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S E C R E T
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
HIS
4
t
h
C(81) l jnclusiioas
COP /
NO
78
CABINET
C O N C L U S I O N S o f a M e e t i n g of the h e l d i n the P r i m e M i n i s t e r ' s H o u s e of C o m m o n s , THURSDAY
on
2 APRIL
at 10. 30
Cabinet
Rcom,
1981
am
P R E S E N T The
Rt Hon Margaret Thatcher Prime
heRt H o n W i l l i a m W h i t e l a w etary o f S t a t e f o r t h e
The
M P
Home
Department
ndPaymaster
The
M P
hancellor o f t h e D u c h y o f
Rt Hon L o r d Hail sham Chancellor Rt Hon Sir Keith Joseph
Secretary
Exchequer
heRt H o n F r a n c i s P y m
Lord The
he Rt H o n S i r G e o f f r e y H o w e Q C M P hancellor o f t h e
M P
Minister
of State for
Rt Hon L o r d
Lord President
Lancaster
M P
Industry
Soames
of the
Council
General
he Rt H o n J a m e s P r i o r ecretary o f S t a t e f o r
The
M P
P t H o n J o h n Nott
Secretary
Employment
The
he Rt H o n S i r I a n G i l m o u r M P
of State f o r
Rt Hon Peter
M P Defence
Walker M P
Minister of A g r i c u l t u r e ,
rd P r i v y S e a l
Fisheries
and F o o d
heRt H o n M i c h a e l H e s e l t i n e ecretary o f S t a t e f o r t h e h e
e
e
Rt H o n J o h n B i f f e n
cretary o f S t a t e f o r
h e
e
Rt H o n H u m p h r e y A t k i n s
Rt Hon M a r k
Rt Hon George Younger
Secretary
Environment
The
M P
«etary of State for N o r t h e r n
h e
The
M P
The
M P
The
Carlisle Q C M P
«etary of State f o r E d u c a t i o n a n d S c i e n c e
S E C R E T
of State for Social
Services
Rt Hon David Howell M P
Secretary
Trade
M P
Scotland
Rt Hon Patrick Jenkin M P
Secretary
Ireland
of State f o r
of State f o r
Ei.ergy
Rt Hon N o r m a n Fowler
Secretary
of State f o r
M P
Transport
S E C R E T
T h e Rt Hon L e o n Brittan Q C Chief Secretary, ALSO
Treasury
PRESENT
T h e Rt Hon Michael Jopling Parliamentary
M P
Secretary,
M P Treasury
SECRETARIAT S? r R o b e r t Mr
Armstrong
M D M F r a n k l i n (Items 2 and
M r R M Hastie-Smith
3)
(Items 2 and
3)
M r W N H y d e ( I t e m 1) Mr
L J H a r r i s ( I t e m 1)
C O N T E N T S Subject
PARLIAMENTARY
AFFAIRS
British Telecommunications Bill
FOREIGN
Page
1
AFFAIRS
Poland
1
Canadian Constitution
2
Belize
2
Thailand
2
Zimbabwe
2 3
Iran
3
United States COMMUNITY
AFFAIRS
Common Agricultural Policy
4
Fisheries
5
Common
Policy
Transport
^ 5
Steel
S E C R E T
C O N F I D E N T I A L
LIAMENTARY A I
RS
1.
T H ECHANCELLOR
PAYMASTER. G E N E R A L Telecommunications
[h
previous afternoon,
communica~
agreed
, gill
Bill
S
OF T H EDUCHY OF LANCASTER AND
s a i d that the R e p o r t S t a g e of the B r i t i s h
B i l l i n the H o u s e of C o m m o n s h a d begun and was
still continuing.
through the usual channels
would be completed
that R e p o r t a n d T h i r d R e a d i n g of
within a single day,
d e t e r m i n e d to d e l a y the p r o g r e s s
Government's
communications. had agreed
on the i n t e r c e p t i o n of p o s t a l o r
The closure
should continue until
successfully
a n d w o u l d c o n t i n u e to b e m o v e d a s
would collapse that day's
It w a s
shortly before
b u s i n e s s would be lost.
about a d d i n g the
c a r r i e d at 9. 30
appropriate throughout
T h e r e s h o u l d be no g r e a t
t h e n i n f o r m e d the C a b i n e t of the b u s i n e s s w h i c h it w a s i n t e n d e d
T H EL O R D PRIVY
81
committee
M r Walesa,
to c a l l off the p r o p o s e d g e n e r a l
strike
The
had come under considerable
significant
but t h e P o l i s h G o v e r n m e n t a p p e a r e d to h a v e
concessions.
T h e Soviet a r m e d forces
state of m i l i t a r y r e a d i n e s s .
Elusions,
Committee
2
of
criticism
e x t r e m i s t s i n S o l i d a r i t y for the way i n w h i c h he h a d condjeted
negotiations,
l ) 13th n u t e
the
loss
S E A L s a i d that the d e c i s i o n by the S o l i d a r i t y
b r o u g h t P o l a n d b a c k f r o m the b r i n k of a m a j o r c r i s i s .
from feren.ee:
including
a s a r e s u l t of the p o s s i b l e
note.
Solidarity leader,
°us
to
Cabinet -
national co-ordinsting had
concerned.
business.
Took
2.
and
business
He
The
evi
high,
b e i n g d o n e to G o v e r n m e n t
a r e s u l t of the o b s t r u c t i o n by the O p p o s i t i o n M e m b e r s
that d a y ' s
an<
following
as
additions w h i c h m i g h t be n e c e s s a r y
that
difficulty
T h e m o r a l e of the G o v e r n m e n t ' s o w n s u p p o r t e r s w a s
t a k e 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 w e e k ,
the
3ill
but it s e e m e d m o r e l i k e l y
e s s e n t i a l i t e m s to t h e b u s i n e s s p l a n n e d f o r t h e
he d i d not f o r e s e e any m a j o r d a m a g e
' *
might
that
p o s s i b l e that o p p o s i t i o n to the
2 . 30 p m ,
P l e n u m o n 29 M a r c h
r e m a i n e d at a h i g h
that an e x t r a o r d i n a r y p a r t y
Central congress
resulted from pressure
by
a n d w o u l d b e a f u r t h e r c a u s e o f c o n c e r n t o che S o v i e t
M e a n w h i l e the g r o u p of r e p r e s e n t a t i v e s
of P o l a n d ' s
creditors
c o n t i n u i n g to m e e t to c o n s i d e r the b e s t w a y of d e a l i n g w i t h financial difficulties. food aid available,
Union.
were
Poland's
T h e E u r o p e a n C o m m u n i t y had already made
which had included a B r i t i s h contribution. 1
CONFIDENTIAL
the
made
T h e d e c i s i o n of the C o m m u n i s t
s h o u l d m e e t b y 20 J u l y s e e m e d to h a v e reformists,
he
the
T h e r e were still a
to b e c o n s i d e r e d o n w h i c h d i v i s i o n s
had been
r e m a i n d e r of the debate.
week.
sitting
telephone
f r o m the O p p o s i t i o n ,
s t a g e s of the B i l l h a d b e e n c o m p l e t e d .
be f o r c e d .
were
r e v e r s i n g the i n s e r t i o n i n
In s p i t e of v a r i o u s o v e r t u r e s
with the C h i e f W h i p that the
remaining
morning,
of the B i l l b e c a u s e of the
and where necessary
l a r g e n u m b e r of a m e n d m e n t s
^AIRS
the
but the O p p o s i t i o n W h i p s
who
the B i l l cf p r o v i s i o n s
GN
been
a p p e a r e d u n a b l e to c o n t r o l a n u m b e r of t h e i r b a c k b e n c h e r s i n s i s t e n c e on resisting
P E I
the
It h a d o r i g i n a l l y
some
C O N F I D E N T I A L
iadian istitution
>vious erence: 1) 13th fusions, wte 1
THE
LORD
PRIVY
SEAL
ments in Canada.
s a i d that t h e r e h a d b e e n
significant
develop
T h e S u p r e m e C o u r t o f C a n a d a h a d a g r e e d to b e g i n
on
28 A p r i l i t s h e a r i n g of a P r o v i n c i a l a p p e a l a g a i n s t the j u d g m e n t by
the
M a n i t o b a C o u r t o f A p p e a l w h i c h f o u n d b y a m a j o r i t y of t h r e e to two
in
f a v o u r of the F e d e r a l p o s i t i o n .
O n 1 A p r i l the N e w f o u n d l a n d C o u r t of
A p p e a l h a d found u n a n i m o u s l y that the
F e d e r a l p l a n to b r i n g h o m e
the
constitution f r o m B r i t a i n without P r o v i n c i a l consent was l e g a l l y i n v a l i d b e c a u s e it affected
P r o v i n c i a l rights and privileges.
Prime Minister, M r Trudeau, C o m m o n s that, at p r e s e n t
h a d n o w o f f e r e d i n t h e C a n a d i a n H o u s e of
i f the C a n a d i a n C o n s e r v a t i v e s
w o u l d a l l o w the
b e f o r e t h e C a n a d i a n P a r l i a m e n t to c o m e to a v o t e ,
u n d e r t a k e n o t to f o r w a r d the p r o p o s e d r e q u e s t for
The Canadian resolution he
would
to the B r i t i s h G o v e r n m e n t
a c t i o n u n t i l t h e S u p r e m e C o u r t of C a n a d a h a d r e a c h e d a d e c i s i o n
the M a n i t o b a appeal. Canada,
Although this offer
if accepted,
it would represent
was
on
still under discusssion
a very considerable
the p o l i t i c a l p r o b l e m w h i c h the B r i t i s h G o v e r n m e n t was
in
easement in
facing on this
issxie.
Iize evious [erence: (81) 11th
THE
LORD
Belize,
PRIVY
SEAL
arrangements
going ahead.
said that,
despite considerable violence
in
for the C o n s t i t u t i o n a l C o n f e r e n c e i n L o n d o n
T h e r e was
a p o s s i b i l i t y that the
Opposition might
were
not
attend.
Delusions,
mite 2
piland
THE
LORD
PRIVY
the T h a i G o v e r n m e n t was General
Prem,
obscure.
It s e e m e d p o s s i b l e
THE
PRESIDENT
LOPD
conference Minister, asking,
T h e existing
coup
well
that the a t t e m p t e d
O F T H ECOUNCIL
satisfied
coup would
which was
political difficulties,
The Prime
h a d got the a m o u n t of a i d f o r w h i c h h e
probably m o r e than he had been
W i t h i n the next y e a r he
was
expecting.
building up confidence
i n the
s e e m e d m o r e l i k e l y to e n c o u n t e r
although the attitude of P r e s i d e n t
A d m i n i s t r a t i o n to the p r o b l e m s c r i t i c a l i m p o r t a n c e to h i m .
fail.
of the a i d d o n o r s '
in S a l i s b u r y which he had just attended.
r e c o r d of f i r m g o v e r n m e n t
the armed
s a i d that the G o v e r n m e n t of
with the o u t c o m e
M r Robert Mugabe,
against
Prime Minister,
a n d s t i l l c l a i m e d the m a j o r i t y s u p p o r t of the T h a i
services.
Z i m b a b w e was
evious ference181) 7th' "elusions, "Me 2
s a i d that the c a u s e of the a t t e m p t e d
h a d w i t h d r a w n to the N o r t h E a s t of the c o u n t r y with
King and Queen,
ibabwe
SEAL
His country.
economic
than
Reagan's
of N a m i b i a and South A f r i c a would be
The maintenance
C O N F I D E N T I A L
was
of l a w and o r d e r i n
of
C O N F I D E N T I A L
Z i m b a b w e d e p e n d e d o n b r i n g i n g t h e t h r e e a r m i e s w h i c h at existed
into a new integrated national a r m y .
assistance
of B r i t i s h o f f i c e r s
process.
Without them,
and other r a n k s was
T H E
LORD
PRIVY
SEAL
essential
and to
this
there would almost certainly have been a
breakdown in law and order in Zimbabwe.
d r o p p e d the
present
The presence
T h e y w e r e doing a fine job.
s a i d that the Iranian. G o v e r n m e n t h a d n o w
spying charges against M r A n d r e w Pyke,
Ivious
businessman imprisoned in Tehran.
Lrence:
with charges
181) 11th
seemed
relatively trivial,
[elusions,
release
of M r P y k e .
the
British
Although they were going
r e l a t i n g to the f i n a n c i a l a f f a i r s of h i s c o m p a n y , and efforts
were
ahead
these
c o n t i n u i n g to o b t a i n the
lute 2
led S t a t e s
T H E
LORD
PRIVY
SEAL
s a i d that,
although t h e r e was
think that P r e s i d e n t R e a g a n had suffered m o r e
some reason
severe injury from
nous
assassination
irence:
the U n i t e d S t a t e s a n d that of V i c e - P r e s i d e n t B u s a h a d been
1
attempt than had been r e p o r t e d , his political position in
81) 9th
by
the incident.
elusions,
perhaps unfairly
lite 2
on
T h e standing of the S e c r e t a r y of State, suffered
Took
Cabinet note.
C O N F I D E N T I A L
shot.
strengthened
M r Haig,
s o m e d i m i n u t i o n as a resu?t of h i s
t e l e v i s i o n i m m e d i a t e l y a f t e r the P r e s i d e n t was
The
to
the
had
observations
C O N F I D E N T I A L
jMMUNITY
3.
rFAlRS
reported had
T H EMINISTER O F AGRICULTURE, chat,
FISHERIES A N D FOOD
after t h r e e d a y s of negotiation,
been violent demonstrations by f a r m e r s f r o m certain C o m m u n i t y
countries,
the C o u n c i l o f M i n i s t e r s ( A g r i c u l t u r e ) h a d a g r e e d
agricultural p r i c e s and economy m e a s u r e s . , icultural r
ilicy
during which there
i n c r e a s e w o u l d be 8 , 9
p e r cent,
l e v e l of target p r i c e s .
T h e effective
on average
o r 9. 5 p e r cent i f m e a s u r e d b y
These would increase
the
the f o o d p r i c e i n d e x i n
t h e U n i t e d K i n g d o m b y 1. 0 p e r c e n t a n d t h e r e t a i l p r i c e i n d e x b y
, vious .ference:
h e h a d s e c u r e d a g r e e m e n t to c o n t i n u a t i o n o f the C o m m u n i t y - f i n a n c e d
f(8l)13th
b u t t e r s u b s i d y a n d the b e e f p r e m i a s c h e m e .
Inclusions, linute 3
w i t h i n the C o m m u n i t y had b e e n i m p r o v e d .
e
0.2
p e r cent.
T h e r e w o u l d b e n o r e v a l u a t i o n of the g r e e n p o u n d ,
a r r a n g e m e n t s on exports of sheepmeat for
The premium claw-back
b o t h to t h i r d c o u n t r i e s a n d The additional aid
d e c i s i o n to m a i n t a i n the l e v e l of s u b s i d i e s
on s t a r c h p r o d u c t i o n
w o u l d h e l p to p r e s e r v e j o b s i n the U n i t e d K i n g d o m . f i n a l l y b e e n r e a c h e d o n the r e t r o s p e c t i v e exports.
Zealand butter and
w h i c h h a d p r e v i o u s l y b e e n b l o c k e d b y the
w o u l d now be i m p l e m e n t e d . and
A g r e e m e n t had
p a y m e n t of refunds on w h i s k y
Decisions on continued access for New
A u s t r a l i a n beef,
Italians,
C h a n g e s i n the a r r a n g e m e n t s f o r
fruit and vegetables would produce substantial savings, administrative reasons
year.
its a p p l i c a t i o n w o u l d be d e f e r r e d u n t i l
b u d g e t a r y c o s t of s u r p l u s e s statement
1981
exceed
i n the m i l k s e c t o r
Budget.
rose above
were
next
i f the
the
consistent with ensuring
that
of a g r i c u l t u r a l g u a r a n t e e e x p e n d i t u r e w o u l d not
the r a t e o f i n c r e a s e
i n the C o m m u n i t y ' s o w n r e s o u r c e s .
U n i t e d K i n g d o m d e c l a r a t i o n that the r a t e of i n c r e a s e
A
i n s u c h e x p e n d i
s h o u l d b e m a r k e d l y l o w e r t h a n the r a t e o f i n c r e a s e i n o w n
r e s o u r c e s h a d b e e n e n d o r s e d b y the G e r m a n s a n d the
In d i s c u s s i o n i t w a s
noted that the
improvement in farm incomes, benefits
Dutch.
settlement would bring a
e s p e c i a l l y i n the l i v e s t o c k
i n the c o - r e s p o n s i b i l i t y l e v y o n m i l k ,
significant sector.
o f t h i s to the c o u n t r y s i d e s h o u l d b e s t r e s s e d .
of a s m a l l i n c r e a s e
In
products.
This
s h o u l d h e l p to s e c u r e
p r i c e of liquid m i l k .
The figures
greater
q u o t e d i n the P r e s s f o r the
d i f f i c u l t to e s t i m a t e
correct.
dairy
It w a s
the p r e c i s e e f f e c t o n i n d i v i d u a l
effect
tendentious
It w o u l d b e i m p o r t a n t f o r t h e G o v e r n m e n t t o m a k e
whether o r not th«se figures were
would
s t a b i l i t y i n the r e t a i l
on p r i c e s of i n d i v i d u a l c o m m o d i t i e s w e r e u n o f f i c i a l and estimates.
spite
there
b e a s i g n i f i c a n t n e t i n c r e a s e i n t h e p r i c e p a i d to p r o d u c e r s f o r
The
It h a d a l s o e n d o r s e d a C o m m i s s i o n
that the p r i c e d e c i s i o n s
the r a t e o f i n c r e a s e
ture
although
T h e C o u n c i l h a d a g r e e d to t a k e a d d i t i o n a l m e a s u r e s
p r o v i s i o n i n the
beef
a n d the
p r i n c i p l e of c o - r e s p o n s i b i l i t y for c e r e a l s had been agreed,
The
measures
t h e I r i s h R e p u b l i c w o u l d b e e x t e n d e d i n f u l l to N o r t h e r n I r e l a n d .
The
for
and
clear
in practice commodities.
G e r m a n M i n i s t e r o f A g r i c u l t u r e h a d d o n e v e r y l i t t l e to
support
the U n i t e d K i n g d o m i n s e c u r i n g r e s t r i c t i o n s o n the g r o w t h of agricultural expenditure.
It w a s n o t p o s s i b l e
to p r e d i c t w h a t
the
p r o v i s i o n f o r a g r i c u l t u r a l e x p e n d i t u r e i n the 1932 b u d g e t w o u l d b e , the B r i t i s h G o v e r n m e n t w o u l d b e i n a p o s i t i o n to p r e s s economies
at t h a t t i m e .
for further
T h e p r i c e s e t t l e m e n t h a d n o t c o n t r i b u t e d to
r e s t r u c t u r i n g the C o m m u n i t y b u d g e t a n d the G o v e r n m e n t w o u l d n e e d continue its efforts
but
in this d i r e c t i o n .
C O N F I D E N T I A L
to
C O N F I D E N T I A L
ccnmon , L .-to g
olicy
THE
M I N I S T E R O F A G R I C U L T U R E ,
FISHERIES A N D FOOD
said
that,
a t t h e C o u n c i l o f M i n i s t e r s ( F i s h e r i e s ) o n 27 M a r c h t h e
French
M i n i s t e r of F i s h e r i e s h a d m a d e no s e c r e t o f h i s u n w i l l i n g n e s s
to
s e t t l e the q u e s t i o n o f a c c e s s b e f o r e the P r e s i d e n t i a l e l e c t i o n s ,
in
ievious
spite of P r e s i d e n t G i s c a r d ' s
statement
to the P r i m e
M i n i s t e r a t the
eference:
E u r o p e a n C o u n c i l i n M a a s t r i c h t t h a t the e l e c t i o n s
1(81) 13th
obstacle
(inclusions,
the G e r m a n s a n d the D u t c h P r e s i d e n c y that the F r e n c h w o u l d be
nute 3
t o early
settlement.
g e n u i n e l y r e a d y to n e g o t i a t e
w e r e not a n
A s s u r a n c e s h a d h o w e v e r b e e n g i v e n to after their elections.
s e e n w h e t h e r they w o u l d do so,
It r e m a i n e d t o b e
o r w o u l d s e e k e i t h e r to l i n k a
o n f i s h e r i e s w i t h d i s c u s s i o n s o n r e s t r u c t u r i n g o f the
settlement
Common
A g r i c u l t u r a l P o l i c y a n d o f t h e B u d g e t o r to p o s t p o n e d e c i s i o n s
until
the e n d o f 1982 w h e n the p r e s e n t a c c e s s a r r a n g e m e n t s c a m e to a n e n d .
ransport
T H E
MINISTER O F TRANSPORT
r e p o r t e d that,
at a r e c e n t
meeting
o f t h e C o u n c i l o f M i n i s t e r s ( T r a n s p o r t ) , the G e r m a n s h a d o n c e b l o c k e d the a t t e m p t s b e i n g m a d e b y h i s D e p a r t m e n t to s e c u r e
again more
p e r m i t s f o r r o a d h a u l a g e o n the C o n t i n e n t .
lei
THE
SECRETARY
secuie
O F S T A T E F O R INDUSTRY
evious
d e l i v e r i e s w i t h i n the C o m m u n i t y h a d m a d e
ference:
yet been completed.
(81) 9th
on
the o n e G e r m a n c o m p a n y w h i c h w a s
The
Cabinet -
Took
note.
Cabinet
Office
2 April
1981
to
steel
s o m e p r o g r e s s but h a d not
T h e F e d e r a l G o v e r n m e n t was putting p r e s s u r e
nclusions, mute 3
s a i d that efforts
a voluntary a g r e e m e n t on continued restrictions on
5
C O N F I D E N T I A L
making difficulty.