(c) crown copyright Catalogue Reference:CAB/65/19/1 Image Reference:0001 "£HIS DOCUMENT IB T H E PROPERTY OF H I S BRITANNIC MAJESTY'S GOVERNMENT Printed for the War Cabinet. July 1941. SECRET. Copy N o . W . M . (41) 65th Conclusions. TO B E K E P T UNDER LOCK AND KEY. I t is r e q u e s t e d t h a t special care, 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 65 (41). CONCLUSIONS of a Meeting of the War Cabinet held at 10 Downing S.W. 1, on Friday, July 4, 1941, at 1 0 A.M. Present: 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 (in the Street, Chair). The Right Hon. Sir JOHN ANDEESON, M . P . , L o r d P r e s i d e n t of t h e Council. The Right Hon. ANTHONY EDEN, 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 . , Minister without Portfolio. 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 Right Hon. Sir KINGSLEY WOOD, M . P . , 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 following w e r e also p r e s e n t : The Right Hon. P. FRASER, M.P., P r i m e M i n i s t e r of N e w Z e a l a n d . T h e R i g h t Hon. LORD MOYNE, Secre- t a r y of S t a t e for t h e Colonies. The Right SINCLAIR, Hon. Bt., Sir M.P., ARCHIBALD Secretary The R i g h t H o n . A . V. ALEXANDER, M . P . , F i r s t L o r d of t h e A d m i r a l t y . T h e R i g h t H o n . A . D U F F COOPER, M . P . , M i n i s t e r of I n f o r m a t i o n . of State for A i r . The Right Minister (Item 3). Hon. H U G H of DALTON, Economic M.P., The Warfare 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 d m i r a l - of t h e F l e e t S i r D U D L E Y G e n e r a l S i r J O H N D I L L , Chief of P O U N D , F i r s t S e a L o r d a n d Chief of I m p e r i a l G e n e r a l Staff. N a v a l Staff. A i r Chief M a r s h a l S i r CHARLES F . A . P O R T A L , C h i e f of t h e A i r Staff. Secretariat. Sir EDWARD BRIDGES. Major-General Sir HASTINGS ISMAY. Mr. W. D . WILKINSON. M r . L. F. B U R G I S . [22686] the 44 W A R C A B I N E T 65 (41). " O. CONTENTS. Minute No. Subject. 1. T h e Foreign and Military Situations Air Operations. Naval Operations: Shipping losses. Military Operations: Syria Libya. U.S.S.R. 2. F o r e i g n Affairs 3. U.S.S.R Denial of oil to the enemy. 4. H o m e Defence Preparedness against Invasion. 5. Production .... Arrangements for forthcoming debate. .... Page 117 .... .... 117 117 .... .... 118 118 117 The Foreign and Military Situations. (Previous Bef erence: W.M. (41) 64th Conclusions, Minute 1.) W . M . 65 ( 4 1 ) . 1. The Chiefs of Staff gave t h e f o l l o w i n g i n f o r m a t i o n a m p l i f i c a t i o n of C a b i n e t W a r R o o m R e c o r d s Nos. 6 6 7 - 6 6 9 :— S u m m a r y of a i r c r a f t losses since t h e 3 0 t h J u n e : — Home Air Operations. in Theatre— Enemy— 42 destroyed. 16 p r o b a b l e . 23 damaged. Our Own— 16 F i g h t e r s . 27 B o m b e r s . 4 Coastal Command. Overseas Theatres— Enemy— 32 d e s t r o y e d (20 on t h e g r o u n d ) . 8 probable. 22 d a m a g e d . Our Own— 6 destroyed. Naval Operations. D u r i n g t h e l a s t t w o d a y s we h a d m a d e successful r a i d s on s h i p p i n g a t T r i p o l i , d u r i n g w h i c h five enemy vessels h a d been h i t . D u r i n g the l a s t t h r e e d a y s one s h i p of a b o u t 1,200 tons h a d been s u n k by a i r c r a f t a n d a b o u t 17,000 t o n s of s h i p p i n g h a d been Shipping Losses, damaged. Military Operations. Syria. P r o g r e s s c o n t i n u e d t o be slow. A t e l e g r a m h a d been sent to t h e C o m m a n d e r - i n - C h i e f , M i d d l e E a s t , u r g i n g t h e i m p o r t a n c e of a q u i c k decision, T h e r e were i n d i c a t i o n s t h a t f u r t h e r r e i n f o r c e m e n t s h a d r e a c h e d t h e enemy, b u t it w a s believed t h a t t h e s e consisted of I t a l i a n t r o o p s only. So f a r , we h a d p r a c t i c a l l y no i n f o r m a t i o n beyond w h a t h a d been p u b l i s h e d i n t h e c o m m u n i q u e s . T h e R u s s i a n s d i d n o t seem to h a v e lost confidence, a n d t h e i r l a t e s t t y p e of fighter h a d been d o i n g well. S i x t e e n G e r m a n a r m o u r e d divisions h a d so f a r been used a g a i n s t t h e R u s s i a n s . T h e m a i n G e r m a n t h r u s t w a s still a s t r i d e the M i n s k - S m o l e n s k R a i l w a y t o w a r d s Moscow. Libya. II.S.S.E. T h e W a r C a b i n e t took note Of these s t a t e m e n t s . Foreign Affairs. (Previous Reference':. W.M. (41) 64th Conclusions, Minute 5.) (Previous Reference: W.M. (41) 63rd Conclusions, Minute 2.) 2. The Foreign Secretary gave t h e f o l l o w i n g i n f o r m a t i o n :— Turkey. T h e r e w a s r e a s o n to believe t h a t t h e T u r k i s h G o v e r n m e n t s t i l l i n t e n d e d to base t h e i r f o r e i g n policy on t h e A n g l o - T u r k i s h Agreement. Japan. T h e r e w a s n o r e l i a b l e i n d i c a t i o n of J a p a n ' s f u t u r e policy. U.S.S.R. 3 T h e W a r C a b i n e t h a d before t h e m a M e m o r a n d u m by t h e Denial of oil to M i n i s t e r of Economic W a r f a r e ( W . P . (41) 145) p r o p o s i n g t h a t the enemy S i r Stafford C r i p p s s h o u l d be a u t h o r i s e d t o d i s c u s s f o r t h w i t h w i t h t h e R u s s i a n s t h e best m e t h o d of d e n y i n g R u s s i a ' s oil r e s o u r c e s to t h e enemy a n d t o r e p o r t w h a t offer, i n h i s j u d g m e n t , should b e m a d e to the Soviet G o v e r n m e n t . The War Cabinet- W h i l e a g r e e i n g w i t h t h e i m p o r t a n c e of t h i s m a t t e r , decided t h a t i t would be p r e f e r a b l e first to i n v i t e Sir Stafford C r i p p s ' s v i e w s a s t o h o w t h i s m a t t e r should be h a n d l e d ; a n d i n v i t e d t h e F o r e i g n S e c r e t a r y , in consul­ t a t i o n w i t h t h e M i n i s t e r of Economic W a r f a r e , t o t e l e g r a p h t o S i r Stafford C r i p p s accordingly. / Home Defence. Preparedness against Invasion. 4. The Lord Privy Seal i n f o r m e d t h e W a r C a b i n e t t h a t t h e P r i m e M i n i s t e r h a d decided t h a t i n s t r u c t i o n s s h o u l d be i s s u e d that— A l l our defences w e r e to b e b r o u g h t to t h e v e r y s t a t e of a n t i - i n v a s i o n efficiency by t h e 1st September. m e a n t i m e , of course, no vigilance should be r e l a x e d . highest I n the I n s t r u c t i o n s h a d been issued i n t h i s sense by t h e C h i e f s of Staff to t h e i r Commanders-in-Chief, a n d t h e P r i m e M i n i s t e r a s k e d t h a t t h i s d i r e c t i o n s h o u l d also be b r o u g h t t o t h e notice of a l l C i v i l Departments. T h e L o r d P r i v y Seal a d d e d t h a t h e u n d e r s t o o d t h a t t h e P r i m e M i n i s t e r proposed t o issue a s u i t a b l e w a r n i n g to t h e p u b l i c b e f o r e long. The War C a b i n e t I n v i t e d all M i n i s t e r s to b r i n g t h i s i n s t r u c t i o n t o t h e n o t i c e of those concerned in t h e i r D e p a r t m e n t s . I n a short discussion i t w a s e x p l a i n e d t h a t t h i s d i r e c t i v e w a s n o t i n t e n d e d t o p r e v e n t t h e d e s p a t c h of a n y necessary r e i n f o r c e ­ m e n t s t o the M i d d l e E a s t . Production. Arrangements for forthcoming Debate. 5. The Lord Privy Seal s a i d t h a t i t w a s u n d e s i r a b l e t h a t t h i s D e b a t e (which w o u l d t a k e place o n t h e 2 n d a n d 3 r d s i t t i n g d a y s i n the following week) should e x t e n d over a very w i d e r a n g e of subjects. I t w a s p r o p o s e d t h a t i t should cover m a t t e r s a r i s i n g o n t h e V o t e s of t h e M i n i s t r y of S u p p l y a n d the 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 , a n d t h a t t h e t w o M i n i s t e r s should a r r a n g e o n w h i c h of t h e two d a y s t h e M i n i s t e r of A i r c r a f t P r o d u c t i o n a n d t h e P a r l i a m e n t a r y S e c r e t a r y of t h e M i n i s t r y of S u p p l y s h o u l d s p e a k . Q u e s t i o n s affecting m a n - p o w e r m i g h t well be r a i s e d , a n d a M i n i s t e r i a l r e p r e s e n t a t i v e of t h e M i n i s t r y of L a b o u r s h o u l d . a l s o b e available. The War C a b i n e t E x p r e s s e d g e n e r a l a g r e e m e n t w i t h these s u g g e s t i o n s . Great George Street, S. W. 1, July 4, 1941. 9 COPY. 4 (Cypher). S P E C I A L ARFAB AND WAR CABINET To: Prom DISTRIBUTION. SOVIET U N I O N . M I N I S T R Y OF ECONOMIC WARFARE No. 1 4 3 ARFAR MOSSY. 8th July, 1941. D. 2.20 p.m. To 9th MOSCOW. July, 1941. SECRET. So s o o n a s y o u c a n g i v e u s some i n d i c a t i o n o f a t t i t u d e of Soviet Government t o d e s t r u c t i o n of Caucasus o i l - f i e l d s in c a s e o f n e c e s s i t y i n o r d e r t o d e n y o i l t o t h e e n e m y , we a r e p r e p a r e d , i f you recommend i t , t o examine what o f f e r m i g h t h e made t o S o v i e t Government a s r e g a r d s o u r h e a r i n g p a r t of the losses e n t a i l e d . 2. You w i l l r e c o l l e c t d i s c u s s e d w i t h you i n London best to tackle the matter not by d e v i s i n g means of h e l p i n g consequent deficiencies both machinery destroyed. t h a t when t h i s s u b j e c t was i t was a g r e e d t h a t i t would be by o f f e r i n g a money payment b u t Soviet Government t o r e p l a c e i n home s u p p l i e s o f o i l a n d i n 3. We s h o u l d t h e r e f o r e b e g l a d a f t e r q u e s t i o n o f d e s t r u c t i o n of o i l - f i e l d s has been r a i s e d with S o v i e t Government t o l e a r n (a) what a r e i n your view t h e p r o s p e c t s of S o v i e t authorities taking effective action for the destruction of the o i l - f i e l d s ; (b) whether you t h i n k o f f e r on l i n e s i n d i c a t e d i n p a r a g r a p h 2 i s l i k e l y to be ( i ) n e c e s s a r y ( i i ) effective; ( c ) n a t u r e a n d s c o p e o f o f f e r w h i c h would h a v e t o be made i n order to produce necessary effect. 4. You s h o u l d n o t a t t h i s s t a g e make a n y p r o p o s a l s o n b e h a l f of His M a j e s t y ' s Government t o S o v i e t Government, b u t , i f i t i s c l e a r t h a t p r o s p e c t s of e f f e c t i v e s t e p s b e i n g t a k e n a r e i n f a c t d e p e n d e n t o n some s u c h i n d u c e m e n t , y o u m a y , i n order to o b t a i n s u f f i c i e n t i n d i c a t i o n s of Soviet views to enable you to p r o v i d e us with information r e q u e s t e d above, say t o S o v i e t a u t h o r i t i e s t h a t , w h i l e you c a n n o t say how m a t t e r would be viewed by H i s M a j e s t y ' s Government, y o u r a r e p r e p a r e d t o e n q u i r e w h e t h e r t h e r e i s any p r o s p e c t of t h e i r b e i n g r e a d y t o a s s i s t i n making good p a r t of the l o s s e s e n t a i l e d . ^Copies sent t o Lord Hankey, S i r E. Grigg, Captain M r . V i l l i e r s , Mr. N i c h o l s o n a n d Mr. F r a s e r a / Berkely,