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THIS 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 MAJESTY'8 G O V E R N M E N T
Printed
for the Cabinet.
May
1956
Copy N o .
SECRET
C M .
(56)
32nd Conclusions
CABINET
CONCLUSIONS
of a Meeting of the Cabinet held at 10 Downing
on Thursday,
3rd May, 1956, at 11 a.m.
Street,
S.W , 1,
t
Present: T h e R i g h t H o n . Sir A N T H O N Y
T h e M o s t H o n . t h e M A R Q U E S S OF
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 . HAROLD MACMILLAN,
M . P . , C h a n c e l l o r of t h e E x c h e q u e r .
T h e Right H o n . GWILYM LLOYDG E O R G E , M . P . , S e c r e t a r y of S t a t e for
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.
The Right H o n . ALAN LENNOX-BOYD,
M . P . , S e c r e t a r y of S t a t e for t h e
Colonies.
T h e Right H o n . DUNCAN SANDYS,
M . P . , M i n i s t e r of H o u s i n g a n d L o c a l
Government.
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 . , M i n i s t e r of E d u c a t i o n .
T h e R i g h t H o n . t h e E A R L OF S E L K I R K ,
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 .
EDEN,
M.P., Prime Minister. T h e Right H o n . R. A. BUTLER,
M.P.,
L o r d Privy Seal.
T h e Right H o n . the VISCOUNT KILMUIR,
Lord Chancellor.
T h e R i g h t H o n . t h e E A R L OF H O M E ,
S e c r e t a r y of S t a t e for C o m m o n w e a l t h
Relations.
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 .
Q.C., M . P . , M i n i s t e r of D e f e n c e .
T h e R i g h t H o n . PETER THORNEYCROFT,
M . P . , P r e s i d e n t of t h e B o a r d of T r a d e
(Items
1-3).
The
Right
Hon.
IAIN M A C L E O D ,
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.
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 :
T h e Right H o n . R. H. TURTON,
M.P.,
M i n i s t e r of H e a l t h (Item 5).
T h e M o s t H o n . t h e M A R Q U E S S OF
R E A D I N G , Q . C . , M i n i s t e r of State for
F o r e i g n Affairs.
The Right H o n . EDWARD HEATH, M.P.,
Parliamentary Secretary, Treasury.
T h e Right H o n . A U B R E Y JONES, M.P.,
M i n i s t e r of F u e l a n d P o w e r (Item 7).
The
Right
Hon.
Sir
REGINALD
MANNINGHAM-BULLER,
Q.C.,
M.P.,
A t t o r n e y - G e n e r a l (Items
1-3).
Mr. G. R. H . NUGENT, M.P., Joint
P a r l i a m e n t a r y S e c r e t a r y , M i n i s t r y of
Agriculture,
Fisheries
and
Food
(Item 7).
CONTENTS
Minute
No.
1
Subject
Nationalised Industries
Parliamentary
Control.
2
Parliament
3
R e s t r i c t i v e T r a d e P r a c t i c e s Bill
C r o w n Privilege.
4
Jordan
5
C a n c e r of t h e L u n g
6
Parliament
R e m u n e r a t i o n of M e m b e r s .
7
C o a l Prices
8
C o m m o n w e a l t h M e m b e r s h i p ...
G o l d Coast.
9
Tangier
1. The Lord Privy Seal said t h a t a C o m m i t t e e of M i n i s t e r s
u n d e r his C h a i r m a n s h i p h a d c o n s i d e r e d p o s s i b l e m e a n s of e n a b l i n g
P a r l i a m e n t t o exercise a f u r t h e r m e a s u r e of c o n t r o l over t h e c o n d u c t
of t h e n a t i o n a l i s e d i n d u s t r i e s . O n b a l a n c e t h e y f a v o u r e d a s c h e m e
b y w h i c h t h e existing Select C o m m i t t e e of t h e H o u s e of C o m m o n s
w o u l d b e r e c o n s t i t u t e d a s a smaller b o d y of eleven m e m b e r s w i t h
relatively n a r r o w t e r m s of reference e m p o w e r i n g t h e m t o s t u d y t h e
a n n u a l r e p o r t s a n d a c c o u n t s of t h e B o a r d s of n a t i o n a l i s e d i n d u s t r i e s
d t o call for p e r s o n s , p a p e r s a n d r e c o r d s .
They would not be
c o n c e r n e d w i t h t h e f u t u r e policy of t h e B o a r d s , a n d t h e a c c o u n t a b i l i t y
of M i n i s t e r s t o P a r l i a m e n t w o u l d n o t t h e r e f o r e b e p r e j u d i c e d . T h e s e
p r o p o s a l s w e r e a c c e p t a b l e t o t h e C h a i r m a n of t h e p r e s e n t Select
C o m m i t t e e . I n view of t h e c o n c e r n e x p r e s s e d b y G o v e r n m e n t
s u p p o r t e r s it w a s d e s i r a b l e t h a t t h e p r o p o s e d a r r a n g e m e n t s s h o u l d
b e a n n o u n c e d e a r l y in t h e following w e e k , b e f o r e t h e d e b a t e o n t h e
S e c o n d R e a d i n g of t h e C o a l I n d u s t r y Bill.
Nationalised
industries.
Parliamentary
Control.
(Previous
Reference:
C M . (55) 19th
Conclusions,
M i n u t e 3.) '
a
n
The Cabinet—
I n v i t e d t h e L o r d P r i v y Seal t o s u b m i t a m e m o r a n d u m , for
c o n s i d e r a t i o n a t their n e x t m e e t i n g , o u t l i n i n g his p r o p o s a l s
for. i n c r e a s e d P a r l i a m e n t a r y c o n t r o l over t h e c o n d u c t of t h e
nationalised industries.
Parliament.
2. T h e C a b i n e t w e r e i n f o r m e d of t h e b u s i n e s s t o b e t a k e n i n
t h e H o u s e of C o m m o n s in t h e following w e e k .
T h e S e c o n d R e a d i n g of t h e F i n a n c e Bill w o u l d b e t a k e n o n
9 t h M a y . It w a s h o p e d t h a t t h e C o m m i t t e e S t a g e of t h e R e s t r i c t i v e
T r a d e P r a c t i c e s Bill w o u l d b e c o n c l u d e d d u r i n g t h e w e e k .
T h e F a m i l y A l l o w a n c e s Bill s h o u l d b e i n t r o d u c e d b e f o r e t h e
W h i t s u n recess, o n a d a t e t o b e settled i n c o n s u l t a t i o n b e t w e e n t h e
L o r d P r i v y Seal a n d t h e C h a n c e l l o r of t h e E x c h e q u e r .
3. The Lord Chancellor
said t h a t M r . J. E . S. S i m o n , M . P . ,
h a d t a b l e d a n a m e n d m e n t t o the R e s t r i c t i v e T r a d e P r a c t i c e s Bill
w h i c h w o u l d h a v e t h e effect t h a t t h e q u e s t i o n of C r o w n privilege in
r e s p e c t of d o c u m e n t a r y or o r a l e v i d e n c e in p r o c e e d i n g s before t h e
Reference:
Restrictive Practices C o u r t would be determined, unless national
C M . (56) 26th s e c u r i t y w a s involved, b y t h e C o u r t a n d n o t b y t h e r e s p o n s i b l e
Conclusions,
M i n i s t e r . A C o m m i t t e e of Officials u n d e r t h e T r e a s u r y Solicitor
M i n u t e 4.)
h a d b e e n r e v i e w i n g t h e q u e s t i o n of C r o w n p r i v i l e g e a n d their r e p o r t
C r o w n Privilege.
p o w ready. Mr. Simon h a d been informed that the G o v e r n m e n t
w e r e e x a m i n i n g t h e m a t t e r a n d , while h e h a d n o t b e e n p r e p a r e d t o
w i t h d r a w his a m e n d m e n t , h e h a d a g r e e d t o defer it u n t i l t h e R e p o r t
S t a g e of t h e Bill. I t w o u l d b e n e c e s s a r y , t h e r e f o r e , for t h e
G o v e r n m e n t to m a k e a s t a t e m e n t o n this m a t t e r b e f o r e t h e R e p o r t
S t a g e w a s r e a c h e d a n d t h e c o n c l u s i o n s of t h e Official C o m m i t t e e
w o u l d need to be studied urgently.
Restrictive
Trade
P r a c t i c e s Bill,
(Previous
w
a
s
The Cabinet—
Invited the Prime Minister to appoint a Cabinet Committee
t o c o n s i d e r t h i s r e p o r t o n C r o w n privilege a n d t o s u b m i t
t h e i r r e c o m m e n d a t i o n s to t h e C a b i n e t .
Jordan.
(Previous
Reference :
C M . (56) 2 5 t h
Conclusions,
M i n u t e 2.)
4. 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 b y t h e
F o r e i g n S e c r e t a r y ( C P . (56) 106) r e p o r t i n g t h a t t h e J o r d a n G o v e r n m e n t
h a d a s k e d for w r i t t e n a s s u r a n c e s of t h e i n t e n 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 t o give aid t o J o r d a n in t h e e v e n t of a n act of
a g g r e s s i o n by Israel. T h e C a b i n e f s a u t h o r i t y w a s s o u g h t to give t o
t h e J o r d a n G o v e r n m e n t t h e w r i t t e n a s s u r a n c e s set o u t i n t h e A n n e x
to C P . (56) 106. T h e s e defined t h e a c t i o n w h i c h 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 be r e a d y t o t a k e in c e r t a i n c o n t i n g e n c i e s w h i c h
m i g h t t h r e a t e n t h e security of J o r d a n .
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 p r o p o s a l h a d t h e s u p p o r t
of t h e Chiefs of Staff a n d w a s in a c c o r d w i t h p l a n s for possible
m i l i t a r y a c t i o n in J o r d a n w h i c h h a d r e c e n t l y b e e n a p p r o v e d by t h e
D e f e n c e C o m m i t t e e . If t h e C a b i n e t a g r e e d t h a t a c o m m u n i c a t i o n in
t h e s e t e r m s m i g h t be m a d e t o t h e J o r d a n G o v e r n m e n t , t h e F o r e i g n
S e c r e t a r y w o u l d d e t e r m i n e t h e m o s t s u i t a b l e t i m e for m a k i n g it. It
m i g h t b e a p p r o p r i a t e t h a t it s h o u l d b e d e l i v e r e d d u r i n g , or
i m m e d i a t e l y after, the f o r t h c o m i n g m e e t i n g of t h e A n g l o - J o r d a n
Joint Defence Board.
The Cabinet—
Authorised the Foreign Secretary to communicate to the
J o r d a n G o v e r n m e n t , a t his discretion, t h e w r i t t e n a s s u r a n c e s
set o u t in the A n n e x t o C P . (56) 106.
Cancer of
the L u n g .
(Previous
Reference:
C M . (56) 30th
Conclusions,
M i n u t e 7.)
5. T h e C a b i n e t h a d b e f o r e t h e m a m e m o r a n d u m by the L o r d
P r i v y Seal ( C P . (56) 111) r e p o r t i n g t h e c o n c l u s i o n s r e a c h e d b y t h e
C o m m i t t e e of M i n i s t e r s w h i c h h a d b e e n a s k e d b y t h e C a b i n e t t o
consider w h e t h e r t h e G o v e r n m e n t s h o u l d n o w t a k e a definite line o n
the r e l a t i o n b e t w e e n s m o k i n g a n d c a n c e r of t h e l u n g .
T h e C o m m i t t e e r e c o m m e n d e d t h a t t h e G o v e r n m e n t s role in this
m a t t e r s h o u l d b e t o e n s u r e t h a t all r e l e v a n t i n f o r m a t i o n w a s m a d e
available t o t h e p u b l i c . T h e y s h o u l d a v o i d c o m m i t t i n g t h e m s e l v e s t o
a s s u m i n g a n y f u r t h e r r e s p o n s i b i l i t y . T h e M i n i s t e r of H e a l t h w o u l d
b e obliged t o m a k e a s t a t e m e n t in P a r l i a m e n t ; b u t this s h o u l d rest,
w i t h o u t c o m m e n t , o n t h e views of t h e m e d i c a l e x p e r t s a n d s h o u l d
h o l d t h e b a l a n c e evenly b e t w e e n a l a r m i n g p u b l i c
opinion
u n n e c e s s a r i l y a n d dismissing t h e w h o l e q u e s t i o n as u n i m p o r t a n t .
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 g e n e r a l a g r e e m e n t
w i t h these c o n c l u s i o n s a n d w i t h t h e t o n e of the draft s t a t e m e n t
a n n e x e d t o C P . (56) 111. T w o a m e n d m e n t s of t h e draft w e r e ,
however, suggested: ­
(a) I n p a r a g r a p h 2 of t h e d r a f t t h e t o t a l n u m b e r of d e a t h s f r o m
c a n c e r s h o u l d b e given, as well as t h o s e f r o m c a n c e r of t h e lung.
(b) I n p a r a g r a p h 4 of t h e d r a f t it w o u l d b e sufficient t o say t h a t
t h e G o v e r n m e n t w o u l d t a k e s u c h steps as w e r e n e c e s s a r y t o e n s u r e
t h a t t h e p u b l i c w e r e k e p t i n f o r m e d of all r e l e v a n t i n f o r m a t i o n as a n d
w h e n it b e c a m e available.
T h e Cabinet—­
(1) A p p r o v e d the c o n c l u s i o n s set o u t in C P . (56) 111.
(2) A u t h o r i s e d the M i n i s t e r of H e a l t h to m a k e a s t a t e m e n t in
t h e H o u s e of C o m m o n s in t h e t e r m s of t h e draft a n n e x e d
t o C P . (56) 111 subject t o t h e 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) a n d (b) a b o v e .
Parliament.
Remuneration
of M e m b e r s .
(Previous
Reference:
C M . (56) 2 7 t h
Conclusions.
M i n u t e 4.)
6. T h e C a b i n e t h a d before t h e m a n o t e b y t h e C h a n c e l l o r of
t h e E x c h e q u e r ( C P . (56) 108) covering a m e m o r a n d u m w h i c h h a d
b e e n p r e p a r e d as a basis for discussion of t h e p r o j e c t for d e a l i n g
s i m u l t a n e o u s l y w i t h t h e r e m u n e r a t i o n of M e m b e r s of t h e H o u s e of
C o m m o n s , salaries of j u n i o r M i n i s t e r s a n d e x p e n s e allowances for
Peers.
The Lord Privy Seal said t h a t , unless t h e G o v e r n m e n t t o o k a n
early initiative in this m a t t e r , t h e L a b o u r O p p o s i t i o n in t h e H o u s e of
C o m m o n s w o u l d press p u b l i c l y for a n i n c r e a s e in M e m b e r s ' salaries
a n d w o u l d p r o p o s e t h a t this q u e s t i o n s h o u l d be m a d e t h e subject of
an independent enquiry.
T h e G o v e r n m e n t w o u l d b e in s o m e
e m b a r r a s s m e n t if they d e l a y e d m u c h l o n g e r a n increase i n t h e salaries
of j u n i o r M i n i s t e r s , w h i c h w a s l o n g o v e r d u e . T h e r e w a s , t h e r e f o r e ,
m u c h t o b e said for p r o c e e d i n g s i m u l t a n e o u s l y with all t h r e e p r o j e c t s
d u r i n g t h e c u r r e n t s e s s i o n : b y this m e a n s it m i g h t b e possible t o
p r e v e n t t h e m f r o m b e c o m i n g t h e subject of further c o n t r o v e r s y
between the Parties. O n the other hand, he must warn the Cabinet
t h a t this p r o j e c t w o u l d n o t be p o p u l a r w i t h G o v e r n m e n t s u p p o r t e r s ,
e i t h e r in t h e H o u s e of C o m m o n s or in t h e c o u n t r y .
The Prime Minister said t h a t o n m e r i t s t h e r e w e r e g o o d g r o u n d s
for i m p r o v i n g t h e r e m u n e r a t i o n of M e m b e r s a n d j u n i o r M i n i s t e r s
a n d i n t r o d u c i n g e x p e n s e a l l o w a n c e s for P e e r s ; a n d h e w o u l d b e
p r e p a r e d , if n e c e s s a r y , t o d e f e n d s u c h a c t i o n a g a i n s t criticism f r o m
Government supporters. H e was more concerned, however, about
t h e effect w h i c h this a c t i o n m i g h t h a v e o n t h e G o v e r n m e n f s a t t e m p t s
t o s e c u r e a p e r i o d of stability in w a g e s a n d prices. T h e g e n e r a l level
of w a g e s h a d n o w risen b y six p o i n t s , c o m p a r e d w i t h a rise of o n l y
t w o p o i n t s i n t h e cost-of-living i n d e x ; a n d Ministers w o u l d b e o n
s t r o n g g r o u n d i n calling o n e m p l o y e r s a n d w o r k e r s , as t h e y p r o p o s e d
t o d o , t o c o - o p e r a t e w i t h t h e G o v e r n m e n t i n w o r k i n g for a p e r i o d of
stability. I n t h e s t r u g g l e t o c h e c k inflation, a n d p e r h a p s in i n d u s t r i a l
r e l a t i o n s generally, t h e y faced a v e r y critical p e r i o d ; a n d h e f e a r e d
t h a t early a c t i o n t o i m p r o v e t h e salaries of M i n i s t e r s a n d M e m b e r s
of P a r l i a m e n t m i g h t p r e j u d i c e t h e a t t e m p t w h i c h t h e y w e r e a b o u t t o
m a k e t o s e c u r e t h e full c o - o p e r a t i o n of i n d u s t r y in this p e r i o d .
The Chancellor
of the Exchequer
said t h a t he s h a r e d the P r i m e
M i n i s t e r s view. T h e w a g e s s i t u a t i o n w a s certainly critical. G o v e r n ­
m e n t a c t i o n t o i n c r e a s e t h e salaries of M e m b e r s a n d M i n i s t e r s m i g h t
well s t a r t a fresh r o u n d of w a g e c l a i m s . I t c o u l d h a r d l y fail t o
p r e j u d i c e t h e G o v e r n m e n f s a t t e m p t t o p e r s u a d e o t h e r s t o exercise
restraint.
I n discussion it w a s generally r e c o g n i s e d t h a t t h e m o s t u r g e n t
n e e d w a s t o s e c u r e s o m e i m p r o v e m e n t in t h e r e m u n e r a t i o n of j u n i o r
M i n i s t e r s . O n this t h e r e w a s full a g r e e m e n t b e t w e e n the P a r t i e s , a n d
for s o m e t i m e n o w t h e r e h a d b e e n a w i d e s p r e a d u n d e r s t a n d i n g t h a t
e a r l y a c t i o n w o u l d b e t a k e n . F u r t h e r d e l a y w o u l d give rise t o k e e n
d i s a p p o i n t m e n t a n d s o m e h a r d s h i p . T h i s , h o w e v e r , was t h e o n e p a r t
of t h e p r o j e c t t h a t r e q u i r e d l e g i s l a t i o n ; a n d legislation c o u l d n o t b e
i n t r o d u c e d w i t h o u t p r o v o k i n g discussion, a n d possibly c o n t r o v e r s y
between the Parties, on the other two connected questions. M o r e ­
o v e r , f r o m t h e p o i n t of view of r e p e r c u s s i o n s on i n d u s t r i a l w a g e s , it
w a s a n i n c r e a s e in salaries w h i c h w a s m o s t d a n g e r o u s ; a n d it w o u l d
b e possible t o i m p r o v e t h e p o s i t i o n of M e m b e r s a n d P e e r s w i t h o u t
i n c r e a s i n g salaries. T h i s s u g g e s t e d t h a t , if s o m e i m m e d i a t e a c t i o n
w a s n e c e s s a r y , it m i g h t t a k e t h e f o r m of increasing t h e sessional
a l l o w a n c e s for M e m b e r s , i n t r o d u c i n g a s c h e m e of e x p e n s e a l l o w a n c e s
for P e e r s a n d e n a b l i n g j u n i o r M i n i s t e r s t o d r a w t h e w h o l e of t h e
P a r l i a m e n t a r y salary.
It was recognised, however, that s u c h a
s c h e m e w o u l d b e o p e n t o t w o o b j e c t i o n s , viz., that t h e c o n c e s s i o n t o
j u n i o r M i n i s t e r s w o u l d still r e q u i r e legislation a n d t h a t it w o u l d n o t
benefit j u n i o r M i n i s t e r s w h o w e r e P e e r s .
For these and other
r e a s o n s t h e b a l a n c e of o p i n i o n in the C a b i n e t lay against a n y
c o m p r o m i s e p l a n o n t h e s e lines.
I n f u r t h e r d i s c u s s i o n it w a s g e n e r a l l y agreed t h a t in all t h e
c i r c u m s t a n c e s it w o u l d b e p r e f e r a b l e t o p o s t p o n e for t h e t i m e b e i n g
t h e p r o j e c t for i n c r e a s i n g t h e salaries of M e m b e r s a n d j u n i o r
M i n i s t e r s a n d i n t r o d u c i n g a s y s t e m of e x p e n s e a l l o w a n c e s for P e e r s .
The Lord Privy Seal suggested t h a t h e s h o u l d i n f o r m the L a b o u r
O p p o s i t i o n t h a t t h e G o v e r n m e n t h a d r e a c h e d this c o n c l u s i o n , w i t h
regret, o w i n g t o t h e difficulties of t h e e c o n o m i c s i t u a t i o n . O n t h a t
basis t h e O p p o s i t i o n l e a d e r s m i g h t p e r h a p s b e p e r s u a d e d to a c c e p t
it w i t h a g o o d g r a c e , t h o u g h they w o u l d d o u b t l e s s m a k e s o m e p u b l i c
p r o t e s t a n d m i g h t table a m o t i o n p r o p o s i n g s o m e f o r m of
i n d e p e n d e n t e n q u i r y i n t o t h e r e m u n e r a t i o n of M e m b e r s . A t this
stage h e w o u l d like t o reserve his o p i n i o n o n t h e l a t t e r p o i n t : in his
c o n v e r s a t i o n s w i t h O p p o s i t i o n l e a d e r s it w o u l d b e b a d tactics for h i m
to reject t h a t suggestion o u t of h a n d . If, h o w e v e r , t h e m a t t e r c a m e
to b e d e b a t e d in t h e H o u s e , the G o v e r n m e n t w o u l d h a v e t o t a k e a
definite l i n e : it w o u l d b e u n w i s e t o leave t h a t issue t o a free v o t e .
M e a n w h i l e , h e w o u l d like t o m a k e t w o concessions t o t h e O p p o s i t i o n
in r e s p e c t of t h e M e m b e r s ' F u n d . H e p r o p o s e d t h a t t h e r e s h o u l d b e
s o m e E x c h e q u e r c o n t r i b u t i o n to t h e F u n d , a n d t h a t M e m b e r s s h o u l d
b e entitled t o t a x relief in r e s p e c t of their c o n t r i b u t i o n s t o it.
The
Cabinet—
(1) D e c i d e d n o t to p r o c e e d f u r t h e r , for t h e p r e s e n t , w i t h t h e
p r o j e c t for i m p r o v i n g t h e r e m u n e r a t i o n of M e m b e r s of
P a r l i a m e n t , i n c r e a s i n g t h e salaries of j u n i o r M i n i s t e r s a n d
i n t r o d u c i n g a s y s t e m of e x p e n s e a l l o w a n c e s for P e e r s .
(2) A g r e e d in p r i n c i p l e t h a t s o m e E x c h e q u e r c o n t r i b u t i o n s h o u l d
be m a d e to the M e m b e r s ' F u n d , and that M e m b e r s
s h o u l d b e entitled t o tax relief in r e s p e c t of their
c o n t r i b u t i o n s to t h e F u n d .
(3) I n v i t e d t h e C h a n c e l l o r of t h e E x c h e q u e r t o c o n s i d e r w h e t h e r
a n y i m p r o v e m e n t in t h e r e m u n e r a t i o n of j u n i o r M i n i s t e r s ,
w h e t h e r P e e r s o r M e m b e r s of t h e H o u s e of C o m m o n s ,
c o u l d b e secured w i t h o u t legislation b y t a x relief in
r e s p e c t of e x p e n s e s i n c u r r e d in t h e p e r f o r m a n c e of their
duties.
(4) T o o k n o t e t h a t , in t h e light of C o n c l u s i o n s (1) a n d (2) a b o v e ,
t h e L o r d P r i v y Seal w o u l d c o m m u n i c a t e f u r t h e r w i t h t h e
O p p o s i t i o n L e a d e r s in t h e H o u s e of C o m m o n s , a n d
w o u l d r e p o r t t h e result of his discussions t o t h e C a b i n e t .
C o a l Prices.
(Previous
Reference:
C.C. (55) 22nd
Conclusions.
M i n u t e 5.)
7. 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 M i n i s t e r of
F u e l a n d P o w e r ( C P . (56) 103) r e c o m m e n d i n g t h a t t h e p r i c e of coal
s h o u l d b e r a i s e d b y a n a v e r a g e of 65. a t o n .
It was stated in the m e m o r a n d u m that the wage settlement
r e a c h e d in F e b r u a r y w o u l d h a v e t h e effect of i n c r e a s i n g t h e w a g e s
bill b y £40 millions in 1956 and £ 6 0 millions in 1957. T h e r e w a s n o
i m m e d i a t e p r o s p e c t of i n c r e a s e d p r o d u c t i v i t y ; a n d , if t h e price of
coal w e r e n o t i n c r e a s e d t o a b s o r b these a d d i t i o n a l costs, t h e
a c c u m u l a t e d deficit of t h e N a t i o n a l C o a l B o a r d , w h i c h a m o u n t e d to
£37 m i l l i o n s i n 1955, w o u l d rise t o £ 1 0 2 millions b y t h e e n d of 1957.
If this w a s t o b e a v o i d e d a f u r t h e r i n c r e a s e in t h e p r i c e of c o a l w a s
i n e v i t a b l e . T h e i n c r e a s e of 8 p e r cent, w h i c h w a s n o w p r o p o s e d
w o u l d l e a d t o c o n s e q u e n t i a l increases in t h e prices of electricity, gas,
steel, r a i l w a y t r a n s p o r t a n d d o m e s t i c c o a l , a n d e v e n t u a l l y t o a slight
rise in t h e c o s t of living.
I n discussion t h e following p o i n t s w e r e m a d e : —
(a) T h e c a p i t a l i n v e s t m e n t a l r e a d y m a d e in t h e coal i n d u s t r y w a s
n o t yet yielding fruit b e c a u s e m a n y of t h e d e v e l o p m e n t p r o j e c t s h a d
still t o b e c o m p l e t e d .
(b) T h e u n s e t t l e d s i t u a t i o n in t h e M i d d l e E a s t w a s l e a d i n g s o m e
industrialists to adopt a m o r e cautious attitude towards converting
their p l a n t s t o t h e u s e of oil. T h i s t e n d e n c y s h o u l d b e d i s c o u r a g e d .
(c) T h e i n c r e a s e d cost of coal w o u l d lead to p r e s s u r e for a h i g h e r
r a t e of s u b s i d y f r o m t h e o p e r a t o r s of c o a l - b u r n i n g t r a w l e r s . T h i s
w o u l d h a v e t o b e c o n s i d e r e d o n its m e r i t s w h e n t h e t i m e c a m e .
The
CabinetA u t h o r i s e d t h e i n c r e a s e i n t h e price of coal p r o p o s e d in
C P . (56) 103.
Commonwealth
Membership.
G o l d Coast.
(Previous
Reference :
C M . (56) 2 0 t h
Conclusions,
M i n u t e 6.)
8. The Colonial Secretary
said t h a t t h e P r i m e M i n i s t e r of t h e
G o l d C o a s t h a d n o w a c c e p t e d his view t h a t , i n view of t h e differences
w h i c h h a d d e v e l o p e d in t h e G o l d C o a s t o n t h e c o n s t i t u t i o n a l issue,
t h e f u r t h e r s t a g e s of c o n s t i t u t i o n a l a d v a n c e s h o u l d n o t b e b r o u g h t
i n t o o p e r a t i o n u n t i l t h e p e o p l e s of t h e G o l d C o a s t h a d d e m o n s t r a t e d ,
in a g e n e r a l election, t h e i r s u p p o r t for t h e c o n s t i t u t i o n a l p l a n .
D r . N k r u m a h h a d , h o w e v e r , suggested t h a t a n a n n o u n c e m e n t t o this
effect s h o u l d b e m a d e , n o t b y h i m , b u t b y a s p o k e s m a n of t h e
United Kingdom Government.
T h e C o l o n i a l S e c r e t a r y said t h a t ,
f r o m his p o i n t of view, this c o u r s e w a s t o b e p r e f e r r e d . H e t h e r e f o r e
p r o p o s e d to m a k e s u c h a n a n n o u n c e m e n t in t h e H o u s e of C o m m o n s
o n 10th or 11th M a y . I n this a n n o u n c e m e n t h e w o u l d g o o n t o m a k e
it clear t h a t , if D r . N k r u m a h w o n t h e e l e c t i o n o n t h e c o n s t i t u t i o n a l
issue a n d if t h e c o n s t i t u t i o n a l p r o p o s a l s w e r e a c c e p t e d t h e r e a f t e r b y
a r e a s o n a b l e m a j o r i t y of t h e n e w l y - e l e c t e d legislative a s s e m b l y , 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 b e p r e p a r e d t o d e c l a r e a firm
date by which the Gold Coast might expect to attain independence
within the Commonwealth.
I n r e p l y t o q u e s t i o n s , t h e C o l o n i a l S e c r e t a r y said t h a t t h e
G e n e r a l E l e c t i o n i n the G o l d C o a s t w o u l d n o t t a k e p l a c e before t h e
f o r t h c o m i n g M e e t i n g of C o m m o n w e a l t h P r i m e M i n i s t e r s : it w a s
likely t o be h e l d in July. T h e s t a t e m e n t w h i c h h e w a s p r o p o s i n g t o
m a k e reflected a delay, r a t h e r t h a n a n a c c e l e r a t i o n , in t h e p r o g r e s s
of t h e G o l d C o a s t t o w a r d s i n d e p e n d e n c e . T h i s d e l a y w a s d u e in
p a r t t o t h e r e l u c t a n c e of t h e A s h a n t i t r i b e s t o a c c e p t a u n i t a r y f o r m
of c o n s t i t u t i o n . British r u l e h a d , h o w e v e r , i m p o s e d a n artificial u n i t y
o n t h e G o l d C o a s t for m a n y y e a r s p a s t a n d h e did n o t t h i n k it w o u l d
h a v e b e e n p r a c t i c a b l e at this s t a g e to o p e r a t e a federal system.
The
Cabinet—
T o o k n o t e w i t h a p p r o v a l of t h e a n n o u n c e m e n t w h i c h the
C o l o n i a l S e c r e t a r y p r o p o s e d to m a k e i n t h e H o u s e of
C o m m o n s o n 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 in t h e G o l d C o a s t .
Tangier.
(Previous
Reference :
C.c. ( 5 2 ) 3 5 t h
Conclusions,
Minute 3 . ) '
9. The Prime Minister
said t h a t t h e r e w e r e clear i n d i c a t i o n s
t h a t t h e i n d e p e n d e n t G o v e r n m e n t of M o r o c c o w o u l d s h o r t l y d e m a n d
t h e t e r m i n a t i o n of t h e i n t e r n a t i o n a l r e g i m e in T a n g i e r . O u r interests
w o u l d b e satisfied if a free p o r t w e r e e s t a b l i s h e d at T a n g i e r , w i t h its
o w n police u n d e r a E u r o p e a n officer. T h e F o r e i g n Office, T r e a s u r y ,
B o a r d of T r a d e a n d Chiefs of Staff w e r e all a g r e e d t h a t , if this c o u l d
b e s e c u r e d , t h e r e w o u l d be n o special a d v a n t a g e to t h e U n i t e d
K i n g d o m in p r e s e r v i n g t h e i n t e r n a t i o n a l s t a t u s of T a n g i e r . It w a s
therefore proposed that H e r Majesty's Consul-General at Tangier
s h o u l d at o n c e b e i n s t r u c t e d t o t a k e this line if a M o r o c c a n d e m a n d
for t h e r e t u r n of T a n g i e r c a m e b e f o r e t h e C o m m i t t e e of C o n t r o l .
T h e G o v e r n m e n t s of t h e i n t e r e s t e d P o w e r s w o u l d at t h e s a m e t i m e
b e i n f o r m e d t h a t w e i n t e n d e d t o t a k e t h i s line i n t h e C o m m i t t e e . T h e
M o r o c c a n G o v e r n m e n t w o u l d also b e t o l d of o u r a t t i t u d e .
The Cabinet—
A p p r o v e d the
Minister; and
i n s t r u c t i o n s in
at T a n g i e r a n d
be informed.
Cabinet
Office,
3rd May,
S.W. I.
1956.
proposals put before t h e m by the Prime
invited h i m t o a u t h o r i s e t h e d e s p a t c h of
this sense t o H e r M a j e s t y ' s C o n s u l - G e n e r a l
t o a r r a n g e for t h e i n t e r e s t e d G o v e r n m e n t s t o