(c) crown copyright
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SI
T H I S DOCUMENT I S T H E PROPERTY O F H I S BRITANNIC MAJESTY'S GOVERNMENT
Printed
for the War Cabinet.
August
1941.
Copy No.
SECRET.
43
W.M. (41)
8 1 s t Conclusions.
TO B E
KEPT
LOCK
U N D E R
A N D
KEY.
I t is requested t h a t special c a r e m a y be t a k e n to
ensure the secrecy of t h i s d o c u m e n t .
W A R C A B I N E T 81 ( 4 1 ) .
CONCL
USIONS
of a Meeting of the War Cabinet held at 10, Downing
S.W. 1, on Tuesday, August 12, 1941, at 10 A.M.
Street,
Present:
T h e R i g h t H o n . C. R. A T T L E E , M . P . , L o r d P r i v y Seal (in the
Chair).
The Right Hon. Sir JOHN ANDERSON,
M . P . , L o r d P r e s i d e n t of t h e Council.
The Right Hon. ANTHONY EDEN, M . P . , S e c r e t a r y of S t a t e for
Foreign Affairs. T h e R i g h t H o n . A . G-REENWOon, M . P . ,
Minister without Portfolio.
The Right Hon. Sir KINGSLEY WOOD, M . P . , Chancellor of t h e E x c h e q u e r . The Right Hon. ERNEST BEVIN, M.P.,
M i n i s t e r of L a b o u r a n d N a t i o n a l
Service.
T h e following w e r e also p r e s e n t :
The
Right
Hon.
P.
FRASER,
M.P.,
P r i m e M i n i s t e r of N e w Z e a l a n d .
T h e R i g h t H o n . V I S C O U N T CRANBORNE,
S e c r e t a r y of S t a t e for D o m i n i o n
Affairs.
The Right Hon. LORD MOYNE,
The R i g h t Hon. A . V . ALEXANDER,
M . P . , F i r s t L o r d of t h e A d m i r a l t y
T h e R i g h t H o n . H . D. M A R G E S S O N ,
M . P . , S e c r e t a r y of S t a t e for W a r .
The
The R i g h t H o n . S i r ANDREW DUNCAN,
M . P . , P r e s i d e n t of t h e B o a r d of
Trade.
Right
SINCLAIR,
Hon.
Bt.,
Sir
M.P.,
ARCHIBALD
Secretary
of
S t a t e for A i r .
The R i g h t H o n . BRENDAN BRACKEN,
M . P . , M i n i s t e r of I n f o r m a t i o n .
Secre-
t a r y of S t a t e for t h e Colonies.
Sir
ORME
SARGENT,
Deputy
Under-
Secretary of S t a t e , F o r e i g n Office.
Secretariat.
Sir EDWARD BRIDGES.
Mr. W . D . WILKINSON.
W A R C A B I N E T 81 (41).
CONTENTS.
Minute
No.
1
Subject.
Discussions between the Prime Minister and President
....
....
Roosevelt
....
....
....
....
Page
205
Proposed Draft Declaration.
Portugal.
The Far East.
2
206
Holidays
Civil Service Leave.
3
T h e P r i m e M i n i s t e r of N e w Z e a l a n d
T h e P r i m e M i n i s t e r of C a n a d a
....
....
207
207
Discussions
between the
Prime Minister
and President
Roosevelt.
1. T h e W a r C a b i n e t r e s u m e d discussion of t h e t e r m s of the
p r o p o s e d J o i n t D e c l a r a t i o n , a n d h a d before t h e m a f u r t h e r telegram
f r o m the P r i m e M i n i s t e r ( T u d o r N o . 2 0 ) f T h i s t e l e g r a m , w h i c h
h a d crossed t e l e g r a m Abbey No. -31, s a i d t h a t the P r e s i d e n t h a d
accepted t h e a m e n d m e n t s proposed by t h e P r i m e M i n i s t e r in his
Proposed Draft t e l e g r a m T u d o r N o . 15.
Declaration.
Discussion t u r n e d m a i n l y on t h e t e r m s of p a r a g r a p h 4 of the
d
r
a
f
t
D e c l a r a t i o n . T h e W a r C a b i n e t h a d before t h e m three t e x t s
(Previous
of t h i s p a r a g r a p h :—
Reference:
W.M. (41) 80th
Conclusions.)
(a) T h e t e x t in T u d o r No. 16, a s a m e n d e d i n T u d o r No. 15.
(b) T h e t e x t in A b b e y No. 31 d r a f t e d by t h e W a r C a b i n e t
e a r l i e r t h a t m o r n i n g a t a M e e t i n g a t which, the
Chancellor of the E x c h e q u e r a n d t h e P r e s i d e n t of the
B o a r d of T r a d e h a d n o t been p r e s e n t .
(c) T h e following t e x t p u t f o r w a r d by t h e Chancellor of the
Exchequer:—
' ' F o u r t h . — T h e y w i l l endeavour, w i t h due
r e s p e c t to t h e i r e x i s t i n g obligations (or engage­
ments), t o f u r t h e r , w i t h i n t h e l i m i t s of t h e i r
g o v e r n i n g economic c o n d i t i o n s , t h e progressive
attainment
of
a
well-balanced
international
economy, w h i c h w o u l d r e n d e r u n n e c e s s a r y policies
of d i s c r i m i n a t i o n a n d o t h e r i m p e d i m e n t s to the
freedom of t r a d e . "
The Chancellor
of the Exchequer
r e f e r r e d to the w o r d s
" w i t h o u t d i s c r i m i n a t i o n " in t h e P r e s i d e n t s d r a f t .
When
M r . K e y n e s h a d been i n t h e U n i t e d S t a t e s he h a d h a d t w o or t h r e e
i n t e r v i e w s w i t h P r e s i d e n t Roosevelt, w h e n they h a d discussed
s t a t e m e n t s on " c o n s i d e r a t i o n " i n r e s p e c t of s u p p l i e s t o us u n d e r
the Lease-Lend Act.
I t a p p e a r e d t h a t t h e U n i t e d States
a u t h o r i t i e s h a d n o t p r o p o s e d to a s k for a n y p a y m e n t for articles
p a s s i n g to us u n d e r t h e L e a s e - L e n d A c t . T h i s , however, h a d been
coupled w i t h a p r o v i s i o n " a g a i n s t d i s c r i m i n a t i o n i n t h e U n i t e d
S t a t e s of A m e r i c a or t h e U n i t e d K i n g d o m a g a i n s t t h e i m p o r t a t i o n
of a n y p r o d u c e o r i g i n a t i n g in t h e o t h e r c o u n t r y . "
T h e Chancellor r e f e r r e d to c o n v e r s a t i o n s w h i c h M r . Acheson
h a d h a d w i t h M r , K e y n e s . T h e f o r m e r h a d e x p r e s s e d a personal
v i e w t h a t a c o n t i n u a n c e of I m p e r i a l P r e f e r e n c e w o u l d be incom­
p a t i b l e w i t h a n u n d e r t a k i n g of t h i s k i n d . M r . A c h e s o n h a d s a i d
t h a t i t w a s n o t clear w h e t h e r t h e u n d e r t a k i n g w o u l d r u l e out i m p o r t
a n d e x c h a n g e control. H e h a d t h o u g h t t h a t these technical m a t t e r s
w e r e probably n o t p r e s e n t to P r e s i d e n t R o o s e v e l f s m i n d .
Since M r . K e y n e s ' s r e t u r n t o t h i s c o u n t r y he (the Chancellor
of t h e E x c h e q u e r ) h a d h a d d i s c u s s i o n s w i t h a n u m b e r of t h e
M i n i s t e r s concerned. H e r e a d to t h e W a r C a b i n e t a n e x t r a c t from
a letter from t h e S e c r e t a r y of S t a t e for I n d i a , w h i c h stressed the
i m p o r t a n c e of n o t p e r m i t t i n g a n y d o u b t a s to o u r r i g h t a n d deter­
m i n a t i o n to p u r s u e a policy of i n t e r - I m p e r i a l preference.
The Secretary
of State for Foreign Affairs
t h o u g h t t h a t the
g r e a t e s t d a n g e r of all w a s t h e A m e r i c a n desire t o s t o p t h i s c o u n t r y
m a i n t a i n i n g e x c h a n g e control a f t e r t h e e n d of t h e w a r .
T h e W a r C a b i n e t r e a c h e d t h e following Conclusion :—
A reply s h o u l d be sent t o t h e P r i m e M i n i s t e r s t a t i n g t h a t
t h e W a r C a b i n e t p r e f e r r e d t h e a l t e r n a t i v e d r a f t of p a r a ­
g r a p h 4 set o u t i n A b b e y No. 3 1 , a n d g i v i n g t h e i r reasons.
If,
however, t h e P r i m e M i n i s t e r w o u l d find g r e a t difficulty in
o b t a i n i n g a c c e p t a n c e of t h i s r e v i s e d d r a f t , the W a r C a b i n e t
w e r e p r e p a r e d to accept t h e P r e s i d e n t ' ^ d r a f t , subject to t h e
P r i m e M i n i s t e r s amendments.
B 2
ttjf
6
.f. 0*)
toj.
tu
Great importance was attached to the new p a r a g r a p h ,
d e a l i n g w i t h social s e c u r i t y , for i n s e r t i o n between p a r a g r a p h s
4 a n d 5.
T h e s e views a r e embodied i n t e l e g r a m A b b e y N o . 35?*
Portugal.
T h e W a r C a b i n e t h a d before t h e m t e l e g r a m T u d o r No. 18/*"
(Previous
Eeference:
W.M. (41) 77th
Conclusions,
Minute 4.)
The Far East.
(Previous
Eeference:
W.M. (41) 79th
Conclusions,
Minute 2.)
Holidays.
Civil Service
Leave.
(Previous
Eeference:
W.M. (41) 78th
Conclusions,
Minute 5.)
'X'*
The Foreign Secretary
s a i d t h a t , w h i l e he w a s n o t a l t o g e t h e r
h a p p y a b o u t t h i s p r o p o s a l , h e t h o u g h t n o a c t i o n w a s called for by
t h e W a r C a b i n e t i n r e g a r d t o it.
T h e W a r C a b i n e t took n o t e of t h i s s t a t e m e n t .
T h e W a r C a b i n e t h a d before t h e m t e l e g r a m T u d o r N o . 19f"
t o g e t h e r w i t h a t e l e g r a m from M r . M e n z i e s (No. 553), r e p e a t e d to
t h e P r i m e M i n i s t e r as A b b e y No. 3 4 . '
T h e W a r C a b i n e t e x p r e s s e d c o r d i a l a p p r o v a l of t h e a d v a n c e
m a r k e d by t h i s t e l e g r a m . T h e y a g r e e d —
(a) T h a t t h e s u b s t a n c e of t h e first f o u r p a r a g r a p h s s h o u l d be
sent t o t h e D o m i n i o n P r i m e M i n i s t e r s .
(&) T h a t no action should be t a k e n a t p r e s e n t t o i n f o r m t h e
D u t c h or Soviet G o v e r n m e n t s ,
(c) T h a t t h e P r i m e M i n i s t e r s h o u l d be i n f o r m e d i n t h e above
sense.
2. The Chancellor of the Exchequer
r e f e r r e d to t h e difficulty
w h i c h h a d been m e n t i o n e d a t t h e m e e t i n g r e f e r r e d to i n t h e m a r g i n ,
t h a t , if a second w e e k ' s leave w a s g r a n t e d t o C i v i l S e r v a n t s
employed in m u n i t i o n factories, i n c l u d i n g , for example, c e r t a i n
i n s p e c t o r i a l staffs, t h i s m i g h t give r i s e t o difficulties in r e s p e c t of
t h e w o r k - p e o p l e a n d staffs employed i n s u c h factories. H e h a d been
i n c o n s u l t a t i o n w i t h t h e S u p p l y M i n i s t e r s . T h e M i n i s t e r of S u p p l y
h a d seen objection to g r a n t i n g a second w e e k ' s leave t o these C i v i l
Service staffs; none of t h e o t h e r S u p p l y M i n i s t e r s a n t i c i p a t e d
difficulty in d e a l i n g w i t h t h i s m a t t e r .
T h e Chancellor s a i d t h a t the T r e a s u r y p r o p o s e d t o d e a l w i t h
t h e p o i n t i n a c i r c u l a r w h i c h h a d been p r e p a r e d for issue t o D e p a r t ­
m e n t s i n t h e following w a y :—
" T h e p o s i t i o n of n o n - i n d u s t r i a l C i v i l S e r v a n t s employed i n
m u n i t i o n , & c , factories w i l l r e q u i r e special c o n s i d e r a t i o n by t h e
D e p a r t m e n t s concerned. G e n e r a l l y s p e a k i n g , n o n - i n d u s t r i a l staff
employed i n i n d u s t r y should n o t be g i v e n leave in excess of t h a t
given to t h e n o n - i n d u s t r i a l staff i n p r i v a t e e m p l o y m e n t i n t h e s a m e
e s t a b l i s h m e n t . I n t h e case of G o v e r n m e n t e s t a b l i s h m e n t s w h i c h
a r e p r i m a r i l y i n d u s t r i a l , t h e f u r t h e r w e e k w i l l be g i v e n w i t h i n t h e
d i s c r e t i o n of t h e D e p a r t m e n t . "
T h e W a r C a b i n e t a g r e e d t h a t t h i s difficulty s h o u l d b e
dealt with as proposed a t " X . "
Ao3*
The Prime
Minister of
New Zealand.
The Prime
Minister of
Canada.
(Previous
Eef erence:
W.M. (41) 58th
Conclusions,
Minute 5.)
3. The Lord Privy Seal s a i d t h a t M r . F r a s e r w o u l d be l e a v i n g
t h i s c o u n t r y o n T h u r s d a y , the 1 4 t h A u g u s t . H e w a s g o i n g h o m e by
w a y of C a n a d a , w h e r e he hoped to m e e t M r . M a c k e n z i e K i n g .
M r . M a c k e n z i e K i n g himself w a s l e a v i n g C a n a d a on S a t u r d a y , t h e
1 6 t h A u g u s t , a r r i v i n g in t h i s c o u n t r y t h e following d a y , S u n d a y ,
t h e 17th A u g u s t .
H e (the L o r d P r i v y Seal) would meet
M r . M a c k e n z i e K i n g on h i s a r r i v a l in L o n d o n a n d welcome h i m on
behalf of t h e C a b i n e t .
M r . M a c k e n z i e K i n g w o u l d a t t e n d m e e t i n g s of t h e W a r C a b i n e t
w h i l e h e w a s in t h i s country. I t w a s e x p e c t e d t h a t h e w o u l d be
p r e s e n t a t t h e m e e t i n g on M o n d a y , t h e 18th A u g u s t .
The W a r C a b i n e t ­
(i) T o o k note of t h e above a r r a n g e m e n t s .
(ii) I n v i t e d t h e S e c r e t a r y of S t a t e for D o m i n i o n Affairs to
m a k e a r r a n g e m e n t s for a W a r C a b i n e t L u n c h to
M r . M a c k e n z i e K i n g on M o n d a y , t h e 1 8 t h A u g u s t .
Great
George
August
Street, S.W.
12, 1941. 1,