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3 E 0 R 3 I.
COPY
0
U
HQ.
I E E T 39 (25).
Meeting of the Cabinet to be held at 10 Downing Street;
S.W.1, on Wednesday, July 22nd, 1925, at 11.30 a.m.
AGENDA.
\
TELEPHONE CAPITAL ESPBNDITURE
ADDITIONAL Pi'EMS.
TARIFF ADVISORY
C0M1ISSION.
(Reference Cabinet 5 (2ft)0onclusion 7 ) .
Reioorc o f Committee.
. " ( C P . 7 (24) - re-pirculated herewith).
Parliamentary Question for July 22nd 1925. No. 55.
CHINA - SITUATION IN.
Colonial Office Telegram No.534 of
(already circulated).
Report by the Chief of Staff.
(CPo 327 (25) - already circulated).
CONTINUATION OP DISCUSSION.
RATES 01 GREAT WAR PENSION.
Memorandum by the Minister of Pensions.
(C.P* 343 (35) - already circulated)
0
INTERNATIONAL LIMITATION OP ARMAMENTS.
(Reference Cabinet 32 (25) Conclusion 1(b).)
Note by the Chancellor of the Duchy of Lancaster.
( C P . 329 (25) - already circulated)
Memorandum by the Secretary of -tate for Foreign
Affairs.
( C P . 357 (25) - to be circulated).
UNEMPLOYMENT.
(Reference Cabinet 36 (25) Conclusion 5 )
Report of Unemployment Committee,
( C P . 330 (25) - already circulated).
6
(ffllS DOCUMENT I S THB PROPERTY OF K13 BRITAKKIO J a J a 3 3 Y ' 3 SOV3RHJ£JK T) ...
3 E 0 R3
To
Q Q P Y HO
0
A B I g E T 39 (85).
Meeting of the Cabinet to be held at 10 Downing Streetj
SeW*l, on Wednesday, July 22nd, 1925, at 11.30 a.m
AGEJDA.
1.
TEJLEBHOKB O f f l T i L
ESEBHDIflOBE
(Reference Cabinet 36 (25) Conclusion 1 ) .
Memorandum by the Postmaster General.
( C P . 304 (25) - already circulated).
Note by the Chanoellor of the Exchequer.
( C P . 326 (25) - already circulated).
2*
IP
KAVAX
READY
PROGRAMME.
(Reference Oabinet 9 (25) Conclusion 2 (b)).
(Reference Cabinet 24 (25) Conclusion 3 ) .
(Reference Cabinet 37 (25) Conclusion 3)o
(Reference Cabinet 38 (25) Conclusion l)
Report of Cabinet Committee.
(CP* 342 (25) - already circulated).
CONTINUATION OF DISGUSSION,
3o
RATES OF GREAT WAR FUSION.
Memorandum by the Minister of Pensions
( C P . 343 ( 2 5 ) - already circulated).
4.
INTERNATIONAL LIMITATION OF ARMAMENTS.
(Reference Cabinet 32 ( 2 5 ) Conclusion 1(b).)
Note by the Chancellor of the Duchy of Lancaster.
( C P . 329 ( 2 5 ) - already circulated)
Memorandum by the Seoretary of .tate for Foreign
Affairs.
( C P . 357 ( 2 5 ) - to be circulated).
UNEMPLOYMENT.
(Reference Cabinet 36 ( 2 5 ) Conclusion 5 ) *
Report of Unemployment Jommittee,
( C P . 330 ( 2 5 ) - already circulated).
()
a
Publication of Reports.
Memorandum by the President of the Board of
Trade.
(0.P. 346 (25) v already circulated).'
(b) Report of Super-Phosphates Committee.
Memorandum by the President of the Board of
Trade covering Report.
( C P . 34C (25) - already circulated).
(c) Report of Committee on Gloves.
Memorandum by the president of the Board of
Trade covering Report,
( C P . 344 (£5) - already circulated).
(d) Recent applications under the safeguarding
of Industries Procedure.
Memorandum by the President of the Board of
Trade.
( C P . 333 (85) - already circulated).
RAJES 05* PAY 1?Q'R NSW 3K THAI! 23 IN 3S3 FIGHTING
33Ryi03S - PAY OP im:
Report of Cabinet
( C P . 335 (25)
Memorandum by the
( C P . 354 (25)
Committee.
- already circulated).
First lord of the Admiralty,
- already circulated).
UNCLAIMED BALANCES OF PAY 3ABN3D BY NATIVE
jjBMBBBS OF fflB fflLimRYH^OUR CORPS DURING
TELSj BAST ASTlICAg CAMPAIGN.
'
Memorandum by the
the Colonies-.
(CP* 302 (25).
Memorandum by the
( C P . 353 (25)
Seoretary of State for
- already circulated.).
Secretary of State for War.
- already cirOulatei).
ARMIS2IC2 DAY.
Memorandum by the Home Seoretary.
( C P . 355 (25) - already circulated).­
10.
HOMES AFFAIRS COMMITTEE.
Consideration of the following recommendations:­
(a) The Dangerous Drugs Bill
IH.A.0. 16 (25) 1 ) .
(b) The Isle of Man (Customs) Bill, 1925,
(H.A.C. 16 (25) 2 ) .
^c) The Road and Street in Police Burghs
(Scotland) Bill­
(H.A.O. 16 (25) 3 ) .
(d) The Sheriff Courts and Legal Officers
(Scotland) Bill.
(HoAo Go 16 (25) 4 ) .
(e) 9he Expiring Laws Continuance Bill, 1925*
(H.A.C. 16 (25) 5)*
(S.A.C. 16th Conclusions (25) - already circulated).
3D TAKE NOTE OP
11.
WIDOWS?, ORPHANS' AND OLD AGE CONTRIBU"TORY
PENSIONS BILL.
(Reference Cabinet 36 (25) Conclusion 7)
Report by the First Commissioner of Works.
( C P . 337 (25) - already circulated).
IF READY.
12.
POOR LAW REFORM.
(Reference Cabinet 25 (25) Conclusion 1 (e)).
Memorandum by the Minister of Health.
( C P . 313 (25) - to be circulated).
(Signed)
M.P.A. EANEEY.
Secretary, Cabinet,
Whitehall Gardens, S.W-.1..
21st July, 1925.
,DOCUME-flT IS THE PROPERTY OP HIS BRITAMUICI&AJSSTY ^ S O v E R M M T ) .
1
j j C 3 E T.
OOPY NO.
C A B I N E T
39(85).
COWCLUSIOHS of a Meeting of the Cabinet held
at 10, Downing Street, S.W.I., on WEDNESDAY,
JULY 22nd, 1925, at 11.30 A.M.
PRESENT;The Right Hon. Stanley Baldwin, M.P.,
Prime Minister.
(In the Chair).
lie Right Hon.
1 Austen Chamberlain, M.P.,
I Secretary of State for
I Foreign Affairs.
The Right Hon.
Viscount Cave, &.C.M.G.,
Lord Chancellor.
the Right Hon.
The Earl of Balfour, E.G.,0.M.,
I Lord President 6f the Council.
The Most Hon.
The Marquess of Salisbury,
The Right Hon.
W.S. Churohill, C.H. ,M.P.,
I Chancellor of the Exchequer.
The Sight Hon.
Sir William Joynson-Hieks,
Bart.,M,P., Secretary of
State for Home Affairs.
The Right Hon.
L.S. Amery, M.P., Seoretary
of State for Dominion Affairs
and Seoretary of State for
the Colonies.
The Eight Hon.
Sir Laming Worthington-Evang,
Bart.,G.B.E. ,M.P., Secretary
of State for War.
The Right Hon.
The Earl of Birkenhead,
j Secretary of State for India.
The Right Hon.
Sir Samuel Hoare, Bart.,
C.M.G..M.P., Secretary of
State for Air.
The Right Hon.
W . C Bridgeman, M.P.,
First Lord of the Admiralty.
The Right Hon.
Sir Philip Cunliffe-Liste
K.B.E. ,M.C ,M.P., Preside
of the Board of Trade.
The Right Hon.
Heville Chamberlain, !£.£.,
Minister of Health.
The Right Hon.
E.F.L. Wood, M*P., Minister
of Agriculture and Fisheries.
The Right Hon.
Sir John Gilmour, Bart.,D.S.O.,
H.P., Secretary for Scotland.
The Right Hon.
Lord Eustace Percy, M.P.,
President of tho Board of
Education.
The Right Hon.
Sir Arthur Steel-Maitland, Bart.,
H.P.,' Minister of Labour.
The Right Hon.
Viscount Peel, G.B.E., First
Commissioner of Works.
The Right Hon.
Viaoount Cecil of Chelwood, K.C.,
Chancellor of the Duchy of
Lancaster.
The Right Hon.
Sir Douglas Eogg, K.C. .M.P. ,
At to rney-Gene ral.
Eofio,G.C.V.O..G.B.,
Lord Privy Seal.
THE FOLLOWING WERE ALSO PRESENT^Major The Right Hon. G.C.Tryon, J1..P..
Minister of Pensions.
(For Item 7 ) .
*£ .A. Hankey, S.CB,.................... ..... ...... .... ^Secretary.
m COAL
llSPOTE.
(Previous .
Reference:
Cabinet 27
(25) i Con­
bluslon 9 . )
1. The Minister of Labour informed the Cabinet
that up to. the previous night it had appeared
probable that representatives of the ooalowners
arid miners would meet at an early date for the
further disousslon of their dispute.
The
Secretaries of the Mining Association and the
Miners Federation had met, and a meeting had been
arranged on the basis of a formula by which the
coal owners undertook not to press their wages
proposals, although they would not be asked to
withdraw them.
Last night, however * the South
Wales Coalowners had posted notices of termination
of the present Agreement, offering re-engagement .
on terms identical with those which the coal owners
had just undertaken not to press for the moment.
It remained to be seen whether this action had been
taken deliberately or by Inadvertence * but in the
meanwhile the aotion of the South Wales Coalowners
put the meeting of the ooalowners' and miners
representatives in jeopardy.
1
2. The Minister of Labour info m a d his colleagues
that the question of a strike In the wollen industry
was in the balance.
100*000 workers were involved
in the dispute, which related to a question of 5$
in w a ^ s .
kt 4.
3. The Cabinet resumed their discussion on the
question of the Programme of Naval Constructions and
in addition to the Report of the Cabinet Committee
(Paper CP.-342 (25)) which had been before them on
the last occasion when the question was discussed,
they had before them a Memorandum by the Chanoellor
of the Exchequer (Paper CP.-360 (25)).
The Prime Minister informed his colleagues that,
as arranged at the previous Meeting, he had held
conversations with the Chancellor of the Exchequer
and the B irst Lord of the Admiralty, but unfortunately
1
without reaching agreement.
In the circumstances,
after careful consideration of the present controversy
in all Its aspects, and in the.light of the present
political situation, he had decided to make a
reoommendation to the Cabinet.
In view of the need
for an early settlement of this question, and more
particularly in view of the threatened industrial
crisis, he appealed to his oolleagues to accept
these proposals.
The Prime Minister's recommenda­
tion was unanimously accepted, subject to the First
Lord of the Admiralty reserving his position until he
had had an opportunity of examining the proposals in
detail with his technical advisers.
On the recommendation of the Prime Minister
the Cabinet agreed *­
(a) That the Admiralty programme of
cruisers as set out in the Committee
Report (CP.-342 (25)) on page 2
should be accepted in principle, subject
to discussion between the Chancellor
of the Exchequer and the First Lord
as to the actual dates of laying down
the seven cruisers of the first two
years, in accordance with the various
alternatives proposed by the Prime
Minister to minimise the expense as
follows:­
1936-6
2 plus 1
2 Plus 2
1086*7-
1937-8
' - 2 plus 2
1 plus 2 or 2 plus I
3
' 4
and re-open discussion in 1926*
(NOTEi The figures "2 plus I for the
year 1925-6 signify 2 cruisers
to he hi id down during 1925
and 1 during;- the first quarter
of 1928. Similarly *S plus B
for the year 1926-7 sigaitise.
2 cruisers laid a cmx during
1926 and 2 during the first
quarter- of 1987/aid so forth).
s
8
lb) Thats with the exception of the 4 C h t m
Gunboats and the 3 book Sections * the
rest of the Admiralty programme shall
begin next year and not this year* and
Shall thereafter be in accordance with
the recommendations of the Committee
Report (CPo -342 (25)) an page S.
(e) fhai the Admiralty should asset the
increased charge in 1925-6 by savings­
on other heads"and by further ander^
spending (other than that allowed for
in the £2,000.000 *shades * cut) and that
no new money shall he asked for unless
st the end of the fimnsial yesi? the
Cabinet is satisfied that thsre is no
otha r alternative *
(d) Tnat the isaintenansse asd - other Votes of
the i%vy (other than new construotion)
shall bo the suh^eot of m special
inquiry (which will also extend to other
Service Departments) with the object of
presenting to the Cabinet proposals for
reduction of expenditure to equalise
from Admiralty votes the increased cost
involved in the earlier beginning of
the cruiser progrsesme that was proposed
.1B the /Committee Report ( C P . *34S 125/
page 5 ) : this Inquiry in no way to
supersede the ordinary functions of
the Treasury in regard to Department&1
expenditure^
4. The attention of the Cabinet was drawn, as a
matter of urgenoy, to a Question to be asked the
Prime Minister in Parliament the same afternoon as
to whether the Tariff Advisory Board appointed at
the end of 1923 had made a Report, whether that
Report was unanimous, and whether there was any
objection to its publication.
The attention of the Cabinet was drawn to the
fact that.in January, 1924, In different ciroum­
stances from the present, the Cabinet had decided
that the Report should not be published ispontaneously;
that if there was a demand in Parliament the Government
should at once assent to its publication;
that in
this event the interim and preliminary nature of the
Report should be explained, and it should be made
clear that it had not received the approval of the
Government.
The Cabinet agreed -That no useful objectwould.be served
In raising an old controversy in
circumstances which had completely
changed, and that the Prime Minister
should reply to Colonel Gretton'.s
question to the effect that no useful
purpose would be served by publishing
the Report of the Tariff Advisory
Commission.
5. The Cabinet had before them, as a matter of.
urgencyj telegram No.534 from the Governor of Hong-Kong
to the Secretary of State fox,
"the Colonies, pointing out that
further large quantities of Russian arms are being
imported at Canton;
that numbers of Hong-Kong strikers
are being aimed arid drilled by the Russians;
that the
possibility could not be ignored of Hong-Kong being
attacked;
that the Governor was unable to regard
without disquietude the depletion of the garrison of
Hong-Kong as the result of sending troops/bo Shameen;
and urging that the needs of Shameen should be provided
for in some other way as soon as possible.
In connection with this telegram the attention
of the Cabinet was drawn to a Report by the Chiefs of
Staff Sub-Committee on the Situation in China (Paper
C.P.-527 (25)), containing recommendations, inter alia,
for increases in the naval forces on the China Station
and in the garrison of Hong-Kong.
The Cabinet were informed that the question of
increasing the garrison of Hong-Kong at the present
time required careful consideration in its international
aspects.
The Cabinet agreed
—
That the question should be considered
at an early date by the Committee of
Imperial Defence.
IMITATION
fh ARMAMENTS.
Previous
[Reference:
cabinet 17
(25), Con­
olusion 2. )
6. The Cabinet had before them a Note by the
Chanoellor of the Duchy of Lancaster (Paper C. P. -329
(25)) and a Memorandum by the Secretary of State for
Foreign Affairs (Paper CP.-357 (25)) on the subject
of International Limitation of Armaments, together
with a letter from M. Briand to Mr Austen Chamberlain,
SECURITY,.
Draft Pact.
[Previous
llsferenoe:
Cabinet 35
(25), -Con­
elusion 1. )
dated July 13, 1925 (F*0., W.6867/9/98), referred to
In the latter Memorandum.
While it was agreed that effective progress
could not be made with the question of disarmament
until the question of the Security Pact was disposed
of, it was considered desirable that some expert
inquiry should take place with a view to formulating
principles as to the best method to be adopted to
guide the Government in their attitude whenever the
question was felt to be ripe for a further step.
The Cabinet instructed the Seoretafy to place
himself in touoh with the Chiefs of Staff of the three
Services with a view to formulating proposals as to
the scope and nature of an inquiry on this subject.
The Cabinet approved the Foreign
Secretary's suggested reply to
M. Briand's personal letter of
July 13, 1925 (No. F.0.,W.6867/9/98).
7. The Cabinet had before them a Memorandum by the
Minister of Pensions on the subject of rates of
pensions for the Great War, containing the text of
an announcement which he wished to make in Parliament,
at a suitable date, to the effect that no-change in the
present rates shall be "made so long as the average
cost of living, as certified by the Minister of Labour,
falls between a maximum already provided by the Warrant,
namely, the cost of living in the year 1919, and a
minimum of 60 per cent, in excess of the pre-war cost
of living;
and that the average cost of livinp would
be not the annual average originally prescribed by
the Royal Warrant, but an average over three years.
The effect of this proposal would be to give stability
to the present rates for, at the very least, three
years from the 31st March, 19S6, and, from all present
indications, for an even longer period (Paper C.P.­
343 (25)).
The proposals of the Minister of Pensions met with
considerable support, but the Chancellor of the Exohe­
quer asked for further time to consider the matter
before formally closing the door to the consideration
of War Pensions in connection with the forthcoming
Inquiry into the question of Expenditure.
The Cabinet agreed
-
That the question should be left for
settlement' to the Minister" of Pensions
and the Chancellor of the Exchequer,
who would only ask tho Cabinet to
re-examine the question if they were
not in agreement.
4r sji
UNEMPLOYMENT.
(Previous
Reference:
Cabinet 36
(25)9 Con­
elusion 5. )
9
8. The Cabinet had before them a Report by the
Unemployment Committee raising for decision a ques­
tion relating to a proposed alteration in the terms
of grant adopted as the basis of the work of. the
Unemployment Grants Committee, and a question of land
drainage schemes for the relief of unemployment
(Paper C P . -330 (25)).
After considerable discussion the Cabinet
agreed — .
(a) That the terms of grant adopted
as the basis of the operations of
the Unemployment Grants Committee
should remain unaltered:
(b) That the-recommendations of the
Unemployment Committee in favour
of the interim continuance of land
drainage schemes for the relief of
unemployment during: the coming
winter on the same "lines as
heretofore should be suspended, so
as to enable the Chancellor of the
Exchequer to consider this proposal
ill connection with any other pro­
posals involving public expenditure
on such natters "as Electricity,
Railways In Africa, the forthcoming
Report of the Committee of Civil
Research on the Steel and Iron
Industry, etc. This latter decision,
however, was taken on the understand­
ing that a decision should be taken
in regard to land drainage before
the recess.
'? 6
SAFEGUARDING
IF INDUSTRIES.
previous
lefereaoce:
kbinet 31
25) , Con­
elusion 2. )
g. The Cabinet had before them the following decu­
ments on the subject of Safeguarding of Industries:A Memorandum by the President of the
Board of Trade on the subject of the
Publication of Reports (Paper C P . ­
346 (25)):
The Report of the Superphosphates
Committee, with a covering Memorandum
by the President of the Board of Trade
(Paper CP.-340 (25)):
Leather and Fabric
The Report of the Committee on/Gloves,
with a covering Memorandum by the
President of the Board of Trade
(Paper CP.-344 (25)):
A Memorandum by the President of the
Board of Trade on recent applications
under the Safeguarding of Industries
Procedure (Paper CP.-333 (25)).
The Cabinet agreed
­
(a) That, in order to prevent Importers and
foreign manufacturers from accumulating
in this country stocks so large as to
delay seriously, if not entirely to
defeat, the objeot of Duties levied
as the result of Inquiries under the
Safeguarding of Industries procedure,
the publication of Reports of such
Inquiries should be withheld until
shortly before the introduction of
the Financial Resolution, and that
power should be obtained to impose
the Duty as from the date of the
Financial Resolution:
(b) That,if considered in the public interest
by the President of the Board of Trade
and the Minister of Agriculture and
Fisheries, the Report "of the Super­
phosphates Committee should be published
forthwith:
(c) To postpone until their next Meeting
the Report of the Committee on Leather
and Fabric Cloves (Paper CP.-344 (25))
and the Memorandum by the President of
the Board of Trade on Recent Applications
under the Safeguarding of Industries
Procedure for Inquiry"into Real and
Imitation Jewellery and Silver and
Electro Plate, Aluminium Hollow-ware,
'Brooms and Brushes , Glassware, and
Chrome Tanned Leather- ­
DANGEROUS
GS BILL.
vious
f srence:
inet 8
3 ) , Con­
sion
2(1;.)
10. After consideration of a Memorandum "by the
Home Secretary (Paper CP.-311 (25)) covering the
draft Dangerous Drugs Bill, the object of which Is
to amend the existing law so as to enable the British
Government to ratify the International Opium Oonvcn­
tion concluded at Geneva on February 19th, 1925,
together with the recommendation of the Committee of
Home Affairs thereon (H.A.C
16th Conclusions (25)
Para.l), the Cabinet agreed ­
To authorise the introduction in the
House of Lords forthwith of the
Dangerous Drugs Bill In the form of
the draft annexed to CP.-311 (25),
with a view to its passage Into law,
if possible, before the Adjournment.
"
JBE ISIE OP MAN
11.After consideration of a Memorandum by the
(CUSTOMS) BILL,
1925.
Financial Secretary to the Treasury, covering the
[Previous
Reference:
Cabinet 40
(£4), Con­
elusion 16.)
draft Isle of Man (Customs) Bill, 1925, which is the
usual Annual Bill to confirm the Resolutions of
Tynwald, passed on June 9th and July 7th respecting
the Insular Customs and Excise Duties (Paper C. P.­
307 (25)), together with the recommendation of the
Committee of Home Affairs thereon (H.A.0, 16th Con­
olusions (25) Para.2), the Cabinet agreed
-
To authorise the introduction in the
House of Commons forthwith of the
Isle of Man (Customs) Bill, 1925, in
the form of the draft annexed to
C.P.-307 (25), with a view to the
passage of the Bill into law, if
possible, before the Adjournment.
iTHB ROADS AND
SSTREETS IN
IPOLIOS BURGHS
i( SCOTLAND)
12. After consideration of a Memorandum by the
.
Secretary for Scotland (Paper CP.-336 (25); covering
clBILL.
the draft Roads and Streets in the Police Burghs
(Scotland) Bill, the purpose of which is to give
statutory effect to an arrangement made between the
Convention of Royal Burghs and the Association of
County Councils in Sootland to capitalise certain
annual payments made by the Burghs (in respect of
the cost of maintenance of county roads), together
with the recommendation of the Committee of Home
Affairs thereon (H.A. C
16th Conclusions (25) Para.3),
the Cabinet agreed :—
To authorise the introduction in the
House of Commons of the Roads and
Streets in Police Burghs (Scotland)
Bill in the form of the draft annexed
to C P. -336 (25),
IpHE SHERIFF
-COURTS AND
1K6AL OFFICERS
m SCOTLAND)
: BILL.
13. After consideration of a Memorandum (Paper
CP.-348 (25)) by the Secretary for Scotland, covering
the Sheriff Courts and Legal Of floors (Scotland) Bill,
the purpose of which is to carry out oertain reoom­
mendations of Lord Blackburn's Committee respecting
the re-organisation of the Procurator Fiscal and
Sheriff Cleric services in Scotland by converting the
personnel of these services into whole-time civil
servants supplemented by part-time officials in
districts where conditions do not justify whole-time
appointments, together with the recommendation of
the Committee of Home Affairs thereon (H.A. C. 16th
Conclusions (25), Para.4), the Cabinet agreed
I
—
To authorise the introduction of the
Sheriff Courts and Legal Officers
(Scotland) Bill in the form of the
draft-annexed to CP.-348 (25), on
the understanding that it would be
Impossible to proceed with the Bill
unless it meets with general acceptance.
14.After consideration of a Memorandum (Paper CP.­
352 (25)) by the Financial Secretary to the Treasury,
covering the Expiring Laws Continuance Bill, 1925,
previous
jbferemce'.
Cabinet 64
(24) $ ConIlusion 9. )
together with the recommendation of the Committee
of Home Affairs thereon (H.A. C
Para.5), the Cabinet agreed
16th Conclusions (25)
—
To authorise the introduction forthwith
of the Expiring Laws Continuance Bill,
1925, in the form of the draft annexed
to CP.-352 (25) on the understanding
that the further stages of the Bill
would be deferred until the Autumn.
2, Whitehall Gardens, S.W.1,
July 22, 1925.