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Catalogue Reference:CAB/128/38
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THIS DOCUMENT IS THE PROPERTY OF HER BRITANNIC MAJESTY'8 GOVERNMENT
Printed
for the Cabinet.
November
1963
C M . (63)
Copy N o .
40
6th C o n c l u s i o n s
CABINET
CONCLUSIONS
of a Meeting
on Wednesday,
of the Cabinet
20th November,
held at 10 Downing
Street,
1963, at 10.30 a.m.
S.W.1,
Present:
T h e R i g h t H o n . Sir A L E C D O U G L A S - H O M E , M . P . , P r i m e M i n i s t e r
The
Right
Hon. R . A. BUTLER, 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 Affairs
The Right Hon. L O R D DILHORNE, Lord
Chancellor
The Right Hon. DUNCAN SANDYS, M.P.,
S e c r e t a r y of S t a t e for C o m m o n w e a l t h
Relations a n d for t h e Colonies
The
Right
Hon.
SELWYN LLOYD,
Q.C.,
The
The
M . P . , L o r d P r i v y Seal
Hon.
Sir
Right
Hon.
EDWARD
Sir
BOYLE,
Right
Hon..
KEITH
FREDERICK
Right
Hon.
WILLIAM
M.P., Minister without
Hon.
ERNEST
MARPLES,
M.P.,
M i n i s t e r of L a b o u r
JOSEPH,
The
ERROLL,
Right
Hon.
ANTHONY
BARBER,
M . P . , M i n i s t e r of H e a l t h
The
M.P., Minister of Power
The
Right
The Right Hon. JOSEPH GODBER,
M.P., Minister of Housing a n d Local
G o v e r n m e n t a n d Minister for Welsh
Affairs
The
HAILSHAM,
S e c r e t a r y of S t a t e f o r S c o t l a n d
M . P . , M i n i s t e r of E d u c a t i o n
The
VISCOUNT
T h e Right Hon. MICHAEL NOBLE, M.P.,
M . P . , Chief S e c r e t a r y t o t h e T r e a s u r y
and Paymaster-General
Right
Hon.
M . P . , M i n i s t e r of T r a n s p o r t
The Right Hon. JOHN BOYD-CARPENTER,
The
Right
Q . C . , L o r d P r e s i d e n t of t h e C o u n c i l
a n d M i n i s t e r f o r Science
T h e Right H o n . HENRY BROOKE, 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 Right H o n . PETER THORNEYCROFT,
M . P . , M i n i s t e r of D e f e n c e
Right.
Hon.
GEOFFREY
RIPPON,
M . P . , M i n i s t e r of P u b l i c B u i l d i n g a n d
Works
DEEDES,
The
Portfolio
Right
Hon.
Minister without
LORD
CARRINGTON,
Portfolio
T h e following were also p r e s e n t :
The
Right
Hon.
JULIAN
AMERY,
M i n i s t e r of A v i a t i o n (Item
M.P.
1)
The Right H o n MARTIN
M.P.,
Parliamentary
Treasury
Secretariat
:
Sir B U R K E T R E N D
Mr.
A. L. M .
GARY
REDMAYNE,
Secretary,
CONTENTS:
Minute
No.
1
2
Subject
T h e O r g a n i s a t i o n a n d F i n a n c e s of B . O . A . C
Industrial D i s p u t e s
London Bus Crews
Page
3
4
The
Organisation
and Finances
of B.O.A.C.
1. T h e C a b i n e t h a d b e f o r e t h e m a m e m o r a n d u m b y t h e
M i n i s t e r of A v i a t i o n ( C P . (63) 17), t o w h i c h w e r e a p p e n d e d
a l t e r n a t i v e drafts of a W h i t e P a p e r d e a l i n g w i t h t h e financial
p r o b l e m s a n d t h e f u t u r e o r g a n i s a t i o n a n d m a n a g e m e n t of t h e B r i t i s h
(Previous O v e r s e a s A i r w a y s C o r p o r a t i o n (B.O.A.C.), t o g e t h e r w i t h a d r a f t
Reference: P
a r l i a m e n t a r y s t a t e m e n t by the M i n i s t e r o n t h e s a m e subject.
C M . (63) 5th Conclusions, Minute 3) The Minister
of Aviation
said t h a t t h e s h o r t e r v e r s i o n of t h e
W h i t e P a p e r , w h i c h h a d b e e n p r e p a r e d in the light of t h e C a b i n e f s
p r e v i o u s d i s c u s s i o n , w o u l d b e less likely t h a n t h e o r i g i n a l v e r s i o n to
give r i s e t o c o n t r o v e r s y a b o u t t h e a l l o c a t i o n of r e s p o n s i b i l i t y for t h e
C o r p o r a t i o n ^ p r e s e n t difficulties. B u t for this r e a s o n it m i g h t b e
m o r e liable t o s t i m u l a t e p r e s s u r e for t h e p u b l i c a t i o n of t h e r e p o r t
b y M r . J o h n C o r b e t t , a leading a c c o u n t a n t , w h i c h t h e G o v e r n m e n t
w e r e k n o w n t o h a v e r e c e i v e d . If, t h e r e f o r e , t h e s h o r t e r v e r s i o n of t h e
W h i t e P a p e r w a s a d o p t e d , it w o u l d b e n e c e s s a r y firmly t o resist this
pressure.
I n d i s c u s s i o n t h e following m a i n p o i n t s w e r e m a d e :
(a) It w a s g e n e r a l l y a g r e e d t h a t t h e s h o r t e r v e r s i o n of t h e W h i t e
P a p e r w a s p r e f e r a b l e to the original, l o n g e r , v e r s i o n . O n t h i s basis,
however, the Corbett report should not b e published. This should
b e m a d e clear, if n e c e s s a r y , at t h e o u t s e t of a n y d i s c u s s i o n of t h e
W h i t e P a p e r or of t h e M i n i s t e r s s t a t e m e n t .
(b) A n n e x I I of t h e l o n g e r d r a f t W h i t e P a p e r , s h o w i n g o p e r a t i n g
results for c e r t a i n airlines for t h e y e a r s 1 9 5 8 - 6 2 , w o u l d b e a t t a c h e d
t o the s h o r t e r v e r s i o n as well.
(c) C e r t a i n p o i n t s n o t m e n t i o n e d in t h e s h o r t e r v e r s i o n of t h e
W h i t e P a p e r o r in the s t a t e m e n t w o u l d b e b e t t e r d e a l t w i t h in d e b a t e .
These
included
the effect
o n B.O.A.C.'s
operation
of
the
G o v e r n m e n f s decision to a w a r d t r o o p i n g c o n t r a c t s to i n d e p e n d e n t
o p e r a t o r s ; t h e e x t e n t of the G o v e r n m e n t s r e s p o n s i b i l i t y for
B . O . A . C . ' s i n v e s t m e n t s in s u b s i d i a r y airlines, p a r t i c u l a r l y in t h e
M i d d l e E a s t ; a n d t h e d e t a i l e d justification for t h e c h a n g e s i n
B . O . A . C ' s m a n a g e m e n t which the Government intended to make.
(d) T h e t e r m s of c o m p e n s a t i o n for Sir M a t t h e w S l a t t e r y a n d
Sir Basil S m a l l p e i c e h a d n o w b e e n a g r e e d . It w o u l d be p r e f e r a b l e ,
h o w e v e r , t h a t t h e G o v e r n m e n t s h o u l d r e f r a i n , if p o s s i b l e , f r o m
p u b l i c l y disclosing t h e m .
(e) P u b l i c a t i o n of t h e W h i t e P a p e r m i g h t result in the r e s i g n a t i o n
of t h e p r e s e n t B o a r d of t h e C o r p o r a t i o n . C e r t a i n c h a n g e s in t h e
B o a r d w o u l d in a n y e v e n t b e n e c e s s a r y . I t w o u l d also b e d e s i r a b l e
to s t r e n g t h e n t h e e x e c u t i v e staff of t h e C o r p o r a t i o n b y n e w
a p p o i n t m e n t s , i n c l u d i n g s o m e t r a n s f e r s f r o m t h e s e n i o r staff of
British E u r o p e a n A i r w a y s . T h e M i n i s t e r s s t a t e m e n t , h o w e v e r , s h o u l d
confine itself to i n d i c a t i n g t h a t steps w o u l d be t a k e n to fortify t h e
m a n a g e m e n t of t h e C o r p o r a t i o n , w i t h o u t giving details in r e l a t i o n
to p a r t i c u l a r p o s t s .
I n f u r t h e r d i s c u s s i o n c e r t a i n a m e n d m e n t s t o t h e draft s t a t e m e n t
were agreed.
The Cabinet—
(1)
(2)
A u t h o r i s e d the M i n i s t e r of A v i a t i o n t o a r r a n g e for t h e
p u b l i c a t i o n of t h e draft W h i t e P a p e r at A n n e x B of
C P . (63) 17.
A u t h o r i s e d t h e M i n i s t e r of A v i a t i o n to m a k e a s t a t e m e n t ,
o n t h e d a y t h e W h i t e P a p e r w a s p u b l i s h e d , o n t h e lines
of A n n e x C to C P . (63) 17, s u b j e c t t o t h e a m e n d m e n t s
n o t e d in t h e i r d i s c u s s i o n .
(3)
Industrial
Disputes
London Bus
Crews
I n v i t e d t h e M i n i s t e r of A v i a t i o n , in c o n s u l t a t i o n w i t h t h e
Minister without Portfolio (Mr. Deedes), to consider the
means
of
ensuring
the
most
favourable
public
p r e s e n t a t i o n of t h e G o v e r n m e n t s f u t u r e p o l i c y for t h e
British Overseas Airways C o r p o r a t i o n .
2. The Minister
of Labour
informed the Cabinet that the
L o n d o n Passenger T r a n s p o r t B o a r d h a d b e e n inclined to try t o
r e s o l v e t h e s i t u a t i o n r e s u l t i n g f r o m t h e refusal of L o n d o n b u s c r e w s
t o w o r k o v e r t i m e b y offering a s u b s t a n t i a l i n c r e a s e in p a y . T h i s
w o u l d h a v e b e e n e m b a r r a s s i n g in r e l a t i o n to t h e G o v e r n m e n t s
w a g e s p o l i c y ; a n d it w o u l d t h e r e f o r e b e p r e f e r a b l e t o e s t a b l i s h a n
i n d e p e n d e n t e n q u i r y i n t o t h e p a y a n d c o n d i t i o n s of w o r k of t h e b u s
c r e w s . S u c h an e n q u i r y w o u l d a p p r o p r i a t e l y b e c o n d u c t e d b y t h e
N a t i o n a l I n c o m e s C o m m i s s i o n ; b u t a r e f e r e n c e to t h e C o m m i s s i o n
r e q u i r e d t h e a g r e e m e n t of the p a r t i e s c o n c e r n e d a n d , in t h e p r e s e n t
c a s e , the T r a n s p o r t a n d G e n e r a l W o r k e r s ' U n i o n h a d r e f u s e d t h e i r
c o n s e n t . H e t h e r e f o r e p r o p o s e d t o a n n o u n c e in t h e H o u s e of
C o m m o n s t h a t d a y t h a t t h e G o v e r n m e n t i n t e n d e d t o r e m i t t h e issues
i n v o l v e d t o a n ad hoc
e n q u i r y , u n d e r t h e c h a i r m a n s h i p of
Professor Phelps Brown.
I n d i s c u s s i o n s o m e d o u b t w a s e x p r e s s e d a b o u t t h e w i s d o m of
c o n s t i t u t i n g an i n d e p e n d e n t e n q u i r y i n t o a s i t u a t i o n w h i c h t h e
G o v e r n m e n t might be expected to deal with themselves. O n the other
h a n d the q u e s t i o n s a t i s s u e did n o t r e l a t e o n l y t o w a g e s p o l i c y ; t h e y
i n v o l v e d a l s o t e c h n i c a l c o n s i d e r a t i o n s of t r a n s p o r t p o l i c y a n d
m e t h o d s of t r a n s p o r t o p e r a t i o n , w h i c h r e q u i r e d e x p e r t
and
i n d e p e n d e n t e x a m i n a t i o n if, as w a s c l e a r l y n e c e s s a r y , t h e w a g e
s t r u c t u r e of L o n d o n b u s c r e w s s h o u l d n o w b e m a d e t h e s u b j e c t of
a t h o r o u g h r e v a l u a t i o n . If so, h o w e v e r , it w o u l d b e i m p o r t a n t t h a t
the Parliamentary statement about the enquiry should emphasise the
w i d e r c o n t e x t w i t h i n w h i c h it w o u l d t a k e p l a c e ; t h a t the e n q u i r y ' s
t e r m s of r e f e r e n c e s h o u l d be sufficiently c o m p r e h e n s i v e f o r t h e
p u r p o s e e n v i s a g e d ; a n d t h a t the c o m p o s i t i o n of t h e p a n e l a p p o i n t e d
to c o n d u c t t h e e n q u i r y s h o u l d reflect t h e t e c h n i c a l f a c t o r s i n v o l v e d .
It m i g h t b e d e s i r a b l e , t h e r e f o r e , t h a t t h e p a n e l s h o u l d i n c l u d e o n e
or two additional m e m b e r s , whose qualifications would enable t h e m
t o p r o n o u n c e a u t h o r i t a t i v e l y on t h e t e c h n i c a l p r o b l e m s at i s s u e a n d
to insist, if n e c e s s a r y , o n a n a d e q u a t e e x a m i n a t i o n of r a d i c a l c h a n g e s
in p r e s e n t m e t h o d s of o p e r a t i o n . A l t h o u g h it m i g h t b e wiser n o t t o
m a k e t h e e s t a b l i s h m e n t of the p r o p o s e d e n q u i r y c o n d i t i o n a l u p o n
t h e w i t h d r a w a l of t h e p r e s e n t b a n o n o v e r t i m e w o r k i n g , it s h o u l d
be m a d e clear in the statement that the G o v e r n m e n t would n o w
e x p e c t this b a n t o c e a s e .
The Cabinet—
(1)
(2)
A p p r o v e d in p r i n c i p l e t h e p r o p o s a l t o c o n s t i t u t e a n
ad hoc e n q u i r y into t h e c i r c u m s t a n c e s of t h e c u r r e n t
d i s p u t e a b o u t t h e c o n d i t i o n s of service of L o n d o n b u s
crews.
I n v i t e d t h e M i n i s t e r of L a b o u r , i n c o n s u l t a t i o n w i t h t h e
M i n i s t e r of T r a n s p o r t , t h e Chief S e c r e t a r y , T r e a s u r y , a n d
t h e M i n i s t e r w i t h o u t P o r t f o l i o ( M r . D e e d e s ) , t o give
f u r t h e r c o n s i d e r a t i o n , in t h e light of t h e i r d i s c u s s i o n , t o
t h e p u b l i c p r e s e n t a t i o n of this p r o p o s a l a n d t o t h e
d e s i r a b i l i t y of i n c l u d i n g in t h e p a n e l a p p o i n t e d t o
c o n d u c t t h e e n q u i r y a n a d e q u a t e n u m b e r of i n d i v i d u a l s
qualified t o e x a m i n e t h e t e c h n i c a l a s p e c t s of t h e p r o b l e m s
involved.
Cabinet
S.W.1,
Office,
20th November,
1963.