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THIS
D O C U M E N T
I S
THE
P R O P E R T Y
Printed
O F
HIS
for the Cabinet.
B R I T A N N I C
August
M A J E S T Y ' S
G O V E R N M E N T
1947
Copy N o 4 g
SECRET
C M . (47)
74th Conclusions
C A B I N E T 74 (47)
CONCLUSIONS
of a Meeting of the Cabinet held at 10 Downing
on Monday, 25th A ugust, 1947, at 2 - 3 0 p.m.
Street,
S.W. 1,
Present: T h e R i g h t H o n . C . R . A T T L E E , M . P . , P r i m e M i n i s t e r (in the
Chair).
The R i g h t H o n . HERBERT MORRISON,
M . P . , L o r d P r e s i d e n t of t h e Council.
The Right Hon. ERNEST BEVIN, M.P.,
Secretary of S t a t e for F o r e i g n
Affairs.
The R i g h t Hon. ARTHUR GREENWOOD,
M.P., Minister without Portfolio.
T h e R i g h t H o n . S i r STAFFORD C R I P P S ,
K.C., M . P . , P r e s i d e n t of t h e B o a r d of
Trade.
The R i g h t H o n . J . C H U T E R E D E , M . P . ,
Secretary of S t a t e for t h e H o m e
Department.
The R i g h t H o n . H U G H DALTON, M . P . ,
T h e R i g h t H o n . G . A . ISAACS, M . P . ,
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
Service.
The R i g h t Hon. A N E U R I N BEVAN, M . P . ,
M i n i s t e r of H e a l t h .
Chancellor of t h e Exchequer.
The R i g h t H o n . A . V . ALEXANDER,
M . P . , M i n i s t e r of Defence.
T h e R i g h t H o n . T H E E A R L OF L I S T O W E L ,
Secretary of S t a t e for B u r m a .
The Right H o n . E. SHINWELL, M.P.,
M i n i s t e r of Fuel a n d P o w e r .
The Right Hon. T. WILLIAMS, M.P.,
Minister
Fisheries.
of
Agriculture
and
The R i g h t H o n . G E O R G E T O M L I N S O N ,
M . P . , M i n i s t e r of E d u c a t i o n .
T h e following w e r e also p r e s e n t :
T h e R i g h t H o n . P . J . Noel-Baker, M . P . ,
Secretary of S t a t e for A i r .
The R i g h t H o n . A L F R E D B A R N E S , M . P . ,
M i n i s t e r of T r a n s p o r t .
Mr. IVOR THOMAS, M.P., P a r l i a m e n t a r y
Under-Secretary,
(Item 2).
Colonial
The Right Hon. JOHN WILMOT, M.P.,
Minister of Supply.
T h e R i g h t H o n . J O H N STRACHEY, M . P . ,
M i n i s t e r o f Food.
Sir
Office
EDWARD
Secretary,
Secretariat
S i r N O R M A N BROOK.
Mr.
S. E . V . L U K E .
BRIDGES,
Treasury.
Permanent
CABINET
74
(47)
CONTENTS
Minute
1
No.
Coal
Subject
H o u r s of W o r k i n t h e C o a l m i n i n g
2
Page
239
Industry.
B a l a n c e of P a y m e n t s
General Position.
Export Policy.
Pood Consumption.
Foreign Travel Allowances.
Petrol.
P r i c e s of G a s a n d E l e c t r i c i t y .
Agricultural Machinery.
E x p a n s i o n of C o l o n i a l P r o d u c t i o n .
Housing.
N a t i o n a l a n d L o c a l G o v e r n m e n t Staffs.
Departmental Machinery.
International Meetings.
A l l o c a t i o n of R a w M a t e r i a l s .
Consultations with Industry.
Liaison between the Treasury and the Central Economic Planning
D i s t r i b u t i o n of M a n - P o w e r .
P r o g r e s s i n g of D e c i s i o n s .
Planning Board.
S t a n d a r d i s a t i o n in t h e M o t o r I n d u s t r y .
P u b l i c i t y for C a b i n e f s Decisions.
240
Staff.
Goal.
H o u r s of W
o r k
in t h e
Coalmining
Industry.
(Previous
Reference:
CM.
(4:1
)
I
1!
Conclusions
Minute
2.)
t
1. The Lord President said t h a t t h e N a t i o n a l Coal B o a r d a n d
the N a t i o n a l U n i o n of M i n e w o r k e r s h a d failed to reach a g r e e m e n t
on t h e method of s e c u r i n g increased w o r k i n g hours in t h e coalmining
i n d u s t r y d u r i n g t h e economic emergency and, in p u r s u a n c e of t h e
C a b i n e t s decision of 17th A u g u s t , h e h a d a r r a n g e d t o discuss t h e
position w i t h the Executive of t h e U n i o n at a meeting on
21st A u g u s t . H e h a d been accompanied a t t h a t m e e t i n g by t h e
F o r e i g n Secretary, t h e M i n i s t e r of Defence a n d the M i n i s t e r of
Fuel and P o w e r . ' T h e U n i o n h a d rejected t h e proposal for iengthening the w o r k i n g d a y by half an hour, a n d h a d proposed t h e altern a t i v e of S a t u r d a y w o r k i n g . They w e r e willing to agree t h a t every
p i t should w o r k a shift of 6£ hours each S a t u r d a y d u r i n g t h e
emergency; b u t t h e y were not p r e p a r e d to accept the condition t h a t
the a t t e n d a n c e bonus should be payable only to men who h a d worked,
when required, six full shifts in t h e week. A s an a l t e r n a t i v e to t h a t
condition, they h a d suggested t h a t p i t m a n a g e r s should have discre­
tion to refuse to a d m i t to S a t u r d a y work men who h a d absented
themselves from work w i t h o u t d u e cause on any earlier d a y in the
week. M i n i s t e r s h a d felt b o u n d to reject t h a t a l t e r n a t i v e , as it
was likely to lead t o friction a n d possibly to stoppages of work.
They were satisfied t h a t , if recourse w a s to be h a d to S a t u r d a y
working, full a t t e n d a n c e could n o t be secured unless the conditions
for payment of t h e attendance bonus w e r e applied t o t h e six-day
week as they now a p p l i e d to the five-day week. T h u s , in spite of
p r o t r a c t e d discussion, t h e meeting on 21st A u g u s t h a d broken u p
w i t h o u t any a g r e e m e n t being reached on t h e method of i n c r e a s i n g
working h o u r s d u r i n g t h e emergency.
The L o r d P r e s i d e n t said t h a t the Executive of t h e U n i o n were
still considering t h e position a n d , from i n f o r m a t i o n which he h a d
received, he t h o u g h t it m i g h t be helpful if a letter were now sent
to them s t a t i n g t h a t t h e Government still favoured the proposal
of e x t e n d i n g the w o r k i n g day by half a n hour.
The Minister Fuel and Power s a i d t h a t , a l t h o u g h a s u b s t a n t i a l
number of t h e members of the E x e c u t i v e of the U n i o n m i g h t favour
the proposal for a n e x t r a half-hour, h e doubted w h e t h e r this
reflected the balance of o p i n i o n in the coalfields. H e doubted
whether the m i n e r s would be w i l l i n g either to work the e x t r a
half-hour or to agree to S a t u r d a y w o r k i n g on the basis proposed
by the N a t i o n a l Coal B o a r d . T h e best hope of securing increased
o u t p u t lay, i n h i s view, in p e r s u a d i n g the miners to implement the
agreements, a l r e a d y accepted b y t h e U n i o n , for i n c r e a s i n g stints,
removing r e s t r i c t i v e practices, a n d r e d u c i n g absenteeism.
I n discussion t h e r e w a s general a g r e e m e n t that, if recourse w a s
to be h a d t o S a t u r d a y w o r k i n g , the Government m u s t insist t h a t
the a t t e n d a n c e bonus should b e c o n d i t i o n a l on w o r k i n g t h e full
number of six s h i f t s a week where r e q u i r e d under t h e new a r r a n g e ­
ments. I t w a s desirable t h a t the Government should confirm the
line taken on t h i s p o i n t by the M i n i s t e r s who h a d interviewed the
National E x e c u t i v e on 21st A u g u s t .
F u r t h e r discussion t u r n e d on the question w h e t h e r t h e Govern­
m e n t should also express t h e i r preference for the a l t e r n a t i v e method
of preserving t h e five-day week a n d l e n g t h e n i n g t h e daily shift to
eight hours. I t w a s recognised t h a t in some p i t s no increase in
o u t p u t could be secured by w o r k i n g a n e x t r a half-hour a d a y ; b u t
there were m a n y p i t s where the e x t r a half-hour would increase
o u t p u t , especially if agreement were reached on t h e l e n g t h e n i n g of
the stints. The balance of a d v a n t a g e seemed to lie on the side of
pressing for the e x t r a half-hour, on t h e u n d e r s t a n d i n g t h a t this w a s
suggested a s a n emergency measure for t h e next nine m o n t h s a n d
would not be continued thereafter w i t h o u t further consultation w i t h
the Union.
34238-4
The C a b i n e t I n v i t e d the M i n i s t e r of F u e l a n d P o w e r to send a letter to
t h e Secretary of t h e N a t i o n a l U n i o n of M i n e w o r k e r s con­
firming the views expressed by M i n i s t e r s at t h e m e e t i n g
w i t h t h e U n i o r t s r e p r e s e n t a t i v e s on 21st A u g u s t , a n d
2 '
B
a d d i n g t h a t , after reviewing the whole m a t t e r , t h e Govern­
m e n t still a d h e r e d to t h e view t h a t their o r i g i n a l proposal
f o r a d d i n g a n e x t r a h a l f - h o u r t o the w o r k i n g d a y would
be the most effective m e t h o d of increasing coal output
d u r i n g the p r e s e n t economic emergency.
Balance
of
Payments.
(Previous
Reference:
C M . (47) 7 3 r d 2. T h e C a b i n e t h a d before t h e m m e m o r a n d a (noted below) on
a number of suggestions, which h a d been p u t f o r w a r d a t a n informal
meeting of M i n i s t e r s on 20th A u g u s t , for f u r t h e r a d j u s t m e n t s in
t h e n a t i o n a l economy following t h e decision to l i m i t the converti­
bility of s t e r l i n g .
Conclusions.) General
Position. The Chancellor of the Exchequer
s a i d t h a t the i m m e d i a t e effect
of this decision h a d been less serious t h a n h a d been f e a r e d ; and
none of t h e countries from which w e d r e w s u b s t a n t i a l i m p o r t s had
so f a r proved i n t r a n s i g e n t . T h e l a t e s t figures of d r a w i n g s on the
U n i t e d S t a t e s C r e d i t were $17 million on 21st A u g u s t and
8 2 1 million on 22nd A u g u s t ; a n d t h e estimated d r a w i n g s for
Monday, 2 5 t h A u g u s t , were $ 5 4 - 5 million.
T h e Mission to
W a s h i n g t o n deserved g r e a t credit for the skill w i t h w h i c h they had
h a n d l e d t h e n e g o t i a t i o n s and, in p a r t i c u l a r , for t h e i r success in
p e r s u a d i n g the U n i t e d States G o v e r n m e n t to accept f o r m a l notifica­
t-ion of our intention to d r a w a f u r t h e r S i 5 0 million on 29th August.
T h i s would leave $400 million of t h e C r e d i t on which, in accordance
w i t h our p r o m i s e in the exchange of l e t t e r s w i t h t h e Secretary of
t h e U n i t e d S t a t e s T r e a s u r y , no f u r t h e r d r a w i n g s w o u l d be made
p e n d i n g f u r t h e r consultation between t h e two Governments.
The position r e g a r d i n g C a n a d a a n d the A r g e n t i n e was at
present u n c e r t a i n ; discussions h a d been opened w i t h the C a n a d i a n
Government w i t h t h e object of s e c u r i n g their agreement to our
d r a w i n g on t h e residue of the C a n a d i a n C r e d i t at a g r e a t e r rate
t h a n h i t h e r t o , b u t he h a d not yet h a d a r e p o r t on the C a n a d i a n
G o v e r n m e n t s attitude.' F i r s t r e p o r t s from the A r g e n t i n e were not
u n h o p e f u l ; it seemed likely t h a t t h a t Government would be ready
to continue s u p p l i e s of meat a n d w o u l d not propose a n y variation
i n the t e r m s of the R a i l w a y T r a n s f e r A g r e e m e n t . A s r e g a r d s the
sterling area, all the Governments concerned h a d been pressed to
reduce t h e i r dollar claims to a m i n i m u m , a n d it seemed likely
t h a t t h e i r response would be s a t i s f a c t o r y .
R e p r e s e n t a t i v e s of
A u s t r a l i a a n d I n d i a were due to v i s i t L o n d o n in September for the
a n n u a l m e e t i n g of t h e I n t e r n a t i o n a l M o n e t a r y F u n d a n d B a n k ; and
he proposed t h a t N e w Z e a l a n d a n d E i r e should be invited to send
r e p r e s e n t a t i v e s t o L o n d o n a t the same time. T h e r e would be no
objection to m a k i n g public t h e i n t e n t i o n to hold such discussions
once the necessary a r r a n g e m e n t s h a d been made. I n a d d i t i o n , there
would be o p p o r t u n i t y i n September for discussions i n L o n d o n with
the Secretary of the U n i t e d S t a t e s T r e a s u r y . I n general, he hoped
the Cabinet would agree t h a t the G o v e r n m e n t should take a strong
line in r e s i s t i n g a t t e m p t s by countries other t h a n U n i t e d States
dollar countries to obtain p a y m e n t i n dollars in respect of imports
to this country.
The C a b i n e t w e r e in general a g r e e m e n t w i t h t h e Chancellor of
the E x c h e q u e r on t h i s point, a n d wdth h i s suggestion t h a t the New
Z e a l a n d a n d E i r e Governments should be invited to send represen­
tatives t o L o n d o n for discussions in September.
The Chancellor of the E x c h e q u e r t h e n h a n d e d r o u n d copies of
a note s u m m a r i s i n g t h e effect on o u r balance of p a y m e n t s of the
various m e a s u r e s a u t h o r i s e d or proposed. T h i s showed t h a t the
monthly savings which would be secured by the decisions announced
by the P r i m e M i n i s t e r in t h e H o u s e of Commons on 6 t h August
a n d by t h e f u r t h e r proposals contained in the various memoranda
now u n d e r consideration by t h e Cabinet would a m o u n t to
£ 2 6 ^ million. A s r e g a r d s t r a d e w i t h the A m e r i c a n continent,
however, it w a s estimated t h a t between mid-1947 a n d mid-1948 the
deficit between i m p o r t s a n d e x p o r t s would be approximately
£ 6 0 0 million. U n d e r the conditions e x i s t i n g u p t o 2 0 t h A u g u s t
t h a t deficit would have been wholly i n d o l l a r s ; a n d u n t i l negotiations
h a d t a k e n place w i t h the Governments of C a n a d a , the A r g e n t i n e
a n d other South A m e r i c a n countries it w a s impossible to say whether
or to w h a t e x t e n t we should p e r s u a d e these countries to sell us goods
in f u t u r e for sterling. T h e n e a r e r w e could get to a t t a i n i n g a
balance of payments, the greater t h e likelihood t h a t countries would
accept sterling.
Export
Policy.
(Previous
Reference:
CM. (47) 67th
Conclusions,
Minute 2.)
T h e Cabinet t h e n discussed f u t u r e e x p o r t policy.
The President of the Board of Trade said t h a t a review of the
e x p o r t p r o g r a m m e of each i n d u s t r y h a d recently been completed;
this h a d shown t h a t e x p o r t s should reach by the m i d d l e of 1948 a
level of 140 per cent, of t h e 1938 figure. I n view of recent develop­
ments, however, he was considering t h e possibility of e x p e d i t i n g
t h i s p r o g r a m m e w i t h a view to r e a c h i n g the t a r g e t of 140 p e r cent,
by the end of 1947. H e hoped it would be possible to submit a r e p o r t
on t h i s question to t h e Cabinet in about a f o r t n i g h t . H e proposed
to set u p a committee, u n d e r the c h a i r m a n s h i p of t h e Secretary for
Overseas T r a d e , to keep t h e e x p o r t p r o g r a m m e continually under
r e v i e w ; a n d he also h a d in m i n d t h e . a p p o i n t m e n t of a Chief
Executive w i t h general responsibility for t h e c a r r y i n g o u t of the
e x p o r t p r o g r a m m e . I t should not, however, be overlooked that, in
order to achieve t h e agreed e x p o r t t a r g e t s , s u b s t a n t i a l reductions
would have to be m a d e in domestic investment projects a n d in the
provision of consumer goods for t h e home market. A s a g a i n s t this,
a n increase of e x p o r t s to 160 per cent, of t h e 1938 figure would mean
t h a t t h e g a p between our imports a n d e x p o r t s h a d been bridged.
T
The Minister of Health said t h a t t h e r e would be general agree­
ment about the need to diminish our dependence on t h e U n i t e d
S t a t e s . H e t h o u g h t , however, t h a t it would be inadvisable to adopt
equally d r a s t i c measures in an a t t e m p t to secure a balance of pay­
ments w i t h the non-dollar countries. O u r object m u s t be to e x p a n d
our t r a d e w i t h t h e m to t h e m a x i m u m e x t e n t possible, a n d t h e appli­
cation to them of measures suitable for t h e U n i t e d S t a t e s would have
the opposite effect. I n these circumstances considerable risks should
be t a k e n t o revive t r a d e , even if this involved acquiescence in a n
adverse balance of t r a d e for a y e a r or two. G r e a t a t t e n t i o n would
have to be p a i d to t h e most effective direction of exports. H e would
not oppose such reductions in the domestic c a p i t a l investment
p r o g r a m m e as m i g h t be shown to be necessary a n d effective; but these
should be presented to t h e public, not merely as negative cuts, but
as a redeployment of the n a t i o n ' s productive effort rendered
necessary by t h e p r e s e n t economic s i t u a t i o n .
The Minister of Fuel and Povjer said t h a t t h i s country could
not avoid a c o n t i n u i n g dependence on t h e U n i t e d S t a t e s .
He
t h o u g h t it would be a mistake to t r y to secure a n i m m e d i a t e expan­
sion of exports a t t h e expense of t h e much-needed c a p i t a l re-equip­
ment of t h i s country. A t any rate, t h e Cabinet should have a n
o p p o r t u n i t y to consider t h e implications of such a diversion before
final decisions were t a k e n .
The Prime Minister
said t h a t in all recent public statements
the Government h a d emphasised t h e fact t h a t our financial difficul­
ties m u s t be m e t p a r t l y by increasing exports, p a r t l y by reducing
i m p o r t s a n d p a r t l y by the increased p r o d u c t i o n of food a n d other
p r o d u c t s which would otherwise have to be i m p o r t e d from h a r d ­
currency areas. I t was necessary to m a i n t a i n a p r o p e r balance
between these three aspects of t h e G o v e r n m e n t s policy.
Pood
Consumption.
(Previous
Reference:
CM. (47)67th
Conclusions,
Minute 2.)
T h e C a b i n e t t h e n considered a n o t e by the S e c r e t a r y of the
Cabinet ( C P . (47) 234) covering a n e x c h a n g e of m i n u t e s between
the P r i m e M i n i s t e r a n d the M i n i s t e r of Food on cuts in food con­
sumption, a n d a m e m o r a n d u m by the M i n i s t e r of Food ( C P . (47)'
239) on the considerations which should govern changes in basic
food rations.
The Minister
of Food said t h a t in C P . (47) 239 h e h a d made
c e r t a i n proposals for r e d u c i n g food consumption, i n a d d i t i o n to the
reduction in t h e monthly allotment of p o i n t s from 32 to 28 which
h a d a l r e a d y been made. H i s proposals were as follows :—
(i) A reduction should be m a d e in t h e supplies of the principal
r a t i o n e d foods to commercial c a t e r i n g e s t a b l i s h m e n t s ;
(ii) The period d u r i n g w h i c h a guest might, s t a y a t an hotel
w i t h o u t s u r r e n d e r i n g h i s r a t i o n book should be reduced from four
n i g h t s to o n e ;
(iii) T h e m e a t r a t i o n should be reduced from 14th Sepember
from Is. 2d. to Is.;
(iv) T h e tea r a t i o n should be m a i n t a i n e d a t t h e p r e s e n t reduced
level of 2 oz. a week; a n d
(v) T h e i m p o r t a t i o n of c e r t a i n l u x u r y foods should be
prohibited.
H e also suggested t h a t t h e g r a v i t y of t h e economic situation
m i g h t be effectively b r o u g h t home to t h e public by a n increase in
t h e price of c e r t a i n heavily subsidised r a t i o n e d foods. Thus, an
increase of 2d. a p o u n d in the price of tea a n d s u g a r would save
£ 2 3 million a n d would t o t h a t extent relieve t h e inflationary
p r e s s u r e on o t h e r commodities. A s r e g a r d s the f u t u r e , p r e p a r a t i o n s
were in h a n d a g a i n s t t h e contingency of f u r t h e r serious cuts in our
basic r a t i o n s . C o n s u l t a t i o n s h a d been held w i t h t h e T r a d e s Union
Congress R a t i o n i n g Committee w i t h a view to w o r k i n g out an
acceptable system of differential r a t i o n i n g . H e h a d been advised
by two n u t r i t i o n a l a u t h o r i t i e s t h a t , if f u r t h e r reductions in the
basic r a t i o n s became necessary, i t would be necessary to bring bread
r a t i o n i n g to a n end. H e would submit recommendations to the
Cabinet on t h i s p o i n t in September.
I n discussion, t h e following p o i n t s were m a d e :—
(a) The Minister
of Food u n d e r t o o k to consider re-imposing
t h e p r i c e control on g a m e ;
(&) I t w a s the g e n e r a l view of M i n i s t e r s t h a t the period for
which guests m i g h t s t a y in hotels w i t h o u t s u r r e n d e r i n g ration books
should be reduced to two n i g h t s r a t h e r t h a n o n e ;
(c) The Prime Minister suggested t h a t a l i m i t should be placed'
on the numbers of g u e s t s a t public luncheons a n d d i n n e r s ;
(d) The Minister of Food s a i d t h a t he h a d proposed t h a t the
e x i s t i n g scale of allowances for c a t e r i n g establishments should be
reduced by (i) a cut of 20 per cent, in all r a t i o n e d a n d points goods
except b r e a d a n d cooking f a t s ; or (ii) a cut of 25 p e r cent, in the
meat, bacon, ham, cheese a n d p o i n t s foods. These proposals had
been strongly resisted by the c a t e r i n g t r a d e , b u t t h e r e seemed some
p r o s p e c t t h a t agreement m i g h t be reached on reductions of 15 per
cent: a n d 17^ per cent, in place of the p e r c e n t a g e s he h a d originally
proposed. H e t h o u g h t it m i g h t be advisable to decide on reductions
w h i c h would be accepted by t h e t r a d e . I n a d d i t i o n , he suggested
t h a t t h e cheap c a t e r i n g establishments (i.e., those which did not
c h a r g e more t h a n 2,?. 3d. for any meal) should be exempted
a l t o g e t h e r ; for the imposition of t h e proposed reductions on these
establishments would affect m a n y workers who h a d no canteen
facilities.
T h e Cabinet endorsed these proposals.
(e) I t w a s considered t h a t the proposed reduction in the meat
r a t i o n should take effect e a r l i e r t h a n 14th September, e.g., if
possible, from 1st September.
(/) The Minister
of Food said t h a t h e w a s consulting the
Chancellor of the E x c h e q u e r about t h e p r o h i b i t i o n of the import of
c e r t a i n l u x u r y foods. A n i m p o r t a n t saving could be achieved by
the r e d u c t i o n of i m p o r t s of F r e n c h wines, a n d h e would consult the
F o r e i g n Secretary also on t h i s point.
1 3
(g) The Chancellor of the Exchequer s a i d t h a t he accepted t h e
views of the M i n i s t e r of Food o n t h e need for i n c r e a s i n g the p r i c e
of c e r t a i n subsidised rationed food-stuffs.
H e t h o u g h t it would
be better tactics to m a k e g r a d u a l reductions from time to time r a t h e r
t h a n to a t t e m p t a n y spectacular cut i n food subsidies.
The Foreign Secretary t h o u g h t t h a t , i n a d d i t i o n to the sugges­
tions m a d e by the M i n i s t e r of Food, the price of b r e a d should be
increased to IQd.
The Minister of Health said t h a t the g r a d u a l reduction of food
subsidies on t h e lines suggested by t h e Chancellor of t h e E x c h e q u e r
would expose the Government to the c r i t i c i s m of r e d u c i n g the
s t a n d a r d of life of t h e workers w i t h o u t a n y compensatory social
p r o g r a m m e . The Minister
of Fuel and Power was also opposed
to the reduction of food subsidies on the g r o u n d t h a t these would
t h r o w a n excessive b u r d e n on the poorer element of t h e community.
The Minister
of Labour suggested t h a t a n y such reductions
should be linked to t h e abolition of bread r a t i o n i n g .
(h) M i n i s t e r s hoped t h a t it m i g h t prove possible to abolish
bread r a t i o n i n g i n t h e n e a r future.
The Cabinet—
(1) A p p r o v e d t h e proposals m a d e by t h e M i n i s t e r of F o o d in
C P . (47) 239 for r e d u c i n g food consumption, subject to
the modifications noted i n p a r a g r a p h s (&), (d) a n d (e)
above a n d to t h e a d d i t i o n s noted in p a r a g r a p h s (a) a n d
(c) above;
(2) A g r e e d i n p r i n c i p l e t h a t the price of some subsidised food­
stuffs should be increased, a n d invited t h e Chancellor
of the E x c h e q u e r , in consultation w i t h the M i n i s t e r of
Food, to submit detailed recommendations. Foreign
Travel
Allowances.
(Previous
Reference:
C.M.(47)69th
Conclusions,
Minute
2.)
The Chancellor of the Exchequer recalled t h a t on 5th A u g u s t
( C M . (47) 69th Conclusions, M i n u t e 2 (5)) the Cabinet h a d a g r e e d
t h a t as from 1st October, 1947, foreign t r a v e l allowances should be
reduced from £ 7 5 for 12 months to £ 3 5 for 14 months, a n d t h a t
the p r o p o r t i o n a t e allowance for a child should be reduced to £ 2 0 .
I n view of subsequent developments in t h e financial s i t u a t i o n , he
t h o u g h t t h a t more d r a s t i c reductions should now be imposed. H e
therefore proposed that, t h e approved reduction should t a k e effect a t
once, a n d t h a t from 1st October, 1947, no foreign exchange should
be m a d e available for pleasure travel abroad. I n a d d i t i o n , he
proposed t h a t the a u t h o r i t y of the commercial b a n k s to a p p r o v e
exchange a p p l i c a t i o n s on behalf of business men should at once be
drastically limited. H i s proposals, which w e r e set out i n C P . (47)
238, would result in a saving of about £ 3 0 million a year.
I n discussion t h e following p o i n t s w e r e m a d e :—
(a) The Lord President
suggested t h a t travel agencies would
be seriously affected by these proposals a n d should be encouraged
to concern themselves w i t h a r r a n g e m e n t s for holidays in the U n i t e d
K i n g d o m , p a r t i c u l a r l y for foreign visitors.
(b) The Prime Minister
suggested t h a t any public announce­
ment on this subject should discourage avoidable travel a b r o a d for
pleasure purposes even before t h e b a n became effective on
1st October.
(/-') The Cabinet t h o u g h t t h a t visits abroad by Members of P a r l i a m e n t should also be reduced a s f a r a s possible. T h e C a b i n e t —
.
(3) A p p r o v e d t h e proposals m a d e by the Chancellor of the E x c h e q u e r in C P . (47) 238 for the reduction of foreign travel allowances. 5
Petrol. (Previous
Ref erence: C M . (47) 6 9 t h Conclusions, Minute
2.) T h e C a b i n e t next discussed a m e m o r a n d u m by the Minister of
F u e l a n d P o w e r ( C P . (47) 235) e x a m i n i n g t h e implications of the
suggestion t h a t the basic p e t r o l r a t i o n should be abolished from
30th September, 1947.
The Minister of Fuel and Power said t h a t t h e m a i n arguments
nst t h i s proposal w e r e s u m m a r i s e d in h i s memorandum.
1U1
UJGCII
T h e abolition
of the basic p e t r o l r a t i o n would give rise to some
political a n d a d m i n i s t r a t i v e difficulties; b u t i t would save about
£ 5 million in dollars, a n d if h i s colleagues t h o u g h t t h a t in our
present economic s i t u a t i o n t h i s consideration w a s decisive he was
ready to a g r e e t h a t the basic r a t i o n should be abolished.
£—.
^^/i
The Minister
of Transport
s a i d t h a t t h e abolition of the basic
petrol r a t i o n would increase t h e s t r a i n on public t r a n s p o r t ; but in
present circumstances he w a s n o t p r e p a r e d t o object to the proposal
on t h a t account.
T h e C a b i n e t were informed t h a t there w o u l d be a consequential
drop i n t h e d e m a n d for new c a r s for the home m a r k e t ; but this
should not create unemployment in t h e m o t o r i n d u s t r y since for the
p r e s e n t there should be no difficulty i n i n c r e a s i n g t h e e x p o r t of cars.
L a t e r on, s u r p l u s capacity m i g h t be used for t h e m a n u f a c t u r e of
a g r i c u l t u r a l machinery.
The C a b i n e t ­
(4) A g r e e d t h a t t h e basic p e t r o l r a t i o n should be abolished from
30th September, 1947.
Prices
Gas
of and Electricity. T h e C a b i n e t considered a m e m o r a n d u m by t h e Minister of Fuel
a n d P o w e r ( C P . (47) 240) on the suggestion t h a t an immediate
increase should be m a d e i n the p r i c e s of gas a n d electricity, in order
to reflect the forthcoming increase i n coal prices a n d to check con­
sumption d u r i n g the coming w i n t e r .
The Minister
of Fuel and Power said t h a t , although the
increased price of coal would necessitate some increases in gas prices,
it would n o t be possible to assess t h e scale of these u n t i l t h e a p p l i c a ­
tions of the various gas u n d e r t a k i n g s h a d been considered. As
r e g a r d s electricity, there w o u l d be no g r o u n d s for any general
increase i n p r i c e ; but h e w a s p r o p o s i n g to consider whether restric­
tions should be imposed on t h e use of the t w o - p a r t tariff.
The Cabinet—
(5) A g r e e d t h a t there should be no i m m e d i a t e announcement of
a n increase in the prices of gas a n d electricity.
Agricultural Machinery.
(Previous
Reference:
C M . (47) 67th
Conclusions,
Minute
2.)
T h e C a b i n e t next considered a m e m o r a n d u m by the Ministry of
A g r i c u l t u r e ( C P . . (47) 241) on t h e possibility of e x p a n d i n g the
p r o d u c t i o n of a g r i c u l t u r a l m a c h i n e r y for t h e home m a r k e t and for
e x p o r t . T h i s stated t h a t there could be a s u b s t a n t i a l increase in
the m a n u f a c t u r e of a g r i c u l t u r a l machinery, if l a r g e r allocations of
steel could be m a d e for this p u r p o s e and if a g r i c u l t u r a l machinery
could be a d d e d t o the list of p r o d u c t s for w h i c h over-riding priority
w a s to be given u n d e r the P r i m e M i n i s t e r ' s directive ( C P . (47) 92
(Revise)).
The Prime Minister said t h a t the C a b i n e t could not properly
decide t h a t t h e amounts of steel specified in p a r a g r a p h 4 of
C P . (47) 241 should be allocated for the p r o d u c t i o n of agricultural
m a c h i n e r y before k n o w i n g w h a t effect such a decision would have
on other i m p o r t a n t p r o g r a m m e s . Nor would ib be expedient that
o v e r - r i d i n g p r i o r i t y should be given for a g r i c u l t u r a l machinery, as
proposed in- p a r a g r a p h 5 of C P . (47) 2 4 1 ; for f u r t h e r additions to
the s h o r t list of projects contained in C P . (47) 92 (Revise) would
d e f e a t t h e objects of t h a t list. T h e p r o p o s a l s p u t forward in
C P . (47) 241 should be considered in the first instance by the
M a t e r i a l s Committee.
I n discussion questions were r a i s e d a b o u t t h e efficacy of t h e
e x i s t i n g system.of allocating steel. T h e C a b i n e t w e r e informed t h a t ,
owing to t h e drop in steel p r o d u c t i o n o n account of the fuel c r i s i s
d u r i n g the p a s t w i n t e r , the t o t a l a m o u n t of t h e a u t h o r i t i e s issued
for t h e acquisition of steel exceeded the s u p p l i e s of steel n o w
available; a n d it h a d become necessary to o v e r h a u l the w-hole of
the existing system for a u t h o r i s i n g m a n u f a c t u r e r s to a c q u i r e steel.
T h i s review h a d been p u t in h a n d by the M i n i s t r y of S u p p l y .
I t w a s also suggested in t h e discussion t h a t m a n u f a c t u r e r s w e r e
sometimes able to obtain steel w i t h o u t p r o p e r a u t h o r i t y ; a n d it w a s
agreed t h a t M i n i s t e r s who obtained any evidence in s u p p o r t of
t h i s suggestion should communicate it to t h e M i n i s t e r of S u p p l y .
T h e Cabinet were informed t h a t , for the forthcoming allocation
period, a n a d d i t i o n a l a m o u n t of 200,000 tons of steel was available
for allocation. I t w a s i m p o r t a n t t h a t t h i s e x t r a q u a n t i t y should
be allocated to purposes, such as t h e p r o d u c t i o n of a g r i c u l t u r a l
machinery, which would be of special value i n r e d r e s s i n g our adverse
balance of p a y m e n t s .
T h e Cabinet—
1
(6) I n v i t e d t h e C h a i r m a n of t h e M a t e r i a l s Committee to
consider w h a t could be done to meet t h e essential steel
r e q u i r e m e n t s of the e x p a n d e d p r o g r a m m e for a g r i c u l ­
t u r a l m a c h i n e r y outlined in C P . (47) 2 4 1 ; a n d asked
t h a t a f u r t h e r r e p o r t should be m a d e to the C a b i n e t if
the essential needs of this p r o g r a m m e could n o t be met
w i t h o u t serious interference w i t h other i m p o r t a n t
programmes.
(7) A g r e e d t h a t , i n allocating the a d d i t i o n a l q u a n t i t i e s of steel
available for the n e x t allocation period, the C h a i r m a n
of the M a t e r i a l s Committee should p a y special a t t e n t i o n
to projects w h i c h would h e l p to redress our adverse
balance of p a y m e n t s ;
( 8 ) A s k e d the L o r d P r e s i d e n t to consult w i t h the M i n i s t e r of
S u p p l y a n d t h e C h a i r m a n of t h e M a t e r i a l s C o m m i t t e e
on the a d j u s t m e n t s r e q u i r e d in t h e e x i s t i n g m a c h i n e r y
for allocating steel.
Expansion
of C o l o n i a l
Production.
T h e Cabinet next considered a m e m o r a n d u m by the P a r l i a m e n ­
t a r y U n d e r - S e c r e t a r y of S t a t e for t h e Colonies' ( C P . (47) 242)
r e g a r d i n g the possibilities of increased p r o d u c t i o n of d o l l a r - e a r n i n g
commodities in t h e Colonies.
The Parliamentary
Under-Seeretary
of State for the Colonies
said t h a t before the w a r t h e Colonies in general h a d a l a r g e
favourable balance w i t h dollar countries which they spent m a i n l y i n
the sterling area. T h e only i m p o r t a n t commodity of which increased
supplies could be r a p i d l y m a d e available for sale to the U n i t e d
S t a t e s w a s rubber. U n i t e d S t a t e s i m p o r t s of rubber w e r e being
artificially restricted by t h e Government r e g u l a t i o n r e q u i r i n g t h a t
50 p e r cent, of the rubber used by A m e r i c a n m a n u f a c t u r e r s should
be synthetic rubber. I f this r e q u i r e m e n t could be removed, t h e r e
w a s a prospect of s u b s t a n t i a l a d d i t i o n a l dollar e a r n i n g s .
I n c r e a s e d supplies of c e r t a i n o t h e r commodities could be sold
to the U n i t e d S t a t e s if U n i t e d K i n g d o m p u r c h a s e s were restricted.
Of these, t h e most i m p o r t a n t was cocoa. T h e r e were longer-term
possibilities in the expansion of Colonial o u t p u t of tin, rubber, lead
a n d other m i n e r a l s . P r o g r e s s was, however, in some cases held u p
by t h e lack of necessary c a p i t a l e q u i p m e n t ; for instance, the
M a l a y a n t i n i n d u s t r y w a s seriously *short of dredgers, a n d t h e
development of t h e lead deposits in T a n g a n y i k a w a s dependent u p o n
the supply of r a i l w a y t r a c k . 100,000 tons of g r o u n d n u t s were held
u p a t K a n o a w a i t i n g the supply of locomotives to the N i g e r i a n
Railways.
P o i n t s in discussion w e r e : - ­
(a) The President
of the Board of Trade s a i d t h a t the United
S t a t e s Government h a d now agreed to reduce to 3 3 ^ per cent, the
compulsory p r o p o r t i o n of synthetic rubber to be used by American
m a n u f a c t u r e r s . U n f o r t u n a t e l y , t h i s coincided w i t h a recession in
t h e d e m a n d for t y r e s in t h e U n i t e d States, so t h a t it might not
result in a d d i t i o n a l i m p o r t s .
(&) The Minister
of Food d e p r e c a t e d t h e suggestion that a
p r o p o r t i o n of the cocoa s u p p l i e s for the U n i t e d K i n g d o m should
be diverted to t h e U n i t e d S t a t e s in view of t h e recent reduction in
t h e tea r a t i o n .
(c) The Prime Minister
said t h a t i m m e d i a t e steps should be
t a k e n to a s c e r t a i n w h e t h e r t h e r a i l w a y e q u i p m e n t r e q u i r e d for the
development of Colonial p r i m a r y p r o d u c t s could be made available
from s u r p l u s W a r D e p a r t m e n t stock.
(d) The Prime Minister u n d e r t o o k to consider w h e t h e r a single
i n d i v i d u a l should not be a p p o i n t e d w i t h full powers to enquire
into stocks of s u r p l u s stores held by the M i n i s t r y of Supply and
the Service D e p a r t m e n t s a n d to make recommepdations regarding
t h e i r disposal.
T h e C a b i n e t ­
(9) I n v i t e d t h e F o r e i g n S e c r e t a r y to consider whether any
f u r t h e r a p p r o a c h should be m a d e to t h e U n i t e d States
Government w i t h a view to i n d u c i n g t h e m to increase
their i m p o r t s of n a t u r a l rubber, w h e t h e r for current con­
s u m p t i o n or for stock-piling.
(10) A s k e d the Chancellor of t h e E x c h e q u e r , in consultation
w i t h t h e M i n i s t e r of Food a n d the P a r l i a m e n t a r y UnderSecretary of S t a t e for the Colonies, to consider the possi­
bility of d i v e r t i n g to the U n i t e d S t a t e s some proportion
of our e x i s t i n g i m p o r t s of cocoa from Colonial
territories.
(11) Asked t h e P a r l i a m e n t a r y U n d e r - S e c r e t a r y of State for
the Colonies to consider w h e t h e r a foreign firm, e.g.,
from Belgium, could not be i n v i t e d to accept a contract
for b u i l d i n g the r a i l w a y r e q u i r e d to exploit the
T a n g a n y i k a lead deposits.
T h e C a b i n e t considered a note by the S e c r e t a r y ( C P . (47) 236)
embodying the comments of the M i n i s t r y of H e a l t h on certain sug­
gestions for a d j u s t m e n t s i n t h e G o v e r n m e n t h o u s i n g programme.
The Minister
of Health said t h a t , a f t e r t h e P a r l i a m e n t a r y
debates o n t h e economic s i t u a t i o n , he h a d cancelled e x i s t i n g licences
for the b u i l d i n g of houses for sale. H e h a d also a r r a n g e d t h a t the
a p p r o v a l of t e n d e r s for t h e erection of houses b y local authorities
should be restricted for t h e t i m e being to r u r a l a n d m i n i n g areas.
H e h a d recently suggested t o the M i n i s t e r of W o r k s t h a t steps should
be taken to p r e v e n t the e s t a b l i s h m e n t of n e w firms of builders. These
measures would suffice to hold the position u n t i l t h e comprehensive
review of the housing p r o g r a m m e could be completed. I t was his
i n t e n t i o n that, w i t h o u t d i s h o n o u r i n g e x i s t i n g contracts, the pro­
g r a m m e should be allowed to r u n down t o a m a x i m u m figure of
200,000 houses a year. H e hoped, however, t h a t when a revised
p r o g r a m m e h a d been a u t h o r i s e d , as a result of t h e review now being
held, the Government would a d h e r e to t h a t p r o g r a m m e for a sub­
s t a n t i a l period.
Meanwhile, he would d e p r e c a t e any further
announcement about t h e h o u s i n g p r o g r a m m e .
T h e C a b i n e t ­
(12) A g r e e d t h a t n o f u r t h e r announcement need be made about
t h e Government h o u s i n g p r o g r a m m e u n t i l Ministers had
decided w h a t a d j u s t m e n t s must be m a d e in t h a t p r o ­
g r a m m e as a result of the review w h i c h w a s being m a d e
of the investment p r o g r a m m e as a whole.
The C a b i n e t next discussed a m e m o r a n d u m by t h e L o r d P r e s i ­
dent ( C P . (47) 237) containing v a r i o u s suggestions for a d j u s t m e n t
of m a c h i n e r y a n d methods in economic m a t t e r s .
National
and
Local
Government
Staffs.
(Previous
Reference:
C.M.(47)49th
Conclusions,
Minute
5.)
The Lord President
suggested t h a t t h e M i n i s t e r i a l Committee
on Civil Service M a n - P o w e r should a g a i n consider, in t h e l i g h t of
our c u r r e n t economic situation, w h e t h e r f u r t h e r reductions could
n o t be m a d e in Civil Service staffs; a n d t h a t t h e M i n i s t e r of H e a l t h
a n d the S e c r e t a r y of State for Scotland should t h e r e a f t e r press for
a c o r r e s p o n d i n g reduction in local government staffs. The Com­
m i t t e e should invite M i n i s t e r s to reconsider, in the l i g h t of the
p r e s e n t emergency, the possibility of r e d u c i n g staffs t h r o u g h cur­
t a i l i n g or p o s t p o n i n g projects to which they h a d h i t h e r t o felt
committed by pledges previously given.
The C a b i n e t ­
(13) A s k e d the P r i m e M i n i s t e r to a r r a n g e for the M i n i s t e r i a l
Committee on Civil Service M a n - P o w e r to be recon­
vened, w i t h extended terms of reference, for the p u r ­
pose of conducting a f u r t h e r review of Civil Service
staffs on the basis proposed in p a r a g r a p h 2 of
C P . (47) 2 3 7 : a n d to invite the M i n i s t e r of H e a l t h a n d
t h e Secretary of S t a t e for Scotland to press for a corres­
p o n d i n g reduction in local government staffs.
Departmental
Machinery.
(Previous
Reference:
C M . (47) 71st
Conclusions,
Minute
1.)
International
Meetings.
A f t e r considering p a r a g r a p h 3 of C P . (47) 237, t h e C a b i n e t —
(14) I n v i t e d M i n i s t e r s in c h a r g e of D e p a r t m e n t s concerned w i t h
economic affairs to satisfy themselves t h a t effective
machinery was available in their D e p a r t m e n t s for the
executive action required, in conjunction w i t h the
C e n t r a l Economic P l a n n i n g Staff a n d t h e i n d u s t r i e s con­
cerned, in such m a t t e r s as progressing deliveries, &c.
The
be m a d e
to world
t h a t the
national
reduced.
Lord President suggested t h a t a f u r t h e r effort should now
to r e s t r i c t i n t e r n a t i o n a l conferences t o m a t t e r s essential
security a n d economic rehabilitation. H e also suggested
delegations sent from t h e LTnited K i n g d o m to such i n t e r ­
conferences as continued to be held m i g h t be substantially
T h e r e w a s general agreement t h a t t h e first of these proposals
should be reviewed by the Official S t e e r i n g Committee on I n t e r ­
n a t i o n a l O r g a n i s a t i o n s . A s r e g a r d s the second, while the size of
o u r delegations m i g h t be reduced, Ivlinisters w e r e not p r e p a r e d to
commit themselves to the 50 p e r cent, reduction suggested i n the
Lord P r e s i d e n t s paper.
The Cabinet—
(15) I n s t r u c t e d the Official S t e e r i n g Committee on I n t e r ­
n a t i o n a l O r g a n i s a t i o n s to submit, t h r o u g h the F o r e i g n
Secretary, a r e p o r t on the possibility of securing t h e
postponement of the less essential
international
meetings, on the lines suggested i n p a r a g r a p h 4 (a)
a n d (b) of C P . (47) 2 3 7 ; a n d on t h e possibility of l i m i t i n g
t h e size of t h e delegations sent from t h e U n i t e d K i n g ­
dom to such i n t e r n a t i o n a l conferences a s continued to
be held, a n d on the procedure to be adopted for t h a t
purpose.
A f t e r discussing p a r a g r a p h 5 of C P . (47) 237 the C a b i n e t ­
(16) Took n o t e t h a t t h e L o r d P r e s i d e n t would discuss w i t h the
C h a i r m a n of the M a t e r i a l s Committee whether any
a d j u s t m e n t s were r e q u i r e d in t h e existing machinery
for t h e allocation of r a w m a t e r i a l s .
I n p a r a g r a p h 6 of C P . (47) 237 the L o r d P r e s i d e n t suggested
t h a t discussions w i t h t h e t w o sides of i n d u s t r y on the p r e p a r a t i o n
of a l l a d m i n i s t r a t i v e schemes should in f u t u r e be i n i t i a t e d by the
P l a n n i n g B o a r d a n d t h e r e a f t e r be s u b m i t t e d for ratification, where
necessary, by the N a t i o n a l J o i n t Advisory Council a n d t h e National
P r o d u c t i o n A d v i s o r y Council for I n d u s t r y .
The C a b i n e t ­
(17) I n v i t e d the L o r d P r e s i d e n t to discuss t h i s suggestion w i t h
the P r e s i d e n t of the B o a r d of T r a d e a n d the Minister of
Labour.
The Lord President
t h o u g h t it i m p o r t a n t t h a t the closest link
should be m a i n t a i n e d between t h e T r e a s u r y a n d the Chief P l a n n i n g
Officer, in order to e n s u r e t h a t the r e q u i r e m e n t s of p l a n n i n g were
t a k e n fully into account in the f o r m u l a t i o n of advice to the Chan­
cellor of the Exchequer on fiscal policy.
The Chancellor of the Exchequer s a i d t h a t he shared the Lord
P r e s i d e n t s views on t h i s p o i n t a n d h a d a l r e a d y taken steps to
improve the liaison between the T r e a s u r y a n d t h e C e n t r a l Economic
P l a n n i n g Staff.
The Lord President
suggested, t h a t the M i n i s t e r of Labour
should reconsider t h e e x i s t i n g a r r a n g e m e n t s for t h e central review
of t h e d i s t r i b u t i o n of m a n - p o w e r .
I n discussion it w a s p o i n t e d o u t t h a t t h i s w a s a function of
the M i n i s t e r i a l M a n - P o w e r Committee, of which the Minister of
L a b o u r w a s now C h a i r m a n .
The Minister
of Labour u n d e r t o o k to consider a n d report to
t h e P r i m e M i n i s t e r w h e t h e r a n y a d j u s t m e n t s were required in the
composition a n d terms of reference of the M a n - P o w e r Committee.
A f t e r discussing p a r a g r a p h 10 of C P . (47) 237, the Cabinet—
(18) I n s t r u c t e d the S e c r e t a r y of the C a b i n e t to consider whether
any f u r t h e r m a c h i n e r y w a s r e q u i r e d to ensure t h a t the
a r r a n g e m e n t s for following u p a n d p r o g r e s s i n g decisions
by M i n i s t e r s were a d e q u a t e to t h e needs of the present
emergency.
The Lord President
s a i d t h a t t h e r e w e r e i n d i c a t i o n s t h a t the
P l a n n i n g B o a r d would have wished to be consulted about some of the
s h o r t - t e r m measures w h i c h the Government were proposing to take
to meet the c u r r e n t economic emergency. H e t h o u g h t i t would be
e x p e d i e n t that, wherever practicable, the P l a n n i n g B o a r d should at
least be informed of i m p o r t a n t measures w h i c h the Government
w e r e proposing to t a k e in economic m a t t e r s . H e recognised that
t h e r e were c e r t a i n types of proposal, e.g., i m p e n d i n g cuts in food
rations, of which it would not be p r a c t i c a b l e to inform the Board
in advance. H e would, however, be g l a d if h e could have a measure
of discretion in deciding on w h a t m a t t e r s t h e B o a r d should be
informed.
The C a b i n e t ­
(19) A u t h o r i s e d the L o r d P r e s i d e n t to keep the P l a n n i n g Board
informed of the measures which t h e Government were
p r o p o s i n g to t a k e to meet the economic emergency, subject
to the need for m a i n t a i n i n g special secrecy on certain of
these proposals (e.g., i m p e n d i n g cuts i n rations) until
public announcements h a d been made.
Standardisa­
tion in
the
Motor
Industry.
T h e Cabinet n e x t discussed a m e m o r a n d u m by t h e M i n i s t e r of
S u p p l y ( C . P . ( 4 7 ) 243) r e g a r d i n g the possibilities of s e c u r i n g g r e a t e r
s t a n d a r d i s a t i o n in the motor i n d u s t r y .
The Minister of Supply said t h a t he proposed t o seek greater
simplification m a i n l y by pressing for increased s t a n d a r d i s a t i o n of
n t p a r t s a n d u r g i n g firms to concentrate on a smaller number
of models. T h e second"of t h e s e objectives h a d been assisted by the
recent revision of motor car t a x a t i o n . T h e decision to abolish the
basic petrol r a t i o n should enable m o r e r a p i d progress t o be m a d e
t o w a r d s both objectives. H e proposed to meet representatives of
the motor i n d u s t r y in the following week in order t o i n f o r m them
of the measures w h i c h he h a d in m i n d . H e would r e p o r t to the
Cabinet later o n the results of t h a t meeting.
The C a b i n e t ­
(20) Took note of t h e measures which the M i n i s t e r of Supply
was p r o p o s i n g to t a k e to secure increased s t a n d a r d i s a t i o n
in t h e motor i n d u s t r y .
Publicity
for
Cab m e t ' s
Decisions.
(Previous
Reference:
C M . (47) 71st
Conclusions,
Minute
1.)
T h e Cabinet discussed the a r r a n g e m e n t s to be m a d e for
a n n o u n c i n g the decisions recorded above. I t was agreed t h a t these
decisions should be embodied in a general announcement to be
issued from No. 10, D o w n i n g Street, on 27th or 28th A u g u s t .
M i n i s t e r s d e p a r t m e n t a l l y concerned would be informed in advance of
the terms of t h i s announcement a n d would be responsible for giving,
t h r o u g h their P u b l i c R e l a t i o n s Branches, any s u p p l e m e n t a r y
i n f o r m a t i o n or g u i d a n c e required by t h e P r e s s or the public on
m a t t e r s affecting t h e i r own D e p a r t m e n t s .
The C a b i n e t —
.
! ' '
'
(21) I n v i t e d the L o r d P r e s i d e n t , in consultation w i t h the P r i m e
M i n i s t e r a n d M i n i s t e r s d e p a r t m e n t a l l y concerned, to
a r r a n g e for t h e p r e p a r a t i o n of a general announcement
of t h e decisions recorded above; a n d to consider whether
it w a s desirable t h a t a P r e s s Conference should be held
w h e n this announcement was made.
Cabinet Office, S.W. 1,
25th August, 1947.