(c) crown copyright
Catalogue Reference:CAB/65/25/14
Image Reference:0001
THIS DOCUMENT IS THE PROPERTY OF HIS BRITANNIC MAJESTY'S GOVERNMENT
for the War Cabinet.
Printed
February
1942.
SECRET.
Copy N o .
W . M . (42)
1 4 t h Conclusions.
TO
B E
KEPT
UNDER
LOCK
A N D
KEY.
I t is r e q u e s t e d t h a t special c a r e m a y be t a k e n to
e n s u r e the secrecy of this d o c u m e n t .
W A R C A B I N E T 14 ( 4 2 ) .
CONCLUSIONS
of a Meeting of the War Cabinet held at 10 Downing
S.W. 1, on Monday, February 2, 1942, at 5 P.M.
Street,
Present :
The R i g h t H o n . W I N S T O N S . CHURCHILL, M . P . , P r i m e M i n i s t e r (in the
T h e R i g h t H o n . C. R. A T T L E E , M . P . ,
L o r d P r i v y Seal.
Chair).
The R i g h t H o n . Sir JOHN ANDERSON,
M . P . , L o r d P r e s i d e n t of t h e Council.
The R i g h t H o n . A N T H O N Y E D E N , M . P . ,
S e c r e t a r y of S t a t e for F o r e i g n
Affairs.
T h e R i g h t H o n . A . GREENWOOD, M . P . ,
T h e R i g h t H o n . L O R D BEAVERBROOK,
M i n i s t e r of S u p p l y .
The R i g h t Hon. Sir KINGSLEY WOOD,
M . P . , Chancellor of t h e E x c h e q u e r .
Minister without Portfolio.
The R i g h t Hon. ERNEST BEVIN, M.P.,
M i n i s t e r of L a b o u r a n d N a t i o n a l
Service.
T h e following w e r e also p r e s e n t :
T h e R i g h t H o n . Sir E A R L E P A G E ,
S p e c i a l E n v o y from t h e G o v e r n m e n t
of t h e C o m m o n w e a l t h of A u s t r a l i a .
The R i g h t H o n . H E R B E R T MORRISON,
M . P . , S e c r e t a r y of S t a t e for t h e
H o m e D e p a r t m e n t a n d M i n i s t e r of
H o m e Security.
T h e R i g h t H o n . V I S C O U N T CRANBORNE,
S e c r e t a r y of S t a t e for D o m i n i o n
Affairs.
T h e R i g h t H o n . L.
T h e R i g h t H o n . L O R D MOYNE, Secre-
S. A M E R Y , M . P . ,
S e c r e t a r y of S t a t e f o r I n d i a
S e c r e t a r y of S t a t e for B u r m a .
and
t a r y of S t a t e f o r t h e Colonies.
The R i g h t H o n . A . V . A L E X A N D E R ,
M . P . , F i r s t L o r d of t h e A d m i r a l t y .
Captain the Right Hon. H . D . MARGESSON, M . P . , S e c r e t a r y of S t a t e for
War.
The
T h e R i g h t H o n . S i r A N D R E W DUNCAN,
M . P . , P r e s i d e n t of t h e B o a r d of
T r a d e (Item 8).
Right
SINCLAIR,
Hon.
Bt.,
S t a t e for A i r .
[23425]
Sir
ARCHIBALD
M . P . , Secretary
of
The
Hon.
Sir
ALEXANDER
CADOGAN,
P e r m a n e n t U n d e r - S e c r e t a r y of S t a t e
for F o r e i g n Affairs.
A i r C h i e f M a r s h a l S i r CHARLES F . A .
Admiral
of
the Fleet
Sir
DUDLEY
P O U N D , F i r s t S e a L o r d a n d C h i e f of
N a v a l Staff.
G e n e r a l S i r A L A N BROOKE, C h i e f of t h e
I m p e r i a l G e n e r a l Staff.
PORTAL, C h i e f of t h e A i r Staff.
Secretariat.
S i r EDWARD BRIDGES.
M a j o r - G e n e r a l S i r HASTINGS ISMAY.
Mr. W . D . WILKINSON.
Mr. L. F. BURGIS.
W A R C A B I N E T 14 ( 4 2 ) .
CONTENTS.
M inute
No.
1
Subject.
Page
Naval, Military a n d Air Operations....
...
71
Air Operations.
Naval Operations:
Shipping losses.
Military Operations:
F a r East—Malaya.
Burma.
Netherlands E a s t Indies.
Pacific Islands.
Libya.
Russia.
2
Par East
....
72
Allied Co-ordination.
China.
3
China
73
Loans from United States and Great Britain.
4
Egypt
73
5
Air Policy
74
Occupied F r a n c e .
6
Man-Power
74
Beveridge Committee on Skilled Men in t h e Services.
tion of Second Report (Part IV
Publica­
7
E v a c u a t i o n of Civil Officials from T e r r i t o r y i n d a n g e r of
E n e m y Occupation
....
....
....
....
....
75
8
Consideration under Lease-Lend
75
....
....
....
....
Military
s.
(42) 11th
asions,
erations.
1. The Chiefs of Staff gave t h e following i n f o r m a t i o n i n
amplification of C a b i n e t W a r R o o m Records Nos. 877-883.
S u m m a r y o f A i r c r a f t Losses since t h e 2 6 t h J a n u a r y :—
I n the Home Theatre
we h a d lost 13 bombers in over
500 sorties.
I n the Middle East w e h a d lost 15 a i r c r a f t to 8 of t h e
enemy. Most of o u r losses h a d occurred as a result of low-flying
a t t a c k s on g r o u n d troops.
Malta h a d been subject to c o n s t a n t a t t a c k s , b u t they h a d
n o t been pressed home so s t r o n g l y recently.
I n the Far East we h a d lost 35 a i r c r a f t to 31 of t h e enemy
destroyed.
I n Burma 26 enemy a i r c r a f t h a d been destroyed to 5 of
our own.
T h e a t t a c k on the J a p a n e s e convoy in the Malacca S t r a i t s by
U n i t e d S t a t e s a n d D u t c h a i r forces h a d resulted in 5 t r a n s p o r t s
b e i n g sunk, 2 p r o b a b l y sunk a n d 10 d a m a g e d .
I n addition,
4 J a p a n e s e cruisers a n d 2 destroyers h a d been d a m a g e d by a i r
attack.
The Prime Minister
said t h a t h e h a d t e l e g r a p h e d to G e n e r a l
W a v e l l a s k i n g t h e reasons for t h e decision to remove a l a r g e propor­
t i o n of our a i r c r a f t from S i n g a p o r e I s l a n d to S u m a t r a . H e would
i n f o r m Sir E a r l e P a g e of the a n s w e r received.
The Chief of the Air Staff u n d e r t o o k to inform t h e H o m e
S e c r e t a r y arid t h e M i n i s t e r of H o m e Security, so t h a t he could w a r n
the N o r t h e r n I r e l a n d Government, should the A i r Staff a n t i c i p a t e
air attacks in strength in Northern Ireland.
T h e Chief of the A i r Staff said t h a t he w a s p r o p o s i n g t o
c i r c u l a t e a M e m o r a n d u m for t h e consideration of t h e Defence
C o m m i t t e e a s to t h e policy to be p u r s u e d in r e g a r d t o a i r a t t a c k s on
t h e G e r m a n w a r s h i p s a t Brest.
D u r i n g the p r e v i o u s week 36,000 tons of s h i p p i n g had been lost
by enemy action, a n d 12,000 by m a r i n e casualties. Belated r e p o r t s
Losses, m i g h t account for a n o t h e r 51,000 tons.
December s h i p p i n g losses, a f t e r i n c l u d i n g all doubtful cases,
a m o u n t e d t o 442,000 t o n s : 352,000 tons by enemy a c t i o n a n d
90,000 tons b y m a r i n e casualties.
A U - b o a t ha,d been s u n k off t h e A z o r e s a n d 39 p r i s o n e r s taken.
The Prime Minister
said t h a t , if the A d m i r a l t y could n o t
o b t a i n a s a t i s f a c t o r y answer from t h e U n i t e d S t a t e s N a v a l
A u t h o r i t i e s w i t h r e g a r d to the scheme for convoys i n the A t l a n t i c ,
t h e m a t t e r s h o u l d be r e p o r t e d t o him.
D u r i n g the n i g h t t h e 3 0 t h - 3 1 s t J a n u a r y our forces on the
m a i n l a n d of J o h o r e , w i t h c e r t a i n exceptions w h i c h h a d been cut
off. h a d w i t h d r a w n to S i n g a p o r e I s l a n d . D u r i n g t h e p r e v i o u s five
n i g h t s the N a v y h a d evacuated some 2,000 men from the west coast
of J o h o r e .
T h e g a r r i s o n of S i n g a p o r e a m o u n t e d to the e q u i v a l e n t of about
f o u r divisions. F o o d supplies, t h e w a t e r s u p p l y a n d a m m u n i t i o n
stocks were considered sufficient.
I n a n s w e r to a question by S i r E a r l e P a g e , the Prime
Minister
s a i d t h a t it w o u l d be for G e n e r a l W a v e l l to decide t h e d e s t i n a t i o n
of f u r t h e r r e i n f o r c e m e n t s now on t h e i r w a y to S i n g a p o r e .
O u r t r o o p s h a d evacuated M o u l m e i n a n d were now i n position
w e s t of t h e R i v e r Salween. F u r t h e r reinforcements h a d a r r i v e d in
B u r m a d u r i n g the p r e v i o u s week a n d n e g o t i a t i o n s were in p r o g r e s s
w i t h t h e Chinese w i t h a view to t h e i r t a k i n g over c e r t a i n a r e a s .
T h e J a p a n e s e w e r e e x p a n d i n g t h e i r hold in n o r t h - w e s t Borneo
a n d a t B a l i k p a p a n . L a n d i n g s h a d occurred on A m b o n .
[23425]
B
2
Pacific Islands.
Libya.
Russia.
R a b o u l h a d been occupied b y t h e J a p a n e s e . T h e r e w a s n o news
of o u r g a r r i s o n , w h i c h consisted of one A u s t r a l i a n b a t t a l i o n a n d a
few o t h e r t r o o p s .
T h e e n e m y a d v a n c e from A g e d a b i a h a d been in t w o columns,
one t o w a r d s M s u s a n d t h e o t h e r t o w a r d s B e n g h a z i . D u r i n g a heavy
t a n k e n g a g e m e n t between t h e G e r m a n s a n d ourselves, o u r 2nd
A r m o u r e d B r i g a d e h a d suffered c o n s i d e r a b l e losses. T h e I n d i a n
B r i g a d e a t B e n g h a z i h a d successfully f o u g h t its w a y b a c k t h r o u g h
t h e G e r m a n lines, w i t h the e x c e p t i o n of t h e s a p p e r s e n g a g e d
on d e m o l i t i o n s .
T h e W a r C a b i n e t h a d some discussion on t h e a r r a n g e m e n t s for
r e p a i r i n g a n d r e f i t t i n g o u r t a n k s , w h i c h a p p e a r e d to c o m p a r e
u n f a v o u r a b l y w i t h t h e e n e m y ' s o r g a n i s a t i o n i n t h i s respect.
T h e n e w s f r o m R u s s i a c o n t i n u e d t o be s a t i s f a c t o r y . I n the
L a k e I l m e n - L a k e Seliger sector t h e y h a d m a d e c o n s i d e r a b l e
advance, a n d i n t h e c e n t r a l sector t h e i r forces w e r e n o w n e a r to
V e l i z h , some 50 miles n o r t h - e a s t of Vitebsk. W e s t of V y a s m a the
R u s s i a n s h a d succeeded in p u s h i n g d e t a c h m e n t s a s t r i d e t h e m a i n
G e r m a n l i n e of w i t h d r a w a l to Smolensk. S o u t h - w e s t of M o s c o w t h e
R u s s i a n s h a d a d v a n c e d to w i t h i n 2 0 miles of V y a s m a .
On t h e D o n e t z f r o n t t h e R u s s i a n s c o n t i n u e d to m a k e excellent
p r o g r e s s a n d h a d p r o b a b l y r e a c h e d t h e n e i g h b o u r h o o d of P a v l o g r a d .
T h i s a d v a n c e w a s m o s t significant.
I n t h e C r i m e a t h e G e r m a n c l a i m t o h a v e r e c a p t u r e d Feodosia
h a d been confirmed.
T h e C h i e f of t h e I m p e r i a l G e n e r a l Staff w a s i n v i t e d t o c i r c u l a t e
t o t h e W a r C a b i n e t t h e recent r e p o r t s f r o m R u s s i a w h i c h h a d been
received f r o m G e n e r a l M a s o n M a c f a r l a n e .
T h e W a r C a b i n e t took n o t e of t h e above s t a t e m e n t s .
2. The Prime Minister s a i d t h a t he h a d n o w received a reply
f
r
o
m
t h e P r e s i d e n t a s to t h e a r r a n g e m e n t s for A l l i e d C o - o r d i n a t i o n
Allied
i
n
t
h
e
F a r East. The P r e s i d e n t proposed t h a t all political and
Co-ordination.
g
o
v
e
r
n
m
e n t a l m a t t e r s c o n c e r n i n g N e w Z e a l a n d , A u s t r a l i a a n d the
(Previous
N e t h e r l a n d s E a s t I n d i e s should c o n t i n u e to be h a n d l e d i n L o n d o n ;
Reference:
a n d t h a t m i l i t a r y m a t t e r s should be resolved i n W a s h i n g t o n .
If,
W.M. (42) 13th
however, all these c o u n t r i e s w e r e e a c h t o be r e p r e s e n t e d b y t h r e e men
Conclusions,
on the j o i n t staff c o n s i d e r i n g t h e A . B . D . A . p r o b l e m s , t h e result
Minute 2.)
w o u l d be a n u n w i e l d y body. H e t h e r e f o r e proposed t h a t t h e p r e s e n t
o r g a n i s a t i o n for t h e c o l l a b o r a t i o n of B r i t i s h a n d U n i t e d S t a t e s
staffs s h o u l d c o n t i n u e as a t p r e s e n t , b u t t h a t , w h e r e t h e D u t c h ,
A u s t r a l i a n s a n d N e w Z e a l a n d e r s w e r e concerned, t h e C o m b i n e d
Staffs should i n v i t e t h e i r p a r t i c i p a t i o n i n the d i s c u s s i o n of m a t t e r s
w h i c h involved t h e i r n a t i o n a l i n t e r e s t a n d c o l l a b o r a t i o n .
T h e P r i m e M i n i s t e r s a i d t h a t he h a d f o r w a r d e d t h i s c o m m u n i ­
c a t i o n to t h e P r i m e M i n i s t e r of A u s t r a l i a a n d h a d a s k e d w h e t h e r
t h e a r r a n g e m e n t p r o p o s e d by t h e P r e s i d e n t w a s s a t i s f a c t o r y t o h i m .
The Secretary
of State for Foreign Affairs
read a telegram
from the N e t h e r l a n d s Government to the U n i t e d States Government
s e t t i n g o u t t h e r e a s o n s which, in t h e i r view, m a d e t h e establishment
of a F a r E a s t e r n C o u n c i l i n L o n d o n , r a t h e r t h a n i n W a s h i n g t o n , a
m a t t e r of v i t a l i m p o r t a n c e t o t h e m .
I n discussion, t h e view w a s g e n e r a l l y e x p r e s s e d t h a t t h e estab­
l i s h m e n t of a F a r E a s t e r n C o u n c i l , i n L o n d o n w o u l d be f a r more
advantageous to the Netherlands, A u s t r a l i a n and New Zealand
G o v e r n m e n t s . T h e s u g g e s t i o n w a s m a d e t h a t , if a F a r E a s t e r n
C o u n c i l w e r e set u p i n L o n d o n , these t h r e e G o v e r n m e n t s m i g h t also
h a v e m i l i t a r y a t t a c h e s or r e p r e s e n t a t i v e s in W a s h i n g t o n , w h o m i g h t
be c o n s u l t e d w h e n F a r E a s t e r n m a t t e r s w e r e u n d e r d i s c u s s i o n there.
I t w o u l d , h o w e v e r , be of v i t a l i m p o r t a n c e t h a t t h e s e m i l i t a r y r e p r e ­
s e n t a t i v e s s h o u l d s p e a k w i t h t h e s a m e voice as t h e r e p r e s e n t a t i v e s of
t h e i r G o v e r n m e n t s i n L o n d o n . O t h e r w i s e confusion w o u l d ensue.
Far East.
T h e q u e s t i o n w a s r a i s e d w h e t h e r the C h i n e s e G o v e r n m e n t
w o u l d be i n v i t e d to t a k e p a r t i n t h e d e l i b e r a t i o n s of t h e F a r E a s t e r n
C o u n c i l i n L o n d o n , or, a l t e r n a t i v e l y , of t h e Pacific Council i n
Washington.
The Prime Minister
said t h a t the United States Government
w o u l d a l m o s t c e r t a i n l y w i s h t o see t h e Chinese a s p e c t of F a r E a s t e r n
co-ordination handled in Washington.
The W a r C a b i n e t ­
(1) I n v i t e d t h e S e c r e t a r y of S t a t e for F o r e i g n Affairs a n d the
S e c r e t a r y of S t a t e for D o m i n i o n Affairs t o a r r a n g e for
t h e t e x t of t h e t e l e g r a m from the N e t h e r l a n d s Govern­
m e n t t o t h e U n i t e d S t a t e s G o v e r n m e n t to be communi­
c a t e d to t h e G o v e r n m e n t s of A u s t r a l i a a n d N e w Z e a l a n d .
(2) Took n o t e t h a t S i r E a r l e P a g e w o u l d c o m m u n i c a t e t o h i s
Government the suggestion outlined at " X . "
China.
Loans from
United States
and
Great Britain.
(Previous
Reference:
W.M. (42) 13th
Conclusions,
Minute 1.)
3. The Chancellor
of the Exchequer
said t h a t t h e U n i t e d
S t a t e s G o v e r n m e n t h a d i n f o r m e d u s on t h e p r e v i o u s d a y t h a t t h e y
w e r e a p p r o a c h i n g Congress for a p p r o v a l for a loan u p to 500 million
d o l l a r s t o C h i n a , to be a d v a n c e d a t such t i m e or t i m e s a n d u p o n
such t e r m s a s w e r e deemed to b e in t h e i n t e r e s t s of the U . S . A . ; the
n e w s h a d n o w come i n t h a t i t h a d been decided i n W a s h i n g t o n to
p r e s e n t t h i s R e s o l u t i o n to C o n g r e s s a t once a n d t o m a k e a p u b l i c
a n n o u n c e m e n t on t h e p r o p o s a l . T h e Resolution w a s b e i n g published
t h a t day, a t a b o u t 7 P . M . B r i t i s h t i m e .
I t w a s u n c e r t a i n to w h a t e x t e n t t h e n e w A m e r i c a n loan would,
i n fact, be d r a w n u p o n . T h e U n i t e d S t a t e s G o v e r n m e n t w e r e
p r o d u c i n g t h e psychological effect w h i c h G e n e r a l C h i a n g K a i - s h e k
d e s i r e d w i t h o u t c o m m i t t i n g themselves to a n y specific a d v a n c e s .
I t seemed d e s i r a b l e t h a t H i s M a j e s t y ' s G o v e r n m e n t should t a k e
p a r a l l e l a c t i o n . O u r c o n t r i b u t i o n , w h i l e l a r g e e n o u g h to achieve t h e
d e s i r e d p o l i t i c a l effect, o u g h t n o t t o be e q u a l t o t h e U n i t e d S t a t e s
c o n t r i b u t i o n , in v i e w of t h e i r m u c h g r e a t e r financial resources.
T h i s i n d i c a t e d a loan of say, £50,000,000. W i t h i n t h i s l i m i t we
m i g h t a d v a n c e s t e r l i n g as a n d w h e n r e q u i r e d for w a r p u r p o s e s .
It
s h o u l d n o t c o n s t i t u t e a n u n c o n d i t i o n a l cash loan.
T h e C h a n c e l l o r suggested t h a t w e should issue a c o m m u n i q u e
t h a t n i g h t (i.e., s i m u l t a n e o u s l y w i t h t h e A m e r i c a n a n n o u n c e m e n t )
s a y i n g , first, t h a t w e w e r e offering t o m a k e available t o C h i n a u n d e r
a lend-lease a r r a n g e m e n t all t h e m u n i t i o n s a n d m i l i t a r y e q u i p m e n t
w h i c h i t w a s in o u r p o w e r to s u p p l y , a n d , secondly, t h a t we w e r e
offering to l e n d t o C h i n a a n a m o u n t u p t o £ 5 0 m i l l i o n s a t such t i m e s
a n d for such w a r p u r p o s e s a s m a y be a g r e e d u p o n between H i s
M a j e s t y ' s G o v e r n m e n t a n d the C h i n e s e G o v e r n m e n t .
The W a r C a b i n e t A p p r o v e d t h e issue t h a t e v e n i n g of a c o m m u n i q u e on t h e
lines p r o p o s e d by t h e C h a n c e l l o r of t h e E x c h e q u e r . T h e
F o r e i g n S e c r e t a r y w a s i n v i t e d to t e l e g r a p h a t the s a m e
t i m e to H i s M a j e s t y ' s A m b a s s a d o r a t
Chungking,
i n s t r u c t i n g h i m to convey t h i s offer t o G e n e r a l C h i a n g
Kai-shek. ;
4
The Foreign Secretary
said t h a t the W a r Cabinet would
Egypt.
(Previous
h a v e seen C a i r o t e l e g r a m s Nos. 4 4 1 , 4 4 2 a n d 443, w h i c h r e p o r t e d a
Reference:
p o l i t i c a l c r i s i s in E g y p t . T h e P r i m e M i n i s t e r , H u s s e i n S i r r y , w a s
WiM. (42) 10th obviously t i r e d of a s i t u a t i o n in w h i c h h e w a s exposed to c o n t i n u a l
pin-pricks from K i n g Farouk. H e was about to resign, and h a d
Conclusions,
a d v i s e d K i n g F a r o U k t o send for N a h a s .
Minute 6.)
B 3
[23425]
T h e Foreign Secretary said t h a t he h a d telegraphed t o Sir Miles
L a m p s o n ( F o r e i g n Office t e l e g r a m N o . 572 t o C a i r o ) r e c o m m e n d i n g
h i m t o establish d i r e c t c o m m u n i c a t i o n w i t h N a h a s , if possible before
H u s s e i n S i r r y ' s r e s i g n a t i o n w a s a n n o u n c e d , a n d t o m a k e i t clear
t h a t w e s h o u l d e x p e c t h i m , if h e took office, t o a d o p t a n a t t i t u d e
f a v o u r a b l e to t h e p r o s e c u t i o n of the w a r effort. W h i l e w e h a d no
i n t e n t i o n of d e p a r t i n g from t h e T r e a t y , every p o i n t w h i c h arose
w o u l d n o t be c a p a b l e of b e i n g m e a s u r e d b y t h e y a r d - s t i c k of t h e
T r e a t y signed s i x y e a r s previously. W e s h o u l d also expect N a h a s
to eliminate certain undesirable elements in K i n g F a r o u k ' s
household.
The Prime Minister e n q u i r e d w h e t h e r t h e a d v e n t of N a h a s to
p o w e r would m e a n a g e n e r a l election.
The Foreign Secretary
t h o u g h t t h a t N a h a s m i g h t not i n s i s t
u p o n a n election if, a s w e a n t i c i p a t e d , he w e r e f o r m i n g a p u r e l y
W a f d i s t Government.
The W a r C a b i n e t A p p r o v e d t h e F o r e i g n S e c r e t a r y ' s i n s t r u c t i o n s t o S i r Miles
L a m p s o n ( F o r e i g n Office t e l e g r a m t o C a i r o , N o . 572).
Air Policy.
Occupied
France.
(Previous
Reference:
W.M. (42) 3rd
Conclusions,
Minute 3.)
Man Power.
Beveridge
Committee on
Skilled Men in
the Services.
Publication of
Second Eeport
(Part I ) .
5. The War Cabinet a g a i n h a d u n d e r c o n s i d e r a t i o n a Memo­
r a n d u m by t h e S e c r e t a r y of S t a t e for A i r ( W . P . (41) 260) i n r e g a r d
t o t h e bombing of c e r t a i n f a c t o r i e s i n occupied F r a n c e w h i c h w e r e
m a k i n g m u n i t i o n s for t h e enemy.
The W a r C a b i n e t Confirmed t h e decision t h a t s t e p s s h o u l d n o w be t a k e n t o
bomb these f a c t o r i e s .
6.
T h e W a r C a b i n e t h a d before them—-
A M e m o r a n d u m by t h e M i n i s t e r of L a b o u r a n d N a t i o n a l
Service ( W . P . (42) 45) c i r c u l a t i n g P a r t I of t h e second r e p o r t
of the B e v e r i d g e C o m m i t t e e on S k i l l e d M e n i n t h e Services.
A M e m o r a n d u m by t h e S e c r e t a r y of S t a t e for W a r
r e p l y i n g to c e r t a i n c r i t i c i s m s of t h e A r m y ' s u s e o f i t s skilled
men, c o n t a i n e d i n t h e second r e p o r t ( W . P . (42) 44).
A N o t e b y t h e M i n i s t e r of L a b o u r a n d N a t i o n a l Service
c i r c u l a t i n g a f u r t h e r M e m o r a n d u m by S i r W i l l i a m B e v e r i d g e
( W . P . (42) 56).
The Secretary
of State for War s a i d t h a t h e h a d satisfied
himself t h a t the two documents attached to his M e m o r a n d u m were
s u i t a b l e for p u b l i c a t i o n , a n d c o n t a i n e d t h e a p p r o p r i a t e r e p l y to t h e
c r i t i c i s m s i n t h e r e p o r t of t h e B e v e r i d g e C o m m i t t e e .
H e d i d n o t consider h i m s e l f as p r e c l u d e d from c o m i n g f o r w a r d
l a t e r on, if c i r c u m s t a n c e s s h o u l d m a k e i t necessary, w i t h p r o p o s a l s
t h a t t h e A r m y s h o u l d r e c r u i t t h e r a n k s of i t s skilled personnel from
i n d u s t r y to a m u c h g r e a t e r e x t e n t t h a n t h e B e v e r i d g e C o m m i t t e e
recommended.
T h e S e c r e t a r y of S t a t e h o p e d t h a t i t w o u l d be u n n e c e s s a r y t o
h a v e t w o A r m y d e b a t e s i n t h e H o u s e of C o m m o n s i n close succession,
o n e o n the B e v e r i d g e r e p o r t a n d t h e second o n A r m y E s t i m a t e s . I f
t h e p u b l i c a t i o n of t h e r e p o r t could be h e l d u p u n t i l , say, t h e
.12th F e b r u a r y , i t w o u l d b e possible t o d e a l w i t h it w h e n A r m y
Estimates were taken on the 19th February.
*
The W a r C a b i n e t I n v i t e d t h e M i n i s t e r of L a b o u r a n d N a t i o n a l Service a n d
t h e S e c r e t a r y of S t a t e for W a r to a r r a n g e for t h e p u b l i c a ­
t i o n a s one document, a b o u t t h e 1 2 t h F e b r u a r y , of t h e
second r e p o r t of t h e B e v e r i d g e C o m m i t t e e t o g e t h e r w i t h
t h e W a r Office reply.
Evacuation of
Civilian Officials
from Territory
in Danger of
Enemy
Occupation.
7. T h e W a r C a b i n e t h a d before t h e m a J o i n t M e m o r a n d u m
by t h e S e c r e t a r y of S t a t e for B u r m a a n d t h e S e c r e t a r y of S t a t e for
t h e Colonies ( W . P . (42) 52). A t t a c h e d to t h e M e m o r a n d u m w a s a
d r a f t t e l e g r a m t o t h e G o v e r n o r of B u r m a . T h e d r a f t proposed t h a t ,
while, in g e n e r a l , E u r o p e a n officials should be w i t h d r a w n w h e n t h e
o c c u p a t i o n of t e r r i t o r y by t h e enemy w a s i m m i n e n t , a l i m i t e d
n u m b e r of officers on the a d m i n i s t r a t i v e staff should s t a n d fast.
T h i s course w a s p r o p o s e d on the g r o u n d t h a t , if all t h e E u r o p e a n
officers w e r e w i t h d r a w n , we s h o u l d suffer a g r e a t loss of p r e s t i g e .
I n discussion, i t w a s u r g e d t h a t , while t h e w i t h d r a w a l of these
officers w o u l d l e a d t o some loss of prestige, t h i s would necessarily
follow o u r w i t h d r a w a l in t h e face of s u p e r i o r enemy forces.
F u r t h e r , t h e officers left b e h i n d would almost c e r t a i n l y be t a k e n
p r i s o n e r a n d m i g h t well be subjected t o h u m i l i a t i n g t r e a t m e n t . N o
. useful p u r p o s e w o u l d , t h e r e f o r e , be served by t h e i r r e m a i n i n g
behind.
I t w a s p o i n t e d o u t t h a t t h e w i t h d r a w a l of all w h i t e officers
m i g h t lead to some difficulties w i t h the N a t i v e staff. T h i s , however,
m i g h t be overcome if t h e i n s t r u c t i o n s were so d r a f t e d a s to e n s u r e
t h a t all officers in p a r t i c u l a r g r a d e s , w h e t h e r E u r o p e a n or Native,
w e r e i n s t r u c t e d t o w i t h d r a w a n d no d i s c r i m i n a t i o n w a s m a d e on
g r o u n d s of colour.
T h e m a i n p u r p o r t of t h e t e l e g r a m to t h e G o v e r n o r of B u r m a
should, however, be t h a t all E u r o p e a n staff should be w i t h d r a w n ,
w h e n they h a d c a r r i e d out a l l t h e d u t i e s r e q u i r e d of them, before
enemy o c c u p a t i o n .
The W a r C a b i n e t I n v i t e d t h e S e c r e t a r y of S t a t e for B u r m a t o modify the
d r a f t t e l e g r a m in the above sense.
Consideration
under
Lease-Lend.
(
Reference:
l r e v i o u s
W.M. (42) 2nd
Conclusions,
Mmute l i . )
8. T h e W a r C a b i n e t h a d before t h e m t h e following
documents :—
^ M e m o r a n d a bv t h e M i n i s t e r w i t h o u t P o r t f o l i o , t h e Secre­
t a r y of S t a t e for I n d i a , t h e Chancellor of t h e E x c h e q u e r
fa
S e c r e t a r y of S t a t e for D o m i n i o n Affairs
( W . P . (42) 2 1 , 2 3 , 2 5 a n d 32).
(&) Messages from t h e U n i t e d S t a t e s D e p a r t m e n t of S t a t e ,
c i r c u l a t e d by d i r e c t i o n of the F o r e i g n
Secretary
( W . P . (42) 58).
(c) T e l e g r a m N o . 542 from o u r A m b a s s a d o r a t W a s h i n g t o n .
(d) T e l e g r a m N o . 89 from t h e H i g h Commissioner i n A u s t r a l i a ,
t o t h e effect t h a t t h e C o m m o n w e a l t h G o v e r n m e n t were
likely t o p r e s s for acquiescence in A r t i c l e V I I .
a
n
d
Discussion t u r n e d , n o t on t h e m e r i t s of t h e economic policy
embodied i n A r t i c l e V I I , b u t o n t h e m o r e l i m i t e d issue w h e t h e r w e
should sign a n A g r e e m e n t e m b o d y i n g A r t i c l e V I I a t t h i s j u n c t u r e .
T h e following w e r e t h e m a i n p o i n t s in favour of t h i s course :—
(1) The Foreign Secretary s a i d t h a t t h e C o n s t i t u t i o n a l p o s i t i o n
w a s t h a t t h e P r e s i d e n t could p u t h i s o w n i n t e r p r e t a t i o n
o n t h e L e a s e - L e n d A c t . If, however, w e d i d n o t r e a c h
(2)
(3)
(4)
(5)
a g r e e m e n t w i t h t h e P r e s i d e n t , w e m i g h t h a v e to have
n e g o t i a t i o n s w i t h Congress.
H e w i s h e d i t t o be on record t h a t he t h o u g h t t h a t , if w e d i d
not a c c e p t t h e t e r m s now offered, we m i g h t h a v e to a g r e e
t o m u c h less favourable t e r m s l a t e r on.
I f w e d i d n o t a g r e e to t h e revised d r a f t of A r t i c l e V I I now
p u t f o r w a r d , he f e a r e d a w o r s e n i n g of o u r r e l a t i o n s w i t h
the State Department.
E m p h a s i s w a s l a i d on t h e fact t h a t the A m e r i c a n
A m b a s s a d o r a n d L o r d H a l i f a x h a d consistently r e p r e ­
s e n t e d t o u s the i m p o r t a n c e of r e a c h i n g a g r e e m e n t on
this topic.
The Secretary
of State for Air expressed a g r e e m e n t w i t h
these views. H a v i n g r e g a r d t o t h e r e d u c t i o n i n o u r
f o r e i g n i n v e s t m e n t s a n d o t h e r adverse factors, a n d to the
p r o b a b i l i t y t h a t o u r b a l a n c e of p a y m e n t a f t e r t h e w a r
w o u l d be seriously adverse, he t h o u g h t i t w o u l d be
necessary t o ensure, by n e g o t i a t i o n w i t h t h e U n i t e d
S t a t e s , t h a t they would ease o u r difficulties by a really
s u b s t a n t i a l lowering of t h e i r tariffs a n d by other
m e a s u r e s if we a g r e e d t o abolish I m p e r i a l P r e f e r e n c e .
A t t h e s a m e time, it would be well w o r t h w h i l e to accept
t h e l a t e s t d r a f t of A r t i c l e V I I , if possible, w i t h suitable
i n t e r p r e t a t i o n s , i n o r d e r to solve t h i s difficult question
a n d to improve the p r o s p e c t s of p o s t - w a r economic
c o - o p e r a t i o n between G r e a t B r i t a i n a n d t h e U n i t e d
States.
(6) The Dominions
Secretary s a i d t h a t it should be on record
t h a t t h e p r e s e n t G o v e r n m e n t s in t h e D o m i n i o n s w e r e
p r e p a r e d t o accept t h e revised d r a f t of A r t i c l e V I I .
The Secretary of State for Air a t t a c h e d g r e a t i m p o r t a n c e
t o t h e D o m i n i o n s b e i n g consulted f o r t h w i t h .
T h e m a i n a r g u m e n t s a g a i n s t t h e s i g n a t u r e a t this j u n c t u r e of
a n A g r e e m e n t e m b o d y i n g A r t i c l e V I I w e r e as follows : —
(i) T h e r e w a s n o evidence t h a t o p i n i o n in t h e U n i t e d S t a t e s
w a s i n t e r e s t e d i n t h e subject, or t h a t Congress would
n o t acquiesce in w h a t e v e r line t h e P r e s i d e n t m i g h t t a k e
on t h i s subject.
(ii) T h e w h o l e position h a d been a l t e r e d by t h e fact t h a t
A m e r i c a w a s now i n t h e w a r . T h e d r a f t h a d , indeed,
been p r e p a r e d before A m e r i c a h a d come i n t o t h e w a r ,
a n d before the t w o c o u n t r i e s h a d a g r e e d t o pool t h e i r
resources.
(iii) W h i l e t h e r e w a s m u c h to be said in favour of t h e line of
policy o u t l i n e d in A r t i c l e V I I , t h e r e w a s n o i n h e r e n t
c o n n e c t i o n between t h i s policy a n d t h e benefits received
under the Lease-Lend Act.
(iv) I n a n y case, before w e e n t e r e d i n t o a c o m m i t m e n t t h a t we
w o u l d w o r k t o w a r d s " t h e e l i m i n a t i o n of a l l forms of
d i s c r i m i n a t o r y t r e a t m e n t i n i n t e r n a t i o n a l commerce a n d
the r e d u c t i o n of tariffs a n d o t h e r t r a d e b a r r i e r s , " we
o u g h t t o k n o w w h a t we should receive i n r e t u r n .
(v) O b j e c t i o n w a s seen, from t h e C o n s t i t u t i o n a l p o i n t of view,
to s i g n i n g a n A g r e e m e n t w h i c h w o u l d tie o u r h a n d s on
m a t t e r s w h i c h members of t h e B r i t i s h C o m m o n w e a l t h
s h o u l d settle a m o n g themselves. F u r t h e r , s i g n a t u r e a t
t h i s m o m e n t w o u l d be r e g a r d e d by c e r t a i n sections of
p u b l i c o p i n i o n as a n a t t e m p t to b r e a k u p t h e B r i t i s h
Empire.
I t seemed t h a t t h e p r o p e r course would be to d r a f t a r e p l y on
t h e lines t h a t w e were r e a d y t h a t conversations should be s t a r t e d ,
between t h e t w o G o v e r n m e n t s a t a n e a r l y d a t e on t h e issues of
economic r e l a t i o n s between o u r t w o countries, a n d t h a t we d i d not
exclude f r o m discussion a n y of the m a t t e r s f a l l i n g w i t h i n t h e scope
of A r t i c l e V I I . A t t h e same t i m e , w e felt t h a t i t would be i n a p p r o ­
p r i a t e t h a t we should sign a n A g r e e m e n t e m b o d y i n g a n A r t i c l e
d e a l i n g w i t h these m a t t e r s u n t i l s u c h discussions h a d t a k e n place.
The W a r Cabinet—
P o s t p o n e d decision o n t h e m a i n issue, a n d m e a n w h i l e
i n v i t e d t h e S e c r e t a r y of S t a t e for F o r e i g n Affairs a n d the
C h a n c e l l o r of t h e E x c h e q u e r t o p r e p a r e a d r a f t reply on
these lines, w h i c h should be s u b m i t t e d t o the W a r Cabinet
for a l t e r n a t i v e c o n s i d e r a t i o n a t a n e a r l y M e e t i n g .
Great
George Street, S.W.
February 2, 1942.
1,