CAB129-36 — Page 443

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20

A LYGAN

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Relevant to com (49) 53rd Meeting

but not considered then.

(THIS DOCUMENT IS THE PROPERTY OF HIS

Page 444GOVERNMENT)

SECRET

C.P.(49) 178

25/8/49

7:15am

BRITANNIC MAJESTY'210

Page 444-

COPY NO. 25

24TH AUGUST, 1949

CABINET

THE INVESTMENT PROGRAMME

Note by the President of the Board of Trade

The Cabinet agreed on 28th July (C.M,(49) 50th Conclusions, Minute 5) that further study should be made of the measures which might be taken to counter any inflationary pressures which might develop and asked, in particular, for a study of the reductions which might be made in the investment programme.

The Investment Programmes Committee have sub- mitted an interim report on this subject which I am circulating for the information of my colleagues,

I do not suggest that we can or should come to any early decisions on the basis of this report since the whole subject clearly needs further study. In particular I should wish myself to make a much more thorough investigation of the prospective timber position before any conclusions can be drawn about its effect on various parts of the capital investment programme.

In my view, however and this is the only immediate relevance of the report the broad conclusion can be drawn that there is no easy way of reducing inflationary pressure by cuts in invest- ment without major changes in Government policy.