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SECRET
; 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*S
GOVERNMENT
COPY
23rd
NO
80
dons CABINET
C O N C L U S I O N S of a M e e t i n g of the
Cabinet
h e l d a t 10 D o w n i n g S t r e e t o n WEDNESDAY
2 8 N O V E M B E R 1979
a t 11. 00 a m
P R E S E N T The Rt Hon Margaret Thatcher Prime Hon W i l l i a m W h i t e l a w
MP
ry of S t a t e f o r t h e H o m e
M P
Minister The Rt Hon L o r d Hail sham
Department
Lord
Chancellor
Hon L o r d C a r r i n g t o n
T h e Rt Hon Sir Geoffrey
ry of S t a t e f o r F o r e i g n a n d
C h a n c e l l o r of the
Howe Q C
MP
Exchequer
nwealth A f f a i r s Hon S i r K e i t h J o s e p h ry of S t a t e f o r Hon L o r d
M P
T h e Rt Hon F r a n c i s P y m
Industry
S e c r e t a r y of State for
Soames
resident o f t h e
The Rt Hon James P r i o r
Council
Hon P e t e r W a l k e r * of A g r i c u l t u r e ,
M P
MP
The Rt Hon Nicholas Edwards S e c r e t a r y of State for
M P
*y of S t a t e f o r N o r t h e r n
MP
T h e Rt Hon David Howell S e c r e t a r y of State for
MP
T h e Rt Hon John Biffen
*y of S t a t e f o r E d u c a t i o n a n d
Chief Secretary,
The Rt Hon Angus Paymaster
MP
MP
S e c r e t a r y of State for S o c i a l S e r v i c e s
Lancaster
Hon M a r k C a r l i s l e Q C
M P
Wales
The Rt Hon Patrick Jenkin
Ireland
Hon N o r m a n S t J o h n - S t e v a s Uor of t h e D u c h y o f
Employment
S e c r e t a r y of State for the E n v i r o n m e n t
Scotland
Hon H u m p h r e y A t k i n s
MP
The Rt Hon Michael Heseltine
F i s h e r i e s and F o o d
Hon G e o r g e Y o u n g e r ry of S t a t e f o r
S e c r e t a r y of State for
MP
Defence
Maude
MP
Energy MP
Treasury
M P
General
SECRET
290
SECRET
THE
FOLLOWING
I Hon N o r m a n F o w l e r e
WERE ALSO
PRESENT
The Rt Hon Michael Jopling M P
MP
Parliamentary
r of T r a n s p o r t
Secretary,
Treasury
SECRETARIAT Sir Robert
Armstrong
M r M D M Franklin
(Items 2 and
Mr P Le
Cheminant
( I t e m 4)
Mr P J
Harrop
(Item
Mr R L
Wade-Gery
Mr D E R
Faulkner
1)
(Items 2 and (Item
3)
3)
1)
C O N T E N T S Page
Subject PARLIAMENTARY
1
AFFAIRS
FOREIGN AFFAIRS 2
Rhodesia
2
Iran COMMUNITY
AFFAIRS
European Council Dublin 29-30 European INDUSTRIAL
November
3 4
Parliament
5
AFFAIRS
ii
SECRET
CONFIDENTIAL
IAMENTARY
1.
T h e C a b i n e t w e r e p r o v i s i o n a l l y i n f o r m e d o f the
business
to b e t a k e n i n t h e H o u s e o f C o m m o n s d u r i n g t h e f o l l o w i n g It w a s
their Supply THE
for
Day.
C H A N C E L L O R O F T H E D U C H Y O F L A N C A S T E R said that
business
i n the H o u s e o f C o m m o n s w o u l d be v e r y c o n g e s t e d i n the
period before C h r i s t m a s .
H e i n t e n d e d to g i v e f i r s t p r i o r i t y to the
p a s s a g e of the Z i m b a b w e B i l l , its
week.
n o t e d that the O p p o s i t i o n h a d n o t y e t c h o s e n the s u b j e c t
w h i c h should be t a k e n t h r o u g h a l l
s t a g e s i n b o t h H o u s e s b e f o r e the r e c e s s ,
of the P a r l i a m e n t a r y
d i f f i c u l t i e s w h i c h h a d a r i s e n o n the
Southern Rhodesia B i l l , Commons
T o avoid a repetition
it was
i m p o r t a n t that the H o u s e
earlier of
s h o u l d be g i v e n a s m u c h n o t i c e as p o s s i b l e .
He
a l s o a i m to p r o v i d e t i m e f o r t h e S e c o n d R e a d i n g o f t h e
B i l l a n d f o r a l l o c a t i o n o f t i m e ( g u i l l o t i n e ) m o t i o n s o n the B i l l and,
if necessary,
o n t h e E d u c a t i o n ( N o . 2) B i l l .
for later consideration whether
would
Employment Industry
It w o u l d
these m o t i o n s c o u l d be
be
combined,
but i n p r i n c i p l e i t w o u l d be b e t t e r to take t h e m s e p a r a t e l y
in
a c c o r d a n c e w i t h the r e c o m m e n d a t i o n i n the F i r s t R e p o r t f r o m Select Committee nn P r o c e d u r e , possible
Session 1977-78.
It m i g h t
to f i n d t i m e f o r t h e S e c o n d R e a d i n g o f a n o t h e r B i l l ,
no a s s u r a n c e
c o u l d be g i v e n at t h i s
In d i s c u s s i o n ,
i t w a s p o i n t e d out that a d i f f i c u l t s i t u a t i o n c o u l d
T h e Health S e r v i c e s B o a r d (HSB)
o b l i g a t i o n to m a k e r e c o m m e n d a t i o n s S o c i a l S e r v i c e s was
f o r the w i t h d r a w a l
o b l i g e d to i m p l e m e n t t h e m .
recommendations
of p a y b e d s
would be
An Lord
Wigoder,
submitted provided
a r i s k that a r e p o r t m i g h t be
that
If i t d i d
s u b m i t t e d i n the
New
o n w h i c h the S e c r e t a r y of State w o u l d b e o b l i g e d to a c t .
a c t i o n w o u l d be c o n t r a r y to the p o l i c y of the G o v e r n m e n t , cause
for
understanding
the B i l l h a d r e c e i v e d i t s S e c o n d R e a d i n g b y C h r i s t m a s . there was
statutory
a n d the S e c r e t a r y o f State
h a d b e e n r e a c h e d w i t h the C h a i r m a n of the H S B , that no f u r t h e r
arise
delayed.
w e r e at p r e s e n t u n d e r a
in National Health Service hospitals,
Year
but
stage.
i f the S e c o n d R e a d i n g of the H e a l t h S e r v i c e s B i l l w e r e
not,
the be
Such
and
s e r i o u s c o n c e r n a m o n g t h e i r s u p p o r t e r s i n the H o u s e
would
of
C o m m o n s a n d i n the c o n s t i t u e n c i e s . In f u r t h e r d i s c u s s i o n i t w a s available
noted that t i m e was
u n l i k e l y to b e
f o r the S e c o n d R e a d i n g o f the T e n a n t s ' R i g h t s E t c .
(Scotland) B i l l ,
w i t h the r e s u l t that t h i s a n d s u c c e e d i n g S c o t t i s h
B i l l s would be delayed i n S c o t t i s h Standing C o m m i t t e e .
Nor
t h e r e l i k e l y to b e t i m e f o r a d e b a t e o n t h e R a t e S u p p o r t G r a n t which w e r e n o r m a l l y taken before C h r i s t m a s and on which w o u l d l e a d to u n c e r t a i n t y o v e r p a y m e n t s of THE
PRIME
MINISTER,
be
orders,
delay
grant.
s u m m i n g up the d i s c u s s i o n ,
Cabinet r e c o g n i s e d that b u s i n e s s
was
s a i d that the
i n the H o u s e of C o m m o n s
s e r i o u s l y c o n g e s t e d i n the p e r i o d b e f o r e the r e c e s s
would
a n d that
o n l y the Z i m b a b w e a n d E m p l o y m e n t B i l l s c o u l d be a s s u r e d o f t i m e for Second Readings before C h r i s t m a s .
CONFIDENTIAL
If t i m e c o u l d b e f o u n d
for
1
292
CONFIDENTIAL
a t h i r d B i l l the H e a l t h S e r v i c e s B i l l w o u l d h a v e a s t r o n g c l a i m ; otherwise
t h i s a n d the o t h e r i t e m s of b u s i n e s s m e n t i o n e d i n
d i s c u s s i o n would be taken as soon as p o s s i b l e returned.
The recess
should not, h o w e v e r ,
after the
House
be c u r t a i l e d and it
w o u l d be the i n t e n t i o n that P a r l i a m e n t s h o u l d r e a s s e m b l e
on
M o n d a y 14 J a n u a r y . The Cabinet T o o k note,
-
with approval,
of the P r i m e
s u m m i n g up of t h e i r d i s c u s s i o n ,
Minister's
and i n v i t e d the
C h a n c e l l o r o f t h e D u c h y o f L a n c a s t e r to b e
guided
accordingly.
2.
T H E FOREIGN AND
COMMONWEALTH SECRETARY
said
that the S a l i s b u r y d e l e g a t i o n h a d n o w a c c e p t e d the B r i t i s h p r o p o s a l s for a ceasefire.
T h e P a t r i o t i c F r o n t h a d not done
p o s i t i o n w o u l d h a v e to be m a d e
so,
but their
clear before 1 December,
S a l i s b u r y d e l e g a t i o n w e r e d e t e r m i n e d to r e t u r n h o m e .
1
w h e n the There
were
s e r i o u s d i f f i c u l t i e s o v e r the r e q u i r e m e n t f o r the P a t r i o t i c F r o n t to
S
assemble
nee: 22nd sions, 2
a l l their f o r c e s (whose true n u m b e r s
exaggerated) i n certain designated areas; be a d o p t e d b y the S a l i s b u r y f o r c e s , was
they had publicly
a n d o v e r the p o s t u r e
whose reasonable
that at l e a s t s o m e of the F r o n t ' s f o r c e s w o u l d n o t i n f a c t
w i t h the r e q u i r e m e n t a n d w o u l d n e e d to be c o n t a i n e d . b e n e c e s s a r y to g o a h e a d w i t h o u t t h e F r o n t , i n that c a s e be l e f t stage.
It w a s
a l t h o u g h the d o o r
a l s o p o s s i b l e that M r N k o m o c o u l d be b r o u g h t without M r Mugabe.
Patriotic F r o n t agreement,
: st
sions,
no
a n d to B r i t i s h i n t e r e s t s t h e r e Save i n N i g e r i a ,
however,
of B r i t a i n ' s e f f o r t s to r e a c h a n e g o t i a t e d
and
the a n d the
settlement
was
recognised.
THE FOREIGN AND COMMONWEALTH SECRETARY
s a i d that the
situation in Iran r e m a i n e d dangerous
T h e s i z e o f the
and u n c e r t a i n .
British E m b a s s y had been much reduced, ;
to
If t h e r e w a s
r e a c t i o n e l s e w h e r e i n A f r i c a w a s l i k e l y to b e m o r e m u t e d , seriousness
would
t h e r e w o u l d b e a s e r i o u s t h r e a t to t h e
in Zambia,
perhaps elsewhere in Africa,
widely
comply
It m i g h t w e l l
o p e n f o r t h e m to a c c e p t t h e s e t t l e m e n t a t a l a t e r
a c c e p t the s e t t l e m e n t n o w , British community
to
assumption
but i t c o u l d not be
withdrawn
a l t o g e t h e r without l e t t i n g d o w n both the A m e r i c a n s ,
to w h o m i t
giving vital help,
o f the B r i t i s h
and the s e v e r a l h u n d r e d m e m b e r s
c o m m u n i t y who w e r e s t i l l u n w i l l i n g to l e a v e the c o u n t r y . s u p p l i e s o f I r a n i a n o i l h a d n o t so f a r b e e n
was
British
affected.
2
CONFIDENTIAL
293
CONFIDENTIAL
THE HOME
SECRETARY
s a i d that the l a r g e n u m b e r * f
currently entering B r i t a i n was A
g i v i n g r i s e to s e r i o u s
v i s a r e q u i r e m e n t should be i m p o s e d as
done without unacceptable Meanwhile
e v e r y effort
London Airport,
s o o n a s t h i s c o u l d be
r i s k to B r i t i s h p e r s o n n e l i n I r a n .
w o u l d be m a d e
to c o n t r o l t h e i n f l o w
w h e r e e x t r a staff was
The Cabinet
Iranians
concern.
l i k e l y to b e
at
required.
-
T o o k note.
UNITY IRS
3.
T H E PRIME MINISTER
Commonwealth Secretary,
s a i d that, w i t h the F o r e i g n and
she w o u l d be a t t e n d i n g the m e e t i n g of
the E u r o p e a n C o u n c i l i n D u b l i n o n 2 9 - 3 0 N o v e m b e r .
The
main
i s s u e w o u l d be the U n i t e d K i n g d o m ' s b u d g e t a r y p r o b l e m .
ean ll D u b l i n November
Our
C o m m u n i t y p a r t n e r s h a d n o t yet a c c e p t e d the s e r i o u s n e s s of o u r intentions.
In p u b l i c e x p e n d i t u r e t e r m s i t w a s
a s i t u a t i o n i n w h i c h the U n i t e d K i n g d o m , members
o f the C o m m u n i t y , w o u l d b e
i m p o s s i b l e to j u s t i f y
a s one of the l e s s
prosperous
subsidising other and m o s t l y
r i c h e r c o u n t r i e s of the E u r o p e a n E c o n o m i c C o m m u n i t y ( E E C ) , an extent which greatly exceeded our o v e r s e a s countries.
If,
as
a i d to
s e e m e d l i k e l y , we w e r e n o t o f f e r e d
i n o u r n e t c o n t r i b u t i o n w h i c h we c o u l d a c c e p t , h a v e to c o n t i n u e .
a reduction
the a r g u m e n t
would
W e h a d n o w i s h to d i s r u p t the C o m m u n i t y ,
no i n t e n t i o n of c o m i n g out of i t , but o u r p a r t n e r s w o u l d have realise
that if,
to
developing
after reflection,
and to
t h e y w e r e n o t w i l l i n g to c o r r e c t the
b a s i c i n e q u i t y , the i n e v i t a b l e i m p a c t o n the f u t u r e d e v e l o p m e n t the C o m m u n i t y w o u l d be t h e i r f a u l t r a t h e r t h a n o u r s .
She
of
was
a p p r o a c h i n g the m e e t i n g w i t h a d e t e r m i n a t i o n to settle the q u e s t i o n and d i d not w i s h ,
at t h i s stage,
to r e v e a l w h a t a c t i o n we m i g h t t a k e
i f the n e g o t i a t i o n s w e r e to f a i l . C o m m u n i t y Budget was
We had some latitude,
s i n c e the
o n a c a l e n d a r y e a r b a s i s and we w e r e l o o k i n g
for relief on public expenditure during our financial year
1980-81,
In d i s c u s s i o n i t w a s a r g u e d t h a t i t w a s
at that o u r
Community partners needs at D u b l i n :
n o t to be w o n d e r e d
s e e m e d u n l i k e l y to c o m e f a r e n o u g h to m e e t
the C o m m u n i t y m o v e d s l o w l y o n s u c h m a t t e r s ,
we h a d c o m e a l o n g way
s i n c e the p r e v i o u s E u r o p e a n C o u n c i l i n
Strasbourg i n June when other m e m b e r a c c e p t e v e n that we h a d a c a s e . a r e d u c t i o n of £ 3 0 0 - £ 4 0 0 not enough,
and we
million,
s t a t e s h a d n o t b e e n r e a d y to
W e w e r e n o w l i k e l y to b e and p o s s i b l y m o r e .
offered
That
s h o u l d j u s t h a v e to k e e p p l u g g i n g a w a y f o r
T h e C o m m o n A g r i c u l t u r a l P o l i c y was i m p r o v e m e n t w a s b o u n d to f o l l o w .
i n such a m e s s
that
indefensible,
was longer.
some
It w o u l d b e i m p o r t a n t n o t t o
p l a y t h e h a n d i n s u c h a w a y a s to m a k e t h e C o n s e r v a t i v e P a r t y to b e a n t i - E u r o p e a n .
our and
appear
O n the o t h e r h a n d the p r e s e n t s i t u a t i o n w a s
and i t was
v i t a l n o t o n l y f o r the E E C but i n d o m e s t i c
CONFIDENTIAL
294
CONFIDENTIAL
p o l i t i c a l t e r m s f o r t h e G o v e r n m e n t to s t a n d f i r m o n t h e Because
Budget.
v i t a l p o l i t i c a l a n d e c o n o m i c i n t e r e s t s of s o m e of the
C o m m u n i t y p a r t n e r s w e r e at stake i n the C o m m o n A g r i c u l t u r a l Policy (CAP),
i t would be e v e n m o r e difficult to s e c u r e
adequate
c h a n g e s i n the C A P t h a n to get r e l i e f 6 n the U n i t e d K i n g d o m ' s n e t budgetary contribution.
B u t the C o m m i s s i o n ' s l a t e s t
for reducing agricultural surpluses would hit our own disproportionately,
a n d w o u l d h a v e to b e
O n the p u b l i c p r e s e n t a t i o n i t w a s B u d g e t p r o b l e m should be
proposals farmers
resisted.
s u g g e s t e d that the two p a r t s of o u r
distinguished^
We
could
h o p e to s e c u r e c h a n g e s w h i c h w o u l d d e a l w i t h o u r
reasonably
excessive
c o n t r i b u t i o n although i t w o u l d no doubt be c o n d i t i o n a l o n a n o v e r a l l settlement,
we
s h o u l d b e a b l e to w e l c o m e t h i s a s a f i r s t s t e p .
s h o u l d t h e n be l e f t d e a l i n g o n l y w i t h the a d m i t t e d l y l a r g e r of our inadequate THE
We
problem
r e c e i p t s f r o m the C o m m u n i t y B u d g e t .
PRIME MINISTER,
s u m m i n g up the d i s c u s s i o n ,
C a b i n e t a g r e e d that, u n l e s s we w e r e o f f e r e d to w h a t w e h a d a s k e d f o r ,
s a i d the
something very
she s h o u l d not settle i n D u b l i n ,
close
We
had
a s t r o n g c a s e b a s e d o n the m o r a l c o m m i t m e n t w h i c h the C o m m u n i t y h a d m a d e i n 1970 that i f a n u n a c c e p t a b l e
situation of this kind
o c c u r r e d the v e r y s u r v i v a l o f the C o m m u n i t y w o u l d d e m a n d that the institutions should find equitable
solutions.
T h e r e c o u l d be no
t h a t the C o m m u n i t y w o u l d f a c e a c r i s i s , w h i c h o u r p a r t n e r s w e l c o m e no m o r e than we
should,
i f this p r o b l e m w e r e not
doubt
would speedily
resolved. The Cabinet 1,
T o o k note, with approval,
of
Prime
Minieter's
s u m m i n g up of t h e i r d i s c u s s i o n .
Pean a m
ent
T H E CHANCELLOR OF T H E EXCHEQUER
s a i d that,
* f the G e r m a n G o v e r n m e n t a n d i n o r d e r n o t to c r e a t e
o n the a d v i c e difficulties
w i t h the F r e n c h i n a d v a n c e o f the D u b l i n m e e t i n g ,
we h a d r e c e n t l y
voted i n the C o u n c i l of M i n i s t e r s (Budget) a g a i n s t
amendments
p r o p o s e d b y the E u r o p e a n P a r l i a m e n t to the 1980 C o m m u n i t y B u d g e t , the e f f e c t o f w h i c h w o u l d h a v e b e e n to r e d u c e p r o v i s i o n f o r t u r e o n m i l k s u r p l u s e s u n d e r the C A P . Kingdom Members
T h i s had upset
of the E u r o p e a n P a r l i a m e n t ( M E P ' s ) w h o h a d b e e n
i n s t r u m e n t a l i n getting the
E u r o p e a n P a r l i a m e n t to a t t a c k the h i g h
c o s t of a g r i c u l t u r a l s u r p l u s e s .
T h e r e a s o n s f o r the
Governments
a c t i o n w o u l d n e e d t o b e c a r e f u l l y e x p l a i n e d to C o n s e r v a t i v e In g e n e r a l ,
it was
MEPs,
i m p o r t a n t f o r the G o v e r n m e n t to k e e p i n c l o s e
t o u c h w i t h i t s s u p p o r t e r s i n the E u r o p e a n The Cabinet 2.
expendi
United
T o o k note. 4
CONFIDENTIAL
Parliament.
CONFIDENTIAL
5TRJAL
4.
T h e C a b i n e t b r i e f l y d i s c u s s e d the c u r r e n t i n d u s t r i a l
IRS
situation.
A m o n g the p o i n t s m a d e
a. (BL)
were:
E v e n t s w e r e now m o v i n g f a v o u r a b l y i n B r i t i s h L e y l a n d f o l l o w i n g the s a c k i n g of M r R o b i n s o n .
The
major
trades unions concerned had pulled back f r o m official strike action,
and a great d e a l of c r e d i t was
d u e to c e r t a i n s e n i o r
u n i o n o f f i c i a l s w h o h a d w o r k e d h a r d to c o n t a i n t h e s i t u a t i o n . T h e C o m p a n y s t i l l f a c e d d i f f i c u l t w a g e n e g o t i a t i o n s a n d the m i l i t a n t s w e r e t r y i n g to p r e s e n t the C o m p a n y ' s a f f a i r s battle b e t w e e n the G o v e r n m e n t a n d the u n i o n s .
as
It w o u l d
a be
i m p c r t a n t f o r G o v e r n m e n t M i n i s t e r s to r e f r a i n f r o m p u b l i c c o m m e n t s a b o u t the C o m p a n y w h i c h m i g h t p l a y i n t o the militants b.
1
hands.
The reverberations
o f the r e s i g n a t i o n o f the B o a r d
the N a t i o n a l E n t e r p r i s e B o a r d ( N E B ) W h i l e the s i t u a t i o n w a s union leaders
of
were dying away.
still sensitive,
the r e a c t i o n of
was not as h o s t i l e as m i g h t h a v e been
A s w i t h B L i t w o u l d b e i m p o r t a n t to a v o i d a c t s o r
trades
expected.
statements
w h i c h m i g h t be m i s c o n s t r u e d a n d i n f l a m e a d e l i c a t e s i t u a t i o n . It m i g h t f o r e x a m p l e b e s e n s i b l e t o d e f e r a n about w o r k e r - d i r e c t o r s c.
It w a s
announcement
i n the P o s t O f f i c e f o r the t i m e
thought l i k e l y that the m i n e w o r k e r s '
result in overwhelming
being.
ballot
would
s u p p o r t f o r the l i n e b e i n g a d o p t e d
the E x e c u t i v e of 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
by
(NUM)
w a g e n e g o t i a t i o n s w i t h the N a t i o n a l C o a l B o a r d ( N C B ) .
in The
S e c r e t a r y of State f o r E n e r g y h a d d i s c u s s e d the s i t u a t i o n w i t h the C h a i r m a n of the N C B o n the p r e v i o u s d a y a n d w o u l d r e p o r t i n g t h e o u t c o m e to t h o s e c o l l e a g u e s m o s t concerned.
be
closely
T h e M i n i s t e r i a l C o m m i t t e e on E c o n o m i c Strategy
w o u l d b e d i s c u s s i n g
the s i t u a t i o n at i t s m e e t i n g o n the
following
Tuesday. d.
T h e s i t u a t i o n at the C h a r i n g C r o s s H o s p i t a l w a s
improved,
a n d s u b s t a n t i a l q u a n t i t i e s of o i l h a d b e e n
to the h o s p i t a l i n the p r e v i o u s 24 h o u r s .
much
delivered
The action taken
a g a i n s t the s t r i k e r s b y the d o c t o r s a n d n u r s e s of the h o s p i t a l had been m o s t effective. reference
was
A p o i n t to be n o t e d f o r
future
that the s t r i k e h a d r e v e a l e d the i m p o r t a n c e
to t h i s h o s p i t a l ,
a n d n o d o u b t to o t h e r c o n s u m e r s ,
of
s p e c i a l i s e d t a n k e r s a b l e t o c a r r y the h e a t e d o i l r e q u i r e d its furnaces.
T h e M i n i s t r y of Defence
by
did not p o s s e s s
t a n k e r s of t h i s t y p e . The Cabinet
-
T o o k note. Cabinet
Office
28 N o v e m b e r
1979
5
CONFIDENTIAL
296
