e l s h
Assemblies.
T h e t i m e t a b l e w o u l d then be that the W h i t e P a p e r
would b e published in N o v e m b e r o r D e c e m b e r .
The draft
D e v o l u t i o n B i l l would be published when r e a d y - p r o b a b l y in M a r c h
o r A p r i l o f 1976 - and a P a r l i a m e n t a r y d e b a t e on t h e s u b s t a n c e o f
the B i l l - n o t n e c e s s a r i l y a f o r m a l S e c o n d R e a d i n g d e b a t e , t h o u g h
t h i s w a s n o t e x c l u d e d - m i g h t b e a r r a n g e d i n the s u m m e r .
C o m m e n t s o n t h e B i l l and on t h e W h i t e P a p e r w o u l d then b e t a k e n
into a c c o u n t in the d r a f t i n g of the n e w B i l l which w o u l d b e i n t r o d u c e d
in the 1976-77 S e s s i o n .
T h e G o v e r n m e n t m i g h t b e c r i t i c i s e d on
b o t h t h e t i m i n g and c o n t e n t o f t h e i r d e v o l u t i o n plans,,
There
w e r e o f c o u r s e s o m e v e r y r e a l d i f f i c u l t i e s ; but i t w a s e s s e n t i a l
t h a t t h e w h o l e C a b i n e t s h o u l d p r e s e n t a u n i t e d f r o n t in s u p p o r t o f
the p o l i c i e s w h i c h w e r e a p p r o v e d and o f c o l l e a g u e s with
responsibility f o r devolution m a t t e r s .
The Cabinet
-
T o o k n o t e , with a p p r o v a l , o f the s u m m i n g up o f their d i s c u s s i o n by the P r i m e
Cabinet
Office
30 O c t o b e r 1975
9
Minister.