CAB128-94_A1b — Page 106

CONFIDENTIAL

Page 106

The Cabinet

-

4. Took note, with approval, of the Prime Minister's summing up of their discussion and invited the Home Secretary to proceed accordingly.

ONFIDENTIA

Northern

Ireland

SECRETARY OF STATE FOR NORTHERN IRELAND said that 14

August would mark the 20th anniversary of the deployment of British troops on the streets in Londonderry and Belfast respectively. The anniversary was bound to attract world wide media attention and would undoubtedly be exploited by terrorist organisations and their sympathizers In an attempt to give a balanced account of the last 20 Years, his Department had produced a book which sought to set evidence of the progress made in those years alongside a realistic portrait of the violence perpetrated by the terrorist He hoped that the publication would help British embassies and others abroad to give an account of the efforts and achievements of British policy in Northern Ireland over the last 20 years in a balanced and convincing way.

DE!

The Economy

Previous Reference: CC(89) 25.6

THE CHANCELLOR OF THE EXCHER said that he would be sending to the Government parliamentary supporters that day the usual written account before the recess of the general economic position. Overall the picture was encouraging: inflation remained chief problem, although there was evidence that this was no beginning to respond to the Government's measures. Fi, sustained downward pressure on inflation would continue to be needed for some time. On a particular point, he would be grateful if colleagues would first consult the Chief Secretary before setting up any inquiries which could conceivably have expenditure consequences. Problems could red

result if enquiries were set up which generated recommendations for expenditure which could not easily be met.

THE PRIME MINISTER said that Ministers should cons the Chief Secretary before establishing enquiries likely have expenditure consequences. More generally, the successful handling of the economy was likely to be the ey to the fortunes of the Government over the next few It was essential in this as in other areas that the pubid should be reminded of the Government's many achievements over the last 10 years.

6

ENTIAL

CONFIDENTIAL

Page 106

Page 106