(c) crown copyright Catalogue Reference:CAB/23/96 Image Reference:0005 ( T H I S DOCUMENT I S THE PROPERTY OF HIS BRITANNIC MAJESTY*S GOVERNMENT) S E C R E T . COPY NO. C A B I N E T 55 (58) 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 N o . 10 D o w n i n g S t r e e t , S . W . I . , on MONDAY, 7 t h NOVEMBER, 1 9 5 8 , a t 5 . 0 p.in. AGENDUM DEFENCE PROGRAMMES AND ACCELERATION. (Reference C a b i n e t 52 ( 5 8 ) Conclusion 15) R e p o r t by C a b i n e t Committee. C P . 247 ( 5 8 ) - c i r c u l a t e d herewith. Memorandum b y t h e S e c r e t a r y o f S t a t e C P . 218 ( 5 8 ) - c i r c u l a t e d for Air. herewith. Memorandum b y t h e M i n i s t e r f o r C o - o r d i n a t i o n o f D e f e n c e c o v e r i n g e x t r a c t from Minutes o f the 555rd M e e t i n g o f t h e C o m m i t t e e o f I m p e r i a l D e f e n c e , t o g e t h e r v/ith Memorandum p r e p a r e d i n c o l l a b o r a t i o n betv/een t h e A i r M i n i s t r y and t h e D e p a r t m e n t o f O v e r s e a s T r a d e . C P . 222 ( 5 8 ) - c i r c u l a t e d h e r e w i t h . (Signed) E.E. Secretary Richmond T e r r a c e , 4 t h November, S.V7.1. 1958. BRIDGES to the Cabinet. 8 E 0 R E T. COPY NO. C A B I N E T 53(38). CONCLUSIONS o f a M e e t i n g o f t h e C a b i n e t h e l d a t 1 0 , Downing S t r e e t , S . W . I . , on MONDAY, 7TH NOVEMBER, 1 9 3 8 , a t 3 . 0 p . m . PRESENT: The R i g h t Hon. N e v i Prime M i n i s t e r . e Chamberlain, LLP., ( I n the C h a i r ) . The R i g h t H o n . S i r John S i m o n , G . C . S . I . , G.C.V.O., O.B.E., K.C., M.P., C h a n c e l l o r of the Exchequer. The R i g h t H o n . The V i s c o u n t Runciman, L o r d 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 H o n . L o r d Maugham, Lord Chancellor. The R i g h t H o n . S i r bamuel H o a r e , B t . , G . C . S . I . , G . B . E . , C.M.G. , M . P . , S e c r e t a r y o f S t a t e f o r Home A f f a i r s . The R i g h t H o n . The V i s c o u n t H a l i f a x , K . G . , G.C.S.I., G.CI.E., Secretary of State f o r Foreign A f f a i r s . The R i g h t K o n , S i r John A n d e r s o n , G.C.S.I.,G.C.I.E., Lord Privy Seal. The R i g h t H o n . Malcolm MacDonald, M.P.. Secretary of State f o r D o m i n i o n A f f a i r s and S e c r e t a r y o f S t a t e f o r the C o l o n i e s , The Most Hon. The M a r q u e s s o f Z e t l a n d , C C S . I . , G.C.I.E., Secretary of State f o r I n d i a . The R i g h t H o n . S i r Thomas I n s k i p , C . B . E . , K . C . , M.P., M i n i s t e r f o r Co-ordination of Defence. The R i g h t H o n . The E a r l S t a n h o p e , K . G . , D . S . O . , M.C. , F i r s t L o r d o f t h e Admiralty. The R i g h t H o n . L . H o r e - B e l i s h a , M.P., S e c r e t a r y o f S t a t e f o r War. The R i g h t H o n . S i r K i n g s l e y Wood, L . P . , Secretary of State f o r A i r . G.C.B., M.P., The R i g h t H o n . John C o l v i l l e , M . P . , Secretary of State f o r Scotland. The R i g h t Hon. O l i v e r o t a n l e y , M . C . , M.P. , P r e s i d e n t o f the Board o f T r a d e . The R i g h t H o n . W.S.Morrison, M.C., K.C., M.P., Minister of Agriculture and F i s h e r i e s . The R i g h t H o n . The E a r l De L a W a r r , P r e s i d e n t of the Board o f Education. The R i g h t Hon, Walter E l l i o t , M.C., Minister of Health. The R i g h t Hon. E r n e s t Brown, M . C , M.P. , M i n i s t e r of Labour. The R i g h t H o n . E.L. Burgin, M.P., of Transport. Mr. E . E . Bridges, M.C IA.P. , Minister The' R i g h t H o n . The E a r l w i n t e r t o n , M . P . , C h a n c e l l o r o f t h e Duchy o f Lancaster. Secretary. ANGLO-AMERICAN TRADE AGRERvCENT. 1. THE PRILIE MINISTER s a i d t h a t (Previous reference: Cabinet 4 9 ( 5 8 ) , Conclusion 9.) States He t h o u g h t c o l l e a g u e s w o u l d b e g l a d t o know t h a t Government had a g r e e d t o w h i c h we h a d s u b m i t t e d f o r l i e was s u r e h i s congratulate the President outco:.:e o f the was p r o b a b l e until t h e end o f week. this for It that the of Trade the Board of Trade yet been signed. week o r was t h e r e f o r e -present. proposals colleagu.es would wish s i g n a t u r e would not this news s h o u l d b e latest to on negotiations. The T r e a t y h a d n o t it United an A n g l o - A m e r i c a n Agreement. this the the his of Indeed, take the beginning o f t h e utmost place next importance r e g a r d e d as s t r i c t l y that confidential DEFENCE P R O - GRAMMES AND ACCELERATION. Report of Cabinet Committee. (Previous Reference: C a b i n e t 52 (38), Con­ clusion 13. FT?. Go 2. The C a b i n e t Secret documents had b e f o r e on t h e then t h e f o l l o w i n g subject of Most D e f e n c e Programmes and A c c e l e r a t i o n : -­ ( a ) T h e R e p o r t o f t h e C a b i n e t C o m m i t t e e ( C P . - 2 4 7 ( 3 8 ) ) a - p o i n t e d on 2 6 t h O c t o b e r - ; 1 9 3 8 , i n w h i c h t h e y s e t out p r o p o s a l s put f o r w a r d by the S e r v i c e together with D e p a r t m e n t s and t h e Home O f f i c e t h e i r recommendations t h e r e o n : s ( b ) A Memorandum b y 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 ( C P . - 2 1 8 ( 3 8 ) ) on R e l a t i v e A i r S t r e n g t h and P r o p o s a l s f o r t h e Improvement o f t h i s C o u n t r y ' s P o s i t i o n ^ f u r t h e r c o n s i d e r a t i o n o f which by t h e Cobineb Committee had b e e n a d j o u r n e d p e n d i n g c o n v e r s a t i o n s between the C h a n c e l l o r o f the E x c h e q u e r and 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 : ) (5%) (c) A Note by the M i n i s t e r f o r C o - o r d i n a t i o n of D e f e n c e ( C P , - - 2 2 2 ( 3 8 ) ) c o v e r i n g a Memorandum 7, on t h e German A i r c r a f t I n d u s t r y p r e p a r e d i n ' ' c o l l a b o r a t i o n between the A i r M i n i s t r y ( i n t e l l i g e n c e ) a n d t h e Deportment o f Overseas Trade ( i n d u s t r i a l I n t e l l i g e n c e Centre) ( C . I . D . P a p e r N o . 1472--B); together with the relevant e x t r a c t from the Minutes o f the 353rd M e e t i n g o f the Committee o f I m p e r i a l D e f e n c e (Minute 9 ) . Ft?.J-U(3q\ 5 THE PRIME MINISTER convenient of if the the Services Cabinet in stated dealt (CP. 247 ( 3 8 ) ) were where stated these recommendations are ADMIRALTY PROGRAMME. ff£.z(3o)7 set out with he thought the p o s i t i o n in the Committee's accepted without a number o f Report Conclusions. The Committee's in the Cabinet below. the (i.e. the proposals c o u l d b e met w i t h i n allocated the the Admiralty f o r put f o r w a r d in the sum w h i c h h a d Committed' been three years quinquennium c o v e r e d by t h e D e f e n c e Loans Act three years April the explained last the to each except THE MINISTER FOR CO-ORDINATION OF DEFENCE that of w o u l d be Report alteration a s amended i n d i s c u s s i o n in f u l l it turn. The r e c o m m e n d a t i o n s in that 1939 t o M a r c h 1942). of The.sura s o a l l o c a t e d was £ 4 1 0 m i l l i o n s , a compromise for of by between the f i g u r e the F i r s t Lord of aragrsph 2; scort V e s s e l s . allocation With r e g a r d a first batch explained of that to and the o f £355 during been impressed w i t h the the to crisis lay the shortage of vessels that s h o u l d be t a k e n t o remedy t h i s steps c o u l d not be l a i d convoy anxious deficiency. down u n t i l May, to start 1939, any c h a n g e be n e c e s s a r y we p r o p o s e d to to late. Germany e a r l y to give lay vessels was t o b e inform RQCOJB&, notice down t h e b e f o r e May, consideration this the calendar 1940. He t h e r e f o r e in all done, i t year must second batch of thought of that notify the first it would 1939, 10 further this latter to to would p r o b a b l y be nece'ssary the Christmas the n o t i f i c a t i o n our w h o l e programme of date notify' l a y down 20 i n t h e ensuing t w e l v e months. the beginning if escort asked f o r a u t h o r i t y the proposal He e x p l a i n e d t h a t include effect, i n tgsmsEBgB, t h e House o f Commons b e f o r e was made t o Germany a t (. In As a r e s u l t the A d m i r a l t y i n 1939 o f year. early under we w e r e b o u n d t o i n o u r p r o g r a m m e t o Germany d u r i n g f o u r months o f escort the material. the Anglo-German N a v a l Agreement was t o o but collecting THE F I R S T LORD OF THE ADMIRALTY s a i d t h a t vessels once had for S e a L o r d was most could be taken f o r t h w i t h necessary down a t the A d m i r a l t y work. The s h i p s basis Minister and e s c o r t steps asked millions. vessels, The F i r s t on t h e being. Minister's the proposal 10 e s c o r t figure o f £443 m i l l i o n s the A d m i r a l t y , t h e New S t a n d a r d F l e e t , provisional this the for which calendar the year. If THE PRESIDENT OP THE BOARD OP -TRADE - B ^ e a s e d . t h e importance which h i s Department a t t a c h e d being a sufficiency age of vessels for of these v e s s e l s . might result control of i n convoys having or ten days b e f o r e they could 'th short­ convoy would s e r i o u s l y t h e a r r a n g e m e n t s made f o r It A to upset shipping. to wait eight sail. THE SECRET.-.RY OP STATE POR FOREIGN A F F A I R S , asked by the Prime M i n i s t e r as Germany o f lay an armouncement down 20 o f cial year, that these v e s s e l s said i t to the effect we p r o p o s e d i n the next was n e c e s s a r y of to hold I t was i m p e r a t i v e no justification preparing account, for for our d e f e n c e p l a n s that for the given t h a t we w e r e war a g a i n s t h e r denouncing defence on Germany. Germany s h o u l d b e saying to finan­ b a l a n c e e v e n l y b e t w e e n what we n e e d e d f o r and t h e e f f e c t on and, on that the Anglo-German Naval -agreement. THE SECRETARY OF STATE FOR FOREIGN AFFAIRS said t h a t he d i d n o t the proposal Looking at wider point to lay feel view the S e c r e t a r y that the near to prevent steps setting too hard b e f o r e further action of appeasement. about vessels. w i t h Germany f r o m a t h a t he thought future strongly down, t h e s e 20 e s c o r t our r e l a t i o n s of very of State said should be taken in t h e Munich wax we h a d talcen some towards implementing He was n o t , at the our policy moment, in a position t o make a d e f i n i t e but he thought t h a t we m i g h t t h a t we s h o u l d l i k e any s u g g e s t i o n s matters tell Germany t o know w h e t h e r a s t o how t h e should be suggestion, she had outstanding discussed. THE PRIME LIIITISTER s a i d t h a t h e v/as n o t altogether happy about the proposal our programme by l a y i n g vesselSc. that proposal, the be h i g h l y to i t s the year if desirable Secretary This c o u r s e was t o subject end o f the down t h e s e 20 He had come t o t h e the r i g h t increase escovt conclusion, agree to before should appear from the p o i n t for however, this reconsideration this of State to Foreign c o u r s e was a g r e e d of to view of Affairs. to. THE MINISTER FOR CO-ORDINATION OF DEFENCE then e x p l a i n e d b r i e f l y the Cabinet Admiralty It was a g r e e d that to bear some s h a r e o f to relating to in the programme,. the that other proposals Committee's Report whether Harbour. the it should be Southern Railway considered should be the cost of The v i e w was e x p r e s s e d , invited dredging Dover however, t h e d r e d g i n g w o u l d n o t b e o f much v a l u e the Railway Company,, 1 a3 THE MINISTER FOR CO-OiUINATION WAR OFFICE PROGRAMME. explained A n t i - A i r oral" t Equipment. (Paragraph 16) that t h e main p r o p o s a l s Army d e a l t w i t h A . A . "Ideal Scheme" f o r had p r o v i d e d present for defences. authorised The scheme v/as f o r 3 " guns r e l i n e d . observed that was a m i s t a k e as to the so-called of Great Britain modern t j f p e s . 320 w o u l l he t h e it relating the A i r Defence 1264 g u n s o f OF DEFENCE The 928 g u n s , of which In passing, to regard the he 3" guns ineffective. The p r e s e n t p r o p o s a l was t h a t Ac e q u i p m e n t s a u t h o r i s e d f o r Great B r i t a i n In addition, should be p r o v i d e d of the A i r Defence should be i n c r e a s e d modern t y p e s . 686 a d d i t i o n a l for ports guns o f new t h e number to 1264, all another 50 o r so abroad, making a to obtain the would be n e c e s s a r y to c r e a t e new c a p a c i t y , to place the necessary additional an o r d e r now f o r additional capacity the present the p r o v i s i o n present was, of however, A.A. guns t o capacity the still gunso A.A. t o be b u i l t up. guns. out t h a t , guns. to At of on the p r o d u c t i o n field guns. in order guns t o b e p r o d u c e d that was enable field required f u r t h e r postponement He t h o u g h t it and i t t o employ our c a p a c i t y indefinitely was t h e r e f o r e meet most o f A?A" for the e x c l u s i o n additional guns, the guns had a b s o l u t e p r i o r i t y . impossible gun m a n u f a c t u r e total p r o p o s a l was l i n k e d up. w i t h capacity time, A.A. guns 300 guns t o The M i n i s t e r a l s o p o i n t e d some e x t e n t , of types. In order desired of of for of The new to enable without the p r o v i s i o n of the present proposal the c r i t i c i s m It t h a t we h a d n o t field would got enough .1 £ 4 A. K -t In reply was p r o p o s e d t o of an e x i s t i n g to create Possible the who t h o u g h t fact to provide that, these Broadly Empire, not a thicker at the present calibre by the from o t h e r time, to extension the to protect find additional additional It was a we h a d demands f o r guns w i t h i n and w i t h o u t the the increase His o n l y doubt was w h e t h e r He s u g g e s t e d that Staff might be d e s i r a b l e should a g a i n c o n s i d e r Defence f r o m "the p o i n t of of a d v i s i n g whether the was a g r e e d o r d i n a t i o n o f Defence the a further that review of take It gun s h e l l ) p r o p o s e d was n o t although it that on Secretary. ae to A.A. and t h a t in exoess discussion, paragraph were the o r d e r s d e a l t to shell of different the a d d i t i o n a l o f u l t i m a t e Army was i n e x c e s s o f After to approved. was e x p l a i n e d field Co­ the necessary s t e p s recommendations p a r a g r a p h 20 r e l a t e d m a i n l y (mainly for t h e Home D e f e n c e p i c t u r e l i n e s p r o p o s e d b y t h e Home equipments were this the M i n i s t e r should The C o m m i t t e e ^ Jing tion F i r m s Eduction, agraph 2 0 ) was balanced. It secure of Home programme a s a l t e r e d b y t h e a d d i t i o n s now p r o p o s e d properly with that the C h i e f s the whole q u e s t i o n o f view the when t h e p r o p o s a l s now u n d e r c o n s i d e r a t i o n h a d b e e n d e a l t it of meet. p r o p o s e d was a d e q u a t e . by the Cabinet, had Vickers concentration. THE HOME SECRETARY t h o u g h t t h a t p r o p o s e d was i n e v i t a b l e . it labour d i f f i c u l t i e s speaking, sources, w h i c h we w e r e u n a b l e increase that t h a t t h e y would be a b l e t o guns o r d e r e d w e r e r e q u i r e d , but was e x p l a i n e d firm concerned (Messrs. the necessary labour. areas, it t h e new c a p a c i t y factory. been discussed w i t h Armstrong), questions, with.in types order requirements, what had a l r e a d y been authorised : the Committee's proposals accepted. now; in I loiopensation­ ln c o n n e c t i o n [ith P r i o r i t i e s , [paragraph 2 3 4 THE CHANCELLOR OF THE EXCHEQUER s a i d d i d n o t deny t h a t cases such a s t h i s paragraph might a r i s e would be n e c e s s a r y . t h e r e was a g r e a t prooedure acting individual procedure civil He t h o u g h t , now p r o p o s e d on the l i n e s cases. be included exceptional that t h e r e might be if the the He t h o u g h t the procedure former cases where a would share Clause, in that and the P e n a l t y that however, as a standard formula, He was a f r a i d he concession the c u s t o m e r and c o n t r a c t o r most u n d e s i r a b l e to betv/een a d o p t i n g suggested in was a d o p t e d , proceeds o f those r e f e r r e d i n w h i c h some difference that it suggested in the authorised p r a c t i c e of was should Government Departments. THE LORD CHANCELLOR s u g g e s t e d be p o s s i b l e provided to deal that i f was i s s u e d , require loss that it w i t h the m a t t e r by a B i l l a certificate of particular t h e Government would have absolute p r i o r i t y , s u s t a i n e d by the and. t h a t the in f i r m should be might which urgency right to such c a s e s recouped. THE PRESIDENT OF THE BOARD OF TRADE thought handling that this matter required very and h e s u g g e s t e d t h a t -had a r i s e n the few s h o u l d b e d e a l t w i t h ad Jboc-o careful cases which any It v/as a g r e e d to accept the r e c o m m e n d a t i o n made b y t h e C o m m i t t e e , the addition of case i s dealt subject the words"on the b a s i s w i t h on i t s With regard to that to each merits"* the R d l e o f the Army, t h e MINISTER FOR CO-ORDINATION OP DEFENCE said that making a l o n g memorandum had b e e n proposals Army., to increase the effectiveness The C o m m i t t e e h a d f e l t question of policy within their memorandum, should be submitted that, was i n v o l v e d , Terms o f and t h e y remitted Reference thought to it of as a the major would not to deal with that the be this matter the Committee o f Imperial Defence . THE SECRETARY OF STATE FOR WAR s a i d the General views Staff were on t h i s m a t t e r record. unable In their to f u l f i l should be view, of State) attached considerable increase take these Imperial that This their formal its present obligationso added t h a t to he the proposals the T e r r i t o r i a l the b e s t p l a n would be two m a t t e r s up a t Defence s e t on importance the equipment o f and h e t h o u g h t that t h e Army was a t certain of He ( t h e S e c r e t a r y to very anxious the Committee to of c c o u r s e was a g r e e d that to. (The F i r s t Lord of the Admiralty meeting at t h i s p o i n t . ) left the Army THE MINISTER FOR COORDINATION CP DE7E2TCE said that the Chancellor Secretary of State for Air m a t t e r w h i c h had v e r y The A p p e n d i x t o the Exchequer serious R e p o r t had b e e n at on financial in the discussions tv/o M i n i s t e r s and had c o n f e r r e d paper, out between Committee s t h e t i n e when t h e 1 submitted. necessary to circulate as h e was a n x i o u s t h a t should have b e f o r e He w i s h e d t o the Chancellor of He t h o u g h t that it of weakness very special in the a i r in this sphere o f and a n x i e t y which e x i s t e d from t h e p o i n t o u r own w e a k n e s s handicap to would a l s o in his assist t o make t o o b t a i n give it thanks attitude country­ importance. and the the other causing the view o f world If appeasement, our- a i r would g i v e further limitation the h e l p which i t to the peace. w h i c h we h o p e d armaments. position serious strength efforts for of a strength us i n t h e e f f o r t s unrest to-day. was o b v i o u s l y s t r e n g t h e n i n g our a i r our diplomacy the the world our diplomacy. Prime M i n i s t e r only by in i n the a i r could be i n c r e a s e d , It of his generally this P o w e r s w h i c h was t h e m a i n f a c t o r Again, for would be v/as G e r m a n y ' s s t r e n g t h relative express discussions. t h e a i r defences o f occupied a position It lengthy colleagues the Exchequer t h a t he had a d o p t e d i n t h e i r agreed that this a that them t h e p o s i t i o n a s s e e n b y the A i r Ministry. to this set THE SECRETARY OP STATE FOR A I R s a i d he had found i t the implications. the Committee's Report the stage reached those of that It we required. was could Prom t h e d o m e s t i c our weakness great the in the anxiety to Government air the in point of was t h e view, cause country. of The p o s i t i o n t h i s m a t t e r was of further c o m p l i c a t e d b y t h e p l e d g e s w h i c h had b e e n given were in regard to air aggressor the course the end o f of strength of h i s P a p e r was i n t e n d e d that the paper affairs. He was s u r e , German s t r e n g t h If have been v e r y and so f a r so f a r State that for of perhaps which of it certainly German it under-estimated the c a p a c i t y engage grave. i n war i n of c o n t i n u e d an e f f e c t i v e Our f i r s t line We c o u l d o n l y fight September, a i r was c o n c e r n e d , as r e s e r v e s w e r e c o n c e r n e d , period. air thought state and was as the was h i g h l y p r e c a r i o u s . short the the industry. v/e h a d h a d t o our p o s i t i o n , of a serious and i n p a r t i c u l a r t h e German a i r c r a f t contained of He however, anything, Labour in the p o s i t i o n n o t b a s e d on any o v e r - e s t i m a t e If The countries. to meet. disclosed to o b t a i n e d from Secretary c o n t a i n e d no e x a g g e r a t i o n , strength. uifficult an e s t i m a t e w e r e t h e main f a c t o r s any us. submitted by the information the attack rebate. and o t h e r said with Summer S e s s i o n including this These, Air, the appeared to be Air Ministry, to w h i c h was v e r y Memorandum w h i c h h a d b e e n Party at equality who was i n a p o s i t i o n with in These as m e a n i n g t h a t v/e some m e a s u r e o f T h i s was a m a t t e r what strength. i n t e r p r e t e d by p e o p l e should a t t a i n deal our in the air would was w e a k , the position have for a very His colleagues - s t a t e o f affairs might would not he programme a u t h o r i s e a implemented. of State Germany. of Rather giving aircraft when it orders for had however, equality was b a s e d on t h e sufficient industry of fully to occupy a given period. a very the d i r e c t i o n of in He i n v i t e d the a i r . connection action action. our r e s e r v e force called should be strength with the and t h e latest to b r i n g strength of add d e p t h a s w e l l as this for that further a considerable the development Secondly, b u i l d i n g up o u r say t h a t dissent of of to the from t h e s e two of increase in We s h o u l d continue and t h i s to involved en. He was g l a d the Exchequer d i d proposals. The capacity. we must c o n c e n t r a t e the Chancellor of organisation. period, strengths in machines. Force. our p r o d u c t i v e fighter further" equipment We s h o u l d b u i l d up a F o r c e w h i c h c o u l d operate over the increase about a g r e a t length some f o u n d e d on two types the A i r in 218(38j. f i r s t l y , a considerable r e s u l t would be the r e a l clearly CP. we strength in He was c o n f i d e n t to be taken principles: our attention the Indeed, advance German t o p a r a g r a p h 35 o f The p o s i t i o n further limited approaching with principle when t h e p r e s e n t programme was c o m p l e t e d , s h o u l d h a v e made b u t the Lord for Air, That programme, was n o t b a s e d on any m e a s u r e s this r e m e d i e d when i n May l a s t , S w i n t o n was S e c r e t a r y been ask whether not to The S e c r e t a r y bomber s t r e n g t h , of State then d e a l t which he r e g a r d e d Bombers w e r e a v e r y consideration of expensive of his with our counter-d^fensive. as our item indeed, and any programme f r o m t h e f i n a n c i a l v i e w would n a t u r a l l y be l a r g e l y point concerned with this item. The S e c r e t a r y and t h a t that of the Air of State Ministry, necessary force to if that our r e a l was t h a t other ensure while that any c o u n t r y the Further, b e s t means o f country Germany's p o l i c y make a l t e r a t i o n s for a substantial was p o s s i b l e this to concentrate was bomber us deterrent get on l e v e l In to g i v e u s some types, degree of terms types: i n h e r programme of the concentrate number o f measure on h e a v i e r until strength. the It field which were damage and also capable which advantage. From t h e f i n a n c i a l if right it attack c o u n t r y , w h i c h came i n t o a much g r e a t e r a bomber f o r c e to a limited she had a t t a i n e d obtain war, had b e e n t o Germany d i d n o t for was a h e a v y bomber programme a f f o r d e d orders would t h e r e b y it v/orth t h e c a n d l e . was t h e b e s t on g i v i n g l a r g e inflicting own v i e w , fighters, wishing to game was n o t enabling this w i t h Germany. later, of aim was t o p r e v e n t w o r d s , t h e bomber f o r c e a v o i d war. his we s h o u l d a l s o h a v e a s u f f i c i e n t would r e a l i s e t h a t cost that we s h o u l d b u i l d up a s t r o n g f o r c e nevertheless of said point of v i e w , w i t h a g i v e n bomb l i f t we c o n s t r u c t e d h e a v y bombers than i f we at could less we c o n s t r u c t e d medium b o m b e r s . A considerable industry was e n g a g e d proportion of t h e in manufacturing aircraft h e a v y bomber types, and i t the was i m p o s s i b l e industry at the present There were was t h e it was n e c e s s a r y the p l a c e of the attached a special p a r a g r a p h 34 o f further jigs under t h i s of Memorandum, e.g., the worst, Reserve Chancellor of it discussed the of their situation. in Exchequer v/ith b y and h i m s e l f for that proposed to a his the Royal A i r could be d e a l t Force, He t h o u g h t the in consultation, them t o be Cabinet. of of importance, repercussions secondly from the p o i n t at in of action and t r a i n i n g f a c i l i t i e s . with the p r e s e n t a t i o n of in He t h o u g h t the State for Air then these proposals, first w h i c h was from t h e p o i n t on I t a l y of and Germany, of view of dealt As r e g a r d s t h e f o r m e r and Parliamentary of aspect, he g a v e a c o n v e r s a t i o n which had t a k e n b e t w e e n t h e German A i r Attache and t h e Chief of view upinion home. particulars to t h a t he­ the purchase contained increase The S e c r e t a r y t h e utmost said then the we out. the p r o p o s a l would n o t be n e c e s s a r y in the orders State then referred proposals the these matters and t h a t to Air h e a d w o u l d e n a b l e us t o meet ancillary Volunteer for if productive follow-on and m a t e r i a l s . The S e c r e t a r y number o f State Memorandum f o r came t o that o r d e r s now b e i n g c a r r i e d and t o o l s t h e worst that consideration to place importance his from time. further The S e c r e t a r y if discharges t o s u c c e e d i n b u i l d i n g up a r e a s o n a b l e capacity, take to contemplate some place of the Air Staff that morning, i n t h e Sunday p r e s s out of an i m m e d i a t e character any s t a t e m e n t give reserves. of of So f a r large to clear of as t o defensive the of we the of the r e s e r v e s make p r o v i s i o n aircraft of Governments of our counter­ pax^ticularly special State emphasised t h a t types N o r d i d he p r o p o s e our intention to he in regard to did to make concentrate to indicate that there s t r e n g t h would be i n c r e a s e d , Force intended strengthening our o v e r s e a s r e q u i r e m e n t s , *ho the n e c e s s i t y that on type. in the l i g h t Royal Air the training. He a l s o p r o p o s e d sary, thought, he strength. t h e h e a v y bomber overseas he as "bombers w e r e c o n c e r n e d , and t o for any s t a t e m e n t our carry strength that n o t p r o p o s e t o make any announcement be a r e v i e w to to The S e c r e t a r y reserve statement in regard numbers o f indispensable our a Air proposed s a y no more t h a n t h a t defensive f o r c e the for and p a r t i c u l a r l y i n t e n t i o n v/as to i n c r e a s e for emphasising State priority force proposed to in the conversation, s h o u l d make i t highest our f i g h t e r of o u r programme. The S e c r e t a r y to increase This importance of result t h a t we w e r e p r o p o s i n g large the A i r F o r c e . showed t h e as t h e of for that review. and o f t.h and if that neces­ He w o u l d a l s o accelerating reserve would the t r a i n i n g Q Royal M.v of refer the fbroi i t s e l f The S e c r e t a r y of State it s h o u l d b e made c l e a r of our p r e v i o u s strength, it objective, adequate declarations our weakness, this to point, necessary to of reassure very to line that were to say could be the the taking, The f i g u r e to provoke undesirable give reasonable ooncerned. on t h i s in of that so f a r consultation. it mainly of was in effort our the rest, be expressed proposed, the in steps terms o f i n Germany, as this but country in order such a n a t u r e the p u b l i c the Exchequer, us. concerned. For the p o s i t i o n repercussions by continued, r. r e a l some r e a l m e a s u r e o f should be s e t t l e d the Chancellor attack had b e e n wc w e r e i n c r e a s i n g assurance Force State as t h e A i r was He p r o p o s e d t h a t point and h i m s e l f , country s h o u l d n o t be our Germany. He t h e r e f o r e express stated of saiu. w o u l d n e c e s s a r i l y country any Air an A i r to presentation s t r e n g t h "rw 3 0 & terms. oixr t h e p i c t u r e was t h a t that Fighter general give to would be tempted to w^s now b e i n g made s o f a r He p r o p o s e d whilst so t h a t no c o u n t r y , the p o s i t i o n v i s - a - v i s side that, t h a t we s h o u l d now s t a t e the Secretary in regard The o t h e r all regard o u r own n e c e s s i t i e s his proposals first in n a m e l y t h a t we must p o s s e s s Up t o directed thought t h a t v;e d i d n o t w i t h d r a w was i m p o r t a n t for r e a s o n of also we money. as to should was announcement by t h e P r i m e Minister, the Foreign Secretary (lie he gave difficulty the f i g u r e in of w o u l d he for the comparatively programme now p u t f o r w a r d the real a t t e m p t by that although represented a very of the A i r . the present p r o p o s a l s When t h e Cabinet t h e i r deliberations would deal with particular decisions in regard to to proposals to give could be it with country's Committee had -chat, started while they individually, those proposals o h e time f a c t o r Committee on t h e t h e y had d e c i d e d r e v i e w when t h e p i c t u r e Owing the small, from only, first financeSo to year THE CHANCELLOR OP THE EXCIU'juIi.R d e a l t in country first resulting our effect this cost if t o make up for deficiencies the cojoue.c_t.ion wa-a^that additional the "present p r o p o s a l s figure this s h o u l d be their subject seen as a w h o l e . had n o t b e e n p o s s i b l e any c o n s p e c t u s of their for proposals as a w h o l e . The C h a n c e l l o r and a h a l f years' years ago, programme programmes of t o b e met b y of for country the total £1,500 m i l l i o n s , second Defence. stage out by in of the the the M i n i s t e r the A d m i r a l t y such a l l o c a t i o n and f o r substantially. had b e e n f i x e d f o r It was certain P r o g r a m m e s a s now p r e s e n t e d and i t might the programme over f i v e years. the Co-ordination fixed Office,^-u£-yfb the A i r The p r e s e n t p r o p o s a l s now a l t e r e d q u i ncjuenni urn. of o r r a t i o n had b e e n t h e War the programme cost for that would be the the over five at t h e programme h a d b e e n An a l l o c a t i o n two The amount o f t a x a t i o n was £ 1 , 1 0 0 m i l l i o n s carried millions, that, had e m b a r k e d upon a re-armament. Since was then p u t a t review the colleagues t o b e met b y b o r r o w i n g h a d b e e n f i x e d 5400 m i l l i o n s . The reminded h i s Ministry. position cost of tike £2,000 w e l l be £2,100 m i l l i o n s for the In 1957 we h a d s p e n t £ 2 6 2 m i l l i o n s including Air Raid Precautions. on 1958 t h e w a s £369 m i l l i o n s , making a t o t a l for o f £631 m i l l i o n s o If the t o t a l the cost was now o v e r £ 2 , 0 0 0 m i l l i o n s something like The T r e a s u r y rates of taxation e.g , This estimate the s o c i a l on t h e b a s i s expenditure interest 0 at the present On t h e b a s i s of this from t a x a t i o n on t h e in that of £1,400 m i l l i o n s an i n c r e a s e t o any of borrowed in the £725 m i l l i o n s to years, as in A p r i l within Act years find during expenditure therefore, from b o r r o w i n g and/or this great any s u b s t a n t i a l p a r t the total defence plus : 0 a in paragraph 5 of CP.-247 (38), which, moderate statement authorised in D He i n v i t e d attention the Appendix he t h o u g h t , w a s of the results of a task to of millions 1937 a n d 1938 - was w h e t h e r t h i s from sum was 1939 t o M a r c h 1942,- i . e * question our powers,, statement increase. T h e r e was, Assuming t h a t raise on to be borrowed over the p e r i o d of Loans The r e a l b*"t n o defence c o m p a r e d w i t h £400 m i l l i o n s the Defence expenditure. quinquennium would b e £178 financial o f £903 m i l l i o n s other existing basis v a s t sum b y i n c r e a s e d t a x a t i o n ) , the millions expenditure rate, 0 years. present ( a n d he l o o k e d f o r w a r d w i t h efforts borrowing over three f i n d £225 a total t o b e met e i t h e r found by borrowing anxiety t o meet in taxation. find c a l c u l a t i o n we c o u l d years £725 m i l l i o n s of on d e b t a n d c i v i l assumed a c o n t i n u a n c e period years programme a f t e r meeting the next three this to services £675 m i l l i o n s two over the next we m i g h t manage a year f o r Defence charges, of the figure we s h o u l d h a v e t o £1,400 m i l l i o n s estimated that defence, was the to very excessive total five borrowing. It was q u i t e certain that sum c o u l d n o t h e p r o v i d e d o u t o f this country. At have considerations defence tolerable. needs. It we s h o u l d n o t a very large carrying financial It was c l e a r ordinarily of vital of to justification importance do especially the of the Defence to estimate of forces. He t h o u g h t which i t a large that was in order of this factor essential contemplate expenditure the A i r to previous of to bear figure a year., which estimates. maintenance i n mind. Ministry Force The p u t a t £110 m i l l i o n s addition to endure He h a d a s k e d t h e A i r cost to Force. to the maintenance the r e v i s e d Programme. had b e e n t e n t a t i v e l y represented referred b u t he t h o u g h t n o - o n e w o u l d the maintenance on t h e b a s i s for articles p r o v i d e d f r o m b o r r o w e d money w e r e l i k e l y we s h o u l d b o r r o w f o r undertook so. borrowing if that intention enlarged A i r for over as the Exchequer a l s o the purely should and t h e n f o u n d t h a t maintenance o f b u i l d up o u r f o r c e s , that arrangements contemplate r e a s o n s we w e r e u n a b l e some t i m e ; we a n d a n n o u n c e d our through, The C h a n c e l l o r for that i n t o a p o s i t i o n w h e r e b y we programme, There might be that financial was, however, get it of of should have p r i o r i t y to he p r e p a r e d t o f a c e the cost the savings w h i c h we s h o u l d n o t of enormous t h e same t i m e he d i d n o t s u g g e s t financial vital this c o s t s was one The C h a n c e l l o r also referred w h i c h he had e x p e r i e n c e d i n large figures and w h i c h i t of programme, w i t h strength. explanation lay mainly rate, to order of difficulty the already the f i g u r e s and r e s e r v e the reconciling aeroplanes was p r o p o s e d to very ordered u n d e r t h e new our first-line He u n d e r s t o o d t h a t in the very high and i n t h e number o f m a c h i n e s the v/astage required for training. Turning Chancellor of to paragraph 30 o f the Exchequer C.P.-218 said that cost t h e new F i g h t e r programme there millions, t h e Bomber programme and t h e c o s t £175 m i l l i o n s . of These f i g u r e s the machines maintenance only construction the Chancellor single of cost for the v e r y were important had r e i n f o r c e d the types these very big his view that special and t h a t it emphasis This there favour consideration was d e s i r a b l e on p r i o r i t y on t h e F i g h t e r orders flown. that and i n proposed that that for the manifestly special part should be placed the t o t a l f i g h t e r no machines he f e l t Such a programme was emphasis s h o u l d b e l a i d of on type, now p r o p o s e d h a d nevertheless He t h e r e f o r e one-half l a r g e bomber on h e a v y b o m b e r s . F i g h t e r programme. defensive. concentrate arguments b o t h a g a i n s t concentrating we s h o u l d l a y to the Exchequer p o i n t e d out that would c a r r y armour, for covered the the p r o p o s a l of specimen of programme, of o u t was £45 and made n o p r o v i s i o n W h i l e he a p p r e c i a t e d t h a t of the charges. In regard to the of set the (38), programme. of the forthwith A S r e g a r d s Bombers sufficient orders dismissals in the C h a n c e l l o r should be p l a c e d the a i r c r a f t s e c u r e an a d e q u a t e flow to factories thought avoid substantial concerned, of p r o d u c t i o n . to volume o f secure r a p i d Some o f production, completion t h e r e was a n o r m a l For should p r o c e e d selves to of orders, complement of time being, on t h i s b a s i s , the v a s t to difficult to yet in ensure thought and s h o u l d n o t that those that we commit oxitlay i n v o l v e d by the whole find full it of our­ the very meet, As r e g a r d s p a r a g r a p h 52 o f h e was n o t a employment i n he to orders. h e a v y Bomber p r o g r a m m e , w h i c h we m i g h t difficult of was were not would be n e c e s s a r y the it existing t h e shadow f a c t o r i e s and i t factorieso follow-on and Experience showed t h a t u n l e s s c o n t r a c t o r s w e r e a s s u r e d sufficient that"­ clear t h e 2,4-00 " o t h e r CP. 218(58), types" the referred Chancellor why p r o p o r t i o n a l to said i n c r e a s e s were in that required i n Army c o - o p e r a t i o n m a c h i n e s and i n t h e F l e e t - a i r Arm. He thought Secretary that of this State As r e g a r d s demand m i g h t b e for Air and h i m s e l f the proposed r o n s , he a g r e e d w i t h the examined by increase Secretary of in in the consultation. Overseas State for Squad­ air t h i s matter might be r e m i t t e d t o t h e Committee o f that Imperial Defence. He t h o u g h t right that in the great provision of jigs, the Secretary ence tools and m a t e r i a l s , capacity. t o b e made i n t o the f a c t f o r Air importance which he a t t a c h e d increasing potential statement of State that t h e House s h o u l d i n c l u d e talcen i n he thought Secretary could of dealt v/ith i n C P . e a s i l y be adjusted between a State f o r Air -21­ and h i m s e l f . refer­ this 218(58) the to the direction. The o t h e r p r o p o s a l s the with a view He a g r e e d t h a t steps were being to was T o sum u p , h i s main p o i n t the Chancellor' o f was t h a t we s h o u l d c o n c e n t r a t e Fighter programme. propose that involved necessary As regards the Cabinet definite the p l a c i n g of orders if rises but strength, which in f ull work. inflation. clear T h i s w o u l d mean and i n i n t e r e s t some r e a l injury rates, t o our which c o n s t i t u t e d a f o u r t h and financial arm o f defence. THE SECRETARY OF STATE FOR HOME AFFAIRS s a i d that h e was much i m p r e s s e d w i t h t h e s t a t e m e n t made b y the Chancellor con­ of the Exchequer. He s u g g e s t e d s i d e r a t i o n might be g i v e n i n the near q u e s t i o n whether Government's Continuing, that it an e x a m p l e , that our for of first figure for This the outside far of the f i r s t - l i n e in refraining shop window. of for Air State he thought but To give proposed to increased t o a n y b o d y an would not for Air to give strength. a l s o wondered whether AJ.r was n o t all, years which everybody woxxld b e convey from p v i t t i n g h i s After the t h e House o f Commons He a s k e d w h e t h e r i t Secretary State for strength, would not T h e Home S e c r e t a r y Secretary State 30 o r 4 0 S q u a d r o n s , 3,700 F i g h t e r s . possible explain to of line Fighter cent. the Germany, t h e programme now p r o p o s e d . the Secretary was now a b o u t 30 p e r said that could e a s i l y be explained to extent to War. t h e Home S e c r e t a r y would not b e easy t o the r e a l future a s had b e e n d o n e i n t h e immediately p r e c e d i n g the Great t h e programme that the Opposition should be taken i n t o confidence, be t h e programme now p r o p o s e d we i n wages, involve not authorise s i d e he w a s b y no means through without might w e l l t h e Bombers h e d i d f r o m Bombers a s q u i c k l y a s m i g h t we w e r e t o a d o p t in prices, that on t h e t h a t we s h o u l d to keep the f a c t o r i e s should get said should reach a conclusion figures, On t h e f i n a n c i a l that the Exchequer going rather goods i n the too the one main p u r p o s e o f the say knew by order be some Royal A i r F o r c e was t o was t h e r e f o r e the act as a d e t e r r e n t , much t o be s a i d f o r impressive size Finally, laying and s t r e n g t h o f by the A i r Defence Research Committee. perhaps of the of of air warfare. the utmost e v e n more to the Much h a d b e e n Air importance, a t t e n t i o n might scientific his Paper, and he t h o u g h t be p a i d to i n which r e f e r e n c e research. in his had a l r e a d y this to strengthen of p r e s e n t a t i o n , his finger from e x p r e s s i n g that Co:nmons He the staff he thought that there was a n y way, our r e a l F i g h t e r strength would to disclose validity relation t o Bombers. this any f i g u r e argument of add t o proposed. was p e r h a p s alternative the f i r s t - l i n e money, reserves, in regard to Fighters Another the diffi­ of less to concerned in terms somewhat c o u r s e , be 0 t h e programme a l t h o u g h he a g r e e d t h a t of to this b e i n c r e a s e d many t i m e s b y t h e programme now He was r e l u c t a n t para­ to on t h e r e a l He h a d c o n s i d e r e d w h e t h e r indicating to research. Home S e c r e t a r y h a d p u t culty. i n t h e House o f taken steps On t h e p o i n t of that aspect was made He s a i d he w o u l d r e f e r statement scientific apart was matter. g r a p h 38 o f with done defence THE SECRETARY OF STATS FOR A I R r e f e r r e d matter on Force. t h e Rome S e c r e t a r y r e f e r r e d aspect there emphasis our A i r scientific now a m a t t e r and of than in would, strength of Fighters. matter THE SECRETARY OF STATE FOR A I R t h o u g h t t h a t i t was a for should be consideration whether explained in somewhat m o r e detail leaders of the O p p o s i t i o n p a r t i e s the p o s i t i o n confidentially and a l s o to Mr. to the Churchill. In regard the Secretary feel that the A i r it of w o u l d he of that the increase s t a t e how much o f s a i d t h a t he d i d say t h a t not whereas current year wore of to £80 m i l l i o n s £120 that next y e a r ' 3 t h e new p r o g r a m m e , o n l y £25 millions t h e p r o p o s a l s now u n d e r He t h o u g h t 0 presentation t h e y w o u l d h e £200 m i l l i o n s , attributable discuss ion Air enough t o for next year would he to t h e manner o f State for Estimates niillions, since to if h e was a s k e d e x p e n d i t u r e was h e was bound t o answer to due that question. THE CHANCELLOR OP THE EXCHEQUER s a i d t h a t would f i n d difficulty t h e programme further if in i n terms agreeing of money ahead than 1939-40. we a n n o u n c e d t h a t to to would be we i n t e n d e d t o l a r g e programme and l a t e r a statement related It he a of period disastrous carry out a had t o c a n c e l p a r t very of the programme. THE SECRETARY OP STATE FOR A I R , w h i l e this difficulty, questions: r e p e a t e d t h a t he would be asked first, how f a r the Government s w i t h Germany; v/as t h e t h e new p r o g r a m m e . w o u l d be v e r y of difficxilt question by saying After terms of further to the Foreign Secretary in him t o consultation. He t h m i g h t answer he was u n a b l e it what to the cost give figures. was a g r e e d t h a t of Secretary the of the of i n v o l v e d s h o u l d be the Chancellor and t h e it second t o b e made i n t h e House the the Prime M i n i s t e r , Air, and, s e c o n d l y , discussion the statement Commons r e l a t i n g by that for two proposals 1 achieved p a r i t y cost appreciating settled Exchequer, State for THE CHANCELLOR OP THE DUCHY OF LANCASTER observed that of State his experience f o r A i r had s a i d . possession of challenge information any s t a t e m e n t w h i c h was n o t put c o n f i r m e d what t h e Secretary The O p p o s i t i o n w e r e in w h i c h w o u l d e n a b l e them of the Government's forward with to programme a considerable degree of frankness. THE MINISTER OF HEALTH r e f e r r e d particulars given in C P . t h e German a i r c r a f t industry. figures were v e r y sort "White War". of easy t o defend. figures the of as t o that -We w e r e now, He d i d n o t think that with production of the e f f o r t we w e r e u n a b l e t o of a long period of which t h i s our h i s t o r y . this It we s h o u l d make a s u p r e m e e f f o r t even if in fact, the out that we w e r e now i n a p e r i o d Further, we had one and a h a l f a potential labour source however, done without a supreme in this source of that it represented to falling He pointed prices. m i l l i o n unemployed, which of if untapped revenue applied. He and p e r h a p s w i t h o u t o r g a n i s a t i o n of a s he u n d e r s t o o d t h e m a t t e r , her this seme r a d i c a l Germany was g r e a t l y imports of raw exchange materials. so far helped armament programme b y h e r e x p o r t her this country. i n arms w h i c h h a d g i v e n h e r t h e f o r e i g n which she paid f o r end direction would be hard t o g e t effort make. necessary THE SECRETARY OF STATE FOR A I & s a i d t h a t in paying f o r a would would be t h e might be c o u l d be p r o p e r l y appreciated, i n the in figures ought meant b o r r o w i n g £ 1 , 0 0 0 m i l l i o n s . represented these i n Germany country obtain parity, that it of He w o n d e r e d e v e n now w h e t h e r , t h e If change growth our own p r o p o s e d p r o d u c t i o n r e a l l y extent this the the He t h o u g h t disquieting. comparing our p r o d u c t i o n be 222 ( 3 8 ) to trade with He enquired whether we ourselves could not again build up an export trade in armaments? THE LORD CHANCELLOR said that he had paid great attention to the proposals put forward and the arguments used in discussion, and he was in agreement with the views stated by the Chancellor of the Exchequer. He thought that we should take steps to obtain the necessary material, jigs and tools, etc., so as to be in a position to carry out the f u l l programme i f need be. I t might be that Germany would be able to continue to increase her productive capacity, but he rather doubted whether this would prove the case. He thought that we should be most i l l - a d v i s e d to take the risks referred to by the Chancellor of the Exchequer, until i t was absolutely necessary that we should do so. THE SECRETARY OP STATE FOR AIR said that he agreed with the Chancellor of the Exchequer that i f we were involved in war, we must have sufficient financial strength to maintain ourselves. We no longer possessed the same financial assets as we had before the Great War. He thought that this consideration f u l l y justified the adoption of the course proposed by the Chancellor of the Exchequer. The new programme represented a very considerable effort on our part. He thought that the programme need give rise to no awkward repercussions in Germany; at the same time, i f i t could be properly presented, it should and would satisfy public opinion in this country. m THE PRIME MINISTER a g r e e d about the question v/e w e r e d o i n g ciliation these it to drive and r e a r m a m e n t . in step. over that industrial that o u r bomber difficult this strength, to represent side t h a t he f e l t of very proposed. the strength the first It our f o r c e that as we s a i d t h a t he t h o u g h t l i e must say the proposal type of reasons i n favour extremely however, the of had s t a r t e d we of State of satisfaction "Dreadnoughts for Air this The P r i m e w h i c h had by this starting this new an a d v a n t a g e over all that by Before now starting formidable. v/e w e r e g a i n i n g o t h e r m a r i t i m e Powers,, that v e r y h e a v y bomber the S e c r e t a r y had b e e n thought then been f o r c e d was to building of b a t t l e s h i p of it was u n d e s i r a b l e He a g r e e d w i t h recalled, countries the it on t h e new t y p e w h i c h w o u l d b e type the the programme. t h e r e v/ere w e i g h t y country. and cordially he thought this part uneasy about should concentrate greeted he Everyone would a g r e e The P r i m e M i n i s t e r Minister that Germany capacity our f i g h t e r must h a v e b o m b e r s , b u t he t h o u g h t that keep a Germany had the p r o p o s a l g e n e r a l l y , i n a n y way d e f e n s i v e . stress we c o u l d b e a t was n o t m e r e l y respect to increased. As r e g a r d s rather the l a t t e r with the suggestion should be of art us. As r e g a r d s agreed con­ was w o r t h r e m e m b e r i n g also advantage abreast, It question of in policy was a v e r y n i c e Such a r a c e force; I n our f o r e i g n two h o r s e s i n an armament r a c e . money, b u t difficulties It was n o t b y a n y means c e r t a i n labour t h e r e were of presentation. our b e s t two s t e e d s that long, 1 however, to b u i l d Dreadnoughts, other and v/e h a d t o r e b u i l d t h e whole o f our B a t t l e F l e e t . The r e s u l t had b e e n t h a t and o f their on t h e b u i l d i n g the proposal of i n Germany p r o d u c i n g matter which c o u l d be a super concentrate would not Halifax.. that t h i s was n o t a of in regard to i t , b t a t e would g i v e and h e further d e c i d i n g w h i c h was bound hoped consideration' the r i g h t course adopt. The P r i m e Minister said that he noted h e a v y "bombers c o s t a s much a s f o u r that on the. h e a v y concentration c r e w s and s o f o r t h . than t h e l o s s feeling covey that of of it He the l o s s a far of to grass i n the l i g h t THE FOREIGN SECRETARY p o i n t e d limitation out o f armaments was o b t a i n e d , p r o b a b l y b e made b y b a n n i n g t h e s e v e r y of to they a l l the M i n i s t e r Surely, policy however, for think i t this felt was t h e r i g h t the whole birdo re­ qualitative a start would large bombers. said referred in was what was t h e For h i s p a r t , policy help that i f o f H e a l t h as t o p r e s e n t a t i o n country? blow discussion. the d i f f i c u l t y the r e a l point of the THE MINISTER FOR CO-ORDINATION OF DEFENCE t h a t no doubt one t h a n t o b r i n g down o n e l a r g e the problem a f r e s h in He c o u l d n o t w o u l d b e more d i f f i c u l t these agreed more f o r m i d a b l e THE SECRETARY - OP STATE FOR A I R u n d e r t o o k examine one o f t y p e meant economy a s m a l l e r machine., small b i r d s that fighters. Nevertheless, t h e s e machines would r e p r e s e n t by help s e t t l e d by laymen, but he f e l t to t h e p r o b l e m " b e f o r e to He c o u l d n o t and H a l i f a x e s agreed to e x p r e s s h i s u n e a s i n e s s the S e c r e t a r y armaments t h a t we s h o u l d Manchesters The P r i m e M i n i s t e r that of naval c o s t had been r a i s e d , . wondering whether result the whole l e v e l he d i d t h a t we s h o u l d try to Parliament. right not to match Germany m a c h i n e b y m a c h i n e . statement He i n v i t e d i n p a r a g r a p h 15 o f v/as s t a t e d that u to achieve CP. capable of delivering at the required r a n g e " . said we v/ere i n a p o s i t i o n in sufficient strength that least this if follow our in air striking an e q u a l to deliver to create any i n c r e a s e of also the proposal force emphasised in regard to must b e o f bombs the an a t t a c k a deterrent at Minister He t h o u g h t that on Germany effect, it i n German s t r e n g t h must n e c e s s a r i l y b e f o l l o w e d b y an i n c r e a s e The M i n i s t e r it striking load statement. ^ i n which speaking as a layman, t h a t he d i s p u t e d did not 218(38), equality p o w e r w i t h Germany means t h a t attention in our the importance jigs, tools own strength. in his and view materials. T h i s was a p o i n t w h i c h had b e e n e m p h a s i s e d b y a l l the experts. THE SECRETARY OP STATE FOR A I R Staff reply ordination v/ould to of Defence be strength; the p o i n t made b y was, h e said that the Air the Minister for Co­ thought, that argument s o u n d , p r o v i d e d we h a d s u f f i c i e n t but at t h e moment t h i s v/as n o t hoped the C a b i n e t would reach agreement the present discussion. it open t o t h e would be the F o r e i g n S e c r e t a r y and s a y t h a t of this to It was c l e a r l y Chancellor come t o of fighter the case. He as the r e s u l t of understood the Exchequer the Cabinet at t h e programme must b e r e v i e v / e d i n the f i n a n c i a l situation necessary by reason or that it of the betterment that or any" t i m e the light was no longer of International the situation. The C a b i n e t ' s are set decisions in regard out i n d e t a i l at t h e end o f to the Air this Minute. Programme THE HOME SECRETARY, p a r a g r a p h 24 o f CP. 247 ( 3 8 ) , s a i d questions were r e f e r r e d legislation. with he thought anything, Bill should a c c e p t side by the Lord P r i v y For erred, of moderation, the subject to further to deal Raid the the p r o p o s a l s rest, if Cabinet consideration Sealo THE LORD P R I V Y SEAL s a i d agreement w i t h involve w o u l d he b e t t e r had b e e n p r e p a r e d . them, certain when t h e p r o p o s e d A i r that while on t h e it to that to which would He t h o u g h t these proposals Precautions referring the proposals t h a t he was generally, ox* two m i n o r m a t t e r s h e m i g h t d e s i r e to in b u t on o n e suggest some modification. R e f e r e n c e w a s made t o p a r a g r a p h 24 ( 4 ) shelters as t o the p r o v i s i o n in existing buildings. discussion as to the extent covered p r i v a t e houses. matter the p r o p o s a l of in blast-proof T h e r e was some to which t h i s I t was a g r e e d s h o u l d b e e x a m i n e d when t h e proposal that this Bill was in approve the proposals' draft. The C a b i n e t i n p a r a g r a p h 24 o f Raid Precautions, the Lord P r i v y desirable agreed to CP. 247 ( 3 8 ) subject Seal might to b r i n g before relative to Air t o any m o d i f i c a t i o n s think necessary the Cabinet. or which The C a M n e t A . ADMIRALTY PROGRAMME. Escort Vessels. (1) T h a t t h e A d m i r a l t y s h o u l d h a v e authority f o r t h e i m m e d i a t e 3ray ing* down o f t h e f i r s t b a t c h o f 10 E s c o r t V e s s e l s , subject to the usual arrangements f o r o b t a i n i n g Treasury sanction. (il) Minesweepers and A n t i Submarine Vessels. New M i n e l a y e r . Defence Ports. of D o v e r and Rosyth Harbours. Defensive Arming o f Large Liners and M e r c h a n t Ships. agreed:- (iii) (iv) (v) (vi) (vii) That the Admiralty should be p r o v i s i o n a l l y authorised to include two b a t c h e s e a c h o f 10 E s c o r t V e s s e l s i n the n o t i f i c a t i o n t o b e made t o Germany i n J a n u a r y , 1 9 3 9 , o f o u r s h i p b u i l a i n g programme o v e r t h e n e x t 12 m o n t h s , s u b j e c t t o the proviso that the inclusion in t h i s n o t i f i c a t i o n o f the second b a t c h shoula be subject to r e c o n ­ s i d e r a t i o n i f , i n t h e meantime, t h i s c o u r s e should appear d e s i r a b l e from the p o i n t o f v i e w o f the S e c r e t a r y of State for Foreign A f f a i r s . ' That the A d m i r a l t y should have authority to obtain Treasury a p p r o v a l i n t h e o r d i n a r y way f o r t h e c o n s t r u c t i o n o f 12 s m a l l s h a l l o w - d r a u g h t m i n e s w e e p e r s , and f o r the expenditure of approximately £ 1 5 0 , 0 0 0 on i m m e d i a t e p u r c h a s e o f corarae r c i a l t r a w l e r s . To r e s t o r e t h e f o u r t h f a s t m i n e l a y e r t o t h e 1938 New C o n s t r u c t i o n P r o g r a m m e , subject t o the usual r e f e r e n c e to the T r e a s u r y I n t e r - S e r v i c e s Committee t ^ - ^ & That the A d m i r a l t y should l a y t h e i r p r o p o s a l s b e f o r e the Joint Oversea and Home D e f e n c e C o m m i t t e e , w i t h a view t o the matter b e i n g brought b e f o r e t h e Committee o f I m p e r i a l Defence. That the A d m i r a l t y should have a u t h o r i t y t o p u t i n hand f o r t h w i t h t h e d r e d g i n g o f D o v e r and R o s y t h Harbours. The q u e s t i o n o f i n v i t i n g a c o n t r i b u t i o n from the Southern R a i l w a y i n r e s p e c t o f Dover Harbour should be considered. That approval should be obtained i n t h e o r d i n a r y way f r o m t h e T r e a s u r y I n t e r - S e r v i c e s Committee to the whole scheme f o r s t i f f e n i n g m e r c h a n t s h i p s . , Passive Defence, O i l Fuel S t o r a g e and Ammunition Storage. Fleet Air Arm. F l e e t A i r Arm Aerodrome a t Scapa F l o w . New Signal School. Armour P l a t e . Recruitment of Skilled ' Ratings. (vilij (ix) (x) (xi) (xii) (xiii) (xiv) That the A d m i r a l t y r e q u e s t f o r t h e e x p e n d i t u r e o f an a d d i t i o n a l B u m o f a p p r o x i m a t e l y £1% m i l l i o n s on t h e c o m p l e t i o n o f t h e p a s s i v e defence o f Naval Establishments s h o u l d b e t a k e n up d i r e c t v/ith t h e Treasury. In the event o f a d i f f e r e n c e of o p i n i o n between the two D e p a r t m e n t s t h e m a t t e r s h o u l d b e r e f e r r e d t o the Committee o f Imperial Defence. That the A d m i r a l t y ' s p r o p o s a l s f o r a c c e l e r a t i n g t h e programmes o f c o n s t r u c t i o n of underground s t o r a g e f o r o i l f u e l and a m m u n i t i o n s h o u l d b e c o n s i d e r e d as e a r l y a s p o s s i b l e b y t h e A d n i r a l t y and Treasury in consultation. T h a t t h e A d m i r a l t y and t h e A i r M i n i s t r y should examine i n c o n s u l t a t i o n the d e f i c i e n c y in a i r c r a f t f o r t h e F l e e t A i r Arm r e v e a l e d during the recent emergency. T h a t t h e p r o v i s i o n o f an a e r o d r o m e a t S c a p a F l o w f o r t h e u s e o f the.... F l e e t A i r Arm i n w a r - t i m e s h o u l d be approved in p r i n c i p l e , the d e t a i l s b e i n g t a k e n up i n c o n s u l ­ t a t i o n b e t w e e n t h e T r e a s u r y and the Admiralty. That the A d m i r a l t y p r o p o s a l f o r t h e p r o v i s i o n o f a new S i g n a l School should be approved in p r i n c i p l e , the d e t a i l s b e i n g t a k e n up i n c o n s u l t a t i o n b e t w e e n t h e T r e a s u r y and t h e A d m i r a l t y . That the A d m i r a l t y be a u t h o r i s e d t o p l a c e an o r d e r i n C z e c h o s l o v a k i a f o r 2 , 2 0 0 t o n s o f armour p l a t e , subject to approval being obtained i n t h e o r d i n a r y way f r o m t h e Treasury I n t e r - S e r v i c e s Committee. That the t h r e e Defence S e r v i c e s should c o n s i d e r the Recruitment of Skilled Ratings conjointly in c o n s u l t a t i o n with the M i n i s t r y o f Labouro WAR OFFICE PROGRAMME. Anti-aircraft Equipments. The C a b i n e t agreed:' ( i ) T h a t t h e number o f anti-aircraft equipments a t p r e s e n t a u t h o r i s e d s h o u l d b e i n c r e a s e d t o t h e number s p e c i f i e d i n t h e " I d e a l Scheme" f o r the A i r D e f e n c e o f G r e a t B r i t a i n , and such a d d i t i o n a l numbers a s m i g h t b e agreed are r e q u i r e d f o r p o r t s abroad £ See Conclusion A ( v ) , ^ / ( i i ) T h a t t h e War O f f i c e s h o u l d b e a u t h o r i s e d t o c r e a t e the c a p a c i t y r e q u i r e d f o r c a r r y i n g out the i n c r e a s e d programme, and t o p l a c e i m m e d i a t e o r d e r s f o r a d d i t i o n a l e q u i p m e n t s i n so f a r a s such o r d e r s w e r e e s s e n t i a l G O t h e d e v e l o p m e n t o f new c a p a c i t y t o r e a c h t h e s t a g e o f p r o d u c t i o n and d e l i v e r y . Treasury a p p r o v a l f o r the proposals should be o b t a i n e d i n the o r d i n a r y way. Light AntiAircraft Equipments, Searchlights. Predictors, Heightfinders, Fuze S e t t e r s and M e c h a n i c a l Fuzes, (iii) T o t a k e n o t e t h a t t h e q u e s t i o n o f t h e p o s s i b i l i t y o f o b t a i n i n g f r o m any source, B r i t i s h or f o r e i g n , deliveries o f 1,000 l i g h t a n t i - a i r c r a f t e q u i p ­ m e n t s o f any t y p e i s s t i l l u n d e r e x a m i n a t i o n b y t h e War O f f i c e . (iv) T h a t t h e War O f f i c e s h o u l d b e a u t h o r i s e d t o p l a c e o r d e r s f o r such a d d i t i o n a l s e a r c h l i g h t s a s a r e r e q u i r e d up t o a t o t a l o f 600 ( i n c l u d i n g a p p r o x i m a t e l y 5 0 w h i c h may b e r e q u i r e d a t p o r t s a b r o a d - s e e C o n c l u s i o n A ( v ) ) on t h e u n d e r s t a n d i n g t h a t b e f o r e such o r d e r s are p l a c e d d e t a i l e d arrangements a r e made w i t h t h e T r e a s u r y . (v) T o t a k e n o t e t h a t t h e War O f f i c e w i l l g e t i n t o touch w i t h the Treasury i f the need a r i s e s f o r i n c r e a s e d f i n a n c i a l p r o v i s i o n f o r the purpose of p l a c i n g orders f o r p r e d i c t o r s abroad. ( v i ) That orders f o r h e i g h t f i n d e r s , fuze s e t t e r s and m e c h a n i c a l f u z e s , s h o u l d , i f n e c e s s a r y , be p l a c e d abroad, subject to Treasury approval being o b t a i n e d i n the o r d i n a r y way. Keeping Firms i n Production. ( v i i ) That a u t h o r i t y s h o u l d be g i v e n f o r the p l a c i n g of the a d d i t i o n a l orders necessary t o keep i n p r o d u c t i o n u n t i l 3 1 s t March, 1940, f i r m s which have been converted i n t o munition f i r m s , subject to approval being obtained in t h e o r d i n a r y way f r o m t h e T r e a s u r y I n t e r - S e r v i c e s Committee. Payment o f Compensation i n connection with P r i o r i t i e s . Role of t h e Army. (viii) (ix) That, with a view t o securing the n e c e s s a r y p r i o r i t y f o r munitions p r o d u c t i o n , the Treasury should g i v e favourable c o n s i d e r a t i o n t o any p r o p o s a l s f o r compensation t o f i r m s which t h e S e r v i c e D e p a r t m e n t s may t h i n k i t r i g h t t o p u t f o r w a r d t o them, on t h e " b a s i s t h a t e a c h c a s e i s d e a l t w i t h on i t s m e r i t s . That the p r o p o s a l s of the S e c r e t a r y o f S t a t e f o r War, contained i n h i s Paper e n t i t l e d "The R o l e o f the A my i n the light of the Czechoslovakian c r i s i s " s h o u l d he c o n s i d e r e d by t h e Committee of I m p e r i a l Defence. r R e v i e w o f Home Be f e n c e A r r a n g e m e n t s (x) That the M i n i s t e r f o r C o - o r d i n a t i o n of Defence, i n the l i g h t o f the decisions recorded i n these Conclusions, should arrange f o r a comprehensive r e v i e w t o be u n d e r t a k e n o f Home D e f e n c e arrangements, with a view to d e t e r m i n i n g what r e a d j u s t m e n t s are necessary i n order to secure a proper balance. The C a b i n e t oecretarv of C . i - . 218 (38) reservation ( i ) ( i i ) ( i i i ) ( i v ) ( v ) ( v i ) jtate took note for and o f as t o its Air of the i;aper by on t h e . . i r i rogra^une the C h a n c e l l o r o f financial the j the ixchequer' feasibility, and That a p p r o v a l should be g i v e n in p r i n c i p l e to the f u l l prograiome o f 3 , 7 0 0 a d d i t i o n a l f i g h t e r s and a u t h o r i t y f o r t h e p l a c i n g o f o r d e r s as n e c e s s a r y for one-half thereof. T h a t e f f o r t s s h o u l d b e made t o s e c u r e t h e maximum p r o d u c t i o n o f f i g h t e r s w i t h i n the p e r i o d ending March 1 9 4 0 . That the S e c r e t a r y of S t a t e f o r A i r should give further consideration t o t h e p o l i c y o f c o n c e n t r a t i n g on the development and c o n s t r u c t i o n o f the l a r g e h i g h performance bomber c a p a b l e o f c a r r y i n g a v e r y h e a v y bomb l o a d , i n t h e l i g h t o f the d i s c u s s i o n a t the C a b i n e t . That, subject to (iii),approval should be g i v e n f o r the p l a c i n g o f s u f f i c i e n t o r d e r s f o r bombers to avoid substantial dismissals in the a i r c r a f t f a c t o r i e s concerned a n d t o m a i n t a i n an a d e q u a t e f l o w o f p r o d u c t i o n , and, i n t h e c a s e o f any n a t i o n a l f a c t o r i e s d e s i g n e d f o r t h i s work h ut as y e t u n d e r - e m p l o y e d , to secure a r . \ : c o m p l e m e n t of employment. That p r o p o s a l s f o r the i n c r e a s e i n the o v e r s e a s squadrons s h o u l d be r e v i e w e d by the Committee o f I m p e r i a l Defence with a view to making i n a g r e e m e n t w i t h t h e T r e a s u r y such a d d i t i o n s as may be found n e c e s s a r y . That the o t h e r requirements f o r m i s c e l l a n e o u s a i r c r a f t should be examined by the C h a n c e l l o r o f the E x c h e q u e r and 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 , who s h o u l d i f p o s s i b l e a g r e e as t o t h e o r d e r s t o be p l a c e d f o r t h e s e . The S e c r e t a r y o f S t a t e should be a u t h o r i s e d t o s t a t e i n t h e House o f Commons t h a t p r o p e r p r o v i s i o n w o u l d b e made i n t h i s c o n n e c t i o n , p a r t i c u l a r l y as t o t r a i n i n g machines. ( v i i ) ( v i i i ) ( i x ) ( x ) ( x i ) ( x i i ) That in the p l a c i n g o f the orders r e f e r r e d to above the A i r M i n i s t r y s h o u l d consult w i t h the Treasury w i t h a v i e w t o k e e p i n g them a p p r i s e d o f the f l o w o f commitments. T h a t commitments b e y o n d 1 9 3 9 / 4 0 , so f a r as a u t h o r i s e d by the above p a r a g r a p h s , s h o u l d be capable o f t e r m i n a t i o n i n the e v e n t o f n e c e s s i t y on t h e l e a s t o n e r o u s terms t h a t c a n b e arranged. T h a t , i f and when o r d e r s p l a c e d on t h e f o r e g o i n g p r i n c i p l e s b e g i n t o i n v o l v e commitments i n 1940/41 o r l a t e r y e a r s w h i c h are prima f a c i e beyond our r e s o u r c e s , the q u e s t i o n should be brought to the Cabinet f o r review. That the q u e s t i o n o f o b t a i n i n g j i g s , t o o l s and m a t e r i a l s w i t h a view to increasing p o t e n t i a l c a p a c i t y should be r e s e r v e d pending f u r t h e r d i s c u s s i o n between the S e c r e t a r y o f S t a t e f o r A i r and t h e C h a n c e l l o r o f the Exchequer, but t h a t the S e c r e t a r y o f S t a t e should be a u t h o r i s e d to s t a t e i n the Debate t h a t steps are to be t a k e n i n t h i s c o n n e c t i o n s o as t o s e c u r e f u r t h e r and q u i c k e r p r o v i s i o n of a i r c r a f t , should i t b e deemed d e s i r a b l e . T h a t a n c i l l a r y m a t t e r s such as t h o s e a f f e c t i n g t h e R . A . F . Volunteer Reserve should, i f p o s s i b l e , be s e t t l e d w i t h the Treasury but t h a t i t i s recognised that further steps w i l l b e n e c e s s a r y and t h a t a g e n e r a l s t a t e m e n t i n t h e House can b e made i n t h i s c o n n e c t i o n . t h a t t h e s t a t e m e n t t o t h e House o f Commons r e l a t i n g t o t h e c o s t i n v o l v e d should be s e t t l e d by the Prime M i n i s t e r , C h a n c e l l o r o f the Exchequer, the F o r e i g n S e c r e t a r y and t h e S e c r e t a r y of State for A i r in consultation. T h e C a b i n e t agreed:- To approve t h e f o l l o w i n g recommendations o f t h e C a b i n e t C o m m i t t e e on D e f e n c e P r o g r a m m e s and A c c e l e r a t i o n , s u b j e c t t o any m o d i f i c a t i o n s w h i c h t h e L o r d P r i v y S e a l may t h i n k i t necessary or d e s i r a b l e to bring b e f o r e the Cabinet. ( i ) T h a t t h e d u t y o f o r g a n i s i n g a i r r a i d p r e c a u t i o n s s h o u l d be l e f t to t h e l o c a l a u t h o r i t i e s , but t h a t p o w e r s s h o u l d b e taken i n the forthcoming A i r Raid P r e c a u t i o n s B i l l t o d e a l w i t h an a u t h o r i t y which i s c l e a r l y n e g l e c t i n g i t s d u t i e s , and a l s o t o s t r e n g t h e n , i n q u a l i t y and n u m b e r s , t h e r e g i o n a l i n ­ s p e c t o r a t e o f t h e Home O f f i c e . ( i i ) ( i i i ) That a s u b s t a n t i a l cadre o f t h e A i r Raid Precautions S e r v i c e should be r e ­ c r u i t e d and t r a i n e d on t h e b a s i s t h a t , i n w a r t i m e , t h e members o f t h a t c a d r e w i l l b e e m b o d i e d , w h o l e t i m e , as a p a i d Home S e c u r i t y F o r c e . Care should be taken that the recruitment of t h i s F o r c e d o e s n o t p r o c e e d on l i n e s i n c o n ­ s i s t e n t w i t h t h e Government's Man-Power plans. T h a t a s t a t u t o r y , d u t y s h o u l d be p u t on e m p l o y e r s w i t h e s t a b l i s h m e n t s o f more than a c e r t a i n s i z e t o t r a i n t h e i r workpeople in f i r e - f i g h t i n g , f i r s t aid and a n t i - g a s m e a s u r e s . ( i v ) T h a t t h e p r o v i s i o n s h o u l d b e m a d e , through the l o c a l a u t h o r i t i e s , of blast-proof shelter in existing build­ i n g s , by a s u r v e y and by s t r e n g t h e n i n g t h e r o o f o f r e f u g e rooms i n p e a c e - t i m e , and a s s e m b l i n g m a t e r i a l o f t h e r i g h t d i m e n s i o n s f o r i m m e d i a t e a c t i o n i n an emergency. I t w i l l be n e c e s s a r y t o empower a u t h o r i t i e s t o e n t e r b u i l d i n g s f o r t h e p u r p o s e , and t o p a y c o m p e n s a ­ t i o n t o t h e owner f o r d i s t u r b a n c e o f user, ( v ) T h a t t h e s u r v e y r e f e r r e d t o i n ( i v ) s h o u l d b e u n d e r t a k e n by t h e l o c a l a u t h o r i t i e s , under the guidance o f e x p e r t a d v i s e r s l e n t by t h e Home Office. ( v i ) T h a t t h e l o c a l a u t h o r i t i e s s h o u l d b e empowered t o make bye-Daws r e q u i r i n g new *multiple' buildings to include A,R.P. features. ( v i i ) T h a t e m p l o y e r s s h o u l d b e r e q u i r e d t o t a k e stich a c t i o n as i s reasonable to protect t h e i r workpeople. ( v i i i ) T h a t t h e t r e n c h s y s t e m b e g u n d u r i n g t h e c r i s i s s h o u l d b e c o m p l e t e d and extended g r a d u a l l y , b o t h i n open s p a c e s and i n g a r d e n s . ( i x ) To t a k e n o t e t h a t t h e in consultation with the o f " t l i e ^ I i i x c h e q u e r , tSeT Chancellor the Minister of Labour and any other Ministers concerned, would consider the practicability of giving work on treneh digging to men in receipt of Unemployment Assistance. Richmond T e r r a c e , 7th November, S.V/.1. 1938.