CAB148-30-Defence and Oversea Policy Committee Meetings Relating to 1967 Disturbances-1967 — Page 20

¡Page 20 of 350

CONFIDENTIAL

Page 20

It was recognised, however, that for industrial and political reasons we could not afford merely to accept the position if negotiations with

the French failed. In that event we might then announce that we were embarking on the project definition stage for a national V/G aircraft.

This would cost £4 million in 1967-68 and would leave open for

consideration, when the current defence studies were completed in

mid-year, whether to proceed further by ordering prototype aircraft.

THE PRIME MINISTER, summing up the discussion, said that the

Committee were agreed that, in negotiations with the French, we should

use as a bargaining counter the threat that we would develop a national V/G aircraft if they declined to continue in co-operation. For several

reasons it seemed unlikely that there would be an early and complete

breakdown in these negotiations but if this happened we should be

prepared to embark on the project definition stage for such en aircraft. Any announcement of this intention should not however bind us to complete

the project nor restrict our freedom of action as the further defence

studies proceeded. Its terms should be agreed by the Defence Secretary

with the Chancellor of the Exchequer and the Minister of Aviation. The

terms of any subsequent and more detailed statement e.g. in the forth-

coming Defence White Paper, would require consideration by the Committee

as a whole,

The Committee

Invited the Defence Secretary and the Minister of Aviation

to be guided in the forthcoming discussions with the French authorities by the Prime Minister's summing up of their discussion.

Cabinet Office, S.W.1.

11th January 1966

-4-

CONFIDENTIAL

Page 20