(c) crown copyright Catalogue Reference:CAB/128/30 Image Reference:0017 HISTGRIGAL t \:*. - i m m DO N O T DESTRi T H I S 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 I Y ^ S ( j y V M N M E N T ' - 60 Printed for the Cabinet. February 1956 SECRET CM. Copy N o . (56) 17th Conclusions CABINET CONCLUSIONS of a Meeting on Tuesday, of the Cabinet 28th February, held at 10 Downing 1956, at 11 a.m. Street, S.W. 1, Present: T h e R i g h t H o n . Sir A N T H O N Y E D E N , M . P . , P r i m e M i n i s t e r . T h e Most H o n . the MARQUESS OF The Right H o n . R. A . BUTLER, M . P . , L o r d P r i v y Seal. SALISBURY, L o r d P r e s i d e n t of t h e Council. T h e Right H o n . t h e VISCOUNT KILMUIR, T h e Right H o n . SELWYN LLOYD, Q . C . , 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 L o r d Chancellor. Affairs. T h e R i g h t H o n . G W I L Y M L L O Y D - T h e R i g h t H o n . t h e EARL OF H O M E , S e c r e t a r y of S t a t e f o r C o m m o n w e a l t h G E O R G E , M . P . , S e c r e t a r y of S t a t e f o r R e l a t i o n s (Item 1). the H o m e D e p a r t m e n t a n d Minister for W e l s h Affairs. T h e R i g h t H o n . Sir W A L T E R M O N C K T O N , T h e R i g h t H o n . D U N C A N S A N D Y S , M . P . , Minister of H o u s i n g a n d Local Q.C., M . P . , M i n i s t e r of D e f e n c e . G o v e r n m e n t (Items 1-8). T h e R i g h t H o n . D . HEATHCOAT A M O R Y , T h e R i g h t H o n . Sir D A V I D E C C L E S , M.P., Minister of Agriculture, M . P . , M i n i s t e r of E d u c a t i o n . F i s h e r i e s a n d F o o d (Items 8-11). T h e R i g h t H o n . IAIN M A C L E O D , M . P . , T h e R i g h t H o n . t h e E A R L O F S E L K I R K , M i n i s t e r of L a b o u r a n d N a t i o n a l C h 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 . Service. T h e R i g h t H o n . PATRICK B U C H A N H E P B U R N , M . P . , M i n i s t e r of W o r k s . T h e following w e r e also p r e s e n t : The Right Hon. JOHN HARE, M.P., Minister of S t a t e f o r C o l o n i a l Affairs (Items 1-6). T h e Right H o n . HENRY BROOKE, M . P . , F i n a n c i a l Secretary, T r e a s u r y . Admiral the Right MOUNTBATTEN Lord (Items H o n . t h e EARL First Sea of N a v a l Staff OF BURMA, a n d Chief 1-4). The Right Hon. EDWARD HEATH, M.P., Parliamentary Secretary, Treasury. Marshal Sir of the WILLIAM Air Force Chairman, Chiefs of Staff C o m m i t t e e (Items 1-4). A i r Chief M a r s h a l Sir D E R M O T B O Y L E , Chief of t h e A i r Staff (Items 1-4). L i e u t - G e n e r a l W . P . OLIVER, ViceChief of t h e I m p e r i a l G e n e r a l Staff (Items 1-4). Secretariat: T h e R i g h t H o n . Sir N O R M A N B R O O K . M r . H . O . HOOPER. Royal DICKSON, CONTENTS . . Minute No. Subject 1 2 Buraimi ... 3 Jordan ...... . ' ... ... ..... — Parade of A r a b L e g i o n , -v Military A s s i s t a n c e . 4 F o r e i g n S e c r e t a r y ^ M i s s i o n lo M i d d l e E a s t a n d I n d i a Egypt. ; India. . . . . . Israel. 5 Cyprus ... ... 6 Malta ' ... ; 7 Parliament ... 8 Soviet U n i o n ... ... .... ... -.. V i s i t of Soviet L e a d e r s to the U n i t e d K i n g d o m . 9 10 ' 11 Betting, Lotteries and G a m i n g ... F a r m Price Review ... Food"" 1 ... Danish Bacon. ... '-..*.' ... --- ... (Previous Reference : C M . (56) 3rd Conclusions, M i n u t e 5.) 2. T h e C a b i n e t c o n s i d e r e d a m e m o r a n d u m b y t h e F o r e i g n S e c r e t a r y ( C P . (56) 52) inviting t h e i r views o n t h e c o n c e s s i o n s w h i c h m i g h t be m a d e in seeking a s e t t l e m e n t of t h e d i s p u t e w i t h S a u d i Arabia over Buraimi. The Foreign. Secretary said t h a t , in t h e r e c e n t discussions in W a s h i n g t o n , P r e s i d e n t E i s e n h o w e r h a d asked w h e t h e r t h e r e w a s n o t s o m e concession w h i c h w e m i g h t offer in o r d e r to i n d u c e t h e S a u d i s to e n t e r into d i r e c t n e g o t i a t i o n o n this q u e s t i o n a n d to p r e v e n t t h e m f r o m t a k i n g it to the Security C o u n c i l . C o u l d we n o t offer t h e m s o m e m e a n s of access to t h e sea, east of the Q a t a r P e n i n s u l a ? It n o w s e e m e d possible t h a t t h e S a u d i s w o u l d a g r e e to s t a r t bilateral discussions w i t h o u t a n y a s s u r a n c e , given in a d v a n c e , t h a t w e s h o u l d b e r e a d y to modify o u r p o s i t i o n ; b u t , even if t h e talks c o u l d t h u s b e 49812-1 B 2 b e g u n , it w a s unlikely t h a t they c o u l d be s u s t a i n e d for long w i t h o u t a n y concession o n o u r p a r t . H e h a d t h e r e f o r e c o n s i d e r e d w h a t offer w e m i g h t m a k e a l o n g t h e lines s u g g e s t e d by P r e s i d e n t E i s e n h o w e r . T h e r e were t h r e e p o s s i b l e w a y s of giving t h e S a u d i s access to the sea-. ' ; " (i) oil, and ;. . (ii) (iii) by g r a n t i n g t h e m special t r a n s i t facilities, p a r t i c u l a r l y for a free p o r t ; .. by setting u p s o m e k i n d of n e u t r a l z o n e ; or . by cession of t e r r i t o r y . T h e third of these c o u r s e s w o u l d be m o s t d a m a g i n g to o u r interests, a n d h e did n o t r e c o m m e n d it. T h e first w o u l d be t h e easiest for us, b u t h e feared t h a t it m i g h t n o t b e sufficient, for t h e S a u d i s . T h e C a b i n e t m i g h t t h e r e f o r e be willing t o a u t h o r i s e h i m to offer the s e c o n d , if h e f o u n d that t h e first w a s insufficient. T h e device of a n e u t r a l z o n e h a d w o r k e d well in K u w a i t , a n d this e n c o u r a g e d h i m t o t h i n k t h a t it m i g h t b e a c c e p t a b l e to the R u l e r of A b u D h a b i . Discussion s h o w e d t h a t t h e r e w a s g e n e r a l a g r e e m e n t in the C a b i n e t t h a t it w o u l d be wiser n o t to go b e y o n d t h e offer of t r a n s i t facilities a n d a free p o r t . S u c h an offer s h o u l d n o t give rise to a n y claims for c o m p e n s a t i o n : if it d i d , they c o u l d be resisted. O n t h e o t h e r h a n d , a n offer to e s t a b l i s h a n e u t r a l z o n e m i g h t a p p e a r to i m p l y t h a t there was s o m e justice in t h e S a u d i s ' claim. The Cabinet— (1) A g r e e d t h a t , in bilateral n e g o t i a t i o n s with the G o v e r n m e n t of S a u d i A r a b i a over B u r a i m i , t h e F o r e i g n S e c r e t a r y might offer t h e S a u d i s a m e a n s of access to the sea, east of Q a t a r , by w a y of special t r a n s i t facilities a n d a free port. (2) I n v i t e d the F o r e i g n S e c r e t a r y , before offering a n y further c o n c e s s i o n (e.g., the e s t a b l i s h m e n t of a n e u t r a l zone), to give the C a b i n e t a f u r t h e r o p p o r t u n i t y of c o n s i d e r i n g the m a t t e r . 3. The Prime Minister said t h a t the officer c o m m a n d i n g t h e A r a b L e g i o n h a d a s k e d t h a t a U n i t e d K i n g d o m M i n i s t e r s h o u l d visit Reference: J o r d a n to a t t e n d t h e A n n u a l P a r a d e of the L e g i o n o n 7 t h A p r i l . C M . (56) 3rd Subject t o the C a b i n e f s views, he p r o p o s e d t h a t the S e c r e t a r y of Conclusions, S t a t e for A i r s h o u l d a t t e n d this P a r a d e , p r o v i d e d t h a t it h a d first M i n u t e 3.) been verified t h a t t h e i n v i t a t i o n h a d the s u p p o r t of t h e K i n g of J o r d a n a n d his P r i m e M i n i s t e r . -Jordan (Previous Parade of Arab Legion. Military Assistance. T h e C a b i n e t e n d o r s e d this p r o p o s a l . The Foreign Secretary invited the C a b i n e f s a t t e n t i o n to telegrams from H . M . A m b a s s a d o r at A m m a n ( N o s . 224, 239, 240, 251 a n d 255) r e p o r t i n g t h a t the G o v e r n m e n t of J o r d a n h a d a s k e d us for a n a s s u r a n c e of m i l i t a r y assistance in t h e e v e n t of a n a t t a c k by Israel o n Syria. H e c i r c u l a t e d to the C a b i n e t drafts of t w o telegrams o u t l i n i n g the reply w h i c h H . M . A m b a s s a d o r s h o u l d r e t u r n to this e n q u i r y . T h e s e m a d e it clear t h a t , if Israel a t t a c k e d an A r a b State other than Jordan, the United K i n g d o m G o v e r n m e n t would not be u n d e r a n y o b l i g a t i o n t o r e n d e r m i l i t a r y assistance to J o r d a n u n d e r t h e t e r m s of the A n g l o - J o r d a n T r e a t y . S u c h a c t i o n by Israel w o u l d , h o w e v e r , b r i n g into play the T r i p a r t i t e D e c l a r a t i o n of 1 9 5 0 ; a n d , as s o o n as it b e c a m e clear t h a t Israel w a s t h e aggressor, t h e p a r t i e s to t h a t D e c l a r a t i o n w o u l d r a n g e themselves b e h i n d the c o u n t r y a t t a c k e d a n d t a k e all a p p r o p r i a t e steps to r e s t o r e the position. T h e U n i t e d K i n g d o m G o v e r n m e n t w o u l d t h e r e f o r e find themselves side by side w i t h J o r d a n in a c o m m o n d e t e r m i n a t i o n to resist IsraePs aggression, a n d w o u l d c o n s u l t w i t h t h e J o r d a n G o v e r n m e n t o n the b e s t m e a n s of c a r r y i n g o u t this c o m m o n p u r p o s e . T h e y w o u l d be p r e p a r e d i n s u c h a n event to send r e i n f o r c e m e n t s to J o r d a n , b u t it was i m p o r t a n t t h a t t h e J o r d a n G o v e r n m e n t s h o u l d t h e m s e l v e s avoid p r e c i p i t a t e a c t i o n a n d allow t i m e for t h e m o s t effective d e p l o y m e n t of t h e j o i n t r e s o u r c e s of t h e t w o c o u n t r i e s . T h e J o r d a n G o v e r n m e n t ' s h o u l d also b e o n their g u a r d a g a i n s t a t t e m p t s t o l u r e t h e m i n t o a c t i o n w h i c h m i g h t o b s c u r e t h e r e s p o n s i b i l i t y for t h e o u t b r e a k of hostilities. I n discussion t h e following p o i n t s w e r e r a i s e d : — (a) T h e a c t i o n t o b e t a k e n by t h e U n i t e d K i n g d o m G o v e r n m e n t in these c i r c u m s t a n c e s s h o u l d b e p l a i n l y b a s e d o n the T r i p a r t i t e Declaration. It w a s a g r e e d t h a t t h e draft telegrams s h o u l d b e a m e n d e d so as to m a k e this m o r e clear. (b) W a s it d e s i r a b l e t h a t w e s h o u l d c o m m i t ourselves t o s e n d i n g r e i n f o r c e m e n t s to J o r d a n i n this e v e n t until w e w e r e c e r t a i n t h a t c o r r e s p o n d i n g a c t i o n w o u l d b e t a k e n b y the U n i t e d States Government? 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 r e w e r e a l r e a d y clear i n d i c a t i o n s t h a t , if s u c h a s i t u a t i o n a r o s e , t h e A m e r i c a n s w o u l d b e quick to h o n o u r their obligations under the Tripartite Declaration. (c) British g r o u n d forces in J o r d a n w o u l d h a v e to be reinforced b y air, a n d in earlier p l a n s it h a d b e e n a s s u m e d t h a t the Israel A i r F o r c e w o u l d h a v e b e e n n e u t r a l i s e d b e f o r e r e i n f o r c e m e n t s w e r e flown in. T h e r e i n f o r c e m e n t s w o u l d b e i n a v u l n e r a b l e position if t h e y h a d t o b e sent b e f o r e this h a d b e e n d o n e . T h i s risk might, h o w e v e r , h a v e t o b e t a k e n u n l e s s t h e U n i t e d S t a t e s G o v e r n m e n t w e r e willing, in t h e c i r c u m s t a n c e s e n v i s a g e d , t o join us in p r e l i m i n a r y a c t i o n against t h e Israel A i r F o r c e . (d) W a s it n o t d e s i r a b l e t h a t a s t r o n g w a r n i n g s h o u l d b e given t o t h e Israel G o v e r n m e n t t h a t , if they b e g a n w o r k o n the J i s r B a n a t Y a c o u b c a n a l n e a r t h e S y r i a n frontier, t h e r e w a s a g r a v e risk of S y r i a n r e a c t i o n s w h i c h w o u l d lead to w a 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 this w a r n i n g h a d a l r e a d y b e e n given t o the Israel G o v e r n m e n t in clear t e r m s a n d h a d recently b e e n repeated. The Cabinet— (1) A u t h o r i s e d t h e F o r e i g n Secretary to instruct H.M. A m b a s s a d o r at A m m a n in t h e t e r m s of t h e draft t e l e g r a m s w h i c h h e h a d c i r c u l a t e d , subject to t h e a m e n d m e n t s a p p r o v e d in t h e C a b i n e f s discussion. (2) I n v i t e d t h e M i n i s t e r of D e f e n c e to a r r a n g e for the military i m p l i c a t i o n s of this q u e s t i o n t o b e c o n s i d e r e d in t h e staff discussions n o w p r o c e e d i n g in W a s h i n g t o n on t h e m e a n s of i m p l e m e n t i n g t h e T r i p a r t i t e D e c l a r a t i o n of 1950. Foreign Secretary's Mission to Middle East and India. Egypt. (Previous Reference : Z.M. (56) 16th Conclusions, vlinute 5.) 4. The Foreign Secretary said t h a t , o n his w a y to a n d f r o m t h e f o r t h c o m i n g m e e t i n g of t h e C o u n c i l of t h e S o u t h - E a s t A s i a T r e a t y O r g a n i s a t i o n in K a r a c h i , he w o u l d b e visiting v a r i o u s capitals in t h e M i d d l e E a s t a n d I n d i a . I n c o n n e c t i o n w i t h these visits t h e r e w e r e t h r e e p o i n t s o n w h i c h h e w o u l d b e g l a d of t h e a d v i c e of his c o l l e a g u e s . Since t h e C a b i n e f s m e e t i n g o n 2 2 n d F e b r u a r y he h a d again c o n s i d e r e d t h e line w h i c h h e s h o u l d t a k e in his c o n v e r s a t i o n s w i t h t h e P r i m e M i n i s t e r of E g y p t . H e i n t e n d e d to m a k e it clear t h a t in t h e M i d d l e E a s t w e h a d n o C o l o n i a l p u r p o s e , a n d t h a t o u r sole interests w e r e t o p r o t e c t the s o u r c e s of o u r oil supplies in the P e r s i a n G u l f a n d t o p r e v e n t Soviet e n c r o a c h m e n t . T h o s e interests were, h o w e v e r , vital t o o u r security a n d w e w e r e r e s o l v e d to p r o t e c t t h e m . W e w e r e i n particular determined to uphold the B a g d a d Pact. W e desired friendlier r e l a t i o n s w i t h E g y p t , b u t t h e s e c o u l d n o t b e e s t a b l i s h e d unless the Egyptian Government discontinued their hostile p r o p a g a n d a a n d their a t t e m p t s to u n d e r m i n e o u r p o s i t i o n t h r o u g h o u t t h e M i d d l e E a s t . If t h e y c h a n g e d t h e i r a t t i t u d e t o w a r d s us, w e c o u l d d o m u c h for t h e m in r e t u r n — b y a s s i s t a n c e o v e r t h e N i l e w a t e r s a n d i n their r e l a t i o n s with I r a q . The Prime Minister said t h a t h e w a s in full a g r e e m e n t w i t h t h e line w h i c h t h e F o r e i g n S e c r e t a r y p r o p o s e d to t a k e . W e m u s t s h o w n o lack of r e s o l u t i o n in o u r s u p p o r t of t h e B a g d a d P a c t . If it c o l l a p s e d , t h e r e w o u l d b e n o t h i n g t o p r e v e n t S o v i e t influence f r o m r e a c h i n g d o w n t o t h e P e r s i a n Gulf. The C a b i n e t - . (1) A p p r o v e d t h e line w h i c h t h e F o r e i g n S e c r e t a r y p r o p o s e d t o t a k e in his f o r t h c o m i n g d i s c u s s i o n s w i t h t h e P r i m e M i n i s t e r of E g y p t . The Foreign Secretary said t h a t t h e P r i m e M i n i s t e r of I n d i a w a s also likely t o e x p r e s s disquiet a b o u t t h e B a g d a d P a c t . H e h a d b e e n d i s t u r b e d a t the s u g g e s t i o n t h a t J o r d a n m i g h t j o i n t h e P a c t , a n d h e m i g h t ask for an a s s u r a n c e t h a t n o o t h e r A r a b State w o u l d a d h e r e t o it. T h e F o r e i g n S e c r e t a r y said t h a t , if this p o i n t w e r e raised, h e w o u l d p o i n t o u t t h a t these w e r e i n d e p e n d e n t s o v e r e i g n States, w h i c h c o u l d n o t be p r e v e n t e d f r o m j o i n i n g r e g i o n a l p a c t s if t h e y w i s h e d t o d o so. H e c o u l d , h o w e v e r , s a y t h a t , if I n d i a a c c e p t e d t h e e x i s t i n g m e m b e r s h i p of this P a c t , t h e U n i t e d K i n g d o m w o u l d n o t u r g e o t h e r A r a b States t o j o i n it. I n discussion the s u g g e s t i o n w a s m a d e t h a t I n d i a ' s dislike of this P a c t w a s d u e to P a k i s t a n i a t t e m p t s t o u s e it as a m e a n s of a s s u r i n g herself of s u p p o r t in a w a r w i t h I n d i a . The Foreign Secretary said t h a t u n d e r t h e B a g d a d P a c t t h e m e m b e r s o n l y a g r e e d to " c o - o p e r a t e for their security and defence " a n d t h a t o u r o b l i g a t i o n s to P a k i s t a n u n d e r t h e [Bagdad] P a c t a d d e d n o t h i n g to o u r o b l i g a t i o n s to h e r as a m e m b e r of the C o m m o n w e a l t h . T h e r e w a s c e r t a i n l y n o o b l i g a t i o n o n m e m b e r s of the P a c t t o give assistance to P a k i s t a n in t h e event of a n a t t a c k by P a k i s t a n o n I n d i a . If, t h e r e f o r e , I n d i a h a d n o aggressive i n t e n t i o n s against P a k i s t a n , s h e h a d n o t h i n g to fear f r o m t h e B a g d a d P a c t , a n d a firm a s s u r a n c e to this effect c o u l d b e given to t h e P r i m e M i n i s t e r of I n d i a . , ; 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 a r g u m e n t s w h i c h t h e F o r e i g n S e c r e t a r y p r o p o s e d to u s e in f a v o u r of the B a g d a d P a c t i n his f o r t h c o m i n g discussions w i t h t h e P r i m e M i n i s t e r of India. The Foreign Secretary said t h a t , in t h e c o u r s e of his f o r t h c o m i n g visit to Israel, a n a t t e m p t w a s likely to b e m a d e t o i n d u c e h i m t o visit J e r u s a l e m in c i r c u m s t a n c e s w h i c h c o u l d be t a k e n to i m p l y t h a t t h e U n i t e d K i n g d o m G o v e r n m e n t r e c o g n i s e d it as I s r a e l s c a p i t a l . H e c o u l d n o t a v o i d p a y i n g a n i n f o r m a l visit t o J e r u s a l e m , b u t h e p r o p o s e d to decline a n y f o r m a l h o s p i t a l i t y t h e r e . If h e h a d t o m e e t t h e P r i m e M i n i s t e r of Israel in J e r u s a l e m , h e w o u l d d o so i n f o r m a l l y . The i Cabinet­ ; ( 3 ) : T o o k n o t e of t h e steps w h i c h t h e F o r e i g n S e c r e t a r y p r o p o s e d to t a k e t o a v o i d a n y a c t i o n i m p l i e d l y r e c o g n i s i n g J e r u s a l e m as t h e c a p i t a l of Israel. Cyprus. (Previous Reference : C M . (56) 16th Conclusions, M i n u t e 12.) 5. T h e C a b i n e t c o n s i d e r e d t e l e g r a m s w h i c h t h e C o l o n i a l S e c r e t a r y h a d sent from C y p r u s ( N o s . 436 a n d 437) r e p o r t i n g that, in t h e latest stages of t h e n e g o t i a t i o n s . A r c h b i s h o p M a k a r i o s h a d u n a c c e p t a b l e d e m a n d s in c o n n e c t i o n w i t h future p u t f o r w a r d responsibility for p u b l i c security a n d a n a m n e s t y for political offenders, a n d h a d raised f u r t h e r q u e s t i o n s a b o u t o u r i n t e n t i o n s in r e s p e c t of c o n s t i t u t i o n a l d e v e l o p m e n t . T h e C o l o n i a l Secretary p r o p o s e d to reaffirm the p o s i t i o n of t h e U n i t e d K i n g d o m G o v e r n m e n t o n t h e s e p o i n t s a n d invited t h e C a b i n e f s c o n c u r r e n c e in the t e r m s of a s t a t e m e n t w h i c h h e p r o p o s e d t o m a k e to A r c h b i s h o p M a k a r i o s . O n t h e q u e s t i o n of c o n s t i t u t i o n a l d e v e l o p m e n t , h e p r o p o s e d to i n f o r m the A r c h b i s h o p t h a t a c o n s t i t u t i o n a l C o m m i s s i o n e r w o u l d be sent to C y p r u s to d r a w u p , in c o n s u l t a t i o n w i t h r e p r e s e n t a t i v e s of all sections of o p i n i o n t h e r e , a liberal a n d d e m o c r a t i c c o n s t i t u t i o n w h i c h w o u l d p r o v i d e for a n elected m a j o r i t y i n t h e Legislative A s s e m b l y a n d w o u l d s a f e g u a r d , inter alia, t h e interests of m i n o r i t y sections of the c o m m u n i t y . T h e c o n s t i t u t i o n w o u l d r e s e r v e to t h e G o v e r n o r p o w e r s o v e r foreign affairs a n d defence, a n d all p o w e r s o v e r p u b l i c security for as long as m i g h t be n e c e s s a r y to s a f e g u a r d l a w a n d o r d e r a n d British defence r e q u i r e m e n t s ; a n d t h e c o n t r o l of all o t h e r D e p a r t m e n t s w o u l d be t r a n s f e r r e d as r a p i d l y as w a s c o n s i s t e n t w i t h o r d e r l y g o v e r n m e n t to C y p r i o t M i n i s t e r s r e s p o n s i b l e t o t h e Legislative A s s e m b l y . A t t h e s a m e t i m e t h e C o l o n i a l S e c r e t a r y w o u l d reaffirm t o t h e A r c h b i s h o p the c i r c u m s t a n c e s in w h i c h an a m n e s t y c o u l d be granted and the Emergency Regulations repealed. I n discussion the following p o i n t s w e r e m a d e : — (a) I n t h e s t a t e m e n t to b e m a d e b y t h e C o l o n i a l Secretary it s h o u l d b e m a d e q u i t e clear t h a t it w o u l d be for t h e G o v e r n o r of C y p r u s t o d e c i d e w h e n t h e t i m e h a d c o m e to t r a n s f e r to C y p r i o t M i n i s t e r s t h e responsibility for p u b l i c security. (b) T h e p r o p o s e d s t a t e m e n t t h a t t h e c o n s t i t u t i o n w o u l d p r o v i d e for a n elected majority in t h e Legislative A s s e m b l y c o u l d b e p r e c e d e d b y t h e w o r d s " A s was m a d e clear in t h e L o n d o n t a l k s . " T h i s would serve to r e m i n d t h e A r c h b i s h o p t h a t at t h e L o n d o n C o n f e r e n c e the United Kingdom Government had proposed that a proportionate q u o t a of seats in the A s s e m b l y s h o u l d be reserved t o each" c o m m u n i t y . (c) I n t h e final s e n t e n c e of the draft s t a t e m e n t it w a s suggested t h a t u n d e r t h e p r o p o s e d c o n s t i t u t i o n a m i n o r i t y w o u l d n o t be allowed to o b s t r u c t m a j o r i t y o p i n i o n in m a t t e r s w h i c h did n o t p r e j u d i c e the p a r t i c u l a r m i n o r i t y interests c o n c e r n e d . T h e r e w a s g e n e r a l a g r e e m e n t t h a t this s e n t e n c e s h o u l d be o m i t t e d . It w a s c e r t a i n to give offence t o t h e T u r k s . M o r e o v e r , it w a s i n c o n s i s t e n t w i t h the a c c e p t e d principles of P a r l i a m e n t a r y O p p o s i t i o n a n d w i t h liberal c o n s t i t u t i o n a l d o c t r i n e s . The Cabinet— Subject t o the a m e n d m e n t s n o t e d in p a r a g r a p h s (a) to (c) a b o v e , agreed t h a t t h e C o l o n i a l Secretary s h o u l d m a k e a n o r a l s t a t e m e n t to A r c h b i s h o p M a k a r i o s in t h e t e r m s of the draft set o u t in C y p r u s t e l e g r a m N o . 4 3 7 ; a n d a u t h o r i s e d the M i n i s t e r of S t a t e for t h e C o l o n i e s t o i n f o r m t h e C o l o n i a l S e c r e t a r y accordingly. Malta. (Previous Reference: C M . (56) 8th Conclusions, M i n u t e 12.) 6. The Prime Minister s a i d t h a t it h a d b e e n a r r a n g e d t h a t , subject t o t h e C a b i n e f s a p p r o v a l , t h e G o v e r n o r of M a l t a , w h o h a d c o m e t o L o n d o n for c o n s u l t a t i o n , s h o u l d b r e a k his r e t u r n j o u r n e y a t R o m e for a discussion w i t h t h e P o p e . T h e r e w a s r e a s o n to believe t h a t t h e P o p e m i g h t b e p r e p a r e d t o exercise his a u t h o r i t y over A r c h b i s h o p G r o n z i a n d to a s k h i m to refrain, w h i l e t h e R e p o r t of t h e R o u n d T a b l e C o n f e r e n c e w a s before t h e P a r l i a m e n t a t Westminster, from pursuing or countenancing courses which would e x a c e r b a t e t h e s i t u a t i o n in M a l t a . It w a s also h o p e d t h a t the C o l o n i a l S e c r e t a r y w o u l d b e able t o visit M a l t a for discussions in t h e c o u r s e of his r e t u r n j o u r n e y f r o m C y p r u s . The Cabinet— T o o k n o t e w i t h a p p r o v a l of this s t a t e m e n t . Parliament. 7. 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 business to be t a k e n in t h e H o u s e of C o m m o n s in t h e f o l l o w i n g w e e k . T h e C a b i n e t w e r e also i n f o r m e d t h a t , in t h e w e e k b e g i n n i n g 12th M a r c h , it w a s p r o v i s i o n a l l y p r o p o s e d t h a t the H o u s e of C o m m o n s s h o u l d d e b a t e t h e S e c o n d R e a d i n g of t h e D e a t h P e n a l t y (Abolition) Bill a n d t h e R e p o r t Stage of t h e T e a c h e r s ( S u p e r a n n u a tion)Bill. Soviet Union. Visit of Soviet L e a d e r s tb the U n i t e d Kingdom. 8. The Lord President said that he had noted the C a b i n e f s decision of 16th F e b r u a r y t h a t the i n v i t a t i o n t o t h e Soviet l e a d e r s to visit this c o u n t r y s h o u l d n o t be w i t h d r a w n . H e accepted this decision, t h o u g h he r e g r e t t e d t h e necessity for it. H e wished, h o w e v e r , t o m a k e o n e suggestion a b o u t t h e p r o g r a m m e for t h e visit. H e n o t e d t h a t T h e Q u e e n w a s to receive t h e Soviet leaders at W i n d s o r C a s t l e . H e h o p e d t h a t H e r M a j e s t y w o u l d b e a d v i s e d n o t t o allow herself t o b e p h o t o g r a p h e d w i t h the Soviet l e a d e r s o n this occasion. (Previous Reference: C M . (56) 15th Conclusions, the M i n u t e 7.) D i s c u s s i o n s h o w e d t h a t t h e C a b i n e t w e r e in full a g r e e m e n t w i t h view e x p r e s s e d by t h e L o r d P r e s i d e n t o n this p o i n t . The Cabinet— T o o k n o t e t h a t t h e P r i m e M i n i s t e r w o u l d advise T h e Q u e e n t h a t n o facilities s h o u l d b e given for p h o t o g r a p h s to be t a k e n o n the o c c a s i o n of t h e visit of the Soviet leaders to W i n d s o r Castle. Betting, Lotteries and Gaming. (Previous Reference: C M . (56) 8th Conclusions, M i n u t e 8.) 9. T h e C a b i n e t c o n s i d e r e d a m e m o r a n d u m by the H o m e S e c r e t a r y ( C P . (56) 54) c o v e r i n g t h e draft of a n a n n o u n c e m e n t of t h e G o v e r n m e n t s i n t e n t i o n to give effect t o t h e r e c o m m e n d a t i o n s of t h e R o y a l Commission on Betting, Lotteries a n d G a m i n g . The Home Secretary said t h a t in t h e d e b a t e in t h e H o u s e of L o r d s o n 8th F e b r u a r y t h e r e h a d b e e n g e n e r a l s u p p o r t for the m a i n r e c o m m e n d a t i o n s of t h e R o y a l C o m m i s s i o n ^ r e p o r t . Press c o m m e n t o n t h e d e b a t e h a d also b e e n f a v o u r a b l e in t h e m a i n . T h e r e was g o o d r e a s o n n o w t o s u p p o s e t h a t legislation o n this subject w o u l d a r o u s e m u c h less c o n t r o v e r s y t h a n h a d b e e n feared. T h e G o v e r n m e n t w e r e likely t o i n c u r s t r o n g e r criticism for d e l a y in p r o p o s i n g a m e n d m e n t of t h e l a w . A m o t i o n w a s t o b e m o v e d in the H o u s e of C o m m o n s o n 9 t h M a r c h inviting t h e G o v e r n m e n t to i n t r o d u c e legislation o n this subject. H e r e c o m m e n d e d t h a t this o p p o r t u n i t y s h o u l d be t a k e n t o m a k e a n a n n o u n c e m e n t , in t h e t e r m s of t h e draft a n n e x e d to C P . (56) 54, s t a t i n g t h a t t h e G o v e r n m e n t a c c e p t e d the m a i n r e c o m m e n d a t i o n s of t h e R o y a l C o m m i s s i o n ^ r e p o r t a n d h a d given i n s t r u c t i o n s for t h e p r e p a r a t i o n of t h e necessary legislation f o r i n t r o d u c t i o n as s o o n as o p p o r t u n i t y offered. In discussion t h e r e was general a g r e e m e n t t h a t t h e G o v e r n m e n t s h o u l d n o w p r o c e e d with this legislation at t h e earliest p r a c t i c a b l e o p p o r t u n i t y . The Lord Privy Seal said, h o w e v e r , t h a t t h e r e w a s n o possibility of p a s s i n g this Bill in t h e c u r r e n t session. M o r e o v e r , it w a s a l r e a d y clear t h a t t h e G o v e r n m e n t w o u l d h a v e to u n d e r t a k e a very h e a v y legislative p r o g r a m m e in t h e 1 9 5 6 - 5 7 session. Projects for legislation in t h a t session a l r e a d y i n v o l v e d a t o t a l of ninety-seven Bills, of w h i c h n o t less t h a n fifteen w e r e p r o p o s e d by t h e H o m e Office. I t w a s n o t yet clear w h a t p r i o r i t y c o u l d b e given to a Betting Bill. A p r e l i m i n a r y review of this p r o g r a m m e w o u l d h a v e b e e n m a d e before t h e d e b a t e in t h e H o u s e of C o m m o n s o n 9 t h M a r c h . The Cabinet­ (1) A g r e e d t h a t legislation to give effect t o t h e m a i n r e c o m m e n d a t i o n s of t h e r e p o r t of t h e R o y a l C o m m i s s i o n o n B e t t i n g , L o t t e r i e s a n d G a m i n g s h o u l d b e p r e p a r e d for i n t r o d u c t i o n in t h e 1956-57 session. (2) A g r e e d t h a t in t h e f o r t h c o m i n g d e b a t e in t h e H o u s e of C o m m o n s o n 9 t h M a r c h it s h o u l d be s t a t e d 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 to i n t r o d u c e this legislation at t h e earliest p r a c t i c a b l e o p p o r t u n i t y ; b u t invited t h e H o m e S e c r e t a r y to settle t h e precise w o r d i n g of this s t a t e m e n t w i t h t h e L o r d P r i v y Seal in t h e light of t h e p r e l i m i n a r y review w h i c h the F u t u r e Legislation C o m m i t t e e w e r e to m a k e of the p r o g r a m m e of G o v e r n m e n t legislation for t h e 1 9 5 6 - 5 7 session. 10. T h e C a b i n e t h a d before t h e m a m e m o r a n d u m by the M i n i s t e r of A g r i c u l t u r e ( C P . (56) 56) setting o u t t h e basis for a s e t t l e m e n t of t h e c u r r e n t review of f a r m prices a n d seeking a u t h o r i t y t o offer initially a revised schedule of price g u a r a n t e e s at a n a d d i t i o n a l cost of a p p r o x i m a t e l y £17 millions in c o m p a r i s o n w i t h t h e figure for t h e p r e v i o u s year. The Minister of Agriculture said t h a t a g r i c u l t u r a l costs h a d risen by a b o u t £40 millions. T h i s w a s p a r t i a l l y offset b y a n increase in efficiency in t h e p r o d u c t i o n of c o m m o d i t i e s c o v e r e d b y t h e review w h i c h w o u l d b e said by t h e f a r m e r s to a m o u n t t o £16 millions. A l t h o u g h it w a s e s t i m a t e d t h a t t h e a c t u a l net i n c o m e of the i n d u s t r y w o u l d rise by £14 millions over t h e f o r t h c o m i n g y e a r , this w o u l d c o n c e a l a fall of £28 millions (from £320 millions to £292 millions) in n e t i n c o m e if it w e r e calculated o n t h e basis of n o r m a l w e a t h e r c o n d i t i o n s . T h e s e w e r e the m a i n factors t o be t a k e n i n t o a c c o u n t in r e a c h i n g a s e t t l e m e n t . T h e f a r m e r s w o u l d seek to r e c o u p in increased p r i c e g u a r a n t e e s t h e n e t rise in their costs, a n d t h e y w o u l d a r g u e t h a t a t o t a l n e t i n c o m e of £ 3 0 0 - £ 3 2 0 millions w a s n o t excessive if it w e r e t o p r o v i d e a m a r g i n for r e - i n v e s t m e n t in t h e i n d u s t r y . The C h a n c e l l o r of t h e E x c h e q u e r h a d c o n c u r r e d in the r e c o m m e n d a t i o n of t h e Ministerial C o m m i t t e e o n t h e F a r m P r i c e R e v i e w t h a t a settle­ m e n t s h o u l d b e s o u g h t at a p p r o x i m a t e l y £20 millions, a l t h o u g h h e himself felt t h a t a iigure n e a r e r £25 millions w o u l d n o t b e i n e q u i t a b l e . T h e F a r m e r s ' U n i o n s were unlikely to a g r e e to a s e t t l e m e n t at less t h a n £ 3 0 millions, a n d it w o u l d b e n e c e s s a r y t o i m p o s e a s e t t l e m e n t if t h e n e g o t i a t i o n s w e r e to be c o n c l u d e d a t a figure in t h e r e g i o n of £ 2 0 millions. T h e following p o i n t s w e r e m a d e in d i s c u s s i o n : — (a) A l t h o u g h t h e farmers w o u l d resist as i n e q u i t a b l e a figure of £20 millions, it w o u l d b e difficult t o defend a m o r e g e n e r o u s a w a r d at a t i m e w h e n sacrifices were being d e m a n d e d of all sections of the community. (b) A s in t h e case of i n d u s t r y , t h e l a r g e r f a r m s w e r e m o r e efficient a n d relatively m o r e p r o f i t a b l e t h a n t h e s m a l l f a r m s a n d t h e price g u a r a n t e e s h a d the effect of i n c r e a s i n g this d i s p a r i t y . I t w a s , h o w e v e r , t h e small f a r m e r s w h o w e r e e x p e r i e n c i n g t h e g r e a t e s t difficulty a n d theirs w o u l d be t h e case m o s t s t r o n g l y p r e s s e d in the negotiations. (c) T h e s m a l l f a r m e r s c o n c e n t r a t e d m a i n l y o n milk, eggs a n d pigs. I t w a s p r o p o s e d , h o w e v e r , t o r e d u c e t h e pig s u b s i d y a n d to l e a v e t h e s u b s i d y for eggs u n c h a n g e d . W h i l e it w a s u n e c o n o m i c to s u b s i d i s e t h e o v e r - p r o d u c t i o n of milk, w h i c h w a s b a s e d o n i m p o r t e d feedingstuffs a n d restricted t h e U n i t e d K i n g d o m m a r k e t for the m i l k p r o d u c t s of C o m m o n w e a l t h c o u n t r i e s , it w a s i m p r a c t i c a b l e for t h e small f a r m e r — e s p e c i a l l y d u r i n g a p e r i o d of c r e d i t r e s t r i c t i o n — t o t u r n easily a n d p r o m p t l y t o beef p r o d u c t i o n . T h e r e w a s t h e r e f o r e a case f o r offering as p a r t of t h e final s e t t l e m e n t t h e a l t e r n a t i v e p r o p o s a l set o u t i n A p p e n d i x B t o C P . (56) 56 w h i c h c o n t e m p l a t e d a n i n c r e a s e of \cl. r a t h e r t h a n \d. in t h e p r i c e g u a r a n t e e for milk. I t w a s h o w e v e r a g r e e d t h a t , a l t h o u g h t h e G o v e r n m e n t s initial offer of i n c r e a s e d g u a r a n t e e s totalling £ 1 7 m i l l i o n s w o u l d c a u s e d i s q u i e t in t h e f a r m i n g i n d u s t r y , t h e r e w o u l d b e little a d v a n t a g e , if a settle­ m e n t of a b o u t £ 2 0 millions h a d t o b e a c h i e v e d , in raising t h e o p e n i n g figure t o £19 millions b y offering f o r t h w i t h a n i n c r e a s e in t h e g u a r a n t e e for milk. The Cabinet— A p p r o v e d the p r o p o s a l s in C P . (56) 56 a n d a u t h o r i s e d the M i n i s t e r of A g r i c u l t u r e t o offer, in the n e x t s t a g e of t h e negotiations with the F a r m e r s ' U n i o n s , increased price g u a r a n t e e s to a total v a l u e of a p p r o x i m a t e l y £ 1 7 millions as set o u t in A p p e n d i x B of his m e m o r a n d u m . Food. Danish Bacon. (Previous Reference: C M . (56) 8th Conclusions, M i n u t e 11.) 11. The Minister of Agriculture reported that agreement had b e e n r e a c h e d w i t h D e n m a r k on t h e p r o p o s a l t o i m p o s e a 10 p e r cent, d u t y o n i m p o r t s of D a n i s h b a c o n i n t o this c o u n t r y . T h e a g r e e m e n t w o u l d r u n initially for four y e a r s a n d t h e D a n e s h a d b e e n a s s u r e d t h a t , s h o u l d it b e c o m e n e c e s s a r y for a n y r e a s o n t o r e i m p o s e q u a n t i t a t i v e r e s t r i c t i o n s o n t h e i m p o r t of b a c o n , D a n i s h interests in t h e U n i t e d K i n g d o m m a r k e t w o u l d b e fully s a f e g u a r d e d . The a g r e e m e n t w o u l d be a n n o u n c e d in D e n m a r k t h a t d a y , a n d it w a s p r o p o s e d t h a t t h e M i n i s t e r of S t a t e , B o a r d of T r a d e , s h o u l d m a k e a c o r r e s p o n d i n g a n n o u n c e m e n t in the H o u s e of C o m m o n s t h a t afternoon. H e himself w o u l d a n n o u n c e , i n a n s w e r t o a w r i t t e n Q u e s t i o n , t h a t S t a t e t r a d i n g in b a c o n w o u l d n o w c o m e to a n e n d . T h e Cabinet— T o o k n o t e of ment should ! a f t e r n o o n of D e n m a r k on Cabinet 28th Office, S.W. February, I, 1956. this s t a t e m e n t , a n d a g r e e d t h a t a n a n n o u n c e ­ b e m a d e i n t h e H o u s e of C o m m o n s t h a t the o u t c o m e of t h e tariff n e g o t i a t i o n s w i t h bacon.