(c) crown copyright Catalogue Reference:CAB/23/12 Image Reference:0012 Printed for the War Cabinet. October 19.19. SECRET. WAR Conclusions CABINET 1- 627. of a Meeting of the War Cabinet, held at 10, Douming Friday, October 3, 1919, at 10-30 A.M. Street, S.W., on Present : The P R I M E M I N I S T E R (in the Chair). T h e R i g h t H o n . Sir E . G E D D E S , G . C . B . , T h e R i g h t H o n . A. B O N A R L A W , M . P . G.B.E., T h e R i g h t H o n . A. C H A M B E R L A I N , M . P . M.P. T h e R i g h t Hon. G . N . B A R N E S , M.P. The following were also p r e s e n t : T h e R i g h t H o n . t h e Viscount M I L N E R , G.C.B., G.C.M.G., Secretary of S t a t e for t h e Colonies. T h e R i g h t H o n . W . S. C H U R C H I L L , M . P . , Secretary of S t a t e for W a r . The Right Hon.'E. S. MONTAGU, M.P., Secretary of S t a t e for India. T h e R i g h t Hon. C. ADDISON, M.D., M.P., Minister of H e a l t h . T h e R i g h t H o n . Sir J . M A C LAY, Bart., Shipping Controller. T h e R i g h t H o n . Sir L. W O R T H I N G T O N E V A N S , Bart., M . P . , Minister of Pensions. T h e R i g h t H o n . Sir R. S. H O R N E , K . B . E . , K.C., M.P., Minister of Labour. The Right H o n . G. H . R O B E R T S , M.P., Food Controller. T h e R i g h t H o n . Sir G. H E W ART, K.C., M.P., Attorney-General. The R i g h t Hon. W . LONG, M.P., F i r s t Lord of t h e Admiralty. T h e R i g h t Hon. E. S. SHORTT, K.C., M . P . , Secretary of S t a t e for H o m e Affairs. T h e R i g h t H o n . Lord B I R K E N H E A D , L o r d H i g h Chancellor. T h e R i g h t Hon. Sir A. C. G E D D E S , K.C.B., M.P., President of t h e B o a r d of Trade. T h e R i g h t Hon. H. A. L. F I S H E R , L L . D . , M . P . , P r e s i d e n t of t h e Board of Education. T h e R i g h t Hon. t h e L o r d L E E of F A R E H A M , G.B.E., K.C.B., P r e s i d e n t of t h e B o a r d of Agriculture. The Right Hon. Lord Minister of Munitions. INVERPORTH, T h e R i g h t H o n . Sir A. M O N D , Bart, M . P . , F i r s t Commissioner of W o r k s . T h e R i g h t H o n . A. H . I L L I N G W O R T H , M. P., Postmaster-General. Lieutenant-Colonel Sir M. P . A . H A N K E Y , G.C.B., Mr. T H O M A S J O N E S , Assistant Secretary. Lieutenant-Colonel L. STORR, C.B., Assistant [1042] Secretary. Secretary. B The Railway Strike. .: 1. T h e P r i m e Minister said he h a d summoned a full m e e t i n g f Ministers owing to t h e gravity of t h e present situation. After t h a n k i n g t h e Minister of Transport, t h e Minister of Food, a n d t h e other Ministers who were organising t h e counter-measures for t h e i r successful services, which h a d surprised both t h e country a n d t h e strikers, he g a v e a brief summary of t h e course of events from t h e intervention of t h e Transport W o r k e r s ' Federation on t h e 1st October t o t h e note h a n d e d to t h e m on t h e previous day, which t h e P r i m e Minister r e a d t o his colleagues. (For details a n d t e x t of note see Appendix.) A t t h e request of t h e D e p u t a t i o n , which h a d been acting as intermediaries, this note had not been published, which seemed t o indicate t h a t the D e p u t a t i o n was still seeking for conciliation, although t h e railwaymen h a d rejected t h e G o v e r n m e n t s offer. The P r i m e Minister invited t h e views of his colleagues on t h e general situation, and in t h e course of his s t a t e m e n t a n d in t h e subsequent discussion he raised more particularly t h e following questions :— Q (o.) T h e expediency of summoning P a r l i a m e n t in t h e event of t h e r e being no extension of t h e strike beyond t h e railwaymen. (6.) T h e expediency of summoning P a r l i a m e n t in the event of a general strike, (c.) T h e s t a g e at which an announcement should be m a d e t h a t t h e positions of men remaining on strike would not be g u a r a n t e e d after a certain date. (d.) W h e t h e r , and when, an announcement should be made g u a r a n t e e i n g their positions a n d promotion t o men who b a d remained loyal or had come to t h e help of t h e State. (e.) P r o p a g a n d a in order to combat t h e distorted versions of t h e facts which were being circulated. .- (/.) A n appeal to Mayors a n d Chairmen of County Councils t o u n d e r t a k e local organisation and publicity. The W a r Cabinet t h e n heard s t a t e m e n t s regarding various aspects of t h e anti-strike organisation by t h e Minister of Transport, t h e Minister of Food, t h e H o m e Secretary, t h e Minister of Labour, a n d t h e P o s t m a s t e r - G e n e r a l . These were on t h e whole of a satis­ factory character" although certain points emerged for further consideration. Special Constables. Ml Proposed Special Appeal to Railwaymen. 2. A suggestion was strongly pressed t h a t some action should be t a k e n t o increase t h e n u m b e r and improve t h e organisation of Special Constables. The W a r Cabinet S t r i k e C o m m i t t e e was asked to t a k e t h i s question up a t once. - 3. A suggestion addressed t o t h e P r i m e Minister from Liverpool was considered, namely, t h a t t h e G o v e r n m e n t should issue a special appeal t o railwaymen and giye t h e m a t i m e limit t o resume work. I t was pointed out t h a t this m a t t e r was being watched b y a S u b Committee. T h e W a r Cabinet adopted t h e view of t h e W a r Cabinet S t r i k e C o m m i t t e e t h a t a n y action of t h e n a t u r e s u g g e s t e d should be postponed until t h e a t t i t u d e of t h e Trades U n i o n D e p u t a t i o n was cleared up. WC 627 3 Proposed Alteration of Pre-war Basic Bate. 4. W i t h a view to a prevention of t h e spread of t h e strike w i t h its incalculable consequences, the suggestion was m a d e t h a t , as t h e wages of t h e lower grades of railwaymen h a d been inadequate before t h e war, a proposal made by Mr. Whitley a n d Mr. S e e b o h m B o w n t r e e "should be considered, namely, t h a t a n announcement should be m a d e t h a t t h e G o v e r n m e n t were prepared to t a k e u p a r e a d j u s t m e n t of t h e basic r a t e as a s t a r t i n g point, a n d t h a t if t h i s vague s t a t e m e n t did not satisfy t h e men t h e following explanation should be given t o t h e negotiators, b u t not for publication. " I will give t h e assurance t h a t t h e special consideration promised to t h e men of particular g r a d e s is to be t a k e n t o m e a n t h a t in any s e t t l e m e n t no adult whole-time worker in t h e lowest g r a d e shall receive less a t any t i m e t h a n t h e equivalent of 25s. a week reckoned a t pre-war prices." A n u m b e r of objections were urged against this proposal. I t would be a d e p a r t u r e from t h e policy steadily adhered to by t h e G o v e r n m e n t t h a t t h e y could not continue negotiations u n t i l t h e men­ r e t u r n e d t o work. The Government offer was in fact a t least as good. The proposal would be difficult to explain, and would probably be interpreted t h a t t h e minimum of 40s. had been lowered t o 25s. a n d would generally muddle t h e public. The W a r Cabinet'generally endorsed t h e policy h i t h e r t o pursued by t h e G o v e r n m e n t in declining t o continue negotiations u n t i l t h e railwaymen returned t o work and left t h e above proposal for consideration, if and when t h e r i g h t m o m e n t should come, by t h e Prime Minister in conference w i t h t h e Ministers mainly concerned. Propaganda. 5- I t h e course of t h e above discussion the general view was expressed t h a t even further steps m u s t b e t a k e n to m a k e t h e Govern­ m e n t ' s offer plain and clear to the public by posters, advertisements, leaflets, &c. The W a r Cabinet invited the Minister of Pensions to associate' himself w i t h t h e Minister of Labour in t h e organisation of propaganda. Extension of Period of Guaranteed Wage. 6. I n r e g a r d t o a suggestion b y Mr. Barnes t h a t t h e period during w h b h w a g e s were guaranteed against reduction m i g h t be e x t e n d e d beyond t h e 31st March, 1920, t h e W a r Cabinet agreed that— n The question was one which m i g h t be referred to arbitration. The Summoning of Parliament 7. There was a short discussion as to t h e desirability of sum­ moning P a r l i a m e n t . T h e general view was t h a t P a r l i a m e n t should be summoned only in t h e e v e n t of t h e extension of t h e strike t o t h e whole of organised labour. The S e c r e t a r y of S t a t e for India wished his dissent from this, view to be recorded. The Ministers present endorsed t h e policy h i t h e r t o p u r s u e d by t h e P r i m e Minister a n d those most closely associated with him in dealing w i t h t h e situation, a n d expressed their complete confidence in t h e policy arid t h e i r desire t h a t t h e P r i m e Minister should feel h e h a d a perfectly free h a n d in conducting t h e G o v e r n m e n t s case. 2, Whitehall Gardens, S.W. October 3, 1919. [1042] 1, APPENDIX. E A R L Y yesterday afternoon, t h e 1st October, t h e P r i m e Minister received a r e q u e s t from t h e Transport W o r k e r s ' Federation t o receive a D e p u t a t i o n . This h e agreed to do. A t 3 P.M. t h e D e p u t a t i o n was introduced by Mr. Gosling. H e explained t h a t t h e Transport W o r k e r s Federation w e r e so closely concerned with t h e R a i l w a y S t r i k e , a n d were receiving so m a n y d e m a n d s from their members for action t h a t t h e E x e c u t i v e h a d felt it incumbent on t h e m to consider t h e question. T h e y h a d decided to call in t h e Conference r e p r e s e n t a t i v e s of o t h e r trades unions in t h e same position as themselves, a n d t h e r e s u l t of t h a t Conference was t h e present representative D e p u t a t i o n which included besides Mr. Gosling himself, such prominent t r a d e s unionists as :— Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. Mr. A r t h u r Henderson. Clynes. R o b e r t Williams. Bevin. 0'Grady. Muir. Brownlie. N a y lor. A. Bo wen. Walker. Mr. Gosling first addressed t h e P r i m e Minister and he was followed b y Mr. Clynes, Mr. A r t h u r Henderson, Mr. Brownlie, and Mr. Bevin. T h e y explained t h a t t h e y h a d heard the views of Mr. Thomas a n d Mr. Bromley, and t h e y h a d agreed t h a t it h a d been established t h a t a real t r a d e s unions s t r u g g l e was going on which affected t h e m all. They emphasised t h a t t h e y did n o t wish t o discuss merits, a n d explained t h a t t h e object of t h e Deputation was to t r y a n d ascertain w h e t h e r some means could n o t be found of securing a resumption of n e g o t i a t i o n s ; otherwise i t would be very difficult for t h e t r a d e s unions affected by t h e dispute to s t a n d by w i t h o u t t a k i n g action. The a t t i t u d e of some of t h e speakers was n o t w i t h o u t menace. Mr. Clynes, for example, said frankly t h a t those t h e y represented t h o u g h t t h a t t h i s was a challenge to t r a d e unionism t h a t t h e y m u s t t a k e up. Mr. Brownlie quoted a member of his union as s a y i n g : " If ever t h e r e was a n issue on which we should fight, it is h e r e . " Mr. Bevin said t h a t in a j o u r n e y d u r i n g t h e week-end t h r o u g h South W a l e s a n d t h e Midlands he had everywhere been urged to call out his union. Mr. H e n d e r s o n m a d e t h e notable r e m a r k t h a t it w a s realised t h a t t h e G o v e r n m e n t were b e t t e r s i t u a t e d to m e e t a s t r i k e t h a n t h e y had ever been before, since t h e war machine could be p u t in operation against t h e men a n d could be used to smash t h e t r a d e s unions a n d to drain t h e i r funds. H e pointed out, however, t h a t if this occurred t h e G o v e r n m e n t would only be a t t h e beginning of t h e i r trouble. Broadly speaking, however, t h e spirit of t h e D e p u t a t i o n , if firm, was conciliatory. All speakers dwelt on t h e g r a v i t y of t h e situa­ tion which would be created by a continuance of t h e strike. T h e P r i m e Minister in his reply did not u n d e r r a t e t h e g r a v i t y of t h e situation, and d w e l t a t some l e n g t h on t h i s aspect of t h e question, which had led him to m a k e every possible efibrt to a v e r t a strike. As t h e D e p u t a t i o n a d m i t t e d h a v i n g h e a r d t h e case of Mr. Thomas a n d Mr. Bromley, t h e P r i m e Minister felt it his d u t y t o give t h e m a s u m m a r y of t h e proceedings from t h e point of view of t h e Government, in t h e course of which h e dwelt on t h e various phases w i t h which t h e W a r Cabinet are familiar, a n d emphasised t h e suddenness of t h e strike, t h e refusal t o g r a n t a few d a y s e x t r a for discussion when he d e m a n d e d it, a n d t h e entire absence of good-will. These a n d o t h e r incidents which he referred to, such as t h e comment of t h e railwaymen on h e a r i n g t h e G o v e r n m e n f s proposals t h a t ' t h e time for discussion was over," h a d b r o u g h t it home t o him t h a t he was n o t dealing with men who desired to settle. This entirely justified t h e allusion in one of his public s t a t e m e n t s to t h e s t r i k e as " p a r t of an anarchist plot," whiclfone of t h e speakers h a d resented. H e a d h e r e d entirely t o t h i s s t a t e m e n t . The P r i m e M i n i s t e r s s t a t e m e n t m a d e a v e r y g r e a t impression on t h e D e p u t a t i o n , who, in spite of t h e i r desire t o avoid merits, p u t one question after another elucidating p o i n t after point. I t was clear t h a t t h e y h a d n o t in t h e least understood t h e G o v e r n m e n f s case, a n d t h e i r whole a t t i t u d e became more friendly a n d conciliatory. : WC 627 5 After several a t t e m p t s h a d been m a d e t o induce t h e G o v e r n m e n t to re-open negotiations w i t h t h e railwaymen,. which t h e P r i m e Minister met by the s t a t e m e n t t h a t t h e men must r e t u r n to work as an indispensable preliminary condition, Mr. Gosling p u t a definite question w h e t h e r t h e P r i m e Minister would be willing t o see t h e other side w i t h a view t o re-opening negotiations. Before answering this question t h e P r i m e Minister felt it r i g h t t h a t h e should consult his colleagues, and after an adjournment for this consultation, he gave t h e following considered reply, which was a t once published : — " If I am asked to see t h e Executive of t h e N a t i o n a l Union of R a i l w a y m e n my answer is, t h a t I shall be ready t o m e e t t h e m and h e a r w h a t t h e y have to say, but you will, I am sure, agree w i t h me t h a t t h e r e is nothing to be gained by any ambiguity, more especially as t h e r e has been a good deal of misunder­ standing already. " I want, therefore, to m a k e it quite clear t h a t in t h e opinion of t h e G o v e r n m e n t it would be quite impracticable to continue negotiations until work is resumed. A p a r t from other considerations t h e Ministers who would be concerned in t h e negotiations could n o t possibly a t t e m p t to deal with t h e questions involved while t h e i r whole energy is devoted, as it m u s t necessarily be, to improvising means of c a r r y i n g on t h e life of t h e nation." The D e p u t a t i o n t h e n retired shortly before 7 pan. By this t i m e t h e desire of t h e D e p u t a t i o n t o bring about a s e t t l e m e n t h a d become v e r y strongly marked. A t 8'45 p.m. t h e y r e t u r n e d w i t h t h e executive of t h e National Union of Railwaymen. A prolonged conference then took place, t h e P r i m e Minister being accompanied b y Mr. Bonar Law. Mr. Thomas, who spoke on behalf of t h e railwaymen, was obviously labouring u n d e r considerable emotion and suffering from g r e a t fatigue. I n a long preliminary s t a t e m e n t , in t h e course of which he spoke of t h e solidarity of his men a n d t h e success of t h e Strike, t h e only concrete otfer was t h a t he would order t h e S t r i k e off if t h e Government would, in t h e question of s t a n d a r d i s a t i o n , apply the same principle t h a t t h e Government h a d applied in t h e case of t h e drivers and firemen. If he a t t e m p t e d to order t h e S t r i k e off on a n y t h i n g less t h e men, he said, would accuse their E x e c u t i v e oi ' selling them." The P r i m e Minister, in reply t o this, said a t once t h a t he did not t h i n k t h a t Mr. Thomas's observations had advanced t h e m a t t e r one step. I t left t h e position exactly where it was. I n view of Mr. Thomas's remarks, he pointed out how t h e facilities a t t h e disposal of t h e G o v e r n m e n t were increasing every day and t h e country was becoming less paralysed. Each d a y t h e trains r u n n i n g exceeded, t h e forecast. He indignantly repudiated t h e s t a t e m e n t by Mr. Thomas t h a t some of his colleagues h a d been less anxious for a s e t t l e m e n t t h a n he. lie elaborated t h e point t h a t , while t h e S t r i k e continued, t h e Ministers mostly concerned m u s t p u t all t h e i r energies into t h e work of feeding t h e country, including t h e 600,000 railwaymen, with their wives a n d families, therefore t h e first essential step in t h e resumption of negotiations is t h a t t h e railwaymen should go back to work. " Because you cannot let the country starve whilst Ministers a n d railwaymen are discussing w h a t wages will be paid n e x t y e a r . " From t h i s point on t h e conference consisted mainly in incessant a t t e m p t s by Mr. Thomas to bring it to t h e stage of negotiations which were repulsed by t h e P r i m e Minister. These proceedings do not lend themselves to s u m m a r y , more particularly as a large p a r t of t h e m consisted in disputes as to what h a d occurred a t t h e previous conferences, w i t h frequent references t o t h e s h o r t h a n d notes of those conferences. Once or twice it looked as if t h e conversations m u s t be broken off, b u t Mr. Thomas kept r e v e r t i n g to t h e folio wing sentence in the P r i m e M i n i s t e r s opening s t a t e m e n t : " W e deny there is a n y difference in t h e principle applied," which, he said, offered a r a y of hope. On each occasion this phi-ase was quoted to t r y a n d draw the P r i m e Minister again into " negotiations," b u t w i t h o u t success. Towards t h e end Mr. Gosling intervened again, and suggested t h a t t h e representatives of the various t r a d e unions should be left to discuss the m a t t e r together. This was agreed to, and t h e conference adjourned a t 9"40 P.M. A t about 11 "30 P.M. Mr. Gosling's D e p u t a t i o n , leaving t h e railwaymen in t h e Cabinet room, waited on t h e P r i m e Minister in a n adjoining room. I n t h e course of a long a n d somewhat r a m b l i n g s t a t e m e n t Mr. Gosling m a d e t h e proposal t h a t an a t t e m p t should be m a d e to establish w h a t t h e principle was on which t h e locomotive men's wages h a d b e e n fixed. If t h e r e was no difference of opinion as to w h a t principle had been adopted, : t h e m a t t e r should be referred to t h e arbitration of some independent body.' W h e n t h e principle bad been established i t should be applied t o t h e whole of t h e remaining grades. The P r i m e Minister pointed out t h a t this would inevitably lead t o misunderstanding. The men would go back t o work u n d e r t h e belief t h a t t h e principle claimed b y Mr. Thomas w a s to be applied to their cases, a n d if Mr. Thomas's principle was upset t h e y would say t h e y h a d been sold and t h e trouble would begin all over again. There was no more reason for a d o p t i n g Mr. Thomas's formula in t h i s way as a basis t h a n t h e G o v e r n m e n t s formula. After a long discussion of detail, t h e following e x t r a c t s from Minutes of a m e e t i n g w h e n t h e locomotive's men's wages were u n d e r discussion was p r o d u c e d : — " Sir Robert Home : T h e proper question from m y point of view is : A r e you going or are you n o t going to use w h a t is done in t h e case of t h e driver, t h e cleaner, and t h e firemen as a guide as t o w h a t is to be done in t h e other g r a d e s ? " Mr. J. H. Thomas : I a m prepared t o deal w i t h t h e other grades on the merits of t h e case as I will deal w i t h these, a n d I am able to say I believe a n equal!v formidable case with regard to those grades as I hope to show with t h i s one." " The D e p u t a t i o n were considerably impressed by this s t a t e m e n t , and Mr. A r t h u r H e n d e r s o n took a copy to show t o Mr. Thomas. After rejoining t h e railwaymen for a short time Mr. Gosling r e t u r n e d to say t h a t t h e y felt t h e y could g e t no further t h a t night, and t h a t t h e y would like to resume t h e discussion in t h e morning. The m e e t i n g adjourned a t 12"40 A.M. Soon after noon to-day (3rd October) Mr. Gosling's Deputation, which had already h a d a meeting with t h e railwaymen, again m e t t h e P r i m e Minister a n d Mr. Bonar Law. T h e y h a d two proposals t o m a k e ; first, t h a t t h e Government should raise t h e minimum wage from 40s. to 50s., a n d second, t h a t t h e r e should be no change in t h e r a t e s of wages before t h e 31st December, 1921. The Prime Miuister could n o t accede to t h e raising of t h e minimum, for, as h e pointed out, where t h e r a t e s of p a y of t h e different grades are separated by such small amounts, it is impossible t o raise t h e m i n i m u m w i t h o u t raising all t h e other g r a d e s proportionately, otherwise t h e ladder of promotion is interfered w i t h ; moreover, t h i s was really dragging t h e G o v e r n m e n t into negotiation before t h e essential condition of t h e men r e t u r n i n g to work was fulfilled. Mr. H e n d e r s o n r a t h e r r e s e n t e d this rejection of t h e first proposal, and suggested t h a t it w a s b a n g i n g t h e door in t h e face of t h e Deputation. Mr. Williams, however, intervened at this point a n d strongly suggested t h a t t h e offer of t h e Deputation was n o t their last word. I n fact, t h e r e was a chorus against suggesting t h a t t h e last word h a d been uttered. Mr. Williams t h e n w e n t on to suggest t h a t t h e essential point really was to obtain an extension of t h e time d u r i n g which t h e present r a t e s of wages were to be paid. o