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Catalogue Reference:CAB/23/82
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ppnmfBNT IS THE PROPERTY OF HIS BRITANNIC MAJESTY S GOVERNMENT).
8
T.
COPY NO.
C A B I N E T
45 ( 3 5 ) .
M e e t i n g o f t h e C a b i n e t t o be h e l d a t No. 1 0 , Downing
S t r e e t , S . W . I . , on WEDNESDAY, 9th OCTOBER, 1935,
a t 1 1 . 0 a.m.
A G E N D A .
1.
THE ITALO-ABYSSINIAN DISPUTE.
(i)
Economic and F i n a n c i a l
(Reference
Sanctions.
C a b i n e t 44 ( 3 5 )
Conclusion
l).
R e p o r t by the A d v i s o r y Committee on Trade
Q u e s t i o n s i n Time o f War.
C P . 186 ( 3 5 )
already circulated.
(ii)
The Arms Embargo.
(Reference
C a b i n e t 42 ( 3 5 )
Conclusion 2 ) .
Q u e s t i o n t o be r a i s e d by t h e S e c r e t a r y
State f o r Foreign A f f a i r s .
(iii)
of
I n f o r m a t i o n w i t h r e g a r d t o the s u p p l y o f
c o m m o d i t i e s t o the I t a l i a n C o l o n i e s i n EastAfrica.
Memorandum b y the S e c r e t a r y o f S t a t e f o r
Colonies.
C P . 188 ( 3 5 )
t o be c i r c u l a t e d .
the
DEFENCE REQUIREMENTS.
(Reference
C a b i n e t 31 ( 3 4 ) C o n c l u s i o n
l)*
N o t e by t h e Prime M i n i s t e r , c o v e r i n g Memorandum
by t h e S e c r e t a r y .
C P . 187 ( 3 5 )
circulated herewith.
3
*
ORGANISATION OF THE COAL MINING INDUSTRY.
(Reference
C a b i n e t 44 ( 3 5 )
Conclusion 4 ) .
I n t e r i m R e p o r t o f C a b i n e t Committee.
C P . 160 ( 3 5 )
already circulated.
4.
INTERNATIONAL LABOUR CONFERENCE, 1934:
RATIFICATION OF THE DRAFT CONVENTION REGARDING
BENEFIT OR ALLOWANCES TO THE INVOLUNTARILY
UNEMPLOYED.
Memorandum "by the M i n i s t e r o f Labour.
C P . 185 ( 3 5 )
already circulated.
(Signed)
M.P.A.
Secretary
W h i t e h a l l Gardens,
7th October,
S.W.I.,
1935.
to
HANKEY,
the
Cabinet.
DOCUMSOT I S THE PROPERTY OP HIS BRITANNIC MAJESTY'S GOVERNMENT).
COPY NO.
2 A B I N E T
45 ( 5 5 ) .
CONCLUSIONS o f a M e e t i n g o f the C a b i n e t h e l d
at 1 0 , Downing S t r e e t , S . W . 1 , on WEDNESDAY,
9 t h O c t o b e r 1 9 3 5 , 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 ) .
til Right Hon.
j . Ramsay MacDonald, M.P. ,
lord P r e s i d e n t o f the C o u n c i l .
The R i g h t Hon.
N e v i l l e Chamberlain, M . P . ,
Chancellor of the Exchequer.
tie Right Hon.
The Viscount 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 Simon, C C S . I . ,
K . C V . O . , O . 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
Affairs.
ftp Right Hon.
fir S&muel H o a r e , B t . , C C S . I . ,
I.B.3., C M . C , M . P . ,
Secretary
of State 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 . C , M.V.O.,
Lord P r i v y
Seal.
he Right Hon.
The Viscount H a l i f a x ,
O.C.3.I., C C I . E . , S e c r e t a r y
i f State f o r ^ s r .
The R i g h t Hon.
J . H . Thomas, M . P . ,
S e c r e t a r y of State f o r
Affairs.
T
i f Right Hon.
.
*Sir Philip C u n l i f f e - L i s t e r ,
I.B.E.. M . C . , M . P . ,
Secretary
of State f o r A i r .
Dominion
The Most Hon,
The Marquess o f Z e t l a n d , C C S . I . ,
CC.I.E. ,
Secretary of State f o r
India.
he Right Hon.
Sir- Godfrey C o l l i n s , K.B.A.. ,
C.M.G. , M.P.
Secretary ol
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 of S t a t e f o r the
Colonies,
M Right Hon.
Ifalter Runciman, M.P.
president of 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 , G.B.E.,
F i r s t L o r d o f the A d m i r a l t y
M.P.
9
9
Traae.
ft Right Hon.
' I c 1 Eustace P e r c y ,
Minister w i t h o u t P o r t f o l i o .
The R i g h t Hon.
Walter E l l i o t , M . C , M.P.,
M i n i s t e r f o r A g r i c u l t u r e and
Fi s h e r i e s.
M Right Hon.
Ipliver Stanley, M.C., M . P . ,
president o f the Board o f
location.
The R i g h t Hon.
S i r X i n g s l e y Wood, M . P . ,
M i n i s t e r of H e a l t h .
The R i g h t Hon. E r n e s t Brown, M . C ,
M i n i s t e r of Labour.
B
L O N E L
Sir M . P . A . Hankey, G . C . B . , G. C M . G. , G.C.V.O.
M.P.,
...
Secretary,
rncP!
1. The S e c r e t a r y
TTALO­
of
State for
Foreign
nlsPIN ^
informed
position a t
Geneva.
e v e n t s had been smoother than h e had
1
[previous
' Refer ence?
Cabinet 44
-(35), C o n ­
elusion
1.)
t h e C a b i n e t t h a t a t Geneva t h e c o u r s e o f
The a b s t e n t i o n s
h e had. apprehended
had not m a t e r i a l i s e d ,
to
Affairs
anticipated.
at
the
Council
and. t h e r e had. been no
opposition
the/
In accordance w i t h h i s
suggestion,
the President
t h e Assembly had sxTmrnoned t h a t body t o meet
today
t o support
the a t t i t u d e
was l i k e l y
t o b e a J o i n t Committee o f t h e C o u n c i l
t h e Assembly t o
of the Council.
of
consider sanctions.
consulted the M i n i s t e r
The n e x t
He h i m s e l f
f o r League o f N a t i o n s
of the Assembly.
given t o understand, however,
that
Affairs
set
referred.
up t h e J o i n t
interviews
of
S t a t e did. n o t
t o proceed t h e r e
of S t a t e then gave accounts
had. b e e n ,
i n London, p a r t i c u l a r s
or a r e t o b e ,
circulated.
At h i s
t h e F r e n c h Ambassador h e had p r o t e s t e d
the a t t i t u d e
o f t h e French P r e s s
no p u b l i c man, i n s p i t e
of opinions
of the B r i t i s h a t t i t u d e .
had a 4 * * y ( r e o e i v e d
of
against
expressed
Sfo^foio
that
in
presenta­
$i&lpeaw4few He
for
co-operation
in the
of an a t t a c k on a Power i n consequence o f t h e
of s a n c t i o n s .
which
t h e answer o f t h e French Government
to the B r i t i s h request
tion
of
interview
and t h e f a c t
p r i v a t e , had made i n F r a n c e a p r o p e r p u b l i c
tion
at
h e had. had w i t h t h e F r e n c h , A m e r i c a n and
I t a l i a n Ambassadors
with
just
notice.
The Secretary
"be P o s i t i o n
which would
As M. L a v a l was n o t summoning t h e French
p r o p o s e t o a t t e n d . , but was r e a d y
I in Lond. o n .
He was
Committee t o w h i c h h e had
D e l e g a t i o n t o Geneva t h e S e c r e t a r y
short
he
t h e r e w o u l d be no
r e s o u n d i n g s p e e c h e s a t t h e Assembly
merely
and
had
and M. L a v a l as t o w h e t h e r i t was d e s i r a b l e t h a t
should a t t e n d t h e M e e t i n g
step
^be French r e p l y was
intended t o be s a t i s f a c t o r y ,
event
applica­
probably
but t h e S e c r e t a r y
of S t a t e
i n d i c a t e d two p o i n t s
on which doubts a r o s e and on
which h e proposed t o make f u r t h e r
enquiries.
His communications w i t h t h e American Ambassador
had been p a r t i c u l a r l y
l a t e on Saturday
satisfactory.
m
h e y had begun
e v e n i n g w i t h a message
from t h e American S e c r e t a r y
transmitted
o f S t a t e , who had
him t h a t t h e P r e s i d e n t proposed t o i s s u e a
notified
neutrality
p r o c l a m a t i o n a t once and i n t e n d e d t o add t o i t
the
warning that
would
persons
do s o a t t h e i r r i s k ,
w h e t h e r i t would
The S e c r e t a r y
trading with b e l l i g e r e n t s
but had wanted t o know
embarrass
our p o s i t i o n a t G e n e v a .
of State for
Foreign A f f a i r s
warm t h a n k s , and had i n d i c a t e d t h a t
if
the President
a c t e d at
t h e American Ambassador,
first
once.
had sont.
i t would be
useful
On t h e p r e v i o u s
day
on t h e s t r e n g t h o f a message
from P r e s i d e n t R o o s e v e l t , had s a i d t h a t
the United
S t a t e s , so f a r
co-operate,
as t h e y c o u l d , wanted t o
and t h o Proa i d ant ^report od . t h a t .he/had r a r e l y / k n o w n
a matter
on w h i c h p u b l i c o p i n i o n i n t h e U n i t e d
was s o unanimous as t h e condemnation o f
A l t h o u g h war m a t e r i a l
i f / t h e league did s o .
prepared t o go
The S e c r e t a r y o f
learned that the President
tit
t h e method, o f
reason that
Italy
doing s o .
He had
S t a t e s was
the s i g n a t o r i e s
of
and was w i l l i n g t o
the
discuss
T h i s was i n t e r e s t i n g
i t would f a c i l i t a t e
as c a n a l i s e
opinion.
State for
of
for
the
c o - o p e r a t i o n by
Germany and Japan, as w e l l
The S e c r e t a r y
Imports
Italy.
of the United
of m o b i l i s i n g
K e l l o g g Pact against
The
not t o g i v e any
or t o the advantage o f ,
also thinking
S t a t e had
t h a t t h e American
and E x p o r t s Rank had been, o r d e r e d
the
further
even c o t t o n might be i n c l u d e d .
Ambassador had a l s o s t a t e d
credits t o ,
Italy.
only had been i n c l u d e d i n
embargo, t h e P r e s i d e n t
gathered that
States
American
Foreign
had not y e t had t i m e t o f o r m u l a t e a d v i c e t o
C a b i n e t as t o how b e s t t o f o l l o w up t h i s
-2­
Affairs
the
matter.
The I t a l i a n
l a s t Thursday,
Ambassador had wanted t o s e e him
but t h i s had. p r o v e d i m p o s s i b l e , and.
t h e Ambassador had s e e n S i r R o b e r t V a n s i t t a r t
had g i v e n him a g e n e r a l
by S i g n e r M u s s o l i n i .
taken p l a c e at
Italian
outline
of c e r t a i n
proposals
A l t h o u g h t h e i n t e r v i e w had.
12 Noon on Thursday, by which t i m e
the
o f f e n s i v e had begun and Adowa had. been bombed,
t h e Ambassador had made no r e f e r e n c e
When h e h i m s e l f
Secretary
o f S t a t e had r e f e r r e d
proposals w h i l e the I t a l i a n
women and c h i l d r e n .
penetrated
the
t o t h i s and had
of discussing
any
f o r c e s w e r e bombing
Moreover,
into Abyssinia
t-ions b e c o m e .
to these matters.
saw the Ambassador on F r i d a y
pointed, out t h e d i f f i c u l t i e s
letter
and
the further
t h e h a r d e r would
they
negotia­
The Ambassador had r e a d a l o n g
from S i g n o r M u s s o l i n i ,
in the f i r s t
private
part
of
which he had. t r i e d , t o i n d i c a t e how l i t t l e we u n d e r ­
stood the I t a l i a n p o s i t i o n ,
kind
of n e g o t i a t i o n s '
and had s u g g e s t e d
and i n t h e second p a r t
w h i c h h e had s u g g e s t e d some measure o f
some
of
demobilisation­
in the Mediterranean.
The C a b i n e t a g r e e d
—
That 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 should r e c e i v e any I t a l i a n
overtures for negotiations for a s e t t l e ­
ment o u t s i d e t h e League o f N a t i o n s v e r y
c o o l l y a t t h e p r e s e n t t i m e and. t r e a t
them w i t h c a u t i o n :
i n any e v e n t h e
must r e c e i v e d e t a i l e d p r o p o s a l s b e f o r e
the p o s s i b i l i t y of entering into nego­
t i a t i o n s could, be c o n s i d e r e d :
(V)
Thai i n r e g a r d t o p r o p o s a l s f o r measures
o f d e m o b i l i s a t i o n i n t h e Med i t e r r a n ean
the Secretary of State f o r Foreign A f f a i r s
should" make c l e a r t h a t we had only s e n t
t h e r e a b a r e minimum o f n a v a l and o t h e r
forces f o r defensive purposes:
that
t h e r e c o u l d b e no q u e s t i o n o f d i m i n i s h i n g
t h e s e f o r c e s , and we m i g h t h a v e t o send
f u r t h e r r e i n f o r c ements t o Egypt *
If,
h o w e v e r , S i g n o r M u s s o l i n i was prepared,
t o withdraw the l a r g e reinforcements
h e had sent t o L i b y a we" would c a n c e l
the despatch o f ' r e i n f o r c e m e n t s t o Egypt.
2. The S e c r e t a r y
suggested
IcpiJ^R.
A.ffairs
he Arms
Itargo,
that
of State f o r Foreign
the Minister
Affairs
f o r league of Fattens
should b e i n s t r u c t e d t o r a i s e t h e q u e s t i o n
o f t h e arms embargo a t t h e new J o i n t Committee o f
Miigerent
Ights.
t h e Assembly and C o u n c i l
t o .be s e t up a t G e n e v a , and
t h a t h i s aim should b e t o o b t a i n a c o l l e c t i v e
previous
kgf erence '
faninet. 43
?5). ConMus ion 2 . )
which would p r o b a b l y mean a r a i s i n g
embargo i n t h e c a s e o f
The C a b i n e t w e r e reminded, t h a t t h e removal
of b e l l i g e r e n t
rights,
on which t h e y w e r e g i v e n t o
had not y e t reached a g r e e m e n t .
I
Q-dimaM^
I that
of
to r a i s e the question
understand, that, t h e F o r e i g n O f f i c e
lifiti&u.
o f t h e arms
Abyssinia.
t h e arms embargo was l i a b l e
j mtK. itt
decision
and A d m i r a l t y
A s u g g e s t i o n was made
the^uer-b-lon might b e r e f e r r e d
t o t h e Law O f f i c e r s
j) o f t h e Crown.
^he S e c r e t a r y
that
o f S t a t e s a i d "his i n f o r m a t i o n was
I t a l y was not l i k e l y
t o t a k e any a c t i o n
would r a i s e t h e q u e s t i o n o f b e l l i g e r e n t
that
rights.
The Cabinet w e r e reminded t h a t we o u r s e l v e s
in the future wish t o e x e r c i s e b e l l i g e r e n t
and ought t o b e v e r y
might
rights
careful, as t o how t h e m a t t e r was
t r eat ed .
The P r i m e ' M i n i s t e r
informed h i s c o l l e a g u e s
t h e question, o f b e l l i g e r e n t
r i g h t s was on t h e Agenda
f o r t h e Sub-0orom.ittee on D e f e n c e P o l i c y
in ent a a t a M e e t i n g t o b e h e l d t h e same
The C a b i n e t a g r e e d
that
and. R e q u i r e ­
afternoon.
—
That t h e Secretary o f S t a t e f o r
F o r e i g n /affairs should be
a u t h o r i s e d t o d e a l w i t h t h e Arm??!
Embargo on t h e b a s i s o f o b t a i n i n g
a c o l l e c t i v e decis ion.
1 mRE ITALOI ABYS SUM TAW
I
DISPUTE.
3. The S e c r e t a r y
of
State for
Air
informed
C a b i n e t t h a t t h e U n i t e d S t a t e s Government had
Arms Embargo.
aeroplanes
in their
Pos s ib 1 e
Indus i o n
of A i r c r a f t .
h a v e t o do t h e same.
the
included
embargo and t h a t we s h o u l d
The C a b i n e t a g r e e d
probably
—
fa)
That i f a e r o p l a n e s s h o u l d b e i n c l u d e d
i n t h e arms embargo,, t h i s should b e
done by s i m p l y w i t h d r a w i n g l i c e n c e s
from I t a l y and. not by t h e more cumbrous
method o f f i r s t w i t h d r a w i n g a l l l i c e n c e s
and then g r a n t i n g them f o r c o u n t r i e s
o t h e r than I t a l y :
(b)
mhat t h e S e c r e t a r y o f S t a t e f o r A i r
s h o u l d send a Memorandum t o t h e
Secretary of State for Foreign
A f f a i r s -which t h e l a t t e r c o u l d f o r w a r d
t o the M i n i s t e r f o r league o f Nations
Affairs.
rnfftf ITALOnVgptF-B.
4 . The C a b i n e t had b e f o r e them a Meraorandtsm by the
Secretary
of
State for
the Colonies
(C . P . - 1 S 8
(35))
SrPPlv of
on t h e q u e s t i o n w h e t h e r , i f i t i s d e c i d e d t o impose
Gonmodities
to the
c e r t a i n f i n a n c i a l and economic s a n c t i o n s on I t a l y -under
Italian
Colonies i n A r t i c l e XVI o f t h e C o v e n a n t , t h e r e should b e i n c l u d e d
T?ast A f r i c a .
among such s a n c t i o n s measures t o r e s t r i c t or p r o h i b i t
i-p eviotiS
t h e d i r e c t supply o f commodities by S t a t e s Members o f
Ref erpncp;
Cabinet * 4 t h e League t o t h e I t a l i a n C o l o n i e s i n P a s t A f r i c a ,
e,g.,
( 3 5 ) , Con­
olusion i . C o m m o d i t i e s t h e e x p o r t o f which t o I t a l y i t s e l f would
r
not be r e s t r i c t e d
contemplatad
Colonies
for
If
o r p r o h i b i t e d under t h e
sanctions
the
but which w e r e b e i n g i m p o r t e d
i n Past
t h e support
Africa
of
into/Italian
i n abnormal q u a n t i t i e s ,
t h e I t a l i a n armies
engaged
there.
t h e S t a t e s Members o f t h e League decided, t o
special
action
necessary
and ( i i )
all
direct
trade with
on h u m a n i t a r i a n grounds a
w e r e made b e t w e e n ( i )
f o r human b e i n g s
take
i n t h i s m a t t e r i t would presumably be
to prohibit
Colonies, unless
chiefly
t h e supply
these
distinction
of f o o d s t u f f s
and a n i m a l s , which would b e
the supply
of a l l
and w a t e r
allowed,
other
commodities,
which
of State for
the Colonies
pointed
would, be p r o h i b i t e d .
The S e c r e t a r y
out t h a t a l t h o u g h t h e s u p p l i e s
h e l d as t h e r e s u l t
of
concerned, w o u l d b e w i t h ­
collective
action,
the
chief
burden go--far ao ' f o o d ^ t \ t f f O ' ^ w o r o -Q&jq-e*s3me4. would
on t h e P a s t A f r i c a n
fall
C o l o n i e s , who a t p r e s e n t w e r e d o i n g
v e r y good b u s i n e s s .
P r o h i b i t i o n of exports t o the
I t a l i a n C o l o n i e s would, undoubtedly embarrass t h e
Italians
t o some e x t e n t ,
on t h e t r a d e o f
but would h a v e a -SmmI
effect
our C o l o n i e s , / t h e r e m i g h t p o s s i b l y
be
room f o r an e x c e p t i o n i n t h e c a s e o f w a t e r and even
foodstuffs
on h u m a n i t a r i a n grounds
t h i s h e thought
it
would, b e v e r y
feut
difficult,
were co-operating in the a p p l i c a t i o n
allow
this
trade to continue.
apart
from
when we
of sanctions,
He p l a c e d l e s s
to
emphasis
on the i m p o r t a n c e o f s t o p p i n g t h e t r a d e as a s a n c t i o n
t h a n on t h e m o r a l
aspect.
I t would be d i f f i c u l t
trade either here
defend the continuance of t h i s
i n t h e C o l o n i e s , where t h e n a t i v e p o p u l a t i o n
showed s i g n s
of
or
already
concern.
I t was suggested, t h a t
be stopped,
to
the export
i f w a t e r from Aden was
o f d i s t i l l i n g machines
to
from
G-r eat Br i t a i n sh ou. I d a l s o b e a t opp ed .
I n support
of t h e proposed p r o h i b i t i o n
C a b i n e t w e r e reminded t h a t t h e o b j e c t
a c t i o n was t o s t o p t h e f i g h t i n g
the
o f the
League's
in Abyssinia.
One
o f t h e most e f f e c t i v e methods was t o p r o h i b i t
exports,
armies
e x c e p t p o s s i b l y w a t e r and f o o d ,
i n the
to
the
field.
/The C a b i n e t w e r e r e m i n d e d , h o w e v e r ,
that
p r o h i b i t i o n of t h e s e e x p o r t s t o t h e I t a l i a n
would b e more o f a g e s t u r e than a form o f
since the I t a l i a n s
and m a t e r i a l
all
the
Colonies
pressure,
c o u l d purchase t h e same p r o d u c e
e l s e w h e r e and s h i p them from I t a l y
their
C o l o n i e s , s o t h a t t h e r e would
extra
c o s t and e x t r a t r a n s p o r t
to
o n l y b e some
i n t h e way
delay,
of
add i t i ona1 p r e s s u r e .
The s u g g e s t i o n was made t h a t
have t o consider
exports
There was no r e a l
dity,
an a r t i c l e
from ( s a y )
the same a r t i c l e
Eritrea.
difference
between
shipping
Mombasa t o E r i t r e a and
shipping
-"Tie p r o p e r c o u r s e , t h e r e f o r e , was t o
reach I t a l y
of
commodity by commo­
from C z e c h o s l o v a k i a v i a T r i e s t e
whether a p a r t i c u l a r
part
to Italy
t h e League would
at a l l ,
Italy.
This
a r t i c l e was t o b e a l l o w e d
the colonies being
to
decide
to
c o n s i d e r e d as
s u g g e s t i o n met w i t h much s u p p o r t ,
but t h e comment was made t h a t
between shipping d i r e c t
t h e r e was a
to the seat
difference
o f w a r , where t h e
i m p o r t s w e r e unabashedly f o r the u s e o f t h e army,
and t o I t a l y w h e r e t h e r e was a presumption a t
least
that
the a r t i c l e
might be r e q u i r e d f o r t h e
civilian
population.
Tn c o n n e c t i o n w i t h a p r o p o s a l
s h o u l d b e discussed, i n t h e f i r s t
French P r e s i d e n t
of the Council
that the matter
instance with
it
was p o i n t e d
t h a t France and o t h e r n a t i o n s would
to prohibit
export
war s i n c e t h e y
from our C o l o n i e s
out
c e r t a i n l y want us
t o the seat
t h e m s e l v e s would not b e a f f e c t e d
the p r o h i b i t i o n at
all.
The C a b i n e t agreed.
,
the
—
That 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 should send t o t h e
M i n i s t e r f o r League o f N a t i o n A f f a i r s
an account o f t h e C a b i n e t ' s d i s c u s s i o n ,
p o i n t i n g out t h e d i f f i c u l t i e s and
i n s t r u c t i n g h i m , i f and when t h e
q u e s t i o n a r o s e , t o t a k e no d e c i s i o n
but t o r e f e r i t t o London: h e should
b e on h i s guard a g a i n s t any d e c i s i o n
by t h e Leag\:e o f N a t i o n s which would
- m i l i t a t e a g a i n s t t h i s country a l o n e .
of
by
I-AT.O­
.PYSSTNIAN
Continuance
f irope.ri.al
Airways .
0
5.
m
he question
he a d v i s e d
t o remove t h e i r b a s e from B r i n d i s l
the present
State for
o f w h e t h e r I m p e r i a l Airways
should
during
emergency was r a i s e d by t h e S e c r e t a r y
of
Air.
I t was pointed, out. t h a t
s e i z e the a i r c r a f t
the r i s k that
Italy
was shared, by merchant s h i p s
might
In
I t a l i a n harbours ...
The C a b i n e t w e r e , informed, t h a t
the
Italians
themselves ran a l i n e in connection w i t h t h i s
t h a t they sent v a s t
Airways,
quantities
o f m a i l s by
service'
Imperial
and. r e s e r v e d , a p a s s a g e i n e v e r y m a c h i n e .
R e a l i s i n g that t h e removal
elsewhere o f the base
a t B r i n d i s l . would be a somewhat p r o v o c a t i v e a c t ,
C a b i n e t agreed.
h a t f o r t h e p r e s e n t I m p e r i a l Airways
should be a d v i s e d t o m a i n t a i n t h e
b as e .
T
,
—
the
ITALO-
-SSINIAN
SPOTE.
6.
The C a b i n e t had b e f o r e
Report ( C P .
186(35))
on the forms
F i n a n c i a l Sanctions a p p l i c a b l e
onofflic and
nancial
tions.
3
evious
eference:
aUnet 44
35), Con­
lusion 1. )
them a
Provisional
of Economic and
to the present
crisia
i n connection w 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 ,
mi t t e d b y the A d v i s o r y Committee
of I m p e r i a l Defence
War,
of the
Committee
on T r a d e Q u e s t i o n s i n Time
i n accordance w i t h the Cabinet
sub­
of
Conclusion
mentioned i n the m a r g i n .
After
discussing
introducing
a number of
(incorporated below),
(a)
the R e p o r t i n some d e t a i l
amendments t o t h e
the C a b i n e t a g r e e d
and
conclusions
:­
To approve the P r o v i s i o n a l C o n c l u s i o n s
s u b m i t t e d by t h e A d v i s o r y Committee on
Trade Q u e s t i o n s i n Time of War i n t h e
f o l l o w i n g am.end.ed f o r m : ­
(i)
(ii)
T h a t H i s M a j e s t y ' s Government
should agree t o c o n t i n u e the
embargo on t h e e x p o r t of arms
and m u n i t i o n s t o I t a l y ;
That, subject t o Conclusion ( b ) ( i i )
b e l o w - His M a j e s t y ' s Government
s h o u l d concur i n any p r o p o s a l
t h a t Member S t a t e s s h o u l d ­
(a)
P r o h i b i t l o a n s and
to I t a l y ;
credits
(b)
C o l l e c t t r a d e d e b t s due t o
I t a l y t o l i q u i d a t e trade
d e b t s due by I t a l y .
They s h o u l d NOT a t p r e s e n t ( e n c e p t
b y way of r e p r i s a l ) i n t e r f e r e w i t h
bank b a l a n c e s or o t h e r p r o p e r t y
o f I t a l i a n s , nor w i t h f i n a n c i a l
payments due t o I t a l y , nor w i t h
marine or o t h e r i n s u r a n c e .
This
conclusion
s h o u l d NOT be announced;
(iii)
That H i s M a j e s t y ' s Government should
b e p r e p a r e d , i n agreement w i t h
o t h e r Member S t a t e s , t o impose an
embargo on a l l i m p o r t s f r o m I t a l y ;
(iv)
T h a t H i s M a j e s t y ' s Government s h o u l d
be p r e p a r e d , i f t h e p r o p o s a l i s
p r e s s e d by o t h e r Governments, t o
j o i n i n an e x a m i n a t i o n of the
p r o p o s a l not t o a l l o w I t a l i a n m e r ­
chant v e s s e l s t o make use of League
ports;
(b)
(v)
That i f o i l producing or s u p p l y i n g
Member States, such as Roumanla, were
p r e p a r e d t o impose en embargo on
exports of o i l , His M a j e s t y ' s
Government would, be prepared to
j o i n i n t h i s and t o consider f u r t h e r
an embargo on exports of c o a l ;
(vi)
That His M a j e s t y ' s Government should
only concur i n a p r o p o s a l f o r an
embargo on the export of e s s e n t i a l
m a t e r i a l s to I t a l y at the request of
other Member S t a t e s ;
(vii)
That His M a j e s t y ' s Government should
be p r e p a r e d , i n agreement w i t h other
-Member S t a t e s , to p r o h i b i t the s a l e
or c h a r t e r i n g of ships to I t a l y ;
(viii)
That His M a j e s t y ' s Government should
not accept p r o p o s a l s f o r the s u s ­
p e n s i o n of p o s t a l communications;
(ix)
That, so f a r as p o s s i b l e , agreement
should be reached with, other Member
S t a t e s as to the d e t a i l s of the
o p e r a t i o n of any p r o p o s a l s adopted,
and not only on the p r i n c i p l e s ,
That the 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
should communicate the above p r o v i s i o n a l
conclusions t o the M i n i s t e r f o r League of
Nations A f f a i r s and should a d v i s e him, so f a r
as he might deem n e c e s s a r y of any p o i n t s
mentioned i n the d i s c u s s i o n which would
s p e c i a l l y i n t e r e s t him or b e a r on the i n t e r ­
p r e t a t i o n to be g i v e n to the c o n c l u s i o n s .
Among the p o i n t s which the S e c r e t a r y of State
was asked t o mention were the f o l l o w i n g : ­
(i)
The importance to I t a l y of the
t o u r i s t t r a f f i c ( s a i d t o be worth
£30 m i l l i o n s a y e a r ) from the
p o i n t of view of the b a l a n c e of
trade.
The B r i t i s h T o u r i s t t r a f f i c
t o I t a l y was b e l i e v e d to have sunk
almost t o v a n i s h i n g p o i n t and i t
might be u s e f u l f o r the League t o
do anything i t could f u r t h e r to
reduce the i n t e r n a t i o n a l t o u r i s t
t r a f f i c to I t a l y ;
(ii)
That i f the p r o p o s a l i n Conclusion ( a )
- i l l ) should a r i s e at Geneva. theMinister
f o r League of NVtions A f f a i r s
should r e s e r v e i t
f o r the C h a n c e l l o r of the Exchequer;
(iii)
That, as r e g a r d s Conclusion ( a ) ( i l i )
above, the o r i g i n a l p r o p o s a l of the
Sub-Committee had been t h a t His
M a j e s t y ' s Government should be p r e ­
p a r e d , i n agreement w i t h at l e a s t
France and p r e f e r a b l y w i t h other
Member S t a t e s , t o impose an embargo
on a l l imports from I t a l y .
The
o b j e c t of t h i s p r o p o s a l had been to
put p r e s s u r e on other nations to do
the same and, by f o r c e of example,
to avoid delays.
The C a b i n e t ' s
v i e w was t h a t we should s t i c k
c l o s e l y t o the p r i n c i p l e of c o l l e c t i v e
s a n c t i o n s and t h e y had, t h e r e f o r e /
amended t h e R e p o r t i n t h i s r e s p e c t ;
(iv)
(v)
(vi)
t"&
ltd aMiUlde
(c)
That t h e C a b i n e t had t h e g r a v e s t doubts
about the a d v i s a b i l i t y o f p r o v i s i o n a l
C onelus i on ( i v H ab ove.
S oraething
l i k e 60 p e r c e n t , o f the p o r t s of
t h e w o r l d were a f f e c t e d , and t o c l o s e
them t o I t a l i a n s h i p p i n g , e s p e c i a l l y
i n c a s e o f bad w e a t h e r , would he
very provocative.
The A d m i r a l t y
had p o i n t e d out. t h a t a l l t h e s e
s a n c t i o n s i n c r e a s e d r i s k s t o peace
and, c o n s e q u e n t l y , p u t a s t r a i n on
t h e naval f o r c e s i n t h e M e d i t e r r a n e a n ,
and. b o t h t h e y and the P r e s i d e n t o f
the Board of T r a d e would p r e f e r t h a t
the proposal not t o a l l o w I t a l i a n
merchant s h i p s t o make use o f League
p o r t s should n o t be a d o p t e d ;
That i n r e g a r d t o C o n c l u s i o n ( v ) £ ) .
we should n o t a g r e e t o impose an
embargo on e x p o r t s o f c o a l
to Italy
u n l e s s c o r r e s p o n d i n g a c t i o n was tai-con
by other S t a t e s concerned i n c o a l
e x p o r t s and b y Member S t a t e s such
as Roumania who were concerned i n
e x p o r t s of o i l .
The i d e a of a g r e e i n g
t o an embargo on c o a l e x p o r t s as an
example and an inducement t o Roumania
t o w i t h h o l d o i l d i d n o t commend i t s e l f
t o the C a b i n e t .
Although coal e x ­
p o r t s t o I t a l y had. f a l l e n owing t o
I t a l y ' s i n a b i l i t y t o p a y , i t had t o
b e remembered t h a t an embargo would,
put more m i n e r s out of work.
It
would, a l s o i n v o l v e a p r o c l a m a t i o n ,
and t h e i n c r e a s e i n unemployment
would be l a i d a t t h e d o o r o f t h e
Government.'
Importance was a t t a c h e d ,
t h e r e f o r e , t o the p r e s e n t a t i o n of
t h e embargo on c o a l , and. t h e C a b i n e t
f e l t i t would be of advantage i f i t
c o u l d be a c c o m p l i s h e d i n some manner
without a proclamation;
a
That t h e i m p o s i t i o n of t h e s a n c t i o n s
m e n t i o n e d i n t h e s e c o n c l u s i o n s must
)
tfee-^gtetre of non-Member S t a t e s .
That t h e i d e a o f w i t h d r a w i n g D i p l o m a t i c
R e p r e s e n t a t i v e s f r o m t h e c a p i t a l had, i n
t h e p a s t , p r o v e d f u t i l e and e m b a r r a s s i n g
end an o b s t a c l e t o r e - e s t a b l i s h i n g d i p ­
l o m a t i c communication when t h e p r o p e r time
arrived.
This form of s a n c t i o n , t h e r e f o r e ,
d i d n o t commend i t s e l f t o t h e C a b i n e t
who a s k e d 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 t o n o t i f y t h e i r View
t o t h e M i n i s t e r f o r League of N a t i o n s
Affairs;
That as r e g a r d s C o n c l u s i o n ( a ) ( i i i ) above,
the Departments c o n c e r n e d should b e
authorised t o proceed w i t h the d r a f t i n g
of the n e c e s s a r y o r d e r s and a r r a n g e m e n t s .
7 . mv,e Cabinet, had b e f o r e
, PFNGE R F ­
them a N o t e by
the
H
Secretary
rfiVlOUS
i Reference:
Cabinet 8?
(85), Clon-,
elusion 1
of
(0.P.-187 " ( 3 5 ) ) ,
t h " Prime M i n i s t e r ,
present
position
u(^)h
infoaring
Inquiries
to prepare t h i s
Cabinet might be f u l l y
instructions
on D e f e n c e
the
Requirements.
instructed
Note in order that
i n f o r m e d as t o t h e
The D e f e n c e Requirements
of
t h e Cabinet
The P r i m e M i n i s t e r s a i d t h a t h e had
£he S e c r e t a r y
j-l(U)3.
of
p r e p a r e d under
the
position.
Committee hoped t o be
able
t o r e p o r t b e f o r e t h e end o f t h e p r e s e n t month, and
- t h e i r R e p o r t , w i t h t h e Recommendations
Committee on. D e f e n c e P o l i c y
i n due c o u r s e
come b e f o r e
The C h a n c e l l o r
subject
o f t h e Sub-
and Requirements would
t h e Cabinet .
o f t h e Exchequer said, t h a t as
the
of. D e f e n c e P o l i c y had h i t h e r t o been d e a l t
with
by C o m m i t t e e s , he was crlad t h a t t h e C a b i n e t had been
i n f o r m e d as t o t h e p o s i t i o n .
s u r e t h a t he and some o f h i s
to the subject
the v i e w s
colleagues,
in p u b l i c speeches, were
of a l l
the v a r i o u s
Re h i m s e l f wanted t o b e
their
stages
colleagues . - After
in
alluding
interpreting
recalling
o f D e f e n c e Requirements h e mentioned
t h a t a p o s i t i o n , had been r e a c h e d a few weeks ago when
t h e Committees
and t h e Army,
allowed
felt
t h e programmes f o r
behind t h e Royal A i r F o r c e ,
required
F i n a n c e had. been, t h e g o v e r n i n g
reason
f o r t h e two o l d e r S e r v i c e s
the s t a t e
light.
falling
b e h i n d , but now
o f t h e w o r l d was such t h a t
considerations
t h e Navy
i n p a r t i c u l a r , which t h e C a b i n e t had
to f a l l
speeding up.
that
financial
might h a v e t o b e r e v 1 owed i n a
Fe then g a v e some p a r t i c u l a r s
different
as t o t h e methods
by which an I n c r e a s e d programme m i g h t be f i n a n c e d ,
asked h i s
suggestion
colleagues,
of a Loan.
in making s p e e c h e s ,
and
t o a v o i d any
The S e c r e t a r y
that Ministers
of S t a t e f o r Foreign A f f a i r s
s p e a k i n g on D e f e n c e Requirements
t o k e e p w i t h i n t h e framework o f our
that
i n t e r n a t i o n a l p e a c e p o l i c y and/-the d e s i r a b i l i t y
asked
should
he c a r e f u l
c u t t i n g down t h e s t a n d a r d
of international
of
armaments
whenever t h a t m i g h t b e p o s s i b l e should not b e o v e r ­
looked.
The C a b i n e t t o o k n o t e o f t h e S e c r e t a r y ' s
R e p o r t a t t a c h e d t o C.F.-1S? I7-5) , and'
more p a r t i c u l a r l y o f t h e l a s t p a r a g r a p h
s t a t i n g t h a t t h e " Sub-Committee hoped t o
submit a R e p o r t b e f o r e t h e end o f t h e
month.
The p r o c e d u r e i n i t i a t e d by t h e SubCommittee on D e f e n c e P o l i c y and
R e q u i r e m e n t s , which was now b e i n g
c a r r i e d out by t h e ( O f f i c i a l ) D e f e n c e
) Requirements Committee,was a p p r o v e d .
-1.5­
8 * The C a b i n e t had b e f o r e
Minister
-Draft Conven­
it ion
regB.r6.lng
o f Labour
ratification
them a N o t e by t h e
( G . P . - 1 8 5 ( 3 5 ) ) recommending t h e
of the Draft Convention r e g a r d i n g
Benefit
Benefit o r
or Allowances
fthe i n v o l u n Rariiy nnem­
had been adopted a t t h e E i g h t e e n t h S e s s i o n of t h e
ployed .
International
Batifteat ton
Accompanying t h e D r a f t
Kllowanees to
t o t h e I n v o l u n t a r i l y Unemployed, which
Labour C o n f e r e n c e h e l d i n June, 1 9 3 4 .
C o n v e n t i o n was a Recommendation,
which, unlike the Convention,
I Previous?
Reference:
I Cabinet S3
( 554), Oon­
clusion 7 . )
r e j e c t e d without
therefore
Ireland),
qualification.
proposed,
t h e Dominions
need, n o t b e a c c e p t e d or
of
Labour
i n agreement w i t h t h e t r e a s u r y ,
Office
and t h e Nome O f f i c e
acceptance of
certain reservations
r e l a t i n g t o points
The M i n i s t e r
( f o r Northern
t h e Recommendation s u b j e c t
suggested
i n h i s Memorandum,
not i n a c c o r d a n c e w i t h
present
policy.
The C a b i n e t approved t h e recommenda­
- t i o n s of t h e M i n i s t e r of Labour s e t
forth in C P . - 1 8 5 (35) .
to
vrrvm MEETING
Qp" CABINET .
9 . NIP C a b i n e t
—
To h o l d a S p e c i a l M e e t i n g on
Tuesday n e x t , O c t o b e r 1 5 t h , a t
4 p..m., f o r t h e purpose o f c o n s i d e r i n g t h e I n t e r i m R e p o r t by
t h e Committee on t h e O r g a n i s a t i o n
o f t h e Coal M i n i n g I n d u s t r y ( C P . - 1 6 0
HE GOAL
MINING
INDUSTRY.
T
(Previous
Reference,
c a b i n e t 44
(35), Con­
e l u s i o n 4.)
(35)).
i, W h i t e h a l l G a r d e n s ,
October 9 ,
agreed
S.W.1
1935.