(c) crown copyright Catalogue Reference:CAB/65/25/1 Image Reference:0001 THIS DOCUMENT IS THE PROPERTY OP HIS BRITANNIC MAJESTY'S GOVERNMENT " " ' Printed for the War Cabinet. January 1942. SECRET. Copy N o . W . M . (42) 1st Conclusions. TO B E K E P T UNDER LOCK A N D KEY. I t is requested that special care m a y be taken to ensure the secrecy of this document. WAR CABINET 1 (42). CONCLUSIONS of a Meeting of the War Cabinet held at 1 0 Downing S. W. 1 , on Thursday, January 1 , 1 9 4 2 , at 1 2 NOON. Street, Present: Chair). 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 T h e R i g h t H o n . S i r JOHN ANDERSON, T h e R i g h t H o n . ANTHONY E D E N , M . P . , S e c r e t a r y of S t a t e f o r Foreign M . P . , L o r d P r e s i d e n t of t h e Council. Affairs. T h e R i g h t H o n . A . GREENWOOD, M . P . , T h e R i g h t H o n . S i r K I N G S L E Y W O O D , 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 . Minister without Portfolio. The Right 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. T h e following w e r e also p r e s e n t : The Rt. Hon. Sir EARLE PAGE, M . P . , Special Envoy from the Government of t h e C o m m o n w e a l t h of A u s t r a l i a (Items 1 - 5 ) . T h e R i g h t H o n . H E R B E R T M O R R I S O N , T h e R i g h t H o n . V I S C O U N T CRANBORNE, M . P . , S e c r e t a r y of S t a t e for t h e S e c r e t a r y of S t a t e for D o m i n i o n 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 Affairs. Home Security. T h e R i g h t H o n . L . S. A M E R Y , M.P., S e c r e t a r y of S t a t e for I n d i a a n d S e c r e t a r y of S t a t e for B u r m a . T h e 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 . The Right SINCLAIR, Hon. Bt., S t a t e for A i r . The Hon. Sir Sir M.P., of CADOGAN, G e n e r a l S i r A L A N BROOKE, C h i e f of t h e ARCHIBALD 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 i r Chief M a r s h a l S i r WILFRID FREEMAN, V i c e - C h i e f of t h e A i r Staff (Items 1 - 5 ) . I m p e r i a l G e n e r a l Staff (Items 1 - 5 ) . V i c e - A d m i r a l H . R . MOORE, V i c e - C h i e f of N a v a l Staff (Items 1 - 5 ) . Secretariat. Sir EDWARD BRIDGES. Major-General Sir HASTINGS ISMAY. [23304] Secre- t a r y of S t a t e f o r t h e Colonies. Captain the Right Hon. H . D. MARGESSON, M . P . , S e c r e t a r y of S t a t e for W a r . T h e R i g h t H o n . B R E N D A N BRACKEN, M . P . , M i n i s t e r of I n f o r m a t i o n . Secretary ALEXANDER T h e R i g h t H o n . LORD MOYNE, Mr. W . D. WILKINSON. Mr. L . F. BURGIS. 44 WAR CABINET 1 (42). CONTENTS. Minute No. Subject. Page 1. Naval, Military and Air Operations Air Operations. Naval Operations: Shipping losses. Military Operations: Libya. F a r Bast. Russia. 2. Air Raids .... .... Casualties and damage. 3. Timor 3 4. U.S.S.R Visit of t h e Secretary of S t a t e for Foreign Affairs to Moscow. 4 5. U.S.S.R. Supply of electrical equipment. 4 6. " C o n s i d e r a t i o n " for L e a s e - L e n d A i d .... 3 .... .... .... .... .... .... .... 3 4 l^akMiHfeuqfe;; y ,mdD The Chiefs of Staff g a v e t h e f o l l o w i n g i n f o r m a t i o n andfiAte ^ b'. a m p l i f i c a t i o n of Cabinet- W a r R o o m R e c o r d s Nos. 8 4 9 - 8 5 1 : — in 5 2 1 : . S u m m a r y - of a i r c r a f t losses since t h e 2 9 t h December, 1941. ! (Previous Reference:' WM. 3(41) 138th Conclusions, Minute 1.) 0 , Home Theatre^b JW. Enemy— 9 destroyed. , 7 probable. 6 possible. Our Own— 3 destroyed. ' Middle East—: Enemy— 9 destroyed. Our Own— 6 destroyed. Air i Operations. " ,, O u r losses i n the H o m e T h e a t r e h a d t a k e n place d u r i n g t h e d a y l i g h t a t t a c k on t h e w a r s h i p s a t B r e s t o n the 3 0 t h December, t h e r e s u l t s of w h i c h h a d n o t been observed. T h e e n e m y ' s a n t i - a i r c r a f t fire h a d been h e a v i e r t h a n on a n y e a r l i e r occasion. ' Naval T h e s h i p p i n g losses d u r i n g t h e p r e v i o u s four d a y s a m o u n t e d to Operations. a b o u t 9,000 tons. T h i s i n c l u d e d o n e B r i t i s h vessel of 1,500 tons Shipping Losses. a n d ! t w o U n i t e d S t a t e s vessels. T h e t o t a l s h i p p i n g losses for t h e m o n t h w e r e e s t i m a t e d , on t h e b a s i s of t h e a v a i l a b l e r e p o r t s , a t 215,000 t o n s . T h e r e w o u l d be some losses i n t h e F a r E a s t e r n T h e a t r e to a d d t o t h i s . Military T h e r e h a d b e e n t a n k b a t t l e s i n t h e n e i g h b o u r h o o d of J e d a b y a Operations. o n t h e 2 8 t h December a n d t h e 3 0 t h December. T h e c a s u a l t i e s on Libya. b o t h sides w e r e likely t o be heavy. O w i n g t o t h e l o n g l i n e of c o m m u n i c a t i o n s , w e could a t p r e s e n t only m a i n t a i n c o m p a r a t i v e l y , small a r m o u r e d f o r m a t i o n s a t t h e front, b u t it w a s h o p e d t h a t t h e s u p p l y facilities w o u l d be i m p r o v e d before long. I n t h e f r o n t i e r a r e a t h e a s s a u l t on B a r d i a h a d b e g u n t h e previous morning. Par East. T h e s i t u a t i o n of M a n i l a a p p e a r e d to be g r a v e . T h e r e w a s l i t t l e c h a n g e in M a l a y a . O n t h e E a s t C o a s t of M a l a y a a small p a r t y of J a p a n e s e h a d p e n e t r a t e d s o u t h w a r d s t o w a r d s K u a n t a n , w h e r e they W£re b e i n g e n g a g e d . O n t h e W e s t C o a s t w e w e r e in c o n t a c t w i t h t h e e n e m y south of I p o h . Russia. . W e h a d l i t t l e n e w s beyond p r e s s r e p o r t s . T h e R u s s i a n offen­ sive i n t h e C r i m e a a p p e a r e d t o be d e v e l o p i n g s a t i s f a c t o r i l y . On t h e main Russian front the Germans were gradually withdrawing, u n d e r cover of r e a r g u a r d a c t i o n s . i; a.-::u; Air Raids. Casualties and Daniage. (Previous Reference: W.M. (41) 136th T h e W a r C a b i n e t t o o k n o t e of t h e above s t a t e m e n t s . 2. The Minister of Home Security s a i d t h a t on t h e n i g h t of t h e 2 9 t h - 3 0 t h December t h e r e h a d been h e a v i e r b o m b i n g t h a n of lafcel T h e m a i n a t t a c k h a d been i n t h e N o r t h - E a s t c o a s t a l a r e a , w i t h m i n o r i n c i d e n t s i n the M i d l a n d s . C a s u a l t i e s h a d been 8 killed, 24 seriously i n j u r e d a n d 68 s l i g h t l y i n j u r e d . T h e W a r .Cabinet took n o t e of t h e above s t a t e m e n t . Conclusions, ,Minute 9.) - , ' , ' ; - " ' ­ Timor. (Previous Reference: W.M. (41) 137th Conclusions, Minute 5.) 3. The Secretary of State for Foreign Affairs r e p o r t e d thje l a t e s t developments i n t h e T i m o r i n c i d e n t . M . S a l a z a r h a d d e r i v e d t h e i m p r e s s i o n t h a t , if P o r t u g u e s e . , r e i n f o r c e m e n t s w e r e s e n t ( a n d t h e y i n t e n d e d to send 700 m e n , w h i c h w a s twice t h e size of t h e A u s t r a l i a n - D u t c h c o n t i n g e n t ) w e should be p r e p a r e d t o w i t h d r a ^ o u r forces. I t h a d been a s c e r t a i n e d t h a t t h e D u t c h G o v e r n m e n t w e r e p r e p a r e d t o w i t h d r a w t h e i r t r o o p s o n t h e a r r i v a l of t h e " P o r t u g u e s e . "'' "'-'';-' --'' J [233041 B 2 Sir Earle Page s a i d t h a t t h e A u s t r a l i a n G o v e r n m e n t w e r e n o t p r e p a r e d to s a y u n c o n d i t i o n a l l y t h a t t h e y w o u l d ' w i t h d r a w t h e i r t r o o p s on t h e a r r i v a l of t h e P o r t u g u e s e . C o u l d 700 P o r t u g u e s e be r e g a r d e d as a n a d e q u a t e g a r r i s o n i n all c o n t i n g e n c i e s ? The Ghief of the Imperial General Staff s a i d t h a t i t w o u l d t a k e some t i m e for A u s t r a l i a n a n d D u t c h forces to g e t b a c k t o D i l l i , once t h e y h a d been withdrawn. oca\\ 1 The Secretary of State for Foreign A ffairs s a i d t h a t We w e r e p l a n n i n g to r e c a l l t h e B r i t i s h A m b a s s a d o r i n L i s b o n for consUlta­ t i o n s i n L o n d o n . A t the s a m e t i m e , t h e P o r t u g u e s e w e r e p l a n n i n g t o r e c a l l t h e i r A m b a s s a d o r in t h i s c o u n t r y for c o n s u l t a t i o n s i n L i s b o n . B o t h A m b a s s a d o r s should n o t be a b s e n t f r o m t h e i r p o s t s simultaneously; he had therefore instructed Sir Ronald Campbell o n l y t o come h o m e if D r . M o n t e i r o ' s v i s i t to L i s b o n w e r e p u t off. T h e Foreign Secretary added t h a t he doubted whether the A u s t r a l i a n G o v e r n m e n t h a d fully a p p r e c i a t e d t h e p r a c t i c a l d i s a d v a n t a g e s w h i c h we s h o u l d i n c u r if t h e r e w e r e a r u p t u r e of r e l a t i o n s between ourselves a n d P o r t u g a l . I t m i g h t b e d e s i r a b l e to send a communication t o the A u s t r a l i a n Government on this point. The W a r C a b i n e t I n v i t e d t h e S e c r e t a r y of S t a t e for D o m i n i o n Affairs, S i r E a r l e P a g e a n d a r e p r e s e n t a t i v e of t h e F o r e i g n Office to c o n f e r o n t h i s a s p e c t of t h e s i t u a t i o n . U.S.S.R. Visit of the Secretary of S t a t e for Foreign Affairs to Moscow. U.S.S.R. Supply of Electrical Equipment. 4. The Secretary of State for Foreign Affairs made a state­ m e n t o n h i s v i s i t t o Moscow. A r e c o r d of t h i s s t a t e m e n t i s c o n t a i n e d i n t h e S e c r e t a r y ' s S t a n d a r d F i l e of W a r C a b i n e t C o n c l u s i o n s . 5. The Minister of Labour and National Service r a i s e d t h e q u e s t i o n of t h e o r d e r of p r i o r i t y t o be g i v e n t o c e r t a i n o r d e r s for h e a v y e l e c t r i c a l e q u i p m e n t , w h i c h h a d been p l a c e d w i t h t h e t r a d e by t h e Soviet T r a d e D e l e g a t i o n . The Secretary of State for Foreign Affairs said t h a t t h i s . m a t t e r h a d been r a i s e d a t t h e A l l i e d S u p p l i e s C o m m i t t e e o n t h e p r e v i o u s d a y . T h e o r d e r involved some 10,000 t o n s of steel a n d m i g h t m e a n c u t t i n g d o w n t h e a l l o c a t i o n s of steel m a d e to o u r o w n s u p p l y p r o g r a m m e s . T h e M i n i s t r y of S u p p l y h a d been a s k e d as a first s t e p t o e x p l a i n t o t h e Soviet T r a d e D e l e g a t i o n t h e difficulties of p r o v i d i n g t h e m a t e r i a l involved. The W a r C a b i n e t I n v i t e d t h e 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 t o d i s c u s s t h e m a t t e r w i t h Colonel L l e w e l l i n . 6. The Minister without Portfolio reminded the W a r Cabinet tlon " for Leaseof t h e p o s i t i o n i n t h i s m a t t e r . 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 d i d Lend Aid. not intend to ask for payment for articles passing t o us under the (Previous Eeference: W.M. (41) 81st Conclusions, Minute 1.) L e a s e - L e n d P r o c e d u r e . T h e y p r o p o s e d , however, t h a t A r t i c l e V I I of t h e p r o p o s e d L e a s e - L e n d A g r e e m e n t s h o u l d p r o v i d e t h a t t h e t e r m s a n d c o n d i t i o n s u p o n w h i c h t h i s c o u n t r y received L e a s e - L e n d a i d f r o m t h e U n i t e d S t a t e s o f A m e r i c a s h o u l d i n c l u d e p r o v i s i o n for a g r e e d a c t i o n to p r o m o t e a d v a n t a g e o u s economic r e l a t i o n s b e t w e e n t h e t w o c o u n t r i e s a n d for t h e b e t t e r m e n t of w o r l d - w i d e economic r e l a t i o n s . T h e U n i t e d S t a t e s Grovernment w i s h e d t h e f o r m of w o r d s used i n t h i s r e s p e c t t o i n c l u d e a p r o v i s i o n a g a i n s t d i s c r i m i n a t o r y t r e a t m e n t i n i n t e r n a t i o n a l commerce a n d h a d m a d e it c l e a r t h a t by t h a t p h r a s e t h e y i n t e n d e d t h a t w e should c o m m i t ourselves t o t h e e v e n t u a l a b o l i t i o n of I m p e r i a l P r e f e r e n c e . T h i s m a t t e r h a d , of course, been touched on i n A r t i c l e I V of the A t l a n t i c C h a r t e r . T h e w o r d s t h e r e used h a d , however, been s a f e g u a r d e d by " d u e r e s p e c t for . . . . e x i s t i n g o b l i g a t i o n s . " T h e r e v i s e d d r a f t of A r t i c l e V I I of t h e p r o p o s e d L e a s e - L e n d A g r e e m e n t h a n d e d t o o u r A m b a s s a d o r a t W a s h i n g t o n on t h e 2 n d D e c e m b e r r e f e r r e d t o ' ' t h e e l i m i n a t i o n of all forms of d i s c r i m i ­ natory t r e a t m e n t in international c o m m e r c e ' ' and to '' the r e d u c t i o n of tariffs a n d o t h e r t r a d e barriers.'"' T h i s m a t t e r h a d been d i s c u s s e d on t h e 2 3 r d December a t a m e e t i n g of t h e C o m m i t t e e on E c o n o m i c A s p e c t s of E e c o n s t r u c t i o n Problems.* T h e C o m m i t t e e h a d also h a d before t h e m c e r t a i n t e l e g r a m s e x p l a i n i n g i n some d e t a i l the i n t e r p r e t a t i o n w h i c h t h e U n i t e d S t a t e s a u t h o r i t i e s p l a c e d on t h e revised d r a f t of Article V I I . A t this meeting Ministers h a d agreed that a telegram should be s e n t t o o u r A m b a s s a d o r i n W a s h i n g t o n t o t h e effect t h a t difficulties w e r e seen i n a c c e p t i n g t h e revised d r a f t of A r t i c l e V I I ; b u t t h a t t h e case m i g h t b e different if a n a g r e e d i n t e r p r e t a t i o n of the a r t i c l e could be a r r i v e d a t w h i c h could be m a d e p u b l i c if t h e need arose. I t h a d been s u g g e s t e d t h a t o u r A m b a s s a d o r should discuss w i t h the P r i m e M i n i s t e r t h e p r a c t i c a b i l i t y of s e c u r i n g such an a g r e e d i n t e r p r e t a t i o n . A f u r t h e r t e l e g r a m h a d n o w been received f r o m W a s h i n g t o n (No. 6105 of t h e 2 9 t h December, 1941) i n d i c a t i n g t h a t t h e P r i m e M i n i s t e r h a d n o t been able t o d e a l w i t h t h e m a t t e r , o w i n g t o t h e p r e s s u r e of o t h e r business. T h i s t e l e g r a m also r e p o r t e d t h a t M r . H u l l h a d a s k e d w h e n w e s h o u l d be able t o r e p l y , since h e w o u l d be obliged t o m a k e a s t a t e m e n t o n t h e m a t t e r before C o n g r e s s not l a t e r t h a n m i d - J a n u a r y , w h e n it w a s p r o p o s e d to a s k C o n g r e s s to vote f u r t h e r L e a s e - L e n d a p p r o p r i a t i o n s . T h e M i n i s t e r w i t h o u t P o r t f o l i o s a i d t h a t a f u r t h e r m e e t i n g of M i n i s t e r s h a d been held a t s h o r t n o t i c e on t h e p r e v i o u s n i g h t . A f t e r some discussion, i t h a d been decided to t e l e g r a p h to t h e A m b a s s a d o r , for h i s p r i v a t e i n f o r m a t i o n , t h a t a f t e r c a r e f u l discussion h e r e between M i n i s t e r s i t w a s felt t h a t t h i s m a t t e r , on w h i c h d i v e r g e n t views w e r e held, m u s t a w a i t t h e P r i m e M i n i s t e r s r e t u r n before f u r t h e r i n s t r u c t i o n s could be s e n t to h i m ( L o r d H a l i f a x ) . The W a r C a b i n e t A g r e e d t h a t a t e l e g r a m s h o u l d be d e s p a t c h e d on t h e s e lines. Great George January Street, S.W. 1, 1942. 1, E.R.P. (41) 4th Meeting. W.M.(43) 1 s t CONCLUSIONS. (Confidential Record) THE VICE CHIEF OP NAVAL STAFF s a i d t h a t no l e s s than 130 w i r e l e s s s i g n a l s had "been s e n t out from t h e v e s s e l during t h e outward j o u r n e y o f t h e Prime M i n i s t e r ' s party. The a d v i c e of t h e Admiralty was t h a t an u n w a r r a n t a b l e r i s k would h e i n c u r r e d i f t h e r e were s i g n a l l i n g on a n y t h i n g l i k e t h i s s c a l e during t h e homeward p a s s a g e . I t was v e r y d e s i r a h l e t h a t w i r e l e s s silence s h o u l d he o b s e r v e d . The War C a b i n e t : I n v i t e d t h e Lord P r i v y S e a l and t h e F i r s t Lord of t h e Admiralty t o communicate w i t h t h e Prime M i n i s t e r t o t h e above effect. 35 Telegram d e s p a t c h e d TAUT No. 348. 3.1.42