(c) crown copyright Catalogue Reference:cab/66/10/47 Image Reference:0001 f (THIS DOCUJ-iENT I S THE PROPERTY OP H I S BRITANNIC M A J E S T Y S GOVERNMENT) P T O BE K E T U N D R R L O C K & KEY. \ / ^ 0 t J It is requested t h a t special care may he taken t a V ^ ensure the secrecy of this document. A S E 0. ­ WJ^XiQ.)316. - COPY NO. "7 WAR CABINET. PRIORITY FOR THE PRODUCTION OF TANKS. M e m o r a n d u m "by t h e . M i n i s t e r a s ^G^^d^rrxr^n^c^^^^ without Portfolio . lb At i t s 8 t h M e e t i n g on 2 5 t h J u l y , 1940,. t h e P r o d u c t i o n C o u n c i l h a d b e f o r e i t a n e x t r a c t f r o m t h e c o n c l u s i o n s of a M e e t i n g of t h e Defence Committee ( S u p p l y ) i n v i t i n g them "to c o n s i d e r the i n c l u s i o n i n P r i o r i t y . 1(a) of the manufacture o f t a n k s a n d t o r e p o r t t o t h e P r i m e M i n i s t e r t h e e f f e c t on a i r c r a f t p r o d u c t i o n of so doing"O I t was n o t e d t h a t the P r i m e M i n i s t e r a s M i n i s t e r of D e f e n c e had d e c i d e d t h a t i t was o f t h e g r e a t e s t s t r a t e g i c a l i m p o r t a n c e t o c a r r y o u t t h e new t a n k p r o g r a m m e a p p r o v e d b y t h e D e f e n c e C o m m i t t e e ( S u p p l y ) by t h e d a t e l a i d down,, 2o The C o u n c i l ^ t h e r e f o r e , a f t e r d i s c u s s i o n a g r e e d i n p r i n c i p l e t h a t t a n k s s h o u l d b e added to t h e a r t i c l e s specified i n paragraph 1(a) of the General P r i o r i t y D i r e c t i o n , b u t t h a t no a m e n d i n g d i r e c t i o n s h o u l d b e i s s u e d p e n d i n g a r e p o r t c o n c e r n i n g t h e e f f e c t o f t h e new p r o p o s a l on o t h e r S e r v i c e p r o g r a m m e SO 3o A t t h e 9 t h M e e t i n g o f t h e P r o d u c t i o n C o u n c i l on 5 t h A u g u s t C o l o n e l L l e w e l l i n r e p o r t e d t h a t t h e r e would be a c o n f l i c t ­ b e t w e e n t h e r e q u i r e m e n t s o f t a n k a n d a i r c r a f t p r o d u c t i o n in a l l o y s t e e l and d r o p f o r g i n g s ^ I t was r e p o r t e d - t h a t s t e p s w e r e b e i n g t a k e n t o i n c r e a s e t h e p r o d u c t i o n of d r o p f o r g i n g s . T h e C o u n c i l ( t h e f s p r e s e n t a t i v e o f t h e M i n i s t r y of A i r c r a f t P r o d u c t i o n d i s s e n o i n g ) a g r e e d t h a t t a n k s s h o u l d c o n t i n u e to be i n c l u d e d I n t h e 1 ( a ) P r i o r i t y L i s t , n o t e d t h a t a c t i o n h a d been t a k e n t o i m p r o v e t h e s u p p l i e s o f d r o p f o r g i n g s , a n d a s k e d me to f u r n i s h a n i n t e r i m r e p o r t t o t h e P r i m e M i n i s t e r on t h e m a t t e r , which I d i d 0 4. T h e M e m o r a n d u m ( W P ( 4 0 ) 3 1 3 ) "by t h e M i n i s t e r o f . A i r c r a f t P r o d u c t i o n on t h e q u e s t i o n o f P r i o r i t y f o r Tank P r o d u c t i o n i s n a t u r a l l y c o n c e r n e d , n o t s o much w i t h t h e m e r i t s of the case f o r p r o c e e d i n g e f f e c t i v e l y and e x p e d i t i o u s l y w i t h t h e p r o v i s i o n of a d e q u a t e s u p p l i e s of t a n k s f o r t h e Army, a s with securing the utmost advantage i n h i s struggle to obtain maximum p r o d u c t i o n o f a i r c r a f t a n d o t h e r e s s e n t i a l n e e d s of the Royal Air Force. No o n e c a n p o s s i b l y d i s s e n t f r o m h i s g e n e r a l o b j e c t i v e or f a i l t o r e c o g n i s e t h a t n o t h i n g s h o u l d s t a n d i n t h e way o f r e m e d y i n g t h e d e f i c i e n c i e s t o w h i c h , he r e f e r s . o 0 5o It is however impossible to conduct the war on the basis of unlimited priority for one type of production alone. If our resources were unlimited, the position would be different,, But they are not; and unless provision is made to ensure the maintenance of production of other urgent requirements, we shall be in grave danger of being unable to take advantage of the results of our great success in the air struggle, 6 The priority decisions now operating were taken during May when the main consideration was to concentrate on the short-term necessities of the new situation which had then arisen,, Even on that basis, it was not conceded that a blanket priority to the Air Programme would meet our needs; and. provision was made for an equal concentration of effort on anti-aircraft defence and on small arms and small arm ammunition. Further, it was recognised that special measures for the prompt replacement of the losses suffered by the Army in Flanders must be facilitated and that in making these efforts of first urgency the other vital needs of the eervicea should be safeguarded, 0 55 1 7c. The priority decisions which the Minister of Aircraft Production wishes to preserve were in fact carefully formulated and laid down to meet these requirements,. They were not, as his Memorandum implies, either in intention or in terms, a decision to sacrifice all other forma of war effort to the Air Programme. 8 They were moreover clearly taken as decisions to govern the direction of our efforts on a short term basis only. They did not preclude the possibility of revision or amendment and indeed, in the form in which they were put into application, definitely foreshadowed an early review. It was in the nature of such a review, that the Defence Committee (Supply) of the War Cabinet invited the Production Council to consider the extension to the Tank Programme of the priority now at issue. The importance of this programme has been held to justify, not priority over the immediate pressing needs of the Royal Air Force, but that it should proceed, side by side with the Programme, with the utmost expedition that our resources, properly pooled and administered, will permit. 0 A copy of the current Priority of Production Direction is annexed to this Memorandum: the relevant War Cabinet decision is contained in W . M ( 4 0 ) 116th Conclusions, Minute 1 o Q 9 % 1 & '£ 9* The situation in regard to the supply of t anks was fully disclosed to the Defence Committee (Supply) at the time when its decision was reached. Without the advantage which the Air Programme has had during the past three months, the Tank Programme presents many of the same type of problems as are referred to in the Minister's Memorandum. There are the same difficulties in regard to losses to be made good (a); the same demands to meet expansions; the same demands for overseas; and the same shortage of spares for necessary repairs and maintenance, There is, moreover, the same unfortunate conclusion that ' a failure to safeguard current production must lead to a curtailment of our strength in the field. 10. The conclusion, which was reached at the recent meeting of the Production Council (the representative of the Ministry of Aircraft Production alone dissenting) is that however imperative is the need for maximum production of aircraft, it is both necessary and practicable to secure that this should proceed on a basis which at least does not prevent other essential provision from proceeding at the same time. It is with this object in view that the Production Council accepted the new proposals for the general application of priorities by means of reversion to the system of orderly allocations of materials and capacity. By this system it is held that programmes, adequately adjusted in themselves according to the operative priority decisions of the day, may be permitted to proceed and not to be held up or stopped, as is rapidly becoming an imminent possibility, if the full claims in the Minister's Memorandum are conceded. 36 11. It is -understood that the Minister of Aircraft Production has himself taken steps to secure that the full advantage of the priority for aircraft production shall be severely restricted to services which are really vital. It is agreed that a similar severity should be applied in the use of other priorities. A 12, As regards his other criticisms of measures for which the Ministry of Supply is responsible, it is necessary to point out that it is only in recent weeks that any programme of requirements of drop stampings has been tabled in respect of the Air Programme. (Intd.) Richmond Terrace, Wh A.G. S.W.I. August, 1940, (a) The Tank casualties in Flanders were 100$. H ; Production Council 9th Meeting, Minute 3. rr*5r* PRIORITY OF PRODUCTION, In exercise o f the powers conferred on him b y Regulation 55 of the Defence (General) Regulations, 1 9 3 9 , the Minister of Supply hereby directs as follows:­ la-(a) Y o u shall give first priority to any work on which you are o r may be required to he engaged of or in connection with producing articles of any of the following descriptions;Fighter,, Bomber or Trainer aircraft,, Instruments o r . e q u i p m e n t for such aircraft. Anti-aircraft equipment (especially Bofors guns and instruments and ammunition therefor),, Small arms and small arm ammunition,. Bombs, Component parts o f any of the above-mentioned articleso (b) Subject to (a) above you shall give priority to any work on which you. are or may he required to be engaged of o r in connection with producing articles of any of the following descriptions:­ Anti-tank weaponso Field Artillery Tanks Machine Guns, Arnmuni tion ( inc luding mine s) Component parts o f any of the above-mentioned articless c 0 2 - I n giving effect to the requirements of paragraph of this Direction-. 0 (i) Any work of o r in connection with producing articles which can he completed by the 1st September, 194-0, or in respect of Admiralty requirements b y the 1st May, 19^1? and are required for the vital needs of any of the three Fighting services (or the Merchant N a v y ) , whether the main contract for the performance of which such work is required shall have been placed hy or on behalf "of a Service Department or by or on behalf of a Civil Department, and (ii) Any work certified by the Central Priority Department as being vital work shall not be interfered with except as a last resort, and any such interference which is found to he necessary shall be immediately reported to the Ministry by or for whom the work is required, o r to a representative of such Ministry, and in any case the work referred to in this paragraph shall be given priority over all other work except such as is mentioned in paragraph 1. 1 3. This Direction is issued "by the Minister of Supply on behalf of his Ministry, and of the Admiralty, the War Office, the Air Ministry and the Ministry of Aircraft Production^ - k* If you have any difficulty in obtaining any labour or material required for any work to which priority is to he given under paragraph 1 or paragraph 2 of this Direction, you shall (i) in the case of shortage of labour so inform the local representative of the Ministry of Labour and National Service, or (ii) in the case of shortage of material so inform the Government Department by or for whom the work is required^ or a representative of such Government Department a 5o This Direction supersedes and cancels the Direction given by order of the Minister of Supply, dated 3 1 s t May, 1 9 4 0 , and headed PRIORITY OP PRODUCTION. By order of the Minister of Supply 0 Secretary of the Ministry of Supply Ministry of Supply, Adelphi, John Adam Street, London, V. .C 2o f 0 June, 1 9 h O o a