(c) crown copyright Catalogue Reference:CAB/23/62 Image Reference:0008 [^gJ^CUMENT I S THE PROPERTY OF H I S BRITANNIC M A J E S T Y S 1 j j ^ R S T. GOVERNMENT). Copy No. C A B I N E T 45 (29) . CONCLUSIONS o f a M e e t i n g o f t h e C a b i n e t h e l d i n t h e P r i m e M i n i s t e r ' s Room, H o u s e o f C o m m o n s , o n WEDNESDAY, 3 0 t h O c t o b e r , 1929, a t 4.15 p.m. PRESENT:The R i g h t Hon. P h i l i p Snowden, M . P . , C h a n c e l l o r of t h e E x c h e q u e r . (Acting Prime M i n i s t e r ) . line R i g h t H o n . Arthur H e n d e r s o n , M . P . , Secretary of S t a t e f o r Foreign A f f a i r s . The R i g h t Hon. J.H. Thomas, M.P., Lord Privy Seal. Ilhe R i g h t H o n . Lord P a s s f i e l d , S e c r e t a r y o f State for Dominion A f f a i r s and Secretary of S t a t e for the Colonies. The R i g h t Hon. L o r d Parmoor of F r i e t h , \ K.C.V.O.,K.C., Lord President of the Council. fThe R i g h t H o n . Lord S a n k e y , G . B . E . , Lord C h a n c e l l o r . The R i g h t Hon. J.R. Olynes, M.P., Secretary o f S t a t e f o r Home A f f a i r s . [The R i g h t H o n . W. Wedgwood B e n n , D . S . O . , D.F.C.,M.P., Secretary of S t a t e f o r I n d i a . The R i g h t Hon. Tom S h a w , C . B . E . . M . P . , S e c r e t a r y of S t a t e f o r War. [Brig.-Gen. The R i g h t Hon. Lord Thomson, C . B . E . , D . S . O . , S e c r e t a r y of S t a t e f o r Air, The R i g h t Hon. A r t h u r Greenwood, M . P . , M i n i s t e r of H e a l t h . [The R i g h t H o n . Margaret Bondfield, Minister of Labour. The R i g h t Hon. Noel Buxton^ M.P., M i n i s t e r of A g r i c u l t u r e and F i s h e r i e s . M.P., The R i g h t H o n . Sir Charles Trevelyan, M.P., P r e s i d e n t of the Board of E d u c a t i o n . Bt., The R i g h t Hon. W i l l i a m Graham, M . P . , P r e s i d e n t of t h e Board of Trade. The R i g h t Hon. W i l l i a m Adamson, M . P . , S e c r e t a r y of S t a t e f o r Scotland, The R i g h t H o n . A . V . A l e x a n d e r , M.P..., F i r s t L o r d of t h e Admiralty.' The R i g h t Hon. George Lansbury, M . P . , F i r s t Commissioner of ^orks. S i r M.P.A. Hankey, G . C . B . , G.G.M.G Secretary, $ BRITISH OAL INDUSTRY. previous Reference: Cabinet 4 2 (29), Oon­ olusion 2 . ) 1. The C a b i n e t h a d to the of Trade regard attitude should to the A s s o c i a t i o n and connection President the of Parliament t o make a \7hile the President adopt i n t h e House transmission Cabinet were that Board of to the connected with the that it officially proceeding, out, would be while the Cabinet in the Mining In this the the Cabinet to negotiations and a c c o r d i n g l y large mining a mistake in a in position 31st. confidential of p e r s o n s o Board Commons October their Q regard Trade had announced which must have reached leak the reminded t h a t on T h u r s d a y , recognising that in Federation. proposals, felt of he w o u l d p r o b a b l y b e statement would p r o b a b l y of approved by the the Miners' the discussion which policy same m o r n i n g f o r a short 9 a numbers industry, nevertheless announce were still a g r e e d -— T h a t t h e P r e s i d e n t o f t h e B o a r d of' T r a d e s h o u l d i n f o r m t h e House of Commons t h a t n e g o t i a t i o n s w i t h b o t h p a r t i e s were s t i l l proceeding. them SALE OP ARMS Aid AMMDNITION. (Previous Reference'. Cabinet 42 (29), Con­ elusion 7.) to 2. The C a b i n e t the decision reference while to discussion t h e y had taken the sale reaffirming of that of war private stores Governments. same m o r n i n g emphasised it sales that should This, to was known t h a t intended for in and, Governments. to preclude unless so p u r c h a s e d were regard t h e War O f f i c e foreign intended contractors in arms and ammunition, decision, any d e a l i n g s w i t h however, was not stores short the in the disposal avoid had a foreign the 3 . The the Cabinet Financial CP.-276 Council tion. out Secretary (29)) subject In this the operative, to t h e m a Memorandum b y the War O f f i c e Conven-r­ Memorandum t h e Army C o u n c i l pointed of would be and t h a t Invariably prefer their the that Convention, Imports outside disclose of war given to publicity the Convention, of v i t a l by placing to In these suoh interests but also to of country our rather the that States Lord the of to producing give the itself the while that the until assuredo Council Government assured to in the regard ratify inconsistent Army C o u n c i l , supporting that That no a c t i o n was this principal announcement by the effective Convention by a l l of t h e safeguard workpeople, Convention was not policy urged Cabinet, to and our has been Cecil's the intention Arms T r a f f i c than only to Convention ratify The L o r d P r e s i d e n t Cabinet not trade ratification arms-producing which importance t h e Army C o u n c i l u r g e d should not simultaneous the placing transactions. render operation, with would such orders w i t h circumstances, the the wide avoid p u b l i c i t y by S t a t e s which have bound themselves to material non-producing States information themselves In when orders with those producing States remain Army Arms T r a f f i c effect of t h e b y n o n - p r o d u c i n g S t a t e s w o u l d be publicity (Paper c o v e r i n g a Memorandum b y t h e on t h e that had before policy, necessary. and agreed - EDUCATION. The V o l u n t a r y School Problem. 4. T h e C a b i n e t by the President (Paper (Reference C a b i n e t 20 OP P . - 2 9 0 Voluntary President the following of the of Problem. the them a Board ( 2 9 ) ) on t h e School the had before of Memorandum Education subject In this of the Memorandum Board of E d u c a t i o n reached conclusion:- I, therefore, propose to adhere t o our p r e s e n t p o s i t i o n and t o r e p l y t o a l l p r e s s u r e t h a t t h e Labour Government a r e u n a b l e t o u n d e r t a k e t o a l t e r t h e s e t t l e m e n t of 1 9 0 2 u n t i l the main p a r t i e s interested h a v e come t o s o m e s o r t o f a g r e e m e n t , and t h a t i t i s i m p o s s i b l e to s u g g e s t a p a r t i a l a l t e r a t i o n of t h e e x i s t i n g system u n l e s s the whole p o l i c y is agreed upon; that the experience of t h e l a s t 2 5 y e a r s h a s f r e e d e d u c a t i o n a l p r o g r e s s from t h e b i t t e r n e s s of the r e l i g i o u s c o n t r o ­ v e r s y which marked t h e p r e c e d i n g decade; t h a t the dual system has however caused great difficulties and complications for educational administrators, while i t has failed t o satisfy the ardent denomlnation­ a l i s t s o r t h o s e who w a n t c o m p l e t e public control; that the situation i s p e r h a p s o n e w h e r e t h e good s e n s e and absence of r e l i g i o u s b i t t e r n e s s of t h e p r e s e n t moment m i g h t l e a d t o t h e e v o l v i n g o f some a g r e e d s o l u t i o n ; and t h a t i f t h e Government were approached by r e p r e s e n t a t i v e s of any of t h e main p a r t i e s c o n c e r n e d t h e y would do t h e i r b e s t t o s e e whether an a u t h o r i t a t i v e national conference could be brought together i n the hopes of f i n d i n g a s o l u t i o n . On t h e would understanding that not be definite reopened g^e-posals except f-rem t h e the 1 9 0 2 settlement on t h e receipt interested of parties, The C a b i n e t a p p r o v e d t h e g e n e r a l lines suggested by the President of t h e Board of E d u c a t i o n . a­ - POLITICAL SITUATION I N INDIA. (previous Reference. Cabinet 37 (29), Conoluslon 4 . ) 5. The Cabinet gave consideration to a letter from Mr Baldwin to the Acting Prime Minister indicating that he w a s now opposed to the statement of policy (which he had previously approved) to be made b y the V i c e r o y on the morrow, and asking that it should be postponed at any rate until after the Prime Minister's return. The new factor w h i c h had moved M r Baldwin, after consultation with his colleagues, to reverse his previous attitude and to make this request was the opposition of Sir John Simon and his Commis­ sion w h i c h had developed subsequent to M r B a l d w i n s agreement to the proposed statement. In the course of full explanations on the subject the Secretary of State for India and the A c t i n g Prime Minister read the correspondence w i t h M r Baldwin and Sir John Simon, as w e l l as the telegrams exchanged w i t h the Viceroy. The Secretary of State for India undertook to circulate for information a full account of the somewhat complicated circumstances, including the text of the various documents, w h i c h accord­ in gly are not reproduced in these Minutes. The Cabinet felt that it would be impossible in the time available to make the Prime Minister fully conversant b y cypher radiogram w i t h all the circumstances of the case, and that they must themselves take the responsibility of a decision. Having regard to the strong view of the V i c e r o y against any alteration in the statement . and against any delay i n its publication w h i c h would dislocate a political situation in India w h i c h had b e e n carefully prepared, the Cabinet agreed — (a) T h a t t h e r e should be no a l t e r a t i o n i n t h e programme a l r e a d y approved a n d t h a t t h e S e c r e t a r y of S t a t e f o r India should immediately notify the Viceroy accordingly: (b) That t h e A c t i n g Prime M i n i s t e r s h o u l d make s u c h c o m m u n i c a t i o n a s h e deemed a d v i s a b l e t o Mr B a l d w i n and S i r J o h n Simon t o i n t i m a t e t h a t t h e Cabinet could not agree t o the request for delay, which in ordinary circumstances would have been a most reasonable proposal: (o) To l e a v e i t t o t h e A c t i n g P r i m e M i n i s t e r and t h e S e c r e t a r y of S t a t e f o r I n d i a t o d e a l w i t h a r e q u e s t from Mr B a l d w i n ( w h i c h w a s r e c e i v e d j u s t a s t h e Cabinet was about t o d i s p e r s e ) t o have a copy f o r the use of h i s c o l l e a g u e s and h i m s e l f of t h e t e l e g r a m which was sent b y t h e A c t i n g Prime M i n i s t e r and t h e S e c r e t a r y of S t a t e f o r I n d i a to the Viceroy. ED POLICY. Previous Reference: 1(29), C o n ­ fclusion 1(a).) 6. The Cabinet bad before the President 289 (29)) in of at that should in defiance Consumers' for the that it to of t h e would be Cabinet, that the adoption he were of measures refuse Council commodities of for the the the in the to there will necessary for of time in addition to to inform the views to the retail for policy of p r i c e by the inter­ the of t h e Council. required of the Parliament consideration Consum­ prices for This would the consideration t h e m a c h i n e r y t o be c a r r y i n g out t h e year, dealing with trade accept to suggested on r e c o m m e n d a t i o n s further legisla­ next Trade if, be decision until authorised regard proposed 7 of prices already been approved reviewed by the details obtaining Cabinet s Council sufficient Government b a s e d give of Government have, u n d e r ests which ers' the Board announcement which had the margin interests Assuming t h a t a Consumers' President for C. P . - the the dealing with introduoe effect in of in charging exoessive Council. give (Paper request of recommendations no o p p o r t u n i t y t o establish to the Trade submit proposals which might p e r s i s t to of the meeting mentioned compulsory powers tion Board response Cabinet he the t h e m a Memorandum b y established fixing. The C a b i n e t a p p r o v e d t h e p r o p o s a l s of t h e P r e s i d e n t of t h e Board of Trade. 6. k POLICY. I Previous Reference: Satinet 3 9 129), C o n ­ llusion 1 ( a ) . ) The C a b i n e t h a d b e f o r e the President 289 (29)) Cabinet that in at of the response he should in defiance Consumers' the for give it for margin obtaining interests of the Assuming t h a t to a Consumers' of t h e would be the the dealing with introduce effect of i n charging exoessive Council. President that ( P a p e r C. P . ­ request of recommendations no o p p o r t u n i t y t o establish to the Trade submit proposals which might p e r s i s t to of the meeting mentioned in compulsory powers tion Board t h e m a Memorandum b y the the sufficient leglsla­ next Cabinet, that the adoption he were suggested, in addition to e s t s which refuse Government b a s e d ers' Council commodities give the of for authorised Government h a v e u n d e r of measures in to for to inform consideration the views of on recommendations regard to the further the d e t a i l s time required This Consum­ p o l i c y of p r i c e for the would consideration o f t h e m a c h i n e r y t o be c a r r y i n g out t h e the inter­ retail prices for by the of t h e reviewed by the Council. the Parliament dealing with trade aocept to year, announcement which had a l r e a d y been approved the be decision Trade if, will necessary Council u n t i l of proposed there Cabinet's Board prices established fixing. The C a b i n e t a p p r o v e d t h e p r o p o s a l s of t h e P r e s i d e n t of t h e Board of Trade. THS MOTOR VEHICLES (UNAUTHORISED USER) B I L L . (Previous Reference: C a b i n e t 36 (29) Con­ c l u s i o n 2 and Appendix.) ? 7. The C a b i n e t h a d b e f o r e t h e Home S e c r e t a r y Vehicles (29)) t h e m a Memorandum b y covering a draft (Unauthorised User) Bill Motor (Paper t o g e t h e r with t h e recommendations Committee o f Home A f f a i r s Conclusions (29), thereon Paragraph In accordance with these Cabinet agreed H.A.-27 of (H.A.C. the 10th l). recommendations the — (a) To a p p r o v e t h e i n t r o d u c t i o n f o r t h w i t h i n t h e H o u s e o f Commons o f t h e M o t o r Vehicles (Unauthorised User) B i l l i n t h e form of t h e r e v i s e d d r a f t annexed t o H . A . - 2 7 (29), s u b j e c t t o any d r a f t i n g or o t h e r minor a i t e r a ­ t i o n s t h a t may b e f o u n d n e c e s s a r y or desirable: (b) That the Attorney-General should be invited to undertake the conduct o f t h e B i l l i n t h e H o u s e o f Commons. n or Solicitor-General. ^LOYMENT 8 . The C a b i n e t h a d b e f o r e SORANOE. (Paper previous Reference: Cabinet 4 0 (29), C o n ­ olusion 1 . ) C.P.-298 Chancellor (29)) After referred summing up t h e improve t h e finance in ensure order to and t h e i r the of t h e of t h e Exchequer L a b o u r on p o i n t s them a decisions effect; after Chancellor had agreed t h a t Exchequer in should be dated back to April benefit added to to to the on t h e cost t o that stated of t h e E x c h e q u e r h a d come t o he could not agree Exchequer charge involved, and t h a t possible to provide it it the for the in stated giving general that difficulties would t h e r e f o r e later occasion. in the the authority House is the not of that the sums not of the which accepted* proposed to t r a i n i n g and removal expenses would add the the Chancellor a view of Labour r e l u c t a n t l y clause to after large reduction days — further of conclusion was a c c o r d i n g l y The R e p o r t for that he had and though and above t h e waiting period to three the Minister scales of which the the benefit the to any i n c r e a s e over on approach near to statutory limit (£40,000,000) to'reach it, Report that end of t h e w i n t e r Fund m i g h t w e l l likely actuall^the charge the Exchequer; by the benefit, 1929,and that improve young p e r s o n s , both p o i n t i n g out debt to agree Fund of of t r a n s i t i o n a l 1, to stating the of Cabinet. already taken continued payment respect the them by the of t h e Unemployment financial was p r e p a r e d of and t h e M i n i s t e r to steps Memorandum provide greatly Commons have t o be postponed u n t i l and a The M i n i s t e r of L a b o u r i n t i m a t e d he necessary for her t o ask for of t h e Cabinet on Monday n e x t of t h e Unemployment a s k e d t o make a n e f f o r t time for consideration arranged for Friday to at for 1924, by the explaining to additional the alter Whitehall. Gardens, October 30, the reduction of his S. W. 1 , 1929. days would b e Liberal in as it Cabinet of financial burden, extent the more p a r t i c u l a r l y Insurance, which had a l r e a d y assumed, decision. had Opposition. after the very Parliament of t h e Exchequer, c o n n e c t i o n w i t h Unemployment Government in already of hand might be f o r c e d , The C h a n c e l l o r Bill failure own s u p p o r t e r s been in three the unwelcome their she was the the Meeting to and t h a t but circulate the waiting period their Meeting afternoon. Government t o p r o v i d e to might consideration Bill, The C a b i n e t w e r e w a r n e d t h a t the it a Special for Insurance that was u n a b l e to in the