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Written Answers

Volume 598: debated on Wednesday 21 January 1959

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Written Answers To Questions

Wednesday, 21st January, 1959

Telephone Service

Repairs (Hotel, London)

2.

asked the Postmaster-General why it has taken so long for Post Office engineers to attend to the faulty telephone service at the Harlingford Hotel, W.C.1; and whether he will make a statement.

The work was completed on 19th December. Temporary repairs were made to faults that had developed on the old installation. But a new telephone extension system was needed, and because of accumulation of work in the area, this unfortunately took longer to provide than we like in such cases.

Installations, Basildon

asked the Postmaster-General whether he is aware of the growth of demand for telephones in Basildon new town, due to the rapidly expanding population; and what steps he proposes to take to satisfy the demand pending the opening of the new automatic telephone exchange.

Yes. 270 new telephones were provided in the new town last year, and it is hoped to double that number in the next twelve months. New cables are needed, and these are being provided progressively in conjunction with new road constructions.

Faults (Weekend Repairs)

asked the Postmaster-General whether he will consider making it possible for telephones which, for some reason, go out of order during weekends and which the operators state cannot now be put right during that time except on emergency calls, to be repaired immediately since, if the telephone is out of order, no one can be informed of an emergency need.

Our present arrangements, which I believe give general satisfaction, should enable most faults reported on Saturday mornings to be put right the same day. Faults on certain lines serving, for example, hospitals, doctors and public services, are attended to at any time during the weekend, and this applies also to other lines when the circumstances are exceptional.If what my hon. Friend has been told by our operators is not in accord with this, and if he will let me have details, I shall be glad to make inquiry.

Roads

Wintry Conditions

41.

asked the Minister of Transport and Civil Aviation if he is aware of the danger and inconvenience caused to motorists and to motor coach and omnibus owners, drivers, passengers and the general public owing to the lack of co-ordination, uniformity of practice and timing by local authorities throughout Scotland and England in the way they in frosty and snowy weather spread or refrain from spreading sand on public roads, especially in the early morning; and if he will take steps to ensure that in these matters co-ordination is attained and greater regard is had to public safety and convenience.

My information shows that the arrangements for dealing with roads made slippery by wintry conditions are generally satisfactory in the recent cold weather.Our divisional road engineers secure a reasonable standard of co-ordination and uniformity, particularly on trunk roads, but local control of sanding and salting operations is essential because conditions vary widely both in a short space of time and over quite small areas.The responsible highway authorities are well aware of the importance of rapid and efficient sanding and, generally, their equipment is reasonably adequate for the purpose. I do not think, therefore, that further action is necessary.My right hon. Friend agrees that the position is broadly the same in Scotland.

Accidents

48.

asked the Minister of Transport and Civil Aviation what is the incidence of serious road accidents to drivers of bubble-cars in comparison with those to drivers of other road vehicles.

The reports obtained from the police do not distinguish between bubble-cars and other small three or four-wheeled passenger vehicles involved in road accidents. I regret, therefore, that the information for which the hon. Member asks is not available.

London Airport (Proposed Viaduct)

asked the Minister of Transport and Civil Aviation in view of the fact that the proposed dual two-lane carriageways emerging from London Airport will only just be large enough to carry the airport traffic and that no access is proposed between the eastern end of the proposed dual three-lane section of the South Wales Radial Motorway and the Great West Road, how it is intended that the proposed dual two-lane viaduct is to carry both the airport traffic and other traffic on the motorway joining it west of the airport link.

The volume of traffic that the proposed viaduct can take will automatically be increased by the necessary reduction in speed of traffic on this section of the motorway near London. Moreover, not all the traffic emerging from the airport will make for London and use the viaduct. For these reasons the capacity of the viaduct is expected to be fully adequate for the traffic wishing to use it.

Railways

Barking Station (Reconstruction)

42.

asked the Minister of Transport and Civil Aviation what progress has been made to date under the capital investment programme with the reconstruction of Barking station and approaches; and when the work is expected to he completed.

The British Transport Commission inform me that the main flyover has been completed. Considerable progress has been made on the London Transport fly-over and under-pass, and on the alterations to the running lines and the construction of a subway between the station platforms; these works should be finished by December.A scheme for the reconstruction of the station buildings has just been authorised by the Commission. Work is planned to start this year probably in August and will take about two years to complete.

District Line (Service Changes)

43.

asked the Minister of Transport and Civil Aviation if he will request the London Transport Users' Consultative Committee to inquire into the arrangements made to inform passengers on the District Line of any changes taking place in the operation of trains.

I have not felt is necessary to refer these matters to the Consultative Committee at this stage. They have been well ventilated in the Press and it is clear that the London Transport Executive are taking action to meet them. It is also open to passengers to ask the Committee to inquire into this matter. However, in the interests of the London travelling public, I have asked the London Transport Executive to keep me informed of what they are doing to meet these complaints.

Shipping

Flags Of Convenience

45.

asked the Minister of Transport and Civil Aviation how many of the vessels whose registration has been cancelled by the Costa Rican Government as flags of convenience have applied for registration under the British flag.

Transport

Policy

46.

asked the Minister of Transport and Civil Aviation what formal representations he has received from Members of Parliament in regard to future transport policy and, particularly, relating to proposals for disposal of ancillary undertakings of the British Transport Commission during the recent Recess; and what action he has taken in regard thereto.

Hon. Members on both sides of the House often make suggestions to me about future transport policy to which I give careful consideration. I have received no representations during the Recess on the subjects referred to.

Civil Aviation

Icao Conference (Navigational Aids)

47.

asked the Minister of Transport and Civil Aviation what instructions he is giving to the British delegates to the forthcoming International Civil Aviation Organisation Conference in Montreal with special reference to the adoption of British navigational aids.

The United Kingdom delegation will be instructed to advocate strongly the adoption of the Decca Navigator System as the only available short-range navigational aid which effectively meets the requirement of safe and efficient use of air space in areas of high traffic density.

Ministry Of Defence

Radar Station, North Of Scotland

50.

asked the Minister of Defence whether permission has yet been granted to the United States Government to erect a missile-warning radar station in Scotland; what part of the cost will be borne by the United Kingdom; in what way the station will help in the defence of the United Kingdom; and if he will make a statement.

The position is still as stated in the reply I gave to the hon. Member for the Western Isles (Mr. M. MacMillan) on 19th November.

Low-Level Tactical Bomber

52.

asked the Minister of Defence to what extent the decision of Her Majesty's Government to build the T.S.R.2 aircraft constitutes a major change of defence policy.

There has been no change of policy whatsoever. The Government's intention to provide the Air Force with a low-level tactical bomber to replace the Canberra was made clear in paragraph 51 of the Defence White Paper last year.

Disarmament Discussions

53 and 54.

asked the Secretary of State for Foreign Affairs (1) on how many occasions since 1945 Her Majesty's Government have discussed disarmament with the Russian Government; and what was the duration of each such discussion:(2) on how many occasions since 1945 Her Majesty's Government have discussed with the Russians the transfer of armaments to a supra-national authority able to prevent rearmament; and what was the duration of each such discussion.

Since 1945 Her Majesty's Government have taken part in over twelve hundred separate meetings with the Soviet Government on disarmament. This figure includes meetings both within the United Nations Organisation and outside it. Information as to the exact duration of these discussions is not available.Apart from the Baruch Plan, I cannot recall that the question of the transfer of armaments to a supra-national authority has been raised by Her Majesty's Government in these discussions.

Germany (Former Nazi Judges And Prosecutors)

55.

asked the Secretary of State for Foreign Affairs, in view of the fact that the Federal and Laender ministers of justice are to set up a commission of inquiry into the charges and allegations that former nazi judges and prosecutors are being re-employed in their former positions, and that those who are being accused are to be responsible for setting up the commission of inquiry, whether he will request the Bonn Government to appoint an independent commission of inquiry into this matter, consisting of persons who were in no way employed as nazi judges or prosecutors.

No. I am confident that the Federal Government will ensure that all allegations that are made in good faith will be adequately investigated. It must, however, be left to the Federal Government to decide how this investigation should be carried out.

Cuba

New Government (Recognition)

57.

asked the Secretary of State for Foreign Affairs if Her Majesty's Government has now recognised the new Government of Cuba.

Yes. Her Majesty's Government recognised the new Cuban Government on 7th January.

Official Despatches

61.

asked the Secretary of State for Foreign Affairs if he will publish as a White Paper the official despatches received from Cuba during the period of the recent revolution.

Sale Of Arms

62.

asked the Secretary of State for Foreign Affairs on what dates Her Majesty's Government last authorised the sale to the Cuban Government of Sea Fury aircraft and of the rockets which left the United Kingdom on 3rd November, 1958; and what information Her Majesty's Government had on those dates about the progress of civil strife in Cuba.

Approval was originally given at the beginning of May, 1958, for the sale of arms excluding bombers or bombs. Negotiations between the Cuban authorities and the aircraft manufacturers culminated in a proposal for the purchase of seventeen Sea Furies which was approved at the beginning of July. The contract was signed in August.As regards the second part of the Question, the situation in May was that Senor Castro apparently controlled a limited area in the mountainous part of the eastern provinces of Cuba. By the early autumn there were guerilla activities elsewhere in the island. On 19th November my right hon. and learned Friend said in the House that the situation had rather changed since the orders had been given and that certainly any future requests of this sort would have to be examined in the light of the situation at the time.

Middle East

Mrs Doran (Murder)

58.

asked the Secretary of State for Foreign Affairs what is the result of the protest made by Her Majesty's Government at the murder of Mrs. Doran, wife of the British Air Attaché in Tel-Aviv; and what further action is to be taken.

A note was handed to the Government of the United Arab Republic on behalf of Her Majesty's Government by the Swiss Embassy in Cairo on 18th December. The matter is still being pursued through the Protecting Power.

Mixed Armistice Commission

59 and 60.

asked the Secretary of State for Foreign Affairs (1) what action has been taken by the Mixed Armistice Commission and at the United Nations Organisation to prevent breaches of the Armistice Agreement between Israel and her Arab neighbours, such as that which resulted in the murder of Mrs. Doran, wife of the British Air Attaché in Tel-Aviv;(2) what action was taken by the Mixed Armistice Commission and at the United Nations Organisation when Israeli settlements were shelled from across the Syrian border.

The Report of the Chief of Staff of the Truce Supervision Organisation to the Secretary-General of the United Nations, dated 8th December, 1958, has been placed in the Library of the House.The Syrian and Israel complaints were discussed by the Security Council on 15th December, 1958; a record of the debate on that occasion has also been placed in the Library. The Secretary-General of the United Nations informed the Security Council that during his forthcoming visit to the Middle East he intended to take up with the Governments concerned the obstacles to the proper functioning of the Mixed Armistice Commissions. Mr. Hammarskjold has not yet made a report on his discussions.

United Nations Economic Commission For Africa

63.

asked the Secretary of State for Foreign Affairs if he will make a statement on the recent meeting in Addis Ababa of the United Nations Economic Commission for Africa, with particular reference to the form and amount of economic aid that can be expected in 1959 by British Territories in the African Continent.

The United Nations Economic Commission for Africa held its First Session in Addis Ababa from 29th December to 6th January. I led the United Kingdom Delegation. Most of the British Territories in Africa were separately represented in their capacity as Associate Members of the Commission, and made a real contribution to the discussions. The main business at this inaugural meeting was to settle questions of procedure and organisation and to decide the Commission's initial work programme. The meeting got off to a good start and I believe the programme it adopted for 1959 is a sound and constructive one. I have every hope that the Commission will render valuable services to the Governments in Africa in their efforts to promote economic development.The Commission will not be a source of funds for development. Its functions are essentially consultative and advisory. It will undertake studies of the possibilities of closer co-operation in economic matters in Africa, for instance, and in the field of statistics, and a variety of other subjects; it may also give advice where requested in the formulation of development plans.

Iceland (Fishing Limit)

64.

asked the Secretary of State for Foreign Affairs if British trawlers are now fishing within the 12-mile limit imposed unilaterally by the Icelandic Government which need to be protected by ships of war; and, in view of the chaos which is likely to arise out of unilateral action in spheres other than fishing in which multilateral action and international agreement is necessary, if he will now press for an early decision by the United Nations Organisation.

The answer to the first part of the Question is, Yes: havens protected by ships of the Royal Navy have been established within the 12-mile fishing limit claimed unilaterally by Iceland.With regard to the second part of the Question, Her Majesty's Government have consistently maintained that there is a need for international agreement concerning the Law of the Sea. They hope that an agreement on the matters still outstanding—the breadth of the territorial sea and fishing limits—may be reached at the Second Conference on the Law of the Sea which, under a Resolution adopted by the United Nations General Assembly last month, is to be convened in March or April, 1960. They regret very much that it has not proved possible to have this conference earlier.

Arms (Sale To Foreign Powers)

65.

asked the Secretary of State for Foreign Affairs whether he will enunciate the principles which govern the supply of British arms to foreign Powers.

All applications for the supply of arms abroad are examined by the Government Departments concerned in the light of the political, strategic and economic implications of each individual case. Subject to these factors, the general principles followed are that sales are authorised to recognised and stable Governments which are in normal diplomatic relations with Her Majesty's Government. Sales are not authorised where the arms are, in the opinion of Her Majesty's Government, likely to be re-exported; or to be used for aggression against or subversion of other countries; or where such sales would have a generally prejudicial effect upon the stability of the area as a whole.

Passports

asked the Secretary of State for Foreign Affairs whether he will consider abolishing passports altogether, or simplify the arrangements with regard to the issuing of passports and the passport itself.

I would refer my hon. Friend to the reply given to him by my right hon. Friend the Minister of State on 17th December, 1956.It is still the position that British subjects travelling abroad need to be able to establish readily their identity and nationality both to facilitate their passage through the various frontier controls and in the event of their requiring the assistance and protection of their own Government. It is the view of Her Majesty's Government that the passport is the most satisfactory document for these purposes.Every effort has been made to simplify both the passport and the arrangements for its issue, but some safeguards are essential in order to ensure that passports are granted only to people entitled to hold them.

Employment

Newcastle-Under-Lyme

68.

asked the Minister of Labour what is the latest figure of unemployment in the United Kingdom and in Newcastle-under-Lyme, respectively; and what proportions of the national and local working populations, respectively, these figures represent.

At 12th January there were 1,490 unemployed persons on the registers of the Newcastle-under-Lyme Employment Exchange and Youth Employment Office, representing 5·7 per cent. of the total number of employees in the area. Figures for Great Britain for 12th January are not yet available. At 8th December, 1958, the total number registered as unemployed in Great Britain was 531,727 or 2·4 per cent. of the total number of employees.

Temporary Office, Delabole

69.

asked the Minister of Labour when he proposes to open a temporary employment office at Delabole.

I am opening a temporary office at Delabole on Friday, 23rd January.

Aberdeen

70.

asked the Minister of Labour if he is aware of the increase in unemployment during December and January in the building and other trades in the City of Aberdeen; and what steps he is taking to remedy this state of affairs.

There was a considerable increase in the number of workers registered as unemployed at the Aberdeen Employment Exchange between 8th December and 12th January. This increase was due to severe weather and other seasonal causes. My local offices are making every effort to find suitable alternative work for those registered with them.

Shipbuilding And Ship-Repair Yards (Regulations)

71.

asked the Minister of Labour when the new regulations concerning work in shipbuilding and ship-repair yards will be published.

As I have already informed the hon. Member, I hope to send the revised draft for printing by the end of this month. The statutory draft will be published as soon thereafter as possible but I am not able to give a precise date.

Wednesbury

73.

asked the Minister of Labour what total number unemployed and on short time, respectively, are registered at the employment exchange in Wednesbury on the latest convenient date; and what was the comparative figure for 1958.

524 persons were registered as unemployed on 12th January, 1959, compared with 165 on 18th January, 1958. Of these 182 and 13 respectively were registered as temporarily stopped. Statistics about short-time working are not available for individual employment exchange areas.

Willenhall

74.

asked the Minister of Labour what total number unemployed and on short time, respectively, are registered at the employment exchange in Willenhall on the latest convenient date; and what was the comparative figure for 1958.

392 persons were registered as unemployed on 12th January, 1959, compared with 117 on 18th January, 1958. Of these 113 and 4, respectively, were registered as temporarily stopped. Statistics about short-time working are not available for individual employment exchanges.

Lister V The Romford Ice And Cold Storage Co Ltd (Report)

asked the Minister of Labour if he has now received the Report of the Inter-Departmental Committee which he set up to study the implications of the judgments in the case of Lister versus The Romford Ice and Cold Storage Company Limited as they might affect the relations between employers and workers; and if he will make a statement.

The Report of the Inter-Departmental Committee is being published today, and I have arranged for copies to be placed in the Library.The Report points out that the House of Lords decision in the case of Lister

versus The Romford Ice and Cold Storage Company Limited has confirmed that, under the law as it stands, an employee may be held liable by his employer, or his employer's insurers, for damages which either has had to pay to third parties as a result of the employee's negligence. The Committee point out that the decision shows that employers and their insurers have rights which, if unreasonably exploited, would have a most harmful effect upon industrial relations. The Committee are satisfied, however, that employers and insurers are unlikely to exploit their rights against employees and draw attention to certain voluntary action taken by employers and insurers which in their view further reduces this risk. The Committee did not think, therefore, that the decision has created an immediate or practical problem and in view of the serious objections which they consider would arise from attempting to meet the problem by legislation, they did not recommend such a course at the present time. The Government welcome the voluntary action which has already been taken by insurers in this matter. They accept the conclusion of the Committee and do not propose, therefore, to take any further action in this matter at present.

National Service

Nuclear Engineering Research Teams

72.

asked the Minister of Labour whether he will review the liability to National Service of non-graduate members of nuclear engineering research teams and of others doing work of national importance, in view of the information given to him by the hon. Member for Newcastle-upon-Tyne, East.

No. I have no power to exempt any man from his liability under the National Service Acts. Science and engineering graduates employed on certain categories of work of national importance are granted indefinite deferment of call-up, but I am not prepared to extend these arrangements to men with other qualifications.

Royal Navy

Nuclear-Powered Submarines (Floating Dock)

75 and 76.

asked the Parliamentary Secretary to the Admiralty (1) what progress is being made with the building plans for a dry dock for atomic submarine "Dreadnought", being built in Her Majesty's Dockyard, Portsmouth; and what it will cost;(2) when it is anticipated that work on the dry dock for atomic submarines will commence; and how many men will be employed on it.

I assume that my hon. and gallant Friend is referring to the floating dock of which the keel was laid at Portsmouth on 1st January. This dock will be capable of taking nuclear-powered submarines like "Dreadnought", as well as destroyers and frigates and some 500 men will be employed on it. A provisional estimate of the cost is of the order of £1¾ million.

British Army

Nuclear Attack (Assistance In Civil Defence)

78.

asked the Secretary of State for War what work has been undertaken by the Commander-in-Chief, United Kingdom Land Forces, since 1955 to ensure national survival in the event of a nuclear attack upon Great Britain by means of co-ordinated action between the military and civil defence authorities; and why he is now abolishing this post.

The Commander-in-Chief was responsible for planning land operations in defence of this country, including military assistance in civil defence. The initial work in this field has been completed and it is no longer necessary to employ a full-time Commander-in-Chief to keep the plans up to date. His responsibilities have therefore been taken over by the General Officer Commanding-in-Chief, Eastern Command. The present close co-operation between the Army and the civil defence authorities will continue.The work already done includes the establishment of a system of liaison between military and civil authorities; the start of training for commanders and staff in the Army's role under nuclear attack on the United Kingdom; the study, in conjunction with the civil authorities, of the assistance which can be given by the Army in civil defence; and the evolution of common techniques and procedures.

Land Disposal

79.

asked the Secretary of State for War what progress has been made in disposing of the 96,000 acres of land, the proposed disposal of which was announced on 11th March, 1957, and in disposing of the 50,000 acres, the disposal of which was announced on 6th March, 1958; and whether he is in a position to make a statement.

Of this combined programme about 53,000 acres have so far been released. Our rate of progress is governed by the rundown of the Army, the clearance of unexploded missiles and the legal and other processes of land disposal.

Organisation (Royal Armoured Corps)

asked the Secretary of State for War what regiments are to be affected by Phase II of the reduction of the Royal Armoured Corps.

The White Paper on the Future Organisation of the Army (Cmnd. 230) set out proposals for a reduction in the number of regiments. The reduction was to be made in two phases; Phase I for completion by 1959, and Phase II by 1962. The Royal Armoured Corps was to lose six regiments in Phase I and two more in Phase II. The details of this second reduction, which were not included in the White Paper, have now been settled and I have decided that it will be made by means of a reorganisation of the Household Cavalry and by the amalgamation of the 9th Queen's Royal Lancers and the 12th Royal Lancers.The Household Cavalry will be reorganised in a way which will save almost the equivalent of one regiment in numbers, while keeping both the Life Guards and the Royal Horse Guards in being. Both regiments will remain able to take their place in any field of operations when called upon to do so and at the same time continue to carry out their ceremonial duties.It is a matter of the deepest regret that the 9th Lancers and 12th Lancers should have to be amalgamated in this final phase of army reorganisation. The new regiment will be founded on their most distinguished histories.

Cyprus

80.

asked the Secretary of State for the Colonies, in view of the fact that military measures in Cyprus have not brought peace to that island, if he will now initiate an approach by non-violent methods.

As my right hon. Friend the Prime Minister said in his statement on 10th December, 1958, we have been striving and we shall continue to strive for a political settlement which will bring peace to the island.It is a travesty of Her Majesty's Government's sedulous pursuit of such a settlement to imply that they have hitherto been concerned only with seeking a military solution.

National Finance

United Kingdom And United Arab Republic (Financial Agreement)

82.

asked the Chancellor of the Exchequer if he will make a statement on the results of the visit of the President of the World Bank to Colonel Nasser to negotiate in regard to British interests in Egypt.

At the request of the United Kingdom Government and the Government of the United Arab Republic the President of the International Bank agreed to use his good offices towards a settlement of the financial matters in dispute between the two Governments. As a result an agreement was initialled in Cairo on 16th January and it is hoped that it will be formally signed quite soon. My right hon. Friend then intends to make a statement to the House and to publish the text of the agreement in the form of a White Paper.

Royal Air Force

Unidentified Flying Objects

asked the Secretary of State for Air what specific instructions have been sent to the commanders of Royal Air Force stations to collect reports from air crews having allegedly sighted unidentified flying objects; what inquiries have been held following such sightings; and to what extent there is collaboration between his Department and the respective departments in Canada and the United States of America on this problem.

R.A.F. units have standing instructions to report unusual flying objects when they cannot readily be explained. Reports which may have a bearing on air defence are investigated. No special collaboration with Canada or the United States is required.

Local Government

Building Byelaws, England And Wales

asked the Minister of housing and Local Government and Minister for Welsh Affairs whether he will consider replacing the present system of over 1,400 locally-made building byelaws in England and Wales by a single set of centrally-made building regulations, as is proposed for Scotland.

This could not be done without legislation amending the Public Health Acts. I agree, however, that it is right to consider whether or not such a change is desirable, and I propose to invite the views of the local authority associations, the London County Council, the interested professional bodies and the building industry, in order to inform myself fully before reaching a decision.

Ministry Of Power

Messrs Colvilles Ltd (Government Loan)

asked the Paymaster-General if he will state the terms upon which the Government have agreed to lend money to Messrs. Colvilles Ltd., for the construction of a strip mill in Scotland.

The following are the Heads of Agreement agreed between Her Majesty's Government and Messrs. Colvilles Ltd.:—1. Her Majesty's Government undertake to provide a loan to Colvilles Ltd., up to a maximum of £50 million for such developments at Ravenscraig and Gartcosh as may be approved by the Iron and Steel Board in connection with the manufacture of strip mill products.2. The loan may be drawn in eight tranches over the four years from 1st October, 1959, provided that only one tranche may be drawn in any one of eight consecutive periods of six months each, the first beginning on 1st October, 1959.3. After 1st October, 1962, the amount of the finance to be provided will be reconsidered with a view to reduction in the light of the cash needs of the Company judged by its actual and prospective financial position.4. The total actual advances will not in any event exceed the actual expenditure incurred by the Company in relation to these developments as certified by the Company's auditors.5. Interest on each tranche of the loan will accrue annually, from the date it is drawn, at a rate to be determined by the Treasury and such rate will apply throughout the currency of that tranche. In determining the rate of interest applicable to each tranche, the Treasury will have regard to the cost of borrowing by Her Majesty's Government at that date for a similar period.6. The payment of interest (hereinafter referred to as "the postponed interest") on each tranche of the loan which accrues up to the date on which the works commence hot strip production (the construction period) will be postponed and will be subject to interest at the same rate as that tranche and payable at the same date and on the same terms as that tranche.7. Interest from the date on which the works commence hot strip production (hereinafter referred to as "the current interest") will subject to the provisions of paragraph 8 below be payable annually on 30th September.8. The interest payable in respect of the first three years from the date on which the works commence hot strip production may at the Company's option, exercisable in respect of each year, be treated as postponed interest and be subject to the provisions of paragraph 6 above.9. Capital expenditure carried out at the Ravenscraig and Gartcosh works by any part of the Company's own organisation will be charged at cost.10. The Company will undertake at any time during the currency of the loan if so requested by Her Majesty's Government to create a second debenture in favour of Her Majesty's Government over those assets of the Company to which the existing first debentures are applicable.11. The Company will repay the loan with any unpaid interest to the date of payment not later than 1st October, 1978.12. The Company may at any time in advance of the due date for repayment repay at par any tranche of the

loan or any part of any tranche provided that:—

  • (i) one month's notice of such repayment is given;
  • (ii) the interest on the tranche concerned has been paid up to the date of repayment and other interest due on the loan has been paid up to the previous 30th September;
  • (iii) the tranches are repaid in the same order as they have been drawn.
  • 13. The Company will forthwith increase its borrowing powers as may be necessary for the purposes of this agreement and will not during the currency of the loan further increase its borrowing powers without the consent of Her Majesty's Government.

    14. The Company will not, without consent of Her Majesty's Government, borrow during the currency of the loan any money ranking in priority thereto except to the extent that the existing £6 million of 6 per cent. Convertible Debenture Stock has been converted or repaid.

    15. The Company will not during the currency of the loan carry out any other major development (except those which have already been approved by the Iron and Steel Board) or effect any major investment without the consent of Her Majesty's Government.

    The agreement is still subject to the shareholders and stockholders of Messrs. Colvilles Ltd. approving the necessary increase in the company's borrowing powers.