(c) crown copyright Catalogue Reference:CAB/65/20/19 Image Reference:0001 THIS DOCUMENT IS T H E PROPERTY OF H I S BRITANNIC M A J E S T V S Printed for the War Cabinet. GOVERNMENT December 1 9 4 1 . SECRET. Copy No. W.M. (41) , 126th Conclusions. TO BE K E P T U N D E R LOCK A N D KEY. It is requested that special care may be taken to ensure the secrecy of this document. W A R CABINET 126 ( 4 1 ) . CONCLUSIONS of a Meeting of the War Cabinet held at 1 0 Downing S.W.1, on Wednesday, December 1 0 , 1 9 4 1 , at 6 P . M . Street, Present: The Right Hon. W I N S T O N S. C H U R C H I L L , M.P., Prime Minister (in the Chair). The Right Hon. C R. A T T L E E , M.P., The Right Hon. Sir J O H N A N D E R S O N , M.P., Lord President of the Council. Lord Privy Seal. The Right Hon. L O R D B E A V E R B R O O K , The Right Hon. A . G R E E N W O O D , M.P., Minister of Supply. Minister without Portfolio. The Right Hon. Sir K I N G S L E Y W O O D , The Right Hon. E R N E S T B E V I N , M.P., Minister of Labour and National M.P., Chancellor of the Exchequer. Service. The following were also present: The Right Hon. Sir E A R L E P A G E , Special Envoy from the Government of the Commonwealth of Australia. The Right Hon. H E R B E R T M O R R I S O N , The Right Hon. V I S C O U N T C R A N B O R N E , M.P., Secretary of State for the Home Secretary of State for Dominion Department and Minister of Home Affairs. Security. The Right Hon. L . S. A M E R Y , M.P., The Right Hon. L O R D M O Y N E , SecreSecretary of State for India and tary of State for the Colonies. Secretary of State for Burma. The Right Hon. A. V . A L E X A N D E R , Captain the Right Hon. H. D. M.P., First Lord of the Admiralty. M A R G E S S O N , M.P., Secretary of State for War. The Right Hon. Sir A R C H I B A L D The Right Hon. T H O M A S J O H N S T O N , SINCLAIR, Bt., M.P., Secretary of M.P., Secretary of State for Scotland State for Air. (Items 4 - 5 ) . The Right Hon. R. S. H U D S O N , M.P., The Right Hon. L O R D L E A T H E R S , Minister of Agriculture and Minister of Transport (Item 3 ) . Fisheries (Items 4 - 5 ) . The Right Hon. B R E N D A N B R A C K E N , The Right Hon. H U G H D A L T O N , M.P., Minister of Economic Warfare M.P., Minister of Information. (item 3 ) . Mr. R I C H A R D L A W , M.P., Parliamentary Sir O R M E S A R G E N T , Deputy Under­ Secretary of State, Foreign Office Under-Secretary of State, Foreign (Items 1 - 3 ) . Office (Items 1 - 3 ) . Secretariat. Sir Mr. Mr. [23251] EDWARD W. L. F. D. BRIDGES. WILKINSON. BURGIS. B 44 WAR CABINET 126 (41). CONTENTS. Minute No. Subject. 1 General Military Situation 2 The Far East .... 3 Shipping Page. 215 .... .... .... 215 215 S p a n i s h p r o p o s a l t o a c q u i r e 3 0 0 , 0 0 0 t o n s of F r e n c h s h i p p i n g . 4 Man-Power .... .... .... .... .... .... .... 216 .... .... 216 C a l l - u p of a g r i c u l t u r a l w o r k e r s . 5 Parliament .... .... .... P o s i t i o n of M . P . ' s u n d e r t h e N a t i o n a l S e r v i c e A c t s . 6 Ireland 217 7 Wages and Cost of Living .... 217 General Military Situation. - 1. The Prime Minister referred to the grievous loss which we had sustained by the sinking of H.M.S. Prince of Wales afldf H.M.S. Repulse. The loss of these two ships; coming on the top of the disaster which the Americans had sustained at Pearl Harbour, entirely; changed the balance of naval forces in the Pacific. Until the position could be brought round, we should have to suffer considbr^ able inconveniences; our shipping would be exposed td enemy attack, and we might have to take a lot of punishment in this area. There-Were Other important developments in the general war situation. First, the United States was now in the war with us. Secondly^ there Was no doubt that the German armies had suffered a serious defeat on the Russian f r o n t - a defeat which, if the Russians Were able to exploit it, might have very important conse­ quences. Thirdly, so far as the battle in Libya was concerned, we could now say that the tide had definitely turned in our favour and that Tobruk had been relieved. These developments far outweighed the immediate consequences of the position in the Far East, serious as they were. The Prime Minister said that he proposed to make a statement in Parliament on the general situation on the following day, in the course of Which he would announce the change which had been made in the Command of the Eighth Army in the Western Desert. s 1 (Previous Bef erence: W ; M . (41) 125th Conclusions, M i n u t e 3.) The War Cabinet took note of these statements. The Far East. (Previous Reference: W . M . (41) 1 2 5 t h Conclusions, M i n u t e 1.) 2. Further discussion took place on certain aspects of the situation in the Far East, and is recorded in the Secretary's Standard File of War Cabinet Conclusions. Shipping. 3 The War Cabinet had before them a Memorandum by the Secretary of State for Foreign Affairs (W.P. (41) 295) setting out the conditions on which, in the view of the Ministers concerned, British approval might be given to a scheme for the transfer to the Spanish flag of 300,000 tons of French shipping now idle in the Mediterranean. It was most unlikely that the Spanish and Vichy French authorities would agree to all these conditions. The Spaniards had, however, asked for our views, and a draft telegram to His Majesty s Ambassador at Madrid was annexed to the Memorandum. Spanish pro­ posal t o acquire 3 0 0 , 0 0 0 t o n s of French , shipping. 1 The War C a b i n e t ­ (1) Approved the despatch of the draft telegram annexed to W.P. (41)295. (2) Authorised the Ministers concerned to agree to some measure of modification in the conditions proposed, at their discretion, provided that they were fully satisfied that the resulting deal would be ih our interest; [23251] Man-Power. C a l l - u p of Agricultural Workers. (Previous Reference: W . M . (41) 2 l s t Conclusions, M i n u t e 5.) 4. The War Cabinet had before them Memoranda by the Lord President of the Council (W.P. (G) (41) 147) and the Minister of Supply (W.P. (G) (41) 146). The question at issue was whether 7,000 agricultural workers should now be called up for service in the Armed Forces. These formed part of a total of 22,000 men whom it had been agreed should be taken from agriculture into the Services during 1941, but whose call-up had been deferred. In discussion, the following points were made :— (i) The Minister of Agriculture andFisheries referred to the large number of men which agriculture had already contributed to the Armed Forces. How could the industry be expected to give increased production in 1942 with fewer men ? m e n (ii) The Secretary of State for Scotland said that Scottish agriculture was already short of 4,000 skilled men. It was impossible to make another 1,500 men available for the forces and at the same time bring under cultivation another 200,000 acres. (iii) The Minister of Labour and National Service asked the War Cabinet not to disturb the balance of the man­ power plan, which had been devised with great difficulty. Agriculture had retained more men under 25 than any other industry in proportion to its numbers. (iv) The Prime Minister thought that the 7,000 men ought to be called up. This was not a large contribution. But its withholding would expose the agricultural industry to reproach that it had held back its young men in the hour of their country's direst need. (v) Reference was made to the difficulties experienced in getting in the harvest owing to shortage of labour and to the fact that certain crops (e.g., sugar-beet) had not yet all been lifted. It was agreed that, subject to the exigencies of the military situation, the Army authori­ ties would have to give help on a big scale at harvest time. After further discussion, the War Cabinet— Agreed that the 7,000 men should be called up, without further deferment. Parliament. P o s i t i o n of M.P.'s under t h e National S e r v i c e A c t s . (Previous References: W . M . (39) 2 8 t h Conclusions, M i n u t e 12, a n d W . M . (40) 1 9 0 t h Conclusions,' ' M i n u t e 3.) , 5. The War Cabinet were informed that the position of Members of Parliament under the National Service Acts had been raised in the House of Commons that afternoon. The Minister of Labour and National Service said that he had informed the House that the position of M.P.'s under the National Service Bill (No. 2) was precisely the same as under the existing National Service Acts. He had been asked to give a firm under­ taking that he would not use his powers to give directions to M.P.'s. He had replied that he thought the matter should be dealt with independently of this Bill (which did not change the position in this matter) and should be raised with the Prime Minister. Two new Clauses dealing with this matter had been put down and would probably be discussed when consideration of the Bill was resumed in the House on the following day. The Prime Minister referred to the decisions on this matter which had been reached in the last war and at the beginning of the present war, and which had been reaffirmed rather more than a year 217 W.M. 126 (41)'. ago. The principle governing the practice in this matter should, he thought, be that M.P.'s were liable under the National Service Acts and that it would be undesirable to confer statutory exemp­ tion. But every M.P., besides his duties as a citizen, owed service to the Legislature It must be left to each Member to settle whether he would devote himself wholly to service as a Member of the Legislature, or whether he would undertake some other form of National Service. Furthermore, if an M.P. decided that he would take service in the Armed Forces of the Crown, he should be allowed, if he so desired, at a later date to change his option and to be released from further military service, provided, of course, that reasonable notice was given. The War C a b i n e t Expressed general agreement with these views, and took note that the Prime Minister would deal with the matter on the following day, in answer to a Private Notice Question. * Iceland. (Previous Eef erence: W . M . (41) 1 2 5 t h Conclusions, M i n u t e 2.) 6. The War Cabinet were informed that a telegram had now been received from our High Commissioner in Dublin stating that Mr. de Valera invited the Secretary of State for Dominion Affairs to pay a visit to Dublin. The visit should be attended with,as little publicity as possible. , The Secretary of State for Dominion, Affairs said that from the terms of the telegram it appeared that what Mr. de Valera had to tell him was not of some change in Eire's attitude, but rather the reasons why he did not see his way to make any change at the present time. The War C a b i n e t Thought that it was nevertheless desirable that the Dominions Secretary should accept this invitation, and authorised him to proceed accordingly. 7. The War Cabinet had before them a Memorandum by the Wages and Cost of Living. Lord President of the Council (W.P. (G) (41) 149). This Memorandum explained that the policy of price stabili­ sation set out in the White Paper (Cmd. 2694) had hitherto been maintained. But, besides the award! made by the Agricultural Wages Board of a national minimum wage of 60s. a week to agricultural workers, claims for substantial wage increases by the engineers and shipbuilders were now being heard by the National Arbitration Tribunal. Negotiations were also proceeding on a claim by the railwaymen. If these claims resulted in substantial increases in wage rates over a wide field, the policy of price stabilisation would be seriously jeopardised. Nevertheless, the Lord Presidents Committee had been satisfied that it would be difficult for the Government to make any new declaration of policy while applications to the Arbitration Tribunal were still sub judice. They thought, however, that it should be our aim to be ready with a new wages policy to arrest the inflationary process, and that this should be applied as soon as the present wage cycle had! been completed, and, in any event, before next year's Budget was introduced. In discussion, the view was expressed that there was no certainty that there would be any clear dividing line'between the end of one wage cycle and the beginning of another. It was essential that the position should be tackled! before the inflationary *' See Annex. tendency got out of control. No room should be left for growth of the feeling of discontent which already existed in the Forces at the high rates of pay of munition workers. The suggestion was made that the Government should at once state publicly that they proposed to announce a new wages policy as soon as the cases now being heard by the National Arbitration Tribunal had been disposed of. The view was, however, expressed that this step was premature until decisions had been reached as to the new policy to be adopted. Emphasis was also laid on the undesirability of taking action which would be interpreted as an attempt to interfere with the hearing of the claims now before the Tribunal. After further discussion, the War Cabinet—, Endorsed the Conclusions of the Lord Presidents Com­ mittee, on the understanding that proposals for dealing with the matter would be submitted to the War Cabinet as quickly as possible, with a view to a new statement of policy being announced as soon as the cases now before the Arbitration Tribunal had been disposed of. Great George Street, S.W. 1, December 10, 1941. ANNEX. House of Commons, December 11, 1941 (Hansard, Column 1696). National Service Acts. (Members of Parliament.) Sir P. Harris (by Private Notice) asked the Prime Minister whether he has any statement to make about the position of Members of Parliament under the National Service Acts ? The Prime Minister (Mr. Churchill): Yes, Sir. I am glad to take this opportunity of explaining the position of Members of Parliament under the National Service Acts. In the view of His Majesty's Government, it would not be appropriate to confer on Members of Parliament a statutory exemption from the obligations which they share in common with everyone else. Members of Parliament have, however, also the high duty of service in the Legislature, and they must them­ selves be the judges of how that duty can best be performed. They are therefore given a free choice by virtue of their position as Members of Parliament and not as a favour. This was the position in the last war, and has always been maintained in the present war. Furthermore, if a Member of Parliament joins the Armed Forces of the Crown, and later decides that he wishes to devote his whole time to Parliamentary duties, arrangements are made for his release from military service for that purpose, provided, of course, that reasonable notice is given to arrange for his relief. Considering the very large number of Members serving with the Forces, and the many questions that may arise in the combining and reconciling of their duties, it is very satisfactory that there has been so little difficulty in practice. MfffT SECRET - NO PECULATION. W,M, ( 4 1 ) Igftth CONCLUSIONS. (10th. December, 1 9 4 1 , 6 n.m.) * THE PRIME MINISTER s a i d t h a t h e had r e c e i v e d a r e p l y from P r e s i d e n t R o o s e v e l t about h i s p r o p o s e d v i s i t t o the United S t a t e s , suggesting that he s h o u l d go e a r l y i n January and s h o u l d meet him a t one o f t h e West I n d i a n i s l a n d s . M i n i s t e r ) was n o t s a t i s f i e d , He ( t h e Prime and t h o u g h t t h a t it was important t h a t t h e v i s i t s h o u l d t a k e p l a c e a t a much s o o n e r d a t e , a l t h o u g h i t was i m m a t e r i a l t o him where t h e v i s i t took p l a c e . in this He had s e n t a message sense. SIR EARLE PAGE s a i d t h a t , i f t h e v i s i t was p o s t p o n e d , i t might b e d e s i r a b l e t h a t t h e F i r s t Sea Lord s h o u l d go a t o n c e t o t h e U n i t e d S t a t e s i n o r d e r t o c o n c e r t an a g r e e d s t r a t e g i c p o l i c y w i t h t h e Americans . THE PRIME MINISTER p o i n t e d o u t t h a t Admiral L i t t l e , our Naval R e p r e s e n t a t i v e o n t h e J o i n t Staff M i s s i o n , was i n c l o s e t o u c h w i t h Admiral S t a r k . But i n any c a s e h e was h o p i n g t h a t h i s v i s i t would take p l a c e i n the near f u t u r e . COPY 1 0 Downing Street. 7th February, 1942. Dear Speed, The P r i m e M i n i s t e r h a s b e e n c o n s u l t e d a s t o w h e t h e r i t i s n e c e s s a r y Hiat a n y s t e p s s h o u l d b e t a k e n t o make known - e . g . b y Q u e s t i o n a n d A n s w e r i n t h e House ­ t h e r u l i n g w h i c h h e g a v e i n t h e c a s e o f a Member o f Parliament s e r v i n g i n the R.A,F.V.R., namely, that such a n O f f i c e r s h o u l d n o t b e p o s t e d a b r o a d i f , i n h i s own o p i n i o n , s e r v i c e o v e r s e a s would c o n f l i c t w i t h h i s duty to h i s constituents. The P r i m e M i n i s t e r ' s v i e w i s t h a t a Member's f i r s t d u t y i s t o t h e H o u s e o f Commons, and e v e n t h o u g h h e may h a v e e n t e r e d o n e o f t h e S e r v i c e s he may a p p l y f o r r e l i e f and when t h i s c a n b e c o n v e n i e n t l y e f f e c t e d h e c a n r e t u r n t o G r e a t B r i t a i n f o r h i s P a r l i a m e n t a r y work. He w o u l d n o t t h e r e b y b e d e b a r r e d f r o m t a k i n g up o t h e r work w i t h t h e F o r c e s , i f s u c h work w e r e t h o u g h t u s e f u l t o the p u b l i c . I t f o l l o w s f r o m t h i s t h a t i f a Member who h a s b e e n d o i n g u s e f u l w o r k w i t h t h e F o r c e s a t home and has combined t h i s work w i t h h i s P a r l i a m e n t a r y d u t i e s , b e l o n g s t o a u n i t w h i c h i s o r d e r e d a b r o a d , he s h o u l d b e a l l o w e d t o t r a n s f e r and n o t b e f o r c e d t o r e s i g n u n l e s s t h e r e i s no o t h e r u s e f u l w o r k t h a t he c o u l d do a t home. These c a s e s , however, should be r a r e , and i t ought t o be p o s s i b l e , i n the Prime M i n i s t e r ^ v i e w , to p r e v e n t them r e a c h i n g a p o i n t a t w h i c h any d i f f i c u l t y a r i s e s through a c o n f l i c t o f d u t i e s . He t h e r e f o r e d o e s n o t regard i t as n e c e s s a r y t h a t t h e r e should be any p u b l i c announcement o f the r u l i n g g i v e n i n t h i s p a r t i c u l a r case. The o n l y a c t i o n w h i c h i s b e i n g t a k e n i s t o s e n d c o p i e s o f t h i s n o t e t o the P r i v a t e S e c r e t a r i e s o f the three Service Ministers. Mr. C h u r c h i l l p r o p o s e s t h a t , i f t h e M i n i s t e r s h a v e no c o m m e n t s , t h e s c h e m e s h o u l d b e operated forthwith. C o u l d y o u p l e a s e l e t me know i f your S e c r e t a r y o f S t a t e agrees? E. B . B . S p e e d , E s q . , War O f f i c e . Similar l e t t e r s to:- R.H. M e l v i l l e , E s q . , Air Ministry, CS, Jarrett, Esq., ADMIRALTY. M. C. , Yours sincerely, (Sgd.) J.M. MARTIN.