Document 7rNOpdkYJvwgzOmzZB2K62mV

3W/PM Toi DWH (2) Copyt ACM 3rd March, 1966 Place Cloth for InsuUHon of Pipework Nswalls Insulation h Chemical Co. Ltd. The attached report by Mr. Moraat cam* lata ny hands ( because of the reference to health haaards of asbestos. Mr. Edmonds has comnsanted that ho Is confident that Mr. Middleton la wrong that asbestos Is going to bo excluded from Admiralty specifications and 1 am sure Mr. Edmonds is right - at present. but the change could well come and has obviously been brought nearer by the recent health scares. One important factor which will obviously have some effect on tbs ultimata Admiralty decision will bo tbs final cost of the finished Jobs presumably this will bo worked out in duo course by Newells and it will not bo simplo. We shall need to keep in very close touch with Nowells' development work and costings, as they evolve. Another factor is, of course, fire resistones, and 1 should have thought the method described by Mr. Moraat would not be up to Navy standards. I am glad to see that the glass material is likely to be rove-based, as presumably this will suit us bottar than yarn-based. Now 1 want to say quite firmly and with all possible I emphasis that unless it can bo proved to my satisfaction that this glass insulation cloth business is not to ear advantage (and in that case 1 shall need to bo told who is going to make it pay and what better use for our Olass Fibre Investment there Is) 1 consider that our policy must bo to ensure that wo get and keep at least as large' a share of whatever glass insulation trade develops as we have had of the asbestos doth trade, and preferably larger. Z am not prepared - and 2 am certain T. fc N. is net either - to allow our turnover to drop because of technical change from asbestos to glass. The reasons for this view seem to mo so numerous and so self-evident that they are hardly worth expounding, but Just let me mention four- 1, T. k N. are predominant and right la tho heart of the heat-insulation trade end Newells are the largest and best-known contractor In this fieldi hence we have a big captive market and would be mad to let it slip away. 2. We need a glass textile outlet with some volume and 0104 weight la it, preferably controlled hy eeoaomie fectore which ere quite Independent e| the rather temperamental reinforced plaatica Induetry( ea which we here to rely toe much new. S. We are reluctant (probably rightly) to tacklo the conaumor geode Hold, la apito of ita large growth potential! hut we are ery experienced la wearing aad marketing heavy iaduetrlal fehrlca. 4. We ahall hare wearing ehed apace to apare at Bochrtale if aabeatoe lneulation cloth decllnee. ** Let ua he careful, therefore, to hare the right,(producta (including webbing or knitted fabrlca, if required) and the right productive capacity available at the right time. John Wad / U105