(c) crown copyright
Catalogue Reference:CAB/65/25/20
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THIS DOCUMENT IS THE PROPERTY OF HIS BRITANNIC MAJESTY *S GOVERNMENT
for the War Cabinet.
Printed
February
1942.
SECRET.
Copy Wo.
W . M . (42)
20th Conclusions.
TO
B E
K E P T
U N D E R
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 t o
e n s u r e t h e secrecy of t h i s d o c u m e n t .
W A R C A B I N E T 20 (42).
CONCL USIONS
of a Meeting of the War Cabinet held in the Prime
Ministers
S.W. 1, on Thursday,
February
Room, House of Commons,
1 2 , 1 9 4 2 , at
1 2 NOON.
Present:
T h e 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 . ,
Lord P r i v y Seal.
Chair).
The R i g h t H o n . S i r JOHN ANDERSON,
M . P . , L o r d P r e s i d e n t of t h e C o u n c i l .
The R i g h t Hon. ANTHONY EDEN, M . P . ,
S e c r e t a r y of S t a t e for
Foreign
Affairs.
T h e R i g h t H o n . A . GREENWOOD, M . P . ,
The R i g h t H o n . 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 .
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.
Minister without Portfolio.
T h e f o l l o w i n g w e r e also p r e s e n t :
T h e R i g h t H o n . VISCOUNT SIMON, L o r d
Chancellor.
T h e R i g h t H o n . HERBERT 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 . L . S. A M E R Y , M . P . ,
T h e R i g h t H o n . A . V . ALEXANDER,
Vf.P., F i r s t L o r d of t h e A d m i r a l t y
(Item 1).
The
T h e R i g h t H o n . THOMAS JOHNSTON,
M . P . , S e c r e t a r y of S t a t e for S c o t l a n d
(Item 5).
T h e R i g h t H o n . R . S. H U D S O N , M . P . ,
T h e R i g h t H o n . L O R D WOOLTON,
M i n i s t e r o f F o o d (Item 5).
A i r Chief M a r s h a l Sir CHARLES F . A.
PORTAL, C h i e f of t h e A i r Staff
(Item 1 ) .
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 .
Hon.
Bt.,
Sir
M.P.,
ARCHIBALD
Secretary
of
S t a t e for A i r .
Minister
of
F i s h e r i e s (Item
Sir EDWARD BRIDGES,
[23463]
Right
SINCLAIR,
and
Agriculture
5).
Secretary.
B
and
W A R C A B I N E T 20 (42).
..,
CONTENTS.
Minute
No.
.1
Subject.
Naval, Military and Air Operations
" ;:' .
2
....
Page.
. . . . . . . . 1Q3
The F a r E a s t .
Naval Situation.
: The Far East
h
3
....
103
The F a r E a s t War Council,
Command in t h e A.B.D.A. area.
, China.
F r a n c e ....
....
103
Relations with the Vichy Government.
4
Consideration under Lease-Lend
....
....
....
....
104
5
Agricultural Prices
....
....
....
....
104
6
India
....
....
Constitutional Questions.
....
105
Naval, Military
and Air
Operations.
1. The Prime Minister
read t o the W a r Cabinet a telegram
f r o m G e n e r a l W a v e l l , of t h e 11th F e b r u a r y (0820Z), r e p o r t i n g t h e
position in Singapore.
(Previous
Reference:
W.M. (42) 19th
Conclusions,
Minute 1.)
The F a r East.
Naval Situation.
I n t h e course of t h e M e e t i n g t h e W a r C a b i n e t w a s i n f o r m e d by
the First Lord of the Admiralty,
a n d l a t e r by the Chief of the Air
Staff, t h a t t h e Scharnhorst
a n d Gneisenau
h a d left B r e s t a n d w e r e
s t e a m i n g u p - C h a n n e l , s u r r o u n d e d by a n u m b e r of vessels believed t o
be E - B o a t s a n d d e s t r o y e r s .
- T h e W a r C a b i n e t w e r e i n f o r m e d in o u t l i n e of t h e p l a n s m a d e
f o r a i r a t t a c k s on t h e e n e m y s h i p s .
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 .
The Far East.
The F a r E a s t
War Council.
2. The Prime Minister
s a i d t h a t the q u e s t i o n h a d been r a i s e d
w h e t h e r C h i n a s h o u l d h a v e a r e p r e s e n t a t i v e ori t h e P a c i f i c W a r
C o u n c i l , w h i c h h a d n o w been e s t a b l i s h e d i n L o n d o n a n d h a d h e l d
i t s first m e e t i n g on T u e s d a y , t h e 10th F e b r u a r y . H e h a d h o w h e a r d
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 s a w n o objection t o t h i s course.
H e p r o p o s e d to s e n d a t e l e g r a m to G e n e r a l C h i a n g K a i - s h e k s a y i n g
t h a t we hoped t h a t the Generalissimo would appoint a representa­
t i v e of C h i n a to s i t on t h e Council.
T h e W a r C a b i n e t took note, w i t h a p p r o v a l , of t h i s course.
Command in
the A.B.D.A.
Area.
The Prime Minister
said t h a t the P r e s i d e n t h a d asked whether,
i n v i e w of t h e possibly u n f a v o u r a b l e effect on t h e U n i t e d S t a t e s
p u b l i c of a n a n n o u n c e m e n t t h a t t h e N a v a l C o m m a n d w a s p a s s i n g
f r o m t h e U n i t e d S t a t e s t o t h e D u t c h , t h e p u b l i c a n n o u n c e m e n t of
t h e a p p o i n t m e n t of A i r M a r s h a l P e i r s e a s C o m m a n d e r , of t h e
c o m b i n e d A . B . D . A . A i r F o r c e could b e postponed.
The W a r C a b i n e t A g r e e d t h a t , in all t h e c i r c u m s t a n c e s , a n a n n o u n c e m e n t of
t h i s a p p o i n t m e n t should be p o s t p o n e d for t h e p r e s e n t .
China.
The Prime Minister
s a i d t h a t he h a d received a t e l e g r a m from
F i e l d - M a r s h a l D i l l e n c l o s i n g t h e d r a f t of a message of e n c o u r a g e ­
m e n t w h i c h i t w a s s u g g e s t e d t h a t he (the P r i m e M i n i s t e r ) s h o u l d
s e n d to G e n e r a l C h i a n g K a i - s h e k .
The W a r C a b i n e t '
D e c i d e d t h a t t h e p r e s e n t t i m e w a s n o t p r o p i t i o u s for a
message of t h i s k i n d , a n d t h a t i t s t e r m s w e r e n o t a l t o g e t h e r
a p p r o p r i a t e a n d w o u l d r e q u i r e r e d r a f t i n g before i t w a s
despatched.
France.
Relations with
t h e Vichy
Government.
(Previous
Reference:
W.M. (42) 3rd
Conclusions,
Minute 2 ) .
3 . The Prime Minister
informed the W a r Cabinet t h a t h e h a d
received a p e r s o n a ! t e l e g r a m from t h e P r e s i d e n t of t h e U n i t e d
S t a t e s i n f o r m i n g h i m of i n s t r u c t i o n s s e n t to t h e U n i t e d S t a t e s
r e p r e s e n t a t i v e a t V i c h y t o m a k e the s t r o n g e s t r e p r e s e n t a t i o n s t o
M a r s h a l P e t a i n i n r e g a r d t o t h e fact t h a t food s u p p l i e s a n d t r u c k s
h a d been s h i p p e d f r o m F r a n c e i n F r e n c h vessels t o T u n i s f o r t h e u s e
of A x i s forces i n N o r t h A f r i c a .
The Secretary
of State for Foreign Affairs s a i d t h a t h e h o p e d
t h a t i t m i g h t be possible for t h e W a r C a b i n e t on M o n d a y t o c o n s i d e r
w h a t a c t i o n t h e A d m i r a l t y should take, n o w t h a t F r e n c h s h i p s w e r e
[23463]
B 2
being used t o provide t r a n s p o r t a n d supplies to T u n i s for delivery
t o t h e e n e m y forces i n L i b y a . I n t h e m e a n t i m e , h e s u g g e s t e d t h a t
t h e M i n i s t e r of I n f o r m a t i o n s h o u l d be a s k e d t o g i v e g u i d a n c e t o t h e
P r e s s i n t h e sense t h a t i t w a s u n d e s i r a b l e t o g i v e g r e a t p r o m i n e n c e
t o t h i s m a t t e r a t t h e p r e s e n t t i m e . T o do s o m i g h t involve u s i n
difficulties u n l e s s w e were, in fact, able t o t a k e effective a c t i o n t o
p u t a s t o p t o t h i s traffic.
The W a r Cabinet agreed w i t h this suggestion.
Consideration
under LeaseLend.
4. The Prime Minister
read to the W a r Cabinet a Personal
D e s p a t c h w h i c h he h a d received f r o m t h e P r e s i d e n t of t h e U n i t e d
S t a t e s i n r e g a r d t o A r t i c l e 7 of t h e I n t e r i m L e a s e - L e n d A g r e e m e n t .
(Previous
T h e P r e s i d e n t s d e s p a t c h s h o w e d a full a p p r e c i a t i o n of t h e o b j e c ­
Reference:
t i o n s w h i c h w e h a d felt t o s i g n i n g t h e p r o p o s e d A g r e e m e n t . I n h i s
W.M. (42) 17th view, A r t i c l e 7 c o n t a i n e d n o c o m m i t m e n t i n a d v a n c e t o a b o l i s h
Conclusions,
E m p i r e P r e f e r e n c e , w h i c h s h o u l d be e x c l u d e d f r o m o u r d i s c u s s i o n s .
Minute 4.)
A n e x c h a n g e of n o t e s w o u l d , however, seem v e r y c a u t i o u s .
He
h o p e d w e w o u l d see our w a y t o s i g n t h e A g r e e m e n t w i t h o u t a n
e x c h a n g e of N o t e s on t h e a s s u r a n c e s n o w g i v e n .
The W a r C a b i n e t E x p r e s s e d s a t i s f a c t i o n a t t h e t e r m s of t h i s d o c u m e n t , b u t
d e f e r r e d a final d e c i s i o n u n t i l t h e M i n i s t e r s concerned h a d
h a d t i m e t o give f u r t h e r c o n s i d e r a t i o n t o t h e , m a t t e r .
NOTE.—Subsequent to the Meeting, a n d after consultation
w i t h t h e M i n i s t e r s concerned, t h e P r i m e M i n i s t e r s e n t a t e l e g r a m
t o P r e s i d e n t Roosevelt, i n w h i c h h e a n n o u n c e d t h a t , subject, t o t h e
consent of t h e D o m i n i o n s , we w o u l d s i g n t h e p r o p o s e d A g r e e m e n t ,
w i t h o u t a f o r m a l i n t e r c h a n g e of l e t t e r s . I f a s k e d , h e ( t h e P r i m e
M i n i s t e r ) w o u l d s t a t e h i s v i e w of t h e p u b l i c d o c u m e n t f r o m h i s o w n
s t a n d p o i n t , b u t w o u l d n o t q u o t e from t h e P r e s i d e n t s p e r s o n a l
despatch.­
Agricultural
Prices. .
-
5. T h e W a r C a b i n e t h a d b e f o r e t h e m a M i n u t e t o t h e P r i m e
M i n i s t e r f r o m t h e L o r d P r e s i d e n t of t h e C o u n c i l , t o w h i c h w a s
a p p e n d e d a S c h e d u l e of P r i c e I n c r e a s e s s h o w i n g t h e p r o p o s e d
(Previous
a l l o c a t i o n of t h e s u m of £ 2 0 m i l l i o n s , w h i c h t h e W a r C a b i n e t h a d
Reference:
W.M. (42) 15th d e c i d e d w a s t h e a m o u n t n e c e s s a r y t o fulfil t h e G o v e r n m e n t s p l e d g e
( W . P . (42) 7 5 ) .
Conclusions,
M i n u t e 3.)
The Lord President
of the Council e x p l a i n e d t h a t , i n h i s view,
t h e s c h e d u l e r e p r e s e n t e d t h e b e s t d i s t r i b u t i o n w h i c h could b e m a d e ,
if r e g a r d w a s p a i d both t o t h e i n t e r e s t s of a g r i c u l t u r a l policy a n d
t o t h e p r i o r i t i e s of food p r o d u c t i o n t o w h i c h t h e M i n i s t e r of F o o d
a t t a c h e d i m p o r t a n c e . H e g a v e e x p l a n a t i o n s , on t h e l i n e s s e t o u t i n
h i s M i n u t e , a b o u t t h e p r i c e s on w h i c h t h e r e h a d been some difference
of o p i n i o n , w i t h t h e r e a s o n s w h i c h h a d influenced h i m in r e a c h i n g
his conclusions.
The Minister
of Food s a i d t h a t , w h i l e h e a c c e p t e d t h e P r i c e
S c h e d u l e , h e w i s h e d it, t o be on r e c o r d t h a t he t h o u g h t h e w o u l d
h a v e t o ask f o r some f u r t h e r i n d u c e m e n t , i n o r d e r t o e n s u r e t h a t a
sufficient n u m b e r of e g g s w e r e s e n t t o p a c k i n g ' s t a t i o n s .
Failing
t h i s , h e f e a r e d t h a t h e w o u l d n o t be able t o e n s u r e a s a t i s f a c t o r y
d i s t r i b u t i o n of t h e a v a i l a b l e e g g s .
The Minister
of Agriculture
and. Fisheries a a i d t h a t , s u b j e c t to
t h e p o i n t s o n w h i c h t h e r e h a d been differences of o p i n i o n , a n d w h i c h
were set o u t in the L o r d P r e s i d e n t s Minute, he accepted.-the
d i s t r i b u t i o n a s the: b e s t w h i c h c o u M /be effected w i t h i n t h e l i m i t
:
,v;
105
W . M . 20 (412).
fixed b y t h e W a r C a b i n e t . H e w a s r e a d y t o p u t t h e schedule t o t h e
f a r m e r s ' representatives w i t h all the emphasis a t his command, as
r e p r e s e n t i n g t h e W a r C a b i n e t ' s decision a s t o w h a t c o n s t i t u t e d a
f a i r schedule of p r i c e i n c r e a s e s i n p r e s e n t c i r c u m s t a n c e s . H e w o u l d
d o a l l i n h i s p o w e r t o o b t a i n a c c e p t a n c e of t h e s e increases.
He
a s s u m e d , h o w e v e r , t h a t , if t h e f a r m e r s ' r e p r e s e n t a t i v e s p r o d u c e d
a n o v e r w h e l m i n g l y s t r o n g case on a n y p a r t i c u l a r item, he c o u l d
report their representations to the W a r Cabinet.
The Prime Minister
s a i d t h a t t h e G o v e r n m e n t m u s t , of course,
r e t a i n d i s c r e t i o n to c o n s i d e r a n y n e w facts b r o u g h t to t h e i r notice.
I t m u s t , however, be c l e a r l y u n d e r s t o o d t h a t n o t h i n g should be s a i d
w h i c h i m p l i e d t h a t t h e r e w a s a n y likelihood t h a t t h e G o v e r n m e n t
w o u l d be w i l l i n g t o c o n s i d e r a schedule of p r i c e increases w h i c h
involved a l a r g e r t o t a l s u m t h a n t h e a g g r e g a t e p r i c e increases
r e c o m m e n d e d by the L o r d P r e s i d e n t of t h e Council, n a m e l y ,
£20-314millions.*
The Chancellor
of the Exchequer
s a i d t h a t , from t h e p o i n t of
v i e w of t h e E x c h e q u e r , t h i s w a s m o s t i m p o r t a n t . T h e sum n o w i n
q u e s t i o n w a s c o n s i d e r a b l y l a r g e r t h a n h e t h o u g h t o u g h t t o be
a c c e p t e d , o n t h e m e r i t s of t h e case.
The Secretary
of State for Scotland s a i d t h a t he a c c e p t e d t h e ,
p r i c e schedule. H e h o p e d t h a t i t w o u l d b e possible to o b t a i n - a n
a g r e e d s e t t l e m e n t on t h i s b a s i s . T h e one p o i n t o n w h i c h he felt
u n e a s y w a s t h a t n o p r i c e i n c r e a s e w a s p r o p o s e d for eggs. So f a r
as m i x e d f a r m e r s were c o n c e r n e d , i t could b e a r g u e d t h a t they w e r e
o b t a i n i n g increases o n o t h e r c o m m o d i t i e s .
B u t it would be
difficult t o p e r s u a d e t h e e g g s p e c i a l i s t s t h a t t h e p l e d g e h a d been
fulfilled in t h e i r case if t h e r e w a s n o i n c r e a s e i n t h e p r i c e of e g g s .
7
The War C a b i n e t ­
(1) A p p r o v e d t h e S c h e d u l e of P r i c e I n c r e a s e s a p p e n d e d t o t h e
Lord President's Minute, and authorised the Ministers
i n c h a r g e of t h e A g r i c u l t u r a l D e p a r t m e n t s to m a k e t h e
necessary c o m m u n i c a t i o n s to t h e f a r m e r s ' r e p r e s e n t a ­
tives o n t h i s basis. ( I t w a s u n d e r s t o o d t h a t , in r e g a r d
t o milk, n o i m m e d i a t e a n n o u n c e m e n t w o u l d be m a d e ,
o w i n g to a possible c h a n g e i n t h e m e t h o d of p a y m e n t . )
(2) I n p u t t i n g t h e S c h e d u l e of P r i c e I n c r e a s e s to t h e f a r m e r s '
r e p r e s e n t a t i v e s , r e g a r d should be h a d t o t h e v a r i o u s
p o i n t s s u m m a r i s e d i n p a r a g r a p h 8 of the L o r d
P r e s i d e n t s M e m o r a n d u m ( W . P . (42) 41).
6. T h e W a r C a b i n e t g a v e p r e l i m i n a r y c o n s i d e r a t i o n to a d r a f t
t
e
l
e
g
r a m f r o m t h e S e c r e t a r y of S t a t e for I n d i a to t h e Viceroy a b o u t
Constitutional
t h e a l t e r n a t i v e d r a f t s t a t e m e n t w h i c h t h e S e c r e t a r y of S t a t e for
Questions.
I n d i a h a d been asked to p r e p a r e a t t h e M e e t i n g held on t h e
(Previous
5 t h F e b r u a r y . T h e o b j e c t of t h i s t e l e g r a m w a s t o a s c e r t a i n t h e
Reference:
,
, , v i e w s of t h e V i c e r o y on t h e g e n e r a l line of a p r o p o s e d s t a t e m e n t by
Conclusions,
Prime Minister.
Minute 3.)
CabinetA g r e e d t h a t , w h i l e t h e t e x t w o u l d r e q u i r e f u r t h e r con­
s i d e r a t i o n , a d r a f t t e l e g r a m on t h e lines proposed s h o u l d
be d e s p a t c h e d w i t h o u t f u r t h e r r e f e r e n c e t o t h e m .
India.
t
n
e
T
h
e
W
Great
a
r
George
February
Street, S.W.
IS, 1942.
1,
* This figure should read £20'323.millions, the p r i c e increase of 5s. per cwt.
of fat cattle a m o u n t i n g to £ 2 7 7 5 millions instead of £ 2 7 6 6 millions.
COPY
EMBASSY OP THE UNITED STATES
OF AMERICA.
SECRET.
12th February, 1942.
My dear Mr. C h u r c h i l l ,
I have the honour to transmit to you the
following despatch received from the President t h i s d a t e :
No. 105.
"For the Former Naval Person and
Winant from the President i n regard to the proposed
exchange of notes r e l a t i n g to a r t i c l e seven of the Interim
Lend-Lease Agreement, r e f e r r e d to i n your message No. 25,
I want to make i t p e r f e c t l y c l e a r to you t h a t i t i s the
f u r t h e s t thing from my mind that we are attempting i n any
way to ask you to t r a d e the p r i n c i p l e of imperial
preference as a consideration for Lend-Lease.
Further­
more, I understand something of the nice r e l a t i o n s h i p s
your Constitution requires of your Home Government in
dealing with the Dominions.
Obviously the Dominions
must not only be consulted but I assume you must have their!
approval on any affirmative changes i n e x i s t i n g arrangements;
which might be developed i n the broad discussions which
you and I both contemplate.
I t seems to me the proposed
note leaves a c l e a r implication t h a t Empire Preference and,
say, Agreements between ourselves and the P h i l i p p i n e s
are excluded before we s i t down at the t a b l e .
All I am
urging i s an understanding with you t h a t we are going to
have a bold, f o r t h r i g h t , and comprehensive discussion
looking forward to the construction of what you so a p t l y
c a l l *a f r e e , f e r t i l e economic p o l i c y for the post-war
world'.
I t seems p e r f e c t l y c l e a r to me t h a t nothing
should now be excluded from those discussions.
None of
us know how those discussions w i l l t u r n out, although, as
I t o l d you when you were here l a s t , I have great
confidence that we can organise a d i f f e r e n t kind of world
where men s h a l l r e a l l y be free economically as well as
politically.
The idea of attaching notes to t h i s interim
agreement would seem to ine to give an impression to our
enemies t h a t we were overly cautious.
I believe the
peoples not only of our two countries but the peoples
of a l l the world w i l l be heartened t o know t h a t we are
going to t r y together and with them for the organisation
of a democratic post-war world and gladly accept your
intimation t h a t we might get going a t once with our
economic discussion.
What seems to be bothering the
Cabinet i s the thought t h a t we want a commitment i n
advance t h a t Empire Preference w i l l be abolished.
We are
asking for no such commitment, and I can say t h a t a r t i c l e
seven does not contain any such commitment.
I realise
t h a t t h a t would be a commitment which your Government
could not give now i f i t wanted t o .
And I am very sure
that I could n o t , on my p a r t , make any commitment r e l a t i v e
to a v i t a l revision of our t a r i f f policy.
I am equally
sure that both of us are going to face i n t h i s r e a l i s t i c
world adjustments looking forward to your f r e e and
f e r t i l e economic policy for the post-war w o r l d , and
t h a t things which neither of us now dreams of w i l l be
subjects of the most serious consideration in the not too
distant future.
So nothing should be excluded from the
discussions.
Can we not, therefore, avoid the exchange
of notes which, as I have s a i d , seems to d i l u t e our
statement of^urpose with cautious r e s e r v a t i o n s , and sign
the agreement on the assurances which I here give i n
reference to the matter t h a t seems to be the stumbling
block.
I feel very strongly t h a t t h i s would demonstrate
?
1
to the world the unity of the American and B r i t i s h
people.
In regard to coming to a meeting of minds with
you a t an early date, I only need to say to you t h a t
there are very important considerations here which make
an e a r l y understanding d e s i r a b l e .
In saying t h i s , I
want again to t e l l you t h a t I am not uaomindful of your
problem.
We have t r i e d to approach the whole matter
of Lend-Lease i n a manner t h a t w i l l not lead us i n t o
the t e r r i b l e p i t f a l l s of the l a s t war."
Very r e s p e c t f u l l y yours,
CSgdo ) H. FREEMAN MATTHEWS.
t o the world the unity of the American and B r i t i s h
people.
I n regard to coming to a meeting of minds with
you a t an e a r l y date, I only need to say to you that
there are very important considerations here which make
an e a r l y understanding d e s i r a b l e .
I n saying t h i s , I
want again to t e l l you t h a t I am not uiomindful of your
problem.
We have t r i e d to approach the whole matter
of Lend-Lease i n a manner t h a t w i l l not lead us into
the t e r r i b l e p i t f a l l s of the l a s t war."
Very r e s p e c t f u l l y yours,
fSgd. ) H. FREEMAN MATTHEWS.