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THIS DOCUMENT I S T H E P R O P E R T Y O PH I S BRITANNIC M A J E S T V S
Printed
for the War Cabinet.
February
GOVERNMENT
1940.
SECRET
Copy N o .
W.M. (40)
4 7 t h Conclusions.
TO
BE K E P T
UNDER
LOCK
AND KEY.
It is requested that special care may be taken to
ensure the secrecy of this document.
WAR
CABINET
47 ( 4 0 ) .
CONCLUSIONS
of a Meeting of the War Cabinet held at 10 Downing
S.W. 1, on Tuesday, February 20, 1940, at 1 1 - 3 0 A.M.
Street,
Present:
T h e R i g h t H o n . N E V I L L E C H A M B E R L A I N , M . P . , P r i m e M i n i s t e r (in the
Chair).
The R i g h t Hon. Sir J O H N SIMON, K . C ,
M . P , Chancellor of t h e E x c h e q u e r .
The Right Hon. VISCOUNT HALIFAX,
S e c r e t a r y of S t a t e for F o r e i g n
Affairs.
The R i g h t Hon. S i r SAMUEL HOARE,
Bt., M . P , L o r d P r i v y Seal.
A d m i r a l of t h e Fleet t h e R i g h t H o n .
LORD
CHATFIELD, Minister
for
Co­
o r d i n a t i o n of Defence.
The
Right
Hon. WINSTON
S.
C H U R C H I L L , M . P , F i r s t L o r d of t h e
Admiralty.
T h e R i g h t H o n . O L I V E R STANLEY, M . P ,
S e c r e t a r y of S t a t e for W a r .
The R i g h t Hon. Sir KINGSLEY WOOD,
M . P , S e c r e t a r y of S t a t e f o r A i r .
The
Right
Hon. LORD
HANKEY,
Minister without Portfolio.
T h e following w e r e also p r e s e n t :
The R i g h t Hon. Sir JOHN ANDERSON,
M . P , S e c r e t a r y of S t a t e f o r 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.
The Right Hon. ANTHONY EDEN, M.P.,
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.
The R i g h t Hon. ERNEST BROWN, M . P ,
Minister of Labour a n d National
Service (Item 1).
The Right Hon. LESLIE BURGIN, M . P ,
M i n i s t e r of S u p p l y (Item 1).
Sir
HORACE
J.
WILSON,
Permanent
Secretary to the Treasury.
Secretariat.
Sir EDWARD BRIDGES.
Captain A. D . NICHOLL, R . N .
Mr. W . D . WILKINSON.
M r . G. N . F L E M M I N G .
Mr. P . K . DEBENHAM.
[20864]
4l
WAR
CABINET
47
(40).
CONTENTS.
Minute
No.
Subject.
Page
1
M a n Power
...
...
...
...
...
Labour statistics.
Training.
Recruitment of women.
Schedule of reserved occupations.
Experience of the Ministry of Supply.
The employment of skilled, tradesmen in the army.
367
2
The Air Situation
370
3
The Naval Situation
Shipping losses.
371
4
The Military Situation
Western Front.
Finland.
371
5
Assistance to Finland ...
6
Scandinavia
...
...
...
...
...
Stoppage of traffic in Norwegian territorial waters.
7
Italy
Economic relations.
8
Roumania
...
...
...
...
...
Oil policy: supply of equipment and raw materials.
...
...
373
9
W a r Cabinet A r r a n g e m e n t s ...
...
...
374
...
...
...
...
...
372
...
...
372
372
...
...
367 Man Power.
(Previous
References:
W.M. (40) 17th
Conclusions,
Minute 1,
and 40th
Conclusions,
Minute 1.)
Labour
statistics.
1.
W . M . 4 7 (40)
T h e W a r C a b i n e t h a d before t h e m the following p a p e r s : —
(1) N o t e by t h e Chancellor of t h e Exchequer, covering a
M e m o r a n d u m by 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 ( W , P . (G.) (40) 46).
(2) N o t e by t h e C h a n c e l l o r of t h e E x c h e q u e r , covering a
M e m o r a n d u m b y t h e W a r Office a n d t h e M i n i s t r y of
S u p p l y ( W . P . (G.) (40) 49).
The Chancellor
of the Exchequer
said t h a t these p a p e r s
together c o n s t i t u t e d t h e first of t h e series of r e p o r t s w h i c h h e h a d
been i n v i t e d t o p r e p a r e on the m e a s u r e s in o p e r a t i o n , a n d those
proposed, to p r o m o t e a n i n c r e a s e i n m a n - p o w e r in t h e w a r
industries.
T h e Chancellor d r e w a t t e n t i o n t o the m a i n p o i n t s in t h e
p a p e r s . I t w o u l d be seen t h a t t h e M i n i s t e r of L a b o u r h a d discussed
t h e problems of s e c u r i n g t h e r e q u i r e d influx of labour i n t o t h e w a r
i n d u s t r i e s w i t h r e p r e s e n t a t i v e s of employers a n d employed in t h e
E n g i n e e r i n g i n d u s t r y . B o t h h a d shown a h e l p f u l a t t i t u d e , w h i c h
led the M i n i s t e r to conclude t h a t t h e r e should be for the m o m e n t
as little p u b l i c reference t o the q u e s t i o n as possible. Nevertheless,
employers m i g h t n o t a t p r e s e n t be d o i n g a s m u c h as possible in t h e
d i r e c t i o n of d i l u t i o n for f e a r of c a u s i n g friction w i t h t h e i r w o r k
people.
T h e Chancellor of t h e E x c h e q u e r s a i d t h e only comment h e
w i s h e d t o m a k e on t h e s e m e m o r a n d a w a s t h a t i t w a s d i s a p p o i n t i n g
t h a t t h e r e w a s no s t a t i s t i c a l m a t e r i a l a v a i l a b l e to i n d i c a t e w h a t
m e a s u r e of p r o g r e s s h a d been achieved by these m e a n s i n e x p a n d i n g
engineering employment.
I t m u s t be r e m e m b e r e d t h a t t h e
p r o g r a m m e s r e q u i r e d a n e x p a n s i o n in t h e e n g i n e e r i n g i n d u s t r i e s
alone of 816,000 p e r s o n s b y J u l y - S e p t e m b e r 1 9 4 0 — t h a t is to say,
from 1,300.000 p e r s o n s to 2,116,000. T h e y h a d no m e a s u r e of w h a t
h a d been achieved. I t m i g h t be t h a t t h e W a r C a b i n e t w o u l d w i s h
h i m to see w h a t could be done to fill t h i s g a p in t h e i r s t a t i s t i c a l
knowledge.
The Minister of Labour s a i d t h a t a n exact p i c t u r e of n u m b e r s
employed, in t h e g r o u p s i n t o w h i c h t h e i n s u r e d p o p u l a t i o n w a s
divided, w a s p r o v i d e d by t h e e x c h a n g e of books w h i c h took p l a c e
every J u l y . I n o t h e r m o n t h s t h e y could only e s t i m a t e c h a n g e s i n
e m p l o y m e n t by h a v i n g r e g a r d t o k n o w n changes in t h e n u m b e r of
unemployed registered monthly and to the changes anticipated in
t h e t o t a l i n s u r e d p o p u l a t i o n over the year. These e s t i m a t e s h a d
often been belied by the event, even i n peace time. To-day t h e
difficulties in t h e w a y of e s t i m a t i n g c h a n g e s i n e m p l o y m e n t w e r e
very m u c h g r e a t e r . A l a r g e n u m b e r of i n s u r e d men h a d been called
u p ; u n k n o w n n u m b e r s of p e r s o n s e i t h e r not p r e v i o u s l y i n s u r e d , o r
w h o h a d left i n s u r e d employment, were e n t e r i n g i n s u r e d employ­
m e n t ; a n d t h e r e h a d been a n u n k n o w n a m o u n t of t r a n s f e r e n c e f r o m
one i n d u s t r y to a n o t h e r w i t h i n t h e field of i n s u r e d employment.
F o r these reasons, i t w a s q u i t e impossible to p r e p a r e a m o n t h l y
e s t i m a t e of t h e c h a n g e s i n e m p l o y m e n t i n p a r t i c u l a r i n d u s t r i e s o n
t h e b a s i s of t h e m a t e r i a l a t p r e s e n t available. A t t h e outset of t h e
l a s t w a r the B o a r d of T r a d e L a b o u r Division h a d called for a r e t u r n
of e m p l o y m e n t from a n u m b e r of employers. T h i s r e t u r n , k n o w n
as the " Z 8 " r e t u r n , h a d been m a d e a t q u a r t e r l y i n t e r v a l s ,
b e g i n n i n g in 1914; i t w a s d i s c o n t i n u e d i n 1920. I t h a d covered a l l
G o v e r n m e n t e s t a b l i s h m e n t s ; b u t in the case of o t h e r e s t a b l i s h m e n t s ,
only a s a m p l e of e m p l o y e r s , of v a r y i n g completeness in different
i n d u s t r i e s , h a d m a d e r e t u r n s . T h e n a t u r e of the r e t u r n h a d been
s o m e w h a t simplified i n the course of the w a r . E v e n a t t h e b e g i n n i n g
of 1917, however, i t h a d called for replies t o 2 3 q u e s t i o n s g r o u p e d
u n d e r 9 different h e a d i n g s .
[20864]
"
B 2
31
The Prime Minister s a i d t h a t w h a t t h e M i n i s t e r of L a b o u r h a d
said disclosed a serious deficiency i n o u r i n f o r m a t i o n .
I t was
essential t h a t we should h a v e e x a c t k n o w l e d g e of w h a t w a s
h a p p e n i n g . W e o u g h t to k n o w by h o w m u c h t h e e n g i n e e r i n g labour
h a d e x p a n d e d ; from w h i c h i n d u s t r i e s t h i s a d d i t i o n a l labour h a d
been d r a w n ; a n d in w h i c h i n d u s t r i e s pools of labour, w h i c h could be
d r a w n upon, remained.
,.
The Lord Privy Seal s a i d t h a t t h e need for such r e t u r n s h a d
become p l a i n w h e n the M i n i s t e r i a l C o m m i t t e e on E c o n o m i c P o l i c y
h a d been d i s c u s s i n g L o r d S t a m p ' s M e m o r a n d u m on o u r N a t i o n a l
R e s o u r c e s i n r e l a t i o n to o u r W a r Effort. A n o t h e r p o i n t on w h i c h
i n f o r m a t i o n w a s sadly deficient w a s the level of labour e a r n i n g s , as
opposed t o w a g e r a t e s .
The Minister of Labour s a i d t h a t he believed t h a t t h e M i n i s t e r
of S u p p l y h a d the necessary p o w e r s t o collect t h i s i n f o r m a t i o n , a n d
i t m i g h t be desirable for t h e M i n i s t r y of L a b o u r to act a s the a g e n t s
of t h e M i n i s t e r of S u p p l y i n t h i s m a t t e r . H i s a d v i s e r s took t h e
view, however, t h a t t h e s t a t i s t i c s w o u l d only be of value if they w e r e
compiled on a n o c c u p a t i o n a l basis, so t h a t they w o u l d be able to
locate, for e x a m p l e , t h e skilled fitters employed in w o r k s not
e n g a g e d in e n g i n e e r i n g p r o d u c t i o n u p a n d down t h e c o u n t r y . On
the o t h e r h a n d , he believed t h a t , a p a r t from e n a b l i n g M i n i s t e r s t o
a n s w e r P a r l i a m e n t a r y Questions, t h e Z 8 r e t u r n in t h e l a s t w a r h a d
not p r o v e d of m u c h value. I n a n y event, a s i m p l e r r e t u r n t h a n
Z 8 w o u l d be more s u i t a b l e .
The Chancellor
of the Exchequer
agreed t h a t only a simple
r e t u r n , w h i c h w o u l d give c o m p a r a b l e r e s u l t s from m o n t h to m o n t h ,
w o u l d be r e q u i r e d ; b u t t h e scope of the r e t u r n w a s a p r a c t i c a l
q u e s t i o n w h i c h would be b e t t e r discussed a t a m e e t i n g called for
that purpose.
Training.
I n a g e n e r a l discussion on t r a i n i n g of labour for skilled
e m p l o y m e n t i n t h e e n g i n e e r i n g i n d u s t r i e s , t h e following w e r e t h e
p r i n c i p a l p o i n t s m a d e :—
(a) Raising semi-skilled
men to the ranks of fully
skilled.
A t t e n t i o n w a s d r a w n to t h e i m p o r t a n c e of p r o v i d i n g
t r a i n i n g for t h i s p u r p o s e , a n d for r a i s i n g t h e fully skilled t o
even h i g h e r levels, a s c o n s t i t u t i n g t h e most economical m e a n s
for p r o v i d i n g t h e m e n r e q u i r e d a n d as p r o v i d i n g a flow of
p r o m o t i o n w h i c h w o u l d m a k e for smooth w o r k i n g .
The Minister
of Labour e x p l a i n e d t h a t t h i s f o r m of
t r a i n i n g would r e q u i r e different i n s t r u c t o r s a n d different
m a c h i n e r y from t h a t available i n the G o v e r n m e n t t r a i n i n g
centres a n d t h a t i t could only be u n d e r t a k e n i n s i d e t h e w o r k s
themselves. H e h a d a l r e a d y d r a w n t h e a t t e n t i o n of t h e T r a d e s
U n i o n s a n d t h e E m p l o y e r s to t h e m a t t e r , a n d w a s g o i n g t o
discuss i t w i t h the E m p l o y e r s ' F e d e r a t i o n i n t h e coming week.
T h e r e w a s g e n e r a l a g r e e m e n t w i t h t h e view t h a t t h i s f o r m
of t r a i n i n g w a s p r i m a r i l y a m a t t e r for t h e employers, b u t t h a t
i t also r e q u i r e d t o be e n c o u r a g e d a n d o r g a n i z e d , a n d t h a t t h e r e
w a s t h e r e f o r e scope for G o v e r n m e n t a c t i o n i n t h e m a t t e r .
(b) Provision
of training
in Government
centres for
persons
already in
employment.
The Minister of Labour said t h a t t h e g r e a t bulk of those
w h o could be b r o u g h t i n t o these centres by p r e s e n t m e t h o d s h a d
a l r e a d y been secured, b u t t h a t t h e r e w e r e p l e n t y of m e n
employed in n o n - e s s e n t i a l t r a d e s w h o could be t r a i n e d for w o r k
of n a t i o n a l i m p o r t a n c e .
T h i s , however, w o u l d i m m e d i a t e l y
r a i s e difficulties of t h e scale of allowances t o be paid- t o them.
369 W . M . 47 (40)
222
& c , a n d h i s D e p a r t m e n t w a s e n g a g e d on c o n s i d e r i n g possible w a y s of overcoming these difficulties. T h e r e w a s g e n e r a l a g r e e m e n t w i t h t h e view t h a t i t w a s essential to make progress w i t h this matter. (c) The
use of the facilities
available
in Technical
Schools,
Approved
Schools and
Universities.
The Minister of Labour s a i d t h a t t h i s w a s being discussed w i t h t h e B o a r d of E d u c a t i o n . The Lord, Privy Seal s t r e s s e d t h e i m p o r t a n c e of m a k i n g t h e g r e a t e s t possible use of U n i v e r s i t i e s i n t h i s connection. The Secretary
of State for War s a i d t h a t h i s D e p a r t m e n t also w a s m a k i n g p l a n s to use T e c h n i c a l School facilities for t h e t r a i n i n g of skilled m e n r e q u i r e d by t h e A r m y , a n d asked for t h i s to be b o r n e in m i n d i n connection w i t h any f u r t h e r p r o p o s a l s w h i c h m i g h t be p u t f o r w a r d . (d) Training
generally.
The Minister
of Labour s a i d t h a t , as a r e s u l t of recent discussions, t h e T r a d e s U n i o n s h a d a d o p t e d a better a t t i t u d e in t h e m a t t e r a n d t h a t it w o u l d n o w be f a r easier to secure progress. Recruitment of
women.
A t t e n t i o n w a s d r a w n to t h e s t a t e m e n t , i n p a r a g r a p h 6 of t h e
M e m o r a n d u m by t h e M i n i s t e r of L a b o u r a t t a c h e d t o W . P . (G.) (40)
46, t o t h e effect t h a t it seemed t h a t t h e r e w a s " for t h e m o m e n t n o
g r e a t d e m a n d for women i n e n g i n e e r i n g , except in o c c u p a t i o n s for
w h i c h they a r e o r d i n a r i l y e m p l o y e d . "
The Minister
of Labour s a i d t h a t t h i s m e a n t t h a t firms were,
i n f a c t , able to find t h e women t h e y needed w i t h o u t a n y a s s i s t a n c e
from t h e G o v e r n m e n t . T a c t f u l m a n a g e r s were s e c u r i n g the employ­
m e n t of very l a r g e n u m b e r s of women, b u t i t w a s better n o t t o
a d v e r t i s e t h e f a c t too widely. Some delay h a d been caused by t h e
fact t h a t w a g e r a t e s for women h a d n o t yet been settled.
Schedule of
Reserved
Occupations.
The Prime Minister
asked w h e t h e r t h e r e w a s a risk t h a t , a s
m o r e m e n w e r e t a k e n for the A r m e d Forces, the s u p p l y of semi­
skilled men or of m e n available for t r a i n i n g would be depleted.
The Minister
of Labour s a i d t h a t t h i s r i s k existed.
The
Schedule, however, covered the lesser skilled men a s well as t h e
h i g h l y skilled men. T h e p r e s e n t a r r a n g e m e n t s were flexible, a n d
p e r m i t t e d of a d j u s t m e n t s being m a d e by a d m i n i s t r a t i v e a c t i o n as
r e q u i r e d , t h r o u g h t h e m a c h i n e r y of the M a n - P o w e r Committee. H e
t h o u g h t t h a t t h e b a l a n c e w a s b e i n g held evenly between the needs of
i n d u s t r y a n d of t h e A r m e d Forces.
Experience of
the Ministry of
Supply.
The Minister
of Supply expressed the same opinion.
The Minister, continuing, said t h a t there was general shortage
of skilled e n g i n e e r i n g l a b o u r in t h e sense t h a t probably every b i g
m u n i t i o n f a c t o r y could u s e its m a c h i n e r y more fully a n d secure
i n c r e a s e d p r o d u c t i o n if m o r e m e n w e r e available. F o r example, a
s h o r t a g e of 2,000 m e n h a d been r e p o r t e d a t B a r r o w , a n d of 400 m e n
a t W o o l w i c h , w h i l e a t C o v e n t r y i t w a s difficult to get men to w o r k
on the n i g h t shift, w h e n t h e r e w a s d a y w o r k available for everybody
a n d w h e n t h e n i g h t p a y w a s a t t h e r a t e of t i m e a n d one-fifth
i n s t e a d of t i m e a n d o n e - t h i r d . T h e problem, a s he s a w it, w a s first
t o a s c e r t a i n t h e l a b o u r available, a n d t h e n to g e t i t i n t o t h e i n d u s t r y
w h e r e i t w a s w a n t e d . T h i s h a d to be t a c k l e d locally, a n d it w a s for
t h i s p u r p o s e t h a t P r o d u c t i o n Officers w e r e b e i n g a p p o i n t e d for t h e
v a r i o u s a r e a s , t h e i r t a s k being, in effect, t h a t of s e c u r i n g the a d o p ­
t i o n of m e a s u r e s of d i l u t i o n . T w o P r o d u c t i o n Officers h a d a l r e a d y
been a p p o i n t e d i n t h e m a c h i n e tool i n d u s t r y , a n d as a r e s u l t twelve
firms w h i c h h a d n o t pi'eviously been w o r k i n g a full n i g h t s h i f t w e r e
[ 2 0 8 6 4 ]
B 3
doing so. T h e g e n e r a l o p i n i o n of t h e M i n i s t r y ' s p r o d u c t i o n staff
w a s t h a t t h e r e w e r e n o i n s u p e r a b l e obstacles to d i l u t i o n , b u t t h a t i t
would be very difficult to q u i c k e n t h e p a c e of t h e progress. T h e
progressive s h o r t a g e of r a w m a t e r i a l s for p r o d u c i n g civilian
r e q u i r e m e n t s would, he hoped, e n c o u r a g e men to t r a n s f e r t o t h e
w o r k of w a r p r o d u c t i o n .
The employment of skilled
tradesmen in
the army.
The Secretary
of State for War said t h a t h e h a d n o t h i n g to
a d d to h i s M e m o r a n d u m ( A p p e n d i x " A " to W . P . (G.) (40) 49),
w h i c h he h a d p r e p a r e d only in o r d e r to show t h e efforts w h i c h were
being m a d e by t h e A r m y to remove a n y cause for criticism i n the
m a t t e r of i t s employment of skilled t r a d e s m e n .
T h e W a r C a b i n e t :—
(1) Took note of the two M e m o r a n d a on M a n P o w e r by the
Chancellor of t h e E x c h e q u e r ( W . P . (G.) (40) 46 a n d 49).
(2) A g r e e d t h a t p e r i o d i c r e t u r n s of e m p l o y m e n t should be
obtained, showing, if possible :—
(a) how f a s t t h e labour r e q u i r e m e n t s of t h e i n d u s t r i e s
affected by the Service p r o g r a m m e s were being­
met;
(b) from w h a t i n d u s t r i e s t h i s labour w a s being d r a w n ;
(c) in w h a t i n d u s t r i e s pools of labour still r e m a i n e d on
w h i c h f u r t h e r d r a f t s m i g h t be m a d e .
(3) I n v i t e d t h e Chancellor of t h e E x c h e q u e r , i n consultation
w i t h 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, the
M i n i s t e r of S u p p l y , a n d other M i n i s t e r s concerned, to
devise suitable a r r a n g e m e n t s for a c h i e v i n g these objects.
(4) I n v i t e d t h e Chancellor of t h e E x c h e q u e r , in consultation
w i t h t h e D e p a r t m e n t s concerned, t o i n v e s t i g a t e t h e
possibilities of a f u r t h e r development of facilities for
t r a i n i n g t h e skilled labour r e q u i r e d for w a r purposes,
a n d t o r e p o r t to the W a r C a b i n e t on the measures
a l r e a d y a d o p t e d for t h i s p u r p o s e , a n d on a n y f u r t h e r
m e a s u r e s proposed.
T h e
A i r
Situation.
(Previous
Eeferenee:
W.M. (40) 46th
Conclusions,
Minute 1.)
2. The Secretary of State for A ir s a i d t h a t t h e w e a t h e r d u r i n g
t h e p r e v i o u s 24 h o u r s h a d been most u n f a v o u r a b l e for a i r
o p e r a t i o n s . On t h e previous evening, however, t w o W h i t l e y a i r c r a f t
h a d flown to H e l i g o l a n d , one of w h i c h h a d r e p o r t e d t h r e e u n l i t
vessels, t h o u g h t to be destroyers, a b o u t 60 miles n o r t h of
Terschelling.
T h e o t h e r W h i t l e y , w h i c h h a d experienced cons i d e r a b l e A . A . fire, h a d located four heavy s h i p s in a position half
a mile t o t h e n o r t h - w e s t of H e l i g o l a n d . Twelve vessels h a d also been
s i g h t e d 60 miles n o r t h - w e s t of Terschelling, w i t h a n u m b e r of other
vessels i n t h e v i c i n i t y w h i c h were s h o w i n g l i g h t s . Ice e x t e n d e d from
B o r k u m t o a p o i n t a few miles west of H e l i g o l a n d a n d thence n o r t h ­
e a s t w a r d s . T h i s r e p o r t h a d not come t h r o u g h u n t i l 10 - 30 P . M . I t
i n d i c a t e d very difficult c o n d i t i o n s ; and, a s by t h a t t i m e w e a t h e r
c o n d i t i o n s i n t h i s c o u n t r y h a d considerably d e t e r i o r a t e d , i t h a d been
decided n o t to send o u t f u r t h e r a i r c r a f t .
Some enemy a i r a c t i v i t y h a d been r e p o r t e d over t h e N o r t h Sea
in the Shetland-Bergen area.
The Naval
Situation.
(Previous
Reference:
W.M. (40) 46th
Conclusions,
Minute 2.)
3. The First Lord of the Admiralty
said that H.M. submarine
Salmon a t 8-10 t h a t m o r n i n g h a d r e p o r t e d G e r m a n c a p i t a l ships
s t e e r i n g south from H e l i g o l a n d .
The Secretary of State for Air
o u t a bomber force to a t t a c k t h e
discussion a t t h a t m o m e n t between
Chief, Bomber C o m m a n d , a n d the
said t h a t the q u e s t i o n of s e n d i n g
G e r m a n b a t t l e fleet w a s u n d e r
t h e A i r Officer C o m m a n d i n g - i n A i r Staff.
C o n t i n u i n g , the First Lord of the Admiralty
said t h a t the
o u t w a r d - b o u n d N o r w e g i a n convoy, w h i c h h a d been d i v e r t e d t o
K i r k w a l l on t h e 18th F e b r u a r y , w o u l d proceed later i n t h e day.
S u i t a b l e w a r s h i p cover h a d been p r o v i d e d .
O n e s h i p a n d f o u r t r a w l e r s h a d r e p o r t e d being a t t a c k e d by
a i r c r a f t off the S c o t t i s h coast on the p r e v i o u s day, b u t these r e p o r t s
h a d n o t been confirmed.
Shipping losses.
T h e following s h i p p i n g losses h a d been r e p o r t e d d u r i n g t h e
previous twenty-four hours : —
S.S. Odysseus, G r e e k (4,577 tons), s u n k w i t h o u t w a r n i n g
off C a p e F i n i s t e r r e . C r e w saved.
S.S. Banderas,
S p a n i s h (2,140 tons), s u n k off C a p e
V i l l a n o , following a n explosion on t h e 1 8 t h F e b r u a r y . Seven
saved, 22 m i s s i n g .
T h e week h a s seen serious s h i p p i n g losses. F i v e B r i t i s h vessels,
t o t a l l i n g 40,000 tons, a n d 15 n e u t r a l vessels, t o t a l l i n g 50,000 tons,
h a d been sunk. T h i s c o m p a r e d w i t h p e a k weekly losses i n A p r i l
1917 a v e r a g i n g 200,000 tons.
A n intensive sweep a g a i n s t U - b o a t s w a s b e i n g c a r r i e d out by
s u b m a r i n e - h u n t i n g u n i t s i n t h e M o r a y F i r t h a r e a a n d e a s t of t h e
Orkneys.
T h e d a m a g e d t a n k e r Imperial
Transport,
escorted by a
destroyer, w a s in tow w e s t of t h e H e b r i d e s .
T h e B r i t i s h s h i p Hartismere
(5,498 tons), disabled since t h e
15th F e b r u a r y , h a d been t a k e n in t o w by t h e a r m e d m e r c h a n t
c r u i s e r H . M . S . Jervis Bay in the S o u t h e r n A t l a n t i c . She would be
escorted t o F r e e t o w n by a n u m b e r of F r e n c h w a r s h i p s a n d
submarines.
A m i n e h a d been e x p l o d e d by a coil t o w i n g ship n e a r t h e S u n k
L i g h t Vessel on t h e p r e v i o u s d a y .
T h e W a r C a b i n e t took note of t h i s s t a t e m e n t .
The Military
Situation.
4. The Secretly
of State for War s a i d t h a t t h e r e w a s n o t h i n g
t o r e p o r t from t h e W e s t e r n F r o n t .
(Previous
Reference:
W.M. (40) 46th
Conclusions,
Minute 3.)
Western Front.
Finland.
I n the K a r e l i a n I s t h m u s t h e R u s s i a n offensive a p p e a r e d to be
T h e F i n n i s h forces h a d w i t h d r a w n from c e r t a i n
slackening.
p o s i t i o n s on t h e e a s t e r n side of t h e I s t h m u s w i t h o u t R u s s i a n i n t e r ­
ference. N o r t h of L a k e L a d o g a , t h e d e f e a t of t h e 1 8 t h Soviet
D i v i s i o n h a d been completed, a n d considerable q u a n t i t i e s of
m a t e r i a l s h a d fallen i n t o F i n n i s h h a n d s . A n o t h e r Soviet division
h a d been d e f e a t e d on the S a l l a F r o n t .
Assistance to
Finland.
(Pi-evious
Reference:
W.M. (40) 45th
Conclusions,
Minute 1.)
5. The Secretary
of State for Foreign Affairs gave t h e W a r
C a b i n e t c e r t a i n f u r t h e r i n f o r m a t i o n on t h i s question.
The
discussion w h i c h took place is recorded 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 Conclusions.
Scandinavia.
6. I n connection w i t h t h e discussion on the p r e c e d i n g M i n u t e ,
the
First
Lord of the Admiralty
s a i d t h a t it w a s n o use t a k i n g
Stoppage of
seriously the n e u t r a l i t y of so-called n e u t r a l P o w e r s w h i c h w e r e
traffic in
a c t i n g u n d e r duress. V e r y m a n y N o r w e g i a n s h i p s h a d been sunk,
Norwegian
a n d t h e lives of m a n y N o r w e g i a n sailors h a d been lost. G e r m a n y
territorial
h
a d , however, e n t i r e l y i g n o r e d t h e N o r w e g i a n G o v e r n m e n t s p r o ­
waters.
tests.
T h e action of t h e N o r w e g i a n G o v e r n m e n t in e s c o r t i n g
(Previous
t
h
r
o
u
g
h
t h e i r t e r r i t o r i a l w a t e r s a s h i p c o n t a i n i n g 300 B r i t i s h
Reference:
W.M. (40) 46th p r i s o n e r s w a s n o t t h e act of a free agent.
Conclusions,
The Secretary of State for Air t h o u g h t t h a t t h e r e p l y m a d e by
Minute 9.)
t h e N o r w e g i a n Government, as r e p o r t e d in t h e P r e s s , w a s s i g n i ­
ficant, namely, t h a t they r e g a r d e d the Altmark
as a w a r s h i p a n d
t h a t t h e y s a w n o t h i n g w r o n g in a w a r s h i p w i t h p r i s o n e r s p a s s i n g
t h r o u g h t e r r i t o r i a l w a t e r s . I f t h a t w a s t h e i r a t t i t u d e , i t w a s one
w h i c h w e could not tolerate, a n d w e should say so openly.
The Prime
Minister
e n t i r e l y a g r e e d w i t h t h i s view.
The
N o r w e g i a n G o v e r n m e n t a p p a r e n t l y t h o u g h t t h a t , if a n y p a r t i c u l a r
a c t i o n w a s n o t expressly f o r b i d d e n by i n t e r n a t i o n a l law, i t w a s
l a w f u l . T h i s , a g a i n , w a s a p o i n t of view w h i c h w e could n o t accept.
The Secretary
of State for Foreign Affairs s a i d t h a t h e d i d
n o t d i s s e n t f r o m the view e x p r e s s e d by h i s colleagues, b u t he t h o u g h t
t h a t i t w a s i m p o r t a n t n o t t o i g n o r e t h e fact t h a t , while U n i t e d
S t a t e s o p i n i o n h a d accepted the a c t i o n w h i c h w e h a d t a k e n so f a r
vis-a-vis n e u t r a l s , t h a t o p i n i o n w a s very reserved in r e g a r d t o a n y
future action which we m i g h t take. H e had asked our Ambassadors
a t W a s h i n g t o n a n d R o m e t o t e l e g r a p h t h e i r j u d g m e n t of o p i n i o n
i n t h e c o u n t r i e s to w h i c h they were accredited.
T h e W a r C a b i n e t took note of t h i s s t a t e m e n t .
7. The Secretary
of State for Foreign Affairs said t h a t h e
h a d i n s t r u c t e d H i s M a j e s t y ' s A m b a s s a d o r i n R o m e to i n f o r m
C o u n t C i a n o of the a n s w e r w h i c h it w a s i n t e n d e d to give t o t h a t
d a y ' s P a r l i a m e n t a r y Question, a s k i n g w h e t h e r G e r m a n sea-borne
(Previous
e x p o r t s of coal to I t a l y w e r e liable to e x a m i n a t i o n . H e h a d a d d e d ,
Reference:
for t h e A m b a s s a d o r ' s p r i v a t e i n f o r m a t i o n , t h a t t h e d a t e w h i c h w e
W.M. (40) 46th h a d i n m i n d for t h e s t o p p a g e of t h e G e r m a n coal e x p o r t s w a s t h e
Conclusions,
1st M a r c h , unless t h e A m b a s s a d o r felt t h a t convincing r e a s o n s
Minute 6.)
e x i s t e d for g i v i n g t h e I t a l i a n G o v e r n m e n t longer notice ( F o r e i g n
Office t e l e g r a m No. 97 to Rome).
S i r P e r c y L o r a i n e h a d r e p l i e d t h a t , in h i s opinion, t h e
1st M a r c h w a s a reasonable d a t e . H e r e g a r d e d t h e consequences for
I t a l y , b o t h economic a n d p o l i t i c a l , as exceedingly g r a v e . A s r e g a r d s
the economic consequences, S i r P e r c y L o r a i n e s u b m i t t e d t h a t i t
w o u l d be v e r y u n d e s i r a b l e for British coal e x p o r t s to I t a l y t o be
s t o p p e d (owing to t h a t c o u n t r y ' s i n a b i l i t y to p r o v i d e the necessary
f o r e i g n exchange) a t t h e same d a t e a s t h e s t o p p a g e of G e r m a n sea­
borne coal. M e a n s o u g h t t o be f o u n d of c o n t i n u i n g our coal e x p o r t s
to I t a l y for, say, a m o n t h a f t e r t h e s t o p p a g e of G e r m a n coal e x p o r t s
to I t a l y .
Italy.
Economic
relations.
373
W . M . 47 (40)
A s r e g a r d s the p o l i t i c a l consequences, Sir P e r c y s a i d t h a t he
could n o t now v e n t u r e t o p r o p h e s y w h e t h e r t h e consequences w o u l d
be a c h a n g e of a t t i t u d e , i n a n a n t i - B r i t i s h direction, o n t h e p a r t
of t h e I t a l i a n regime, or a m u t i n y a g a i n s t t h a t r e g i m e (Rome
t e l e g r a m s Nos. 136 a n d 137).
The First Lord of the Admiralty
drew attention to Rome
t e l e g r a m No. 139, r e p o r t i n g a conversation between t h e B r i t i s h
M i l i t a r y A t t a c h e a n d S i g n o r C a p r o n i r e g a r d i n g the l a t t e r ' s a i r c r a f t
c o n t r a c t w i t h us. S i g n o r C a p r o n i h a d said t h a t the D u c e h a d
completely c h a n g e d h i s a t t i t u d e t o w a r d s t h i s c o n t r a c t between t h e
2nd F e b r u a r y a n d t h e 8 t h F e b r u a r y . O n the 2nd F e b r u a r y S i g n o r
M u s s o l i n i h a d r e a d t h e c o n t r a c t , a n d h a d expressed w a r m s a t i s f a c ­
t i o n ; b u t on t h e 8 t h F e b r u a r y he h a d refused to allow t h e a i r c r a f t
to be sold to H i s M a j e s t y ' s G o v e r n m e n t .
Signor Caproni h a d
a t t r i b u t e d the D u c e ' s c h a n g e of a t t i t u d e to G e r m a n t h r e a t s .
The Secretary of State for Air said t h a t a n A i r Force officer
w h o h a d j u s t r e t u r n e d from R o m e , w h o m he h a d j u s t seen, expected
some modification of S i g n o r M u s s o l i n i ' s a t t i t u d e .
Interested
p a r t i e s in I t a l y m i g h t be e x p e c t e d to b r i n g g r e a t pressure to bear o n
t h e D u c e to allow some of t h e B r i t i s h c o n t r a c t s t o go t h r o u g h .
T h i s officer h a d r e p o r t e d a r u m o u r t o the effect t h a t the G e r m a n
A m b a s s a d o r in R o m e h a d been t o see S i g n o r Mussolini w i t h a copy
of o u r £ 2 0 million p r o g r a m m e of e x p e n d i t u r e in h i s h a n d .
T h e W a r C a b i n e t took note of t h e above s t a t e m e n t s .
8. The Secretary
of State for Foreign Affairs s a i d t h a t he
h
a
d
n
o
w
seen
M
.
T
i
l
e
a
,
w h o h a d h a n d e d h i m t h e a n s w e r of t h e
Oil policy:
R
o
u
m
a
n
i
a
n
G
o
v
e
r
n
m
e
n
t
t
o o u r aide-memoire of the 30th J a n u a r y .
supply of equip­
T
h
e
R
o
u
m
a
n
i
a
n
a
n
s
w
e
r
disclosed
that the Roumanian Government
ment and raw
h a d now u n d e r t a k e n to f u r n i s h G e r m a n y w i t h 130,000 tons of oil a
materials.
m o n t h (or 1,560,000 tons a y e a r ) . These figures were inclusive of
(Previous
t h e oil s u p p l i e s p r o m i s e d t o G e r m a n y u n d e r t h e G e r m a n - R o u m a n i a n
Reference:
A g r e e m e n t of M a r c h 1939, w h i c h h a d p r o v i d e d t h a t 25 p e r cent, of
W.M. (40) 46th
R o u m a n i a ' s t o t a l e x p o r t s to G e r m a n y should t a k e the form of oil.
Conclusions,
T h e y w e r e also inclusive of t h e oil w h i c h R o u m a n i a h a d p r o m i s e d
Minute 7.)
t o s u p p l y to G e r m a n y in p a y m e n t for m u n i t i o n s of w a r . T h e n e w
G e r m a n - R o u m a n i a n a r r a n g e m e n t p r o v i d e d t h a t a r r e a r s of m o n t h l y
deliveries m i g h t be m a d e u p a f t e r w a r d s , b u t t h a t monthly deliveries
could n o t be a n t i c i p a t e d .
S h o u l d we, i n t h e l i g h t of t h i s i n f o r m a t i o n , lift the b a n on t h e
d e s p a t c h of c o n s i g n m e n t s of e q u i p m e n t a n d r a w m a t e r i a l s t o
R o u m a n i a ? T h e R o u m a n i a n view w a s t h a t they h a d done well i n
l i m i t i n g e x p o r t s to G e r m a n y to t h e figures of w h i c h we h a d n o w
been informed.
On t h e whole, h e (the F o r e i g n Secretary) w a s
inclined t o consider t h a t o u r b a n m i g h t now be removed.
Roumania.
The Minister
without
Portfolio
i n f o r m e d the W a r C a b i n e t
t h a t a m e e t i n g of h i s C o m m i t t e e h a d been called for t h a t a f t e r n o o n
t o consider t h i s i n f o r m a t i o n . H i s provisional view w a s t h a t w e
could h a r d l y avoid r e c o g n i s i n g a s a f a c t R o u m a n i a ' s n e w a r r a n g e ­
m e n t w i t h G e r m a n y , w h i c h we could n o t alter, b u t we m u s t n o t
acquiesce in it. I n a c t u a l fact, G e r m a n y was n o t likely t o i m p o r t
a s m u c h as 1,560,000 t o n s of oil a year from R o u m a n i a .
If
deliveries fell behind the schedule, G e r m a n y would c e r t a i n l y h a v e
g r e a t difficulty in m a k i n g u p a r r e a r s . W e m u s t continue t o employ
o p p o r t u n i s t tactics to p r e v e n t G e r m a n y from o b t a i n i n g t h e a m o u n t
of oil p r o v i d e d for in t h e a g r e e m e n t .
The W a r
Cabinet:—
Took n o t e of t h e above s t a t e m e n t s ,
C o m m i t t e e u n d e r t h e c h a i r m a n s h i p of
P o r t f o l i o t o r e a c h a decision a s t o
removal of t h e p r e s e n t t e m p o r a r y
Roumania.
War Cabinet
Arrangements.
and authorised the
the Minister without
t h e c o n t i n u a n c e or
b a n on e x p o r t s to
9. The Prime
Minister
informed the W a r Cabinet t h a t a
M e m o r i a l Service for t h e late L o r d T w e e d s m u i r w a s b e i n g held a t
12 noon on T h u r s d a y , t h e 22nd F e b r u a r y . I t w o u l d a c c o r d i n g l y be
necessary t o h o l d t h e M e e t i n g of the W a r C a b i n e t on t h a t d a y
somewhat earlier t h a n the usual time.
T h e W a r C a b i n e t w e r e also i n f o r m e d of t h e a r r a n g e m e n t s m a d e
for t h e p a r a d e by t h e officers a n d men of H . M . S h i p s Ajax
and
Exeter on F r i d a y , t h e 2 3 r d F e b r u a r y , on t h e H o r s e G u a r d s P a r a d e ,
w h e r e t h e y w o u l d be inspected by H i s M a j e s t y T h e K i n g , p r i o r t o
t h e i r m a r c h t o t h e G u i l d h a l l . O n t h i s m o r n i n g also i t w o u l d be
necessary t o h o l d t h e M e e t i n g of the W a r C a b i n e t a t a n e a r l i e r
hour than usual.
T h e P r i m e M i n i s t e r said t h a t a notice w o u l d be c i r c u l a t e d a s
t o t h e h o u r of t h e M e e t i n g s on these t w o m o r n i n g s .
Richmond Terrace, S.W. 1,
February 20, 1940.