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the training and education of employees, should they consider that the indus- try's arrangements are inadequate, and to make any necessary grants or

Expenses of the Board

39. The Board will have power to obtain payments from the iron and steel companies to meet their expenses, including, when necessary, the losses involved in selling imported materials below cost. These payments will be fixed in accordance with principles to be approved by the Minister, who before giving his consent will consider any representations by the companies concerned.

Statistics

40. The Board will arrange for the periodical publication of statistics relating to the industry, and the iron and steel companies will be required to furnish any necessary information.

Application to Northern Ireland

41. The powers relating to prices will apply to sales of iron and steel in Northern Ireland as well as in Great Britain. The other functions of the Board may be applied to Northern Ireland upon the request of the Northern Ireland Parliament.

Import Duties

42. It is the Government's intention to consult the Board in regard to any proposed modifications to the import duties on iron and steel.

Report to Parliament

43. The Board will make an annual report to the Minister of Supply, who will lay it before Parliament.

APPENDIX

IRON AND STEEL PROCESSES

1. The working and getting of iron ore or the treatment or preparation of iron ore for smelting.

2. The smelting of iron ore in a blast furnace with or without other metalliferous materials or the production of iron by any other process.

3. The production of steel by any process.

4. The casting of iron or steel by any process.

5. The processing, with or without heat, of iron or steel by rolling, drawing (otherwise than for the production of tubes or pipes), extrusion or forging (excluding drop forging and blacksmiths' hand forging).

6. The production from iron or steel of hot-finished welded tubes or pipes or hot-finished seamless tubes or pipes.

7. The production of tinplate or terneplate.

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ONFIDENTIAL

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C. (52) 220

22nd JULY, 1952.

CABINET

COPY NO.

73

GATWICK AIRPORT

Memorandum by the Minister of Civil Aviation

Aircraft movements in the London area have increased by fifty per cent in the past four years. Passengers handled have doubled in the same period and will double again by 1960. In 1951 London Airport and Northolt together handled over one a ad a half million passengers (over 300,000 more than did our businest seaport, Dover). All this raises major Air Traffic Control problems. In this crowded air space it is becoming increasingly difficult to use both London Airport and Northolt. By 1955/6 it will only be possible to manage if civil flying at Northolt ceases. Northolt will therefore be returned to the Royal Air Force in 1955/6 and will be held in reserve against a war. Peacetime flying by the Royal Air Force at Northolt will be carried on in such a way that it will not interfere with the London Airport traffic pattern.

2.

With Northolt so treated, London Airport if developed as planned, should be able to deal with the traffic we expect, except for certain short- haul European services. But when bad visibility slows down movements (as it often will), diversions will be necessary. There are at present seven aerodromes available for civil flying in the London area. I propose to reduce them to three: London Airport, Blackbushe and Gatwick,

3.

Gatwick, however, needs complete reconstruction if it is to accept large aircraft diverted from London Airport, which it must be able to do. This will mean spending about £2 millions there by the end of 1955 and about £ millions during the following five years. How this would be phased is set out in Appendix B. Of this expenditure about & million will pay for itself through hangar rents. Against the rest can be set the savings to the Government from giving up the other airports about £750,000 capital and £400,000 per annum on operating costs. There will also be earnings from landing fees, office rents, concessions, etc.

4.

The Home Affairs Committee have approved this project. I now seek the agreement of the Cabinet to the development of Gatwick at a cost of about 6 millions in the next seven years.

Ministry of Civil Aviation, W.C.1.

22nd JULY, 1952.