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Page 96 the Commission will have to consider. As regards the other members, we shall have to find a strong body of both Scots and English who are demonstrably impartial, who will command confidence in Scotland and who, though not them- selves Members of either House, will be acceptable to the main political parties. A fair proportion of them should, I think, have had practical experience of large- scale organisation in business or central or local government; and one of them at least must come from the Highland area.

Scottish Office, S.W. 1,

24th June, 1952.

J. S.

APPENDIX

SUMMARY OF MAIN CONCLUSIONS OF THE REPORT OF THE CATTO COMMITTEE

Government Revenue and Expenditure

(Part (i) of terms of reference.)

It would be practicable to make a return of the revenue from and Government expenditure in (a) Scotland and (b) the rest of the United Kingdom and of the balances of revenue available for general expenditure from Scotland and the rest of the United Kingdom respectively. In such a return, expenditure incurred for the special benefit of Scotland, as distinct from other parts of the United Kingdom, would be set against the revenue contributed by residents of Scotland.

(Paragraph 210.)

The work involved in preparing the return would be considerable but would be spread over a large number of departments.

(Paragraph 211.)

In the return roughly one-third of the ordinary revenue could be attributed directly; the attribution of the remainder, with the exception of certain indirect taxes which account for 10 per cent. of total receipts, could be carried out by methods sufficiently sound to preclude any considerable errors. (Paragraph 212.) About four-fifths of the ordinary expenditure could be allocated between English, Scottish and General services on the basis of costs separately incurred for these services.

(Paragraph 213.)

The return, although making no pretence to complete accuracy, would give a sufficiently reliable picture of the facts with which part (i) of our of ence is concerned.

terms 214.)

(Paragraph

The return would be of value in comparing the respective fiscal positions of Scotland and England.

Scotland's Share in United Kingdom External Trade ·

(Part (ii) of terms of reference.)

(Paragraph 218.)

We have found no practicable method of making a complete return of Scotland's share in the imports and exports, visible and invisible, of the United Kingdom.

(Paragraph 263)

As regards Scotland's share of the visible trade of the United Kingdom, a record of the foreign trade handled at the Scottish sea and air ports could be of adjusting this record to take account of the cross-Border traffic in imported goods and in goods intended for export.

(Paragraph 260.)

prepared. We have, however, found no satisfactory method Ports could be

The results of the Census of Production and Census of Distribution could not be used to calculate Scotland's share of visible imports, and an estimate of her share of visible exports based on the census figures would be obtainable only at an interval of years and would be subject to a very large margin of errors ga

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(Paragraph 261.) Page 96 of 253

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