(c) crown copyright Catalogue Reference:CAB/23/52 Image Reference:0027 DOCUMENT I S THE PROPERTY OP HIS BRITANNIC MAJESTY'S GOvEP^rMEHT. ) c RET. Copy. Ho, C A B I N E T 27 (26). Meeting of the Cabinet to be held at 10 Downing S t r e e t , S.W.1. on SATURDAY, May 8th, 1926, at 6.0 P.M. A G E N D U M. 1. ' THE INDUSTRIAL CRISIS. (Continuation of previous discussion.) (Signed) M . P . A. HANKEY, Secretary, 2 Whitehall Gardens, S.W.1, 8th May, 1926-. Cabinet. ;nnCUMENT IS THE PROPERTY 0? HIS BRITANNIC MAJESTY'S GOVBRmtMT. ) C A B I N E T 27 Copy No. (26). CONCLUSIONS of a Meeting of the Cabinet held at 10 Downing S t r e e t , S.W.1, on SATURDAY, May 8th, 1926, at 6.0 p.m. PRESENT:The Right Hon. Stanley Baldwin. M.P., Prime Minister. ( i n the Chair). j Right Hon. Viscount Cave, G.C.M.G., Lord Chancellor. The Right Hon. The Earl of Balfour, K.G., O.M., Lord President of the Council. e Most Hon. The Marquess of Salisbury, LG.,G.C.V.O.,C.B., Lord Privy Seal, The Right Hon.' " W. S. Churchill, C.H, ,M.P., Chancellor of the Exchequer. j Right Hon. Sir William Joynson-Hicks, 3t,,M.P., Secretary of State 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 State for the Colonies. ; Right Hon. Sir Laming Worthington-Svans, St, ,G.B.E. ,M.P., Secretary of State f o r War. The Right Hon. The Earl of Bixkenhead, Secretary of State for India. Right Hon. Sir Samuel Hoare, Bt.yC.M.G., M.P., Secretary of State f o r Air. The Right Hon. W. C. Bridgeman, M.P., F i r s t Lord of the Admiralty. Right Hon. Sir P h i l i p C u n l i f f e - L i s t e r , K.3.E. ,M.C. ,M.P. , President of the Board of Trade. The Right Hon. N e v i l l e Chamberlain, M.P., Minister of Health, Right Hon. Guinness, D.S.O.,M.P,, Minister of Agrioulture and Fisheries. The Right Hon. Sir John Gilmour, Bt.,D.S.O., M.P., Secretary for Scotland. Right Hon. Lord Eustace Percy, M.P., President of the Board of Education, The Right Hon. Sir Arthur Steel-Maitland, B t . , M . P . , Minister of Labour. '. - Right Hon. Viscount P e e l , G.B.E., F i r s t Commissioner of Works, The Right Hon. Sir Douglas Hogg, K . C , M . P . , Attorney General. ; 5if If. P, A, Hankey, G.C.B v Secretary. INDUSTRIAL SIS. islation. - - 1 . The Cabinet met to consider the draft of a B i l l to declare and arj&snd the law with respect to i l l e g a l s t r i k e s , which had been prepared by-the Cabinet Committee (Paper C P . - 1 9 0 (26)),. ..vioua fere no e: tinat 26 ), O o n ­ jgion 3.) Copies of the draft B i l l were passed round at the outset of the meeting and c o l l e c t e d immediately afterwards Great stress was Laid on the d e s i r a b i l i t y of secrecy at the present s t a g e , owing to the risk :VlOUS ,arenoe: :.inet 15. ,). Con­ ision 3.) that the f i n a n c i a l provisions of the B i l l might be frustrated by premature d i s c l o s u r e . The Secretary was ins time ted to c i r c u l a t e no Minutes f o r a few days * ADDITIONAL iRC-ENCY iULATlON. nous ferenee: binet 20 5), C o n ­ asion 2 ,) The Attorney-General gave the Cabinet an explanation of the B i l l . Discussion centred in the main on the question of whether the pronounce-­ ment as to the existence of an i l l e g a l strike should be determined by the Government, subject to confirmation by Parliament, within a s p e c i f i e d p e r i o d , as in the case of the Emergency Powers Act, 1920, or by the Court, as implied in the draft Bill The l a t t e r course was p r e f e r r e d . An a d d i t i o n a l clause was added to bring the Act i n t o e f f e c t as from May 10, 1926. Several suggestions were made f o r adding to the B i l l , but were not adopted, as i t was felt to be desirable .to keep the B i l l as short and as simple as p o s s i b l e , and therefore to confine i t to the main i s s u e . The Cabinet were informed that a special Regulation would require to be passed under the Emergency Proclamation to prevent the withdrawal by communists of foreign (e,g.Russian) money from the banks, The Cabinet agreed ­ ( a ) To approve the B i l l in the form given in the Appendix ', Tor I n t r o ­ duction on Monday, May 10th, subject to any drafting alterations that might be found necessary or d e s i r ­ a b l e , and subject to the circum­ stances then e x i s t i n g : (b) That the Lord Chancellor, the Secretary of State for India and the Attorney-General should draft a Regulation under the Emergency Proclamation to prevent the banks from paying out foreign money for purposes prejxidicial to the public safety or l i f e of the community: ( c ) That-the Lord President of the Council should ask the King to hold a meeting of the Privy Council in order to approve the above Regula­ t i o n in time f o r i t to become operative on the morning of Monday, May 10th. The Appendix i s attached only to the standard copy of the Minutes kept by the Secretary, but additional copies are available in the Cabinet Office in the personal charge of the Secretary . 8. The Ohanoellor o f the Exchequer i n v i t e d h i s colleagues, i f questioned on the subject, to make i t clear that there was not the smallest necessity or j u s t i f i c a t i o n f o r any r e s t r a i n t s on f i n a n c i a l operations, such as a closing of the Stock Exchange or a moratorium, and that a l l suggestions of the kind were to be deprecated as calculated to create alarm and to depress c r e d i t . MINISTERS AND PRESS TNTERVIBWS .'' 3 . The Cabinet agreed - . That Ministers should avoid personal interviews with the B r i t i s h or foreign Press, p u b l i c i t y of the kind being s u f f i c i e n t l y provided f o r by the sicned a r t i c l e s appearing in t h e " " B r i t i s h Gazette", published by the Government during the s t r i k e , and by . statements, such as the one to be made by the Prime Minister the same evening by the wireless broadcasting. $ADCASTING. 4 . The Prime Minister read to the Cabinet the d r a f t of a public statement he proposed to make ravlous ference: jbinat 26 26), Con­ luaion 2 ,) 3 the same evening by the wireless broadcast, Subject to a few sxaggestions, which the Prime M i n i s t e r undertook to consider, the statement .was approved, including, a f t e r careful considera­ B REPORT f THE ROYAL DMMISSION :! THE COAL DUSTRY (1925) . -3afflm-ation f Govern­ ant's Accept­ noe on Terms f Reciprocity. revi ous aference: abinet 13 26) , Con­ iusion 2 ,) t i o n , the following passage:­ " I want to repeat, therefore, that the Government i s prepared to accept the Report, and the whole Report, i f other p a r t i e s w i l l do s o , " 30AL COMiVTSSlON' s 53AIRMAN* letter to. 5. The Cabinet approved, subject to some minor corrections , the terms of a confidential l e t t e r , defining the Government s position 1 towards mediation, to be sent.by the Minister of Labour to S i r Herbert Samuel, the Chairman of the Royal Commission on the Coal Industry -(1925) , who had returned from I t a l y and, on his own i n i t i a t i v e , and without any vestige of o f f i c i a l authority, had held some conversations with miners and mine-owners. (Copy of the l e t t e r signed by the Minister of Labour on May 9th.. 1925, attached to the standard copy of the Minutes kept by the Secretary.) ... 2, Whitehall Gardens, S.W.1, May 9, 1926. Draft of a Bill to declare and amend the law with respect to illegal Be i t strikes, enacted-&c. 1. (1 ) I t Is hereby declared that i t i s i l l e g a l j to commence or continue, or to apply any funds in furtherance 1 or support of, any s t r i k e which has any other object than the maintenance or improvement of conditions of labour in the industry or the branch of the industry in which the s t r i k e r s are engaged, and which i s intended or calculated -to intimidate or coerce the Government or the commu­ nity, and that any person i n s t i g a t i n g or taking part in any such s t r i k e i s g u i l t y of a misdemeanour. ( 2 ) The provisions of the Trade Disputes Act,IP06, s h a l l not, nor shall the second proviso to sub­ section ( l ) of section two of the Emergency Powers A c t , 1920, or any similar proviso contained i n any regulations made under that Act. apply to any act done i n contemplation or furtherance of a s t r i k e which i s declared i l l e g a l under this A c t , and i t s h a l l be lawful for the High Court at the s u i t , o f the Attorney General to r e s t r a i n ( o r in Scotland f o r the Court of Session at the instance of the Lord Advocate to i n t e r d i c t ) the a p p l i c a t i o n of the funds of any trade union society or corporation In furtherance or support of any such s t r i k e . Draft of a Bill to declare and amend the law with respect to illegal Be i t ILLEGAL STRIKES . strikes. enacted-&c.- 1. ("1 ) I t i s hereby declared that i t i s i l l e g a l commence or continue, or to apply any funds furtherance or support of, to in any s t r i k e , which has any .other object than the maintenance or improvement of conditions of labour i n the industry or the branch of the industry in which the, s t r i k e r s are engaged, and which i s intended " o r c a l c u l a t e d to ; ­ i n t i m i d a t e or coerce the Government or the oosirm­ n i t y , and that any person I n s t i g a t i n g or taking ... part in any such s t r i k e i s g u i l t y of a misdemeanour. ( S ) The provi.si.ons o f the Trade Disputes A c t , 1906, s h a l l not, nor shall, the second proviso, to sub­ s e c t i o n (.1) of s e c t i o n two of the . Emergency PowersA c t , 1920, or any s i m i l a r proviso contained i n any r e g u l a t i o n s made under that Act, apply to any act done i n contemplation or furtherance o f a s t r i k e which Is d e c l a r e d i l l e g a l under this Act,, and it­ s h a l l be lawful f o r the High Court at the suit.of the Attorney General to r e s t r a i n ( o r In Scotland f o r the Court of Session at the Instance of Lord Advocate to' i n t e r d i c t ) the the a p p l i c a t i o n of the funds o f any trade union s o c i e t y or c o r p o r a t i o n i n furtherance o r support of any such s t r i k e . (3) to t a k e u n d e r to I t i s part e x p u l s i o n d e p r i v a t i o n of d e c l a r e d i n s t r i k e , any Act t h i s w o u l d "hereby i s . b y from of any o t h e r w i s e such or n o t w i t h s t a n d i n g , and U n i o n s h a l l ' f o r 1 8 7 1 , e n f o r c i n g see any For " s t r i k e " t h e purposes means p e r s o n s t h e employed concerted, o f c o n t i n u e - t o . The s o c i e t y t o i l l e g a l of in.;the t o h e r u l e s c o n t r a r y , the..Trade to-, a n y s e c u r e d or w h i c h t h e four and as i n i n c l u d e s b y p r o c e e d i n g t h i s o f This A c t , a A c t 1 9 2 6 , I r e l a n d This May, any any number s u b ­ o f may b e a a body or common persons, o f a ­ employed, union"'; h a s .t h e . same. Union c o m b i n a t i o n t r a d e u n d e r e x p r e s s i o n - Trade t h a t by c o m b i n a t i o n , r e f u s a l "trade t h e a n d a i n Act' the of; work work., n o t w i t h s t a n d i n g branch c e s s a t i o n o r e x p r e s s i o n meaning' 3 , to of. this a c t i n g r e f u s a l u n d e r s t a n d i n g - 2 . o r anything- apply- so d e c l a r e d b e n e f i t s e c t i o n r e f u s i n g s u c h ' r e f u s a l : - ' s u b j e c t s o c i e t y r i g h t i s p e r s o n t i o n . (4) to o r n o t no u n i o n e n t i t l e d , trade, u n i o n A c t , of t r a d e r i g h t be which r e a s o n any that such A c t s . 1 8 7 1 as t h e r e i n c o m b i n a t i o n to ,;-. 1 9 0 6 defined, may b e the' u n i o n . c i t e d s h a l l not as t h e - I l l e g a l e x t e n d - to" S t r i k e s N o r t h e r n . A c t 1 9 2 6 . s h a l l h a v e e f f e c t on and a f t e r 1 0 t h \ ; I ' ' . ... - 361 8th May, 19 26. ; H 7 dear Samuel, I t has occurred to me since our conversation this £^afternoon that in dealing with a matter so d e l i c a t e i t would be oetter to place upon record in w r i t i n g the a t t i t u d e of the . government as 1 understand it. We have r e p e a t e d l y stated that we cannot n e g o t i a t e until the General Strike has been withdrawn. This statement has arery p a r t i c u l a r meaning. It noans that u n t i l the necessary orders have been given to withdraw the Strike or unless, the S t r i k e has come to an end ,ve cannot as a condition or inducement take part in n e g o t i a t i o n s Bin r e l a t i o n to the mining issue. i?or i f we did so, there would Send could be no uncondit ional withdrawal of . the Strike n o t i c e s . On the contrary, the true s i t u a t i o n s i n c e r e l y faced would be that IIwe had procured the end of the General Strike by a process of. : bargaining. fatally 1 The consent to do t h i s would in fact disable the Government for a task which, as t r u s t e e s of the community, they conceive themselves bound to undertake. $position is p l a i n . They hold, that the General Strike ^unconstitutional and i l l e g a l . rake i t s r e p e t i t i o n impossible. Their is They are bound to take steps to It is t h e r e f o r e plain that they I cannot enter upon any n e g o t i a t i o n s unless the Strike i s so jtinreservedly concluded that there is not even an implication /of of such a bargain upon their side as would embarrass them in any l e g i s l a t i o n which they may conceive to be proper in the l i g h t of recent events. In these circumstances, I am sure that the Government w i l l take the view that while they are bound mosfc c a r e f u l l y and most s y m p a t h e t i c a l l y t o consider the terms of any arrangement which a public man of your r e s p o n s i b i l i t y and experience may propose, i t i s imperative to that any discussion which you think proper to is not c l o t h e d in even a v e s t i g e of o f f i c i a l The Rt.Hon. Sir Herbert Samuel, G.H.K., make i t . p l a i n initiate character.