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(THIS DOCUMENT IS THE PROPERTY OF HIS BRITANNIC MAJESTY S GOVERNMENT) .
1
S
EC
RET.
COPY NO,
C A B I N
E T
50 (28) .
Meeting of the Cabinet to be held at 10,
Downing S t r e e t , S . W . I . , on WEDNESDAY,
November 7th, 1928, at 11.30 a.m.
AGENDA.
1. UNEMPLOYMENT.
(Reference Cabinet 49 ( 2 8 ) , Conclusion 4 ) .
Report of Inter-Departmental Committee,
( C P . 325 (28)
- already c i r c u l a t e d ) .
Report of Cabinet Committee on C P . 325 ( 2 3 ) .
( C P . 334 (28)
- t o be c i r c u l a t e d ) .
2. THE- WEST INDIAN CABLE AND WIRELESS SYSTEM.
Memorandum by the S e c r e t a r y of State f o r
the Colonies,
( C P . 328 (28)
- already c i r c u l a t e d ) .
TO TAKE NOTE OF : ­
3. BELLIGERENT RIGHTS.
(Reference Cabinet 46 ( 2 8 ) , Conclusion 3 ) .
Joint Memorandum by the A c t i n g S e c r e t a r y
of State f o r F o r e i g n A f f a i r s and the
F i r s t Lord of the A d m i r a l t y ,
( C P . 309 ( 2 8 ) , - a l r e a d y c i r c u l a t e d ) .
4 . REPARATIONS AND WAR DEBTS.
Memorandum by the Chancellor of the Exchequer,
covering r e - d r a f t of N^te t o the French
Government,
( C P . 326 (28)
- already c i r c u l a t e d ) .
5. COAL AMALGAMATIONS.
Note by the President of the Board of
Trade, covering Report to be presented
under Section 12 of the Mining Industry
A c t , 1926.
(Signed) M.P.A. HANKEY,
Secretary,
1 2 Whitehall Gardens, S.W.I.
6th November, 1928.
Cabinet
(THIS
DOCUMENT IS THE PROPERTY OF HIS BRITANNIC MAJESTY)S GOVERNMENT).
S S C R 5 T.
Copy No.
C A B I N E T
50 ( 2 8 ) .
CONCLUSIONS of a Meeting of the Cabinet h e l d at
10, Downing S t r e e t , S . W . 1 . , on WEDNESDAY,
7th November, -\S)2.&, at 11.^0 a.m.
PRESENT:
The R i g h t Hon. Stanley Baldwin, M.P.,
Prime M i n i s t e r .
( i n the C h a i r ) .
:
The Right Hon.
Lord Hailsham,
Lord Chancellor.
The Most Hon.
The Marquess of S a l i s b u r y ,
K.G.,G.C.V.O.,C.B.,
Lord P r i v y S e a l .
T h e Right Hon.
W.S. C h u r c h i l l , C.H.,M.P.,
Chancellor of the Exchequer.
The Right Hon.
S i r William Joynson-iHicis,
B t . , M . P . , S e c r e t a r y of S t a t e
f o r Home A f f a i r s .
The Right Hon.
L.S. Amery, M.P., Secretary
of State f o r Dominion A f f a i r s
and Secretary of S t a t e f o r
the C o l o n i e s .
The Right Hon.
S i r Laming Worthington-Evans,
Bt.,G.B.E.,M.P., Secretary
of S t a t e f o r War.
The Right Hon.
The Viscount P e e l ,
Secretary o f S t a t e
India.
The Right Hon.
Sir Samuel Hoare, B t . , G . B . E . ,
C.M.G. , M . P . , S e c r e t a r y o f
State f o r A i r .
G.B.E.,
for
The Right Hon.
W.C. Bridgeman, M.P.,
F i r s t Lord of the Admiralty.
TJie R i g h t Hon.
Sir P h i l i p Cunliffe-Lister,
K.B.E. ,M.C.,M.P., P r e s i d e n t
of the Board of Trade.
The Right Hon.
N e v i l l e Chamberlain, M.P.,
M i n i s t e r of Health.
The R i g h t Hon.
W.E. Guinness, D . S . O . , 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 Right Hon.
Lord Eustace P e r c y , M.P.,
President of the Board o f
Education.
The Right Hon.
S i r Arthur S t e e l - M a i t l a n d ,
B t . , M . P . , M i n i s t e r of
Lab our.
The Most Hon.
The Marquess of Londonderry,
K.G. ,M.V.O., F i r s t
Commissioner of Works.
The Right Hon.
Lord Cushendun, Chancellor
of the Duchy of Lancaster.
1. The Cabinet had b e f o r e them the Report
of
an Inter-Departmental Committee on Unemployment
(Paper C.P.-325 ( 2 8 ) ) which had been before them
at t h e i r previous Meeting, together with the
Report thereon of the Cabinet Committee appointed
t o consider i t
(Paper C P . - 5 3 4 ( 2 8 ) )
and a s t a t e ­
ment c i r c u l a t e d by the Secretary o f S t a t e
Dominion A f f a i r s r e p o r t i n g the l a t e s t
i n regard to Oversea Settlement (Paper
for
developments
CP.-336
(28)) .
The Report, o f the Cabinet Committee recom­
mended a p o l i c y in regard to Unemployment under
the f o l l o w i n g heads
The main c o n t r i b u t i o n to a s s i s t
Unemployment i s the comprehensive
measure o f Rating R e l i e f to
A g r i c u l t u r e and industry, which­
comes i n t o f o r c e a f t e r the r a t e
payments o f A p r i l n e x t , together
with f u r t h e r r e l i e f from the
r e d u c t i o n o f railway f r e i g h t s to
a g r i c u l t u r e , coal,and i r o n and
s t e e l , which l a t t e r , under the
proposals of the Government, w i l l
begin on the 1st December.
The second main f e a t u r e i s the
p o l i c y o f Empire Settlement, which
i s being g r e a t l y a c c e l e r e t e d .
The t h i r d feature i s the p o l i c y o f
transference of surplus labour from
the depressed areas to areas of
b e t t e r employment, the process
being f a c i l i t a t e d by the p r o v i s i o n
o f Training C e n t r e s .
To f a c i l i t a t e the t r a n s f e r p o l i c y
the Committee proposes to reopen
on more f a v o u r a b l e terms the grants
o f f e r e d t o L o c a l A u t h o r i t i e s through
the S t . D a ^ i d s Committee in r e s p e c t
o f works financed out o ' loans i n
oases where A u t h o r i t i e s i n the more
prosperous areas are prepared to
employ a s u b s t a n t i a l p r o p o r t i o n o f
persons from the d i s t r e s s e d areas
upon public works. The o f f e r of
improved terms w i l l , as a r u l e ,
f
f
be c o n d i t i o n a l on the Local
A u t h o r i t y drawing not l e s s than
50 per c e n t . o f the labour from
the d i s t r e s s e d a r e a s , but the
S t . David's Committee w i l l have
d i s c r e t i o n to allow a lower
percentage i n s p e c i a l o a s e s .
EXPORT CREDITS.
(Previous
Reference:
Cabinet 45
( 2 8 ) , Con­
clusion 1.)
LAND DRAINAGE.
In accordance w i t h
decision
already announced . B i l l w i l l
be introduced i n the House o f
Commons at once t o extend the
Export C r e d i t s Scheme, which
would have e x p i r e d a f t e r
September, 1929.
An extension o f the f i e l d o f
Land Drainage and a l 3 i d schemes
( o f which the M i n i s t r y o f A g r i ­
c u l t u r e has a w a i t i n g l i s t )
a s s i s t e d out of State funds w i t h
t h e o b j e c t of d i v e r t i n g unemployed
miners and others to useful works
o f an urgent nature:
the Govern­
ment grant i n such cases to be
50 per c e n t , o f the approved
cost o f the w o r k s .
f o r Scotland
A schere /simi1ar t o that which was
i n o p e r a t i o n from 1921 t o 1926,
which included f i e l d , a r t e r i a l
and h i l l d r a i n a g e , an improvement
i n farm w a t e r - s u p p l i e s and the
improvement o f privately-owned
farir r o a d s ; labour required to be
obtained through the Labour Exchange,
o r , i f obtained elsewhere, to be
composed o f at l e a s t 75 per c e n t .
e x - S e r v i c e men: a p p l i c a n t s to be
r e q u i r e d to expend a sum at l e a s t
equal to the amount, o f the grant
offered.
a
( a ) England and
Wales.
(Pr evious
Reference:
Cabinet 7
( 2 7 ) , Con­
c l u s i o n 1 and
Appendix.)
(b) S c o t l a n d .
ELECTRICITY
SUPPLY.
(Previous
Ref ererc e:
Cabinet 8
(26) , Con­
clusion 1 5 . )
The r a p i d progress made in the l a s t
two years under the E l e c t r i c i t y
Supply A c t , o f which p a r t i c u l a r s are
g i v e n in the Committee's Report, i s
a s u b s t a n t i a l c o n t r i b u t i o n towards
c r e a t i n g employment i n the i n d u s t r i e s
affected.
In presenting the above proposals o f
policy
the Cabinet Committee had r e s e r v e d to the Cabinet
the recommendations o f S i r Warren F i s h e r ' s
I n t e r - D e p a r t m e n t a l Committee's Report In respect
o f the extension o f Forest
Holdings
In the course o f the discussion the President
o f the Board o f Trade drew a t t e n t i o n to the f o l l o w ­
ing passage i n the Report o f the Cabinet Committee
(Paper 0.P.-334
(28)):­
"There i s no doubt that a low migrant
passage r a t e would be a g r e a t
encouragement to steady m i g r a t i o n ,
as i t was b e f o r e the War. Arran^e­
ments w i l l , i t i s hoped, s h o r t l y be
completed with the Shipping Companies
on the No^th A t l a n t i c S e r v i c e by
which they w i l l be enabled to quote
a, g e n e r a l reduced 5rd-Class fare to
Canada f o r B r i t i s h migrant a at £10.**
Lord Lovat was able t o a s c e r t a i n from
the Canadian a u t h o r i t i e s t h i s summer
that such an arrangement would not be
regarded as bringing the migrants
a v a i l i n g themselves o f these reduced
f a r e s w i t h i n the category o f a s s i s t e d
migrants and subject to the l i r o x t a ­
t i o n s as to occupation or other
r e s t r i c t i o n s imposed i n connection
with a s s i s t e d passages
Sir P h i l i p Cunliffe-Lister
asked any o f h i s
c o l l e a g u e s who were speaking on t h i s subject
in
the Debate to e x e r c i s e great care to use the
p r e c i s e langiaage o f the underlined p o r t i o n of
abo""-e e x t r a c t
from the Report, as the Shipping
Companies concerned, having regard to
obligations
the
their
to the Shipping Conference to Which­
they belonged, could only reach agreement cn the
b a s i s that the plan i s not for a Biere
lowering
o f f a r e s but part o f a scheme undertaken by the
B r i t i s h Government.
I n connection with the passage quoted above,
but immediately f o l l o w i n g the words u n d e r l i n e d ,
the S e c r e t a r y o^ State for Dominion A f f a i r s
said
35
NOTB.
In t h e Committee's Report i t i s mentioned
that the f i g u r e o f £10 should not be quoted
u n t i l t h e r e i s a firm agreement w i t h the
Companies as t o the terms on which the
d i f f e r e n c e i s to be borne.
that the arrangements agreed between Lord Lovat
and the Canadian a u t h o r i t i e s had not yet r e c e i v e d
formal c o n f i r m a t i o n .
He would have to obtain
a u t h o r i t y from the Canadian Government b e f o r e
t h e i r acquiescence could be announced.
He proposed
to send a telegram, the same morning on t h i s p o i n t .
Mr Amery also impressed on any o f h i s c o l l e a g u e s
who would be speakine i n the Debate the importance
of a v o i d i n g the suggestion that migration was
undertaken merely
as a remedy for unemployment,
which could only have the worst e f f e c t
i n Canada.
I n the course of the discussion i t was
suggested that emphrsis might be l a i d on the
fact
that sove o f the b e s t m a t e r i a l i n the country has
become a v a i l a b l e ' o r m i g r a t i o n owing t o the
p e c u l i a r misfortunes o f the coal
industry.
Emphasis was a l s o l a i d i n the course o f the d i s ­
cussion on the f a c t
that much o f the present
unemployment i s the d i r e c t consequence o f the
General S t r i k e and Coal S t r i k e o f 1926.
In t h i s
connection the M i n i s t e r o^ Labour undertook to
c i r c u l a t e some f i g u r e s in regard to the trade
the country g e n e r a l l y ,
of
apart from the d i s t r e s s e d
industries.
Comment was made that at a time when s p e c i a l
expenditure i s about to be incurred for the purpose
of a l l e v i a t i n g unemployment, the Treasury
is
pressing the S e r v i c e Departments, on grounds o f
economy, not t o spend the whole o f the money already
approved i n the Estimates f o r accepted schemes,
the c a r r y i n g out of which would make new employment
o r secure the r e t e n t i o n o f men already i n employment.
1 n o
-A
u£
I t was pointed o u t , however, that the proposals
o f the Cabinet Committee were designed more
e s p e c i a l l y to bring unemployed from the d i s t r e s s e d
areas to other a r e a s , which was not the case with
the schemes o f
the S e r v i c e Departments;
good Budget was to be secured next y e a r ,
inter­
was e s s e n t i a l ;
that i f a
economy
and that the/national outlook was
such as t o encourage the hope that t h i s might be
a c h i e v e d by the S e r v i c e Departments.
The Chancellor
o f the Exchequer undertook, however, to c o n f e r with
the Secretary o f State for A i r i f he had any
special
suggestions to make in t h i s
connection.
The Cabinet agreed —
( a ) To accept the Report o f the Umemploy­
ment P o l i c y Committee (Paper C . I . - 3 3 4
( 2 8 ) ) ( A p p e n d i x ) as the basis o f the
Government's p o l i c y on Unemployment
t o be announced i n the House of
Commons during the forthcoming
Debates on the Amendment t o be moved
by the Labour Party to the Address:
( b ) That on the question of Forest Holdings
the Chancellor o f t h e Exchequer, i n the
course o f h i s speech, should s t a t e that
t h e Government were c a r r y i n g on the
p o l i c y p r e v i o u s l y announced i n regard
to Forest Holdings, and that i f oppor­
t u n i t i e s should a r i s e f o r s e t t l i n g l a r g e
f a m i l i e s in f o r e s t h o l d i n g s these cases
would r e c e i v e s p e c i a l c o n s i d e r a t i o n :
( c ) That the Secretary o f State for
Dominion A f f a i r s should send a telegram
t o the Canadian Government asking f o r
confirmation o f the arrangements"made
by Lord Lovat with them, under which
the r e d u c t i o n i n the 3rd-Class f a r e
f o r E r i t i s h migrants would not be
regarded as bringing the migrants
a v a i l i n g themselves o f these reduced
f a r e s w i t h i n the category o f a s s i s t e d
migrants and subject to the l i m i t a t i o n s
as to occupation or o t h e r r e s t r i c t i o n s
Imposed i n connection with a s s i s t e d
passages.
Mr Amery should press the
Canadian Government for an immediate
reply:
(d)
Pending a r e p l y from the Canadian
Government, the Government speakers
i n the Debate shoxild r e f r a i n from
s t a t i n g that the Canadian Government
had accepted these arrangements:
( e ) That the P r e s i d e n t o f the Board
o f Trade, notwithstanding t h a t the
formal confirmation of these arrange­
ments had not been r e c e i v e d from the
Canadian Government, should have
a u t h o r i t y to proceed with h i s n e g o t i a ­
tions w i t h the Shipping Companies on
the North A t l a n t i c S e r v i c e f o r the
reduction of the 3rd-Class f a r e to
Canada on the basis o f those arrange­
ments^^c­
(f)
That i n the forthcoming Debates on
the Labour P a r t y ' s Unemployment
Amendment to the Address, the f o l l o w ­
i n g M i n i s t e r s should be prepared to
talce p a r t : Thursday, November 8 t h .
The Chancellor of the Exchequer, at
the outset o f the Debate.
Mr Herbert G. W i l l i a m s , M.P.,
Parliamentary Secretary to the Board
o f T r a d e , to wind up the Debate.
(NOTE:
The President o f the
Board o f Trade undertook
to inform Mr H. G.W11 liana . )
F r i d a y , November 9 t h .
The M i n i s t e r o f Labour.
Monday, November 18th.
The Secretary o f State for War to
wind up the Debate .
1H
THE FACTORIES
BILL.
(Previous
Referenc e:
Cabinet 41
( 2 8 ) , Con­
clusion 9.)
2 . I n the oourse o f the discussion referred
t o i n the preceding Minute, r e f e r e n c e was made to
the comment i n Parliament on the omission from the
K i n g ' s Speech of the F a c t o r i e s
Bill.
The Chancellor o f the Exchequer undertook
to r e p l y to c r i t i c s by p o i n t i n g out that everyone
wishes the F a c t o r i e s B i l l t o be c a r r i e d .
At the
present t i m e , however, t h e c o n d i t i o n s i n our
f a c t o r i e s are b e t t e r than i n any other country i n
Europe, though our I n d u s t r i e s are by no means as
prosperous as s i m i l a r i n d u s t r i e s i n some other
countries.
It
appeared to t h e Government to be
more important to pass the Rating Scheme i n order
to r e v i v e industry as a f i r s t
step to be c a r r i e d
out during the present Session, a f t e r which i t
be p o s s i b l e t o make f u r t h e r improvements by
Introducing the F a c t o r i e s
legislation.
will
BEAM WIRELESS
AND CABLE CCMPANIES.
(Previous
Referenc e:
Cabinet 49
( 2 8 ) , Con­
elusion 17.)
3 . The Cabinet had b e f o r e them a Memorandum by
the Secretary of State f o r the Colonies (Paper
328 ( 2 8 ) ) c i r c u l a t i n g
for
C.P.­
the c o n s i d e r a t i o n of the
Cabinet, and i n r e f e r e n c e to the Imperial Telegraphs
B i l l , a Memorandum drawing a t t e n t i o n to c e r t a i n
THE WEST INDIAN
CABLE AND WIRELESS SYSTEM.
points a r i s i n s out o f the s a l e of the West Indian
(Previous
Reference:
Cabinet 23
( 2 4 ) , Con­
clusion 12.)
Company which i s to be formed i n accordance with
Cable and W i r e l e s s System to the Communications
the Report of the Imperial W i r e l e s s and Cable
Conference.
In this Memorandum Mr Amery r e c a l l e d the
f o l l o w i n g c o n d i t i o n s , which he had intended to
i n s i s t on i n connection w i t h an o f f e r
in'1927
(but subsequently withdrawn) f o r the purchase o f thw
Government system by the D i r e c t West India Company:­
( a ) A d e f i n i t e undertaking to continue
the s e r v i c e s now performed by the
Government system at r a t e s not i n
excess of the present r a t e s f o r a
p e r i o d o f , say, 2 5 y e a r s , without
payment of any subsidy.
( b ) A d e f i n i t e undertaking not to
t r a n s f e r the ownership or c o n t r o l of
any o f t h e i r West Indian cables or
w i r e l e s s s t a t i o n s without the consent
o f the Government.
( c ) C a n c e l l a t i o n o f the o b j e c t i o n a b l e
clauses i n the agreement o f 1870
between the Cuba Submarine Company
and the West I n d i a and Panama
Company, and any connected or
s u b s i d i a r y agreements.
( d ) An undertaking to avoid as far as
p o s s i b l e taking B r i t i s h West Indian
t r a f f i c through f o r e i g n t e r r i t o r y
or through s t a t i o n s or l i n e s under
foreign control.
(e) An arrangement for taking over the
Carriacou and Montserrat w i r e l e s s
s t a t i o n s at cost p r i c e , l e s s any
amount in the Sinking Fund, and f o r
t h e i r o p e r a t i o n as part o f the system.
( f ) S u b s t i t u t i o n o f landing l i c e n c e s for
a term o f , say, 25 y e a r s , f o r those
l i c e n c e s o f the West India and Panama
Company which contain no l i m i t o f
time and a r e claimed to be i n perpetuity.
While Mr Amery h e s i t a t e d to suggest that these
c o n d i t i o n s should be d e f i n i t e l y attached to the
s a l e o f the West Indian Telegraph System, he
recommended, i n v i e r o f the great d e s i r a b i l i t y
safeguarding
as far as p o s s i b l e the i n t e r e s t s
these p a r t s o f the Empire, t h a t i t
of
of
shotild be an
i n s t r u c t i o n to the Advisory Committee,
through
which the Governments concerned are to e x e r c i s e
c o n t r o l o v e r the Communications Company, to bear
the above p o i n t s i n mind.
The Cabinet did not f e e l j u s t i f i e d
pursuing t h i s s u b j e c t i n the absence o f
S e c r e t a r y of
in
the
State f o r Scotland, who had been
Chairman o f the I m p e r i a l W i r e l e s s and Cable
ence.
They asked the Secretary of State f o r
Colonies
Confer­
the
to confer with the Secretary of State f o r
Scotland with a view to rendering j o i n t
at a future Meeting of
the Cabinet.
advice
'ejms OF WAR
AND BELLI­
GBB^NT RIGHTS
AT SEA.
(Previ ons
Refer enoe:
Cabinet 46
( 2 8 ) , Con­
elusion 3.)
4 . The Cabinet had b e f o r e them a Joint Memo­
randum by the Acting Secretary o f State for
Foreign
Affairs
(Paper
C.P.-309
and the F i r s t Lord of the Admiralty
( S 8 ) ) , prepared i n accordance with
Conclusion r e f e r r e d
the
to i n the margin, i n regard
to the extent to which the American Navy co-operated
with t h e B r i t i s h Navy during the Great War i n
e x e r c i s i n g the r i g h t s of search and blockade,
in
which the conclusion was reached that the American
Naval Forces did not act on any occasion i n a
manner contrary to the p o l i c y expressed by the
United States Government on b e l l i g e r e n t
rights
p r i o r to t h e i r entry i n t o the War .
The Cabinet took note o f the above
Memorandum .
1 HQ
REPARATIONS
AND ALLIED
DEBTS.
5 . The Cabinet had b e f o r e them a Memorandum
by the Chancellor o f the Exchequer (Paper
C.P.-326
( 2 8 ) ) c o v e r i n g a t r a n s l a t i o n o f a statement
(Previous
Reference:
Cabinet 48
( 2 8 ) , Conelusion 3,)
from
M. Poincare" transmitted to the Chancellor o f
the
Exchequer by the French Ambassador in London on
October 30th?
a t r a n s l a t i o n of a statement
at the Foreign O f f i c e
by the German Charge'd*Affaire s
i n London on October 30th;
of
left
and a r e v i s e d
draft
the Note to M. Poincare i n which c e r t a i n m o d i f i c a ­
t i o n s i n the e a r l i e r d r a f t had been introduced i n
consequence o f the r e c e i p t
o f the above documents.
The Chancellor o f the Exchequer gave a
favourable
account o f h i s i n t e r v i e w with the
Italian
r e p r e s e n t a t i v e on R e p a r a t i o n s , and at h i s request
the A c t i n g Secretary o f State f o r Foreign A f f a i r s
read a message he had r e c e i v e d from M. Poincare'
which i n c l u d e d a statement to the e f f e c t
that
Mr Parker G i l b e r t did not now d e s i r e t o be used
as the channel o f communication f o r informing
the
German Government o f the views o f the B r i t i s h and
French Governments, and that i n these circumstances
M. P o i n c a r e thought i t would be a d v i s a b l e for the
B r i t i s h and French Governments to communicate to
the German Government the messages they had i n t e r ­
change d.
The Chancellor o f the Exchequer s a i d he would
l i k e to have a few days to think o v e r t h i s g u e s t i o n ,
which appeared f e a s i b l e , owing to the Government
c r i s i s i n France, and he would advise the Cabinet
on the subject at an e a r l y d a t e .
. Whitehall Gardens, S.W.1,
November 7,
1928.
. .
.
A P P E N D I X .
CRET.
334 ( 2 8 ) .
C A B I Tl S T . "
UNEMPLOYMENT POLICY COMMTTSB.
REPORT .
(1),
At t h e i r Meeting on November 5th, 1928,
(Cabinet 49 ( 2 8 ) , Conclusion 4 ) , the Cabinet had before
them the Report of an Inter-Departmental Committee under
the Chairmanship of S i r Warren F i s h e r containing recommen­
dations f o r d e a l i n g with unemployment ( C P . 325 ( 2 8 ) ) and
agreed That a Cabinet Committee, composed as follovvs
-
The Chancellor of the Exchequer ( I n the C h a i r ) .
The S e c r e t a r y of State f o r Dominion A f f a i r s
and the C o l o n i e s ,
The S e c r e t a r y of State f o r War,
The Secretary of State f o r Scotland,
The President of the Board of Trade,
The M i n i s t e r of Health,
The M i n i s t e r of A g r i c u l t u r e and F i s h e r i e s ,
The President of
the Board of Education,
The M i n i s t e r of Labour,
should meet t o consider the proposals i n
C P . 325 (28) and to r e p o r t to the Cabinet
on the f a l l o w i n g Wednesday t h e i r recommendations
as t o what announcement should be made In the
forthcoming Parliamentary Debates on the
subject of unemployment.
no
I.
2.
Derating and Anticipation cf Railway
freight r e l i e f .
The main contribution of the Government to a s s i s t
trade and employment i s the comprehensive measure of rating
rolief
to agriculture and industry which a f t e r the rate
payments of A p r i l next, r e l i e v e productive Industry of three­
quarters, and agriculture of a l l rates at a oost to the
National Exchequer of some £35 millions a year.
In addition
there i s the further r e l i e f by the reduction of railway freights
to a g r i c u l t u r e , coal and iron and s t e e l .
The rating r e l i e f , which
the Railways w i l l pass on to t h e i r customers, as already announced,
w i l l be concentrated in helping those industries where the need
is g r e a t e s t .
And in selecting the p a r t i c u l a r t r a f f i o s
to these industries, the r e l i e f
of concern
i s being concentrated where the
industries themselves consider the greatest benefit w i l l be
obtained.
Although the railway freight r e l i e f forms part of
the general scheme, the Government decided that, in order to
give immediate assistance to a g r i c u l t u r e , coal, and iron and
s t e e l , t h i s railway freight r e l i e f should be anticipated.
A vote w i l l be submitted to Parliament at an early date enabling
railway freight r e l i e f to begin on the 1st of December.
It Is
estimated that this r e l i e f w i l l throw an additional charge on the
Budget of this year of nearly £1,000,000 and of £2,250,000 on
next y e a r ' s Budget.
This r e l i e f w i l l allow for a reduction
of 10$ on the selected t r a f f i c s
of agriculture and iron and
s t e e l ; and, In view of the concentration of the coal
freight
r e l i e f in accordance with the desire of the mining industry
i t s e l f on coal f o r export, foreign bunkers, b l a s t furnaces and
steel works, the roduction on these selected coal
w i l l be equivalent to something like 30^*
traffios
Ill
II.
Empire S e t t l e m e n t .
The second main f e a t u r e i s the p o l i c y of
Empire S e t t l e m e n t .
The I n d u s t r i a l
Transference
Board emphasised the importance o f s t i m u l a t i n g the
normal flow of m i g r a t i o n to Canada.
In August l a s t
H.M. Government agreed t o a c c e l e r a t e and extend the
p o l i c y Ftf Empire Settlement at an estimated a d d i t i o n a l
cost of £-g- m i l l i o n i n t h i s year r i s i n g t o £l-J m i l l i o n s
in future y e a r s .
There i s no doubt that a low
migrant passage r a t e would be a great encouragement ta
steady migration as i t was b e f o r e the war.
Arrangements
w i l l i t i s h^ped s h o r t l y be completed with the Shipping
Companies on the Horth A t l a n t i c S e r v i c e by which t h e y
w i l l be enabled to quote a general reducedSrd Class
to Canada f o r B r i t i s h migrants at
£10*.
fare
Lord Lovat
was able to a s c e r t a i n from the Canadian a u t h o r i t i e s ­
t h i s summer that such an arrangement would not be regarded
as b r i n g i n g the migrants a v a i l i n g themselves of these
reduced f a r e s w i t h i n the category of a s s i s t e d migrants and
subject to the l i m i t a t i o n s as t o occupation or other
r e s t r i c t i o n s imposed i n connection w i t h a s s i s t e d passages.
Apart from these steps which are b e i n g taken
to stimulate the general flow of m i g r a t i o n , the
facilities
existing
f o r t r a i n i n g and t e s t i n g migrants who wish t o
take up work on the land overseas are being expanded by
the enlargement and f u l l e r u t i l i s a t i o n of
existing
t r a i n i n g c e n t r e s and the p r o v i s i o n of new t r a i n i n g centres
These f a c i l i t i e s w i l l be s u f f i c i e n t
to send t o Canada
during the p e r i o d of migration next year up t o
six
thousand men q u a l i f i e d and i n a p o s i t i o n to a v a i l them­
s e l v e s of the o p p o r t u n i t i e s which Canada a f f o r d s to men
* ( I n speaking i t would be b e t t e r not to quote the
f i g u r e of £10, u n t i l t h e r e i s a firm agreement with
the Companies as t o the terms on which the d i f f e r e n c e
i s to be b o r n e ) .
who are w i l l i n g to go on the land, whose w i l l i n g n e s s
has been t e s t e d by actual work on the land, and i t o ,
not s k i l l e d a g r i c u l t u r a l i s t s , have a t any r a t e an
elementary knowledge of the tasks expected of them.
1 1 1
'
The P o l i c y of gxffoefaniiao i n
r e l a t i o n t o '^hV tmemploymenF"Grantg
Committee.
The most serious f e a t u r e of the unemployment problem
i s the c o n c e n t r a t i o n in the depressed areas of l a r g e numbers of
persons who are permanently surplus t o the requirement of
industry.
their
There i s no ground f o r hoping that i f theae ­
people remain where t h e y are they w i l l ever again obtain
employment.
Various remedies have been suggested which may
in time b r i n g some r e l i e f
or improvement t o the i n d u s t r i e s
in
which they have been engaged, but they w i l l bring no immediate
help to the surplus p o p u l a t i o n .
The I n d u s t r i a l
Transference
Board, a f t e r c o n s i d e r i n g the problem e x h a u s t i v e l y oame to the
conclusion t h a t the only t h i n g to be done f o r t h i s
surplus
population was t o induce i t t o move elsewhere, and b r i n g i t back
i n t o the stream of l i v i n g i n d u s t r y .
The Government adopted t h i s
p o l i c y and i n pursuance of I t the M i n i s t r y of Labour aro moving
men and women and boys and g i r l s from the d e s o l a t i o n of the
s i x or
depressed areas to work elsewhere a t the r a t e of/seven hundred
a week.
The process of t r a n s f e r i s being- i n t i l l t a t e d by the
p r o v i s i o n of t r a i n i n g c e n t r e s where men unused to f a c t o r y
can be f i t t e d
f o r new t r a d e s .
expanded f o r the b e n e f i t
areas.
life
These c e n t r e s have a l r e a d y been
p r i m a r i l y of men from the depressed
I f t h e present rate of t r a n s f e r can be continued,
it
means that i n s i x months something l i k e 15,000 persons w i l l
have been t r a n s f e r r e d from the depressed areas through the
machinery of the Ministry of labour.
The w i l l to move has been
to some extent aroused, and i t i s probable t h a t at l e a s t as
many men and women i n a d d i t i o n are moving on t h e i r own account.
The p o l i c y ,
If
i t i s to succeed, must have the g o o d w i l l
and c o - o p e r a t i o n of a l l c l a s s e s of the community.
I t i s not a
question of asking f o r c h a r i t y , or of asking employers t o take
on men whom they do not need.
A l l that I s asked i s that of the
5.
1 U
l a r g e number o f labour engagements which are made every week
a r e l a t i v e l y small proportion s h a l l be g i v e n to those men,
who i n c l u d e , as the I n d u s t r i a l Transference Board pointed out,
some of the cream of the i n d u s t r i a l
In order t o f a c i l i t a t e
Soheme, i t
population.
and-further the
Transference
i s proposed to reopen on more f a v o u r a b l e terms the
grants o f f e r e d to Local A u t h o r i t i e s through the St. David^s
Committee in r e s p e c t of works financed out of loans in cases
where A u t h o r i t i e s i n the more prosperous areas are prepared
to employ a substantial p r o p o r t i o n of persons from the d i s t r e s s e d
areas upon public works.
The o f f e r of the improved terms w i l l as a r u l e
be c o n d i t i o n a l on the l o c a l a u t h o r i t y drawing not l e s s than
50 per oent of the labour from the d i s t r e s s e d a r e a s , but the
Sir. ]?avid's Committee w i l l have d i s c r e t i o n to a l l o w a lower
percentage i n s p e c i a l c a s e s .
The e x i s t i n g c o n d i t i o n s
a minimum a c c e l e r a t i o n of 5 years and excluding
requiring
road works
w i l l be waived i n order to. secure the maximum response.
Although the object cf the scheme i s to
the t r a n s f e r of labour i t
encourage
i s not proposed t o d i s t u r b the
present arrangements under which grants are now being paid i n
areas w i t h e x c e p t i o n a l unemployment*
IV.
In
Qrder
EXPORT CREDITS.
to stimulate export trade, the original
Export Credits scheme was introduced in 1920.
The terms
under which this scheme is operated have been altered from
time to time, i n order to make them of more practical
convenience to manufacturers and exporters.
Under existing
l e g i s l a t i o n no new guarantees could have been given after
September of next year, and uncertainty as to whether the
scheme would be continued would undoubtedly have deterred
firms from undertaking business with that assistance in the
coming year.
The Government have already announced t h e i r
intention of continuing this help to our export trade
for
a further period of two years, and a B i l l continuing the
scheme w i l l be introduced in the House of Commons at once.
V.
LAND DRAINAGE.
(A) ENGLAND AND WALES.
By an extension of the f i e l d of Land Drainage and
a l l i e d schemes assisted out of state
funds i t would be
practicable to divert a number of unemployed miners and
ethers to useful works of an urgent nature.
The Ministry of Agriculture has a waiting l i s t of
such schemes - including those which are known as the
"calamity" cases in Essex which arose as the result of
abnormal tides in January 1928.
To do this would Involve some relaxation of
conditions
which govern grants under the existing programme of the
Ministry.
The Government grant in such cases should be 50 per
cent, of approved cost of the works.
The necessary funds might be provided by releasing a
sum not exceeding £100,000 out of the balance of £580,COO
which remains at present earmarked for the O^se Scheme out
of the o r i g i n a l £1,000,000 provided for drainage works as
from A p r i l 1926.
1
(B)
SCOTLAND.
From 1921 to 1926 the Board of A g r i c u l t u r e
Scotland administered a scheme f o r the r e l i e f
for
of unemploy­
ment in d i s t r i c t s where serious unemployment e x i s t e d .
works e l i g i b l e
Ib
f o r grant included f i e l d ,
The
a r t e r i a l and h i l l
drainage, the p r o v i s i o n and improvement of farm w a t e r ­
s u p p l i e s , and the improvement of p r i v a t e l y owned farm
roads.
Labour r e q u i r e d t o be obtained through the Labour
Exchange, or I f
obtained elsewhere had to be composed to
the extent of at l e a s t
75% of e x - s e r v i c e men.
During that p e r i o d the amount of grant paid by the
Board was £124,270 and the number of unemployed men
engaged on schemes was about 13,000.
The Board now propose that a scheme s i m i l a r to that
which was in o p e r a t i o n from 1921-1926 should be a u t h o r i s e d .
The Board r e p o r t that the scheme could be put Into
o p e r a t i o n at once and would not e n t a i l the employment of
additional staff
to administer i t .
a d d i t i o n t o the r e l i e f
Further, and i n
of unemployment which i t would a f f o r d
i n both urban and r u r a l areas, I t weuld be a t t r a c t i v e
agriculturists
to
g e n e r a l l y , while State expenditure would be
safeguarded in t h a t an applicant would be r e q u i r e d t o
expend a sum at l e a s t equal t o the amount of the grant
offered
to him.
The Board a n t i c i p a t e that about £100,000 would be
spent under the scheme, £50,000 being Exchequer Grant and
that about ',b% of
r
t h i s sum would be spent on wages mostly
t o unemployed persons.
VI.
Electricity
Supply.
The Committee have r e c e i v e d from the Minister
of Transport the f o l l o w i n g statement of the progress
made with schemes under the E l e c t r i c i t y
(Supply) A c t , 1926:-
The Table appended to t h i s Report shows
the progress made w i t h Schemes under the A c t .
I t w i l l be seen that four Schemes have already
been adopted by the Board covering the areas of
Central Scotland, South-East England, Central
England, and North-West and North Yfales.
These
four Schemes cover an area of over 30,000 square
m i l e s and a population of 27,000,000 p e o p l e .
The
t o t a l c a p i t a l expenditure estimated t^ be Involved
on transmission l i n e s and transforming s t a t i o n s
is
n e a r l y £17,000,000.
Contracts have already been entered i n t o by the
Central E l e c t r i c i t y Board to the f o l l o w i n g amounts:Central Scotland
South-Bast England
£1,095,170
*
£1,614,672
North-West and North Wales
TOTAL
In a d d i t i o n ,
48,337
£2,758,179
expenditure has a c t u a l l y been
incurred or approved in connection with the
s t a n d a r d i s a t i o n of frequency amounting to n e a r l y
£200,000.
I t w i l l be seen that rapid progress has been
made i n the l a s t two y e a r s .
-
The p l a c i n g o f c o n t r a c t s ,
t o which r e f e r e n c e has just been made, i s a substantial
c o n t r i b u t i o n towards c r e a t i n g employment i n the
industries
affected.
711.
FOHEST HOLDINGS.
2he L i n i s t e r of Labour, supported by the Minister
of Health, urged the acceptance of the recorantjidation
of the Jishex Committee's I;epert i n respect of t he
extension of Forest Holdings.
Mr. chamberlain pointed
out that this proposal was valuable as making specific
provision for married men.
No decision was reached
and the matter i s referred to the Gabinet.
The Committee approved a l l the above schemes
(with the exception of that dealing with jrerest Holdings
which was reserved for further consideration by the
Cabinet) and rejected a l l other proposals
at the present time.
They decided that no p a r t i c u l a r
public work should be specified and that no d e f i n i t e
estimate should be given of the amount of employment
forthcoming
from the application of these various
measures.
Signed on behalf of the Committee
WINSTON S. CHURCHLLL,
CHAIELIAN.
Whitehall Gardens, S.W. 1.,
6th November, 1928.
APPENDIX.
Table of Schemes under the E l e c t r i c i t y
Area
(Square
miles)
(Supply) A c t , 1926.
Total Capital
'
Expenditure by
Central E l e c t r i c i t y Board en.
Transmission
Lines and t r a n s ­
forming Stations.
(As estimated by
Electricity
Commission).
Popula­
t i o n at
1921
Census.
£.
T o t a l value of
Contracts entered
i n t o by Central
E l e c t r i c i t y Board
i n respect of
each Scheme up
to d a t e .
tral Scotland
t r i c i t y Scheme,
J7. (Adopted 29th
1927)
4,980
3,761,200
ath East England
a c t r i c i t y Scheme,
27. (Adopted 15th
1928).
8,820
11,392,561
prtral England
[ectricity Scheme,
ISO. (Adopted 22nd
I, 1928).
7,311
5,218,146
3,031,181
jrith West and
(rjth Wales
[ectricity Scheme,
(Adonted 12th
jtooer, 1 9 2 8 ) .
9,082
6,980,925
4,204,455
48,337
30,201
27,352,832
£17,005,894
£2,758,179
1,900,000
1,095,170
7,870,258*
1,614,672
I,
Ifuary,
TOTAL
In a d d i t i o n expenditure a c t u a l l y incurred, or approved
in connection with the standardisation of frequency
amounts to £188,138.
-11­
*This includes the sum of £1,723,203 estimated by the
E l e c t r i c i t y Commissioners as the necessary c a p i t a l
expenditure of the London and Home Counties Joint
E l e c t r i c i t y A u t h o r i t y under the Scheme.
1