(THIS DOCUMENT IS THE PROPERTY 01 HIS BRITANNIC MAJESTY'S GOVERNMENT) ft g C R E T. COPY NO. C A B I N E T Meeting of Street, 41 ( 3 5 ) . the C a b i n e t t o be h e l d a t No. 10, Downing S . W . I . , on WEDNESDAY, 31st J u l y , 1935, a t 1 1 . 0 a.m. A G E N D A . 1. 2 * FOREIGN AFFAIRS MALTA: - (if required). PROPOSED LEGISLATION. (Reference Cabinet 5 ( 3 5 ) Conclusion 6 ) . Memorandum by t h e S e c r e t a r y o f S t a t e f o r the (C,I . 156 ( 5 5 ) already c i r c u l a t e d ) . Colonies. J 3. REMOVAL OF ROYAL ORDNANCE FACTORIES WALTHAM, E T C . ; . N o t e b y the S e c r e t a r y (WOOL./!OH, ENFIELD, covering:- Memorandum by the S e c r e t a r y R e p o r t of an I n t e r - S e r v i c e s of State f o r Committee. War c o v e r i n g E x t r a c t from the 269th M i n u t e s o f t h e Committee Imperial Defence. of J o i n t Memorandum by the T r e a s u r y and t h e War O f f i c e , c i r c u l a t e d w i t h the a p p r o v a l o f the C h a n c e l l o r o f t h e Exchequer and t h e S e c r e t a r y o f S t a t e f o r War. ­ (CP. 4. 145 ( 3 5 ) - already circulated). UNEMPLOYMENT INSURANCE (NORTHERN IRELAND) AGREEMENT. Memorandum by t h e C h a n c e l l o r draft B i l l . (CP. 158 ( 3 5 ) - of circulated the Exchequer, covering herewith). 5. ARRANGEMENTS FOR THE RECESS. (Reference C a b i n e t 31 ( 3 4 ) ' C o n c l u s i o n 9 ) . ( S i g n e d ) M.P.A. Secretary 2 ' V / h i tehall Gardens, S . V . I . , 29th J u l y , 1935. HANKSY. t o the Cabinet. (THIS DOCUMENT I S THE P R O P E R T Y Oir HIS BRITANNIC M H J E S T Y ' S GOVERNMENT) ^ C E E T, COPY NO. C A B I N E T 41 ( 3 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 a t 10, Downing S t r e e t , S.V/.1., on WEDNESDAY, 31st JULY, 1935, at 11.0 a.m. 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. J. Ramsay MacDonald, M . P . , Lord P r e s i d e n t of the Council. 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 of the Exchequer. The R i g h t Hon. The V i s c o u n t H a i l s h a m , Lord C h a n c e l l o r . The R i g h t Hon. S i r John i i m o n , G. G. 8 . 1 . ,K. C V. 0 O.B.E., K.C., M.P., Secretary of S t a t e f o r Home A f f a i r s . The R i g h t Hon. S i r Samuel H o a r e , 3 t .3 G . C . S . I . , G.3.E. , C . M . G . , M . P . , S e c r e t a r y of S t a t e f o r F o r e i g n A f f a i r s . The Most Hon. The Marquess o f L o n d o n d e r r y , K.G., M . V . O . , Lord P r i v y S e a l . The R i g h t Hon. The V i s c o u n t H a l i f a x , K . G . , C C S . I . , G . C I . E . , Secretary of S t a t e f o r War. The R i g h t Hon. J . H . Thomas, M . P . , Secretary of State for Affairs. The R i g h t Hon. Sir P h i l i p C u n l i f f e - L i s t e r , G.B.E., C. M . P . , S e c r e t a r y State f o r A i r . 11. s Dominion The Most Hon. The Marquess o f Z e t l a n d , o f G . C . S . I . , G.C. I . E . , S e c r e t a r y State for India. The R i g h t Hon. Sir 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 S c o t l a n d . The R i g h t Hon. Malcolm MacDonald, M . P . , S e c r e t a r y o f S t a t e f o r the Colonies. The R i g h t Hon. S a l t e r Run c iman, M. P. , P r e s i d e n t o f t h e Board o f 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. The R i g h t Hon. Walter E l l i o t , M . C . , Minister f o r A g r i c u l t u r e Fisheries. The R i g h t Hon. S i r K i n g s l e y Wood, to. P . , Minister of Health. Jhe R i Hon. p n e s t Brown, M.C. , M.P. Minister of Laoour. g h t Trade. ana of G.B.E., The R i g h t Hon. L o r d Eustace P e r c y , M.P. , M i n i s t e r without P o r t f o l i o . The R i g h t Hon. O l i v e r Stanley, M . C , M.P., P r e s i d e n t o f the Board o f Education. The R i g h t Hon. W. Ormsoy-Gore, M . P . , F i r s t Commissioner o f "Works. Colonel S i r M . P . A . Hankey, G.C.B. , G . C M . G . , G.C.V.O., Secretary DISPUTE BETWEEN I^ALY AND ABYSSINIA. fBTHIOPIA) . H f p r e v i ous F-" R e f e r e n c e : Cabinet 40 II ( 3 5 ) ConH elusion 4 . ) ft ft. . 1 . The S e c r e t a r y informed the Cabinet the situation of State for of the l a t e s t Foreign developments in the Italo-Abyssinian S i n c e the Meeting o f t h e Cabinet to efforts inducing France t o r e a l i s e the g r a v i t y position. of the Be had s e e n t h e French Ambassador a a t t h e f o r t h c o m i n g Meeting, t h e C o u n c i l League o f N a t i o n s of somewhat, n e g a t i v e a t t i t u d e nothing except Conciliation out t h a t to start adopted a proposal i t would b e u s e l e s s further t o do d i s c u s s i o n s by the Committee o f Four, as t h a t would disinteresting of the The towards t h i s convey t h e i m p r e s s i o n t h a t advantage that discussions Committee. S t a t e had d e l i b e r a t e l y and. had p o i n t e d of should not extend i t s of the C o n c i l i a t i o n Secretary in on few days a g o , when t h e l a t t e r had s u g g e s t e d outside in dispute. referred t h e m a r g i n he had. concentrated, h i s Affairs itself Italy. t h e C o u n c i l was in the question to He b e l i e v e d , t h a t h i s had b e e n passed, on t o P a r i s . the remarks A few days l a t e r he had s e e n t h e French Ambassador a g a i n and. had. suggested, firstly, that if a fifth appointed, t h a t would b e a new f a c t o r s i t u a t i o n bu.t not a s u f f i c i e n t that it m i g h t be w e l l for Arbitrator one: in and. a request to were the secondly, emerge from t h e Council o f t h e L e a g u e t h a t t h e - t h r e e Powers signatories of the Treaty with the question urgently bases t o be l a i d o f 1906 should and, i f deal possible, on down by t h e C o u n c i l i t s e l f . The C o u n c i l m i g h t then a r r a n g e t o keep i n touch, w i t h the proceedings, or even t o remain i n T h i s would, g i v e a. d o u b l e p r o c e d u r e : session. first, s t r e n g t h e n t h e C o n c i l i a t i o n C o m m i t t e e , and, to second, t h e t h r e e - P o w e r t a l k s , watched by t h e C o u n c i l , That, p r o p o s a l had been passed on. t o P a r i s , and h e l e a r n e d t h a t M. L a v a l l i k e d i t . t h e r e were signs of French p r o p o s a l ' Affairs its in coming back i n t h e form o f a The M i n i s t e r for League o f Nations had s e e n M. L a v a l and had d i s c u s s e d w i t h him t h e v e r y w e i g h t y D e s p a t c h which had been sent Maiesty's that Ambassador i n P a r i s , and had M. L a v a l l i k e d our p r o p o s a l s , i t might b e d i f f i c u l t accept fact them. He f e l t t o get reported though he thought Signor Mussolini therefore, t o His to t h a t an advance had b e e n made, i n so much as t h e French Government was now f u l l y drift, alive t o t h e dangers a*nd he thought put a l l pressure of l e t t i n g they could be r e l i e d upon t o on I t a l y , In r e p l y t o a q u e s t i o n as t o ho^ h e envisaged, t h e r e l a t i o n between t h r e e - P o w e r M e e t i n g and t h e C o u n c i l , h e that his matters the explained p r o p o s a l would b r i n g t h e C o u n c i l up a g a i n s t realities. He was most anxious t o s e c u r e in the three-Power discussions. Council should precision His i d e a was t h a t e i t h e r adjourn f o r a week or t w o , keep i n b e i n g t o watch t h e three-Power t a l k s . the Council d i d not would n o t , for that, r e a s o n , these discussions. he thought it talks In r e p l y prospect of turn of recent to another question, events, i f should, p r e s s view for for delegate notwithstanding he saw a lines the Abyssinian delegate a d i s cuss i o n from, a w i d e r p o i n t of t h e C o u n c i l would h a v e t o c o n s i d e r t h e m a t t e r . Much depended, on how f a r bring he question, p r o g r e s s b e i n g made a l o n g t h e suggested, a b o v e . . I f , . h o w e v e r , on from w o r k i n g doubtful whether t h e Abyssinian would wish, t o open t h e l a r g e the s i n i s t e r should t a k e p l a c e , desist or If formulate the general l i n e s which t h e t h r e e - P o w e r precision i t was found i n t o the three-Power the possible talks, to I n t h e d i s c u s s i o n t h e q u e s t i o n was r a i s e d what a t t i t u d e would be taken i f the B r i t i s h a t i v e w e r e asked t o say whether t h e U n i t e d was p r e p a r e d Covenant, to f u l f i l its obligations I t was e x p l a i n e d League o f N a t i o n s A f f a i r s Despatch sent to Paris, as represent­ Kingdom under the that the Minister would adopt to for the l i n e of the as s u g g e s t e d a t a M e e t i n g of crirtiQcdiOH^ the Cabinet, namely, cur CLcW We S&otJd Caaxy t h a t b o t h we a n France 1 agmroitmerot8/ and t h e r e f o r e w e r e g r e a t l y see that THE SUPPLY OP /EMS TO lAPYSSBITA. decision referred I(Pr evi ous vis., I AH, for war t o e i t h e r the exportation Ttalv the or issue o f arms or m u n i t i o n s of Abyssinia". if a new of State for should r e o p e n t h e m a t t e r . of s t a t e f o r Foreign A f f a i r s r e q u e s t t o M i n i s t e r s who might plate referring pub1ic arose. the present ari.se t h e S e c r e t a r y The S e c r e t a r y the f o l l o w i n g point as t o how l o n g T h e r e was g e n e r a l agreement t h a t Foreign Affairs to t o in t h e m a r g i n should, be maintained, t h a t we " s h o u l d not f o r s i t u a t i o n should SPEECHES. fulfilment ^he qi e s t i o n was a l s o r a i s e d licences concerned t h e emergency d i d not d e v e l o p t o t h e where t h e q u e s t i o n o f t h e i r l T^gf er enc e t I Cabinet f^9^ I ( 5 5 ) , ConI clus ion S . ) hadJour made ' contem­ t o the I t a l o - A b y s s i n i a n dispute in speeches:­ (l) That t h e y should be c a r e f u l not t o convey any i d e a t h a t t h e s i t u a t i o n was h o p e l e s s . (s) That, t h e y should be e x t r e m e l y c a u t i o u s i n any r e f e r e n c e s as t o what t h i s country would o r would not do i n t h e event o f an outbreak o f h o s t i l i t i e s . The S e c r e t a r y o f S t a t e u n d e r t o o k t o communicate w i t h t h e P r i m e M i n i s t e r or whoever was a c t i n g f o r him i n t h e e v e n t o f any new s i t u a t i o n developing. ( F o r C a b i n e t arrangements d u r i n g t h e Recess in connection with the I t a l o - A b y s s i n i a n d i s put e , s e e C one lus i o n 6 . ) ggTSS AIR gSS! (Previous Reference: Cabinet .56 ( 7 5 ) . Con­ elusion 8.) *' T h secretary e *' with the A i r Pact, r e P 0 P t e d special t h to a t h e a s reoort. of State f o r Foreign Affairs i l l t r y i n g t o make p r o g r e s s but at t h e moment had n o t h i n g a t - 3 . T h e C a b i n e t had b e f o r e MALTA. Propos ed Legislation. the Secretary ( Previous Reference: Cabinet 5 ( 5 5 ) , Con­ elusion 6.) a Bill (35)) of State for asking a u t h o r i t y to repeal them a Memorandum by the Colonies (0 . P . - 1 5 6 t o i n t r o d u c e next t h e Malta C o n s t i t u t i o n Session Letters Vcdida if P a t e n t and t o necessary) invalidate everything 'if that proved t o be done d u r i n g t h e regime s i n c e the suspension of Government i n M a l t a i n 1933. n o t r a i s e any i s s u e new t o h i s invited reference predecessor 0 abinet to in o f f i c e relating State for the various Parliamentary This proposal did c o l l e a g u e s , but he c e r t a i n Memoranda by h i s and t o t h e C o n c l u s i o n s of the thereto. After hearing a f u l l of provisional the C o l o n i e s , points s t a t e m e n t by the Secretary i n which he d e v e l o p e d i n h i s Memorandum, t h e Cabinet That t h e S e c r e t a r y o f S t a t e f o r t h e C o l o n i e s should be a u t h o r i s ed t o p r e p a r e a B i l l t o r e p e a l the. Malta, C o n s t i t u t i o n L e t t e r s P a t e n t , with a v i e w t o t h e s e t t i n g up by Order i n C o u n c i l o f a form o f Government i n w h i c h t h e supreme l e g i s l a t i v e and e x e c u t i v e power should remain w i t h the Governor, with a Council t o a s s i s t OYAL ORDINANCE aCTCRIES — T/OVAL OF. 4 . The C a b i n e t had b e f o r e them t h e documents on t h e s u b j e c t Ordnance F a c t o r i e s $$($M)^- following of the removal (Woolwich, of Royal F n f i e l d , Walt-ham c i r c u l a t e d by d i r e c t i o n o f t h e P r i m e M i n i s t e r 145 ( 3 5 ) ) : - etc.) (C . P . ­ A Memorandum by t h e S e c r e t a r y o f S t a t e f o r War," c o v e r i n g t h e R e p o r t o f an I n t e r - S e r v i c e s Committee: An E x t r a c t from t h e Minutes o f 269th M e e t i n g o f t h e Committee Imperial Defence: the of A J o i n t N o t e by t h e T r e a s u r y and t h e War O f f i c e , c i r c u l a t e d w i t h t h e approval of the Chancellor of the Fxcheq\:er and t h e S e c r e t a r y o f S t a t e f o r War. The d i s c u s s i o n contained i n favour Lancashire, tfu W h i l e C h o r l e y was g e n e r a l ! ; / a c c e p t e d for t h e main f a c t o r y , the in of view of ogioal g i v i n g some h e l p t o areas, the populations t o move t o o t h e r as a unemploy­ on t h e psychol­ isolated o f w h i c h i t was centres, and which were l i a b l e t o become e m b i t t e r e d by t h e f a c t that felt r e c o r d was themselves b o y c o t t e d because t h e i r a bad o n e . industrial The a d v a n t a g e s they from t h e p o i n t o f v i e w e x p a n s i o n o f h a v i n g more than one Incidentally in d i s c u s s i o n t h e q u e s t i o n was r a i s e d , o f the of dealing with the floods in the especially increase the desirability entrances t o t h e v a l l e y s , w h i c h a r e a b a r t o development South W a l e s . of estab­ l i s h m e n t w e r e a d m i t t e d , but t h i s was s a i d t o the cost rather s e r i o u s l y . T&CI'^^ advantages Emphasis was l a i d importance of the i?pyaJL little a ment, were p r e s s e d . difficult and f o r throov o f t h e Royal­ South W a l e s , from t h e p o i n t special proposal of the adoption of Chorley, as t h e s i t e suitable site of on t h e i n t h e J o i n t N o t e by t h e t r e a s u r y War O f f i c e 4$&At**am-. focussed. m a i n l y in The q u e s t i o n was a l s o r a i s e d effect great of t h e removal on W o o l w i c h , of the s o c i a l the centre of a c o - o p e r a t i v e movement and o f e x t e n s i v e housing schemes . After agreed c o n s i d e r a b l e discuss ion the Cabinet — (a) o a c c e p t t h e f o l l o w i n g recommendation by t h e Committee o f I m p e r i a l D e f e n c e , viz . :­ m "fa) To a p p r o v e i n p r i n c i p l e t h e recommendations o f t h e Report o f t h e C omm i t t e e on th e r em ova 1 o f t h e R o y a l Ordnance F a c t o r i e s f o r w a r d e d w i t h t h e Memorandum, by t h e S e e r e t a r v o f S t a t e f o r War ( 6 . I . D . Paper N o . 208-A) (b) That t h e S e c r e t a r y o f S t a t e for War s h o u l d h a v e a u t h o r i t y , a f t e r such e x a m i n a t i o n o f t h e C h o r l e y s i t e as h e might deem n e c e s s a r y h a v i n g r e g a r d t o t h e r i s k o f leakage i f there were too great delay, t o proceed, subject t o Treasury consent, with t h e purchase o f a s i t e a t C h o r l e y , in Lancashire: fe) That t h e S e c r e t a r y o f S t a t e f o r War, in consultation with the Minister of H e a l t h and o t h e r M i n i s t e r s as r e q u i r e d , should form an I n t e r - - D e p a r t m e n t a l C o m m i t t e e , composed o f r e p r e s e n t a t i v e s of The The The "he he m War O f f i c e , Treasury, Ministry of Health, M i n i s t r y o f Labour, Scottish Office ­ w i t h i n s t r u c t i o n s t o c o n s i d e r fon t h e assumption t h a t t h e p r i n c i p a l part o f t h e e s t a b l i s h m e n t s conoerned would be removed t o C h o r l e y , in. L a n c a s h i r e ) t h e f o l l o w i n g qti.estions : ­ fl) "$vuc& iiliuiq v v The p o s s i b i l i t y and d e s i r a b i l i t y o f e s t a b l i s h i n g some p a r t o f t h e tCLdbUf /p^ep-es-ed site (2) (3) now fao-%-e^4es i n South W a l e s : at. some h e best s i t e f o r the Cordite F a c t o r y at Walt-ham whenever i t should, be d e c i d e d t o move i t : n The b e s t means o f m i t i g a t i n g t h e s o c i a l consequences o f t h e r e m o v a l in t h e Woolwich a r e a , including such m a t t e r s as t h e e f f e c t on h o u s i n g and t h e Woolwich C o - o p e r a t i v e S o c i e t y . ( d ) That t h e utmost s e c r e c y should be p r e s e r v e d , f o r t h e p r e s e n t as t o t h i s decis i o n . 5. ORT-ilR^ The C a b i n e t had b e f o r e Chancellor 8'ob j e c t pevious ffeerenco: f f i n e t 46 1), Con­ lusion 7 ) . or the Exchequer them a Memorandum by ( C P . -158 (35)) o f a new A g r e e m e n t w i t h N o r t h e r n i n ooth c o u n t r i e s . astced a u t h o r i t y of %w the I r e l a n d on confirmed the Treasury i n a F i n a n c i a l R e s o l u t i ,,n on the n i g h t on the l i n e s A The C h a n c e l l o r the C a b i n e t f o r to introduce a B i l l 42 on the Unemployment I n s u r a n c e , which r e q u i r e d t o be by l e g i s l a t i o n 1 of t o hand o f J u l y 3 1 s t and the p r e l i m i n a r y a t t a c h e d t o h i s Memorandum as soon as o p p o r t u n i t y draft offered i n t h e autumn. The S e c r e t a r y Cabinet that of State for Scotland informed the on the p r e v i o u s e v e n i n g he had s e n t a t o the C h a n c e l l o r o f the Exchequer, informing letter him o f c e r t a i n r e a c t i o n s which the new a g r e e m e n t would produce in bcotland, be some d e l a y and a s k i n g t h a t , if possible, there should i n handing i n the F i n a n c i a l R e s o l u t i o n , as t o g i v e him time t o t a k e t h e n e c e s s a r y s t e p s t o the t h r e a t e n e d d i f f i c u l t i e s . received CP.-158 able to w r i t e previous (35) Ho h i m s e l f so avoid had only on J u l y i39tn and had o n l y been t o the C h a n c e l l o r o f the Exchequer on t h e evening. After some d i s c u s s i o n t h e C h a n c e l l o r asiced t h a t he m i g h t be l e f t the S e c r e t a r y of State for of t o discuss the matter with S c o t l a n d , whose v/ishes he u n d e r t o o k t o meet so f a r as t h i s might p r o v e The C a b i n e t the Exchequer possible. agreed:­ t o a p p r o v e in p r i n c i p l e t h e Memorandum by t h e C h a n c e l l o r o f t h e Exchequer ( C P . - 1 5 8 ( 5 5 ) ) l e a v i n g t o the C h a n c e l l o r o f the e x c h e q u e r and the S e c r e t a r y o f S t a t e f o r S c o t l a n d t o s e t t l e the d a t e on -which the F i n a n c i a l R e s o l u t i o n s h o u l d be handed in. m CABINET 6. !R THE RECESS. the C a b i n e t a g r e e d t o the f o l l o w i n g gg^vious Reference: [Cabinet 31 p 4 ) Con­ liusion 9 ) . for iRRANGEM^RTS On the s u g g e s t i o n the of t h e Prime Minister arrangements Recess:­ (a) (b) That d a r i n g t h e Prime M i n i s t e r ' s ausence a b r o a d , the L o r d P r e s i d e n t of the C o u n c i l should a c t f o r him, and i f t h e L o r d P r e s i d e n t s h o u l d h i m s e l f go a b r o a u , the C h a n c e l l o r o f the Exchequer s h o u l d a c t f o r the . Prime M i n i s t e r U n t i l h i s r e t u r n . That i f t h e Mi n i s t e r a c t i n g f o r the Prime M i n i s t e r should deem i t necessary to hold a Meeting of M i n i s t e r s he s h o u l d n o r m a l l y summon o n l y t h o s e w i t h i n easy r e a c h o f London. In the e v e n t , however, of a r e a l emerge ncy a r i s i n g ­ i n c o n ­ n e e t i o n , f o r examp1e, v i t h the I t a l o - A b y s s i n i a n d i s p u t e , he s h o u l d summon a f u l l M e e t i n g o f t h e C a b i n e t , i n which c a s e t h e Prime M i n i s t e r h i m s e l f would r e t u r n . That a M e e t i n g o f the C a b i n e t s h o u l d be h e l d on Tuesday, September 2 4 t h , t o d e a l w i t h immediate b u s i n e s s , but t h a t o n l y t h o s e Members s h o u l d be summoned who w e r e w i t h i n c o n v e n i e n t reach. m * Whitehall Gardens, 31st J u l y , 1935. "it a (d) That r e g u l a r M e e t i n g s o f the C a b i n e t should b e g i n on Wednesday, O c t o b e r 2nd, when the Prime M i n i s t e r hoped t h a t a l l o f h i s c o l l e a g u e s "would be . present. (e) That as r e g a r d s t h e I t a l o - - A b y s s i n i a n d i s p u t e , the Secretary of State f o r F o r e i g n A f f a i r s , who would be w i t h i n easy r e a c h o f London, s h o u l d iceep the C a b i n e t M i n i s t e r a c t i n g f o r t h e time b e i n g f o r the Prime M i n i s t e r i n c l o s e touch v/ith a l l d e v e l o p m e n t s i n the s i t u a t i o n , and s h o u l d inform him i f he deemed any M e e t i n g o f M i n i s t e r s t o be n e c e s s a r y . (f) That C a b i n e t M i n i s t e r s s h o u l d inform t h e S e c r e t a r y t o the C a b i n e t as t o t h e i r a d d r e s s e s and changes o f a d d r e s s , w h e t h e r t h e y were a t home or a b r o a d , i n o r d e r t h a t t h e S e c r e t a r y might b e a o i e t o summon the M e e t i n g a t s h o r t n o t i c e i r d e s i r e d by t h e M i n i s t e r a c t i n g f o r t h e Prime M i n i s t e r . 1o 9 . pQGUMENT' j g mtTy? PROPERTY OF HIS BRI^A^NTO MAJESTY S GOVERNMENT.) 1 S E 0 R F ^ - COPY Bo , CONCLUSIONS OF A CONVERSATION AT N o , 1 0 . DOWNING- STREET ON TUESDAY AUGUST S 19 35, ' at 3 .30 p .m. R E S F N T :The R i g h t T o n . S t a n l e y Prin?e F i n i s t er . r r Tjie R i g h t rj Q Baldwin, M.P., pon. Sir Samuel P o a r e Ft. n w fi i f u State f o r Foreign f i T5 c T Secretary A.f f a i r s of The R i g h t Fort. Anthony Eden, M , C . , M , P , , M i n i s t e r . f o r League o f N a t i o n s Affairs. Car R o b e r t Vans i t t a r t , G .C.M.G. , F .C .P . ,M ,v.o . Permanent U n d e r - S e c r e t a r y o f S t a t e f o r Foreign A f f a i r s . C o l o n e l S i r M . P . A . Fankey, G .C ,B . ,G .C .M.G . , 6 .0 . v .0 Secretary to the Cabinet. This Minister M e e t i n g was h e l d for the results of in order Lea'gue o f N a t i o n s and t h e S e c r e t a r y Affairs, and. f o r of Affairs the three Ministers at 19 0 6 . Foreign to confer for League the forthcoming Meetings t h r e e Powers s i g n a t o r i e s of report t h e Prime State for t h e l i n e t o be t a k e n by t h e M i n i s t e r Nations to the o f t h e Council, a t Geneva t o Minister enable Affairs of the recent Meeting t h e League o f N a t i o n s to to the Abyssinian of on of the Treaty The Minister for League of Nations Affairs reported that at Geneva the French representatives had acted markedly in line with.the British, ^his applied especially to M. leger. Tt was noted that this development was in conformity with the wishes o""' the Cabinet (Cabinet 40 1 (55), Conclusion 1 ) . Ministers were informed that the probable course of events next week would be Anglo-French Conversations for a day or two after which the tripartite discus­ sions would, begin. Tn the course of the discussion reference was made to an interim Memorandum by the Chiefs of Staff SubCommittee on the military implications of the appli­ cation of Article XVI of the Covenant of the League of Nat ions (C.0 .S -388) which had been sent to the e Ministers present pending the working out of details, which was still in progress . The attitude to be adopted, by the Minister for League of Nations Affairs at the forthcoming Meetings. and. certain other matters arising consecuentiallv, v, ere discussed and Conclusions were reached which may be summarised, as follows:­ (a.) That the Minister for League of Nations Affairs should do his utmost to maintain the close relations already established with the French Government on the ItaloAbyssinian d1spute: - (b) That, in the preliminary conversations with the French Government, his aim should be to establish a programme for later dis cuss ion w i t h th e Ital ian repres entat ive. T b i s programme would, orobablv have to be drawn in such manner as to bring, home to the Italian representative that the ultimate choice before Italy lay between th e foilowing alt ernat ives:­ (i) Acceptance from Abyssinia of certain concessions on points in the Italian case which His Majesty's G-overnment have already told the British . Ambassador in Pome (who did not have occasion to use them.) that they could support, if the case was made out, viz.:­ ;: 4 NN 146 "(l) i n s o f a r as t h r e a t s t o , or v i o l a t i o n s of, the I t a l i a n f r o n t i e r s are concerned: (2) i n r e s p e c t o f a g g r e s s i o n s s-nch as Walwal a f f r a y i f proved against. A b y s s i n i a t o bpr s a t i s f a c t i o n and t h a t o f t h e League of N a t i o n s : (?) in r e s p e c t of breaches - i f proven - of t r e a t i e s between I t a l v and A b y s s i n i a . Further 1 (4) i n a. g e n e r a l way His M a j e s t y ' s Government would be w i l l i n g t o s u p p o r t " I t a l y in p r e s s i n g Abyssinia t o permit to I t a l i a n s and o t h e r f o r e i g n e r s t h e u s u a l and r e a s o n ­ able f a c i l i t i e s for trade, habitation e t c . w i t h r e g a r d t o which she has been obstructive in the past: (5) as r e g a r d s s l a v e r y His M a j e s t y ' ? G o v e r n ­ ment c o u l d support, i n s i s t e n c e on Abyss i n i a p u t t i n g i n t o f o r c e such f u t u r e measures as t h e l e a g u e may t h i n k n e c e s s a r y and. remedying p a s t f a i l u r e s t o c a r r y out h e r o b l i g a t i o n s in t h i s m a t t e r . " (Telegram t o Rome H o . 5 5 5 . o f July Igjth.) I t was f o r e s e e n , h o w e v e r , t h a t t h e r e was no p r o s p e c t o f so l i m i t e d a programme s u f f i c i n g t o b r i n g I t a l y t o an accommodation. Tie i n d i c a t i o n s w e r e t h a t t h e French Government would p r o p o s e t o a p p l y j o i n t s u a s i o n a t Addis Ababa with, a v i e w t o e x t r a c t i n g a maximum o f f e r from A b v s s i n i a . I t was a l s o p o i n t e d out t h a t t h e more a t t r a c t i v e t h e o f f e r t o be i n d u c e d t h e b e t t e r would be t h e o r o s o e c t s o f t h e f i r s t c o u r s e and t h e l e s s t h e p r o s p e c t o f h a v i n g t o consider the a l t e r n a t i v e course below, Possibly t h e French Government might h a v e o t h e r a d d i t i o n s t o s u g g e s t , and. t h e M i n i s t e r f o r League o f N a t i o n s A f f a i r s m i g h t , at h i s d i s c r e t i o n , remind them t h a t t h e y had n e v e r made any c o n c e s s i o n t o I t a l y comparable w i t h t h e B r i t i s h c e s s i o n of Jubaland. OR f n) Vhe c a r r y i n g out by t h e League t h e p r o c e d u r e l a i d down i n t h e i n c l u d i n g , i n t h e last, r e s o r t , by t h e members o f t h e League o f tions thereunder. of Nations of Covenant, consideration their obliga­ I n any r e f e r e n c e t o t h i s l a t t e r a s p e c t t h e M i n i s t e r f o r League o f N a t i o n s A f f a i r s should be guided, by t h e a p p r o v a l g i v e n by t h e C a b i n e t t o t h e l i n e s suggested, by t h e S e c r e t a r y of S t a t e f o r F o r e i g n A f f a i r s on Wednesday, - J u l y 2 4 t h , where he i n d i ­ cated t h a t i n d i s c u s s i o n s w i t h t h e French "The u n d e r l y i n g assumption would b e t h a t b o t h Powers r e a l i s e d , t h e i r o b l i g a t i o n s and w e r e j o i n t l y i n t e r e s t e d t o f i n d a way out o f -the d i f f i c u l t y " . Ann 14 ( The M i n i s t e r f o r League o f N a t i o n s A f f a i r s w o u l d , of c o u r s e , "be on h i s guard a g a i n s t g i v i n g t h e French Government any" o p p o r t u ­ n i t y t o s u g g e s t t o I t a l y t h a t we w e r e p r e s s i n g them t o commit t h e m s e l v e s t o sanctions. Any d e t a i l e d ' d i s c u s s i o n o f s a n c t i o n s should be a v o i d e d , as t h i s does not a r i s e a t p r e s e n t and, i f i t a r i s e s at a l l , belongs r a t h e r to d i s c u s ­ s ions a t a l a t e r ' s t a g e . ( c ) That t h e M i n i s t e r f o r League o f N a t i o n s A f f a i r s who would b e accompanied by t h e Permanent Under Secretary of State for Foreign A f f a i r s in P a r i s , s h o u I d , as f a r as p o s s i b 1 e , keep i n touch w i t h t h e Prime M i n i s t e r , who would, be in France a t t h e t i m e o f t h e M e e t i n g s , and i n p a r t i c u l a r should arrange t o r e p o r t the p o s i t i o n v e r b a l l y t o him a f t e r t h e c o n c l u s i o n o f t h e M e e t i n g s , i n o r d e r t h a t he might d e c i d e w h e t h e r , and when, t o summon a M e e t i n g o f t h e Cabinet. I t appeared p r o b a b l e t o t h e M i n i s t e r s p r e s e n t t h a t i f t h e P a r i s M e e t i n g s did. not produce a s a t i s f a c t o r y r e s u l t , a M e e t i n g o f t h e C a b i n e t would be r e q u i r e d b e f o r e t h e end o f A u g u s t , when i m p o r t a n t d e c i s i o n s might be necessary. Lake Tsana . (d) That i f t h e t h r e e - P o w e r C o n f e r e n c e should n o t a eh i ev e a s a *" i s fa c t o ry r e s u l t , t h e q u e s t i o n o f Lake Tsana would become i m p o r t a n t , and. t h e M i n i s t e r f o r League o f N a t i o n s A f f a i r s s h o u l d h a v e d i s c r e t i o n t o warn t h e I t a l i a n r e p r e s e n t a t i v e t h a t t h i s was an important British interest. He might r e p e a t t h e w a r n i n g g i v e n by S i r Edward Grey ( a f t e r w a r d s E a r l Grey o f F a l l o d o n ) i n 1915: (e) That i n t h e meantime t h e F o r e i g n O f f i c e ­ s h o u l d examine t h e q u e s t i o n o f Lake Tsana i n i t s p o l i t i c a l and. t e c h n i c a l a s p e c t s , and c o n s u l t t h e D e f e n c e Departments on any a s p e c t s o f t h e au es t i o n whi ch m i g h t cone er n them: Defence A s p e c t s . That t h e S e c r e t a r y t o t h e C-abinet and Committee o f I m p e r i a l D e f e n c e should, i n f o r m t h e C h i e f s o f S t a f f Sub-Committee t h a t t h e P r i m e M i n i s t e r would, be g l a d i f t h e y would c o n s i d e r t h e following questions:­ (f) (1) A t once t o examine t h e q u e s t i o n o f what t h e p o s i t i o n would b e i f I t a l y t o o k t h e b i t between h e r t e e t h : (S) On t h e assumption that- t h e c o n t i n g e n c y r e f e r r e d t o i n ( l ) might take p l a c e , a r e t h e r e any s t e p s t h a t ought t o be t a k e n a t once t o p r o v i d e a g a i n s t i t ? In t h i s l a t t e r connection the Secretary of s t a t e f o r Foreign A f f a i r s said that the F o r e i g n O f f i c e would h a v e no o b j e c t i o n t o any r e l a t i v e l y q u i e t s t e p s b e i n g , t a k e n , such a s , f o r example, t h e r a i s i n g of the a n t i - a i r c r a f t , d e f e n c e s o f M a l t a t o t h e approved scale. They would n o t even o b j e c t i f t h e movement o f a n t i - a i r c r a f t guns became p u b l i c . Whitehall Gardens. August 6, 1935. S.W.1 THIS DOCUMENT IS T H E PROPERTY OF HIS BRITANNIC MAJESTY'S GOVERNMENT TO BE K E P T U N D E R L O C K A N D K E Y . It is requested that special care may be taken to ensure the secrecy of this document. COPY N O . ?.A./H/7.. C A B I N E T , I T A L 0 -ABYS S I 111 AH D I S P U T E . C o n f e r e n c e o f M i n i s t e r s h e l d a t N o . 10 Dovming S t r e e t Wednesday5 ^ l s t A u g u s t 1935 at 5.0 p.m. s P The on s R E S E N T. Sight Hon. Stanley Prime M i n i s t e r . Baldv/in M.P. ( i n the Chair) s 9 The R i g h t H o n . J . R a m s a y MacDonaldj M.P. L o r d President I of t h e C o u n c i l . Chamberlain The R i g h t Hon. N e v i l l e M.P. s C h a n c e l l o r o f t h e Exchequer. The R i g h t H o n . S i r J o h n S i m o n , ; G.C.S.I. , K . C . V . 0 . , O.B.E. , K.C. j M . P . , S e c r e t a r y of : S t a t e f o r t h e Home D e p a r t m e n t . The R i g h t Hon. S i r Samuel H o a r e Bt. j G o C . S . 1 . j G.B.E. j C . M . C M.P. Secretary of otate f o r Foreign Affairs. 9 s The R i g h t Hon. Anthony E d e n , M.C. M.P. , M i n i s t e r f o r League o f Nations Affairs. Th "OLLOY/ING WERE A L S O Sir f i l l i a m M a l k i n , K . C . M . G . , \ G.B. , K . C . 3 L e g a l Adviser., I Foreign O f f i c e (for part of 3 time) . jp' Francis Hemming Ip- W.D.Wilkinson s 9 / s PRESENT: M r . W. S t r a n g e C M . G . Foreign Counsellor ( f o r part of time) . 5 9 Office J oint C.B.E..... D . S . O . , M.C. s 9 ) Secretaries. 9 The M e e t i n g was h e l d f o r t h e purpose o f d i s c u s s i o n of dispute5 extent of the l a t e s t phase o f the i n t e n t i o n b e i n g t o the Italo-Ethiopian c l e a r t h e ground t o i n o r d e r t o e x p e d i t e the b u s i n e s s the f o l l o w i n g a preliminary at the Cabinet day. THE MINISTER FOR LEAGUE OF NATIONS AFFAIRS c o l l e a g u . e s an account Conversations some of the p r o c e e d i n g s in P a r i s . The o r d e r of ti at the ave his Three-Power e v e n t s had been as follows .­ 15th A u g u s t . T n i s day had been d e v o t e d t o conversationsi preparatory had seen S i g n o r A l o i s i Aloisi informal M. L a v a l and Mr. Eden separately. Signor had put f o r w a r d as a b a s i s f o r discussion t h e s u g g e s t i o n t h a t t h e U n i t e d Kingdom and F r a n c e should g i v e I t a l y ' s need f o r some p u b l i c expansion, recognition and should of recognise a l s o t h a t I t a l y had a s p e c i a l p o s i t i o n , both economic and p o l i t i c a l , Signor Aloisi had made i t in Abyssinia. c l e a r that economic concessions i n A b y s s i n i a would be of no v a l u e to I t a l y t h o s e c o n c e s s i o n s had the b a c k i n g of military had o f f e r e d co-operation at an assurance o f suggestions of Signor Italian Geneva. Mr. Eden had made i t giving Italian garrison. In return for these declarations Aloisi an unless clear that the ( w h i c h amounted p r a c t i c a l l y Italy a C l a s s C Mandate) above to of:': e r e d no hope a solution. 16th A u g u s t . plrst r e g u l a r s e s s i o n o f the Mr. Eden had made i t clear that Conference, this country would not endorse an I t a l i a n m i l i t a r y occupation of and economic Abyssinia. M. L a v a l had p r o d u c e d c e r t a i n Quai d'Orsay d r a f t s , which S i g n o r A l o i s ! had. d e c l i n e d t o accept. The B r i t i s h arid F r e n c h e x p e r t s had then b e e n i n v i t e d t o work out a new d r a f t . Before this"draft h a d t a k e n shape M. L a v a l had sent a M e s s a g e t o the French Bmbassy i n Rome, i n s t r u c t i n g them t o warn Signor Mussolini that represent the l i m i t of our f o r t h c o m i n g v ould offer c o n c e s s i o n open t o ; us. The C o n f e r e n c e had resumed as soon as t h e experts' draft had t a k e n c o n c r e t e formj t h i s had been t h e draft o f which t h e s u b s t a n c e had a p p e a r e d i n t h e newspapers.. After Signor A l o i s i had. been induced t o H i s main o b j e c t i o n s d i s p l a y i n g much u n w i l l i n g n e s s , to the d r a f t send i t had been t h a t made no p r o v i s i o n f o r any s p e c i a l and m i l i t a r y in Abyssinia^ it position Italian that on t h e independence in it economic on t h e r e s e r v e d B r i t i s h and F r e n c h r i g h t s and l a i d s t r e s s t o Rome. contrary, Abyssinia, and i n t e g r i t y of country. 17th A u g u s t . No took re-ply was r e c e i v e d from I t a l y and no m e e t i n g place. 18th A u g u s t . Signor A l o i s i had s e p a r a t e interviews t h e U n i t e d Kin.gd.om and French D e l e g a t e s . communicated the I t a l i a n reply was t h a t t h e A n g l o - F r e n c h to both. with He had Its substance p r o p o s a l was u n a c c e p t a b l e of view. to I t a l y , from e v e r y p o i n t To Italy, Abyssinia r e p r e s e n t e d a menace t o he d e s t r o y e d , whereas t h e A n g l o - F r e n c h v i e w was axjparently Abyssinia s h o u l d be g i v e n i n c r e a s e d a u t h o r i t y that and p l a c e d on an e q u a l i t y w i t h t h e t h r e e P o v e r s now i n Conference. G-ignor M u s s o l i n i make a statement of h i s c a s e at reserved, his r i g h t to Geneva. I n re-ply t o an e n q u i r y w h e t h e r he had any alternative s u g g e s t i o n s t o put f o r w a r d , had t o l d Mr. hden t h a t exactly as i t the I t a l i a n view Signor Aloisi remained had been d e v e l o p e d t o him ( M r . Eden) + earlier i n the year. A hreak had now k e e n r e c o g n i s e d t o he inevitable and the Communique which had a p p e a r e d i n the Press had b e e n drawn u p . 19th A u g u s t . The C o n f e r e n c e b e i n g o v e r , G i g n o r A l o i s i Mr. Eden had t a k e n t h e i r f a r e w e l l s had convened i t . a further o f M. L a v a l , who No p a r t i c u l a r meaning need b e attached t o the f a c t for and that Sirnor A l o i s i t a l k w i t h Mr. Eden t h a t p a r t e d on f r i e n d l y terms t h e p r e v i o u s had n o t day - t h e y had evening. Mr. D d e n ' s t a l k w i t h M. L a v a l had made i t that the l a t t e r had n o t y e t implications of fully asked thought out t h e M e e t i n g on September 4 t h . clear the He had . s a i d , h o w e v e r , t h a t P r a n c e d i d not want t o turn her b a c k on t h e U n i t e d Kingdom and what i t begged, nevertheless, realise prance's that stood f o r 5 t h e B r i t i s h Government he would oVifficulties. * The M i n i s t e r f o r League of N a t i o n s A f f a i r s reminded h i s c o l l e a g u e s t h a t t h e I t a l i a n -proposal, as Gignor M u s s o l i n i had d e v e l o p e d i t i n t h e S p r i n g o f the p r e s e n t y e a r , had b e e n t h a t I t a l y should, a c q u i r e t h e s o v e r e i g n t y o v e r a c i r c u l a r a r e a i n c l u d i n g about t w o - t h i r d s of t h e p o p u l a t i o n of A b y s s i n i a - i n f a c t o v e r a l l A b y s s i n i a except a c e n t r a l p l a t e a u . Over t h i s p l a t e a u I t a l y w i s h e d for a Protectorate. These w e r e G i g n o r M u s s o l i n i ' s p r o p o s a l s f o r a peacefully negotiated settlement. On t h e o t h e r hand, he had s a i d t h a t i f i t came t o a war he would w i p e A b y s s i n i a o f f t h e map. THE- SECRETARY OF STATE FOR FOREIGN AFFAIRS t h e harmonious A n g l o - F r e n c h f r o n t which had been m a i n t a i n e d up t o t h e p r e s e n t t i m e as an u n e x p e c t e d l y It regarded good factor. had b e e n u n d e r s t o o d i n P a r i s t h a t t h e I t a l i a n s had put every sort side; of pressure on Mo L a v a l t o come down on t h e i r t h e y had b e e n g i v i n g i t out i n P a r i s that B r i t i s h Empire was i n a s t a t e of decline, the m i l i t a r y p o i n t of v i e w . It was s i g n i f i c a n t L a v a l had n o t l i s t e n e d t o them. possible to the especially I t was n o t , from t h a t M. of course, judge how l o n g the p r e s e n t u n i t e d fx ont would j hold. THE LORD PRESIDENT OF THE COUNCIL e n q u i r e d w h e t h e r Mo L a v a l had g i v e n any i n d i c a t i o n o f h i s p r o b a b l e a t Geneva on September attitude 4th. THE MINISTER FOR LEAGUE OF NATIONS AFFAIRS t h a t he h i m s e l f had r e c e i v e d no i n d i c a t i o n . Vansittart, Sir Robert h o w e v e r , had o b t a i n e d t h e i m p r e s s i o n fro:m h i s talks with M e Leger p a r t i n economic t h a t F r a n c e would be p r e p a r e d t o Paris. of t h e e x t e n t o f The I t a l i a n s A b y s s i n i a as t h e f i r s t of seizing take sanctions. I n c i d e n t a l l y S i r R o b e r t had o b t a i n e d v e r y impressions said the I t a l i a n propaganda had b e e n g o i n g in about s p e a k i n g stage in t h e i r African of renewing the g l o r i e s of conquests; d o m i n a t i o n i n t h e M e d i t e r r a n e a n from hands, and i n g e n e r a l definite of British the Roman Empire. THE PRIME MINISTER e n q u i r e d w h e t h e r S i r Hoare has any i n f o r m a t i o n r e g a r d i n g Germany's Samuel intentions. THE SECRETARY OF STATE FOR FOREIGN AFFAIRS that the Prime M i n i s t e r ' s o f how f a r q u e s t i o n r a i s e d t h e whole t h e non-Member S t a t e s would p a r t i c i p a t e economic s a n c t i o n s . problem in The non-Member S t a t e s which i t n e c e s s a r y t o c o n s i d e r were t h e U n i t e d S t a t e s , Japan and B r a z i l . said was Germany, H i s v i e w v/as t h a t be i n d u c e d t o t a k e p a r t chances of their the l a t e s t these S t a t e s might i n economic conceivably sanctions. d o i n g so w e r e , he t h o u g h t , The improved b y investigations of the F o r e i g n O f f i c e , w h i c h d i s c l o s e d the p o s s i b i l i t y of a p p l y i n g economic i n two s e p a r a t e s t a g e s . While stage, participate simply r e f u s e greater effect part i n a second and mere stage - i . e . action. . not p o s i t i v e . i n sanctions Such measures might be t o a c c e p t i m p o r t s from I t a l y . negative, If In particular,he had b e e n i n touch w i t h 0 The l a t t e r ' s were t a k i n g the A b y s s i n i a n q u e s t i o n v e r y d i d not in the f i r s t appear the considerable. U n i t e d S t a t e s Charge" d ' A f f a i r e s their participation might the the w o r l d went even as f a r as t h a t on I t a l y might b e sanctions involving F o r e x a m p l e , the S t a t e s p a r t i c i p a t i n g of of t h e r e v/as no r e a s o n why t h e y s h o u l d n o t in a f i r s t no b e l l i g e r e n t sanctions t h e r e c o u l d b e no hope non-member S t a t e s p a r t i c i p a t i n g stringent had the Government seriously, stage of and economic inconceivable. THE LORD PRESIDENT OF THE COUNCIL enquired w h e t h e r S i r Samuel Hoare had had i n mind t h a t t h e s t e p refusing second t o e x p o r t t o I t a l y might b e r e s e r v e d f o r of the stage. THE SECRETARY OF STATE FOR FOREIGN AFFAIRS was i n c l i n e d t o t h i n k t h a t t h i s might be w i s e . Obviously such a s a n c t i o n would be v a s t l y more e f f e c t i v e refusal t o admit Minister than a imports. The S e c r e t a r y o f S t a t e went on t o say t h a t the f o r League after of Nations A f f a i r s and h i m s e l f , c o n s i d e r i n g the p o s i t i o n a t home and a b r o a d , w e r e in advising their colleagues essential to follow procedure in this c r i s i s . clear t h a t i t was n o t h i n g l e s s t h e r e g u l a r League o f than Nations The C o u n c i l M e e t i n g on September 4 t h was t h e n e c e s s a r y f i r s t t h i s M e e t i n g might t a k e s e v e r a l turns; step. one Events at possibility was t h a t t h e y might d e v e l o p i n the f o l l o w i n g First Stage stages. R e p o r t on the T h r e e Power C o n v e r s a t i o n s in P a r i s - i f possible a J o i n t Report b y Mr. Eden and M. L a v a l . Second S t a g e . I t a l i a n Statement ( p r o b a b l y l e n g t h y ) t h e i r c a s e and A b y s s i n i a n answer. Third Stage. C o n s i d e r a t i o n o f t h e two c a s e s b y t h e League o f N a t i o n s C o u n c i l ( p o s s i b l y a s s i s t e d b y a Sub-Committee) and pronouncemento The f a c t must b e f a c e d t h a t a t any t i m e t h e s e p r o c e s s e s t h e news might a r r i v e during t h a t war had b e g u n . The f o l l o w i n g m a t t e r s would then a t once be added t o a l r e a d y under consideration: ( a ) Whether A r t i c l e 1 6 * of t h e C o v e n a n t v i o l a t e d , and i f so b y whom. or (c) I n the e v e n t o f economic s a n c t i o n s being­ found d e s i r a b l e , the q u e s t i o n w h e t h e r a l l Member S t a t e s w e r e p r e p a r e d t o c o - o p e r a t e . (d) The f u r t h e r q u e s t i o n o f what non-Member S t a t e s were prepared t o c o - o p e r a t e . (e) The q u e s t i o n w h e t h e r the non c o - o p e r a t i o n o f c e r t a i n S t a t e s was l i k e l y t e make economic s a n c t i o n s o f no a c c o u n t . stage i n t h e M e e t i n g t h e q u e s t i o n was r a i s e d ( i n p a r t i c u l a r by the C h a n c e l l o r t h e Home S e c r e t a r y ) o f t h e Exchequer and w h e t h e r S i r Samuel H o a r e ' s t h a t economic s a n c t i o n s might be d i v i s i b l e stages,of actual increasing stringency,was terms o f A r t i c l e suggestion i n t o two o r more consonant w i t h the 16 ( s e e A p p e n d i x ) . I t was prima f a c i e difficult to agree that this c o u l d be s o , h a v i n g r e g a r d t o such phrases as " s h a l l f a c t o be deemed t o have committed an a c t all those had b e e n ( b ) What economic and m i l i t a r y a c t i o n c o u l d s h o u l d be t a k e n . At this o t h e r Members o f o f war t h e L e a g u e , whic^h h e r e b y immediately to subject financial of it t o the severance of ipso against undertake all trade relations". + F o r A r t i c l e 16 o f the Covenant s e e A p p e n d i x to the present Minutes. er THE MIElSTEE FOR LEAGUE OE NATIONS AFFAIRS that said the answer t o t h e s e doubts was t o be found i n the Resolutions regarding the i n t e r p r e t a t i o n of A r t i c l e 16 which t h e League o f N a t i o n s Assembly a d o p t e d i n 1921. C e r t a i n o f t h e s e R e s o l u t i o n s were i n t e n d e d t o amendments t o A r t i c l e into force since ratified.. 16^ as such t h e y had n e v e r the r e q u i s i t e Others of become come number o f S t a t e s had not the 1921 R e s o l u t i o n s were specifically adopted by t h e Assembly as a i d s t o t h e a p p l i c a t i o n o f Article. The p r e c i s e Resolutions l e g a l p o s i t i o n of t h e s e rules f o r the League. It was i n t h e l i g h t R e s o l u t i o n s ; , among t h o s e j u s t the F o r e i g n O f f i c e of t h e y could be t r e a t e d e x p e r t s had a d v i s e d economic s a n c t i o n s by s t a g e s was A further as material of t h i s was f a r were e n t i t l e d certain to that application the c o n s i d e r a t i o n was t h a t at the the time expectation universal. from b e i n g t h e case and t h e y to interpret A r t i c l e 16 i n t h e l i g h t of fact. THE HOME SECRETARY was i n c l i n e d extent. were n o t He was n o t y e t satisfied;, c e r t a i n s t e p s such as " t h e or f i n a n c i a l to a g r e e , t o a however 9 that certain there severance of a l l r e l a t i o n s " which were o f trade automatic a p p l i c a t i o n and i n no way dependent on t h e " s t a g e s " economic s a n c t i o n s which the C o u n c i l might s that 9 legitimate. had been t h a t membership o f t h e League would be At present the referred when t h e League Covenant had been framed that there g u i d a n c e recommended t o t h e C o u n c i l and to Members o f specific latter was somewhat u n c e r t a i n but on the whole was no r e a s o n to doubt t h a t the of recommend. The more i m p o r t a n t o f these R e s o l u t i o n s w i l l reproduced i n Appendix V t o C P . 1 6 9 ( 3 5 ) . be found THE SECRETARY OF STATE FOR FOREIGN AFFAIRS , t u r n i n g t o the c o n v e r s a t i o n s w i t h the l e a d e r s o f non-Government p a r t i e s which had taken p l a c e , left w i t h the impression that public opinion against repudiated to s a y , i t s its s a i d t h a t he had been t h e r e would be a v/ave o f the Government i f it o b l i g a t i o n s under A r t i c l e obligations under t h e p r i n c i p l e : i 16 - t h a t was of collective r e s p o n s i b i l i t y , on the a s s u m p t i o n t h a t France would go as f a r as we were p r e p a r e d t o d o . It was abundantly c l e a r t h a t the o n l y s a f e line for His Government was t o t r y out t h e r e g u l a r League o f Majesty' Nations procedure. Of c o u r s e , i f France found i t to extreme measures., t h e r e " p u t t i n g her i n the dock". f o r us be d e s i r a b l e / t o to Member S t a t e s were r e a d y t o of On the o t h e r h a n d , i t to t h e e f f e c t s proceed c o u l d be no q u e s t i o n make a s t a t e m e n t a t some s t a g e September p r o c e e c ! i n g s we a l s o were impossible that i f c a r r y out t h e i r in all to obligations, ready. the f u l l be admitted;, h o w e v e r , be c o r r e s p o n d i n g l y not be s u r p r i s e d i f , managed t o p u l l public off economic s a n c t i o n s . that slow in producing e f f e c t s i n t h e meantime, a great It must a piece-meal procedure initial the would and he would Italians success. It t o commend t h e p i e c e - m e a l p r o c e d u r e opinion i n the c o u n t r i e s sanctions. he the a d v a n t a g e s o f p r o c e e d i n g by stages i n the matter of be d i f f i c u l t the other THE LORD PRESIDENT OF THE COUNCIL s a i d t h a t recognised would co-operating in might to the ­ THE HOME SECRETARY r a i s e d t h e q u e s t i o n whether i t d e s i r a b l e t o make any pronounoement Majesty's on b e h a l f of Government d u r i n g the i n t e r v a l b e f o r e was His 4th September. THE SECRETARY OF STATE FOR FOREIGN AFFAIRS thought better to refrain from any p u b l i c it statement. A t t h i s s t a g e S i r W i l l i a m M a l k i n and Mr. S t r a n g e n t e r e d t h e M e e t i n g 7 - THE SECRETARY OF STATE FOR FOREIGN AFFAIRS S i r W i l l i a m M a l k i n and Mr. S t r a n g o f t h e informed difficulty which M i n i s t e r s p r e s e n t had found i n r e c o n c i l i n g A r t i c l e with the piece-meal method o f a p p l y i n g economic 16 sanctions which appeared t o be c o n t e m p l a t e d by t h e 19S1 R e s o l u t i o n s SIR WILLIAM MALKIN thought t h a t t h e a c t u a l certain of helpful terms of the i n t e r p r e t a t i v e R e s o l u t i o n s were v e r y in this connection. Resolution No.l. read as follows:­ " T h e r e s o l u t i o n s and the p r o p o s a l s f o r amendments t o A r t i c l e 16 which have been adopted by t h e Assembly s h a l l , s o l o n g as the amendments have not been put i n f o r c e i n the form r e q u i r e d by t h e Covenants c o n s t i t u t e r u l e s f o r g u i d a n c e which the Assembly recommends as a p r o v i s i o n a l measure t o the C o u n c i l and t o the Members o f the League i n c o n n e c t i o n w i t h the a p p l i c a t i o n of A r t i c l e 16. i f R e s o l u t i o n No.4. contained the wordss­ " I t i s t h e d u t y o f each Member o f the League t o d e c i d e f o r i t s e l f whether a b r e a c h o f the Covenant has been committed . . . . . 11 9 R e s o l u t i o n Nov..6. read as follows:­ " I f the Council i s of o p i n i o n that a S t a t e has "been g u i l t y o f a b r e a c h o f t h e Covenant the Minutes o f the m e e t i n g a t which t h a t o p i n i o n i s a r r i v e d a t s h a l l be i m m e d i a t e l y s e n t t o a l l Members o f the League, accompanied by a s t a t e m e n t o f r e a s o n s and by an i n v i t a t i o n t o take a c t i o n a c c o r d i n g l y . The f u l l e s t p u b l i c i t y s h a l l be g i v e n to this decision." s Article sufficient to 9 provided for reasons,of the p r i n c i p l e co-operating of in i t s Article the p o s s i b i l i t y , f o r c e r t a i n S t a t e s remaining economic p r e s s u r e but not various loyal themselves exercise. 14 was v e r y r e l e v a n t . It r e a d as followss­ " I n cases o f p r o l o n g e d a p p l i c a t i o n o f economic p r e s s u r e , measures o f i n c r e a s i n g s t r i n g e n c y may be t a k e n . The c u t t i n g ­ o f f of t h e food supplies o f t h e c i v i l p o p u l a t i o n of the d e f a u l t i n g S t a t e s h a l l be r e g a r d e d as an e x t r e m e l y d r a s t i c measure, which s h a l l o n l y be a p p l i e d i f t h e o t h e r measures a v a i l a b l e a r e c l e a r l y inadequate." THE SECRETARY OP STATE FOR FOREIGN AFFAIRS thought i t niight now be a c c e p t e d t h a t t h e sweeping p h r a s e s Article severance of 16 financial light of such as " t h e 9 trade r e l a t i o n s " were t o be i n t e r p r e t a t e d the " g l o s s e s " o f i t would be l e g i t i m a t e imports while 1921. to refuse continuing the C o u n c i l particular sanction. who f o l l o w e d of in F o r example, he to r e c e i v e to export SIR WILLIAM MALKIN a g r e e d t h a t case,if all to of or the thought Italian Italy. t h i s would be t h e the League had recommended t h a t I n such an e v e n t the C o u n c i l ' s advice t h e Membe r would have States sat i s f i e d their obligations under A r t i c l e 16. THE LORD PRESIDENT OF THE COUNCIL r e c a l l e d fact that t h e s i t u a t i o n o f 1924 been made t o the r e s u l t close of a 9 i n which an a t t e m p t had gap i n the C o v e n a n t the d e l i b e r a t i o n s 3 had been o f 1921. THE HOME SECRETARY wondered whether i t to g e t the round t h e f o l l o w i n g words i n A r t i c l e was possible 16s­ " i t s h a l l i p s o f a c t o be deemed t o have committed an a c t o f war a g a i n s t a l l o t h e r Members o f the L e a g u e " . WILLI.AM MALEIN s a i d t h a t t h i s p o i n t was met by SIR the t h i r d o f guidance. the R e s o l u t i o n s adopted as r u l e s It read as for followss­ "The u n i l a t e r a l a c t i o n o f t h e d e f a u l t i n g S t a t e cannot c r e a t e a s t a t e o f war; i t m e r e l y e n t i t l e s the o t h e r Members o f the League t o r e s o r t t o a c t s o f war or to declare themselves i n a s t a t e o f War w i t h the c o v e n a n t - b r e a k i n g S t a t e ? but i t i s i n a c c o r d a n c e w i t h t h e s p i r i t o f the Covenant t h a t t h e League o f N a t i o n s should, a t t e m p t a t l e a s t a t the o u t s e t t o a v o i d w a r , and t o r e s t o r e p e a c e by economic p r e s s u r e . " 9 3 THE CHANCELLOR OF THE EXCHEQUER wondered any o t h e r ourselves c o u n t r y was i n t h e p o s i t i o n 9 whether i n which we found t h a t we had s u p p l i e d I t a l y w i t h c o a l t o v a l u e o f £ 5 0 0 0 0 0 and not y e t o b t a i n e d payment and 9 a break o c c u r r e d , It possibly the 9 if would presumably n e v e r do s o . was s u g g e s t e d t h a t a s i m i l a r p o s i t i o n might o b t a i n with regard to o i l imports i n t o Italy from Rumania. THE HOME SECRETARY e n q u i r e d whether t h e F o r e i g n had c o n s i d e r e d might d e c i d e a situation i n which S i g n o r t h a t a w a i t i n g game s u i t e d h i s Mussolini interests?and i n which he would a c c o r d i n g l y not s t r i k e u n t i l c l o s e o f t h e September d e l i b e r a t i o n s -11­ at Office Geneva. after the THE SECRETARY OF' STATE FOR FOREIGN AFFAIRS s a i d as he r e a d t h e s i t u a t i o n , I t a l y w i t h i n two o r t h r e e weeks o f of go t o war September 4 t h . In r e p l y to a q u e s t i o n , the function would p r o b a b l y that SIR WILLIAM MALKIN s a i d the League C o u n c i l that in the matter of a breach of t h e Covenant was o n l y t o g i v e Member of t h e League had then t o d e c i d e t h e q u e s t i o n an Opinionf each for itself. THE HOME SECRETARY p o i n t e d out t h a t States in practice the r e p r e s e n t e d on t h e C o u n c i l would a l r e a d y b e p u b l i c l y committed b y t h e i r v o t e s on t h e o p i n i o n referred to * The Committee were i n f o r m e d t h a t t h e Members of Council Chile, at t h e p r e s e n t Czecho-Slovakia time w e r e A r g e n t i n a , Australia, , Denmark, F r a n c e , Great Mexico, Portugal, Poland, Russia, Britain, Spain and T u r k e y . SIR WILLIAM MALKIN c a l l e d a t t e n t i o n t o one of proposed amendments t o A r t i c l e i n c l u d e d the f o l l o w i n g the the 16 a d o p t e d i n 1921, which words.­ " I n d e l i b e r a t i o n s on t h i s q u e s t i o n i n t h e C o u n c i l , t h e v o t e s o f Members o f t h e League a l l e g e d t o have r e s o r t e d t o war and. o f Members a g a i n s t whom such a c t i o n was d i r e c t e d s h a l l not be c o u n t e d " . The f a c t t h a t t h i s amendment remained might b e taken as meaning t h a t offending S t a t e would p r e v e n t an o p i n i o n . The c o n t r a r y , unratified the adverse vote of the C o u n c i l from the recording h o w e v e r , was a r g u a b l e . THE SECRETARY OP STATE FOR FOREIGN AFFAIRS s a i d it its was now c l e a r t h a t each Member S t a t e must own d e c i s i o n . which t h e y must a l l relations take S t a t e s w e r e n o t i n the p o s i t i o n simultaneously sever that in trading­ etc. SIR WILLIAM MAI-KIN p o i n t e d out t h a t s a n c t i o n s would be i n e f f e c t i v e in practice u n l e s s t h e y were concerted and. t h a t t h e b e s t p l a c e f o r to be at a meeting of concerting t h e League them would appear Council. THE LORD PRESIDENT OP THE COUNCIL was s t i l l clear that not t h e o p i n i o n of t h e League C o u n c i l was n o t t o a certain extent be d i f f i c u l t an o p e r a t i v e to get opinion. He thought i t o v e r t h e words - h e r e b y immediately to subject'" in A r t i c l e of the cleared guidance. recommend t h e d a t e on which economic p r e s s u r e , under A r t i c l e i s t o b e begun, and s h a l l g i v e n o t i c e t h e Members of t h i s was the R e s o l u t i o n s adopted f o r T h i s r e a d "The C o u n c i l s h a l l t h e enforcement undertake 16. THE HOME SECRETARY p o i n t e d out t h a t up by t h e E i g h t h of would of 16, that date t o all League". I n r e p l y t o a q u e s t i o n , TEE SECRETARY OP STATE FOR FOREIGN AFFAIRS a g r e e d t h a t a p p l i c a t i o n of economic our a t t i t u d e on the sanctionsmust be piecemeal fundamentally a f f e c t e d by the v i e w t a k e n by t h e non-Member States. THE CHANCELLOR OF THE EXCHEQUER thought find ourselves in considerable d i f f i c u l t i e s t h a t we might even i f the U n i t e d S t a t e s and Japan, f o r e x a m p l e , were induced to prohibit The p o s s i b i l i t y still trade with I t a l y . remain t h a t render the the a c t i v i t i e s of German s h i p p i n g might sanction meaninglessj s h o u l d have t o b e v e r y careful would if i n such a s i t u a t i o n we we w e r e not t o o u r s e l v e s i n war w i t h b o t h Germany and land Italy. THE MINISTER FOR LEAGUE OF NATIONS AFFAIRS hoped t h a t in p r a c t i c e economic s a n c t i o n s would not be begun u n t i l a Committee o f t h e League C o u n c i l had c a r e f u l l y out t h e methods o f their application - had a s c e r t a i n e d d e f i n i t e l y S t a t e s were g o i n g to THE SECRETARY 0 that what a t t i t u d e worked i s , until it t h e non-Member adopt. rn STATE FOR FOREIGN AFFAIRS s a i d t h a t such an i n v e s t i g a t i o n by e x p e r t s might v e r y p r o b a b l y lead t o a d e c i s i o n not t o impose economic sanctions. THE PRIME MINISTER e n q u i r e d w h e t h e r t h e could hind the United S t a t e s President i n the m a t t e r o f economic sanctions. THE CHAHCE1-L0E OP THE EXCHEQUER was u n c e r t a i n o f answer. If it were f o u n d , however, that the c o u l d n o t do so t h e s i t u a t i o n would he much As he ( t h e C h a n c e l l o r situation it (1) of President simplified. the Exchequer) saw t h e c o u l d he summed up i n t h e f o l l o w i n g Even the m i l d e s t the statement*­ economic s a n c t i o n might i n the end l e a d t o w a r . (2) If t h i s were t r u e , s t e p s ought t o he t a k e n t o put our armed f o r c e s into a state of THE SECRETARY OP STATE POR FOREIGN AFFAIRS Signor Mussolini in h i s present normal man, and i t frame was c o n c e i v a b l e innocuous a c t i o n on our p a r t , eg. agreed. of mind, was not that some a apparently­ in connection with M e d i t e r r a n e a n o r w i t h Lake Tsana, might be casus readiness. t a k e n the as a belli. THE MINISTER FOR LEAGUE OF NATIONS AFFAIRS thought even p o s s i b l e t h a t S i g n o r M u s s o l i n i might B r i t i s h d e c i s i o n to r a i s e to it ­ so r e g a r d a t h e embargo on t h e e x p o r t of arms Abyssinia. THE HOME SECRETARY c a l l e d a t t e n t i o n t o t h e f a c t A u s t r a l i a was a Member of t h e League C o u n c i l a t t h e that present time. THE SECRETARY 0 r;i STATE FOR FOREIGN AFFAIRS s a i d a t h i s m e e t i n g w i t h t h e Dominion High Commissioners day Mr. Bruce had s a i d t h a t must make a bona f i d e economic s a n c t i o n s j would b e t h a t the p r e s e n t purpose. investigation but t h a t economic in his the that that o p i n i o n t h e League i n t o the q u e s t i o n result of t h e Council of investigation s a n c t i o n s w o u l d be found u s e l e s s for S I R WILLIAM MALKIN s a i d t h a t what had been contemplated i n 1921 was t h a t t h e League C o u n c i l would have t h e of a T e c h n i c a l Committee i n i t s assistance investigation. T i l l LORD PRESIDENT 0"' THE COUNCIL was c l e a r t h a t out of the question f o r statement t h e B r i t i s h Government to the e f f e c t i n the p r e s e n t September that A r t i c l e c r i s i s , before it t o make any 16 c o u l d n o t operate t h e C o u n c i l M e e t i n g on 4th. TEE SECRETARY OP STATE EON FOREIGN AEEAIRS thought we should have t o a r r e e a form o f words v e r y c a r e f u l l y F r a n c e b e f o r e we s a i d t h a t t h e machinery o f s a n c t i o n s would n o t work; n e v e r t h e l e s s want t o keep i t was i m p e r a t i v e that with economic The T r e n c h might a g r e e t h a t would not work i n t h e p r e s e n t It was it c r i s i s , but the;/ would intact f o r use a g a i n s t t o d i s c o v e r M. L a v a l ' s Germany. intentions w i t h i n t h e n e x t 14 d a y s . THE PRIME MINISTER c a l l e d a t t e n t i o n t o M. genuine Laval s J difficulties. THE CHANCELLOR OF THE EXCHEQUER s a i d t h a t d e c i s i o n was a g a i n s t if the final economic s a n c t i o n s we should have to b e most c a r e f u l n o t t o say "we were p r e p a r e d t o use them b u t F r a n c e was n o t " . The f o r m u l a something t o t h e e f f e c t would have t o be t h a t we and F r a n c e had come t o t h e c o n c l u s i o n t h a t t h e y would not work. THE HOME SECRETARY c a l l e d a t t e n t i o n t o provisions of the K e l l o g g P a c t , under t h a t P a c t , i f from t h e f i r s t certain The s t e p s t o be one s i g n a t o r y were t o b r e a k i t u s i n g war as a i n s t r u m e n t stage of jointly of p o l i c y , were not taken by dissimilar economic s a n c t i o n s as p r o p o s e d by S i r Samuel H o a r e , THE SECRETARY OF STATE FOR FOREIGN AFFAIRS agreed. THE LORD ri^LLpENT OF THE COUNCIL that,if Italy he a g r e a t proceeded to extremes,it shock t o B r i t i s h p u b l i c would opinion no outward a c t i o n w e r e taken by H.F. it would be p o s s i b l e a c o m p l e t e l y - p a c i f i c method of sanctions against Italian He r e a l i s e d t h a t it to if Government. He had b e e n e n c o u r a g e d by t h e p r e s e n t t o hope t h a t said discussion discover applying economic trade. remained t o b e c o n s i d e r e d whether l e g i s l a t i o n (and thus t h e early would he summoning o f p a r l i a m e n t ) necessary in that case. THE CHANCELLOR OP THE EXCHEQUER e n q u i r e d what v i e w the F o r e i g n S e c r e t a r y Austen C h a m b e r l a i n ' s be a meeting of t o o k of Sir suggestion that there the s i g n a t o r i e s of the should Kellogg Pact. THE SECRETARY OF STATE FOB FOREIGN AFFAIRS thought t h a t t h i s might be a v e r y u s e f u l play at a later date. play i t at present League o f Nations. F r a n c e and o f f e n d It would be a m i s t a k e and thus t o s i d e t r a c k To do so now might Italy card to unnecessarily. to the disturb mhargo ixport jIP " firms, C THE SECRETARY OE STATE FOR FOREIGN AFFAIRS t h a t the B r i t i s h embargo would be d e f i n i t e l y Abyssinia i f necessary, Italy i t were c o n t i n u e d l o n g e r . of course, also. shared t h i s to l i f t thought unfair to I t would b e t h e embargo as regards He had b e e n g l a d t o f i n d t h a t Mr. Lansbury view. THE HOME SECRETARY a g r e e d . ifpieet. THE HOME SECRETARY c a l l e d a t t e n t i o n t o the fact t h a t , o n c e I t a l y had s t a r t e d war a g a i n s t A b y s s i n i a , she would b e e n t i t l e d under i n t e r n a t i o n a l search" B r i t i s h ships f o r situation. of law t o "visit and contraband ­ a d e p l o r a b l e T h i s would b e q u i t e a p a r t from any question blockade. SIR WILLIAM MALKIN a g r e e d . No q u e s t i o n of b l o c k a d e c o u l d a r i s e as r e g a r d s A b y s s i n i a , w h i c h was a land-locked State. THE SECRETARY OF STATE FOR FOREIGN AFFAIRS t h a t t h e p r e s e n t p o s i t i o n as r e g a r d s the British M e d i t e r r a n e a n F l e e t was t h a t the A d m i r a l t y very undesirable move i t that i t considered should remain a t M a l t a . and t h e p r e s e n t p l a n was a c c o r d i n g l y t h a t i t b a s e d on A l e x a n d r i a It retreat, s h o u l d move might then be and H a i f a . The A d m i r a l t y w e r e c o n s i d e r i n g t h e o f making t h i s move e a r l i e r than August desirability 29th, T h e r e remained a l s o f o r d e c i s i o n the question o f t h e Home F l e e t . These were n a t u r a l l y m a t t e r s f o r the C a b i n e t . d e c i s i o n by H i s c o l l e a g u e s might be i n t e r e s t e d know t h a t S i r H e r b e r t Samuel had s u g g e s t e d t h a t Mediterranean F l e e t s h o u l d be strengthened. it To t o G i b r a l t a r would b e i n t h e n a t u r e o f a t o E g y p t i a n w a t e r s on August 2 9 t h . said to the THE LORD PRESIDENT OP THE COUNCIL thought important that I t a l y s h o u l d he g i v e n no excuse f o r it saying t h a t t h e B r i t i s h F l e e t had gone to the Suez C a n a l . talti(Aircraft iGuns f o r IMalta, THE SECRETARY OF STATE FOR FOREIGN AFFAIRS s a i d and s e a r c h l i g h t s t h a t ahout 8 a n t i - a i r c r a f t g u n s / s t i l l remained t o he s e n t Malta, of despatch. t h o s e which i t had t e e n a l r e a d y d e c i d e d The r e a s o n was t h a t to to t h e 900 men r e q u i r e d t o work t h e guns w e r e R e s e r v i s t s and t h a t t h e i r occasion alarm. T h i s was a m a t t e r w h i c h would have t o he d e c i d e d hy t h e 2, W h i t e h a l l G a r d e n s , S . W . 1 . 22nd A u g u s t , 1935. Cabinet. calling up might APPENDIX. ARTICLE 16 OF THE COVENANT OE THE LEAGUE. HE terms o f Article 16 a r e as follows;­ "1. Should any Member o f t h e League r e s o r t t o war i n d i s r e g a r d o f i t s c o v e n a n t s under A r t i c l e s 12,13 or 15, i t s h a l l i p s o f a c t o h e deemed t o h a v e committed an act o f war a g a i n s t a l l o t h e r Members o f t h e L e a g u e , which h e r e b y u n d e r t a k e i m m e d i a t e l y t o s u b j e c t i t to t h e s e v e r a n c e of a l l t r a d e o r f i n a n c i a l r e l a t i ' . h s , the p r o h i b i t i o n of a l l i n t e r c o u r s e b e t w e e n t h e i r n a t i o n a l s and the n a t i o n a l s o f the covenants-breaking S t a t e , and t h e p r e v e n t i o n o f a l l f i n a n c i a l , commercial or p e r s o n a l i n t e r c o u r s e b e t w e e n t h e n a t i o n a l s of t h e c o v e n a n t - b r e a k i n g S t a t e and t h e n a t i o n a l s o f any o t h e r S t a t e , whether a Member o f the League o r n o t . o 2. I t s h a l l be t h e duty o f the C o u n c i l i n suchcs.se t o recommend t o the s e v e r a l Governments c o n c e r n e d what e f f e c t i v e m i l i t a r y , n a v a l or a i r f o r c e the Members o f t h e League s h a l l s e v e r a l l y c o n t r i b u t e t o the armed f o r c e s t o be used t o p r o t e c t the covenants o f t h e League. 3. The Members o f the League a g r e e , f u r t h e r , t h a t t h e y w i l l m u t u a l l y s u p p o r t one another i n the f i n a n c i a l and economic measures which are taken under t h i s A r t i c l e , i n o r d e r t o m i n i m i s e t h e l o s s and i n c o n v e n i e n c e r e s u l t i n g from the above measures, and t h a t they w i l l m u t u a l l y s u p p o r t one another i n r e s i s t i n g any s p e c i a l measures aimed at one o f t h e i r number by the c o v e n a n t - b r e a k i n g S t a t e , and t h a t they w i l l take the n e c e s s a r y s t e p s t o a f f o r d p a s s age through t h e i r t e r r i t o r y t o the f o r c e s o f any of t h e Members o f the League which are c o - o p e r a t i n g t o p r o t e c t the c o v e n a n t s of t h e L e a g u e . 4. Any Member o f t h e League which has v i o l a t e d any covenant o f the League may be d e c l a r e d t o be no l o n g e r a Member of the League by a v o t e o f the C o u n c i l c o n c u r r e d i n by the R e p r e s e n t a t i v e s o f a l l the o t h e r Members o f the League r e p r e s e n t e d t h e r e o n . "