THIS
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IS
THE
PROPERTY
OF
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BRITANNIC
MAJESTY'S
COPY
GOVERNMENT
78
NO
CABINET
CONCLUSIONS held
of at
a
Meeting
of
10
Downing
Street
THURSDAY at
the
13 A P R I L
Cabinet on
1989
am
9.30
P R E S E N T The
Rt
Hon
Margaret
Prime
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Geoffrey
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State
ffiaonwealth
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Chancellor
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the
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GJjannon Χρτ
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Education
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WaM;h of t l
John
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John
Department
MP
MacGregor
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Chief The
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State
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John
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Chancellor
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FOLLOWING WERE ALSO PRESENT The R t Hoa P e t e r B r o o k e Paymaster General
n D a v i d W a d d i n g t o n QC MP jtary S e c r e t a r y , T r e a s u r y
MP
SECRETARIAT Sir Mr Mr Mr Mr
Ρ A J S
Robin B u t l e r J Weston J Langdon Η Holroyd S Mundy
( I t e m s 3 and ( I t e m s 1 and ( I t e m s 3 and ( I t e m s 1 and
4) 2) 4) 2)
C O N T E N T S Page
Subject
1
PARLIAMENTARY A F ^ I R S Official
Secrets
1
Bill
HOME A F F A I R S The J u d i c i a r y Profession Dock Work
and
nment's P r o p o s a l s
t
f o r Reform of
the
Legal
Bill
Unemployment General P r a c t i t i o n e r s '
Remuner
FOREIGN A F F A I R S
4
Southern
Africa
Visit
the P r e s i d e n t
by
of the
<
Soviet U ^^^^6-8 A p r i l
COMMUNITY A F F A I R S G e n e r a l Agreement on T a r i f f s and European Court of J u s t i c e Vehicle Emission Nissan
Motors
5
UK
Standards
Trade
( G A T T ) Round M i d - t e r m R e v i e w
R u l i n g on A i r l i n e
Pric^ft-^Lng
6 7 7 7
-i'TARY
1· The C a b i n e t w e r e i n f o r m e d o f t h e b u s i n e s s t o be t a k e n i n t h e House of Commons i n t h e f o l l o w i n g week.
LORD PRIVY SEAL s a i d t h a t , a l t h o u g h a n amendment w h i c h had sought t o oduce a p u b l i c i n t e r e s t d e f e n c e i n t o t h e O f f i c i a l S e c r e t s B i l l had e f e a t e d a t C o m m i t t e e S t a g e i n t h e House o f L o r d s , a f u r t h e r nt w h i c h s o u g h t t o i n t r o d u c e a more f a r - r e a c h i n g v e r s i o n o f t h a t had b e e n t a b l e d f o r c o n s i d e r a t i o n a t R e p o r t S t a g e on t h e Tuesday. T h e Government was s c r u p u l o u s i n o b s e r v i n g t h e o p ^ t h a t a n i s s u e w h i c h had been s e t t l e d a t e i t h e r Committee e p o r t S t a g e i n t h e House o f L o r d s s h o u l d n o t be reopened a t a The G o v e r n m e n t ' s s t r i c t a d h e r e n c e t o t h i s c o n v e n t i o n p u t i t i n a s t r o n g p o s i t i o n i n i t s n e g o t i a t i o n s w i t h o t h e r p a r t i e s on t h e h a n d l i n g o f b u s i n e s s : f o r e x a m p l e , t h e O p p o s i t i o n h a d r e c e n t l y been p r e v a i l e d upoty^3fcv t o t a k e t o a v o t e a t R e p o r t S t a g e o f t h e F o o t b a l l S p e c t a t o r s B i l l aityfendments on m a t t e r s w h i c h h a d e f f e c t i v e l y been s e t t l e d a t Committee S1>a^i־-N\Jle was g i v i n g c o n s i d e r a t i o n t o t h e b e s t way o f h a n d l i n g t h e remeVj^iwg. d e b a t e s on t h e O f f i c i a l S e c r e t s B i l l . A number o f s e n i o r m e m b e r s l p f ^ t j f \ e House had p r o v i d e d i n f l u e n t i a l s u p p o r t i n t h e e a r l i e r p r o c e e d i n g s f>vty1&t& B i l l , and he w o u l d be s e e k i n g t o m o b i l i z e t h e i r support f o r t h e x ^ m ^ n i n g s t a g e s . The Took
ME AFFAIRS e Judiciary d the vernment s oposals f o r form of t h e gal
Cabinet note.
2. The C a b i n e t h a d a d i s c u s s i o n Government's p r o p o s a l s f o r r e f o r m discussion i s recorded separately.
t h e j u d i c i a r y and t h e l e g a l p r o f e s s i o n . The
1
ofession
ck Work B i l l evious ference: (89) 12.2
i n e t had THE SECRETARY OF STATE FOR EMPLOYMENT s a i d t h a t , a s vious a g r e e d a t t h e i r p r e v i o u s m e e t i n g , he h a d announced on t ock L a b o u r T h u r s d a y t h a t l e g i s l a t i o n would be i n t r o d u c e d t o a b o l i s pi lowing Scheme, and t h e B i l l t o s e c u r e t h i s h a d been p u b l i s h e d d a y . T h e announcement had been w e l l r e c e i v e d by t h e Gover supporters. D o c k w o r k e r s had t a k e n some l i m i t e d i n d u s t r i a l f o l l o w i n g t h e announcement, b u t t h i s had'now come t o a n end temporarily. T h e T r a n s p o r t and G e n e r a l W o r k e r s U n i o n d o c k s co 1
w h i c h had met on t h e p r e v i o u s T u e s d a y , h a d f a v o u r e d a n i m m e d i a t e b a l l o t o f i t s members on a n a t i o n a l p o r t s s t r i k e , b u t t h e u n i o n ' s G e n e r a l S e c r e t a r y , Mr Ron Todd, h a d t a k e n t h e v i e w t h a t t h e u n i o n s h o u l d f i r s t seek n e g o t i a t i o n s w i t h t h e port employers. T h i s was b e c a u s e Mr Todd was c o n c e r n e d t h a t any s t r i k e a c t i o n a g a i n s t t h e a b o l i t i o n o f t h e Scheme :>uld be deemed t o be u n l a w f u l u n l e s s i t h a d f o l l o w e d a b r e a k d o w n i n n e g o t i a t i o n s w i t h t h e e m p l o y e r s . T h e u n i o n ' s e x e c u t i v e c o m m i t t e e would 2 $ « w e t i n g on t h e f o l l o w i n g day, a n d t h e u n i o n would be c o n v e n i n g a vpyCS} d e l e g a t e c o n f e r e n c e on t h e d a y a f t e r t h a t . I t might w e l l be t h a t , tvl)s£?ing t h o s e m e e t i n g s , t h e u n i o n w o u l d s e e k t o e n t e r i n t o ions w i t h the p o r t employers. T h e e m p l o y e r s would c l e a r l y n o t •y&a t o a c c e p t a s u b s t i t u t e scheme f o r t h e Dock L a b o u r Schemej .!ley w e r e t o r e f u s e t o n e g o t i a t e , o r n e g o t i a t i o n s w e r e t o b r e a k aown, c^en d o c k w o r k e r s c o u l d be e x p e c t e d t o t a k e i n d u s t r i a l a c t i o n . T h e N a t i o n a l A s s o c i a t i o n o f P o r t E m p l o y e r s , w h i c h had been h a n d l i n g t h e s i t u a t i o n w i t h g r e a t s k i l l , would l a t e r t h a t day be p r o v i d i n g a p u b l i c u n d e r t a k i n g tijJCENthere w o u l d be no r e t u r n t o c a u s u a l employment i n t h e i r d o c k s f o l l o w i n g yne r e p e a l o f t h e Scheme. T h i s u n d e r t a k i n g w o u l d c o v e r 90 p e r c e n t σί3ό?>3Ν w o r k e r s c u r r e n t l y i n t h e Scheme. S i n c e t h e Scheme had been e s t a b l i s h e d .,to c o u n t e r t h e a b u s e s a s s o c i a t e d w i t h c a u s a l l a b o u r , t h i s g u a V ^ ^ a e e f f e c t i v e l y removed i t s main r a t i o n a l e . I t was i n d e e d n o t a b l e that/)Hv£se who h a d opposed t h e Dock Work B i l l h a d made l i t t l e o r no a t t e m p r x ^ T ^ e f e n d t h e Scheme on i t s m e r i t s . I t was m a n i f e s t l y c l e a r t h a t cft/e^te was no l o n g e r a r e q u i r e m e n t f o r c a s u a l d o c k w o r k e r s i n modern ^ k r ^ s ^ g i v e n t h e s o p h i s t i c a t e d n a t u r e o f t h e e q u i p m e n t w h i c h was no\A\jsi !e d i s c u s s i o n , s a i d t h a t i t w o u l d be THE PRIME M I N I S T E R , summi l i e t h a t t h e Dock L a b o u r Scheme important t o get across t o o r d o c k w o r k e r s up t o t h e a g e o f 6 5 , p r o v i d e d a g u a r a n t e e o f emplo i e s t o be c o m p e l l e d t o t a k e them on i n c l u d i n g p r o v i s i o n f o r other*(: business. T h i s was i n d e f e n s i b l e , i f t h e i r o r i g i n a l company went 8 u t i p l o y e r s could not a g r e e a t any However, t h e r e was no r e a s o n why ^ ^ b o u t t h e c o n t r a c t w h i c h would time t o n e g o t i a t e w i t h t h e t r a d e f o l l o w t h e a b o l i t i o n o f t h e scheme The
Cabinet ־ Took n o t e .
Unemployment Previous Reference: CC(89) 11.2
ployment f i g u r e s THE SECRETARY OF STATE FOR EMPLOYMENT s a i d t h a t justed total f o r March would be p u b l i s h e d t h a t d a y . T h e seasort second the had f a l l e n by 30,600 t o 1.918 m i l l i o n . T h i s was cont inuous c o n s e c u t i v e m o n t h l y r e d u c t i o n , w h i c h was by f a r t h e 1 he r a t e o f p e r i o d o f f a l l i n g unemployment s i n c e t h e Second World ^iropean unemployment had f a l l e n t o 6.7 p e r c e n t , w h i c h was below the Community a v e r a g e . Unemployment had f a l l e n i n a l l r e g i o n e West l a r g e s t r e d u c t i o n s i n t h e unemployment-rate having occurre M i d l a n d s a n d W a l e s . T h e u n a d j u s t e d t o t a l was now below two h a v i n g f a l l e n by 58,000 t o 1.960 m i l l i o n . The number o f p e o p l 1
had n e v e r been h i g h e r , w i t h an e s t i m a t e d i n c r e a s e o f 169,000 i n t h e w o r k f o r c e i n employment i n t h e f o u r t h q u a r t e r of 1988. He w o u l d a l s o be a n n o u n c i n g l a t e r t h a t day t h a t t h e u n d e r l y i n g i n c r e a s e i n a v e r a g e e a r n i n g s i n t h e y e a r t o F e b r u a r y had been 9 V 4 per c e n t , a r i s e o f I / 4 per c e n t on t h e y e a r t o J a n u a r y . discussion,
the
f o l l o w i n g main p o i n t s
were made:
The r e d u c t i o n i n unemployment and the i n c r e a s e i n t h e number p e o p l e i n work o v e r r e c e n t months were both e x t r e m e l y ogj-isfactory. H o w e v e r , t h e m e d i a would no doubt f o c u s on t h e i^tyther i n c r e a s e i n t h e g r o w t h i n a v e r a g e e a r n i n g s , w h i c h t h e y c l a i m was a s i g n t h a t t h e economy was overheating, e r t h e l e s s , t h e i n c r e a s e i n the growth i n a v e r a g e e a r n i n g s , w h i l e c l ^ r l y unwelcome, was not u n e x p e c t e d . b. W h i l e o r o d u c t i v i t y g r o w t h i n the m a n u f a c t u r i n g s e c t o r was v e r y good, oyygTale t h a t s e c t o r i t r e m a i n e d f a r too low. T h i s was p a r t l y a t t r i b u & A h l & - t o t h e f a c t t h a t changes i n the l a b o u r m a r k e t l a g g e d b e h i n d t h o ^ e x p \ t h e r e s t o f t h e economy. THE PRIME M I N I S T E unemployment and e f u r t h e r r i s e i n the The 2.
General Practitioners Remunerat ion
Cabinet
i n g up t h e d i s c u s s i o n , s a i d t h a t t h e f i g u r e s on remained v e r y encouraging. However, the o f a v e r a g e e a r n i n g s was a c a u s e f o r c o n c e r n .
-
Took n o t e .
THE SECRETARY OF STATE FOR H E A L T H ^ ^ ^ t h a t the Government had made c l e a r i n a G r e e n P a p e r p u b l i s h e d 1tC^^׳0 and i n a W h i t e P a p e r p u b l i s h e d i n t h e f o l l o w i n g y e a r t h a t i t i n t e n d £ d • ^ n e g o t i a t e new c o n t r a c t s f o r G e n e r a l P r a c t i t i o n e r s ( G P s ) , and d e t ^ a e d n e g o t i a t i o n s w i t h GPs' r e p r e s e n t a t i v e s had b e e n c o n t i n u i n g fo£ t h e p r e v i o u s 12 m o n t h s . GPs r e p r e s e n t a t i v e s a g r e e d t h a t a new c o n t r a c t s h o u l d be b r o u g h t i n f r o m A p r i l , but t h e two s i d e s were i n d i s a g r e e m e n t on v i r t u a l l y a l l t h e d e t a i l s of the Government's p r o p o s a l s . I t w ^ ~ o l e a r t h a t the new r e m u n e r a t i o n p a c k a g e needed t o be s e t t l e d q i i i c l c r y ^ s o t h a t GPs c o u l d make t h e n e c e s s a r y p r e p a r a t i o n s f o r any changes the//n>TVht w i s h t o i n t r o d u c e t o the way t h e y r a n t h e i r p r a c t i c e s and so t ha 0^4™^• ^׳s sue d i d not become enmeshed w i t h t h e i s s u e s t o be c o v e r e d i n the H e ^ M V ^ S j r v i c e s B i l l planned f o r the f o l l o w i n g S e s s i o n . Under the G o v e / p ^ p ^ ' s p r o p o s a l s , h o s e GPs who t h e r e would be no r e d u c t i o n i n t h e o v e r a l l pay b i l l ^ , v i c e s would a t t r a c t e d more p a t i e n t s or who a c h i e v e d t a r g e t s f o r nej i t i c s had b e n e f i t a t t h e e x p e n s e o f t h o s e who performed l e s s wer 1
s u g g e s t e d t h a t t h i s w o u l d e n c o u r a g e some GPs to t a k e p a t i e n t s , but i t was q u i t e c l e a r t h a t GPs who took on an l a r g e w o r k l o a d would l o s e p a t i e n t s from t h e i r l i s t s . It
i m p o r t a n t t o p o i n t t h i s o u t t o t h e p u b l i c and t o g e t a c r o s s t h a t t h e Government's p r o p o s a l s w o u l d e n c o u r a g e t h e p r o v i s i o n o f s e r v i c e s such a s c e r v i c a l c a n c e r s c r e e n i n g , v a c c i n a t i o n s and minor s u r g e r y . THE PRIME M I N I S T E R , summing up a s h o r t d i s c u s s i o n , s a i d t h a t i t was i m p o r t a n t t h a t t h e new r e m u n e r a t i o n package s h o u l d be s e t t l e d i n t h e !ear f u t u r e . T h e D e p a r t m e n t o f H e a l t h h a d produced a n e x c e l l e n t s e t o f > t t e r s w h i c h were b e i n g s e n t t o t h o s e who had commented on v a r i o u s Z ^ e c t s o f t h e W h i t e P a p e r on t h e r e f o r m o f t h e N a t i o n a l H e a l t h S e r v i c e ajm\£n t h e p r o p o s a l s on G P s r e m u n e r a t i o n . As t o t h e l a t t e r p o i n t , i t VouJt
Ttie C a b i n e t -
OREIGN FAIRS outhern frica revious eference: C(89) 12.3
ONWEALTH SECRETARY s a i d t h a t f o l l o w i n g u r g e n t 3. THE FOREIGN kend's meeting o f the j o i n t commission of work a t t h e p r e c e d p l a n , a framework had been a g r e e d i n t h e p a r t i e s t o t h e Nami t i o n f o r r e t u r n i n g p e r s o n n e l o f t h e South s o - c a l l e d Mount E t j o t i o n (SWAPO) t o n o r t h o f t h e 1 6 t h p a r a l l e l West A f r i c a P e o p l e ' s 0 U n i t e d N a t i o n s (UN) f o r c e s . T h i s had i n Angola under s u p e r v i s " f f o r t s from a l l p a r t i e s i n c l u d i n g the been made p o s s i b l e by pos Zambia, though n o t a l l t h e front line S o v i e t Union. President Κ i ^ r t T s l e m e n t a t i o n o f t h e m e a s u r e s i n the s t a t e s , had a l s o l e n t s u p p o r t ow^£2^ p r o v e v e r y d i f f i c u l t , p a rticularly Mount E t j o D e c l a r a t i o n w o u l d s i n c e t h e r e were n o t y e t suf f icYeai^tfN f o r c e s p r e s e n t i n Namibia, a l t h o u g h more w o u l d be a r r i v i n g v & w r i i ^ t h e n e x t f e w d a y s . I n the meantime a B r i t i s h c o n t i n g e n t f r o m \ K 6 ^ R j > y a 1 Corps o f S i g n a l s , A u s t r a l i a n f o r c e s and some o t h e r s we׳v£׳׳aoing t h e i r b e s t t o h o l d t h e p o s i t i o n and t o man t h e n i n e d e s i g n a t ^ c h e c k p o i n t s ( t w o i n Namibia and s e v e n on t h e N a m i b i a / A n g o l a b o r d e r ) t h r o u g h w h i c h i t h a d been i n t e n d e d t h a t t h e SWAPO p e r s o n n e l s h o u l d be d i s a r m e d and r e t u r n e d t o Angola. F u r t h e r c o m p l i c a t i o n s w e r e t h e l a c k o f c l e a r ^ i S X t r u c t i o n s t o SWAPO p e r s o n n e l from t h e i r own l e a d e r s h i p and t h e ( n e a ^ y - h a n d e d a t t i t u d e o f the South A f r i c a n d e f e n c e f o r c e s on the ground w i v S y ^ m k i n e d i n t h e v i c i n i t y of e a c h c h e c k p o i n t . T h e r e c e n t S o u t h A f r i c a n WljjrfJ .that SWAPO p e r s o n n e l were s u b j e c t t o " i n t e r r o g a t i o n " b e f o r e b e i n g r e t f l m f l t o A n g o l a had been e s p e c i a l l y u n h e l p f u l . So f a r o n l y f o u r SWAPO pers/^£<£i\.had r e p o r t e d t o t h e c h e c k p o i n t s a l t h o u g h 190 o t h e r s were r e p o r t e d gone back t o A n g o l a o f t h e i r own a c c o r d . A r e c e n t c o r r e c t i v e s t a t by t h e South A f r i c a n A d m i n i s t r a t o r - G e n e r a l f o r Namibia had p l a c e d i o n s on t h e r e t u r n o f SWAPO p e r s o n n e l t o A n g o l a s o l o n g a s t h e } .back. But the p o s i t i o n remained v e r y v o l a t i l e . He h i m s e l f w o u l d uch w i t h t h e S o u t h A f r i c a n F o r e i g n M i n i s t e r , Mr P i k B o t h a , l a t e r t ) The B r i t i s h Ambassador i n S o u t h A f r i c a a n d - t h e Head o f t h e B r i t " ^ ison O f f i c e i n Windhoek r e m a i n e d c l o s e l y and c o n t i n u o u s l y i n v o l v e c 1
The judgement o f C o l o n e l D o n a l d s o n , who commanded the B r i t i s h S i g n a l s u n i t , was t h a t t h e s i t u a t i o n c o u l d p r o b a b l y be h e l d u n t i l the a r r i v a l o f more UN t r o o p s . T h e Government was m e a n w h i l e making a v a i l a b l e ע0 L a n d r o v e r s and 12 f o u r - w h e e l d r i v e t r u c k s t o t h e UN f o r c e s i n N a m i b i a . B a s i c a l l y t h e S o u t h A f r i c a n Government w a n t e d t h e Namibia peace p l a n t o ,work. T h e q u e s t i o n r e m a i n e d why t h e SWAPO l e a d e r , Mr Sam Nujoma, h a d ade s u c h a f u n d a m e n t a l e r r o r o f j u d g e m e n t i n a l l o w i n g SWAPO i n c u r s i o n s t r a r y t o t h e terras o f t h e a g r e e m e n t . T h e U n i t e d Kingdom would Drtcsinue t o make e v e r y e f f o r t t o h e l p k e e p t h e peace p l a n i n t a c t w h i l e l h & i n g p e o p l e t h a t , u n l i k e t h e c a s e o f Zimbabwe, t h e r e a l E x s n g ^ b i l i t y f o r m a k i n g t h e p l a n w o r k i n N a m i b i a r e s t e d w i t h the UN.
isit by t h e resident o f he Soviet nion, April
THE FOREIGN AND COMMONWEALTH SECRETARY s a i d i t was c l e a r t h a t the v i s i t of t h e P r e s i d e n t o f t h e S o v i e t U n i o n , Mr M i k h a i l G o r b a c h e v , t o t h e U n i t e d Kingdafni'^pm 6 t o 8 A p r i l had b e e n h i g h l y s u c c e s s f u l . President G o r b a c h e v ' s (ft^e^tives h a d been t o s e e k s u p p o r t f o r h i s r a d i c a l i n t e r n a l S o v i e t U n i o n ; t o e l u c i d a t e how f a r the new r e f o r m program i d e n t Bush r e m a i n e d a c t i v e l y engaged i n t h e Administration i c h Mr Reagan a s P r e s i d e n t had been c o m m i t t e d ; East/West process, p i c t u r e o f new t h i n k i n g i n S o v i e t f o r e i g n and t o p r e s e n t a ρ been w i l l i n g t o t a l k c o n s t r u c t i v e l y about policy. The R u s s i a lems w h e r e t h e r e was scope f o r f o r w a r d regional foreign polic A f r i c a and t h e M i d d l e E a s t . They had movement, f o r example s on s u c h m a t t e r s a s t h e s u p p l y o f S o v i e t s t u c k t o more o b d u r a t e o r t f o r S y r i a , and t h e f u t u r e o f s h o r t military a i r c r a f t to Liby g ^ ^ T h e v i s i t had o v e r a l l been a n e x t r e m e l y range n u c l e a r f o r c e s i n t r e l a t i o n s h i p , marking the u s e f u l o c c a s i o n f o r the A n g ! t h e U n i t e d Kingdom and t h e Prime c r i t i c a l l y important r o l e pla p e c t i v e on E a s t / W e s t r e l a t i o n s . M i n i s t e r p e r s o n a l l y i n the Sovi O^ed t h e m s e l v e s and had been The R u s s i a n v i s i t o r s h a d c l e a r l y ^(׳0 W i n d s o r C a s t l e a s g u e s t s o f p a r t i c u l a r l y i m p r e s s e d by t h e i r ν Her
M a j e s t y T h e Queen.
I n a b r i e f d i s c u s s i o n , i t was n o t e d t f ^ t t P r e s i d e n t G o r b a c h e v ' s d e p a r t u r e from t h e U n i t e d Kingdom had c o i n c i d e d w i t h a n i n c i d e n t i n w h i c h E a s t German b o r d e r g u a r d s h a d f i r e d on f u g i t i v e s i t ! B e r l i n , w i t h v i o l e n t s u p p r e s s i o n o f d e m o n s t r a t i o n s i n T b i l i s i in/^6v\\pt G e o r g i a and w i t h a l e a r powered d e f e n s i v e a t t i t u d e o v e r t h e s i n k i n g o f a So ed people t h a t t h e s u b m a r i n e n o r t h o f Norway. T h i s h a d u s e f u l l y remained below t h e more t r a d i t i o n a l c h a r a c t e r i s t i c s o f t h e S o v i e t ubtle Soviet surface. A t t h e same t i m e t h e r e was a c o n t i n u i n lear forces i n o f f e n s i v e , f o r example o v e r t h e f u t u r e o f s h o r t r egotiations. E u r o p e and t h e i n c l u s i o n o f n a v a l f o r c e s i n arms co׳ ,es f r om The S o v i e t s t r a t e g i c a i m r e m a i n e d t o d e t a c h the U n i t e d be s e e n by E u r o p e by means o f t h e s l o g a n o f d e n u c l e a r i s a t i o n , a s allies P r e s i d e n t Gorbachev's crude t h r e a t t h a t modernisation b o f s h o r t r a n g e n u c l e a r f o r c e s would s t o p c o n v e n t i o n a l f o r in Vienna. P r e s i d e n t G o r b a c h e v , i n h i s programme o f p o l i t was r i d i n g a t i g e r t h a t m i g h t w e l l o u t s t r i p h i s own e x p e c t a r e s u l t s o f t h e r e c e n t S o v i e t e l e c t i o n s showed. W e s t e r n p o l i c
t h e r e f o r e r e m a i n s u p p o r t f o r t h e i n t e r n a l S o v i e t r e f o r m programme coupled w i t h r e s o l u t e determination t o maintain Western defence. A n o t h e r v i v i d example o f p o l i t i c a l a d v a n c e was P o l a n d , where t h e r e m a r k a b l e d e c i s i o n t o h o l d f r e e e l e c t i o n s i n June would l e a d t o t h e t r a n s f o r m a t i o n o f t h e p o l i t i c a l c l i m a t e ; a l t h o u g h n e i t h e r t h e Communist P a r t y nor t h e t r a d e s u n i o n o r g a n i s a t i o n , S o l i d a r i t y , had y e t f u i l y hought t h r o u g h t h e i m p l i c a t i o n s . M e a n w h i l e t h e P o l i s h economy r e m a i n e d a state of serious deterioration. he
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4. THE CHANCELLOR OF THE DUCHY OF LANCASTER s a i d t h a t t h e s u c c e s s f u l outcome t o t K ^ ^ d - t e r m r e v i e w o f t h e c u r r e n t G e n e r a l Agreement on T a r i f f s a n d W ^ < M - l G A T T ) Round was t o be welcomed. T h e most d i f f i c u l t i s s u e h a d b e e n / % r ^ u l t u r e ; a g r e e m e n t on t h a t was i n i t s e l f welcome and i t h a d opened P^׳y^^> b o t h t o a g r e e m e n t i n t h r e e o t h e r o u t s t a n d i n g j p e r t y , t e x t i l e s and s a f e g u a r d s , and t o t h e areas, i n t e l l e c t s t a n t i a l range o f i s s u e s t h a t would f i g u r e i n r e n e w a l o f work on tound. I t was p o s s i b l e t h a t t h e P o r t u g u e s e t h e f i n a l outcome ο t h e a g r e e m e n t on t e x t i l e s a t t h e n e x t might r a i s e questions !jbably w i t h the aim of g e t t i n g i n c r e a s e d F o r e i g n A f f a i r s Counc i x t i l e i n d u s t r y : t h e U n i t e d Kingdom w o u l d s t r u c t u r a l support of strenuously
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I E S AND FOOD s a i d t h a t t h e outcome on THE M I N I S T E R OF AGRICULTURE o r y and p o i n t e d t o w a r d s s u b s t a n t i a l a g r i c u l t u r e was r e a s o n a b l y s a for a g r i c u l t u r e i n the long-term, and p r o g r e s s i v e r e d u c t i o n s i n t and p r o t e c t i o n i n t h e as w e l l a s a f r e e z e i n l e v e l s o f tance to these o u t l i n e agreements short-term. The p r o c e s s o f g i v i n w o u l d , h o w e v e r , n o t be s t r a i g h t f o r w < N
I n a b r i e f d i s c u s s i o n i t was p o i n t e d ^ 1 t t h a t t h e E u r o p e a n had p l a y e d t h e i r hand w e l l i n n e g o t i a t i o n s i n t h e m i d - t e r m r e v i e w , i n s t a t e s t o take a l e s s p a r t i c u l a r r e s i s t i n g demands f r o m c e r t a i n mem r t u g u e s e were t o s e e k l i b e r a l l i n e towards the n e g o t i a t i o n s . I f t e d Kingdom w o u l d a d d i t i o n a l funding for the t e x t i l e industry e a major b e n e f i c i a r y need t o r e s i s t t h i s f i r m l y . T h e P o r t u g u e s e w ddition to the from t h e r e c e n t d o u b l i n g o f t h e s t r u c t u r a l d u s t r y programme. s p e c i a l Community payments t h e y r e c e i v e d under t
THE SECRETARY OF STATE FOR TRANSPORT s a i d t h a t a v e r y r e c e n t and l e n g t h y judgement o f t h e E u r o p e a n C o u r t o f J u s t i c e , w h i c h had not y e t been f u l l y a n a l y s e d , a p p e a r e d t o i n d i c a t e t h a t n a t i o n a l bans on c r o s s - b o r d e r t i c k e t i n g were i l l e g a l . T h i s would i n c r e a s e a i r l i n e t r a v e l l e r s ' a b i l i t y t o shop a r o u n d f o r c h e a p e r f a r e s and g i v e the C o m m i s s i o n a d d i t i o n a l j u s t i f i c a t i o n f o r p r e s s i n g on t o t h e n e x t phase o f a i r t r a n s p o r t iberalisation. The j u d g e m e n t a l s o a p p e a r e d to i n v o l v e t h e i c a t i o n o f Community r u l e s on c o m p e t i t i o n not o n l y t o f l i g h t s w i t h i n ommunity b u t a l s o t o r o u t e s b e t w e e n Community and non-Community p o ^ t s . He w o u l d be d i s c u s s i n g t h e i s s u e s r a i s e d by t h e c a s e w i t h Sijp^eQfl B r i t t a n i n the near f u t u r e .
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THE SEC1&ETARY OF STATE FOR THE ENVIRONMENT drew a t t e n t i o n t o t h e v o t e by t h e E u r o p e a n P a r l i a m e n t on 12 A p r i l w h i c h e n d o r s e d h i g h e r e m i s s i o n s t a n d a r d s f o r s m a l l c a r s t h a n t h o s e a g r e e d by the C o u n c i l i n 1988. The E u r o p e a n Pary^rfmi^jit a p p e a r e d t o be s u p p o r t i n g s t a n d a r d s s i m i l a r t o t h ose m e U n i t e d S t a t e s , w h i c h c o u l d o n l y be met by t h e p r e v a i l i n g wi^h^i on o f t h r e e - w a y c a t a l y s t s i n t o s m a l l c a r s . This widespread i n t r ^ v e i n i t s e l f and i n f u e l use and c o u l d p e r v e r s e l y would be b o t h e nment, by w o r s e n i n g the " g r e e n h o u s e " e f f e c t , be h a r m f u l t o t h e r m i n e t h e development and i n t r o d u c t i o n o f t h e Such s t a n d a r d s woul l e a n burn engine out t h a t the v o t e by t h e E u r o p e a n I n d i s c u s s i o n i t was ρ c i s i o n on t h e i s s u e . The C o m m i s s i o n P a r l i a m e n t was not t h e an P a r l i a m e n t ' s v i e w s and d e c i d e w h e t h e r would have t o e x a m i n e t h e s i s on w h i c h the C o u n c i l had adopted t o p r o p o s e an amendment t o s i o n put f o r w a r d an amended p r o p o s a l i t s common p o s i t i o n . I f the e i t h e r adopt i t by q u a l i f i e d t o t h e C o u n c i l t h e n t h e Counci' the o r i g i n a l common p o s i t i o n , i n m a j o r i t y or amend i t , eg t o r e t w h i c h c a s e u n a n i m i t y w o u l d be requJ^$d- \׳I t seemed l i k e l y t h a t F r a n c e , t h e U n i t e d Kingdom and I t a l y wouldCaTi/׳oe a g a i n s t t h e s t a n d a r d s a p p r o v e d by t h e E u r o p e a n P a r l i a m e n t and t h a t ^X^^KOmmission w o u l d n e e d t o r e - e x a m i n e t h e i s s u e s c a r e f u l l y i f a ^ r o s s i b l e b a s i s f o r a g r e e m e n t was t o be found.
Nissan Motors UK
THE CHANCELLOR OF THE DUCHY OF LANCASTER s a i d ttettjlhe p o s i t i o n on t h e F r e n c h i m p o r t s o f N i s s a n c a r s o f U n i t e d KingdonK^rOfe^n was becoming c l e a r e r and more f a v o u r a b l e , C o m m i s s i o n e r Bangema
s h o u l d be made t o t h e a p p r o a c h from t h e F r e n c h Prime M i n i s t e r ' s o f f i c e on 5 A p r i l 1989. I n any e v e n t t h e U n i t e d Kingdom's r e p l y t o t h i s would a c c e p t no l i n k a g e b e t w e e n t h e need f o r t h e F r e n c h t o come i n t o l i n e w i t h Community r u l e s on N i s s a n c a r s o f U n i t e d Kingdom o r i g i n on t h e one hand, and on t h e o t h e r hand, w i d e r i s s u e s r e l a t e d t o l o c a l c o n t e n t and c o n t i n u e d n a t i o n a l c o n t r o l s on i m p o r t s o f v e h i c l e s f r o m J a p a n . T h i s was ) a r t i c u l a r l y important, given the c o n t i n u i n g flow of major inward tnvestment p r o j e c t s by J a p a n e s e c o m p a n i e s s u c h a s T o y o t a , Honda and ^ i t s u , i n t o t h e U n i t e d Kingdom, on w h i c h a n o t e w o u l d be c i r c u l a t e d t o ;agues. Cabinet note.
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13 A p r i l 1989
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CHANCELLOR s a i d t h a t t h e j u d i c i a r y ' s r e s p o n s e to the G r e e n P a p e r on the work and o r g a n i s a t i o n of the l e g a l p r o f e s s i o n was d e v e l o p i n g i n a way t h a t was a t t r a c t i n g a good d e a l o f u n f a v o u r a b l e p u b l i c coinmeyn^-P^pne r e a s o n f o r t h i s was the a s s e r t i o n made by the L o r d C h i e f J u s t i c ^ ( j . n V t i ^ e House of L o r d s d e b a t e on the G r e e n Paper on the p r e v i ous t h e r e had been no o f f e r of c o n s u l t a t i o n w i t h the j u d g e s w h i l e th' Paper was b e i n g p r e p a r e d , w i t h the i m p l i c a t i o n t h a t the 3-month t a t i o n p e r i o d on the G r e e n P a p e r was i n a d e q u a t e f o r the j u d g e s to t h e i r views. I n f a c t , when the G r e e n Paper was b e i n g p r e p a r e d p r e v i o u s autumn he had w r i t t e n t o t h e L o r d C h i e f J u s t i c e to sugges t i t would be u s e f u l f o r the j u d g e s to be g i v e n the e a r l i e s t pos o t i c e of the Government's p r o p o s a l s , i n an i n f o r m a l way, so t h a t w p a p e r was i s s u e d to t h e p u b l i c and i n v i t a t i o n s given for res t o i t , the j u d g e s m i g h t f i n d i t e a s i e r to give t h e i r v i e w s . The i e f J u s t i c e had d e c l i n e d t h a t i n v i t a t i o n on the grounds j u d g e s s h o u l d r e m a i n a t arms' l e n g t h from the p r e p a r a t i o n of the d and i t was e n t i r e l y owing t o t h a t d e c i s i o n t h a t the j u d g e s had ha i o r n o t i c e of the c o n t e n t s of the G r e e n P a p e r when i t was publishe
consultation period. I n the c i r c u m s t a n c e s i t would be d i f f i c u l t to a r g u e t h a t the c o n s i d e r a t i o n of such a m a j o r m a t t e r o f p u b l i c p o l i c y as t h e r e f o r m of the l e g a l p r o f e s s i o n l a y c o m p l e t e l y o u t s i d e the j u d g e s ' duty. I n d e e d , when he had l e a r n t from the L o r d C h i e f J u s t i c e t h a t t h i s m e e t i n g was b e i n g a r r a n g e d he had i n d i c a t e d t h a t he would w i s h to & t t e n d i t i n h i s c a p a c i t y as a judge. I n the e v e n t , however, he would be ^nable to a t t e n d t h e m e e t i n g s i n c e he had o t h e r commitments on 17 A p r i l \d t h e L o r d C h i e f J u s t i c e had now w r i t t e n t o say t h a t t h e d a t e o f the i^te&ting c o u l d not be c h a n g e d , b e c a u s e of the problems i n a l t e r i n g c o u r t li^C^ngs at short notice. He d i d not t h i n k t h a t t h e L o r d C h i e f J u s t i c e Mr j i ^ i e r j u d g e s were b e i n g i n t e n t i o n a l l y p r o v o c a t i v e i n o r g a n i s i n g a m^£*jrS^in t h i s way; he b e l i e v e d , r a t h e r , t h a t they r e g a r d e d i t as q u i t e reas^t(6bW t o meet i n c o u r t h o u r s i n o r d e r t o make a p r o p e r l y p r e p a r e d r e s p o p ^ e ' t o the G o v e r n m e n t ' s p r o p o s a l s w i t h i n the s h o r t time t h a t was b e i n g עי11 owed. A s t o r m o f p r o t e s t a t the use of c o u r t h o u r s f o r t h i s p u r p o s e had now blown up i n t h e media, however, and t h e j u d i c i a r y were no doubt g r e a t l y t 3 k e n a b a c k by t h i s . In
discussi
f o l l o w i n g main p o i n t s were made:
s r e s p o n s e to the G r e e n Paper had been v e r y a. The rom t h e i r p o i n t of v i e w , c o u n t e r - p r o d u c t i v e . i11-advise c o u r t hours for p r e p a r i n g t h e i r response to T h e i r propo ed the c r i t i c i s m t h a t t h e y were b e h a v i n g i n t h e G r e e n Pap f i r r e s p o n s i b l e t r a d e u n i o n i s m and t h i s the w o r s t t r a d i ' t i s p e c i a l l y p o i n t e d i f , as was c u r r e n t l y c r i t i c i s m wouId i ^ l l had i t s Second R e a d i n g i n the House of p l a n n e d , the Dock t the j u d g e s ' m e e t i n g took p l a c e . Commons on t h e same r e s e n t e d something f a r more s e r i o u s b. The j u d g e s ' behav t i n g t h e i r j u d i c i a l d u t y , or than a simple m i s t a k e i n C o n v e n i n g t h e proposed m e e t i n g i n iη s e n s i t i v i t y to p u b l i c op l a c i n g t h e i r own i n t e r e s t s above c o u r t h o u r s showed the j u d g e t h e o l d q u e s t i o n of who s h o u l d t h e l a w , and posed i n an acu' guard the g u a r d i a n s . c. I t was not f e a s i b l e f o r the i ^ v e r n m e n t t o make a p u b l i c i n d i c a t i o n o f i t s v i e w o f t h e j u d g e s ' c o n d u c t , and an e x p r e s s i o n of deep r e g r e t was p r o b a b l y as f a r as the Government c o u l d go. N e v e r t h e l e s s , i t was most u n d e s i r a b l e tKji\?־the j u d i c i a r y s h o u l d b r i n g t h e m s e l v e s i n t o d i s r e p u t e by concf^^ct: ί/g^ the m e e t i n g i n the be found to convey way they p r o p o s e d , and some i n f o r m a l wa Lord Chancellor t h a t message t o them. T h i s might be done r r a n g e f o r the himself. A l t e r n a t i v e l y , i t might be p o s s i t ) n c e l l o r who were a d v i c e to be c o n v e y e d by a l l the p r e v i o u s L o r e a d v a n t a g e of a v a i l a b l e : p r o c e e d i n g i n t h e l a t t e r way would not be d i s t a n c i n g t h e Government from the m a t t e r , but i t s of the e a s y to a r r a n g e f o r the t h r e e a v a i l a b l e p r e v i o u s f this o f f i c e of L o r d C h a n c e l l o r t o a c t i n c o n c e r t on a k i nd. THE PRIME MINISTER, summing up the d i s c u s s i o n , s a i d t h a t t h took the most s e r i o u s v i e w o f t h e s e n i o r j u d i c i a r y ' s i n t e n t i o
h o l d i n g a m e e t i n g d u r i n g c o u r t h o u r s on 17 A p r i l i n o r d e r t o f o r m u l a t e t h e i r comments on t h e G o v e r n m e n t ' s p r o p o s a l s f o r r e f o r m o f t h e l e g a l profession. T h i s a c t i o n showed t h e j u d i c i a r y b e h a v i n g i n t h e w o r s t t r a d i t i o n s o f i r r e s p o n s i b l e t r a d e u n i o n i s m , and i t m e r i t e d t h e w i d e s p r e a d c r i t i c i s m t h a t i t had a t t r a c t e d i n t h e m e d i a . I t was no e x a g g e r a t i o n t o s a y t h a t t h e j u d g e s were, i n e f f e c t , t a k i n g t h e l a w i n t o ^ e i r own h a n d s , and t h e i r a c t i o n m e r i t e d c o n d e m n a t i o n i n t h e s t r o n g e s t * יmost u n q u a l i f i e d t e r m s . W h i l s t i t would n o t be a p p r o p r i a t e f o r t h e ^rnment t o go on p u b l i c r e c o r d w i t h any c r i t i c i s m o f t h i s s o r t , e v e r y ־s h o u l d i n f o r m a l l y be made t o persuade t h e j u d g e s t o draw back p i n g i n g t h e m s e l v e s i n t o d i s r e p u t e i n t h e way t h e y p r o p o s e d and, i f pO^siX/k, t o r e a r r a n g e t h e i r c o n s i d e r a t i o n o f t h e G r e e n P a p e r i n a way t h a v ^ r j S ^ i e d any d i s r u p t i o n o f c o u r t s i t t i n g s ! The L o r d C h a n c e l l o r s h o u i 9 y y s k A u r g e n t s t e p s t o e n s u r e t h a t t h e j u d i c i a r y were made aware of t h e C a v W t ' s v i e w s on t h i s m a t t e r .
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14 A p r i l 1989