1974 was a year of political turmoil. The economy was in crisis with a 3 day week and raging inflation. There were two General elections but none of the parties could secure a Commons majority. Labour's Harold Wilson, took power twice but only thanks to a series of fragile coaltions.
Against this background, the Scottish National Party was riding high with a campaign claiming, "It's Our Oil" - arguing that an independent Scotland would be economically viable if it had its true share of the riches about to come on line from the rigs off its coast. In both general elections, the SNP, took seats from Labour and dramatically increased their share of the vote.
The Treasury papers, uncovered by "Document", reveal how worried officials were about the fate of the oil. In order to appease Nationalist sentiment, the Labour government was promising moves towards devolution but senior civil servants were alarmed that, if people in Scotland learned the true worth of the North Sea reserves, this might prove the first step on a slippery slope towards full independence. Britain 's Financial credibility was at stake and the officials did their best to persuade ministers to avoid engaging in public arguments about the economic viability of Scottish independence, while putting the breaks on their plans for a Scottish Assembly. The papers make clear the Treasury was in no doubt that the SNPs sums were correct - if anything, the Nationalists had underestimated how wealthy Scotland would be if they went it alone.
With contributions from the former Labour Chancellor, Lord Healey, Professor Sir Neil MacCormick of the SNP and the political biographer Edward Pearce.
