(c) crown copyright
Catalogue Reference:CAB/23/75
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S EC
RET
copy N O .
C A B I N E T
9 (55)
M e e t i n g o f t h e Cabinet t o be h e l d a t
10 Downing S t r e e t , S . W . 1 , on
WEDNESDAY, 15th F e b r u a r y , 1953,
a t 11.0 a.m.
ADDITIONAL ITEM TO AGENDA.
The f o l l o w i n g paper should be added t o the
Agenda, and w i l l become Item
KENYA:
7:-
GOLD-MINING IN NATIVE RESERVES.
Memorandum by the S e c r e t a r y o f S t a t e
f o r the C o l o n i e s .
( C P . 31(53)
already c i r c u l a t e d )
The p r e s e n t Item 7 - PRIVATE MEMBERS' BILLS ­
now becomes I t e m 8.
(Signed) M.P.A.
S e c r e t a r y t o the
2 Whitehall Gardens, S.W.1.
14th F e b r u a r y ,
1935.
HANKEY,
Cabinet.
S E ORE
T.
COPY MO.
C A B I N E T
9 (35).
M e e t i n g o f the Cabinet t o be h e l d a t
10 Downing S t r e e t , S . W . 1 , on
WEDNESDAY, 15th F e b r u a r y , 1933,
a t 1 1 . 0 a.m.
AGENDA.
1. FOREIGN AFFAIRS.
-
(If
required).
2 . SITUATION IN INDIA.
(Reference
Cabinet 6 8 ( 3 2 ) , C o n c l u s i o n 1 6 ) .
Memorandum by the S e c r e t a r y of S t a t e f o r
( C P . 26(33)
already c i r c u l a t e d ) .
India.
3. NAVY ESTIMATES, 1955.
(Reference
Cabinet 1 ( 3 3 ) ,
Conclusion 8 ) .
Memorandum by the F i r s t Lord o f the A d m i r a l t y .
( C P . 25(33)
already c i r c u l a t e d ) .
4.
INTERNATIONAL CONVENTION ON HOURS OF WORK IN COAL MINES.
(Reference
Cabinet 1 2 ( 3 2 ) , C o n c l u s i o n 3 ) .
Memorandum by the P r e s i d e n t o f t h e Board
of Trade.
( C P . 27(33)
already c i r c u l a t e d ) .
5
*
UNEMPLOYMENT INSURANCE.
(Reference
Cabinet 3 ( 3 3 ) ,
Conclusion 1 ) .
Second R e p o r t of C a b i n e t Committee.
( C P . 22(33)
already c i r c u l a t e d ) .
6. POSITION OF CO-OPERATIVE SOCIETIES IN RELATION
TO THE INCOME TAX":
(Reference
Cabinet 2 2 ( 3 2 ) , C o n c l u s i o n 2 ) .
Note by t h e C h a n c e l l o r o f t h e Exchequer,
c o v e r i n g R e p o r t of Committee.
( C P . 19(33)
already c i r c u l a t e d ) .
7 . PRIVATE MEMBERSj B I L L S .
For F r i d a y , March 3 r d .
1.
Summary J u r i s d i c t i o n ( A p p e a l s ) B i l l .
( M r . Turton ( C o n s e r v a t i v e ) ) .
2 . Coal Mines (Minimum Wage) A c t (1912)
Amendment B i l l .
(Mr. David G r e n f e l l ( L a b o u r ) ) .
3 . P r o t e c t i o n o f Dogs B i l l .
( S i r R o b e r t Cower
(Conservative)).
( S i g n e d ) M . P . A . HAWKEY,
S e c r e t a r y t o the
2 Whitehall Gardens,
13th F e b r u a r y ,
S.W.1.
1933.
Cabinet.
S E C R E T .
COPY NO.
C A B I N E T
9 (53).
CONCLUSIONS o f a M e e t i n g o f the Cabinet h e l d
a t 10 Downing S t r e e t , S . W . 1 , on WEDNESDAY,
February 15th, 1953, a t 11.0 a.m.
PRESENT : The R i g h t Hon. J . Ramsay MacDonald, M . P . ,
Prime M i n i s t e r .
( I n the C h a i r ) .
The R i g h t Hon.
Stanley Baldwin, M.P.,
Lord P r e s i d e n t o f the C o u n c i l .
The R i g h t Hon.
N e v i l l e Chamberlain, M . P . ,
C h a n c e l l o r o f the E x c h e q u e r .
The- R i g h t Hon.
S i r John G i l m o u r , B t . , D . S . O . ,
M.P., Secretary of State f o r
Home A f f a i r s .
The R i g h t Hon.
The V i s c o u n t Sankey,
Lord C h a n c e l l o r .
The R i g h t Hon.
The V i s c o u n t H a i l s h a m ,
S e c r e t a r y of S t a t e f o r War.
G.B.E.,
The R i g h t Hon.
S i r John Simon, G . C . S . I . ,
K.C.V.O.,0.B.E.,K.C. ,M.P.,
S e c r e t a r y of S t a t e f o r
Foreign A f f a i r s .
The R i g h t Hon.
S i r Samuel H o a r e , B t . , G . B . E . ,
C.M.Go,M.P., S e c r e t a r y of
State for India.
The R i g h t Hon.
J . H . Thomas, M . P . , S e c r e t a r y
o f S t a t e f o r Dominion A f f a i r s .
The R i g h t Hon.
Sir P h i l i p C u n l i f f e - L i s t e r ,
G.B.E.,M.C.,M.P., Secretary
of S t a t e f o r t h e C o l o n i e s .
The Most Hon.
The Marquess of Londonderry,
K . G . . M . V . 0 . , S e c r e t a r y of
State f o r A i r .
The R i g h t Hon.
S i r Edward H i l t o n Young,
G.B.E.,D.S.O.,D.S.C.,M.P.,
M i n i s t e r of H e a l t h .
The R i g h t Hon.
W a l t e r Runeiman, M . P . ,
P r e s i d e n t o f the Board o f
Trade.
The R i g h t Hon.
Sir Bolton E y r e s - M o n s e l l ,
G . B . E . , M . P . , F i r s t Lord o f
the A d m i r a l t y .
The R i g h t Hon.
Lord I r w i n , K . G . , G . C . S . I . ,
G . C . I . E . , P r e s i d e n t o f the
Board o f E d u c a t i o n .
Major The R i g h t Hon.
Walter E l l i o t , M.C.,M.P.,
M i n i s t e r of A g r i c u l t u r e and
Fisheries.
The R i g h t Hon.
S i r Henry B e t t e r t o n , B t . ,
C . B . E . . M . P . , M i n i s t e r of
Labour.
Major The R i g h t Hon.
W. Orm s b y - G o r e , M . P . ,
F i r s t Commissioner of Works.
r
*
FOREIGN
AFFAIRS.
Manchuria
1. The S e c r e t a r y
of
State f o r
c a l l e d a t t e n t i o n t o the serious
Foreign
s i t u a t i o n t h a t was
d e v e l o p i n g i n t h e P r o v i n c e of J e h o l .
(Previous
Reference:
Cabinet 7
( 3 3 ) , Con­
clusion S.)
Affairs
There w a s ,
h o w e v e r , no c o n c r e t e change which n e c e s s i t a t e d h i s
asking f o r
any d e c i s i o n from t h e Cabinet .
-1­
8 . The Cabinet had b e f o r e
them a Memorandum, by
the
3
olitical
Situation
Secretary
of State f o r
India
n.
for
Previous
Reference:
Cabinet 68
( 3 2 ) , Con­
e l u s i o n 16 ,
i n r e g a r d t o the p o l i t i c a l
(.C.P.-26 ( 3 ^ ) )
the c o n s i d e r a t i o n o f h i s
particular reference
policy
colleagues
some Papers
situation in India,
with
t o t h e g e n e r a l q u e s t i o n of
as t o Mr Gandhi and the c i v i l
prisoners .
circulating
Eritish
disobedience
I n h i s Memorandum t h e S e c r e t a r y
of
State
drew s p e c i a l a t t e n t i o n t o an important and v a l u a b l e
n o t e by S i r H . G , H a i g ,
Co\mcil, with.a
t h e Home Member o f t h e V i c e r o y ' s
g r e a t deal
o f which he was i n a g r e e m e n t .
There c o u l d be no q u e s t i o n o f a n e g o t i a t i o n as t o t h e
terms on which t h e c i v i l
recover their
liberty,
disobedience prisoners
and t h e r e were c e r t a i n
individ­
u a l s who c o u l d not i n any event be r e l e a s e d at
The S e c r e t a r y
we had
present.
o f S t a t e a g r e e d w i t h S i r H .G, H.aig's
s t r o n g o p p o s i t i o n t o an act
spectacular
would
gaol d e l i v e r y ,
o f g r a c e amounting t o a
but he was not sure
a l t e r n a t i v e feast t o l e t
t w e l v e months take i t s
course
the p o l i c y
that
o f the
last
t h a t t h e r e was a^y
r e l a x a t i o n o f the p r e s e n t r e g i m e which c o u l d s a f e l y
be
undertaken..
The S e c r e t a r y
of State f o r
t o the Cabinet describing
s i t u a t i o n as a f f e c t i n g
I n d i a made a statement
i n some d e t a i l t h e
civil
disobedience
a t t h e end. o f which he s a i d t h a t h i s
w h i l e making no change i n p o l i c y ,
r e l e a s e of
political
prisoners,
own v i e w was,
t o speed up the
t h e e x i s t i n g p r i s o n e r s , who at
present
numbered 1 3 , 5 0 0 , and meanwhile t o watch c a r e f u l l y
s i t u a t i o n c r e a t e d by an i n c r e a s e i n t h e numbers
the
released.
T h i s v i e w , he s a i d , was shared by S i r H e r b e r t
Emerson,'
a former
i n the
S e c r e t a r y t o t h e Government o f I n d i a
Home Department, who was about t o become Governor
the
Punjab.
of
I n the c o u r s e o f a s h o r t d i s c u s s i o n a p r o p o s a l
was made t h a t t h e S e c r e t a r y
t o the Government o f
t o the l i n e
of
S t a t e should
suggest
I n d i a not t o adhere t o o
closely
they had h i t h e r t o t a k e n , t h a t Mr Gandhi
c o u l d not h e r e l e a s e d u n t i l he gave a p l e d g e not
revive
civil
better
formula would be t h a t he should not b e
released
disobedience.
I t was s u g g e s t e d t h a t a
" u n t i l t h e r e i s no l o n g e r a danger o f
civil
disobedience".
The S e c r e t a r y
of State for
draw t h e V i c e r o y ^
I n d i a s a i d he would
attention to this
The Cabinet a g r e e d
to
suggestion.
—
To g i v e t h e i r support t o the
Secretary of State f o r I n d i a ' s
p r o p o s a l as s e t f o r t h a b o v e .
%AVAL CONSTRUCT T 0
N
FOR 1933.
(Prevxous
"flSbSSt V
0
elusionT)
£&.
3 . The Cabinet had b e f o r e
M
e
l
m
o
r
a
n
d
u
m
b
y
t
h
p
e
i r s t
them a Most
Lord of the A d m i r a l t y
(0 P - 2 5 ( 3 3 ) ) reminding h i s c o l l e a g u e s
'
"
u
,
Seeret
of a s e r i o u s
f
warning h e had g i v e n to t h e Cabinet i n C P . - 6 4 ( 3 2 ) ,
at the time o f the c r i s i s
t h e Navy s d e f i c i e n c y
1
performance
a t Shanghai, i n r e g a r d t o
i n m a t e r i a l necessary f o r the
o f i t s duty i n any emergency.
On t h e
understanding that the question o f adopting a
r e g u l a r programme f o r remedying t h e w h o l e o f t h e
deficiencies
w i t h i n some d e f i n i t e p e r i o d should be
c o n s i d e r e d b e f o r e t h e E s t i m a t e s f o r 1934 were
s u b m i t t e d , t h e A d m i r a l t y were prepared t o t a k e
only
a s m a l l s t e p i n t h e d i r e c t i o n o f making good t h e
deficiencies
i n q u e s t i o n , and he had a c c o r d i n g l y
proposed t o t h e C h a n c e l l o r o f t h e Exchequer t h e
following
s p e c i a l p r o v i s i o n i n a d d i t i o n t o t h e normal
-
-
requirements
-
of the y e a r : -
D e f e n s i v e equipment and r e s e r v e s
O i l Fuel Storage
F l i g h t s f o r F l e e t A i r Arm
O i l Fuel
£100,000
118,000
146,000
100 pop
£ 464,000.
The C h a n c e l l o r
o f t h e Exchequer had found
himself
unable t o a g r e e t o t h e i n c l u s i o n o f any p a r t
provision,
the F i r s t
of
this
f o r reasons s e t out i n t h e Memorandum, but
Lord hoped t h a t t h e Cabinet would f e e l
able
t o a u t h o r i s e at l e a s t a s u b s t a n t i a l p a r t o f t h e v e r y
small a d d i t i o n a l
e x p e n d i t u r e he p r o p o s e d ;
he thought t h e A d m i r a l t y were e n t i t l e d
otherwise
t o have an
assurance from t h e Cabinet t h a t they r e a l i s e d and
%
took r e s p o n s i b i l i t y
t h e Navy .
The F i r s t
I
f o r t h e continued unreadiness
of
Lord o f t h e A d m i r a l t y informed the Cabinet
t h a t when t h e e x i s t e n c e o f so many n a v a l
was brought t o h i s n o t i c e he had f e l t
them t o t h e C a b i n e t .
deficiencies
bound to
notify
He s u g g e s t e d t h a t some time
formula
was r e q u i r e d t o t a k e t h e p l a c e o f t h e former
t i o n g o v e r n i n g the Estimates
assump­
of t h e Defence
Services
t h a t from any g i v e n d a t e t h e r e would be no. major war
for
ten y e a r s , and he s u g g e s t e d t h a t some
investigation
should be undertaken w i t h a v i e w t o making a s t a r t i n
d e f e n s i v e prepare.tions
.
/ next y e a r .
He was p a r t i c u l a r l y a p p r e h e n s i v e owing t o
t h e s i t u a t i o n i n t h e Par E a s t , and i n t h i s
connection
h e drew a t t e n t i o n t o a r e c e n t t e l e g r a m ( N o . 3 8 ,
February 9 t h )
s t a t i n g that
diplomatic
a threat
from t h e B r i t i s h Ambassador a t
a well-balanced
of
Tokyo
and e x p e r i e n c e d
c o l l e a g u e was warning h i s Government
that
o f s a n c t i o n s would not m e r e l y be r e s i s t e d
but might w e l l be answered by immediate h o s t i l e
without a d e c l a r a t i o n of war.
acts
At Singapore t h e docks
w e r e i n a v e r y u n p r o t e c t e d s t a t e , more e s p e c i a l l y
attack,
if
it
e v e r came, was l i k e l y
as
t o be made w i t h o u t
warning,
The S e c r e t a r y
of
State for
deficiencies
of
S t a t e f o r War and t h e
Secretary
A i r both c a l l e d a t t e n t i o n t o
corresponding
i n t h e i r revSpective Departments ,
former s t a t e d h i s
The
i n t e n t i o n o"f c i r c u l a t i n g a summary
o f a Minute i n which the r e t i r i n g
Chief
of the
Imperial
G e n e r a l S t a f f had put on r e c o r d t h e p o s i t i o n o f t h e Army
When t h e Cabinet were being asked t o take
responsibility
for
let
the present
p o s i t i o n he f e l t
bound t o
them
know, as he had done a y e a r a g o , what t h a t p o s i t i o n w a s .
The S e c r e t a r y
o f S t a t e f o r A i r expressed
t i o n as t o t h e c o - o r d i n a t i o n o f t h e
The C h a n c e l l o r
c­
Services.
o f t h e Exchequer drer a t t e n t i o n t o a
Memorandum by t h e T r e a s u r y
( C . I . D . 1087-B) which had
been c o n s i d e r e d by the Committee o f
Imperial
when t h e y recommended t h e c a n c e l l a t i o n o f
assumption,
dissatisfa
the l a s t
the
s e n t e n c e o f which was as
-5­
Defence
ten-year
follows:­
"They d o , however, submit t h a t today
f i n a n c i a l and. economic r i s k s are by
f a r t h e most s e r i o u s and urgent t h a t
the country has t o f a c e , and t h a t
o t h e r r i s k s must be run u n t i l the
country has had. time and o p p o r t u n i t y
t o r e c u p e r a t e and our f i n a n c i a l
s i t u a t i o n to improve".
That s i t u a t i o n s t i l l
deny t h e r i s k s ,
applied.
The Treasury
d i d not
but c o n s i d e r e d t h e f i n a n c i a l
g r e a t e r than t h e war r i s k .
risk
He r e c a l l e d t h a t
the
Committee o f I m p e r i a l Defence had a l s o recommended
that a s t a r t
should be made i n p r o v i d i n g f o r
ments which a r e p u r e l y d e f e n s i v e ,
of bases, p r i o r i t y
Par E a s t .
That
being
the Admiralty
i n c l u d i n g the
g i v e n t o requirements
seemed t o him the only
The Prime M i n i s t e r
that
commit­
defence
in the
policy.
agreed w i t h the F i r s t
i t was more c o n v e n i e n t
Lord of
t o work on
some t i m e assumption than t o be w i t h o u t a h y p o t h e s i s
at a l l .
The d i s c u s s i o n tended t o show, however,
a t t h e p r e s e n t moment i t would be d i f f i c u l t
to
that
find
any assumption on which even t o base an i n q u i r y .
the f i n a n c i a l
conditions
d e s c r i b e d by t h e C h a n c e l l o r
o f t h e Exchequer the Cabinet would have t o
responsibility,
deficiencies
In
take
as they had done b e f o r e ,
for
o f t h e Defence D e p a r t m e n t s .
If
the
there
was any m a t t e r o f p a r t i c u l a r urgency t h e D e f e n c e
Minister
concerned should r a i s e i t
through t h e
ordinary
channels.
The Cabinet a g r e e d
—
( a ) To take r e s p o n s i b i l i t y f o r t h e d e f i c i e n c i e s
i n the D e f e n c e S e r v i c e s which are imposed
by the d i f f i c u l t f i n a n c i a l s i t u a t i o n o f
t h e country a t the p r e s e n t t i m e :
(b)
l^'Lt
n :i?y should be t h a t recommended
by the Committee of I m p e r i a l Defence on
h
pol
March 2 2 , 19 3 2 : ­
if ^hat
m
a s t a r t should be made i n
p r o v i d i n g f o r commitments which
are p u r e l y d e f e n s i v e , i n c l u d i n g
the d e f e n c e o f b a s e s " , f i r s t
p r i o r i t y being given to
r e q u i r e m e n t s i n the' Par
Eas t :
e ) That i f any q u e s t i o n s o f s p e c i a l
urgency a r i s e , t h e Defence M i n i s t e r s
concerned should r a i s e them through
t h e usual channels .
THE DISAEMAMBNT
CQJHieftB&eE.
4 . The S e c r e t a r y
of State for
i n f o r m e d the Cabinet o f h i s
( P r e v i OTIS
Reference:
Cabinet ^ 7
( 3 3 ) , Con­
clusion %.)
a report
Foreign
i n t e n t i o n to
on t h e p r e s e n t p o s i t i o n a i t h e *
Affairs
circulate
5, Trie Cabinet had b e f o r e them a Memorandum by the
MINES.
JV .. .
P r e s i d e n t o f the Board o f Trade ( C . P . - 2 7 ( 3 3 ) ) on the
[international
Convention
s u b j e c t o f the I n t e r n a t i o n a l Convention on the Hours
limiting
Hours o f Work.
o f Work i n Coal M i n e s , I n which he a s k e d , as a m a t t e r
pPrevious
o f u r g e n c y , f o r a d e c i s i o n on the l i n e the S e c r e t a r y f o r
Reference:
Cabinet 12
Mines should take a t a meeting c a l l e d by the I n t e r n a t i o n ­
( 5 2 ) , Con­
iLusion 3 ) .
a l Labour O f f i c e t o take p l a c e on February 20th t o
FJFOAL
FA.
d i s c u s s the p o s i t i o n o f
the C o n v e n t i o n .
He r e c a l l e d
t h a t i n F e b r u a r y , 1 9 3 2 , the then S e c r e t a r y f o r Mines
had announced, w i t h the a u t h o r i t y o f
the
Government,
t h a t we were f a v o u r a b l y d i s p o s e d towards the
Convention;
that the d e t a i l e d a p p l i c a t i o n of
provisions
some of
its
p r e s e n t e d problems t h a t were under c o n s i d e r a t i o n ;
as soon as t h e s e p o i n t s had been d i s p o s e d o f
ment would be p r e p a r e d t o r a t i f y ,
The
Labour O f f i c e had now secured from s i x
other
International
countries
t h a t t h e y were r e a d y t o p r o c e e d t o
eous r a t i f i c a t i o n
the Govern­
provided that six
c o u n t r i e s d i d so a t the same t i m e .
statements
that
simultan­
and had i n v i t e d t h e Governments
concerned t o a t t e n d an i n f o r m a l m e e t i n g at Geneva on
F e b r u a r y 20th " t o examine the s i t u a t i o n i n the l i g h t
recent developments".
Trade warned h i s
The P r e s i d e n t o f
colleagues that I f
the Board o f
the C o n v e n t i o n
i n v o l v e d a r e d u c t i o n i n t h i s c o u n t r y o f ^ of
d a y ) became o p e r a t i v e ,
of
(which
an hour a
t h e r e was g r a v e danger t h a t
the
p r e s e n t peace i n the c o a l i n d u s t r y would be r e p l a c e d by
serious trouble,
maintained i f
as the p r e s e n t wage r a t e s c o u l d not be
hours were reduced u n l e s s the c o a l
trade
showed a more marked improvement than could y e t be
foreseen.
He had a l r e a d y r e c e i v e d a D e p u t a t i o n from
Mining A s s o c i a t i o n .
representatives
objections
He t h e r e f o r e recommended t h a t
should be i n s t r u c t e d t o p r e s s
a t t h e m e e t i n g , but he warned h i s
the
our
technical
colleagues
that i f
we adopted t h e s e d e l a y i n g t a c t i c s
t o which he saw no a l t e r n a t i v e
he the s u b j e c t o f p u b l i c
— a policy
- the Government would
c r i t i c i s m i n Europe
from the I n t e r n a t i o n a l M i n e r s ' F e d e r a t i o n ,
country from the M i n e r s ' F e d e r a t i o n .
generally
and i n
this
Attached t o
the
Memorandum was an Appendix s e t t i n g out t h e more i m p o r t a n t
objections
and the l i n e which the P r e s i d e n t
recommended
t h a t the S e c r e t a r y f o r Mines should take on e a c h .
In t h e c o u r s e o f d i s c u s s i o n i t was s u g g e s t e d tha.t
t h e p o s i t i o n would be v e r y much eased i f
o f the M i n e r s ' F e d e r a t i o n were themselves
objections
the
to
(which they were b e l i e v e d t o h o l d )
ratification
o f the Convention i n i t s p r e s e n t
The C a b i n e t a g r e e d
leaders
formulate
to
the
form.
—
(a)
To approve t h e p r o p o s a l s o f the P r e s i d e n t
o f t h e Board o f Trade as s e t f o r t h i n
CP.-27 (35):
(b)
That t h e P r e s i d e n t o f the Board o f
Trade should c o n t i n u e e f f o r t s up t o
February 20th i n o r d e r t o t r y and f i n d
some p o i n t or p o i n t s on which t h e
Government would have t h e support both
o f t h e M i n e r s ' F e d e r a t i o n and t h e Mining
Association in urging objections t o
r a t i f i c a t i o n o f t h e Convention i n i t s
present form.
1
UNEMPLOYMENT
INSURANCE.
(Previous
Reference:
Cabinet 3
( 3 3 ) , Con­
o l u s i o n 1.)
F.R,
2.?(j&)9
6. The C a b i n e t had b e f o r e
them a Most
Secret
Second Report o f the Cabinet Committee on Unemployment
Insurance
(CP.-22
(33)),
i n which t h e Committee
submitted a g r e e d p r o p o s a l s t o s o l v e the problem o f
Ministerial responsibility,
and i n f o r m a t i o n
on
s p e c i f i c p o i n t s r e f e r r e d t o them by the Cabinet
the M e e t i n g mentioned, i n t h e m a r g i n .
After
(a)
considerable
d i s c u s s i o n the Cabinet
^o a p p r o v e the p r o p o s a l s o f the
C a b i n e t Committee i n C . P . - 2 2 ( 3 3 )
as t o M i n i s t e r i a l r e s p o n s i b i l i t y :
( b ) To i n v i t e the Cabinet Committee t o
go on w o r k i n g out i n d e t a i l the
C h a n c e l l o r o f the E x c h e q u e r ' s o r i g i n a l
scheme as m o d i f i e d by C P . - 2 2 ( 3 3 ) ,
on t h e u n d e r s t a n d i n g t h a t t h e Cabinet
was s y m p a t h e t i c t o the g e n e r a l i d e a
o f t h e scheme, and hoped t o put i t
i n t o e x e c u t i o n a f t e r examination o f
t h e a d v i c e o f the C a b i n e t Committee:
( c ) That i f i n s u p e r a b l e d i f f i c u l t i e s
should a r i s e i n w o r k i n g out t h e
d e t a i l s o f the scheme as m o d i f i e d
by C P . - 2 2 ( 3 3 ) , t h e Chairman of
the Committee should c o n s u l t t h e
Prime M i n i s t e r w i t h a v i e w t o a
S p e c i a l M e e t i n g of the C a b i n e t :
( d ) ^hat the q u e s t i o n should be
as one o f u r g e n c y .
treated
five
at
agreed
CO-OPERATIVE
SOCIETIES.
Proposed
Taxation
of.
(Previous
Reference:
Cabinet 22
( 3 2 ) , Con­
elusion 2 ) .
7 . The Cabinet had b e f o r e
them a N o t e by the
Chancellor of
the Exchequer ( C P . - 1 9 ( 3 3 ) )
the Report of
the Committee which v;as s e t u p ,
accordance w i t h the d e c i s i o n o f
Meeting r e f e r r e d
the p o s i t i o n o f
t o Income T a x .
covering
the Cabinet a t
to in the m a r g i n , t o e n q u i r e
Co-operative Societies
in
in
the
into
relation
The p r i n c i p a l recommendations
of
the Committee were as f o l l o w s : ­
( a ) That C o - o p e r a t i v e S o c i e t i e s should be
charged to Income Tax i n r e s p e c t of
a l l t r a d i n g , whether w i t h members or
w i t h non-members, the charge b e i n g
computed i n accordance w i t h t h e
o r d i n a r y p r o v i s i o n s as t o a l l o w a b l e e x ­
p e n s e s , wear and t e a r , e t c . , a p p l i c a b l e
under the Income Tax A c t s i n t h e case
of c o r p o r a t e b o d i e s c a r r y i n g on t r a d e :
(b)
That the " d i v i . " should be t r e a t e d as
a t r a d e expense:
(c)
That the s t a t u t o r y exemption g r a n t e d
by S e c t i o n 39 ( 4 ) of the Income Tax
hot,
1918, should be withdrawn:
There was an a d d i t i o n a l
recommendation:
That C o - o p e r a t i v e S o c i e t i e s should
make t h e i r d i s t r i b u t i o n s of i n t e r e s t
w i t h o u t d e d u c t i o n of Income Tax, the
r e c i p i e n t s being d i r e c t l y chargeable
I n accordance w i t h t h e i r i n d i v i d u a l
liabilities.
The R e p o r t f u r t h e r
stated
that i f
recommendations were c a r r i e d o u t ,
would be
the
certain
above
legislation
necessary.
The Cabinet agreed
—
( a ) That a Cabinet Committee, composed as
follows The C h a n c e l l o r o f t h e Exchequer,
The S e c r e t a r y o f S t a t e f o r Dominion
Affairs,
The S e c r e t a r y o f S t a t e f o r War ­
should be s e t up f o r t h e purpose o f
o b t a i n i n g i n f o r m a t i o n as t o t h e
a p p l i c a t i o n o f the p r i n c i p l e s o f t h e
R e p o r t o f t h e Committee on t h e P o s i t i o n
of Ob-operative Societies in r e l a t i o n
t o Income Tax, w i t h complete d i s c r e t i o n
t o c o n s u l t any p e r s o n whose a s s i s t a n c e
they might t h i n k d e s i r a b l e :
( b ) That i n t h e meantime t h e p u b l i c a t i o n o f t h e
Report should be suspended.
8 . T h e Cabinet had b e f o r e
old Mining
Native
.eserves .
n
Secretary
of
the subject
State for
them a Memorandum by the
the Colonies
(CP.-31
(33))
on
o f Gold Mining i n N a t i v e R e s e r v e s i n Kenya,
i n which he ashed f o r a C a b i n e t d e c i s i o n on a q u e s t i o n
Previous
Reference:
Cabinet 5
( 3 3 ) , Con­
olusion
O
r a i s e d i n the r e c e n t Debate i n the House o f
Lords,
when t h e Archbishop of Canterbury had sought an under­
taking that
no a c t i o n should be taken on the Report
t h e C a r t e r Commission ( t h e Land Commission which
e n q u i r i n g i n t o t h e adequacy o f the N a t i v e
of
S t a t e thought
Native interests
is
Reserves
and the w o r k i n g o f the Lands T r u s t Ordinance)
P a r l i a m e n t had c o n s i d e r e d t h e R e p o r t .
of
The
until
Secretary
i t would be unwise and c o n t r a r y
to
t o g i v e s o comprehensive a p l e d g e ,
which would p r e c l u d e prompt a c t i o n b e i n g taken when
e v e r y o n e a g r e e d t h a t such a c t i o n was n e c e s s a r y .
t h e c i r c u m s t a n c e s h e thought
the answer ought t o be
t h a t P a r l i a m e n t would c e r t a i n l y
nity
be g i v e n f u l l
o f d i s c u s s i n g t h e R e p o r t , but t h a t
unreasonable
In
opportu­
i t would be
t o say t h a t no a c t i o n of any k i n d should
be t a k e n i n advance of a P a r l i a m e n t a r y D e b a t e , which
might not be i m m e d i a t e l y p o s s i b l e .
He would a l s o draw
a t t e n t i o n t o t h e p r o v i s o g o v e r n i n g t h e terms o f
ence t o t h e C a r t e r Commission, and would say
notwithstanding t h i s ,
if
refer­
that,
t h e Report recommended any
changes i n t h e p r o v i s i o n s
not be c a r r i e d
the R e p o r t .
Governor
into
o f t h e Ordinance t h e s e should
had an o p p o r t u n i t y of
e f f e c t u n t i l P a r l i a m e n t had/discussing
On t h e q u e s t i o n o f p r o s p e c t i n g ,
o f Kenya had had a r e p o r t
K i t s o n , which had been p u b l i s h e d .
to
follow
Secretary
Sir Albert
from S i r
the
Albert
The Governor
desired
K i t s o n ' s a d v i c e , w i t h which t h e
o f S t a t e c o n c u r r e d , but he had l a i d down the
c o n d i t i o n t h a t t h e Governor must be s a t i s f i e d
that
administrative
satisfac­
arrangements were complete and
t o r y b e f o r e p r o s p e c t i n g was a l l o w e d i n any
area.
his
The Cabinet a g r e e d
—
( a ) To approve t h e p r o p o s a l s o f t h e
S e c r e t a r y o f S t a t e f o r the C o l o n i e s
as s e t f o r t h i n C P . - 3 1 ( 3 3 ) , and
( b ) To s u g g e s t t h a t t h e S e c r e t a r y o f
S t a t e f o r t h e C o l o n i e s should
i n v i t e the Archbishop o f Canterbury
t o v i s i t him i n c o n n e c t i o n w i t h a
l e t t e r from t h e Governor o f Kenya
which t h e S e c r e t a r y o f S t a t e had
r e a d to t h e Cabinet .
-14­
PRIVATE
MEMBERS'
BILLS.
9.
The C a b i n e t found i t
P r i v a t e Members' B i l l s
i m p o s s i b l e to
discuss
of which n o t i c e had been
given
f o r F r i d a y , March 3 r d , as o n l y t h e t h i r d B i l l on t h e
The P r o t e c t i o n
of Dogs B i l l , l i s t (The P r o t e c t i o n of Dogs B i l l ) had y e t been
(Previous
printed.
Reference:
C a b i n e t 15
( 3 1 ) , Oon­
clus ion 9 .)
FR.
2, Wh i t e h a l 1 Gar dens , S . W . 1 ,
February 15, 19 3 3 .