secret secret

---

SECRET

!HIS D O C U M E N T

cC

IS T H E P R O P E R T Y

O F HER BRITANNIC

MAJESTY'S

(81) 3 5 t h

GOVERNMENT

COPY

NO

79

Conclusions CABINET

CONCLUSIONS

o f a M e e t i n g of t h e

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

on

5 NOVEMBER

a t 9 . 30

Cabinet

1981

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 S i r G e o f f r e y hancellor

of the

The Rt Hon Lord

M P

Home

Howe

M P

Minister

Department

Lord The

QC M P

Rt Hon Sir Keith Joseph

Secretary

Exchequer

Hailsham

Chancellor M P

of S t a t e f o r E d u c a t i o n a n d

Science

he R t H o n F r a n c i s P y m ord P r e s i d e n t

of the

he R t H o n J o h n N o t t ecretary of State f o r

The

M P

Rt Hon James Prior M P

Council

Secretary

M P

The

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

Rt Hon Peter Walker

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

Defence

Ireland

M P

Fisheries

and

Food

he R t H o n M i c h a e l H e s e l t i n e ecretary of State f o r the he R t H o n N i c h o l a s ecretary of S t a t e f o r

Environment

Edwards Wales

The

M P

M P



The Lord



Rt Hon George

Secretary

Privy

The

ecretary of S t a t e f o r

Secretary

h e

Rt H o n D a v i d H o w e l l

ecretary of State f o r h e



M P

Transport

Rt H o n L e o n B r i t t a n Q C M P

hief S e c r e t a r y ,

Treasury

The

of State f o r

M P

Trade

Rt Hon Norman Fowler

M P

of State f o r S o c i a l

Rt Hon Baroness

Services

Young

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

SECRET

MP

Seal

Rt Hon John Biffen

Secretary The

M P

Scotland

Rt Hon Humphrey Atkins

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

Younger

of State f o r

Lancaster

SECRET

The R t H o n N i g e l L a w s o n M P

The

Secretary

Secretary

of State f o r

Energy The

of State f o r

Employment

Rt Hon Cecil Parkinson M P

Paymaster

General

ALSO The

Rt Hon N o r m a n Tebbit M P

PRESENT

R t Hon Michael Jopling M P

Parliamentary Secretary,

Treasury

SECRETARIAT Sir

Robert

Armstrong

Mr R L Wade-Gery Mr

D M Elliott

Mr

D H J Hilary

Mr

L J Harris

(Items

(Items

2 a n d 3)

2 a n d 3)

( I t e m 1)

( I t e m 1)

C O N T E N T S

PARLIAMENTARY 2

3

Page

Subject

Item

FOREIGN

1

AFFAIRS

AFFAIRS

Arab/Israel

1

Canadian

2

COMMUNITY

Constitution

AFFAIRS

30/31 O c t o b e r I n f o r m a l

M e e t i n g of F i n a n c e

ii

SECRET

Ministers

2

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

tUAMENTARY JpAlRS

1.

The Cabinet were

i n f o r m e d of the b u s i n e s s 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 f o l l o w i n g THE

PRIME

Ministers enter

MINISTER,

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

into any c o m m i t m e n t s

involving public expenditure

a l r e a d y g i v e n b y the C o v e r n m e i n t .

S e c r e t a r y of State f o r S o c i a l S e r v i c e s , the A d d r e s s ,

of the p r e s e n t

The

ib/Israel

PRIVY SEAL

France,

the

s a i d that t h e r e h a d b e e n a

for four m e m b e r s

last-minute

of the E u r o p e a n C o m m u n i t y -

I t a l y a n d the N e t h e r l a n d s - to p a r t i c i p a t e i n the

posed multinational force

and observers

in Sinai.

The ten

G o v e r n m e n t s d e s i g n e d to m a k e c l e a r that p a r t i c i p a t i o n was

erence;

w i t h t h e V e n i c e D e c l a r a t i o n o f J u n e 1980 a n d t h a t s u p p o r t f o r

(81) 34th

arrangements

lclusions,

d i s t i n c t f r o m the r e s t of the C a m p D a v i d p r o c e s s ;

associated

with Israel's

M r Haig,

T h i s was

consistent the was

These

B u t the

s t a t e ­

United

to v / h o m t h e y h a d b e e n s h o w n i n

had reacted v e r y unfavourably.

p r e s s i n g i n p a r t i c u l a r f o r the o m i s s i o n of a n y r e f e r e n c e Declaration.

of

four

and on an anodyne

s t a t e m e n t b y a l l t e n G o v e r n m e n t s a l o n g the s a m e l i n e s .

on 4 N o v e m b e r ,

members

withdrawal f r o m Sinai

m e n t s h a d b e e n due to be p u b l i s h e d o n 6 N o v e m b e r . S t a t e s S e c r e t a r y of State,

pro­

o n a p u b l i c s t a t e m e n t b y the

ivious

were

pledge

during

note.

T H E LORD

confidence

on

Parliament.

the C o m m u n i t y h a d r e a c h e d a g r e e m e n t

lute 2

the

i f p r e s s e d d u r i n g the D e b a t e

of s t a t e r e t i r e m e n t p e n s i o n s

h i t c h i n the a r r a n g e m e n t s Britain,

w h i c h went

Cabinet -

Took

2.

to

In p a r t i c u l a r ,

s h o u l d go n o f u r t h e r t h a n c o n f i r m i n g the e x i s t i n g

to m a i n t a i n the r e a l v a l u e

REIGN FAIRS

s a i d that

s h o u l d be c a r e f u l i n a n y p u b l i c s t a t e m e n t s not to a p p e a r

beyond undertakings

lifetime

week.

He

to the

was

Venice

a r e q u e s t w h i c h the E u r o p e a n G o v e r n m e n t s

n o t i n a p o s i t i o n to a c c e p t .

pended and representatives

Publication had therefore

been

of the f o u r G o v e r n m e n t s w o u l d be

i n L o n d o n o n 6 N o v e m b e r to c o n s i d e r h o w to p r o c e e d .

sus­

meeting

Meanwhile

the

I s r a e l i G o v e r n m e n t h a d p u b l i c l y s u g g e s t e d that they w o u l d veto any p o t e n t i a l p a r t i c i p a n t i n the S i n a i m u l t i n a t i o n a l f o r c e

who

entered

reservations

inconsistent

situation was

p a r t i c u l a r l y u n s a t i s f a c t o r y f o r the B r i t i s h G o v e r n m e n t ,

w i t h the C a m p D a v i d A g r e e m e n t .

w h o h a d f r o m the b e g i n n i n g h a d g o o d r e a s o n s p a r t i c i p a t e at a l l .

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

The

for being reluctant

present to

CONFIDENTIAL

nadian „stitution

THE

LORD

PRIVY SEAL

to a r e a s o n a b l e evious (crence: ;(81) 3 3 r d t

clusions,

s a i d that the c u r r e n t c o n f e r e n c e b e t w e e n

F e d e r a l and P r o v i n c i a l G o v e r n m e n t s in Canada seemed on

start.

to h a v e

It w a s n o t l i k e l y t o r e a c h u n a n i m o u s

the p r o b l e m s a s s o c i a t e d w i t h p a t r i a t i n g the c o n s t i t u t i o n ,

agreement but it m i g h t

j u s t be a b l e to p r o d u c e a s a t i s f a c t o r y c o m p r o m i s e b e t w e e n the G o v e r n m e n t a n d a r e a s o n a b l e n u m b e r of the P r o v i n c e s . i m p o s s i b l e to s a y h o w l o n g the c o n f e r e n c e

It

the

got off

Federal

was

would last.

Inttte 3 The

Cabinet

Took

-

note.

T H E C H A N C E L L O R Q F T H E E X C H E Q U E R s a i d that d i s c u s e i o n of the

3. IMMUNITY

30 M a y 1980 m a n d a t e a t t h e 3 0 - 3 1 O c t o b e r i n f o r m a l m e e t i n g o f F i n a n c e [FAIRS

M i n i s t e r s had m a d e no significant headway. (31 O c t o b e r ormal M e e t i n g

The G e r m a n s had presented

t h e i r c a s e f o r s o m e l i m i t o n t h e i r net c o n t r i b u t i o n to the

Community

b u d g e t to be a g r e e d a l o n g s i d e a n y s o l u t i o n p r o p o s e d f o r the

United

Finance

Kingdom,

lusters

b u d g e t a r y f r a m e w o r k i n t e r m s that to s o m e e x t e n t e c h o e d the a p p r o a c h

a n d the D u t c h h a d r e s t a t e d t h e i r e a r l i e r a r g u m e n t s f o r a n e w

he h a d put f o r w a r d i n h i s s p e e c h i n T h e H a g u e i n J u n e , evious ference: 1(81) 34th inclusions, nute 3

He had had a

p r i v a t e t a l k i n the m a r g i n s of the m e e t i n g w i t h M o n s i e u r D e l o r s , French Finance Minister.

It w a s a p p a r e n t t h a t h e a t l e a s t

the n e e d f o r the C o m m u n i t y to f i n d a s o l u t i o n to soon,

the

recognised

the budget p r o b l e m

though M o n s i e u r D e l o r s h a d m a d e c l e a r that this r e p r e s e n t e d

p e r s o n a l a p p r o a c h and that t h e r e was as yet no a g r e e d G o v e r n m e n t view on this subject.

Finance M i n i s t e r s had also

t h e i r c o n t i n u i n g c o n c e r n at the r e f u s a l of the to i n t e r v e n e i n the e x c h a n g e

his

French voiced

United States G o v e r n m e n t

m a r k e t s a r d t h e i r hope that this

attitude

m i g h t give w a y to a g r e a t e r w i l l i n g n e s s to c o - o p e r a t e w i t h o t h e r m o n e t a r y a u t h o r i t i e s if the d o l l a r w e a k e n e d next y e a r . the e c o n o m i c

s i t u a t i o n w i t h i n the C o m m u n i t y ,

In a r e v i e w of

it w a s n o t e w o r t h y that a

c o m m o n p a t t e r n of f i n a n c i a l s t r i n g e n c y a n d p u b l i c e x p e n d i t u r e r e d u c t i o n s w a s e m e r g i n g t h r o u g h o u t E u r o p e ; the G e r m a n s h a d n o w

e m b a r k e d o n t h e i r t h i r d r o u n d of e x p e n d i t u r e

The Took

Cabinet

Cabinet

-

note.

Office

5 November

1981

CONFIDENTIAL

cuts.