(c) crown copyright Catalogue Reference:CAB/23/82 Image Reference:0003 .PHIS DOCUMENT I S THE PROPERTY OF HIS BRITANNIC MAJESTY'S GOVERNMENT^ RET. COPY R E V I S E- C A B I N E T Meeting of Street, 55 ( 5 5 ) . t h e C a b i n e t t o he h e l d a t N o . 1 0 , Downing S . V . I . , on WEDNESDAY, 3rd JULY, 1935, a t 11.0 a.m. A G E N D A . 1. DISPUTE BETWEEN ITALY & ABYSSINIA (Reference 2. Cabinet 34 ( 3 5 ) (ETHIOPIA) ­ ( i f required). Conclusion 5 ) . THE PROPOSED AIR PACT. (Reference Cabinet 34 ( 3 5 ) Conclusion 6). A i r P a c t and A i r L i m i t a t i o n A g r e e m e n t : Memorandum by the S e c r e t a r y o f S t a t e f o r F o r e i g n Affairs. C P . 135 ( 3 5 ) circulated herewith. 3. THE GENERAL PURPOSES COMMITTEE. (Reference 4. Cabinet 34 ( 3 5 ) THE MEAT NEGOTIATIONS: (Reference Conclusion 2 ) . EXTENSION OF CATTLE SUBSIDY. Cabinet 32 ( 3 5 ) Conclusion 9). Memorandum by . the M i n i s t e r o f A g r i c u l t u r e and Fisheries. C P . 133 ( 3 5 ) already c i r c u l a t e d . 5. TEACHERS (SUPERANNUATION) (Reference BILL. C a b i n e t 34 ( 5 5 ) C o n c l u s i o n 1 2 ) . Statement t o be made by the P r e s i d e n t Board o f E d u c a t i o n . (Signed) m M.P.A. Secretary 2, W h i t e h a l l Gardens, 2nd J u l y , S.W.I., 1935. of the HANKEY, t o the Cabinet. I 50 (THT^P n r ! T T M B N T 1 8 T A E P R Q P B R T Y o g HIS BRITANNIC MAJESTY' S GOVERNMENT) . SJXOJ' COPY NO. C A B I N E T 55 ( 5 5 ) . CONCLUSIONS o f a M e e t i n g of t h e C a b i n e t h e l d 1 0 , Downing S t r e e t , S . W . I . , on WEDNESDAY, 3rd JULY, 1935, a t 1 1 . 0 a,m. at PRESENT: The R i g h t Hon. S t a n l e y B a l d w i n , M . P . , Prime M i n i s t e r . ( I n the C h a i r ) . The R i g h t Hon. N e v i l l e Chamberlain, M . P . , C h a n c e l l o r o f the E x c h e q u e r . ?he R i g h t Hon. J . Ramsay MacDonald, M . P . , Lord P r e s i d e n t of the Council. jfrhe R i g h t Hon. The V i s c o u n t H a i l s h a m , Lord Chancellor. The R i g h t Hon. S i r John Simon, G . C . S . I . , K . C . V . 0 . 0.B..E. , K . C ,M.P. , S e c r e t a r y o f S t a t e f o r Home A f f a i r s . IThe R i g h t Hon. S i r Samuel H o a r e , B t . , C C S . I . . G.B.E., C.M.G., M.P., Secretary of State for Foreign A f f a i r s . The Most HonThe Marquess o f L o n d o n d e r r y , K.G. , M . V . C , L o r d P r i v y S e a l , grhe R i g h t Hon. The V i s c o u n t H a l i f a x , K . G . , G . C S . I . , G . C . I . E . , Secretary o f S t a t e f o r War. The R i g h t Hon.. J . H . Thomas, M . P . , Secretary of State f o r Affairs. The R i g h t Hon. Sir Philip Cunliffe-Lister, G.B*E. , M . C , M . P . , S e c r e t a r y State f o r A i r . of JThe R i g h t Hon. S i r Godfrey C o l l i n s , K.B.E., C M . G . , M.P. , S e c r e t a r y o f State f o r Scotland. JThe R i g h t . Hon. W a l t e r Runciinan, M.P. , P r e s i d e n t o f t h e Board o f Trade. Dominion The Most Hon. The Marquess o f Z e t l a n d , G . C . S . I . G . C I . E . , Secretary of State for India. The R i g h t Hon. Malcolm MacDonald, M . P * , S e c r e t a r y of S t a t e f o r the Colonies. The R i g h t Hon. S i r Bolton Eyres M o n s e l l , M . P . , F i r s t L o r d o f the Admiralty. G.B.E., JThe R i g h t Hon. Anthony Eden, M . 0 . , M . P . , M i n i s t e r f o r League o f N a t i o n s Affairs. The R i g h t Hon. L o r d Eustace P e r c y , Minister without P o r t f o l i o . JThe R i g h t Hon. W a l t e r E l l i o t , M . C , M.P. , M i n i s t e r o f A g r i c u l t u r e and Fisheries. The R i g h t Hon. O l i v e r S t a n l e y , M . C , M.P. , P r e s i d e n t o f t h e Board o f Education. I The R i g h t Hon. S i r K i n g s l e y Wood, M . P . , Minister of Health. The R i g h t Hon. E r n e s t Brown, M. C , M.P. , M i n i s t e r o f Labour. The R i g h t Hon. ' W. Ormsby-Gore, M . P . , F i r s t Commissioner o f Yforlcs. Colonel S i r M . P . A . Hankey, G . C B . , G.C.M.G. , G . C V . 0. , Secretary. HE NAVAL RRVIEW. m 1. that, l (Previous Reference" C a b i n e t 24 ( 3 5 ) , Con­ elusion 11.) The Prime M i n i s t e r informed h i s colleagues i n o r d e r t o e n a b l e t h o s e members o f t h e who d e s i r e d t o be p r e s e n t a t t h e F l e e t t o be h e l d on t h e day f o l l o w i n g Cabinet Exercises the Naval Review, t h e w e e k l y M e e t i n g o f t h e C a b i n e t would b e postponed from Wednesday, July 17th, t o Thursday, He a n t i c i p a t e d t h a t on Tuesday, July 18th. J u l y 1 6 t h , t h e Mines V o t e would be put down f o r t h e House o f Commons . In order t o f a c i l i t a t e Parliamentary the Cabinet t o t h e arrangements b u s i n e s s he i n v i t e d a l l members inform the Secretary t h e y would be a t t e n d i n g (l) Tuesday, the F l e e t July Wednesday, for 16th, (3) as t o w h e t h e r t h e N a v a l Review Exercises July 1 7 t h , o r , a l t e r n a t i v e l y , t h e y would be i n London on e i t h e r 16 t h and 1 7 t h . of or both on on whether July DISPUTE BETWEEN ITALY AND (ETFOPIA) . (Pr evious Reference: C a b i n e t 34 ( 3 5 ) , Con­ elusion 5.) 2. With a view t o a d e c i s i o n , but a t an e a r l y M e e t i n g , Foreign Affairs the S e c r e t a r y gave t h e Cabinet of State a full owing t o I t a l y ' s menacing a t t i t u d e as r e v e a l e d in the r e p o r t s towards of the recent arisen Abyssinia conversations League o f N a t i o n s and M. M u s s o l i n i , which had a l r e a d y been to the for verbal a p p r e c i a t i o n o f t h e g r a v e s i t u a t i o n t h a t has between the M i n i s t e r f o r F.R. not t h e same day Affairs circulated Cabinet. A discussion of a preliminary character followed. I t became c l e a r t h a t t h e a c t i o n e n v i s a g e d by M, M u s s o l i n i would i n v o l v e a b r e a c h (i) of ­ The Agreement o f December 1 3 , 1906, r e s p e c t i n g A b y s s i n i a , under which t h e U n i t e d Kingdom, F r a n c e and I t a l y bind themselves, inter, a l i a ^ " t o co­ operate in maintaining the p o l i t i c a l and. t e r r i t o r i a l s t a t u s quo i n E t h i o p i a as d e t e r m i n e d by t h e s t a t e o f a f f a i r s a t pr es ent ex i s "t i n g . . . " : (ii) A r t i c l e X o f t h e Covenant League o f N a t i o n s : '(ill) of the The K e l l o g g P a c t — i m p o r t a n t from t h e p o i n t " o f v i e w o f American o p i n i o n . An i n v a s i o n o f A b y s s i n i a w o u l d , t h e r e f o r e , the issues e n v i s a g e d by A r t i c l e XVI o f t h e which i n v o l v e d collective, but not commitments f o r t h e s i g n a t o r i e s . If raise Covenant, individual, those obliga­ t i o n s w e r e i g n o r e d o r e v a d e d , a heavy blow would b e s t r u c k a t t h e w h o l e of t h e P a c t s and Agreements which t h e p o s t - w a r s y s t e m o f up. on Europe had b e e n b u i l t I t would amount t o an a d m i s s i o n t h a t the a t t e m p t t o g i v e t h e League c o e r c i v e powers was a m i s t a k e —. an a d m i s s i o n t h a t would, h a v e effects In increasing the e x i s t i n g as w e l l as on p u b l i c fulfilling confusion abroad, o p i n i o n at home. The r e s p o n s i b i l i t y burden o f serious of t h e Powers on which t h e A r t i c l e XVI would f a l l r e c o g n i s e d t o be a heavy one, s i n c e i t was involved not only t h e p r e s e n t Italy; but a l s o t h e w h o l e o f system. tions, d i s p u t e and r e l a t i o n s If the e x i s t i n g with international Prance was p r e p a r e d t o honour i t s o t h e r n a t i o n s would p r o b a b l y follow. obliga­ Without. French c o - o p e r a t i o n the a p p l i c a t i o n of was out o f t h e q u e s t i o n , the attitude F r a n c e was and as y e t Article XVI of uncertain. The C a b i n e t w e r e i n f o r m e d t h a t a l r e a d y been sent t o P a r i s a t e l e g r a m had to ascertain whether Mi L a v a l had any . concrete proposals of his own w h i c h h e i n t e n d e d put f o r w a r d a t Rome or e l s e w h e r e to ( T e l e g r a m Ho.163 o f July 3, t o P a r i s ) , T h e r e was g e n e r a l the Minister for agreement that the v i s i t League o f N a t i o n s A f f a i r s had been o f a d v a n t a g e i n r e m o v i n g a l l M, M u s s o l i n i ' s t o Rome doubts as to attitude. The v a r i o u s courses emerged from t h i s summarised as of open t o t h e C a b i n e t which preliminary d i s c u s s i o n may b e follows (1) Should we endeavour t o d e t a c h o u r s e l v e s from t h e A b y s s i n i a n a f f a i r , o r w e r e we bound t o f u l f i l our o b l i g a t i o n s under t h e Covenant? (S) Should we a p p r o a c h t h e French G o v e r n ­ ment i n o r d e r t o a s c e r t a i n w h e t h e r t h e y w e r e p r e p a r e d t o honour t h e i r o b l i g a t i o n under t h e Covenant? (3) Should we a p p e a l t o A r t i c l e I I I o f t h e Agreement o f 1906, which p r o v i d e s , i n t e r a l i a , t h a t " I n no c a s e s h a l l one o f t h e t h r e e Governments i n t e r f e r e i n any manner w h a t s o e v e r e x c e p t i n a g r e e ­ merit w i t h t h e o t h e r t w o " , and A r t i c l e I V , which p r o v i d e s t h a t " I n t h e event o f t h e s t a t u s , quo l a i d down i n A r t i c l e I b e i n g d i s t u r b e d , Prance, Great B r i t a i n and I t a l y s h a l l make e v e r y e f f o r t t o preserve" the i n t e g r i t y of Ethiopia, I n any e a s e , t h e y s h a l l c o n c e r t together,....." ? I f t h e U n i t e d Kingdom and France w e r e i n a g r e e m e n t , m i g h t not t h e a d o p t i o n o f t h i s c o u r s e a v e r t a c r i s i s , and might i t not i n any e v e n t b e p r e f e r a b l e t o a l l o w i n g t h e shock o f t h e d i s p u t e t o f a l l d i r e c t on t h e League o f N a t i o n s ? I n c o n n e c t i o n with, t h e t h i r d questions of o f t h e above t h e C a b i n e t w e r e reminded t h a t t h e T r e a t y 1906 had been concluded when t h e Powers had a t e n d e n c y towards t h e p a r t i t i o n of Africa, and it was s u g g e s t e d t h a t t h e I t a l i a n s m i g h t u s e t h i s e v i d e n c e o f t h e d e s i r e they a t t r i b u t e t o t h e Kingdom t o keep them from a c q u i r i n g The C a b i n e t w e r e investigation ( s i n c e they of United colonies. reminded t h a t previous economic s a n c t i o n s had shown t h a t involved blockade) bound t o lead, t o as they were almost hostilities, Th.er e was genera 1 a g r eement t h a t , w h i l e i t was n e c e s s a r y t o c o n t i n u e t o keep t h e Dominions of t h e development unnecessary of the s i t u a t i o n , it abreast was t o send any communication t o them as to future action pending f u r t h e r d i s c u s s i o n by the Cabinet. The C a b i n e t a g r e e d ­ ( a ) T h a t , b e f o r e t h e q u e s t i o n of A b y s s i n i a was d i s c u s s e d a g a i n by t h e C a b i n e t , t h e a p p r o p r i a t e Sub-Committee o f t h e Committee o f I m p e r i a l D e f e n c e " should c o n s i d e r and r e p o r t on t h e a p p l i c a t i o n o f A r t i c l e XVI o f t h e Covenant t o I t a l y , including the possible closing of the Sues C a n a l . The Sub-Committee s h o u l d be authorised, i f necessary, to consult t h e S t a f f s o f t h e D e f e n c e Departments and/or t h e C h i e f s o f S t a f f Committee direct: ( b ) That t h e M i n i s t e r f o r League of Nations A f f a i r s should b e added t o t h e SubCommittee f o r t h e purposes o f t h i s I n q u i r y . A s m a l l Sub-Committee o f t h e A d v i s o r y Committee o f t h e Committee o f I m p e r i a l D e f e n c e on T r a d e Q u e s t i o n s i n Time o f W a r . might i t not i n any e v e n t he p r e f e r a b l e t o a l l o w i n g t h e shock o f t h e d i s p u t e t o f a l l d i r e c t on t h e League o f N a t i o n s ? In connection with the t h i r d questions o f t h e above t h e C a b i n e t w e r e reminded t h a t t h e T r e a t y o f 1906 had been concluded when t h e Powers had a t e n d e n c y towards the p a r t i t i o n of Africa, and it was s u g g e s t e d t h a t t h e I t a l i a n s m i g h t u s e t h i s evidence o f t h e d e s i r e they a t t r i b u t e t o t h e as United Kingdom t o keep them from, a c q u i r i n g c o l o n i e s . The C a b i n e t w e r e investigation ( s i n c e they boiind t o of reminded t h a t economic s a n c t i o n s had shown t h a t involved blockade) they were of that, while i t t o c o n t i n u e t o keep t h e Dominions t h e development unnecessary t o future almost lead, t o h o s t i 1 i t i e s , T h e r e was g e n e r a l agreement necessary previous of t h e s i t u a t i o n , was abreast i t was t o send any communication t o them as a c t i o n pending f u r t h e r d i s c u s s i o n by the Cabinet. The C a b i n e t a g r e e d — ( a ) That b e f o r e the q u e s t i o n of A b y s s i n i a was d i s c u s s e d a g a i n by t h e C a b i n e t , t h e a p p r o p r i a t e Sub-Committee o f t h e Committee o f I m p e r i a l Defence'"" should, c o n s i d e r and r e p o r t on t h e a p p l i c a t i o n o f A r t i c l e XVI o f t h e Covenant t o I t a l y , including the possible closing of the Sues C a n a l . The Sub-Committee should, be authorised, i f necessary, to consult t h e S t a f f s o f t h e D e f e n c e Departments and/or t h e C h i e f s o f S t a f f Committee direct: ( b ) T h a t t h e M i n i s t e r f o r League of Nations A f f a i r s should b e added, t o t h e SubCommittee f o r t h e purposes o f t h i s I n q u i r y . A s m a l l Sub-Committee o f t h e A d v i s o r y Committee o f t h e Committee o f I m p e r i a l D e f e n c e on T r a d e Q u e s t i o n s i n Time o f W a r . 3. PROPOSED AIR PACT AND AIR LIMITATION AGREEMENT. The Cabinet had b e f o r e them a Memorandum, by the Secretary (35)) of State f o r on t h e s u b j e c t 3b£^ - results for i n which he r e p o r t e d o f the r e c e n t v i s i t to Paris League o f N a t i o n s a f f a i r s , Cabinet, a p p r o v a l t h e r e p l y M. L a v a l ' a request the of the and s u g g e s t e d about t h e accompaniment for Minister for t h a t should b e made t o A i r P a c t by - b i l a t e r a l m i l i t a r y to negotiations (0 . P . - 1 3 5 o f an A i r P a c t and an A i r L i m i t a t i o n Agreement, (previous Reference: Cabinet 34 ( 3 5 ) , Conelusion 6.) Foreign Affairs a General of arrangements the and as Settlement. R e l u c t a n c e was e x p r e s s e d by some members o f the C a b i n e t t o d i s c u s s a P a p e r on s o i m p o r t a n t a subject which i t had only b e e n p o s s i b l e t o c i r c u l a t e on t h e previous of evening. In view, however, of the urgency some a c t i o n t o b r e a k t h e p r e s e n t d e a d l o c k on b o t h t h e A i r P a c t and l i m i t a t i o n the fact t h a t a good d e a l of air armaments, and o f t h e ground had been c o v e r e d a t the M e e t i n g o f t h e C a b i n e t r e f e r r e d i n the margin, of t h e Cabinet d e c i d e d t o d e a l w i t h to the question. I n t h e course o f t h e d i s c u s s i o n i t was made clear that bilateral the i n t e n t i o n was not t o p a c t s , but r a t h e r t o by b i l a t e r a l m i l i t a r y complete the A i r Pact arrangements between t h e Powers c o n c e r n e d , s o as t o f a c i l i t a t e Air conclude the o p e r a t i o n o f the Pact. The a t t e n t i o n o f extract t h e C a b i n e t was c a l l e d t o an from an e a r l i e r Memorandum by S e c r e t a r y t o t h e C a b i n e t and Committee o f Defence i n which he drew a t t e n t i o n t o t h e the Imperial difficulty of c o n c e r t i n g p l a n s w i t h more than one n a t i o n to give effect to reciprocal guarantee Treaties ( C . I . D . P a p e r N o . 1163-B, P a r a s . 35 and 3 6 ) . The C a b i n e t were i n f o r m e d , h o w e v e r , was now contemplated/.was not simple b i l a t e r a l /5 ft'cti9cu*it*x o\ 1 teohnxcal p l a n s , but arrangements provisions t h a t what quite containing such as m i g h t be a g r e e d t o b e cUl&ti* I1U %lutL l npoessarv f o f rendering the A i r Pact e f f e c t i v e . Qvdct f t w fa cUiaiUeL j—--——-—--———--— AAMM.atituul* u&icL \ The C a b i n e t w e r e reminded t h a t , as t h e Dominions would b e s u s p i c i o u s pact, i t would be n e c e s s a r y the nature of the b i l a t e r a l o f any -^ bilateral t o e x p l a i n t o them arrangements now contemplated. A t t e n t i o n was c a l l e d , t o t h e n e e d , t i o n s w i t h F r a n c e , t o k e e p i n mind t h e already in negotia­ objection e x p r e s s e d by t h e German Government bilateral pacts. " h e Cabinet agreed (a) to — That t h e f o l l o w i n g form t h e b a s i s f o r bilateral military C i) p r i n c i p l e s should, the conclusion of arrangements:- " h e r e should be no b i l a t e r a l arrangement w i t h o u t an A i r Pact:" ( i . i ) T h e r e s h o u l d b e no b i l a t e r a l arrangement w i t h one p a r t y only: (ill) His M a j e s t y ' s Government i n th e U n i t e d Kingd om w e r e prepared to agree t o b i l a t e r a l m i l i t a r y arrangements e i t h e r accompanying o r f o l l o w i n g an A i r P a c t , p r o v i d e d that other p a r t i e s make no o b j e c t i o n . That, subject to the above, the Secretary of State for Foreign A f f a i r s should be a u t h o r i s e d t o i n f o r m t h e French Government t h a t Fis Ma j e s t v s G overnment i n t h e United"Kingdom would b e p r e p a r e d t o a g r e e t o t h e accompaniment o f t h e A i r P a c t by a b i l a t e r a l m i l i t a r y arrangement c o n t a i n i n g such t e c h n i c a l o r o v i s ions as m i g h t b e agreed, t o be necessary f o r rendering i t effective as between t h i s c o u n t r y and F r a n c e . T h i s would b e on t h e u n d e r s t a n d i n g t h a t F i s M a i e s t y ' s Government w i l l p r o p o s e a s i m i l a r agreement b e t w e e n t h e United. Kingdom and Germany, and between t h e U n i t e d Kingdom and B e l g i u m . I n r e t u r n , t h e French Government would b e asked not t o o b j e c t t o t h e immediate i n i t i a t i o n of discussions between a l l t h e L o c a r n o Powers w i t h a v i e w t o t h e n e g o t i a t i o n ( a s d i s t i n c t from t h e c o n e l u s i o n ) o f an A i r P a c t and A i r L i m i t a t i o n A g r e e m e n t . . f h e French Government would not b e encouraged t o b e l i e v e t h a t we had. i n anv way agreed to the technical provisions which t h e y h a v e s u g g e s t e d as s u i t a b l e f o r inclusion in the b i l a t e r a l arrange­ in ent : r That t h e t i m e and n a t u r e o f any c o i m m n i c a t i o n on t h e s u b j e c t t o Germany should b e l e f t t o t h e S e c r e t a r y o f S t a t e f o r F o r e i g n A f f a i r s , who w o u l d c o n s u l t t h e P r i m e M i n i s t e r , and t h e Lord P r e s i d e n t o f the C o u n c i l i f t h e l a t t e r so d e s i r e d . PURPOSES COMMITTEE. f pi* e v i o u s Referenoe ? Cabinet 34 ( 3 5 ) , Con­ clus i o n 3 . ) F-R. 4 . The Prime M i n i s t e r i n f o r m e d t h e r e was some hope o f t h e d r a f t the Cabinet r e p l y by the Government t o Mr L l o y d G e o r g e b e i n g r e a d y for c o n s i d e r a t l . c n by t h e C a b i n e t weekly Meeting. however, at t h e i r The C a b i n e t must that this could n o t b e next regular understand, guaranteed. that THE MEAT SITUAT TON. 0 ont inuat i o n of C a t t l e y. (Previous Referenc e t Cabinet 33 ( 3 5 ) , Con­ clusion 9.) nfl. 3b$S)tO. 5- The Cabinet had. b e f o r e the Minister (35)) o f A g r i c u l t u r e and F i s h e r i e s seeking authority o f Home A f f a i r s a Bill recess) (C.P.-133 t o submit t o t h e Committee to (Emergency P r o v i s i o n s ) t h e end o f them a Memorandum by extend t h e C a t t l e Act, 19 35 ( w h i c h e x p i r e s September, when P a r l i a m e n t w i l l until t h e end o f June, 1936, w i t h extend by Order o f circumstances Industry be power for a further and. e x c e e d i n g t h r e e months t o t h e end September, 1936, t h e Order b e i n g s u b j e c t Chancellor for of Scotland, Affairs, the S e c r e t a r y the Secretary and t h e P r e s i d e n t of of authority State for State for if of approval The the Secretary of of State Home Dominion Affairs o f t h e Board o f T r a d e a g r e e d a c t i o n a l o n g t h e s e l i n e s was Minister to each House o f P a r l i a m e n t . t h e Exchequer, desirable, A g r i c u l t u r e and. F i s h e r i e s and after the B i l l (a draft attached t o t h e Memorandum) had been that the ashed t o take the necessary Parliamentary immediately steps o f which, was considered and approved, by t h e Committee o f Home A f f a i r s , a view to i t s rises for t h e Summer Recess . o f A g r i c u l t u r e and F i s h e r i e s t h a t he w o u l d d i s c u s s the t o t a l contemplated At t h e request of of the the Secretary he undertook t o could be e x t e n d e d u n t i l liability under t h e B i l l P a r a , 8 ) with the Chancellor Affairs of stated on t h e (0.P.-133 (35), Exchequer."' State for Foreign c o n s i d e r w h e t h e r t h e period, Wovember 7 , 1936, t h e when t h e A r g e n t i n e Agreement would terminate. At t h e r e q u e s t State for Affairs with p a s s a g e i n t o law b e f o r e t h e House The M i n i s t e r Exchequer to final p e r i o d not by R e s o l u t i o n o f in the Appropriate M i n i s t e r s , so r e q u i r e , at of the Secretary of he a g r e e d t o k e e p i n mind, date Dominion I n any announce­ merits t h a t w e r e b e i n g made, t h e b e a r i n g o f the q u e s t i o n on t h e Meat N e g o t i a t i o n s w i t h t h e Dominions. He a g r e e d w i t h the S e c r e t a r y of S t a t e f o r i n the importance, p a r t i c u l a r l y view the Colonies from t h e p o i n t of o f p u b l i c o p i n i o n , o f measures b e i n g t a k e n improving efficiency in return for an e x t e n s i o n t h e s u b s i d y t o f a r m e r s , but p o i n t e d o f w o r k i n g out d e t a i l s u n t i l for out t h e the nature of of difficulty the long­ t e r m agreements was known. The Chancellor the following o f t h e Exchequer drew a t t e n t i o n extract from C . P . - 1 3 3 ( 3 5 ) , Para . 7 : ­ " I n introducing the Financial Resolution i t i s , I t h i n k , n e c e s s a r y t o make i t c l e a r t h a t t h e f u r t h e r payments t o be made a r e , l i k e t h o s e a l r e a d y made from t h e Exchequer, advances w h i c h w i l l be r e c o v e r a b l e from t h e C a t t l e Fund by t h e E x c h e q u e r , as c i r c u m s t a n c e s may p e r m i t , when t h e former comes t o be f e d from t h e p r o c e e d s of t h e l e v y " . He o b s e r v e d t h a t t h i s p o i n t was not i n t h e As t h e M i n i s t e r foresaw difficulties the B i l l , his of A g r i c u l t u r e and in introducing the Chancellor p o s i t i o n on t h a t owing t o t h e e x i g e n c i e s the point o f t h e Exchequer into reserved informed the Cabinet of Parliamentary of t h e F i n a n c i a l p r o b a b l y h a v e t o be d e l a y e d a Subject Fisheries point. The P r i m e M i n i s t e r the introduction Bill. that, business, R e s o l u t i o n would little. t o the above, the Cabinet agreed — ( a ) To a p p r o v e i n p r i n c i p l e t h e p r o p o s a l s i n C . P . - 1 3 3 ( 3 5 ) as summarised a b o v e : (b) That i f c i r c u m s t a n c e s should r e n d e r t h i s course necessary, the M i n i s t e r o f A g r i c u l t u r e and F i s h e r i e s should be authorised, t o arrange f o r the Financial Resolution covering his p r o p o s a l s t o be on t h e Order Paper o f t h e House o f Commons i m m e d i a t e l y a f t e r t h e B i l l has been c o n s i d e r e d and .approved, by t h e .Home A f f a i r s Com­ m i t t e e , but w i t h o u t w a i t i n g f o r t h e C o m m i t t e e ' s C o n c l u s i o n s t o be c o n s i d e r e d by t h e C a b i n e t . to rntTR fPJAGHERS PTTj: 6. recalled to his Reference: Cabinet 34 ( 3 5 ) , Con­ elusion I S . ) "Tie P r e s i d e n t that o f t h e Board o f on June 25th l a s t proposal a f f e c t e d , by the s a l a r y reduction the Cabinet to introduce a P i l l agreement trade w i t h t h e T e a c h e r s Education to t h a t no t e a c h e r s cuts should s u f f e r of the Parliamentary Not o n l y allowances owing t o time-table, impossible t o introduce the B i l l t h e Recess , anv T h i s a p p r o v a l , h o w e v e r , had b e e n g i v e n on t h e u n d e r s t a n d i n g t h a t , state implement an i n t h e i r -annual s u p e r a n n u a t i o n e x c e e d i n g 2 per c e n t . agreed the i t might a t any r a t e before t h e Government C h i e f Whip, a l s o t h e Whips o f t h e Labour and t h e L i b e r a l were agreed i n a n t i c i p a t i n g t h a t t h e be but Parties, legislation would be unopposed. I n o r d e r t o s a v e a week o f P a r l i a m e n t a r y time, t h e Cabinet agreed - ­ (a) That- i f the Committee o f ^ ome A f f a i r s at t h e i r M e e t i n g on t h e f o l l o w i n g day ( T h u r s d a y , July ' 4 t h ) should a p p r o v e the B i l l , the President of the"Board o f E d u c a t i o n should h a v e a u t h o r i t y t o uroceed. at once with, t h e s t e p s necessary f o r the i n t r o d u c t i o n of the B i l l without w a i t i n g f o r the C o n c l u s i o n s o f t h e Committee o f Home A f f a i r s t o come b e f o r e t h e Cabinet: fb) To t a k e n o t e t h a t , under t h e p l a n proposed by t h e P r e s i d e n t o f t h e Board o f Education the Financial R e s o l u t i o n on which t h e B i l l has t o be b a s e d would, be put down on Th urs da y a f t e r n o o n . T UOULtfcl Ob' UOMuONd (.nu:ri .AKA'r hyN 7, The Prime Minister informed the Cabinet that a Bill was necessary in order to meet the legal difficulties which were thought to have arisen in connection with ­ (l) The recent appointment of Mr, Eden as Minister Without Portfolio for League of Nations Affairs: and (!) The proposed appointment of a second Undor-Secretary to the Foreign. Office, At his request the Cabinet agreed — That; the House of Commons Disqual­ ification. (Declaration of Law) Bill, 1955, should be considered by the Committee of Home Affairs at their Meeting on Thursday, July 4th, and, subject to the views of the Committee, might be introduced in the House of Commons forthwith without further reference to the Cabinet. E ;J f&ite&all Gardens, S.V.I., JlfLy 3, 1935.