CAB148-30-Defence and Oversea Policy Committee Meetings Relating to 1967 Disturbances-1967 — Page 286

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In discussion it was argued that the problems which had arisen on the development of the Spey engine for the Phanton should not be over-stressed and that they need not affect the engine design reputation of Rolls Royce; the development of a re-heat system for a supersonic engine was recognised as a very difficult task and other engine designers had encountered similar problems. What would

be important would be the speed and extent of the firm's success in overcoming their difficulties. As regards the Ferranti navigation/

attack system, it was likely that the difficulties being experienced

on the Spoy/Phantom would become known publicly; it was important

therefore to establish quickly the facts about the contractual

arrangements between the airframe contractors and Ferranti and what

if anything had been done to press for the inclusion in these of

penalty clauses. We should then consider whether it would be desirable to make public the facts of the situation on the Spey/Phanton, covering both the engine and the navigation/attack system. In the meantime

pressure should continue to be exerted on both Rolls Royce and Ferranti to regain lost ground on their programmes.

The Committee

(1)

B

Took note of the statements by the Defence Secretary

and the Ministry of Technology.

(2) Invited the Minister of Technology, in consultation with

the Defence Secretary, to investigate and report to the Committee on the contractual position between McDonnell and Ferranti for the navigation/attack system for the Spey/Phantom.

(3) Invited the Minister of Technology, in consultation with

the Chancellor of the Exchequer and the Defence Secretary, to consider and report to the Committee on the possibility of making public the facts of the Spey/Phantom situation as regards both the engine and the navigation/attack system.

Cabinet Office, S.W.l.

11th October 1967

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