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Page 65 activity that Government expenditure would rise considerably. I shall shortly submit a paper reviewing the investment programme for 1953 in the light of these considerations and of our earlier discussions on this subject.

Agriculture

* 24. I have already suggested that we must grow more of our food at home but without paying exorbitant prices for it. The agricultural policy worked out in 1947 by our predecessors is clearly ripe for review and we must replace it by a new policy which fits into the other parts of the general economic policy we are to pursue. To this end the Minister of Agriculture and I have already given instruc- tions that a fundamental examination of our agricultural position and prospects should be undertaken, and I hope that the preliminary conclusions of this work will be available before the Recess.

IV

25. The above is only intended as a rough outline of the course which I believe we should follow. I hope, however, that my colleagues will feel, as I do, that the points which I have outlined are essential parts of a single coherent policy, each feature of which interlocks with the others. We have inherited a position of very great difficulty. It will not be cured at all unless we take a long view, and apply long-term remedies, and do not allow ourselves to be deterred by it even if the immediate effect of some of these remedies is unpleasant. Nevertheless, I believe that the course which I have sketched out if vigorously and consistently pursued in all its branches, will bring us to a successful conclusion.

26. To sum up, I recommend that my colleagues should—

(a) approve the general line of policy set out in this paper and summarised in paragraphs 7-9—i.e., in all our economic affairs to give first and overriding priority to regaining our national solvency in the sense of being able to pay our way as a nation in the world; and

(b) endorse the conclusions on particular subjects set out in paragraphs 11-24.

Treasury Chambers, S.W. 1,

17th May, 1952.

R. A. B.

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(THOCUMENT IS THE PROPERTY OF HER BRITANNIC MAJESTY'S GOVERNMENT)

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CONFIDENTIAL

C.(52) 167

19TH MAY, 1952

CABINET OFFICE

RECORD COPY

CABINET ⠀

COPY NO.

42

ROYAL VISIT TO AUSTRALIA AND NEW ZEALAND:

CHOICE OF SHIP

Note by the Secretary of the Cabinet

The Prime Minister has directed that the annexed minute by

the First Lord of the Admiralty and the Minister of Transport should be

considered by the Cabinet on Tuesday, 20th May.

Cabinet Office, S. W. 1.,

19TH MAY, 1952.

(Signed) NORMAN BROOK

PRIME MINISTER FROM FIRST LORD OF THE ADMIRALTY AND MINISTER OF TRANSPORT

Minute of 13th May, 1952

The earliest date for completion of the new Royal Yacht is the end of 1953. She should be able to sail about 19th January, 1954, reaching Australia or New Zealand in the first week of March. There is no margin in these dates, and any labour troubles would retard date of completion.

!

On political grounds, Australia and New Zealand desire the visit to be made not later than 1954. There have been consultations between the two Prime Ministers and Mr. Menzies intends to discuss the matter when he reaches England at the end of May. Present indications are that the two Prime Ministers hope that "it will be possible for the visit to be completed by April 1954". This would necessitate Her Majesty arriving in Australia or New Zealand in mid-January, 1954.

It will be essential that a ship should be available to Her Majesty during the tour. The possible courses are:-

(1) to adjust the dates of the tour to enable the Royal Yacht to be used;

(2) to use s.s. GOTHIC, the vessel being released in the meantime for

de purposes (some modifications in accommodatiqm being

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made temporarily for that purpose);

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