HIS DOCUMENT IS THEPROPERTYOFHER

---

S E C R E T

HIS 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'S GOVERNMENT

C(81) 2 0 t h

COPY NO

78

one l u s i o n s CABINET

CONCLUSIONS

of a M e e t i n g of the

h e l d a t 10 D o w n i n g S t r e e t THURSDAY

Cabinet

on

21 M A Y 1981

a t 10. 30

am

P R E S E N T The

Rt Hon Margaret Thatcher Prime

he R t H o n W i l l i a m W h i t e l a w ecretary

of S t a t e f o r the

he R t H o n L o r d

Department

Rt Hon L o r d

Lord

Rt Hon Sir

Secretary

and

Hailsham

Chancellor Keith Joseph

of S t a t e f o r

Pym

The

M P

hancellor

of the D u c h y of L a n c a s t e r

aymaster

General

he R t H o n J a m e s

Prior

of S t a t e f o r

and



Lord

The

M P

Employment

Rt Hon L o r d President

Soames

of t h e

Rt H o n John Nott

Secretary

Council

M P

of S t a t e f o r

Defence

he R t H o n S i r I a n G i l m o u r M P

The

ord P r i v y

M i n i s t e r of A g r i c u l t u r e ,

Seal

he R t H o n M i c h a e l H e s e l t i n e 3

c r e t a r y of S t a t e f o r the

he R t H o n N i c h o l a s scretary

M P

Industry

Affairs

he R t H o n F r a n c i s

ecretary



The

Carrington

ecretary of State f o r F o r e i g n ommonwealth

The

M P

Home

M P

Minister

of S t a t e f o r

M P

Environment

Edwards

M P

The

Rt Hon Peter Walker

Rt Hon George

Secretary The

Younger

of S t a t e f o r

and F o o d

M P

Scotland

Rt Hon Humphrey Atkins

Secretary

Wales

M P Fisheries

M P

of S t a t e f o r N o r t h e r n

Ireland

I he R t H o n P a t r i c k J e n k i n M P e

c r e t a r y of State for S o c i a l

he R t H o n D a v i d H o w e l l e c

r e t a r y of S t a t e f o r

M P

Energy

Services

The

Rt Hon John Biffen

Secretary The

Rt Hon Mark

Secretary i S E C R E T

of State f o r

M P Trade

Carlisle QC M P

of S t a t e f o r

Education and

Science

S E C R E T

The Rt Hon N o r m a n F o w l e r

M P

The Rt Hon Leon Brittan Q C M P

S e c r e t a r y of St^te f o r T r a n s p o r t

Chief Secretary, ALSO

PRESENT

The Rt Hon Michael Jopling Secretary,

Parliamentary

Treasury

M P Treasury

SECRETARIAT Sir

Robert

Armstrong

Mr

M D M F r a n K l i n (Items 2 and

Mr

P L e Cheminant

(Item

M r R L W a d e - G e r y (Items 2 and Mr

D J L M o o r e (Item

Mr

L J H a r r i s ( I t e m 1)

M r R M Whalley

i)

4) 3)

4)

( I t e m 1)

C O N T E N T S Item 1.

Subject PARLIAMENTARY AFFAIRS MPs'

and M i n i s t e r s '

1

Pay

1

Canadian Constitution 2.

FOREIGN

AND COMMUNITY

Page

1 AFFAIRS

Lebanon

2

France

2

United Kingdom P r e s i d e n c y

3

Japan

3

3.

NORTHERN

IRELAND

4.

CIVIL SERVICE

AFFAIRS

PAY

4 5

ii S E C R E T

C O N F I D E N T I A L

PARLIAMENTARY FAIRS

1.

T h e C a b i n e t w e r e i n f o r m e d of the b u s i n e s s p r o v i s i o n a l l y

a r r a n g e d to be t a k e n i n the H o u s e of C o m m o n s d u r i n g the

week

b e g i n n i n g 1 J u n e 1981.

s

1

and

Kaisters'

T H E

PRIME MINISTER,

P a r l i a m e n t was

f

5 June. evious

s u m m i n g up a b r i e f d i s c u s s i o n ,

General

should consider whether

there was

erence:

c o u l d u s e f u l l y be t a k e n on that d a y , difficulties

K

the

at p r e s e n t the o n l y i t e m of b u s i n e s s p r o p o s e d f o r

T h e C h a n c e l l o r o f t h e D u c h y of L a n c a s t e r a n d

(81) 1 8 t h

clusions,

s a i d that

C a b i n e t n o t e d that the d e b a t e on the p a y of M i n i s t e r s a n d M e m b e r s of

any additional business

though the C a b i n e t r e c o g n i s e d

of c h a n g i n g the p r o g r a m m e ,

the O p p o s i t i o n , at this

Friday

Paymaster which the

which had a l r e a d y been seen by

stage.

ute 6 The

Cabinet ­ Invited the C h a n c e l l o r of t h e D u c h y of

1.

Lancaster

and Paymaster General,

in

consultation

with the C h i e f W h i p a n d other M i n i s t e r s c o n c e r n e d , tc c o n s i d e r debate

whether

a n y b u s i n e s s i n a d d i t i o n to

the

o n t h e p a y 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 c o u l d be taken i n the H o u s e of C o m m o n s on

nadian

restitution

THE

CHANCELLOR

PAYMASTER expected

evious

ference:

(81) 14th

delusions,

nute 2

F r i d a y 5 June.

i t at t h e

OF LANCASTER

AND

s a i d that the S u p r e m e C o u r t of C a n a d a

was

to d e l i v e r i t s j u d g m e n t on the c o n s t i t u t i o n a l i s s u e s n o w end of M a y or e a r l y i n June.

unanimous, for

O F T H EDUCHY

G E N E R A L

though the g e n e r a l

expectation

not

M r T r u d e a u h a d u n d e r t a k e n not to p u r s u e

the

proposals in their present f o r m if tie Supreme Court ruled against If t h e F e d e r a l G o v e r n m e n t ' s v i e w s w e r e u p h e l d b y t h e C o u r t , A d d r e s s to T h e Q u e e n r e q u e s t i n g the legislation necessary

at W e s t m i n s t e r

request

Bill

soon as

the

of the

Canadian such

soon as the S u p r e m e C o u r t v e r d i c t

was

i f the G o v e r n m e n t w e r e to

to enact a C a n a d a B i l l b e f o r e the S u m m e r R e c e s s , to c o n s i d e r

an

H e w o u l d b r i n g p r o p o s a l s on the h a n d l i n g of a n y

but it w a s a l r e a d y c l e a r that,

them.

of the a p p r o p r i a t e

w o u l d b e s e n t to L o n d o n a s

b e f o r e the C a b i n e t as

available,

enactment

R e s o l u t i o n h a d b e e n p a s s e d i n the two H o u s e s

Parliament.

it m i g h t be

seek

necessaiy

p o s t p o n i n g u n t i l the a u t u m n R o y a l A s s e n t to at l e a s t one

w h i c h i t h a d b e e n h o p e d to p a s s b y t h e e n d of J u l y ,

P a r l i a m e n t to sit i n t o A u g u s t .

be

s e e m e d to b e f o r a m a j o r i t y

the v i e w that the F e d e r a l G o v e r n m e n t ' s p r o p o s a l s w e r e

unconstitutional.

before

T h e j u d g m e n t w a s u n l i k e l y to

In t h e m e a n t i m e ,

other

and for

he had a g r e e d

with

t h e F o r e i g n a n d C o m m o n w e a l t h S e c r e t a r y that the G o v e r n m e n t ' s r e p l y to

1 C O N F I D E N T I A L

the two

reports

the S e l e c t C o m m i t t e e on F o r e i g n A f f a i r s should

be p u b l i s h e d u n t i l /he S u p r e m e C o u r t j u d g m e n t was

available,

a n d t h a t xt

s h o u l d b e a m e n d e d a s n e c e s s a r y to t a k e a c c o u n t of the C o u r t ' s

The

Cabinet

2. and

Paymaster

C h a n c e l l o r o f t h e D u c h y of

General,

in consultation

Lancaster

with

the

F o r e i g n a n d C o m m o n w e a l t h S e c r e t a r y and the of the C o u n c i l ,

to b r i n g f u r t h e r

on the h a n d l i n g of a n y r e q u e s t

f r o m the

soon as the

expected judgment

S u p r e m e C o u r t of C a n a d a was

T H EFOREIGN

Lord

proposals

Federal

G o v e r n m e n t a n d P a r l i a m e n t of C a n a d a b e f o r e Cabinet as

of

the the

available.

AND C O M M O N W E A L T H SECRETARY

REIGN

2.

D

t h e r e a p p e a r e d to h a v e b e e n s o m e e a s i n g

IMMUNITY

S y r i a a n d I s r a e l o v e r S y r i a n S A M 6 m i s s i l e s i n the L e b a n o n .

FAIRS

P r i m e M i n i s t e r of I s r a e l , h i m s e l f and m i g h t now be

•anon

findings.

­

Invited tht

President

M r Begin, seeking

said

of the c o n f r o n t a t i o n

s e e m e d to h a v e

a more moderate

which were

still

that

between The

overreached

posture.

The

U n i t e d States G o v e r n m e n t w e r e not being i n f o r m a t i v e about their at m e d i a t i o n ,

not

efforts

continuing.

vious erence: 81) 1 9 t h delusions, tote 3

ince

T H E

FOREIGN

AND C O M M O N W E A L T H

SECRETARY

M o n s i e u r F r a n c o i s M i t t e r r a n d would a s s u m e office

that

that d a y

as

evious

President

ference:

b e c o m e P r i m e M i n i s t e r and M o n s i e u r C l a u d e C h e y s s o n would probably

81) 1 9 t h

of the F r e n c h R e p u b l i c .

said

be appointed F o r e i g n M i n i s t e r .

'elusions,

M o n s i e u r C h e y s s o n as

lute 3

Mr

It w a s

that,

successful.

His present

responsibilities

issue,

replace

portfolio

but

he w o u l d p r o b a b l y not

f o r S o c i a l A f f a i r s w e r e of

and it w o u l d not be w o r t h

t h e B r i t i s h G o v e r n m e n t to h a v e a r o w w i t h the n e w

A d m i n i s t r a t i o n on this

would

Commissioners.

i f t h e F r e n c h w i s h e d to r e t a i n i t ,

s o m e i m p o r t a n c e to t h e U n i t e d K i n g d o m , for

not k n o w n who w o u l d

one of the F r e n c h

I v o r R i c h a r d w o u l d l i k e to s e c u r e the D e v e l o p m e n t

recognised be

Monsieur Pierre Mauroy

while

French

t h o u g h t h e y m i g h t w i s h to r e i t e r a t e

their

v i e w t h a t t h e F r e n c h s h o u l d e x p e c t t o g i v e u p t h i s p o r t f o l i o o n t h e ne:ct occasion.

In t h e m e a n t i m e

European Development

the p r o p o r t i o n of b u s i n e s s u n d e r

Fund which came

increasing.

2 C O N F I D E N T I A L

the

to B r i t i s h c o n t r a c t o r s

was

C O N F I D E N T I A L

T H E

MINISTER

OF AGRICULTURE,

FISHERIES A N D FOOD

that,

a p p a r e n t l y on i n s t r u c t i o n s f r o m M o n s i e u r M i t t e r r a n d ,

reported the

two

F r e n c h C o m m i s s i o n e r s had absented themselves f r o m a recent of t h e C o m m i s s i o n , t h u s p r e v e n t i n g p r o p o s a l s to m o d i f y the on

exports

our

of B r i t i s h l a m b .

T h i s was

causing

serious

were

C h r i s t m a s m a r k e t w e r e b e i n g o f f e r e d at h e a v i l y s u b s i d i s e d

the

prices,

substantial

H e h a d d r a w n the p r o b l e m to

attention of the C o m m i s s i o n and was

pnited lingdom 'residency

exports

Turkeys for

b e l o w t h e c o s t of p r o d u c t i o n , a n d t h r e a t e n e d to a b s o r b a p r o p o r t i o n of the B r i t i s h m a r k e t .

to

Moreover,

e n g a g e d i n a c a m p a i g n to o t s p u p

of t u r k e y s a n d o t h e r p o u l t r y to t h e B r i t i s h m a r k e t .

could be

restrictions

disturbance

m a r k e t a n d t h r e a t e n i n g the c l o s u r e of a b b a t o i r s .

F r e n c h poultry dealers

meeting

c o n s i d e r i n g what f u r t h e r

the

action

taken.

T H E FOREIGN

AND C O M M O N W E A L T H SECRETARY

r e c e n t l y m e t the m e m b e r s

o f the C o m m i s s i o n to d i s c u s s

U n i t e d K i n g d o m P r e s i d e n c y of the C o m m u n i t i e s . legislative

elections were

c o m p l e t e d o n 21 J u n e ,

there would be any postponement 29-30 June,

s a i d that he h a d the

If t h e

forthcoming

French

it s e e m e d u n l i k e l y that

of the E u r o p e a n C o u n c i l

scheduled

for

b u t i t w a s u n l i k e l y t h a t t h e n e w P r e s i d e n t w o u l d b e r e a d y to

s a y m u c h about h i s attitude t o w a r d s budget r e s t r u c t u r i n g , on w h i c h u r e p o r t f r o m the C o m m i s s i o n was due.

It w o u l d b e n e c e s s a r y

h a r d f o r p r o g r e s s d u r i n g the l a t t e r p a r t of the B r i t i s h

apan

T H E

SECRETARY

O F S T A T E F O R TRADE

European C a r Manufacturers had expressed

to p u s h

Presidency.

s a i d that the A s s o c i a t i o n of serious

c o n c e r n about

challenge i n the E u r o p e a n c a r m a r k e t .

The Council

'revious

strong Japanese

Reference:

M i n i s t e r s o n 19 M a y h a d a d o p t e d a r e s o l u t i o n c a l l i n g o n J a p a n n o t

:C(81) 7 t h

increase

Conclusions,

l e v e l of l a s t y e a r a n d to a v o i d d e f l e c t i o n

Minute 3

recent

United States/Japan agreement

of t r a d e r e s u l t i n g f r o m

on c a r i m p o r t s .

the

in each

member

T h e l a t e s t s t a t i s t i c s s u g g e s t e d that the l e v e l of J a p a n e s e

exports

to the U n i t e d K i n g d o m w a s

c o m i n g into line with the Recent criticisms

M i c h a e l E d w a r d e s of J a p a n e s e c a r e x p o r t s Leyland. The Took

Cabinet note.

C O N F I D E N T I A L

car

limits

by

probably represented

p a r t an a t t e m p t to d i v e r t attention f r o m the i n t e r n a l d i f f i c u l t i e s British

the

Effective

state.

a g r e e d b e t w e e n the two i n d u s t r i e s .

of

to

the l e v e l of c a r e x p o r t s to the E u r o p e a n C o m m u n i t y o v e r

c o n t r o l i n p r a c t i c e l a y with the different a r r a n g e m e n t s

Sir

the

of

in

C O N F I D E N T I A L

hRTHERN JCLAND |F AIRS Hevicus yference:

|(81) 19th Delusions, aute 2

3. T H E S E C R E T A R Y O F S T A T E F O R N O R T H E R N I R E L A N D said that a t h i r d h u n g e r s t r i K e r , M c C r e e s h , h a d d i e d i n the s m a l l h o u r s of the m o r n i n g . T h o u g h there had been an u m b e r of incidents, including an attack on a police station, the level of violence was lower than after the two e a r l i e r d e a t h s . A f o u r t h h u n g e r s t r i k e r , O ' H a r a , w a s l i k e l y to die at the weekend. T h e next one would not be in m o r t a l danger for s o m e w e e k s t h e r e a f t e r , u n l e s s he c h o s e to r e f u s e w a t e r as w e l l as food. T h e s e c u r i t y f o r c e s r e m a i n e d a b l e to c o p e w i t h the d i s t u r b a n c e s a n d h a d d o n e w e l l to c o n f i n e t h e m to C a t h o l i c a r e a s . T h e P r o v i s i o n a l I r i s h Republican A r m y (PIRA) had been prevented from provoking widespread v i o l e n c e b e t w e e n the tv/o c o m m u n i t i e s a n d m i g h t w e l l n o w r e v e r t to c o n c e n t r a t i n g o n a t t e m p t s to k i l l m e m b e r s of the s e c u r i t y f o r c e s (eg the recent blowing up of five soldiers near Newry). M e a n w h i l e strong efforts w e r e being m a d e to r e v e r s e the a d v a n c e s w h i c h the P I R A h a d recently achieved in publicity terms, particularly abroad, and there w e r e s o m e s i g n s t h a t t h e s e e f f o r t s w e r e s u c c e e d i n g . It w a s e s s e n t i a l to m a k e t h e P I R A r e a l i s e that t h e y w e r e w r o n g to e x p e c t the p r e s s u r e of i n t e r n a t i o n a l o p i n i o n to f o r c e the G o v e r n m e n t to g i v e w a y to t h e i r demands. In the c o u r s e o f a b r i e f d i s c u s s i o n it w a s n o t e d that i n s o m e s e c t i o n s of B r i t i s h public opinion support was i n c r e a s i n g for a policy of withdrawing a l l B r i t i s h t r o o p s . T h e G o v e r n m e n t ' s p u b l i c i t y efforts w o u l d n e e d to c o m b a t this vigorously. B r i t i s h opinion was also increasingly critical of the c e r e m o n i a l s h o t s w h i c h the P I R A w e r e a b l e to f i r e o v e r the g r a v e at the f u n e r a l s of t h o s e w h o h a d d i e d on h u n g e r strike. T h e l a r g e n u m b e r of m o u r n e r s present on these occasions m e a n t that these who fired the shots could not be arrested without provoking ariot and thereby playing into the P I R A ' s hands, but m o r e publicity could perhaps be given to the fact that they w e r e i n s o m e c a s e s a r r e s t e d later a n d successfully p r o s e c u t e d . It w a s f u r t h e r n o t e d t h a t t h e r e w e r e s o m e i n i t i a l i n d i c a t i o n s of the S c o t t i s h R e p u b l i c a n A r m y b e i n g n o w d i s p o s e d to e m u l a t e a n d p e r h a p s c o - o p e r a t e with the P I R A ' s c a m p a i g n of violence. The Cabinet T o o k note.

4

C O N F I D E N T I A L

C O N F I D E N T I A L

T H EL O P D

PRESIDENT

O F T H E C O U N C I L and c e r t a i n other

JIVIL

4.

ERVICE

M i n i s t e r s i n c h a r g e of D e p a r t m e n t s r e p o r t e d o r a l l y on r e c e n t events a n d

AY

prospects

for further developments

industrial Civil

Service.

revious eference:

The

c(ai) 19th

Took

Cabinet note.

onclusions, [inute 4

Cabinet

Office

21 M a y 1981

5 C O N F I D E N T I A L

i n the dispute on pay i n the n o n ­