TOP SECRET
Page 341
THE PRIME MINISTER, sumning up the discussion, said that opinion in the
Committee was divided as to whether we should supply the arms that South
Africa was soeking; we should not decide the matter now.
In view,
however, of the need for an early reply to the South African Government, a decision would need to be taken soon. A decision in favour of supplying
the arms would only be likely to be acceptable politically if it formed
part of a series of measures covering expenditure at home and abroad which
were dictated by the necessities of our economic situation and which were
announced as a package. He would consider this possibility and timing
in relation to it with the Ministers most closely concerned. In the
meantime we should seek to establish whether the reply to the South
African Government could be deferred for a further short period. There
should also be an urgent examination of other areas of our trade policy
in which our freedom to follow our own economic interests was inhibited
by existing policy decisions.
The Committee
(1) Took note, with approval, of the Prime Minister's summing up
of their discussion.
(2) Invited the President of the Board of Trade to examine and
report on the extent to which existing policy decisions were inhibiting our trade.
Cabinet Office, S.W.1.
11th December 1967
~3~
Page 341
TOP SECRET
Page 341