(c) crown copyright Catalogue Reference:CAB/65/41/18 Image Reference:0001 T H I S D O C U M E N T IS T H E P R O P E R T Y O P H I S B R I T A N N I C M A J E S T Y ' S G O V E R N M E N T Printed for the War Cabinet. February 1944. W.M. ^2 Copy No. - S E C R E T . (44) 18th Conclusions. WAR CONCLUSIONS S.W. of a Meeting 1, on Friday, CABINET 18 (44). of the War Cabinet held at 10 Downing 11th February, 1944, at 11-45 a.m. Street, Present : Chair). T h e R i g h t H o n . WINSTON S. CHURCHILL, M . P . , P r i m e M i n i s t e r (in the T h e R i g h t H o n . C R . ATTLEE, M . P . , T h e R i g h t H o n . ANTHONY EDEN, M . P . , Council S e c r e t a r y of S t a t e for Foreign Lord P r e s i d e n t of t h e Affairs (Items 1-4). (Items 1-3). T h e R i g h t H o n . S i r JOHN ANDERSON, T h e R i g h t Hon.. ERNEST BEVIN, M . P . , M i n i s t e r of L a b o u r a n d N a t i o n a l M . P . , Chancellor of the E x c h e q u e r . Service. T h e R i g h t H o n . OLIVER LYTTELTON, T h e R i g h t H o n . HERBERT MORRISON, M . P . , S e c r e t a r y of S t a t e for the M . P . , M i n i s t e r of P r o d u c t i o n . H o m e D e p a r t m e n t a n d M i n i s t e r of H o m e Security. The Right H o n . LORD WOOLTON, M i n i s t e r of R e c o n s t r u c t i o n . T h e following were also p r e s e n t T h e R i g h t H o n . VISCOUNT CRANBORNE, T h e R i g h t H o n . LORD BEAVERBROOK, L o r d P r i v y Seal. S e c r e t a r y of S t a t e for D o m i n i o n Affairs. ARCHIBALD T h e R i g h t H o n . Sir STAFFORD CRIPPS, The Right Hon. Sir K.C., M . P . , M i n i s t e r of A i r c r a f t SINCLAIR, Bt., M . P . , S e c r e t a r y of Production. S t a t e for A i r . T h e R i g h t H o n . HUGH DALTON, M . P . , T h e R i g h t H o n . R. A . BUTLER, M . P . , P r e s i d e n t of the B o a r d of E d u c a t i o n . P r e s i d e n t of the B o a r d of T r a d e . the Right Hon. J. J. T h e R i g h t H o n . R. S. HUDSON, M . P . , Colonel LLEWELLIN, M . P . , M i n i s t e r of Food. Minister of Agriculture and Fisheries. M a j o r t h e R i g h t H o n . G . LLOYD T h e R i g h t H o n . BRENDAN BRACKEN, M . P . M i n i s t e r of I n f o r m a t i o n . GEORGE, M . P . , M i n i s t e r of F u e l a n d Power. T h e R i g h t H o n . RICHARD LAW, M . P . , T h e R i g h t H o n . LORD CHERWELL, Paymaster-General. M i n i s t e r of S t a t e . T h e R i g h t H o n . HARCOURT JOHNSTONE, M.P., Secretary, Department of Overseas T r a d e . Secretariat: S i r EDWARD BRIDGES. S i r GILBERT LAITHWAITE. CONTENTS. Minute Subject. No. M i n e r s ' W a g e s '. 1 S e c u r i t y of P r e p a r a t i o n s for " Overlord " .... .... ..... 2 N a t i o n a l H e a l t h Service .... .... .... .... .... 3 A n g l o - A m e r i c a n D i s c u s s i o n s u n d e r A r t i c l e V I I .... .... 4 A u s t r a l i a - N e w Z e a l a n d A g r e e m e n t of 2 1 s t J a n u a r y , 1944 5 [26931-^2] Page 82 82 83 83 84 Miners' Wages. (Previous Reference: W.M. (42) 79th Conclusions, Minute 5.) 1. The Minister of Fuel and Poiver said t h a t a p o i n t h a d a r i s e n in r e g a r d to the P o r t e r A w a r d on w h i c h t h e G o v e r n m e n t w o u l d have t o m a k e an i m m e d i a t e s t a t e m e n t . U n d e r t h a t a w a r d the m i n i m u m weekly w a g e s of a d u l t u n d e r g r o u n d w o r k e r s a n d s u r f a c e workers, a n d of y o u t h s u n d e r 2 1 , h a d been increased a n d n e w r a t e s h a d been l a i d down for overtime a n d week-end pay. H e t h o u g h t t h a t the G o v e r n m e n t m u s t accept t h e position t h a t p r o v i s i o n would be m a d e e i t h e r d i r e c t l y or i n d i r e c t l y from the Coal C h a r g e s A c c o u n t t o meet the cost of t h i s A w a r d , a n d also of a p r e v i o u s a w a r d d e a l i n g w i t h h o l i d a y s w i t h pay. I t w o u l d also be necessary t h a t t h e r e should be a n a d j u s t m e n t of p a y i n c e r t a i n cases to remove c e r t a i n anomalies a r i s i n g directly from t h e P o r t e r A w a r d . O t h e r w i s e t h e r e would, for instance, be cases i n w h i c h " c o n t r a c t o r s " w o u l d have to p a y increases to d a y w a g e men i n t h e i r g a n g w i t h o u t receiving c o r r e s p o n d i n g increase themselves. I t a p p e a r e d , however, t h a t n e g o t i a t i o n s h a d been s t a r t e d between the m i n e w o r k e r s ' a n d m i n e o w n e r s ' r e p r e s e n t a t i v e s i n c e r t a i n d i s t r i c t s (notably i n South W a l e s ) for a s u b s t a n t i a l increase i n piece-work r a t e s , on the u n d e r s t a n d i n g t h a t such increases would be accepted as a c h a r g e a g a i n s t the Coal C h a r g e s Account. T h e m a t t e r h a d been discussed i n the L o r d P r e s i d e n t s C o m m i t t e e t h a t m o r n i n g a n d i t h a d been a g r e e d t h a t a n announce­ m e n t should be m a d e t h a t , w h i l e p r o v i s i o n should be m a d e from t h e Coal C h a r g e s A c c o u n t to meet t h e cost of the P o r t e r A w a r d s , a n d of a n y necessary a d j u s t m e n t s to m e e t obvious a n o m a l i e s a r i s i n g d i r e c t l y from those a w a r d s (e.g.,- in r e g a r d to w a g e s of " c o n t r a c t o r s " ) , t h e G o v e r n m e n t w e r e not p r e p a r e d to m a k e s i m i l a r provision in r e g a r d to other w a g e increases. H e t h o u g h t t h a t , if the G o v e r n m e n t took t h i s line, t h e r e w a s a r i s k of trouble in S o u t h W a l e s , a n d possibly in o t h e r d i s t r i c t s . T h e M i n i s t e r s concerned, however, were satisfied t h a t t h i s r i s k m u s t be faced. . The Minister of Laboiir and National Service s a i d t h a t he a g r e e d w i t h t h e views of t h e M i n i s t e r of F u e l a n d P o w e r . A n y f u r t h e r concession would have serious consequences of a n infla­ tionary character. The W a r C a b i n e t A p p r o v e d the course p r o p o s e d ; and took note -that t h e t e r m s of the a n n o u n c e m e n t would be a g r e e d by t h e M i n i s t e r of F u e l a n d P o w e r , i n c o n s u l t a t i o n w i t h the L o r d P r e s i d e n t of t h e Council a n d the Chancellor of t h e Exchequer. Seourlty of Preparations for " Orariord." (Previous Reference: W.M. (44) 10th Conclusions, Minute 5.) 2. The Prime Minister r e f e r r e d to t h e C o m m i t t e e w h i c h h a d been set u p u n d e r his C h a i r m a n s h i p to deal w i t h p r e p a r a t i o n s for O p e r a t i o n " O v e r l o r d . " A t t h e m e e t i n g of t h i s C o m m i t t e e held on W e d n e s d a y , t h e 9 t h F e b r u a r y , c o n s i d e r a t i o n h a d been given t o a scheme for the i m p o s i t i o n of a v i s i t o r s ' b a n over a coastal belt from the W a s h t o L a n d ' s E n d a n d covering c e r t a i n a r e a s of Scotland. T h e P r i m e M i n i s t e r said t h a t i t w a s of the u t m o s t i m p o r t a n c e t h a t due r e g a r d should be p a i d to m i l i t a r y security. H e t h o u g h t , however, t h a t c o n s i d e r a t i o n should be given to measures t o deal w i t h t h e m a t t e r on a different basis, namely, by p r e v e n t i n g a n y informa­ t i o n p a s s i n g out of t h e B r i t i s h Isles. T h i s involved c o n s i d e r a t i o n of t h e facilities enjoyed by t h e r e p r e s e n t a t i v e s of f o r e i g n Govern­ m e n t s . H e h a d asked t h a t a C o m m i t t e e consisting of t h e M i n i s t e r of P r o d u c t i o n (in the C h a i r ) , M i n i s t e r of A i r c r a f t P r o d u c t i o n a n d t h e J o i n t P a r l i a m e n t a r y Secretary t o the M i n i s t r y of S u p p l y should be responsible for the p r e p a r a t i o n of a r e p o r t on these measures. B u t , in view of t h e w i d e scope of t h e measures involved, h e t h o u g h t t h a t r e p r e s e n t a t i v e s of the F o r e i g n Office a n d of the H o m e Office should be associated w i t h t h e t h r e e M i n i s t e r s w h o h a d been asked to c a r r y out t h i s e n q u i r y . The W a r Cabinet— Took note, w i t h a p p r o v a l , of t h i s s t a t e m e n t . \ National H e a l t h Service. (Previous Reference: W.M. (44) 17th Conclusions, Minute 2.) 3. The Prime Minister r e f e r r e d to the discussion on this m a t t e r t w o d a y s e a r l i e r . T h e m a t t e r had, of course, been very fully discussed over a long p e r i o d o n the R e c o n s t r u c t i o n Committee. The issues involved were, however, very f a r - r e a c h i n g , a n d he h a d come t o t h e conclusion t h a t , on the whole, i t would be desirable t h a t they should be r a t h e r more fully discussed t h a n h a d been possible o n t h e occasion of t h e e a r l i e r meeting, before a final decision w a s reached to publish the W h i t e P a p e r . A f t e r a s h o r t discussion, the W a r Cabinet-— A g r e e d t h a t consideration of this m a t t e r should be r e s u m e d a t a m e e t i n g to be held a t a n early d a t e i n the following week. 4. A t t h e i r m e e t i n g on the 21st December the W a r C a b i n e t h a d i n v i t e d the M i n i s t e r of S t a t e to p r e p a r e a note focussing for m i n i s t e r i a l decision t h e p o i n t s a r i s i n g out of the recent A n g l o A m e r i c a n discussions u n d e r A r t i c l e V I I of the M u t u a l A i d A g r e e m e n t , a n d h a d asked t h a t t h e M i n i s t e r of S t a t e should be (Previous i n f o r m e d of a n y p o i n t s w h i c h M i n i s t e r s w i s h e d to r a i s e o n the Reference: subject. W.M. (43) 173rd T h e W a r C a b i n e t now h a d before them— Conclusions, Anglo-American Discussions under Article Y I I . Minute 1.) (a) T w o M e m o r a n d a by the M i n i s t e r of S t a t e ( W . P . (44) 75 a n d W . P . (44) 81) focussing issues a r i s i n g out of the W a s h i n g t o n conversations a n d d e a l i n g w i t h the p o i n t s r a i s e d by i n d i v i d u a l M i n i s t e r s . (&) A M e m o r a n d u m ( W . P . (44) 82) by the Secretary of S t a t e for D o m i n i o n Affairs r e c o m m e n d i n g t h a t the Censorship should be asked to a r r a n g e w i t h the P r e s s for the avoidance of all reference to the forthcoming discussions w i t h the D o m i n i o n s a n d I n d i a w h e t h e r on t h e m o n e t a r y or o t h e r aspects. (c) A M e m o r a n d u m by the L o r d P r i v y Seal ( W . P . (44) 95) criticising the outcome of the Anglo-American discussions u n d e r A r t i c l e V I I as r e p r e s e n t i n g i n effect the revival of the gold s t a n d a r d issue a n d p r e s s i n g for t h e i r rejection. A g e n e r a l discussion took place on t h e issues a r i s i n g out of the p a p e r s before the W a r Cabinet. A record is contained i n the S e c r e t a r y ' s S t a n d a r d File o f W a r C a b i n e t Conclusions. A t t h e e n d of t h e discussion the Prime Minister summed u p by s a y i n g t h a t t h e g e n e r a l view of the W a r C a b i n e t w a s in favour of p r o c e e d i n g w i t h a policy generally on the lines discussed a t W a s h i n g t o n , a n d as set out i n the M i n i s t e r of S t a t e ' s M e m o r a n d u m , a l t h o u g h no d o u b t t h e r e w o u l d be a n u m b e r of specific p o i n t s w h i c h would require further examination. The main point which had emerged from t h e m o r n i n g ' s discussion h a d been the i m p o r t a n c e of t h i s c o u n t r y s e c u r i n g a d e q u a t e s a f e g u a r d s in respect of the t r a n s i t i o n a l ' period. H e t h o u g h t , too, t h a t those h a n d l i n g these q u e s t i o n s should not neglect to consider the a l t e r n a t i v e s w h i c h we should have t o a d o p t if no a g r e e m e n t w e r e reached w i t h the U n i t e d S t a t e s on the lines of the W a s h i n g t o n discussions. T h e P r i m e M i n i s t e r a d d e d t h a t it w a s a m a t t e r of u r g e n c y to settle t h e lines w h i c h our officials should t a k e in the discussions w i t h r e p r e s e n t a t i v e s of t h e Dominions and I n d i a , w h i c h were d u e to s t a r t on the 21st F e b r u a r y . T h i s i m m e d i a t e t a s k should be e n t r u s t e d t o a small committee of M i n i s t e r s , t h o u g h i t m i g h t later be found desirable t o t u r n t h i s body i n t o a S t a n d i n g M i n i s t e r i a l C o m m i t t e e t o consider our p o s t - w a r financial, economic a n d commercial policy i n the i n t e r n a t i o n a l field, i n c l u d i n g g e n e r a l p r o b l e m s likely to a r i s e in t h e t r a n s i t i o n a l period. The W a r C a b i n e t Agreed t h a t a C o m m i t t e e should be set u p as follows : — Chancellor of t h e E x c h e q u e r (Chairman), M i n i s t e r of P r o d u c t i o n , L o r d P r i v y Seal, P r e s i d e n t of the B o a r d of T r a d e , M i n i s t e r of S t a t e , Paymaster-General. T h e C o m m i t t e e ' s task w a s to d e t e r m i n e , in the l i g h t of the discussion in the W a r C a b i n e t as s u m m a r i s e d by the P r i m e M i n i s t e r , the a t t i t u d e to be t a k e n by U n i t e d K i n g d o m officials in t h e f o r t h c o m i n g discussions w i t h official r e p r e s e n t a t i v e s of the D o m i n i o n s a n d I n d i a over the whole field of the W a s h i n g t o n C o n v e r s a t i o n s u n d e r Article V I I . I t was, of course, open to the C o m m i t t e e to i n v i t e o t h e r M i n i s t e r s to assist them, as m i g h t be necessary, in r e g a r d to any p a r t i c u l a r aspect of t h e i r e n q u i r y . AustraliaN e w Zealand Agreement of the 21st January, 1944. (Previous Eef erence: W.M. (44) 17th Conclusions, Minute 3.) 5. A t t h e i r last m e e t i n g the W a r C a b i n e t h a d i n v i t e d the S e c r e t a r y of S t a t e for D o m i n i o n Affairs to a r r a n g e for a reply to t h e A u s t r a l i a n a n d N e w Z e a l a n d G o v e r n m e n t s to be d r a f t e d a n d s u b m i t t e d to them. Copies of the d r a f t reply w e r e h a n d e d r o u n d a n d considered a t the m e e t i n g . The W a r C a b i n e t A p p r o v e d the d r a f t p o i n t s :— reply subject to the following (a) t h e offer t o s h a r e i n defence responsibilities in the Pacific w a s a notable l a n d m a r k , a n d should be m a d e more c o r d i a l ; (b) p a r a g r a p h 7 should r e a d a s f o l l o w s : " W e a r e i n agreement with the general principle laid down in t h i s p a r a g r a p h , w i t h t h e proviso t h a t i t s a p p l i c a ­ tion i n c e r t a i n i n d i v i d u a l instances m i g h t be affected by t h e t e r m s of the a r r a n g e m e n t s m a d e a t the time." Offices of the War Cabinet, S.W. 11th February, 1944. 1,