(c) crown copyright Catalogue Reference:CAB/65/10/11 Image Reference:0001 T H I S D O C U M E N T I S T H E P R O P E R T Y OF H I S B R I T A N N I C M A J E S T Y ' S G O V E R N M E N T Printed for the War Cabinet. November 1940. SECRET. Copy M*.':' W.M. (40) 291st Conclusions. TO BE K E P T U N D E R LOCK A N D K E Y . I t is requested that special care may be taken to ensure the secrecy of this document. W A R CABINET 291 (40). CONCLUSIONS of a Meeting of the War Cabinet held at the House of Commons (Annexe), S.W. 1, on Tuesday, November 19, 1 9 4 0 , at 1 1 - 3 0 A.M. The Right Hon. WINSTON S. Present: M.P., Prime Minister (in the CHURCHILL, The Right Hon. Sir J O H N A N D E R S O N , M.P., Lord President of the Council. The Right Hon. A . G R E E N W O O D , M.P., Minister without Portfolio. The Right Hon. Sir K I N G S L E Y W O O D , M.P., Chancellor of the Exchequer. Chair). The Right Hon. V I S C O U N T H A L I F A X , Secretary of State for Foreign Affairs. The Right Hon. L O R D B E A V E R B R O O K , Minister of Aircraft Production. The Right Hon. E R N E S T B E V I N , M.P., Minister of Labour and National The following were also present: The Right Hon. H E R B E R T M O R R I S O N , The Right Hon. V I S C O U N T C R A N B O R N E , M.P., Secretary of State for the M.P., Secretary of State for DoHome Department and Minister of minion Affairs. Home Security (Items 1 - 9 ) . The Right Hon. A. V . A L E X A N D E R , The Right Hon. A N T H O N Y E D E N , M.P., Secretary of State for W a r (Items M.P., First Lord of the Admiralty. 1-3). The Right Hon. Sir A R C H I B A L D The Right Hon. E R N E S T B R O W N , M.P., S I N C L A I R , Bt., M.P., Secretary of Secretary of State for Scotland (Item 8)". State for A i r . The Right Hon. O L I V E R L Y T T E L T O N , The Right Hon. Sir A N D R E W D U N C A N , M.P., Minister of Supply (Items M.P., President of the Board of 8-10). Trade (Items 8 - 1 0 ) . The Right Hon. R. S. H U D S O N , M.P., The Right Hon. L O R D W O O L T O N , Minister of Agriculture and Minister of Food (Item 8 ) . Fisheries (Item 8). The Right Hon. R. H . C R O S S , M.P., The Right Hon. A . D U F F COOPER^ M.P., Minister of Information. Minister of Shipping (Item 8 ) . Admiral of the Fleet Sir D U D L E Y P O U N D , First Sea Lord and Chief of Naval Staff (Items 1 - 5 ) . Secretariat. Sir Mr. Mr. EDWARD BRIDGES. W . D. WILKINSON. L. F. B U R G I S . 43 W A R C A B I N E T 291 (40). CONTENTS. Minute No. 1. Subject. Naval, Military and Air Operations .... .... .... Page 88 Air O p e r a t i o n s : Greece. Naval Operations : E a s t African Coast. S h i p p i n g losses. Military Operations : Italy-Greece. 2. Greece 83 Military assistance. 3. Foreign Information .... .... .... .... .... .... 84 U s e of N a v a l b a s e s in t h e A m e r i c a s . Rumours regarding a separate peace with Italy. F o o d s i t u a t i o n in S p a i n : U n i t e d S t a t e s a t t i t u d e . 4. Blockade Policy 84 France. 5. F r a n c e : t h e French Fleet Jean 6. Bart and 81 Richelieu. Air Raids 85 Casualties and damage. 7. Production .... .... .... .... .... .... .... 85 .... .... .... 86 C h r i s t m a s b r e a k for w o r k e r s . 8. Agriculture .... P r o p o s e d i n c r e a s e of h o m e food p r o d u c t i o n in 1 9 4 1 . 9. Machine Tools 87 P r o p o s e d a d d i t i o n a l o r d e r i n t h e U n i t e d S t a t e s for d e l i v e r y t o t h e M i n i s t r y of A i r c r a f t P r o d u c t i o n . P r o v i s i o n of m a c h i n e t o o l s for G o v e r n m e n t T r a i n i n g C e n t r e s . 10. Man-power R e q u i r e m e n t s of t h e S e r v i c e s a n d of I n d u s t r y . 88 N a v a l , Military and Air Operations. (Previous Reference: W . M . (40) 2 9 0 t h Conclusions, M i n u t e 1.) Air O p e r a t i o n s . Greece. Naval Operations E a s t African Coast. Shipping Losses. 1. The Secretary of State for Air reported that fighter opera­ tions on the previous day had been on a small scale, and neither side had suffered or inflicted any casualties. On the previous night about 130 enemy bombers had been over this country. The raiders had split up, and the majority had flown over Wiltshire. Abnormally large numbers had been engaged in mine-laying off the east coast. On the previous day Coastal Command aircraft had destroyed one D.O. 18 and damaged another. Two Blenheims on patrol had attacked and damaged two H.E. 115's off Texel. Owing to bad weather the operations of day and night bombers had been cancelled, with the exception of 11 machines which had bombed Leuna. All had returned safely, but no reports were yet available. On the previous day our bombers had bombed supply dumps 20 miles south of Tirana. A standing fighter patrol had been main­ tained over Athens. The Chief of Naval Staff reported that Newcastle had arrived safely at Malta. Four more Town Class destroyers had arrived in this country. On the previous day the enemy had bombed a number of sloops, minesweepers and destroyers off the East coast. None of these attacks had been successful. The Channel convoy had been bombarded, but had suffered no casualties. The submarine Swordfish, on patrol off Brest, had been overdue since the 16th November and must now be presumed lost. The Dorsetshire had bombarded Dante, in Italian Somaliland, on the evening of the 18th, and had badly damaged the targets on shore. There had been no shipping in the harbour. The Nestlea (British 4,274 tons) had been bombed and machine­ gunned near Fastnet on the previous morning and had sunk. The Fabian (British 3,059 tons) had been sunk by a U-boat south-west of Freetown on the 16th instant. The St. Germain (British 1,044 tons), with a cargo of pit-props, had been torpedoed 30 miles off Bloody Foreland on the 17th instant, but was still afloat. The Italians had claimed to have shot down a Blackburn Shark. I t was possible that this was the Skua aircraft which had flown off from the Argus on the morning of the 17th. Military Operations. Italy-Greece. The Secretary of State for War said that there was nothing to report from the Greek front. It was evident, however, that the Greeks were suffering from attacks by Italian aircraft on the Koritza front. The War Cabinet took note of the above statements. Greece. Military Assistance. 2. The Prime Minister informed the W a r Cabinet of the decisions reached by the Defence Committee (Operations) at a Meeting held on the previous night. A record of the statement is contained in the Secretary's Standard File of W a r Cabinet Conclusions. (Previous Reference: W . M . (40) 2 9 0 t h Conclusions, M i n u t e 1.) Foreign Information. U s e of N a v a l B a s e s in t h e Americas. 3. The Secretary of State for Foreign Affairs drew attention to the following telegrams :— . " Mr. Butler had heard from a good source that a proposal was afoot that all naval bases belonging to twenty-one American States should be at the joint services of their naval forces; and that a second stage was also being canvassed at which Latin America would offer a reciprocal arrangement for the use of their naval bases to countries of the British Empire." (Tele­ gram No. 2702 from Washington.) This telegram was interesting in its implications of a possible new world order. Rumours regarding a separate peace with Italv. " Mr. Yencken suggested that, if there was no objection, a statement might be broadcast in the British, Spanish and Italian bulletins stating that ' as a consequence of rumours circulated in Madrid, it is officially denied that Italy has made approaches to the British Embassy in Madrid, with a view to making a separate peace with Great Britain.' " (Telegram No. 1058 from Madrid.) The Foreign Secretary said that he had heard nothing of such rumours, but enquiries were being made. In the meantime, he did not propose to take any action. Food s i t u a t i o n in Spain: United States attitude. The Foreign Secretary said the Cabinet would have read a number of telegrams referring to the anxieties in regard to the food situation in Spain. The United States had adopted a very stiff attitude in this matter, and he had telegraphed to Washington urging that the United States should not endeavour to obtain from General Franco a public declaration of policy in regard to non-belligerency in exchange for a present of 10,000 tons of wheat, and had suggested that we should be content with a private assurance. The War Cabinet took note of the above statements. Blockade Policy. France. (Previous Reference: VJ.K :40) 2 9 0 t h Conclusions, M i n u t e 7.) 4. The First Lord- of the A dmiralty said that during the next two or three days forces would be available which could be used to apply contraband control measures to French-escorted convoys passing through the Straits of Gibraltar. H e proposed to issue instructions that, if a suitable opportunity arose to bring in French ships for Contraband Control during that period, action should be taken. The Prime Minister said that he agreed to the action proposed. No doubt an endeavour would be made to intercept Vichy French ships in other parts of the world. It would not, of course, be possible to continue to apply contraband control measures continuously, since our Naval forces had many other tasks to perform. The War Cabinet took note with approval of this statement. F r a n c e : the French F l e e t . Jean and Bart Richelieu. (Previous Reference: W . M . (40) 2 8 6 t h Conclusions, M i n u t e 3.) 5. The Prime Minister read to the W a r Cabinet a personal telegram from President Roosevelt setting out the answer which the President had received to the personal message he had sent to Marshal Petain in regard to these ships. The War Cabinet took note of this statement. 6. The Home Secretary and Minister of Home Security said that the scale of attack in the previous 24 hours had been con­ siderably lighter. Casualties had been as follows :— By D a y - London : None killed, 3 injured. Elsewhere : 4 killed, 15 injured. By Night— London : None killed or injured. Elsewhere : 6 killed, 46 injured. Very little damage of importance had been done. The War Cabinet took note of the above statement. 7. The Home Secretary said that at the Meeting of the Civil Defence Executive Sab-Committee held that morning, the following views had been expressed by representatives of Departments :— The Ministries of Supply and of Aircraft Production did not favour more than one day's holiday. The Admiralty and the Post Office were willing to fall in with whatever arrange­ ment was agreed upon. The Scottish Office thought that it would be difficult to ensure only one day's interruption of production during Hogmanay. The Ministry of Transport urged that, for transport purposes, Christmas Day should be treated as a Sunday, and no special travel facilities given. The Ministry of Labour pointed out that certain industries were working short time and that output might benefit from anticipa­ tion of a holiday and the rest attained thereby. Whatever decision the Government took, it would be necessary to carry with them the representatives of employers and Trade Unions. The question of pay for work on Bank Holiday should be dealt with in accordance with the trade agreements operative in each industry, or by special arrangement where no such agree­ ment existed. The Minister of Labour and National Service pointed out that, on the assumption that production was stopped for only one week­ day at Christmas, certain special problems would arise. For example, was it necessary that distributive shops should open on Boxing Day, although virtually no business would be done on that day? The view generally expressed was that some latitude should be allowed for special arrangements in cases of this kind. The Chancellor of the Exchequer informed the War Cabinet that he had consulted the Banks which were prepared to fall in with whatever general arrangement was made. The W a r C a b i n e t ­ (1) A greed that the general principle should be that production would be stopped for only one day at Christmas, viz., Christmas Day in England and Wales, and New Year's Day in Scotland. (2) Invited the Minister of Labour and National Service to discuss the matter on this basis with employers' and workers' organisations. (3) Agreed that it should be an instruction to the Minister of Labour and National Service: (a) to allow reasonable latitude to deal with special cases; e.g., the distributive t r a d e s : (b) that payment for work on Bank Holiday should be dealt with in accordance with the trade agree­ ments operative in each industry. Agriculture. Proposed i n c r e a s e of h o m e food production in 1 9 4 1 . 8. The W a r Cabinet had before them :— Memorandum by the Minister for Aircraft (W.P. g t a t e 0 2 W . M . (40) 2 3 7 t h Conclusions, M i n u t e 1.) ' Production, 283.) f o r S c o t l a n d a n d t h e 0 Extract from Minutes of the Food Policy Committee. (Previous Reference: (4) Memorandum by the Minister of Agriculture, the Secretary Home Secretary. (W.P. (G.) (40) o f 3 (G.) (W.P. m , (G.) . (40) . ' 303.) . , . , . ,. ,-i The principal points made in the course of discussion were the following:­ (i) By raising the yield of the existing arable acreage by 5 per cent., which was by no means impossible, we could secure an addition to our food supply equivalent to the addition which would result from ploughing up a million acres of grassland and sowing it to crops, (ii) The best method of dealing with farms where the tenant was lacking in the cash or knowledge necessary to make his farm fully productive was for Agricultural Executive Committees to carry out the necessary work on his behalf, even if they cannot in all cases recover the whole cost. (iii) One of the main problems was that of drainage, for which grants of 50 per cent, were available at present. An effective stimulus would be given if the balance of cost could be advanced to Drainage Authorities, pending its recovery from the land-owners, over a period of years. About 5,000-10,000 more workers would have to be employed, and care would have to be taken that the gangs were not dispersed when work was completed on a particular farm. They should be under the orders of the authorities concerned in the Drainage Schemes and available for work in any part of the Authority' s area. (iv) The Minister of Shipping drew attention to the recom­ mendation in' W . P . (G.) (40) 282 that 200,000 tons of fertilisers should be imported from the United States. The only way of making the necessary shipping available was at the expense of other items in the food imports programme. This would give rise to some difficult priority questions. The Minister of Food said that he agreed generally, subject to the proviso that room could not be found in the import programme for fertilisers (which would not provide food until next year) until this year's food supply had been assured. (v) The Minister of A griculture and Fisheries said that, after the implications of the new policy had been worked out, it would be necessary to make a public announcement. I t was important that there should be no leakage in the meantime. The W a r Cabinet : - ­ (1) Gave a general approval to the recommendations of the Food Policy Committee as set out in W P . (G.) (40) 303, including the offer of a guarantee to the agricultural industry that the present system of fixed prices and an assured market would be maintained for the duration of the war and for at least one year thereafter. (2) Invited the Food Policy Committee to examine the implica­ tions of the new policy and to agree upon the terms of a public announcement. The announcement should include a statement that the Government, which repre­ sented all political parties, recognised the importance of maintaining after the war a healthy and well-balanced agriculture as an essential feature of national policy. (3) Invited the Food Policy Committee also to consider the priority to be afforded to the import of 200,000 tons of fertilisers from the United States, in relation to the existing food imports programme. (4) Recognised that Scottish agriculture presented problems of its own, which called for special action, e.g., the main­ tenance of hill sheep farms and methods of dealing with pests, such as rabbits and bracken. (5) Agreed that it would be impossible to recover, in the first year, the full cost of the cash advances made to land owners or farmers in respect of works for improving the productivity of their land. The Food Policy Committee was invited to settle the terms on which repayment should be made. Machine Tools. (Previous Reference: ' W . M . (40) 2 7 4 t h Conclusions, M i n u t e 5.) Proposed additional o r d e r in t h e U n i t e d S t a t e s for d e l i v e r y t o the Ministry -of Aircraft Production. P r o v i s i o n of Machine Tools for Government Training Centres. W . M . (40) 2 7 4 t h Conclusions, M i n u t e 5. 9. The War Cabinet had before them Memoranda by the Minister of Aircraft Production, the Minister of Labour and the Minister without Portfolio (W.P. (G.) (40) 286, 295 and 299). The Minister of A ireraft Production explained that he wanted to place a further order in the United States for machine tools costing £10 millions over and above the orders described in the Memorandum by the Minister without Portfolio. H e wished to place this order direct with American industry, and not through the British Purchasing Commission. He would, however, expect his Department to receive their due proportion of the outstanding orders referred to in that Memorandum. The Minister of Supply said that we were already asking for delivery of £22-J millions worth of machine tools in the second six months of 1941 from the United States. I t would be very difficult to fulfil this programme, and he did not see how American industry could accept an additional order. The W a r Cabinet were reminded that Mr. Purvis was on the point of reaching London, and the Prime Minister thought that he should be consulted before aNdecision was reached on this proposal. The Minister of Laboui\and National Service said that his Centres were training persons whom the factories could not train : e.g., men between 50 and 60, coming from trades unconnected with engineering. A high proportion of persons trained in these Centres went to aircraft factories. The Minister of Aircraft Production said that every aircraft factory throughout the country attached more value to machine tools than to labour. He strongly urged that all available machine tools should at once be allocated to productive establishments. The Minister without Portfolio said that he had made arrange­ ments which would result in the Ministry of Labour Centres receiving roughly three-quarters of their requirements of machine tools. The W a r Cabinet : — (1) Invited the Minister without Portfolio and the Ministers in charge of the Supply Departments to ascertain Mr. Purvis's views on the proposal that an additional order for machine tools, value £10 millions, should be placed directly by the Ministry of Aircraft Production in the United States. (2) Reaffirmed the decisions reached on the 21st October in regard to the provision of machine tools for Government Training Centres. (3) Adopted the recommendations made by the Minister with­ out Portfolio in paragraph 13 of his Memorandum (W.P. (G.) (40) 299). Man-Power. Requirements of t h e Services and of I n d u s t r y . (Previous Reference: W . M . (40) 193rd Conclusions, M i n u t e 1.) 10. The War Cabinet had before them a Memorandum (W.P. (G.) (40) 296) by the Chairman of the Production Council and the Economic Policy Committee, summarising the man-power requirements for the purpose of carrying out the Service pro­ grammes, and the steps which had to be taken if the necessary increases in the engineering industry were to be achieved. I n the course of a preliminary discussion the Minister of Air­ craft Production expressed some apprehension as to certain recom­ mendations in the Memorandum, on the ground that they might result in interference with the management of factories and lead to some loss of present production. I n the Minister's view, the situation did not permit of any steps which would sacrifice present production. Further, the situation was so uncertain that, while it was clear that an increase in engineering labour was required, no exact calculation could be made of the additional numbers required over a given period. I n his view, the limiting factor to-day and in the future would be machine tools rather than labour supply. The Minister of Labour and National Service pointed out that over a million men would be required by the Services over the next 12 -months, and he would be failing in his duty if he did not make plans on a sufficiently comprehensive scale to make good this figure and to provide the increase called for. After some further discussion, the W a r Cabinet invited :— The Minister without Portfolio (Chairman), The Minister of Aircraft Production, The Minister of Labour and National Service, The First Lord of the Admiralty, The Minister of Supply, to have a further discussion in regard to the recommen­ dations contained in the Memorandum before the W a r Cabinet, and to report whether those recommendations were acceptable to them, with or without modification. Richmond Terrace, S. W. 1, November 19, 1940.