U.K. AIRCRAFT INDUSTRY ‘U.S. Take-over Discussed’

Press, Volume CVII, Issue 31448, 15 August 1967, Page 15

U.K. AIRCRAFT INDUSTRY ‘U.S. Take-over Discussed’

(N.Z. Press Association—Copyright)

LONDON, August 13.

The possibility of allowing American air firms to take over the British aircraft industry is being seriously discussed in Government circles and in the industry itself, Chapman Pincher reported in the “Daily Express.”

Giant corporations like Boeing, Lockheed and General Dynamics would be encouraged to buy a controlling interest—just as American concerns have already taken over most of the British motor industry, Pincher said.

The British Aircraft Corporation, Hawker Siddeley Aviation and Shorts would then become mainly subcontractors, making parts and occasionally complete planes to United States designs. But any take-over would not affect the Rolls-Royce-Bristol Siddeley combine, which might benefit by having more assured markets for its aircraft engines.

Pincher said it was believed that some British companies which, like Vickers, had diversified their interests, would welcome a sale of their aircraft and space departments.

The United States firms would benefit by eliminating British competition and securing even greater penetration of European markets. In an editorial the -Daily Express” said more than 50 per cent of Britain’s car industry was American owned.

and nearly 50 per cent of the computer industry wks American-owned.

“If planes and rockets follow cars and computers Britain will cease to be an independent technological force,” the newspaper said. “In fact, if not in name, we shall be the 51st State of the United States.”