(c) crown copyright
Catalogue Reference:CAB/128/58/3
Image Reference:0001
CUMENT IS T H E P R O P E R T Y O F H E R B R I T A N N I C M A J E S T Y ' S G O V E R N M E N T
) 3rd
usiona
COPY NO
3J
CABINET
C O N C L U S I O N S of a M e e t i n g of t h e C a b i n e t
h e l d a t 10 D o w n i n g S t r e e t on
T H U R S D A Y 2 9 J A N U A R Y 1976
at 11. 30 a m
PRESENT
T h e R t Hon H a r o l d W i l s o n M P
P r i m e Minister
1
Hon E d w a r d S h o r t M P
r e s i d e n t of t h e C o u n c i l
T h e R t Hon J a m e s C a l l a g h a n M P
S e c r e t a r y of S t a t e f o r F o r e i g n and
Commonwealth Affairs
Hon L o r d E l w y n - J o n e s
Wcellor
T h e R t Hon R o y J e n k i n s M P
S e c r e t a r y of S t a t e f o r t h e H o m e
Department
Hon D e n i s H e a l e y M P
r of t h e E x c h e q u e r
T h e R t Hon M i c h a e l F o o t M P
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
Hon A n t h o n y W e d g w o o d B e n n M P
Y of S t a t e f o r E n e r g y
T h e R t Hon S h i r l e y W i l l i a m s M P
S e c r e t a r y of S t a t e f o r P r i c e s a n d
Consumer Protection
Hon B a r b a r a C a s t l e M P
"Y of S t a t e f o r S o c i a l S e r v i c e s
T h e R t Hon E r i c V a r l e y M P
S e c r e t a r y of S t a t e f o r I n d u s t r y
Hon P e t e r S h o r e M P
"Y of S t a t e f o r T r a d e
T h e R t Hon R o y M a s o n M P
S e c r e t a r y of S t a t e f o r D e f e n c e
Hon W i l l i a m R o s s M P
*Y of S t a t e f o r S c o t l a n d
T h e R t Hon J o h n M o r r i s Q C M P
S e c r e t a r y of S t a t e f o r W a l e s
Hon M e r l y n R e e B M P
of S t a t e f o r N o r t h e r n I r e l a n d
T h e R t Hon F r e d P e a r t 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
n Harold Lever MP
HOT of t h e D u c h y of L a n c a s t e r
The Rt Hon L o r d Shepherd
Lord Privy Seal
l l o
r
H o
HIS D O C U M E N T IS T H E P R O P E R T Y O F H E R B R I T A N N I C M A J E S T V S G O V E R N M E N T
COPY NO
CC(76) 3 r d
Conclusions
85
CABINET
C O N C L U S I O N S of a M e e t i n g of t h e C a b i n e t
h e l d a t 10 D o w n i n g S t r e e t on
T H U R S D A Y 2 9 J A N U A R Y 1976
a t 11. 30 a m
PRESENT
The R t Hon H a r o l d Wilson M P
P r i m e Minister
The Rt Hon E d w a r d Short M P
J-ord P r e s i d e n t of t h e C o u n c i l
T h e R t Hon J a m e s C a l l a g h a n M P
S e c r e t a r y of S t a t e f o r F o r e i g n a n d
Commonwealth Affairs
The R t H o n L o r d E l w y n - J o n e s
Lord Chancellor
The Rt Hon Roy Jenkins M P
S e c r e t a r y of S t a t e f o r t h e H o m e
Department
The R t H o n D e n i s H e a l e y M P
C h a n c e l l o r of t h e E x c h e q u e r
T h e R t Hon M i c h a e l F o o t M P
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
^he R t Hon Anthony Wedgwood Benn M P
icretary of S t a t e f o r E n e r g y
The R t Hon S h i r l e y W i l l i a m s M P
S e c r e t a r y of S t a t e f o r P r i c e s a n d
Consumer Protection
fhe R t H o n B a r b a r a C a s t l e M P
Jcretary of S t a t e f o r S o c i a l S e r v i c e s
T h e R t Hon E r i c V a r l e y M P
S e c r e t a r y of S t a t e f o r I n d u s t r y
*he R t H o n P e t e r S h o r e M P
i c r e t a r y of S t a t e f o r T r a d e
T h e R t Hon R o y M a s o n M P
S e c r e t a r y of S t a t e f o r D e f e n c e
*he R t H o n W i l l i a m R o s s M P
' c r e t a r y of S t a t e f o r S c o t l a n d
T h e R t Hon J o h n M o r r i s Q C M P
S e c r e t a r y of S t a t e f o r W a l e s
Jhe R t H o n M e r l y n R e e s M P
* c r e t a r y of S t a t e f o r N o r t h e r n I r e l a n d
T h e R t Hon F r e d P e a r t 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
£fce R t H o n H a r o l d L e v e r M P
* a n c e l l o r of t h e D u c h y of L a n c a s t e r
T h e R t Hon L o r d S h e p h e r d
Lord Privy Seal
The Rt Hon F r e d Mulley M P
S e c r e t a r y of S t a t e f o r E d u c a t i o n a n d
Science
The Rt Hon Reginald Prentice M P
M i n i s t e r for O v e r s e a s D e v e l o p m e n t
The R t Hon R o b e r t M e l l i s h M P
Parliamentary Secretary, Treasury
The R t Hon John Silkin M P
M i n i s t e r for P l a n n i n g a n d L o c a l G o v e r n m e n t
ALSO PRESENT
The Rt Hon S a m u e l Silkin QC M P
A t t o r n e y G e n e r a l ( I t e m 4)
SECRETARIAT
Sir
Mr
Mr
Mr
Mr
Mr
Mr
Mr
John Hunt
G R Denman
J A Hamilton
T F Brenchley
E T C Smith
J D Bryars
A D Gordon-Brown
A M Macpherson
( I t e m s 1 a n d 2)
( I t e m 5)
( I t e m s 2 a n d 3)
( I t e m s X a n d 2)
(Item 4)
( I t e m 1)
( I t e m 5)
C O N T E N T S
Item
1.
2.
Subject
Page
PARLIAMENTARY AFFAIRS
S e l e c t C o m m i t t e e on C y p r u s
1
D i r e c t Elections to the European Assembly
3
FOREIGN AFFAIRS
Angola
5
Chile
5
3.
ICELAND
6
4.
U R A N I U M S U P P L I E S F R O M NAMIBIA
9
5.
LONDON WEIGHTING F O R MINISTERS AND
OF PARLIAMENT
ii
MEMBERS
11
1.
T h e C a b i n e t w e r e i n f o r m e d of t h e b u s i n e s s t o b e t a k e n i n
t h e H o u s e of 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 noted that
i n the debate on u n e m p l o y m e n t that d a y the S p e a k e r w a s not expected
t o c a l l t h e a m e n d m e n t p u t d o w n b y m e m b e r s of t h e T r i b u n e G r o u p ,
b u t t h e r e w a s l i k e l y t o b e a v o t e on t h e G o v e r n m e n t M o t i o n .
It w a s
a l s o noted t h a t the Opposition might decide to vote a g a i n s t the Motion
o n fihii L c o d o n C o u n c i l l o r s O r d e r on 4 F e b r u a r y ,
T h e C a b i n e t d i s c u s s e d a p r o b l e m arising o v e r t h e r e - a p p o i n t m e n t
of l a s t S e s s i o n ' a S e l e c t C o m m i t t e e o n C y p r u s .
T h e G o v e r n m e n t h a d i n i t i a l l y r e s i s t e d the e s t a b l i s h m e n t of t h i s
C o m m i t t e e , but following c o n s i d e r a b l e p r e s s u r e the G o v e r n m e n t
had a g r e e d to its appointment j u s t b e f o r e the S u m m e r R e c e s s .
T h e S e l e c t C o m m i t t e e h a d n o t c o m p l e t e d i t s t a s k b y t h e e n d of t h e
Session, and wished to be re-appointed.
It h a d i n d i c a t e d that i t
would wish to c a l l for p a p e r s about d i p l o m a t i c e x c h a n g e s on C y p r u s ,
including our negotiations with the p r e v i o u s G o v e r n m e n t in C y p r u s ;
and a l s o to s u m m o 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 t o
g i v e e v i d e n c e i n p e r s o n a b o u t e v e n t s d u r i n g t h e C y p r u s c r i s i s of
1974, including in p a r t i c u l a r c o n v e r s a t i o n s he had with the T u r k i s h
P r i m e M i n i s t e r , M r . Ecevit. Following c o n s u l t a t i o n w i t h the
C h a i r m a n of t h e S e l e c t C o m m i t t e e a G o v e r n m e n t M o t i o n h a d b e e n
put down, b u t not m o v e d , to r e - a p p o i n t the C o m m i t t e e until E a s t e r
a n d t o e n a b l e i t to c o m p l e t e i t s r e p o r t , b u t w i t h o u t p o w e r s t o c a l l
for p e r s o n s , p a p e r s and r e c o r d s or to t r a v e l .
The other m e m b e r s
of t h e S e l e c t C o m m i t t e e h a d h o w e v e r b e e n a d a m a n t m a t i t m u s t
a l s o have power to send for p e r s o n s and p a p e r s , and t h e r e w a s
c o n s i d e r a b l e s u p p o r t for this view in the H o u s e and i n the
It w a s d i f f i c u l t t o s e e h o w t h i s
P a r l i a m e n t a r y Labour P a r t y .
d e m a n d c o u l d b e r e s i s t e d on t h i s o c c a s i o n : b u t t h e r e c o u l d b e n o
q u e s t i o n of 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 h a v i n g t o
a n s w e r on v e r y s e n s i t i v e m a t t e r s .
Not only would this c r e a t e a
m o s t u n d e s i r a b l e p r e c e d e n t but it would m a k e it m o r e difficult to
g e t a g r e e m e n t i n C y p r u s a n d c o u l d h a v e a s e r i o u s e f f e c t on the
North Atlantic Treaty Organisation.
i n d e e d to a c c e p t that Select
C o m m i t t e e s should be given information about confidential d i p l o m a t i c
e x c h a n g e s on s e n s i t i v e s u b j e c t s w o u l d m a k e d i p l o m a c y i m p o s s i b l e .
In d i s c u s s i o n i t w a s p o i n t e d out t h a t a n u m b e r of p r o b l e m s w e r e
c u r r e n t l y b e i n g e x p e r i e n c e d i n c o n s e q u e n c e of t h e m o r e f r e q u e n t
a p p o i n t m e n t of S e l e c t C o m m i t t e e s i n r e c e n t y e a r s .
S o m e of t h e i r
c h a i r m e n and m e m b e r s wished to m o v e towards a n A m e r i c a n
s y s t e m of C o n g r e s s i o n a l i n v e s t i g a t i o n ; a n d t h e r e w e r e p r o b l e m s
a r i s i n g f r o m t h e i n c r e a s i n g d e s i r e of S e l e c t C o m m i t t e e s t o t r a v e l
overseas.
T h e T r a d e a n d I n d u s t r y S u b - C o m m i t t e e of t h e S e l e c t
C o m m i t t e e on E x p e n d i t u r e , for i n s t a n c e , p r o p o s e d to t r a v e l to I r a n
i n t h e c o u r s e of i t s i n v e s t i g a t i o n of t h e C h r y s l e r a f f a i r a n d t o
q u e s t i o n I r a n i a n o f f i c i a l s w h o , if t h e y a g r e e d t o b e q u e s t i o n e d , m i g h t
1
l o o k f o r r e c i p r o c i t y if t h e G o v e r n m e n t of I r a n w i s h e d t o i n v e s t i g a t e
t h e p e r f o r m a n c e of B r i t i s h firms w i t h c o n t r a c t s t h e r e .
It w o u l d b e
undesirable that Select C o m m i t t e e s should obtain m o r e information
f r o m M i n i s t e r s m a n t h e y w o u l d f e e l a b l e t o g i v e on t h e f l o o r of t h e
H o u s e ; and i t w a s equally u n s a t i s f a c t o r y that M i n i s t e r s should be
e x p e c t e d to attend upon S e l e c t C o m m i t t e e s t o be a s k e d questions
which they w e r e not p r e p a r e d to a n s w e r .
THE PRIME MINISTER, s u m m i n g up the d i s c u s s i o n , s a i d that he
would that evening be seeing M r Du Cann, in his c a p a c i t y a s
C h a i r m a n of t h e G r o u p of S e l e c t C o m m i t t e e C h a i r m e n , a b o u t t h e
need for the G o v e r n m e n t to maintain i t s collective r e s p o n s i b i l i t y
in Ministerial appearances before Select Committees.
He would
take the opportunity a l s o t o mention to h i m the p r o b l e m s that w e r e
o c c u r i n g in r e l a t i o n to Cyprus and I r a n .
The Cabinet had e a r l i e r
b e e n d i s p o s e d n o t t o r e f e r the g e n e r a l q u e s t i o n of M i n i s t e r i a l
a p p e a r a n c e s before S e l e c t C o m m i t t e e s to a C o m m i t t e e on P r o c e d u r e ,
but it w a s for c o n s i d e r a t i o n whether t h e r e m i g h t be i n f o r m a l
d i s c u s s i o n s on P r i v y C o u n s e l l o r t e r m s w i t h t h e O p p o s i t i o n l e a d e r s
w h o c o u l d b e e x p e c t e d t o b e r e s p o n s i v e t o t h e d a n g e r s of a t t e m p t e d
m o v e s towards a C o n g r e s s i o n a l s y s t e m and enquiries touching upon
sensitive diplomatic issues.
If the S e l e c t C o m m i t t e e o n C y p r u s
w e r e to be r e - a p p o i n t e d - and this p r o b a b l y could not be avoided ­
it should be p o s s i b l e to adopt the line that i n f o r m a t i o n could not be
g i v e n t o t h e S e l e c t C o m m i t t e e if it c o u l d n o t b e g i v e n t o t h e H o u s e .
The Cabinet w e r e not, h o w e v e r , yet in a position to c o m e t o a final
v i e w on t h e r e - e s t a b l i s h m e n t a n d p o w e r s of t h e S e l e c t C o m m i t t e e ;
if t h e r e f o r e t h i s w a s r a i s e d a t the P a r t y m e e t i n g t h a t d a y i t s h o u l d
b e e x p l a i n e d t h a t t h e r e w e r e r e a l p r o b l e m s r e l a t i n g t o t h e t a k i n g of
f u r t h e r e v i d e n c e a n d t h a t if n e c e s s a r y a s t a t e m e n t w o u l d b e m a d e a t
a subsequent meeting.
He would h i m s e l f a r r a n g e for a n e x a m i n a t i o n ,
i n c o n j u n c t i o n w i t h o t h e r M i n i s t e r s d i r e c t l y c o n c e r n e d , of t h e
g e n e r a l p r o b l e m s relating to Select C o m m i t t e e s which had b e e n
r a i s e d in discussion; better control over o v e r s e a s visits might be
a c h i e v e d b y r e q u i r i n g the s p e c i f i c p e r m i s s i o n of t h e H o u s e o n e a c h
occasion.
The Cabinet ­
1.
T o o k note, w i t h a p p r o v a l , of t h e P r i m e M i n i s t e r s
s u m m i n g u p of t h e i r d i s c u s s i o n .
2
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 a i d t h a t he
h a d w r i t t e n t o the C h i e f W h i p s of t h e o t h e r p a r t i e s i n P a r l i a m e n t ,
a n d s i m i l a r l y t o t h e G e n e r a l S e c r e t a r y of t h e L a b o u r P a r t y a n d t o
t h e C h a i r m a n of t h e P a r l i a m e n t a r y L a b o u r P a r t y ( P L P ) , t e l l i n g
t h e m t h a t h e w a s t h i n k i n g of t a b l i n g p r o p o s a l s o n d i r e c t e l e c t i o n s t o
the E u r o p e a n A s s e m b l y a s a b a s i s for e a r l y d e b a t e in P a r l i a m e n t ,
i n d i c a t i n g b r i e f l y t h e l i k e l y s c o p e of t h e p r o p o s a l s , a n d i n v i t i n g
their views.
T h e p r o p o s a l s w o u l d p r o b a b l y t a k e t h e f o r m of a
White P a p e r : however, while s o m e i s s u e s , m a i n l y those to be
d e c i d e d on a C o m m u n i t y b a s i s , w o u l d r e q u i r e r e a s o n a b l y f i r m
d e c i s i o n s , t h o s e for s u b s e q u e n t n a t i o n a l d e c i s i o n c o u l d b e d e a l t
w i t h m o r e t e n t a t i v e l y a n d m o r e c l o s e l y i n f o r m to a G r e e n P a p e r .
T h e C a b i n e t w e r e i n f o r m e d t h a t t h e L i a i s o n C o m m i t t e e of t h e P L P
h a d a s k e d t h a t a n y d e b a t e i n t h e H o u s e of C o m m o n s s h o u l d b e
d e f e r r e d u n t i l a f t e r a P L P d i s c u s s i o n of t h e p r o p o s a l s , a n d i t
w o u l d b e s e n s i b l e for t h a t d i s c u s s i o n t o b e a r r a n g e d w h e n t h o s e P L P
m e m b e r s w h o w e r e a l s o m e m b e r s of t h e E u r o p e a n A s s e m b l y c o u l d
attend.
I t w a s i n t e n d e d t h a t t h e d i s c u s s i o n s h o u l d t a k e t h e f o r m of
a n e x p r e s s i o n of v i e w s , a n d n o t l e a d t o a v o t e .
Since the next
m e e t i n g of t h e E u r o p e a n C o u n c i l , a t w h i c h t h e H e a d s of G o v e r n m e n t
of t h e M e m b e r S t a t e s of t h e 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 w e r e
e x p e c t e d t o t a k e d e c i s i o n s o n a n u m b e r of t h e s e m a t t e r s , h a d b e e n
d e f e r r e d until 1 and. 2 A p r i l , it should be p o s s i b l e to m e e t this
request.
In d i s c u s s i o n i t w a s s u g g e s t e d t h a t , g i v e n t h e c o n s i d e r a b l e
i m p o r t a n c e a n d k n o w n d i f f e r e n c e s of v i e w s o n t h i s m a t t e r , i t w o u l d
h a v e b e e n b e t t e r for the Cabinet to h a v e d i s c u s s e d the i s s u e and to
have formed a view before consultations w e r e entered into with
other parties.
On the other hand it w a s explained t h a t t h e s e
c o n s u l t a t i o n s would not involve negotiations but would g a t h e r v i e w s .
It w o u l d b e s e n s i b l e for t h i s t o b e d o n e b e f o r e t h e C a b i n e t c o n s i d e r e d
t h e t e x t of a W h i t e P a p e r a n d a p p r o v e d i t f o r p u b l i c a t i o n .
All those
c o n c e r n e d had b e e n p r o m i s e d full c o n s u l t a t i o n ; the p r o c e d u r e b e i n g
followed had b e e n indicated in a n s w e r s t o Q u e s t i o n s i n the House by
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 o n 17 D e c e m b e r a n d t h e
P r i m e M i n i s t e r on 27 J a n u a r y , a n d h a d s e e m e d t o m e e t w i t h
a p p r o v a l f r o m t h o s e l i k e l y t o h a v e d i f f e r i n g v i e w s on t h e m e r i t s of
the i s s u e .
A d r a f t of t h e W h i t e P a p e r h a d b e e n c i r c u l a t e d t o t h e
C a b i n e t u n d e r t h e c o v e r of a m e m o r a n d u m (C(76) 2) b y t h e F o r e i g n
and Commonwealth S e c r e t a r y and the Home S e c r e t a r y : but this had
n o t of c o u r s e b e e n s e n t t o t h e p o l i t i c a l p a r t i e s w h o s e v i e w s w e r e
being sought.
W i t h t h e d e f e r m e n t of t h e d a t e of t h e E u r o p e a n
Council, t h e r e w a s no n e e d for the C a b i n e t to c o n s i d e r the d r a f t
White P a p e r now, but it should do so when a finalised text, a m e n d e d
a s n e c e s s a r y i n t h e l i g h t of t h e v i e w s e x p r e s s e d i n t h e c o n s u l t a t i o n s ,
was available.
3
T H E P R I M E M I N I S T E R , s u m m i n g u p t h i s p a r t of t h e d i s c u s s i o n ,
s a i d t h a t t h e 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 h o u l d a i m t o
c o m p l e t e h i s c o n s u l t a t i o n s w i t h t h e o t h e r p a r t i e s w i t h i n the n e x t
two w e e k s .
He and the Home S e c r e t a r y should then c i r c u l a t e the
t e x t of t h e W h i t e p a p e r , r e v i s e d a s n e c e s s a r y t o t a k e i n t o a c c o u n t
t h e v i e w s e x p r e s s e d , for t h e C a b i n e t t o c o n s i d e r w i t h a v i e w t o
p u b l i c a t i o n i n t h e l a t t e r p a r t of F e b r u a r y . A m e e t i n g of t h e P L P
s h o u l d b e a r r a n g e d t o d i s c u s s the i s s u e b e f o r e a d e b a t e i n t h e
H o u s e of C o m m o n s .
In the m e a n t i m e 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 h o u l d c i r c u l a t e t o o t h e r m e m b e r s of t h e
C a b i n e t t h e t e x t of h i s l e t t e r t o t h e o t h e r p o l i t i c a l p a r t i e s .
The Cabinet ­
2.
T o o k n o t e , w i t h a p p r o v a l , of t h e P r i m e M i n i s t e r ' 8
s u m m i n g u p of t h e d i s c u s s i o n .
4
i
FOREIGN
AFFAIRS
Angola
1
I
1
i
I
I
J
I
!
2.
THE FOREIGN AND C O M M O N W E A L T H S E C R E T A R Y said
t h a t t h e P o p u l a r M o v e m e n t f o r t h e L i b e r a t i o n of A n g o l a ( M P L A ) ,
with Soviet and Cuban support, w e r e now c l e a r l y getting the u p p e r
hand in the Angolan fighting.
A s m a n y a s 1 2 , 0 0 0 C u b a n s w e r e now
i n A n g o l a o r on the w a y t h e r e .
The South Africans w e r e disengaging:
t h e y h a d of c o u r s e n e v e r a d m i t t e d t h e i r i n v o l v e m e n t .
The A m e r i c a n
S e c r e t a r y of S t a t e , D r K i s s i n g e r , h a d m a d e n o h e a d w a y i n h i s e f f o r t s
to p e r s u a d e the Soviet Union to w i t h d r a w t h e i r s u p p o r t f r o m the M P L A .
T h e S o v i e t M i n i s t r y of F o r e i g n A f f a i r s h a d t o l d o u r A m b a s s a d o r t h a t
t h e i r i n t e r v e n t i o n h a d b e e n a t t h e r e q u e s t of t h e M P L A w h o m t h e y h a d
long supported.
They saw no r e a s o n not to continue to do s o .
The
S o u t h A f r i c a n s c o u l d t a k e n o c o m f o r t f r o m t h e i n d e c i s i v e o u t c o m e of
t h e C o u n c i l of t h e O r g a n i s a t i o n of A f r i c a n U n i t y s i n c e t h o s e A f r i c a n
States which had not recognised the M P L A w e r e likely to change
t h e i r s t a n c e one b y one b e f o r e v e r y l o n g .
Although a g o v e r n m e n t
c o m p o s e d of t h e t h r e e f a c t i o n s i n A n g o l a , f o r w h i c h h e h a d h o p e d ,
w a s n o w unlikely, he still hoped that the M P L A m i g h t s e e the w i s d o m
of f o r m i n g a g o v e r n m e n t of n a t i o n a l r e c o n c i l i a t i o n , i n c l u d i n g s o m e
r e p r e s e n t a t i v e s of t h e t r i b e s w h i c h h a d o p p o s e d t h e m , s i n c e m i l i t a r y
v i c t o r y would o t h e r w i s e not end t h e i r p r o b l e m s .
O u r own policy
s h o u l d b e t o c o n t i n u e l o w l e v e l coo.ta.cta w i t h the M P L A , a n d t o g o on
p r e s s i n g p u b l i c l y f o r t h e w i t h d r a w a l of a l l e x t e r n a l f o r c e s .
He had
c o n s i d e r e d s e v e r a l t i m e s t h e p o s s i b i l i t y of r a i s i n g t h e i s s u e i n t h e
United Nations S e c u r i t y Council but had decided that it would be
u n w i s e t o d o s o a g a i n s t t h e e x p r e s s w i s h of t h e A f r i c a n G o v e r n m e n t s
w h o , w i t h t h e e x c e p t i o n of Z a i r e , h a d u n a n i m o u s l y o p p o s e d U n i t e d
Nations involvement in the d i s p u t e .
We had t o r e c o g n i s e that m a n y
A f r i c a n S t a t e s m u s t now b e f e e l i n g i n s e c u r e u n d e r t h e i m p a c t of w h a t ,
i n E a s t / W e s t t e r m s , could only be r e g a r d e d a s a m a j o r S o v i e t
success.
T h e r e w o u l d a l s o b e r e p e r c u s s i o n s on t h e C h i n e s e p o s i t i o n
in Africa which had been built up with g r e a t skill but would now be
weakened: this was already heightening the dispute b e t w e e n China
a n d the Soviet Union.
T h e o n l y r a y of h o p e w a s t h a t , if t h e M P L A
finally p r e v a i l e d , other African G o v e r n m e n t ' s would subsequently
p u t p r e s s u r e o n t h e M P L A f o r t h e w i t h d r a w a l of t h e R u s s i a n s a n d
Cubans.
The Cabinet ­
1.
T o o k n o t e of t h e s t a t e m e n t b y t h e F o r e i g n
and Commonwealth Secretary.
I
j
!
I
j
T h e r e w a s a b r i e f d i s c u s s i o n of t h e p r o p o s a l f o r a l o a n of s o m e
$33 million to Chile from the International Bank for Reconstruction
a n d D e v e l o p m e n t (IBRD) f o r a c o p p e r p r o j e c t .
It w a s explained
that, in keeping with the G o v e r n m e n f s f i r m policy t o w a r d s the
p r e s e n t C h i l e a n G o v e r n m e n t , t h e U n i t e d K i n g d o m r e p r e s e n t a t i v e s on
international bodies consistently refrained from supporting proposals
for e c o n o m i c a s s i s t a n c e to C h i l e .
O u r r e p r e s e n t a t i v e i n the IBRD
5
would c o n s e q u e n t l y a b s t a i n in the v o t e on the p r o p o s e d l o a n for the
c o p p e r project, and it was well understood in i n t e r n a t i o n a l banking
c i r c l e s that such abstention, c o m b i n e d with a s t a t e m e n t in
e x p l a n a t i o n of v o t e , w a s e q u i v a l e n t t o a n a d v e r s e v o t e .
It w a s
a r g u e d t h a t this would not be u n d e r s t o o d by the g e n e r a l public and
t h a t i t w o u l d b e b e t t e r for o u r r e p r e s e n t a t i v e t o v o t e a g a i n s t t h e l o a n .
On t h e o t h e r h a n d , t h e p o i n t w a s m a d e t h a t d e c i s i o n s on l o a n s b y t h e
I n t e r n a t i o n a l Bank w e r e taken on s t r i c t e c o n o m i c c r i t e r i a which this
p a r t i c u l a r loan w a s likely to satisfy.
It w a s i m p o r t a n t t o the
U n i t e d K i n g d o m , on w i d e r g r o u n d s , t o s u p p o r t t h e g e n e r a l p o l i c y t h a t
political factors should not be allowed to sway IBRD d e c i s i o n s .
The Cabinet ­
2.
Took note.
3.
THE PRIME MINISTER said that the negotiations with the
Icelandic P r i m e Minister, Mr Hallgrimeson, and his delegation had
b e e n b o t h f u l l a n d s e r i o u s : i n t h e c o u r s e of f o u r d a y s t h e y h a d
extended for m o r e than sixteen h o u r s .
M u c h of t h e d i f f i c u l t y i n t h e m
a r o s e f r o m t h e w e a k p o s i t i o n of M r H a l l g r i m s s o n a s Hie h e a d of a
coalition administration.
Paradoxically, this weakness made h i m
e x t r e m e l y tough in b a r g a i n i n g , since h e knew that a n y other attitude
would involve his a l m o s t c e r t a i n fall f r o m power.
He had brought
w i t h h i m t h e l e a d e r of t h e m i n o r i t y P a r t y i n h i s c o a l i t i o n ,
M r T h o r a r i n s s o n , whose attitude had been even tougher.
We h a d
a c k n o w l e d g e d t h e i m p o r t a n c e of c o n s e r v a t i o n of c o d s t o c k s a n d ,
although t h e r e had been s o m e d i s a g r e e m e n t between the scientists
about the d e s i r a b l e c a t c h figure for 1976, it had s e e m e d p o s s i b l e
t h a t the two d e l e g a t i o n s m i g h t have r e a c h e d s o m e c o m p r o m i s e figure
on this key point.
It w a s then n e c e s s a r y t o e s t a b l i s h a b a s i s for the
d i v i s i o n of t h i s c a t c h b e t w e e n t h e U n i t e d K i n g d o m a n d I c e l a n d ,
allowing a s m a l l p r o p o r t i o n for t h i r d c o u n t r i e s .
A f t e r d i s c u s s i o n of
m a n y possible f o r m u l a e , our final p r o p o s a l to the I c e l a n d e r s w a s
t h a t t h e y s h o u l d fix t h e t o t a l a l l o w a b l e c a t c h , of w h i c h t h e U n i t e d
K i n g d o m would h a v e the r i g h t to a specific p r o p o r t i o n , s u b j e c t to this
p r o p o r t i o n falling within a fairly n a r r o w r a n g e between a g r e e d
minimum and maximum tonnages.
The proportion we had suggested
w a s 28 p e r c e n t , a n d i n d o i n g s o w e h a d h a d i t i n m i n d t h a t a s u i t a b l e
c o m p r o m i s e f i g u r e f o r t h e t o t a l a l l o w a b l e c a t c h m i g h t b e of t h e o r d e r
of 2 6 5 , 000 t o n s of c o d .
In addition t o cod, our t r a w l e r s would c a t c h
v a r y i n g q u a n t i t i e s of c e r t a i n o t h e r s p e c i e s , p e r h a p s a m o u n t i n g t o
1 0 , 000 t o n e i n a l l , t h o u g h t h e s e w e r e m a i n l y of l o w v a l u e .
The
p r e c i s e c a t c h figure to which s u c h a f o r m u l a would lead w a s one which
t h e 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 a n d F o o d h a d c o n s i d e r e d
a c c e p t a b l e to the B r i t i s h fishing i n d u s t r y .
Mr Hallgrimsson had
a s k e d for time to d i s c u s s m i s p r o p o s a l with his Cabinet colleagues,
6
a n d t o c o v e r t h e I n t e r i m p e r i o d of a f e w d a y s w e h a d w o r k e d out w i t h
the Icelandic delegation a n a r r a n g e m e n t for the t e m p o r a r y c e s s a t i o n
of h a r a s s m e n t of o u r t r a w l e r s , b a l a n c e d b y a r e d u c t i o n i n t h e
n u m b e r of t r a w l e r s t o t h i r t y .
Mr Hallgrimsson had not been able
to a g r e e e v e n to this i n t e r i m a r r a n g e m e n t without r e f e r e n c e to h i s
c o l l e a g u e s on h i s r e t u r n t o R e y k j a v i k , b u t h a d p r o m i s e d a r e p l y on
i t b y m i d d a y o n 28 J a n u a r y : i n t h e e v e n t h e h a d t h e n h a d t o a s k f o r
a f u r t h e r d e l a y of t w e n t y - f o u r h o u r s .
T H E 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 a i d that our
offer h a d b e e n a n e x t r e m e l y r e a s o n a b l e o n e .
In e f f e c t w e w e r e
p r o p o s i n g t h a t the Icelandic fishing i n d u s t r y should m a k e a s h o r t t e r m
s a c r i f i c e , p e r h a p s of o n l y o n e y e a r , a f t e r w h i c h s u b s t a n t i a l l y i n c r e a s e d
c a t c h e s would a c c r u e to the Icelandic i n d u s t r y .
N e v e r t h e l e s s , he
thought i t l i k e l y t h a t the Icelandic P r i m e M i n i s t e r would be inhibited
b y t h e w e a k n e s s of h i s i n t e r n a l p o s i t i o n f r o m a c c e p t i n g e v e n a v e r y
r e a s o n a b l e offer.
If i n c o n s e q u e n c e w e h a d t o r e t u r n t o p r o v i d i n g
n a v a l p r o t e c t i o n for our t r a w l e r s , c e r t a i n i n t e r n a t i o n a l c o n s e q u e n c e s
w e r e v i r t u a l l y c e r t a i n t o f o l l o w , r e g a r d l e s s of t h e r i g h t s a n d w r o n g s
of t h e i s s u e s i n d i s p u t e .
T h e I c e l a n d i c G o v e r n m e n t w o u l d b r e a k off
d i p l o m a t i c r e l a t i o n s with the United Kingdom.
They would renew
t h o i r p r o t e s t s to the N o r t h Atlantic T r e a t y O r g a n i s a t i o n (NATO) a n d
the United Nations, would p r o b a b l y c e a s e to p a r t i c i p a t e i n N A T O
m e e t i n g s and would p e r h a p s threaten to withdraw f r o m the A l l i a n c e ,
T h e r e w o u l d t h e n b e h e a v y N A T O p r e s s u r e on UB t o m a k e c o n c e s s i o n s
and we should be faced with the a r g u m e n t f r o m our allies that NATO
f a c i l i t i e s on I c e l a n d w e r e w o r t h f a r m o r e t h a n 10, 0 0 0 o r 2 0 , 0 0 0 t o n s
of f i s h .
THE MINISTER OF AGRICULTURE, FISHERIES AND FOOD said that
a c r i t i c a l s i t u a t i o n h a d a r i s e n o n t h e f i s h i n g g r o u n d s off I c e l a n d .
The Icelandic c o a s t g u a r d v e s s e l s w e r e patrolling so c l o s e l y a r o u n d
o u r t r a w l e r s that no fishing had b e e n p o s s i b l e for the l a s t f o r t y - e i g h t
hours.
If M r H a l l g r i m s s o n a c c e p t e d t h e i n t e r i m a r r a n g e m e n t i t
w o u l d s t i l l r e m a i n t o b e s e e n w h e t h e r h e c o u l d c a r r y o u t h i s s i d e of
the b a r g a i n .
If h e f a i l e d t o d o s o , w e s h o u l d b e f a c e d w i t h t w o
choices.
W e r e we to r e s u m e n a v a l p r o t e c t i o n ? o r , failing that,
would we c o m p e n s a t e the f i s h e r m e n for t h e i r financial l o s s e s ?
In d i s c u s s i o n it w a s a r g u e d that the p r o b l e m which we w e r e facing
m i g h t n o t l a s t b e y o n d J u l y o r A u g u s t , d e p e n d i n g u p o n t h e o u t c o m e of
t h e s e s s i o n of t h e U n i t e d N a t i o n s L a w of t h e S e a C o n f e r e n c e w h i c h
w a s due to open in M a r c h .
T h e r e w e r e i n c e n t i v e s for the I c e l a n d e r s
to r e a c h a g r e e m e n t with u s .
If t h e y f a i l e d t o d o s o , w e s h o u l d c a t c h
u n d e r p r o t e c t i o n a t a n a n n u a l r a t e of 1 0 0 , 0 0 0 o r e v e n 1 2 0 , 0 0 0 t o n s of
cod.
And without a n a g r e e m e n t with us they could not obtain the
m o r e favourable a c c e s s to C o m m u n i t y m a r k e t s which would be open
t o t h e m u n d e r P r o t o c o l 6 of t h e i r a g r e e m e n t w i t h t h e E u r o p e a n
Economic Community.
Should i t b e c o m e c l e a r that d i r e c t
7
n e g o t i a t i o n s h a d f a i l e d , t h e r e w o u l d r e m a i n t h e p o s s i b i l i t y of
m e d i a t i o n , with Sweden a s a suitable c a n d i d a t e for m e d i a t o r .
If
t h e I c e l a n d e r s w e r e t o o w e a k e v e n t o a c c e p t m e d i a t i o n , t h e offer
of i t w o u l d c o u n t t o o u r c r e d i t i n N A T O .
T H E P R I M E MINISTER, s u m m i n g up the d i s c u s s i o n , r e f e r r e d to a
R e u t e r s m e s s a g e w h i c h h a d b e e n r e c e i v e d i n t h e c o u r s e of t h e
discussion.
This r e p o r t e d the Icelandic c o a s t g u a r d v e s s e l s a s
h a v i n g r e c e i v e d i n s t r u c t i o n s t o c e a s e h a r a s s m e n t of o u r t r a w l e r s .
I m m e d i a t e s t e p s s h o u l d b e t a k e n t o s e e k c o n f i r m a t i o n of t h e
a u t h e n t i c i t y of t h i s r e p o r t .
If i t p r o v e d t r u e , i t w o u l d i n f l u e n c e
our f i s h e r m e n to a c c e p t the i n t e r i m a r r a n g e m e n t for fishing in
reduced numbers.
If p r o v e d u n t r u e , t h e n e i t h e r t h e t r a w l e r s
m i g h t c a r r y o u t t h e i r t h r e a t t o w i t h d r a w f r o m w a t e r s off I c e l a n d ,
o r e l s e h a r a s s m e n t would sooner o r l a t e r lead to w a r p cutting
incidents.
In the l a t t e r event it would n o doubt p r o v e n e c e s s a r y
to s e n d b a c k o u r f r i g a t e s t o p r o v i d e p r o t e c t i o n , b u t t h i s w a s n o t
a d e c i s i o n w h i c h s h o u l d b e t a k e n n o w i n v i e w of t h e o b s c u r i t i e s of t h e
position.
The Cabinet T o o k n o t e , w i t h a p p r o v a l , of t h e P r i m e
s u m m i n g u p of t h e i r d i s c u s s i o n .
8
Ministers
'RANIUM S U P P L I E S
R.OM NAMIBIA
4.
THE PRIME MINISTER said that a decision w a s needed
b e f o r e t h e e n d of t h e m o n t h w h e t h e r B r i t i s h N u c l e a r F u e l s L t d
( B N F L ) s h o u l d b e a u t h o r i s e d t o t a k e u p a n o p t i o n f o r s u p p l y of
a n a d d i t i o n a l 1 , 1 0 0 t o n s of u r a n i u m f r o m N a m i b i a i n 1 9 7 7 - 8 2
under their p r e s e n t contract with RosBing U r a n i u m L t d .
The
S e c r e t a r y of S t a t e f o r E n e r g y c o n s i d e r e d t h a t t h i s a u t h o r i t y s h o u l d
not be given.
T h e m a j o r i t y of t h e D e f e n c e a n d O v e r s e a P o l i c y
C o m m i t t e e , by w h o m the subject had b e e n c o n s i d e r e d , took the
opposite view.
The C o m m i t t e e had decided however that, since
the i s s u e was politically sensitive, it should be r a i s e d at Cabinet.
T h e r e l e v a n t m i n u t e s a n d p a p e r s of t h e D e f e n c e a n d O v e r s e a
Policy Committee had accordingly been m a d e available to m e m b e r s
of I h e C a b i n e t a n d w i t h h i s a g r e e m e n t t h e S e c r e t a r y of S t a t e f o r
E n e r g y had circulated an aide m e m o i r e e x p r e s s i n g his v i e w s .
THE SECRETARY O F STATE FOR ENERGY said that when
M i n i s t e r s had taken t h e i r d e c i s i o n s on the Roe sing c o n t r a c t s in
1968 and 1970 t h e y had not b e e n a w a r e t h a t u r a n i u m s u p p l i e d
f r o m South Africa would come f r o m N a m i b i a or that the South
A f r i c a n g o v e r n m e n t w o u l d h a v e a p o w e r of v e t o o v e r s u c h s u p p l i e s .
A l s o t h e e s t i m a t e t h e n m a d e of t h e u r g e n c y of o u r n e e d f o r
a d d i t i o n a l u r a n i u m had p r o v e d to have b e e n o v e r e s t i m a t e d .
The
a t t i t u d e of t h e L a b o u r P a r t y i n O p p o s i t i o n t o t h e R o s s i n g c o n t r a c t
w a s on r e c o r d .
I n 1974 i t h a d b e e n d e c i d e d t h a t t h e c o n t r a c t
should not be t e r m i n a t e d but t h e r e had been i m p o r t a n t changes
since that time.
T h e U n i t e d N a t i o n s v i e w s on N a m i b i a h a d
strengthened.
E v e n t s i n A n g o l a h a d p u t t h e s e c u r i t y of s u p p l i e s
f r o m N a m i b i a in s o m e doubt.
The South West Africa People"s
O r g a n i s a t i o n (SWAPO) had e x p r e s s e d publicly t h e i r oppoeition t o
the c o n t r a c t .
And the slowing down w o r l d wide in n u c l e a r power
p r o g r a m m e s had given us a little m o r e time i n which to d e c i d e our
policy.
H i s v i e w w a s that B N F L should not b e a u t h o r i s e d to take
up the option open to them under their p r e s e n t c o n t r a c t with
R o s s i n g , supplies under which would in any event be s m a l l in
r e l a t i o n to our total needs; that we should d i s c u s s with the
United Nations Council for N a m i b i a and with SWAPO w h e t h e r
s a t i s f a c t o r y a r r a n g e m e n t s could be a r r i v e d at; and that we should
be p r e p a r e d to seek uranium elsewhere than in Namibia.
T H E P R I M E M I N I S T E R s a i d t h a t t h e m a j o r i t y of t h e D e f e n c e a n d
O v e r s e a Policy C o m m i t t e e was opposed to the r e c o m m e n d a t i o n s
m a d e b y t h e S e c r e t a r y of S t a t e f o r E n e r g y , a n d t h e i r v i e w h a d b e e n
b a s e d o n a c a r e f u l a n a l y s i s of o u r f u t u r e n e e d s f o r u r a n i u m a n d t h e
a v a i l a b i l i t y of s o u r c e s of s u p p l y o u t s i d e N a m i b i a .
The Committee
h a d t a k e n i n t o a c c o u n t t h e a d v i c e of t h e L a w O f f i c e r s t h a t o u r
c o n t r a c t s in Namibia w e r e not c o n t r a r y to our obligations under
United Nations R e s o l u t i o n s , and they had noted a l s o that by the
t i m e s u p p l i e s of u r a n i u m u n d e r t h e o p t i o n b e c a m e a v a i l a b l e
9
N a m i b i a w a s unlikely still to be under South African c o n t r o l .
T h e r e w a s i n h i s v i e w n o i m m e d i a t e p r o s p e c t of o b t a i n i n g e l s e w h e r e
e v e n t h e r e l a t i v e l y s m a l l q u a n t i t i e s of u r a n i u m w h i c h w o u l d b e
provided u n d e r the option.
Canada and A u s t r a l i a for e x a m p l e
h a d a d o p t e d a v e r y r e s t r i c t i v e a t t i t u d e t o w a r d s e x p o r t s of u r a n i u m ,
a n d a n y s a l e s b y t h e m w e r e l i k e l y t o b e of u r a n i u m i n i t s
p r o c e s s e d f o r m , which w a s costly and not suitable for a l l our
generating stations.
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 , a l t h o u g h t h e p r o c e e d i n g s of t h e
United Nations Council for N a m i b i a w e r e not binding on u s , we
should pay s e r i o u s r e g a r d to the v i e w s e x p r e s s e d a t the United
N a t i o n s a n d a l s o t o t h e a t t i t u d e of A f r i c a n c o u n t r i e s .
Opposition
t o t h e p o l i c i e s of S o u t h A f r i c a w a s l i k e l y t o g r o w m o r e i n t e n s e i n
the y e a r s i m m e d i a t e l y a h e a d and it would not be in our i n t e r e s t s
t o p l a c e o u r s e l v e s i n t h e m i n o r i t y of w o r l d o p i n i o n .
Moreover
S o u t h W e s t A f r i c a w a s i n a s t a t e of c h a n g e a n d p r e s s u r e f o r
Namibian independence was growing.
There was a positive need
t o e n s u r e t h a t o u r s u p p l y of u r a n i u m w a s s e c u r e a n d w a s n o t p u t a t
r i s k by these developments.
E c o n o m i c a l l y t h e a m o u n t of u r a n i u m
w h i c h w e w o u l d o b t a i n u n d e r t h e o p t i o n w a s of r e l a t i v e l y s m a l l
v a l u e t o u s b u t t h e p o l i t i c a l difficulty of t a k i n g u p t h e o p t i o n w a s
considerable.
The r i g h t c o u r s e w a s t c f o r e g o the option and to
d i s c u s s w i t h t h e C o m m i s s i o n e r for N a m i b i a , M r S e a n M a c B r i d a ,
t h e a t t i t u d e w e s h o u l d t a k e on 0'ir c o n t r a c t i n N a m i b i a , w i t h t h e
o b j e c t i v e of s e c u r i n g o u r u r a n i u m s u p p l i e s .
I t w a s p o i n t e d o u t on t h e o t h e r h a n d t h a t w o r l d d e m a n d f o r u r a n i u m
w a s r i s i n g a n d t h a t c o m p e t i t i o n for a v a i l a b l e s u p p l i e s w a s l i k e l y t o
be intense in the 1980s.
T h e r e w e r e few s o u r c e s of s u p p l y o u t s i d e
Southern Africa.
P u r c h a s e s from Niger were no m o r e than a
possibility.
T h e p r o s p e c t of s u p p l y f r o m C a n a d a o r A u s t r a l i a w a s
p o o r , new m i n e s took u p to 8 y e a r s t o d e v e l o p .
Nuclear power
p r o d u c e d t h e c h e a p e s t e l e c t r i c i t y , a n d i n t h e i n t e r e s t s of h o l d i n g
down i n d u s t r i a l and o t h e r c o s t s we should take w h a t e v e r opportunity
p r e s e n t e d i t s e l f of s a t i s f y i n g o u r f u t u r e n e e d s f o r u r a n i u m .
The
a n a l y s i s m a d e for the Defence and O v e r s e a P o l i c y C o m m i t t e e had
s t a t e d t h a t c a n c e l l a t i o n of t h e m a i n R o e s i n g c o n t r a c t c o u l d i m p e r i l
our supplies b e c a u s e it could not be r e p l a c e d in the t i m e s c a l e
required.
B u t if i t w a s a c c e p t e d t h a t t h e m a i n c o n t r a c t s h o u l d
continue t h e r e was logically no r e a s o n why we should not take
a d v a n t a g e of t h e o p t i o n a l s o a n d t h e r e w o u l d b e s u b s t a n t i a l
advantage in doing s o . African c o u n t r i e s felt it n e c e s s a r y to
e x p r e s s public opposition t o our c o n t r a c t s in N a m i b i a b u t the v i e w s
both they and S W A P O e x p r e s s e d in p r i v a t e w e r e different.
The
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 would be p r e p a r e d to talk
t o M r M a c B r i d e a b o u t o u r p u r c h a s e s of u r a n i u m f r o m N a m i b i a
but only after a d e c i s i o n had b e e n t a k e n to a u t h o r i s e B N F L to take
up the option.
10
T H E P R I M E M I N I S T E R , Bumming u p t h e d i s c u s s i o n , s a i d t h a t a
m a j o r i t y of the C a b i n e t a g r e e d t h a t B N F L s h o u l d b e a u t h o r i s e d to
t a k e up the option open to t h e m u n d e r t h e i r p r e s e n t c o n t r a c t with
Rossing.
They agreed that thereafter 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 h o u l d d i s c u s s t h e g e n e r a l q u e s t i o n of
o u r p u r c h a s e s of u r a n i u m f r o m N a m i b i a w i t h M r M a c B r i d e a n d
t h a t t h e S e c r e t a r y of S t a t e for E n e r g y s h o u l d b e p r e s e n t a t t h e
discussion.
The Cabinet ­
1.
T o o k n o t e , w i t h a p p r o v a l , of t h e P r i m e
M i n i s t e r s s u m m i n g u p of t h e i r d i s c u s s i o n .
2.
I n v i t e d t h e S e c r e t a r y of S t a t e f o r E n e r g y
and 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
to proceed accordingly.
LONDON
WEIGHTING F O R
*UNISTERS A N D
^EMBERS O F
PARLIAMENT
,:
5.
The Cabinet considered London Weighting for M i n i s t e r s
and M P s .
T h e i r d i s c u s s i o n and the c o n c l u s i o n s r e a c h e d a r e
recorded separately.
1
C a b i n e t Office
2 9 J a n u a r y J 976
11
fattS D O C U M E N T IS T H E P R O P E R T Y O F H E R B R I T A N N I C M A J E S T Y ' S G O V E R N M E N T
COPY NO
37
CABINET
LIMITED CIRCULATION ANNEX
CC(76) 3rd Conclusions, Minute 5
T h u r s d a y 29 J a n u a r y 1976 a t 1 1 . 3 0 a m
LONDON
SUPPLEMENT
FOR MINISTERS
AND M E M B E R S
OF PARLIAMENT
Previous
Reference:
CC(75) 3 6 t h
ConclueiotiB,
Minute 3
THE P R I M E MINISTER said that 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 (MES) had e a r l i e r t h a t m o r n i n g c o n s i d e r e d
t h e p a y m e n t of L o n d o n S u p p l e m e n t t o M i n i s t e r s a n d M e m b e r s of
Parliament.
The Top S a l a r i e s Review Body (TSRB) had r e p o r t e d
i n t h e s u m m e r of 1975 on t h e r e m u n e r a t i o n of M i n i s t e r s , M e m b e r s
of P a r l i a m e n t a n d P e e r s r e c o m m e n d i n g t h a t t h e L o n d o n S u p p l e m e n t
Bhould b e i n c r e a s e d t o £ 3 4 0 a y e a r , a n d t h a t i n f u t u r e i t s h o u l d b e
a d j u s t e d a u t o m a t i c a l l y to k e e p it in line with c h a n g e s in the Civil
S e r v i c e r a t e of I n n e r London W e i g h t i n g .
Loadoa S u p p l e m e n t h a d
b e e n i n c r e a s e d to the level r e c o m m e n d e d by the TSRB with effect
f r o m 13 J u n e 1 9 7 5 , t h e d a t e on w h i c h t h e r e p o r t w a s r e c e i v e d ;
a n d t h e H o u s e of C o m m o n s h a d p a s s e d a R e s o l u t i o n o n 23 J u l y 1 9 7 5 ,
t h e e f f e c t of w h i c h w a s t o p r o v i d e t h a t i n c r e a s e s i n L o n d o n
S u p p l e m e n t for M i n i s t e r s a n d M e m b e r s of P a r l i a m e n t w e r e now
a u t o m a t i c a l l y linked to i n c r e a s e s in the r e l e v a n t Civil S e r v i c e r a t e .
Since then the Civil S e r v i c e Inner London Weighting had i n c r e a s e d
w i t h e f f e c t f r o m 1 J u l y 1975 i n a w a y w h i c h , u n d e r t h e R e s o l u t i o n ,
w o u l d l e a d t o a n i n c r e a s e fjk t h e L o n d o n S u p p l e m e n t f r o m £ 3 4 0 to
£385.
U n l e s s a n y s t e p s w e r e t a k e n t o a m e n d t h e R e s o l u t i o n of
2 3 J u l y 1 9 7 5 , t h e e f f e c t w o u l d be t h a t t h e L o n d o n S u p p l e m e n t w o u l d
h a v e b e e n i n c r e a s e d t w i c e i n the s p a c e of one m o n t h .
Although this
i n c r e a s e would be e n t i r e l y c o n s i s t e n t with the pay policy and with
decisions that had a l r e a d y been taken about s i m i l a r c a s e s , it had been
a r g u e d i n M E S t h a t M i n i s t e r s a n d M e m b e r s of P a r l i a m e n t s h o u l d n o t
t a k e a d v a n t a g e of w h a t w o u l d b e s e e n a s a t e c h n i c a l p o i n t t o i n c r e a s e
L o n d o n S u p p l e m e n t b e c a u s e of the p o s s i b l e d a m a g e t h i s m i g h t d o t o
the pay policy.
It h a d t h e r e f o r e b e e n p r o p o s e d that M i n i s t e r s a n d
M e m b e r s of P a r l i a m e n t s h o u l d f o r g o t h e £ 4 5 i n c r e a s e i n L o n d o n
S u p p l e m e n t t o w h i c h t h e y w e r e e n t i t l e d a s one w a y of r e i n f o r c i n g t h e
o p e r a t i o n of the p a y p o l i c y .
MES had h o w e v e r r e c o g n i s e d that a n y
a t t e m p t t o a m e n d t h e R e s o l u t i o n of 2 3 J u l y i n s u c h a w a y a s t o
p r e v e n t t h e p a y m e n t of £ 4 5 m i g h t g i v e r i s e t o e v e n m o r e u n d e s i r a b l e
p u b l i c i t y if i t w e r e o p p o s e d ; a n d m i s w a s l i k e l y g i v e n t h e i m p o r t a n c e
w h i c h m a n y b a c k b e n c h e r s o n b o t h B i d e s a t t a c h e d t o t h e p r i n c i p l e of
linkage.
T h e C o m m i t t e e h a d t h e r e f o r e d e c i d e d on b a l a n c e t h a t
London Supplement should b e i n c r e a s e d by £45 with effect f r o m
1 J u l y 1975 a s a l r e a d y p r o v i d e d for b y t h e R e s o l u t i o n of
23 J u l y 1975.
It w o u l d h o w e v e r b e h e l p f u l if M i n i s t e r s w h o w e r e
m e m b e r s of t h e C a b i n e t w e r e t o f o r g o t h i s i n c r e a s e : t h i s w o u l d be
u s e f u l a m m u n i t i o n if l a t e r t h e G o v e r n m e n t w e r e c r i t i c i s e d for n o t
intervening.
In t h e l i g h t of t h i s d e c i s i o n n o f u r t h e r P a r l i a m e n t a r y
action was needed.
It w a s t o b e h o p e d t h a t t h e p a y m e n t of t h e
i n c r e a s e w o u l d a t t r a c t n o p u b l i c i t y : a n d if t h i s w e r e s o m e m b e r s
of t h e C a b i n e t s h o u l d n o t d r a w a t t e n t i o n t o t h e p a y m e n t of t h i s
i n c r e a s e or to the fact that they would not t h e m s e l v e s b e r e c e i v i n g
it.
He would take steps to e n s u r e t h a t n o difficulties a r o s e , for
e x a m p l e w i t h t h e I n l a n d R e v e n u e , b e c a u s e of t h e f a c t t h a t t h e £ 4 5
i n c r e a s e would not be d r a w n by Cabinet M i n i s t e r s ,
The Cabinet T o o k n o t e , w i t h a p p r o v a l , of t h a P r i m e M i n i s t e r ^
statement.
C a b i n e t Office
30 J a n u a r y 1976
2