(c) crown copyright
Catalogue Reference:CAB/23/9
Image Reference:0025
[This Document is the Property of His Britannic Majestys Government.]
Printed
for the War
Cabinet.
March
1919.
SECRET.
WAR
Minutes
of a Meeting
of ihe War
CABINET
Cabinet
February
held
538.
at 10, Downing
Street,
S.W.,
on
Friday
2 8 , 1 9 1 9 , at 11*30 A . M .
Present:
T h e P R I M E MINISTER (in the
Chair).
The
R i g h t H o n . t h e E a r l CTJRZOX OF j T h e R i g h t H o n . A . BONAR L A W , M . P
KEDLESTON, K . G . , G . C . S . I . , G . C . I . E .
T h e R i g h t H o n . A . CHAMBERLAIN, M . P .
The following w e r e also p r e s e n t :
The R i g h t H o n . W . S . CHURCtiiLL, M . P . , T h e R i g h t H o n . S i r A . C. GEDDES, K . C . B . ,
S e c r e t a r y of S t a t e for W a r (for M i n u t e s j
M . P . , M i n i s t e r of R e c o n s t r u c t i o n a n d
1 and 2).
National Service.
The R i g h t
Hon. S i r
A.
STANLEY,
M . P . , j The R i g h t
The Right
M/
Right
Hon.
Sir
L.
K.C.B.,
for H o m e
T h e R i g h t H o n . T . J . MACNAMARA, L L . D . ,
M.P., Financial Secretary, A d m i r a l t y
(for M i n u t e 8 ) .
Assistant
S e c r e t a r y , W a r Office (for M i n u t e 8 ) .
B r i g a d i e r - G e n e r a l W . ' M. S T . G. K I R K E ,
C.M.G., D.S.O., D e p u t y Director' of
M i l i t a r y Operations (for M i n u t e s 1
and 2 ) .
M r . THOMAS JONES, Acting
Secretary.
M r . PEMBROKE W I C K S , Assistant
Secretary.
L i e u t e n a n t - C o l o n e l L . S . STORR, C . B . , Assistant
C a p t a i n L . F . B O R G I S , Assistant
M r . G. M. E V A N S , Assistant
[826]—278
Affairs
T h e R i g h t H o n . S i r J . MACLAY, B a r t . ,
S h i p p i n g Controller (for M i n u t e s 1, 2,
and 3).
WORTHINGTON
EVANS, B a r t . , M . P . , M i n i s t e r of P e n s i o n s
(for M i n u t e 8 ) .
S i r CHARLES HARRIS,
SHORTT, K . C . , M . P . ,
State
(for M i n u t e s 3 , 5, a n d 6 ) .
T h e R i g h t H o n . W . LONG, M . P . , F i r s t
Lord of t h e A d m i r a l t y .
H o n . S i r R. S. H O R N S , K . B . E . ,
K . C . , M i n i s t e r of L a b o u r (for M i n u t e s 5
and 6).
The
H o n . E.
S e c r e t a r v of
P r e s i d e n t , B o a r d of T r a d e (for M i n u t e s
3-6).
Secretary.
Secretary.
Secretary.
B
Industrial Unrest:
The Shipping
Position.
1. T h e S h i p p i n g Controller said t h a t w i t h r e g a r d to t h e q u e s t i o n
of t h e t r a n s p o r t of Polish divisions, h e w i s h e d t o t a k e t h i s opport u n i t y of d r a w i n g t h e a t t e n t i o n of t h e W a r C a b i n e t t o t h e p r e s e n t
position in r e g a r d to t h e o u t p u t of shipping. W e h a d been, a n d
w e r e being, faced w i t h a series of v e r y serious s t r i k e s , a n d u n l e s s
s o m e t h i n g could be done to r e l i e v e t h e s i t u a t i o n , the o u t c o m e m u s t
be most g r a v e . T h e unrest affected p r a c t i c a l l y t h e w h o l e of t h o s e
e m p l o y e d in t h e s h i p b u i l d i n g a n d r e p a i r i n g i n d u s t r i e s , & c , e.g., t h e
b o i l e r m a k e r s , s h i p w r i g h t s , a n d t h e r i v e t e r s , &c. H e a n d h i s a d v i s e r s
h a d been doing t h e i r best to see w h e t h e r some a d j u s t m e n t w e r e not
possible. S o m e of t h e l e a d i n g s h i p b u i l d e r s w e r e in favour of a 4 4 - h o u r
w e e k . W h a t he felt w a s w a n t e d w a s a b i g g e r vision a n d a firmer
g r a s p of t b e w h o l e situation. A t p r e s e n t t h e loss of m o n e y to t h e
S t a t e a n d t h e d i m i n i s h e d o u t p u t in s h i p p i n g w a s v e r y g r e a t .
T h e P r i m e M i n i s t e r pointed out t h a t t h e A s s o c i a t e d S o c i e t y of
E n g i n e e r s a n d t h e Associated U n i o n s h a d r e c e n t l y a g r e e d t o a
4 7 - h o u r w e e k . This course h a d been a r r i v e d a t b y t h e U n i o n l e a d e r s
after a l o n g a n d t e d i o u s s t r u g g l e w i t h t h e e x t r e m i s t s . I n h i s v i e w
t h e G o v e r n m e n t m u s t support t h e U n i o n l e a d e r s w h o w e r e s t a n d i n g
b y t h e a g r e e m e n t . I t had j u s t been decided to s e t u p a n I n d u s t r i a l
Council consisting of r e p r e s e n t a t i v e s of t h e e m p l o y e r s a n d t h e m e n ,
to e x a m i n e all questions of hours, w a g e s , control, a n d o t h e r factors
affecting t h e s i t u a t i o n , a n d he w a s of t h e opinion t h a t n o i s o l a t e d
a c t i o n could be t a k e n to relieve t h e s h i p p i n g position. I t w o u l d be
for t h e Council to include in t h e i r i n v e s t i g a t i o n a n e x a m i n a t i o n of
t h e s h i p p i n g s i t u a t i o n . A t t h e s a m e t i m e i t w o u l d be w e l l if t h e
S h i p p i n g Controller discussed t h e m a t t e r w i t h t h e M i n i s t e r of
Labour.
Transport of Polish
Divisions.
s
2. T h e W a r C a b i n e t h a d before t h e m F o r e i g n Office t e l e g r a m s
Nos. 3 7 4 a n d 3 7 7 of t h e 2 5 t h F e b r u a r y , a n d N o . 3 7 9 of t h e 2 6 t h
F e b r u a r y , from P a r i s , u r g i n g t h a t i m m e d i a t e s t e p s s h o u l d be t a k e n
to provide B r i t i s h s h i p p i n g for t h e t r a n s p o r t t o P o l a n d of t h r e e Polish
divisions now i n F r a n c e .
T h e S h i p p i n g Controller s a i d t h a t it w a s impossible t o find t h e
n e c e s s a r y s h i p p i n g unless i t w e r e w i t h d r a w n from o t h e r services.
A s h e h a d a l r e a d y pointed out (vide M i n u t e 1 ) , s h i p p i n g h a d been
i m m e n s e l y r e t a r d e d b y strikes. C a r g o ships w e r e not s u i t a b l e for
t h e t r a n s p o r t of troops. Most of o u r a v a i l a b l e s h i p p i n g s u i t a b l e
for t h e purpose w a s a l r e a d y locked u p for t h e purpose of r e p a t r i a t i n g
A m e r i c a n , N e w Zealand, a n d A u s t r a l i a n soldiers. I n r e p l y to a n
e n q u i r y a s t o w h e t h e r c e r t a i n ships n o w being u s e d for t h e r e p a t r i a t i o n
of A m e r i c a n t r o o p s could not be t e m p o r a r i l y d i v e r t e d for t h e
c o n v e y a n c e of t h e Polish divisions, S i r J o s e p h M a c l a y s a i d t h a t
t h e ships in q u e s t i o n w e r e u n s u i t a b l e a n d too b i g for t h e port
accommodation a t D a n t z i g . F r a n c e w a s v e r y k e e n on t h e c o n v e y a n c e
of t h e s e Polish troops, b u t w a s not in t h e l e a s t i n t e r e s t e d in t h e
q u e s t i o n of s h i p s . I t seemed to h i m t h a t M a r s h a l F o c h h a d
p r a c t i c a l l y d i s r e g a r d e d t h e s h i p p i n g position w h e n m a k i n g h i s
recommendations.
B y t h e t e r m s of t h e armistice, c e r t a i n G e r m a n m e r c h a n t ships
w e r e t o be h a n d e d over to us, b u t n o t h i n g h a d been done.
Further,
a good deal of s h i p p i n g w a s r e q u i r e d for t h e c o n v e y a n c e of food to
t h e e n e m y countries. So far he h a d refused t o d i v e r t our own s h i p s
for t h i s purpose u n t i l G e r m a n v e s s e l s were m a d e a v a i l a b l e . H e
s u g g e s t e d t h a t t h e b e s t w a y of c o n v e y i n g t h e Polish t r o o p s b a c k t o
t h e i r own c o u n t r y w o u l d be to send t h e m b y r a i l across G e r m a n y .
H e desired, further, to point out t h a t t r a n s p o r t s c o n v e y i n g troops to
A u s t r a l i a could b r i n g b a c k w h e a t a n d m e a t , w h i c h w a s m o s t u r g e n t l y
n e e d e d . The price of w h e a t in A u s t r a l i a w a s o n l y about h a l f t h a t
o b t a i n e d from t h e U n i t e d S t a t e s .
The S e c r e t a r y of S t a t e for W a r s a i d t h a t t h e r e w e r e m i l i t a r y
reasons a g a i n s t our t a k i n g e x t r e m e m e a s u r e s to force t h e G e r m a n s
to relinquish t h e i r m e r c h a n t s h i p p i n g . H e pointed out t h a t t h e
i m m e d i a t e provision of shipping for t h e convej ance of t h e Polish
divisions w a s n e c e s s a r y in order to g i v e effect to t h e policy of
H i s M a j e s t y ' s G o v e r n m e n t , winch w a s to create a s t r o n g P o l a n d .
For t h i s purpose i t w a s vital to c o n v e y these divisions to t h e i r own
c o u n t r y w i t h t h e l e a s t possible d e l a y .
In t h e view of t h e m i l i t a r y
a u t h o r i t i e s it w a s more i m p o r t a n t to g e t the Polish troops back
to P o l a n d t h a n t o complete t h e r e p a t r i a t i o n of A u s t r a l i a n and
N e w Z e a l a n d soldiers.
General K i r k e , in r e p l y to a question, said t h a t t h e n u m b e r of
t r a i n s r e q u i r e d for a division w a s from t h i r t y to forty. A s r e g a r d s
t h e S h i p p i n g C o n t r o l l e r s s u g g e s t i o n t h a t t h e troops m i g h t be sent
b y rail, h e understood t h a t M a r s h a l Foch bad considered t h i s
a l t e r n a t i v e , b u t h a d r e j e c t e d it a s impossible.
T h e Chancellor of t h e E x c h e q u e r doubted the wisdom of s e n d i n g
P o l e s b y r a i l t h r o u g h G e r m a n y , e s p e c i a l l y t h e north of G e r m a n y .
H e t h o u g h t t h a t such action would a l m o s t c e r t a i n l y be provocative.
The P r i m e M i n i s t e r said t h a t he a g r e e d w i t h the Chancellor t h a t
t h e despatch of troops t h r o u g h N o r t h e r n G e r m a n y might" c o n c e i v a b l y
c a u s e trouble, b u t he felt s t r o n g l y t h a t both F r a n c e a n d t h e
U n i t e d S t a t e s w e r e r a t h e r inclined to m a k e u s e of G r e a t B r i t a i n ,
a n d B r i t i s h s h i p p i n g in p a r t i c u l a r , for c e r t a i n purposes, w h i l e t h e y
r e s p e c t i v e l y c l a i m e d t h e credit for t h e services r e n d e r e d .
The
U n i t e d S t a t e s for i n s t a n c e , posed as t h e feeder of t h e C e n t r a l
E m p i r e s , but w i s h e d to use B r i t i s h shipping. F r a n c e a g a i n , posed
a s t h e r e c r e a t o r of P o l a n d , b u t w a n t e d our v e s s e l s in order t o c a r r y
o u t t h i s purpose. H e recognised t h e n e c e s s i t y of r e p a t r i a t i n g t h e s e
Polish troops, if possible, b u t in h i s v i e w we could not accept t h e
whole b u r d e n of t r a n s p o r t i n g t h e m . W e w e r e q u i t e w i l l i n g to do
our share, but i t m u s t be on the u n d e r s t a n d i n g t h a t both F r a n c e
a n d t h e U n i t e d S t a t e s w e r e prepared to m a k e contributions on t h e i r
part.
The W a r C a b i n e t w e r e a g r e e d a s to t h e d e s i r a b i l i t v of t r a n s ­
p o r t i n g t h e t h r e e P o l i s h divisions w i t h t h e least possible d e l a y , a n d
decided—
7
T h a t the A c t i n g S e c r e t a r y , in consultation w i t h t h e S h i p p i n g
Controller, should r e p l y to t h e t e l e g r a m s wmich h a d been
received from P a r i s in the sense t h a t H i s M a j e s t y ' s Govern­
m e n t , h a v i n g r e g a r d to t h e m a n y u r g e n t d e m a n d s w h i c h
w e r e b e i n g m a d e upon B r i t i s h s h i p p i n g a t t h e p r e s e n t
t i m e in connection w i t h t h e f e e d i n g of t h e C e n t r a l E m p i r e s ,
t h e r e p a t r i a t i o n of A m e r i c a n , A u s t r a l i a n , a n d N e w Z e a l a n d
troops, & c , w e r e u n a b l e to u n d e r t a k e t h e whole b u r d e n of
c o n v e y i n g t h e Polish divisions. H i s M a j e s t y ' s G o v e r n m e n t ,
h o w e v e r , w o u l d be p r e p a r e d to t a k e a s h a r e in f u r n i s h i n g
the necessary tonnage provided t h a t France and the
U n i t e d S t a t e s e a c h c o n t r i b u t e d a s u b s t a n t i a l proportion.
Aliens in Command
of British Ships.
3. T h e W a r C a b i n e t h a d before t h e m a M e m o r a n d u m b y t h e
P r e s i d e n t of t h e B o a r d of T r a d e ( P a p e r G . T . - 6 8 6 9 ) in w h i c h h e
s t a t e d t h a t d u r i n g t h e w a r t h e A d m i r a l t y h a d confined t h e issue of
Confidential R o u t e a n d S a i l i n g I n s t r u c t i o n s to m a s t e r s of m e r c h a n t
s h i p s who could be r e g a r d e d a s e n t i r e l y t r u s t w o r t h y a n d , as t h e y
found t h a t B r i t i s h m e r c h a n t vessels h a d i n some cases been c o m m a n d e d
before t h e w a r b y foreigners, t h e y h a d m a d e i t t h e i r practice to refuse
t o g i v e t h e s e C o n f i d e n t i a l I n s t r u c t i o n s to m a s t e r s who w e r e not
" B r i t i s h born of p a r e n t s who, a t t h e t i m e of t h e i r son's b i r t h , w e r e
t h e m s e l v e s B r i t i s h s u b j e c t s b y birth or b y n a t u r a l i s a t i o n . " I t w a s a n
e s s e n t i a l p a r t of t h e G o v e r n m e n t W a r R i s k s I n s u r a n c e S c h e m e t h a t
t h e m a s t e r of a m e r c h a n t s h i p insured u n d e r t h e S c h e m e m u s t o b e y
a l l A d m i r a l t j i n s t r u c t i o n s , a n d i t w a s a c c o r d i n g l y impossible for a
B r i t i s h s h i p o w n e r to g e t t h e G o v e r n m e n t W a r R i s k s I n s u r a n c e for
7
.' .
'
h i s vessel u n l e s s h e g a v e t h e c o m m a n d to a n officer who w a s i n
t h e c a t e g o r y of t h o s e w h o r e c e i v e d t h e A d m i r a l t y Confidential
I n s t r u c t i o n s . T h u s , a l t h o u g h t h e r e h a d been no s t a t u t o r y r e q u i r e ­
m e n t t h a t t h e c o m m a n d of a B r i t i s h s h i p should o n l y be in t h e h a n d s
of a B r i t i s h s u b j e c t e i t h e r before or d u r i n g t h e w a r , t h e command of
a B r i t i s h s h i p w a s in effect l i m i t e d to B r i t i s h s u b j e c t s d u r i n g t h e
w a r , w i t h c e r t a i n exceptions.
T h e P r e s i d e n t of t h e B o a r d of T r a d e s t a t e d t h a t it w a s pro­
posed, a f t e r a conference b e t w e e n t h e r e p r e s e n t a t i v e s of t h e B o a r d
of T r a d e , t h e A d m i r a l t y , a n d t h e M i n i s t r y of S h i p p i n g , a n d p e n d i n g
a fuller consideration of t h e g e n e r a l q u e s t i o n w h e t h e r i n p e a c e t i m e
B r i t i s h s h i p s should be a l l o w e d to be c o m m a n d e d by a l i e n s , to m a k e a
Defence of t h e B e a l m R e g u l a t i o n t h a t w o u l d m e r e l y effect d u r i n g
t h e r e m a i n d e r of t h e w a r t h e s a m e object a s w a s a c h i e v e d b y t h e
A d m i r a l t y in connection w i t h t h e issue of Confidential I n s t r u c t i o n s .
The following Defence of t h e B e a l m R e g u l a t i o n w a s proposed :—
" 37 D. A person s h a l l not, u n l e s s s p e c i a l l y a u t h o r i s e d for t h e
t i m e b e i n g b y t h e A d m i r a l t y or B o a r d of T r a d e , act in t h e
c a p a c i t y of m a s t e r or person in c h a r g e of a B r i t i s h m e r c h a n t
ship u n l e s s h e is a n a t u r a l - b o r n B r i t i s h s u b j e c t , a n d t h e son
of p a r e n t s both of w h o m w e r e a t t h e t i m e of h i s birth e i t h e r
n a t u r a l - b o r n B r i t i s h s u b j e c t s or B r i t i s h s u b j e c t s b y n a t u r a l i s a ­
tion ; a n d if a n y person a c t s in c o n t r a v e n t i o n of t h i s R e g u l a t i o n
h e s h a l l be g u i l t y of a s u m m a r y offence a g a i n s t t h e s e
Regulations."
S i r A l b e r t S t a n l e y s t a t e d t h a t it w a s also proposed t h a t t h e
A d m i r a l t y C o m m i t t e e for considering t h e s e q u e s t i o n s s h o u l d con­
t i n u e , a n d t h a t an officer of t h e B o a r d of T r a d e should be a p p o i n t e d
a s a m e m b e r of t h e C o m m i t t e e .
T h e F i r s t L o r d s t a t e d t h a t h e concurred in t h e proposed action.
T h e W a r C a b i n e t a p p r o v e d t h e Defence of t h e R e a l m R e g u l a t i o n
a s proposed b y t h e P r e s i d e n t of t h e B o a r d of T r a d e , a n d
also t h e a d d i t i o n of an officer of t h e B o a r d of T r a d e a s a
m e m b e r of t h e A l i e n M a s t e r s C o m m i t t e e .
Transference of
Functions of the
W a r Trade Depart­
meut to the Board
of Trade.
4. T h e W a r C a b i n e t h a d before t h e m a M e m o r a n d u m b y t h e
P r e s i d e n t of t h e B o a r d of T r a d e ( P a p e r G . T . - 6 8 8 3 ) in w h i c h h e
stated t h a t Lord Emmott and Sir N. Highmore desired to retire
from t h e W a r T r a d e D e p a r t m e n t a t t h e end of M a r c h .
T h e P r e s i d e n t of t h e B o a r d of T r a d e said t h a t t h e a d m i n i s t r a t i v e
w o r k of t h e d e p a r t m e n t m u s t c o n t i n u e so l o n g a s t h e r e w e r e a n y
prohibited e x p o r t s . A s t h e t r a n s f e r e n c e of W a r T r a d e D e p a r t m e n t
functions to t h e B o a r d of T r a d e w a s desirable a t an e a r l y d a t e , in
order t h a t t h e a m a l g a m a t i o n w i t h t h e R e s t r i c t i o n of I m p o r t s
D e p a r t m e n t a l r e a d y u n d e r t h e B o a r d of T r a d e m i g h t b e possible, h e
a s k e d t h e sanction of t h e W a r C a b i n e t t o m a k e t h e c h a n g e w i t h o u t
delay.
The W a r Cabinet approved—
T h e t r a n s f e r e n c e of t h e functions of t h e W a r T r a d e D e p a r t m e n t
' t o t h e B o a r d of T r a d e .
Possible Goal
Strike and Unem­
j)loYinent Donation,
,:
5- T h e W a r C a b i n e t h a d before t h e m a M e m o r a n d u m by t h e
M i n i s t e r o f L a b o u r ( P a p e r G . T . - 6 8 8 2 ) r e l a t i n g t o t h e q u e s t i o n of
w h e t h e r u n e m p l o y m e n t donation should be paid t o workpeople, w h o
became u n e m p l o y e d i n consequence o f coal s t r i k e .
T h e M i n i s t e r of L a b o u r s t a t e d t h a t t h e p r e s e n t p r a c t i c e
followed t h e r u l e s g o v e r n i n g u n e m p l o y m e n t i n s u r a n c e ; w o r k p e o p l e
r e n d e r e d u n e m p l o y e d b y a t r a d e d i s p u t e d i d not g e t u n e m p l o y m e n t
benefit if t h e y w e r e persons e m p l o y e d i n t h e e s t a b l i s h m e n t i n which
t h e d i s p u t e took place, w h e t h e r or not t h e y d e l i b e r a t e l y w e r e t a k i n g
p a r t in it. T h e donation, h o w e v e r , w a s p a y a b l e to workpeople in
o t h e r e s t a b l i s h m e n t s , w h o w e r e t h r o w n out of work as a n i n d i r e c t
r e s u l t of a t r a d e d i s p u t e .
The P r i m e M i n i s t e r said t h a t , i n the event of a s t r i k e , t h e
G o v e r n m e n t w o u l d h a v e to feed t h e whole community, a n d it w a s
probable t h a t t h e u n e m p l o y m e n t benefit w o u l d be paid in food i n s t e a d
of in cash. I t w a s desirable t h a t some scheme should be w o r k e d out
b y w h i c h people received food on t h e presentation of a coupon.
A r r a n g e m e n t s w o u l d h a v e to be m a d e so t h a t it w o u l d b e possible,
in t h e d i s t r i b u t i o n of food, to differentiate between those m e n on
s t r i k e , a n d persons out of work t h r o u g h no fault of t h e i r own.
The W a r C a b i n e t d e c i d e d —
T h a t t h e I n d u s t r i a l U n r e s t C o m m i t t e e should consider a s c h e m e
b y w h i c h , in t h e event of a s t r i k e , and t h e r e s p o n s i b i l i t y
for f e e d i n g t h e c o m m u n i t y falling on t h e Government,
coupons for food m i g h t be u s e d in p a r t or in whole p a y m e n t
of t h e u n e m p l o y m e n t donation.
Unemployment
Donation:
Reduction of Scale.
6. W i t h reference to a decision of t h e H o m e Affairs C o m m i t t e e
( 2 0 t h M e e t i n g , M i n u t e 2) to r e d u c e t h e r a t e of u n e m p l o y m e n t
benefit from 2 9 s . to 1 8 s . for men, a n d from 2 5 s . to 1 5 s . for women,
t h e M i n i s t e r of L a b o u r s t a t e d t h a t h e h a d , after consultation w i t h
t h e P r i m e M i n i s t e r a n d Mr. B o n a r L a w , a g r e e d to a less d r a s t i c
reduction of the m e n ' s scale, viz , to 2 0 s . instead of l b s .
The W a r C a b i n e t g a v e t h e i r a p p r o v a l to t h e revision.
Supplementary
and other
Assistance to the
Armies of Occupa­
tion.
7. The W a r Cabinet took note of the following decisions of the
Soldiers' and Sailors' Pay Committee (Paper G.T.-6876) on the subject
of supplementation and other assistance to the Armies of Occupation:—
W a r Bonus on
Officers' Retiied
Pay.
8. The W a r C a b i n e t h a d u n d e r consideration a M e m o r a n d u m by
t h e M i n i s t e r of P e n s i o n s ( P a p e r G . T . - 6 8 9 4 ) containing proposals for:—
(a.) That the principle of supplementation would have to
continue in the case of men retained to form t h e Armies of
Occupation.
(b.) That the Minister of Pensions should undertake the
administration of supplementation.
( 1 . ) A w a r b o n u s on officers' r e t i r e d p a y a n d on t h e pensions of
officers' r e l a t i v e s .
(2.) A w a r bonus on t h e a l t e r n a t i v e pensions of m e n and m e n ' s
widows.
(3.) A n e x t e n s i o n of t h e w a r b o n u s t o l a s t p a y d a y in
September 1 9 1 9 .
S i r A u c k l a n d G e d d e s e x p l a i n e d t h a t t h i s question had been
r e f e r r e d to h i m a s C h a i r m a n of t h e S o l d i e r s ' and S a i l o r s ' P a y
C o m m i t t e e w i t h full p o w e r s of decision, b u t , in view of t h e Income
T a x concession t h a t h a d j u s t been m a d e b y t h e Chancellor of t h e
E x c h e q u e r , a n d in v i e w of t h e p r e s e n t falling prices, h e felt
t h a t he could n o t a g r e e to t h e p r o p o s a l s p u t f o r w a r d b y t h e
M i n i s t e r of P e n s i o n s . The l a t t e r h a d therefore felt it n e c e s s a r y t o
b r i n g t h e m a t t e r before t h e W a r C a b i n e t for t h e i r decision.
T h e C h a n c e l l o r of the E x c h e q u e r s a i d t h a t he h a d j u s t m a d e
t w o b i g concessions t o officers.
I n t h e first place, it h a d b e e n
c u s t o m a r y to c h a r g e Income T a x on t h e g r a t u i t i e s g i v e n t o officers
on demobilisation. O w i n g t o some l e g a l point, however, it a p p e a r e d
t h a t Income T a x could only be c h a r g e d a g a i n s t t e m p o r a r y officers
[826]-278
C
arid not a g a i n s t p e r m a n e n t officers, a n d h e therefore proposed to a s k
P a r l i a m e n t t o r e l i e v e t h e g r a t u i t i e s of a l l officers from Income T a x .
In t h e -second p l a c e , Income T a x w a s now c h a r g e d on D i s a b i l i t y
Pension.
H e took the view, however, t h a t a d i s a b i l i t y pension
should be r e g a r d e d as compensation for i n j u r y in e x a c t l y t h e s a m e
w a y a s t h e compensation g r a n t e d u n d e r t h e W o r k m e n ^ ; C o m p e n s a ­
tion A c t , a n d i t w a s his intention to r e l i e v e d i s a b i l i t y pensions of
t h i s c h a r g e . The e x p e n s e s e n t a i l e d in t h e proposals of t h e M i n i s t e r
of Pensions w a s considerable. I t a m o u n t e d , in t h e case of officers
a n d nurses, to £ 1 0 7 , 0 0 0 for t h r e e months, and about a f u r t h e r
£ 7 0 0 , 0 0 0 for t h e financial y e a r 1 9 1 9 - 2 0 .
A n o t h e r point h e w i s h e d
to p a t forward w a s t h a t he had been pressed to g i v e a bonus on all
C i v i l S e r v i c e pensions, b u t these r e p r e s e n t a t i o n s he h a d refused.
A
w a r bonus could not l o g i c a l l y be g i v e n on officers' pensions on t h e
g r o u n d s of t h e h i g h cost of l i v i n g , u n l e s s t h e W a r C a b i n e t w e r e also
p r e p a r e d t o g i v e a w a r bonus on t h e pensions of a l l G o v e r n m e n t
servants.
T h e M i n i s t e r of Pensions p o i n t e d out t h a t h i s proposals a s k e d
for a w a r bonus only on d i s a b i l i t y pensions.
F u r t h e r , t h e chief
a r g u m e n t for g r a n t i n g a w a r bonus w a s t h a t , w h e n a s i m i l a r bonus
h a d been g r a n t e d on t h e pensions of a l l m e n , i n N o v e m b e r l a s t ,
consideration of a w a r bonus on officers' pensions h a d b e e n deferred.
Officers, he t h o u g h t , should c e r t a i n l y be t r e a t e d e x a c t l y in t h e s a m e
w a y a s t h e men.
M r . B o n a r L a w s a i d t h a t no one r e a l i s e d b e t t e r t h a n he t h e
difficulties t h a t t h e Chancellor of t h e E x c h e q u e r h a d to contend w i t h .
A t t h e s a m e t i m e , he t h o u g h t t h a t t h i s concession w o u l d h a v e to be
g r a n t e d , a s q u e s t i o n s w e r e .certain to be r a i s e d in t h e H o u s e of
Commons on t h e m a t t e r , and i t w o u l d not be possible to resist t h e
d e m a n d . F u r t h e r , to h i s c e r t a i n k n o w l e d g e t h e r e w a s a g r e a t deal
of distress a m o n g s t families of officers.
S i r C h a r l e s H a r r i s s a i d t h a t if t h e proposals of t h e M i n i s t e r of
Pensions were accepted, t h e y would g i v e rise to a g r e a t n u m b e r of
a n o m a l i e s . A considerable n u m b e r of officers w h o would be r e t i r i n g
v o l u n t a r i l y w i t h a d i s a b i l i t y , w o u l d o b t a i n a pension which w a s
p a r t l y service a n d p a r t l y d i s a b i l i t y . T h e proposal to g i v e a w a r bonus
on t h e w h o l e of t h i s pension would, in h i s opinion, i n e v i t a b l y g i v e rise
to claims for b o n u s on pure service pension, e s p e c i a l l y w h e n the officer
h a d ao far recovered a s to be no longer e l i g i b l e for d i s a b i l i t y pension.
Mr. B o n a r L a w s u g g e s t e d t h a t the bonus should be g i v e n only
on t h e d i s a b i l i t y e l e m e n t of a pension.
T h e M i n i s t e r of Pensions p o i n t e d out t h a t t h i s w o u l d e n t a i l a
g r e a t d e a l of e x t r a a d m i n i s t r a t i v e labour a n d w o u l d i n e v i t a b l y
cause g r e a t d e l a y in m e e t i n g officers' claims. H e w a s p r e p a r e d ,
however, i f t h a t w a s t h e decision of the C a b i n e t , t o accept M r . B o n a r
Law's suggestion.
S i r C h a r l e s H a r r i s s u g g e s t e d t h a t t h i s could e a s i l y be done by
g i v i n g t h e s a m e bonus to an officer w h o h a d an e l e m e n t of service
in h i s pension a s to a t e m p o r a r y officer of t h e s a m e r a n k a n d t h e
s a m e d e g r e e of d i s a b i l i t y .
S i r A u c k l a n d Geddes s a i d t h a t , i n v i e w of w h a t t h e S t a t e w a s
doing to b r i n g d o w n t h e prices of food a n d t h e cost of l i v i n g g e n e r ­
a l i y , it d i d not seem n e c e s s a r y to g r a n t t h i s bonus. A t t h e s a m e
t i m e , if i t w e r e g i v e n , he s a w no logical g r o u n d s for r e f u s i n g to
g r a n t a bonus on t h e pensions of all other G o v e r n m e n t s e r v a n t s .
H i s objection, however, w o u l d be c o n s i d e r a b l y r e d u c e d if i t w e r e
d e c i d e d t o g i v e t h e w a r bonus only on t h e d i s a b i l i t y e l e m e n t of a
pension.
The F i r s t L o r d s a i d he w a s q u i t e c e r t a i n t h a t v e r y r e a l h a r d ­
s h i p s e x i s t e d , p a r t i c u l a r l y in t h e case of a g r e a t n u m b e r of officers
who h a d r e c e i v e d t h e i r commissions from t h e r a n k s , a n d w h o found
i t i n c r e a s i n g l y difficult to r e t a i n t h e s t a n d a r d of l i v i n g n e c e s s a r y to
t h e i r n e w positions.
The W a r C a b i n e t , in coming to a decision, w e r e influenced b y
t h e fact t h a t , a l t h o u g h t h e concession could not be l o g i c a l l y defended
on t h e g r o u n d s of t h e h i g h cost of l i v i n g , it w o u l d b e v e r y difficult
to r e s i s t t h e d e m a n d p u t f o r w a r d on s e n t i m e u t a l g r o u n d s in t h e
H o u s e of C o m m o n s , p a r t i c u l a r l y in v i e w of t h e fact t h a t a w a r bonus
h a d a l r e a d y been g r a n t e d on m e n ' s pensions.
T h e W a r C a b i n e t decided :—
To a p p r o v e t h e r e c o m m e n d a t i o n s of t h e M i n i s t e r of P e n s i o n s
(Paper G . T . - 6 8 9 4 ) , subject to the limitation that the war
b o n u s g r a n t e d t o an officer whose pension contained both
s e r v i c e a n d d i s a b l e m e n t e l e m e n t s s h o u l d be c a l c u l a t e d upon
t h e r e t i r e d p a y w h i c h w o u l d be g i v e n t o a t e m p o r a r y
officer of t h e s a m e r a n k a n d t h e s a m e d e g r e e of d i s a b i l i t y .
2, Whitehall
Gardens, S.W.
February
28, 1919.
1,