(c) crown copyright
Catalogue Reference:CAB/129/56
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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 ^
i , ^ ^ ^ - ^ ^ ^ - - - - ^ - ^ ^ - . ^ - . ^ ^ ^ ^ ^ - ^ - ^ ^ . , - ^ - - - . - .
- c o - . . . , . , . .
GOVERNMENT)
......................
SECRET
C . ( 5 2 ) 3 6 4
C O P Y r­
25th O C T O B E R , 1952.
CABINET
ATOJVIIC E N E R G Y O R G A N I S A T I O N
M e m o r a n d u m b y t h e M i n i s t e r of S u p p l y
I h a v e r e a d w i t h i n t e r e s t t h e p a p e r ( C . (52) 3 1 7 ) , s u b m i t t e d to the Cabinet by the P a y m a s t e r - G e n e r a l , in which he p r o p o s e s : (a)
that the a t o m i c e n e r g y o r g a n i s a t i o n should be r e m o v e d f r o m t h e M i n i s t r y of S u p p l y a n d t r a n s f e r r e d t o a s t a t u t o r y c o r p o r a t i o n ; and (b)
that, since the n e c e s s a r y legislation could probably
n o t be e n a c t e d for about two y e a r s , an " i n d e p e n d e n t
M i n i s t r y " s h o u l d be c r e a t e d t o " u n d e r t a k e the
u n s c r a m b l i n g of t h e p r o j e c t f r o m t h e M i n i s t r y of S u p p l y " .
2.
T h e r e i s n o d o u b t t h a t a c a s e c a n b e m a d e o u t i n f a v o u r of c o n t r o l b y a s t a t u t o r y b o d y . On t h e o t h e r h a n d , s o u n d a r g u m e n t s c a n a l s o b e a d v a n c e d i n f a v o u r of t h e p r e s e n t s y s t e m , w h i c h w a s a d o p t e d b y t h e l a t e G o v e r n m e n t a f t e r w e i g h i n g u p t h e a d v a n t a g e s a n d d i s a d v a n t a g e s of t h e t w o alternatives. 3,
It m u s t , h o w e v e r , b e r e m e m b e r e d t h a t w e a r e n o t s t a r t i n g f r o m s c r a t c h . T h e p r o b l e m i s n o t j u s t t o d e c i d e w h i c h of t h e t w o s y s t e m s is t h e o r e t i c a l l y the b e t t e r (and I h a v e no doubt t h a t opinions will d i f f e r ) . In o r d e r t o j u s t i f y t h e d i s t u r b a n c e a n d e x p e n s e w h i c h t h e c h a n g e w o u l d i n v o l v e , t h e b a l a n c e of a d v a n t a g e w o u l d , I s u b m i t , h a v e t o b e o v e r w h e l m i n g . 4.
T h e r e is no evidence that, within the overall financial limits p r e s c r i b e d b y t h e l a t e G o v e r n m e n t , t h e p r o g r e s s of a t o m i c r e s e a r c h a n d d e v e l o p m e n t h a s in f a c t b e e n h e l d u p b y t h e d e a d h a n d of t h e C i v i l S e r v i c e . 5.
Speaking g e n e r a l l y , the e x i s t i n g o r g a n i s a t i o n h a s c a r r i e d out
a l l i t s p r o g r a m m e s on t i m e . A l l i t s m a j o r and h i g h l y c o m p l e x e s t a b l i s h m e n t s
h a v e , w i t h t h e h e l p of t h e M i n i s t r y of W o r k s , b e e n c o m p l e t e d a c c o r d i n g t o
s c h e d u l e . Britain h a s b e c o m e a m a j o r p r o d u c e r and the l a r g e s t e x p o r t e r
of r a d i o - a c t i v e i s o t o p e s . P r e p a r a t o r y w o r k i s s h o r t l y t o s t a r t o n t h e
d e v e l o p m e n t of a t o m i c p o w e r p l a n t f o r i n d u s t r y . A n a t o m i c b o m b , s u p e r i o r
to t h e B i k i n i m o d e l , h a s b e e n s u c c e s s f u l l y m a d e a n d e x p l o d e d , a n d we a r e
n o w g o i n g i n t o p r o d u c t i o n o n a l i m i t e d s c a l e . P l a n s f o r a n e x p a n s i o n of
the p r o d u c t i o n p r o g r a m m e a r e being c o n s i d e r e d , and w i l l go f o r w a r d a s s o o n
a s t h e G o v e r n m e n t , w i t h t h e a d v i c e of t h e C h i e f s of Staff, d e c i d e t h e s c a l e
of e f f o r t w h i c h o u r s t r a t e g y r e q u i r e s .
6.
T h e s e a c h i e v e m e n t s do not s u g g e s t that the o r g a n i s a t i o n
r e s p o n s i b l e h a s b e e n l a c k i n g i n " v i s i o n , e l a s t i c i t y a n d r a p i d i t y of d e c i s i o n "
o r t h a t it h a s b e e n " c r a m p e d in a s t r a i g h t j a c k e t " .
7.
In f a c t t h e o r g a n i s a t i o n h a s b e e n g i v e n a n e x c e p t i o n a l l y f r e e
h a n d . It h a s t h r o u g h o u t v i r t u a l l y f o r m u l a t e d i t s o w n p o l i c y . I t h a s b e e n
a c c o r d e d s p e c i a l p r i o r i t y i n t h e a l l o c a t i o n of m a t e r i a l s a n d h o u s i n g .
^Vithin
the expenditure approved by the G o v e r n m e n t , w o r k h a s not b e e n delayed
by any over-exacting T r e a s u r y control.
8.
T h e o n l y q u a l i f i c a t i o n to t h i s g e n e r a l s t a t e m e n t i s in r e g a r d
to s a l a r i e s . T h e r e h a v e b e e n a few c a s e s w h e r e it can be shown t h a t the
s c a l e of s a l a r i e s o f f e r e d w a s i n s u f f i c i e n t t o a t t r a c t s o m e k e y m a n n e e d e d
from outside. H o w e v e r , t h e s e difficulties have now been r e m o v e d by the
T r e a s u r y *vhich a l l o w s h i g h e r r a t e s t o b e p a i d w h e n n e c e s s a r y .
9.
The view e x p r e s s e d b y the P a y m a s t e r - G e n e r a l that t h e r e is
a " f r i g h t e n i n g r a t e of l o s s of k e y s t a f f " i s n o t b o r n e o u t b y s t a t i s t i c s , w h i c h
s h o w t h a t o u r l o s s e s c o m p a r e n o t a t a l l u n f a v o u r a b l y w i t h t h e e x p e r i e n c e of
outside industrial organisations.
10.
N o r is it r i g h t to suppose t h a t a s t a t u t o r y c o r p o r a t i o n would be
i n a n y b e t t e r p o s i t i o n t o a s s u r e s e c u r i t y t h a n a G o v e r n m e n t D e p a r t m e n t , In
one i m p o r t a n t r e s p e c t it would be definitely a t a d i s a d v a n t a g e .
Whereas
u n d e r t h e p r e s e n t s y s t e m t h e f i g u r e s of e x p e n d i t u r e c a n b e c o n c e a l e d w i t h i n
t h e t o t a l of t h e M i n i s t r y of S u p p l y E s t i m a t e s , a s e p a r a t e c o r p o r a t i o n w o u l d b e
o b l i g e d to r e v e a l i t s e x p e n d i t u r e t o the w o r l d , a s is done in A m e r i c a .
11.
It w o u l d be i l l u s o r y t o i m a g i n e t h a t a c o r p o r a t i o n , d e p e n d e n t
e n t i r e l y upon p u b l i c f i n a n c e , would be f r e e to t a k e i t s own d e c i s i o n s without
r e g u l a r consultation with the G o v e r n m e n t and without scrutiny by the Public
A c c o u n t s C o m m i t t e e o f t h e H o u s e of C o m m o n s . (In t h e U n i t e d s t a t e s t h e
e x p e n d i t u r e of t h e A t o m i c E n e r g y C o m m i s s i o n h a s t o b e j u s t i f i e d a n d
defended in d e t a i l before C o n g r e s s i o n a l C o m m i t t e e s .
12.
It w o u l d be e q u a l l y w r o n g t o a s s u m e , a s i s s u g g e s t e d , t u a t a
s t a t u t o r y c o r p o r a t i o n would b e able to d i s m i s s its officers at will without
i n c u r r i n g p u b l i c a n d P a r l i a m e n t a r y c r i t i c i s m . In t h i s c o n n e c t i o n , i t s h o u l d
b e e m p h a s i s e d t h a t i t i s f a r f r o m c e r t a i n t h a t a n y t h i n g l i k e t h e w h o l e of t h e
e x i s t i n g s c i e n t i f i c , t e c h n i c a l and a d m i n i s t r a t i v e staff would be willing to t r a n s f e r
t o a n o r g a n i s a t i o n w h i c h o f f e r e d t h e m r e d u c e d s e c u r i t y of e m p l o y m e n t a n d w h i c h
l i m i t e d t h e i r o p p o r t u n i t i e s of p r o m o t i o n t o t h e f i e l d of a t o m i c e n e r g y .
13.
E v e r y o n e w i l l a g r e e u p o n t h e i m p o r t a n c e of o b t a i n i n g
c o - o p e r a t i o n f r o m i n d u s t r y , , H o w e v e r , t h e M i n i s t r y of S u p p l y h a s a l r e a d y p r o v e d
itself able to c o - o p e r a t e m o s t effectively with i n d u s t r i a l f i r m s over a wide
f i e l d (for e x a m p l e , a i r c r a f t a n d g u i d e d w e a p o n s ) .
14.
In s h o r t , t h e r e i s no. r e a s o n t o b e l i e v e t h a t p r o g r e s s u p t o d a t e
would have been a n y g r e a t e r , quicker or c h e a p e r o r that s e c u r i t y would have
b e e n a n y t i g h t e r , if a s t a t u t o r y c o r p o r a t i o n h a d b e e n i n c h a r g e .
15.
I t c a n n o t b e d e n i e d t h a t R u s s i a i s a h e a d of B r i t a i n i n t h e
p r o d u c t i o n of a t o m i c b o m b s a n d m a y b y n o w h a v e a n o t i n c o n s i d e r a b l e s t o c k .
While we do not k n o w how m a n y y e a r s s h e h a s b e e n w o r k i n g on the p r o j e c t ,
s h e h a s w i t h o u t doubt b e e n d e v o t i n g to it m u c h l a r g e r r e s o u r c e s t h a n t h i s
c o u n t r y . If t h a t i s a r e f l e c t i o n o n B r i t a i n , i t i s a r e f l e c t i o n n o t on t h e a t o m i c
e n e r g y o r g a n i s a t i o n , b u t o n t h e p o l i c y of t h e l a t e G o v e r n m e n t w h i c h d e c i d e d
t h e s i z e of t h e a t o m i c p r o g r a m m e a n d t h e a m o u n t of m o n e y t o b e s p e n t on i t .
16.
F o r t h e r e a s o n s I h a v e e x p l a i n e d , I do not on b a l a n c e c o n s i d e r
that the p r o p o s e d change would be justified. But, should the Cabinet take a
c o n t r a r y v i e w , I s u g g e s t t h a t t h e M i n i s t r y of S u p p l y c a n q u i t e w e l l b e c r u s t e d
t o c a r r y o u t l o y a l l y t h e t r a n s f e r of f u n c t i o n s .
17.
I c a n s e e n o m e r i t i n t h e P a y m a s t e r - G e n e r a l ' s p r o p o s a l to
s e t u p a k i n d of i n t e r i m r e c e i v e r s h i p , i n v o l v i n g t h e c r e a t i o n of a n a d d i t i o n a l
M i n i s t r y ( a n d p r e s u m a b l y a l s o t h e a p p o i n t m e n t of a n a d d i t i o n a l M i n i s t e r ) , I t
would be exceedingly difficult to defend t h i s in P a r l i a m e n t a t a t i m e when our
d e c l a r e d p o l i c y is to r e d u c e G o v e r n m e n t staff and e x p e n d i t u r e .
18.
The Bill to s e t up the i n t e r i m M i n i s t r y m i g h t , a s the P a y m a s t e r G e n e r a l s u g g e s t s , be s h o r t , but it would c e r t a i n l y not be u n c o n t r o v e r s i a l .
I t w o u l d , of c o u r s e , r a i s e t h e w h o l e q u e s t i o n of t h e t r a n s f e r of t h e
r e s p o n s i b i l i t y for a t o m i c e n e r g y to an o u t s i d e s t a t u t o r y body and would be
hotly contested by the Opposition. M o r e o v e r , the i s s u e would have to be
fought out a l l o v e r a g a i n a y e a r l a t e r when the m a i n Bill w a s i n t r o d u c e d .
20.
In t h e l i g h t of t h e a b o v e c o n s i d e r a t i o n s , I r e c o m m e n d : ­
(a)
that before a decision is t a k e n , the advantages and
d i s a d v a n t a g e s of t r a n s f e r r i n g t h e c o n t r o l of a t o m i c e n e r g y
t o a s t a t u t o r y b o d y s h o u l d b e e x a m i n e d a n d r e p o r t e d on b y
a c o m m i t t e e of M i n i s t e r s , b e f o r e w h o m a l l t h e r e l e v a n t
facts would be laid: and
(b)
t h a t , i n t h e e v e n t of i t b e i n g d e c i d e d t o m a k e t h e p r o p o s e d
t r a n s f e r , the p r e s e n t o r g a n i s a t i o n should in the m e a n t i m e be
allowed to continue, thus avoiding the dislocation involved
in m a k i n g two c h a n g e s in two y e a r s .
D.S.
M i n i s t r y of S u p p l y , W . C . 2 .
25th O C T O B E R , 1952.