(c) crown copyright Catalogue Reference:CAB/65/19/2 Image Reference:0001 T H I S DOCUMENT I S T H E PROPERTY OP H I S BRITANNIC MAJESTY'S GOVERNMENT" Printed for the War Cabinet. July 1941. SECRET. Copy *No. W.M. (41) 68th Conclusions. TO BE K E P T UNDER LOCK A N D KEY. I t is r e q u e s t e d t h a t special c a r e m a y be t a k e n t o e n s u r e t h e secrecy of t h i s d o c u m e n t . W A R CONCLUSIONS CABINET 66 ( 4 1 ) . of a Meeting of the.War Cabinet held at 1 0 , Downing S.W. 1 , on Monday. July 7, 1 9 4 1 , at 6 P . M . Street. Present: T h e R i g h t H o n . W I N S T O N S. C H U R C H I L L , M . P . , P r i m e M i n i s t e r (in the Chair). M.P., The Right H o n S i r JOHN ANDERSON, M . P . , L o r d P r e s i d e n t of t h e C o u n c i l . The Right Hon. ANTHONY EDEN, M.P., S e c r e t a r y of S t a t e f o r F o r e i g n Affairs. The R i g h t Hon. A . GREENWOOD, M.P., T h e R i g h t H o n . L O R D BEAVERBROOK, M i n i s t e r of S u p p l y . The R i g h t H o n . S i r K I N G S L E Y WOOD,. 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 . The Right H o n . C. R. A T T L E E , L o r d P r i v y Seal. Minister without Portfolio. The Right Hon. ERNEST BEVIN, M.P., Minister of Labour a n d N a t i o n a l Service. T h e following w e r e also p r e s e n t : The Right Hon. P. FRASER, M.P., P r i m e M i n i s t e r of N e w Z e a l a n d . The Right H o n . HERBERT MORRISON, M . P . , S e c r e t a r y of S t a t e f o r t h e 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 Home Security. The R i g h t Hon. LORD MOYNE, Secretary The R i g h t H o n . A . V. ALEXANDER, M . P . , F i r s t L o r d of t h e A d m i r a l t y . The Right H o n . H . D . MARGESSON, M . P . , S e c r e t a r y of S t a t e f o r W a r . The ARCHIBALD S e c r e t a r y of The Right Hon. Sir ANDREW DUNCAN, M . P . , P r e s i d e n t of t h e B o a r d o f T r a d e (Item 7 ) . The Right Hon. ERNEST BROWN, M.P., M i n i s t e r of H e a l t h (Items 8 and 9 ) . The R i g h t H o n . LORD LEATHERS, M i n i s t e r of W a r T r a n s p o r t (Items 8 and 9 ) . The R i g h t H o n . LORD WOOLTON, M i n i s t e r of F o o d (Items 8 and 9 ) . The R i g h t H o n . A . D U F F COOPER, M . P . , T h e R i g h t H o n . H U G H DALTON, M . P . , The R i g h t Hon. R. A . BUTLER, M.P., Right SINCLAIR, Hon. Bt., Sir M.P., State for A i r . Minister of Economic (Items 7 to 9 ) . [22693] of S t a t e for t h e Colonies. M i n i s t e r of I n f o r m a t i o n . Warfare Parliamentary Under-Secretary, F o r e i g n Office (Items 6 to 9 ) . : .. -' B 4 ^ The Hon. Sir ALEXANDER CADOGAN, Admiral P e r m a n e n t U n d e r - S e c r e t a r y of S t a t e for F o r e i g n Affairs. General Sir J O H N D I L L , Chief of the of the Fleet Sir DUDLEY P O U N D , F i r s t S e a L o r d a n d C h i e f of N a v a l Staff. A i r Chief M a r s h a l S i r C H A R L E S F . A . I m p e r i a l G e n e r a l Staff. P O R T A L , C h i e f of t h e A i r Staff. Secretariat. Sir EDWARD BRIDGES. Major-General Sir HASTINGS ISMAY. Mr. W . D . WILKINSON. Mr. L . F. BURGIS. WAR C A B I N E T 66 (41). CONTENTS Minute No. 1 Subject. Naval, Military a n d Air Operations.... Page 121 Air Operations: Attacks on Brest. Naval Operations: Shipping losses. S.S.' Si, Vidier.. Military Operations: U.S.S.E. East Africa. Syria.. 2 Syria .... .... 122 .... 122 Relations with, Free French. 3 Iceland ( C ) 4 T h e Middle E a s t 5 Foreign Information .... .... .... 122 .... 122 Russo-Polish relations. Russian requests for British Military action. German Peace Offensive: Fpreign Secretary's declaration. 6 Northern Ireland .... .... 123 .... 123 Visit of Home Secretary. 7 Japan .... Japanese intentions in Indo-China: Economic counter-action. 8 H o m e D e f e n c e .... .... .... 8trategie Political 4 .... .... and .... 124 .., lgg Proposed London Defence exercise. 9 P h a r m a c y a n d Medicine Bill.... - 1 121 Naval, Military atad Abb Operations. (Previous Reference: W.M. (41) 65th Conclusions, Minute 1.) Air Operations/ W . M . 66 ( M ) * 1. The Chiefs of Staff g a v e t h e following i n f o r m a t i o n a m p l i f i c a t i o n of C a b i n e t W a r B o o m R e c o r d s Nos, 6 7 0 - 6 7 3 : — S u m m a r y of a i r c r a f t losses since t h e 3 r d J u l y in : - Home Theatre— Enemy— 38 destroyed. 17 p r o b a b l e . 25 damaged. Our Own— 12 F i g h t e r s (1 p i l o t saved). 18 Bombers. 2 Coastal Command. Overseas Theatres— Enemy— 9 destroyed. 8 probable. Our Own— 6 destroyed. 1 damaged. I n the last four days we had made very successfuFair attacks o n s h i p p i n g . D i r e c t h i t s h a d been o b t a i n e d on 2 3 s h i p s , 5 o t h e r s h a d p r o b a b l y been hit, a n d 5 h a d been d a m a g e d by n e a r - m i s s e s . T h e s e figures i n c l u d e d 7 enemy s h i p s s u n k t h a t m o r n i n g i n t h e Channel. T h a t m o r n i n g 8 heavy bombers w i t h a s t r o n g fighter escort h a d m a d e a b o m b i n g a t t a c k o n a f a c t o r y a t A l b e r t . T h r e e e n e m y fighters h a d been shot d o w n . Attacks on T h e r e w e r e special r e a s o n s w h y B r e s t h a d been a t t a c k e d o n t w o Brest. n i g h t s recently. O u r m a i n n i g h t b o m b i n g effort w o u l d fall on b i g G e r m a n i n d u s t r i a l centres. Naval D u r i n g t h e p r e v i o u s four d a y s t w o s h i p s h a d been s u n k by Operations. s u b m a r i n e , t w o by a i r c r a f t a n d one m i n e d , t o t a l l i n g 12,500 t o n s . Shipping Losses. 7,000 t o n s of s h i p p i n g h a d been d a m a g e d . B e l a t e d r e p o r t s h a d been received of 19,000 t o n s of s h i p p i n g s u n k . S.5! St. Didier. T h e V i c h y F r e n c h s u p p l y s h i p St. Didier h a d been located i n T u r k i s h t e r r i t o r i a l w a t e r s a n d h a d s u b s e q u e n t l y been s u n k by n a v a l aircraft in A n t a l y a Harbour. I t was agreed t h a t we must continue to a t t a c k s u c h s u p p l y s h i p s . S h o u l d t e r r i t o r i a l w a t e r s be i n f r i n g e d i n t h e process, s u i t a b l e apologies w o u l d h a v e t o be m a d e t o T u r k e y . Military T h e G e r m a n a t t a c k s h a d r e s u l t e d i n c o n s i d e r a b l e advances, b u t Operations. t h e R e d A r m y w a s still fighting b e t t e r t h a n w e m i g h t h a v e hoped. U.S.S.R. T h e G e r m a n s w e r e believed t o h a v e h a d heavy losses. B e s i d e s t h e m a i n offensives d i r e c t e d t o w a r d s Moscow v i a S m o l e n s k a n d K i e v , a t h r u s t from the south t o w a r d s L e n i n g r a d h a d now begun. I n the U k r a i n e t h e G e r m a n s h a d r e a c h e d NovogradVolinsk. T a r n o p o l a n d S t a n i s l a v o v h a d b o t h fallen. T h i s o p e r a t i o n Was p r o b a b l y i n t e n d e d to t u r n the Dneister position. M u c h w o u l d d e p e n d o n t h e n e x t fOw d a y s , a n d i t Was u n c e r t a i n w h e t h e r t h e G e r m a n forces h a d been h a l t e d by t h e s t o u t R u s s i a n r e s i s t a n c e Or h a d p a u s e d for m a i n t e n a n c e p u r p o s e s . It was i m p o r t a n t t h a t the" R u s s i a n A i r F o r c e w a s s t i l l fighting. East Africa. T h e I t a l i a n forces i n E t h i o p i a h a d been c l e a n e d u p , w i t h t h e "exception of those i n t h e G o n d a r a r e a . O w i n g t o t h e r a i n s , w h i c h l a s t e d u n t i l t h e e n d of A u g u s t , i t m i g h t n o t be possible t o c l e a n u p t h i s / fttfce w i t h i n ; t h e ' n e x t few weeks. W e s h o u l d h o t , however'; r e t a i n a n y l a r g e forces for t h i s p u r p o s e . B 2 [22693] 1 1 ; Syria. A n u m b e r of t a n k s had. been sent to S y r i a a n d t h e C o m m a n d e r ­ in-Chief, M i d d l e E a s t , h a d been told of t h e i m p o r t a n c e o f a speedy end to operations. T h e W a r C a b i n e t took note of these s t a t e m e n t s . Syria. 2. T h e P r i m e M i n i s t e r r e a d to t h e W a r C a b i n e t t h e r e p l y (2368 T w i s t ^ h e h a d sent to a t e l e g r a m (Noo . 1 TTw wiisstt)) * received from t h e M i n i s t e r of S t a t e i n C a i r o r e g a r d i n g o u r r e l a t i o n s w i t h t h e F r e e F r e n c h in S y r i a a n d t h e a d m i n i s t r a t i o n of t h a t c o u n t r y . [Relations with Free French. (Previous Reference: W.M. (41) 56th Conclusions, Minute 4.) Iceland (G). (Previous Ref erenee: W.M. (41) 64th Conclusions, Minute 3.) T h e W a r C a b i n e t a p p r o v e d t h e policy suggested i n these telegrams. 3. The Prime Minister s a i d t h a t t h e a r r i v a l of U n i t e d S t a t e s M a r i n e s in I c e l a n d (C) w a s expected t h a t day. A s soon a s t h e y h a d a r r i v e d , P r e s i d e n t Roosevelt w o u l d m a k e a n a n n o u n c e m e n t to Congress. The Secretary of State for Foreign Affairs s a i d t h a t , w h i l s t i t w a s most desirable t h a t t h e a r r i v a l of these U n i t e d S t a t e s M a r i n e s should receive w i d e p u b l i c i t y , e m p h a s i s should be l a i d o n t h e f a c t t h a t t h e A m e r i c a n s w e r e u n d e r t a k i n g t h i s o p e r a t i o n more for t h e s e c u r i t y of t h e W e s t e r n H e m i s p h e r e t h a n to h e l p u s . T h e F o r e i g n S e c r e t a r y a d d e d t h a t , i n view of t h i s development, t h e v i s i t of t h e D u k e of K e n t to I c e l a n d (C) h a d been postponed. T h e W a r C a b i n e t took note of these s t a t e m e n t s . The Middle East. (Previous Reference: W.M. (41) 64th Conclusions, Minute 2.) (Previous Eeference: W.M. (41) 32nd Conclusions, Minute 1.) 4. Foreign Information. Russo-Polish Relations. 5. The W a r C a b i n e t ­ (i) Took note of t h e t e l e g r a m from F i e l d - M a r s h a l S m u t s c i r c u l a t e d u n d e r cover of W . P . (41) 153. (ii) I n v i t e d t h e Chief of t h e I m p e r i a l G e n e r a l Staff to consult G e n e r a l A u c h i n l e c k w i t h r e g a r d t o p a r a g r a p h 3 of t h e above t e l e g r a m . (iii) Took note t h a t a r e p o r t of t h e fighting a t A g h e i l a d u r i n g t h e G e r m a n offensive in t h e W e s t e r n D e s e r t in M a r c h A p r i l 1941 h a d n o w been received a n d w o u l d be circulated. The Foreign Secretary gave the following information:— A f t e r s e p a r a t e i n t e r v i e w s h a d t a k e n place, since t h e l a s t M e e t i n g of t h e W a r C a b i n e t , w i t h r e p r e s e n t a t i v e s of the P o l e s a n d R u s s i a n s , a m e e t i n g h a d been h e l d between M . M a i s k y a n d G e n e r a l S i k o r s k i a n d M . Z a l e s k i . A s t h e r e s u l t of t h i s m e e t i n g , M . M a i s k y h a d t e l e g r a p h e d c e r t a i n p r o p o s a l s to h i s G o v e r n m e n t , a n d i t w a s h o p e d t h a t a n a g r e e m e n t w o u l d be r e a c h e d between t h e t w o c o u n t r i e s . F r o m t h e R u s s i a n p o i n t of view, t h e m o s t difficult i t e m w a s p e r h a p s t h e p r o p o s a l t h a t t h e l a r g e n u m b e r of P o l i s h p r i s o n e r s i n t h e Soviet U n i o n should be released a t once. G e n e r a l S i k o r s k i h a d shown a most a d m i r a b l e s p i r i t in t h i s discussion. T h e fact t h a t t h e s e n e g o t i a t i o n s h a d t a k e n p l a c e h a d become k n o w n , b u t i t w a s h o p e d t o avoid p u b l i c discussion of t h e d e t a i l s thereof, T h e F o r e i g n S e c r e t a r y r e p o r t e d r e q u e s t s w h i c h h a d been m a d e Russian t o h i m by M . M a i s k y . H e h a d i n f o r m e d t h e l a t t e r t h a t these Requests for British Military r e q u e s t s w o u l d be r e p o r t e d t o t h e Defence C o m m i t t e e . Action. 123 German Peace Offensive. Foreign Secretary^ Declaration. The Prime Minister i n v i t e d a t t e n t i o n t o t h e i m p o r t a n t ' d e c l a r a ­ t i o n m a d e by t h e F o r e i g n S e c r e t a r y i n h i s speech a t L e e d s o n t h e 5th J u l y t h a t we were not p r e p a r e d to negotiate w i t h H i t l e r at any t i m e o n a n y subject. W h i l e t h i s s t a t e m e n t e x p r e s s e d t h e o p i n i o n of t h e w h o l e W a r C a b i n e t , i t w a s p e r h a p s t h e m o s t e x p l i c i t p u b l i c d e c l a r a t i o n on t h e s u b j e c t w h i c h h a d been m a d e . S u c h a d e c l a r a t i o n h a d been necessary a t t h i s m o m e n t i n o r d e r to forestall a n y peace offensive b y H i t l e r i n t h e n e a r f u t u r e . o The W a r Cabinet declaration. Northern Ireland. Visit of Home Secretary. W . M . 66 (41). took note, with approval, of this , 6. The Home Secretary and Minister of Home Security gave a n e n c o u r a g i n g a c c o u n t of h i s visit t o N o r t h e r n I r e l a n d . I n s p i t e of severe bombing, t h e s p i r i t of t h e B e l f a s t w o r k e r s (e.g., a t H a r l a n d a n d Wolffs) w a s a d m i r a b l e . T h e N o r t h e r n I r e l a n d G o v e r n m e n t w e r e a n x i o u s t o be t o l d of d i r e c t i o n s i n w h i c h t h e y could co-operate i n t h e w a r effort. T h e n e w a r r a n g e m e n t , w h e r e b y t h e N o r t h e r n I r e l a n d M i n i s t e r of Commerce h a d a s s u m e d r e s p o n s i b i l i t y for t h e N o r t h e r n I r e l a n d A r e a B o a r d (of t h e P r o d u c t i o n E x e c u t i v e ) , seemed likely t o p r o v e a s a t i s f a c t o r y a r r a n g e m e n t . T h e W a r C a b i n e t took n o t e of t h i s s t a t e m e n t . Japan. Japanese Intentions in Indo-China. Strategic, Political and Economic Counter-Action. (Previous Reference: W.M. (41) 19th Conclusions, Minute 13.) 7. T h e W a r C a b i n e t h a d before them-— (i) A M e m o r a n d u m by t h e S e c r e t a r y of S t a t e for F o r e i g n Affairs ( W . P . (41) 154) c o n t a i n i n g r e c o m m e n d a t i o n s a s to t h e s t r a t e g i c , p o l i t i c a l a n d economic c o u n t e r - a c t i o n w h i c h H i s M a j e s t y ' s G o v e r n m e n t m i g h t t a k e i n t h e event of t h e J a p a n e s e seizing points oVappui in I n d o - C h i n a . (ii) A M e m o r a n d u m by the S e c r e t a r y of S t a t e for F o r e i g n Affairs ( W . P . (41) 155) c o v e r i n g a M e m o r a n d u m b y t h e M i n i s t e r of E c o n o m i c W a r f a r e , s e t t i n g o u t t h e economic r e s t r i c t i o n s a g a i n s t J a p a n w h i c h h a d been p u t i n t o force a s t h e r e s u l t of decisions by t h e F a r E a s t e r n C o m m i t t e e . A c o m p r e h e n s i v e scheme of r e s t r i c t i o n s w a s n o w i n operation throughout the British Empire, w i t h the c o l l a b o r a t i o n of t h e N e t h e r l a n d s a n d t h e U n i t e d S t a t e s Governments. The Foreign Secretary asked for C a b i n e t a u t h o r i t y t o t a k e t h e m e a s u r e s set o u t i n p a r a g r a p h 5 of W . P . (41) 154 i n t h e event of f u r t h e r J a p a n e s e a c t i o n in I n d o - C h i n a . H e d i d not a t t h i s s t a g e a s k a p p r o v a l for t h e m e a s u r e s s u g g e s t e d i n p a r a g r a p h 6, w h i c h t h e N e t h e r l a n d s G o v e r n m e n t r e g a r d e d a s p r e m a t u r e , before t h e J a p a n e s e h a d taken open action a g a i n s t British or D u t c h possessions. T h e F o r e i g n S e c r e t a r y also s u g g e s t e d t h a t t h e D o m i n i o n G o v e r n m e n t s a n d H i s M a j e s t y ' s A m b a s s a d o r , Tokyo, s h o u l d be c o n s u l t e d a s a m a t t e r of u r g e n c y a s to w h e t h e r t h e y f a v o u r e d d e n u n c i a t i o n of t h e A n g l o - J a p a n e s e C o m m e r c i a l T r e a t y of 1911, so a s t o e n a b l e t h e C a b i n e t t o t a k e a r a p i d decision if t h e J a p a n e s e moved i n I n d o - C h i n a . I n discussion, i t w a s a g r e e d t h a t t h e g e n e r a l s i t u a t i o n d i d n o t justify us in taking strong deterrent measures to prevent further J a p a n e s e e n c r o a c h m e n t s . O u r . p o l i c y m u s t t h e r e f o r e be, for t h e present, to take a p p r o p r i a t e counter-action after each encroachment, c a l c u l a t e d t o p l a y o n J a p a n e s e r e l u c t a n c e to come i n t o t h e w a r a g a i n s t a n u n b e a t e n a n d still f o r m i d a b l e c o u n t r y . A s p a r t of t h i s policy, the Minister of Economic Warfare. s u g g e s t e d t h a t t h e F a r E a s t e r n C o m m i t t e e should be i n s t r u c t e d to i n t e n s i f y t h e i r s t u d y of possible economic r e s t r i c t i o n s a g a i n s t Japan. . The W a r C a b i n e t ­ (1) S u b j e c t t o t h e C h i e f s of Staff n o t i f y i n g t h a t t h e y h a d no objection, g a v e g e n e r a l a p p r o v a l to t h e l i n e of policy o u t l i n e d i n W , P . (41) 154, a n d a u t h o r i s e d t h e F o r e i g n S e c r e t a r y t o proceed w i t h t h e c o n s u l t a t i o n s o u t l i n e d t h e r e i n , w i t h t h e e x c e p t i o n of t h e p r o p o s a l in p a r a ­ g r a p h 6. (2) Took n o t e , w i t h a p p r o v a l , of W . P . (41) 155, a n d directed the F a r E a s t e r n C o m m i t t e e to consider, in c o n s u l t a t i o n w i t h t h e F o r e i g n S e c r e t a r y a n d t h e M i n i s t e r of Economic W a r f a r e , t h e p o s s i b i l i t y of t i g h t e n i n g - t h e screw still f u r t h e r a g a i n s t J a p a n b y means of i n c r e a s e d economic r e s t r i c t i o n s , even i n the absence of f u r t h e r p r o v o c a t i o n by t h a t c o u n t r y . Home Defence. Proposed London Defence Exercise. (Previous Eef erence: W.M. (41) 62nd Conclusions, Minute 9.) 8. T h e W a r C a b i n e t h a d before t h e m a E e p o r t from t h e H o m e Defence C o m m i t t e e ( W . P . (41) 152) s e t t i n g o u t t h e i m p l i c a t i o n s a n d a r r a n g e m e n t s o n t h e C i v i l side w h i c h t h e proposed L o n d o n invasion exercise w o u l d e n t a i l . On t h e g e n e r a l q u e s t i o n of the a d v a n t a g e s to be secured by t h e exercise, i t w a s e x p l a i n e d t h a t t h e C o m m a n d e r - i n - C h i e f , H o m e Forces, w a s most a n x i o u s t h a t t h e exercise should be held. He r e g a r d e d t h e exercise a s most necessary i n o r d e r to t e s t o u r a r r a n g e m e n t s a n d to g a i n p r a c t i c a l k n o w l e d g e of a n u m b e r of p o i n t s of w h i c h w e now h a d no experience. T h e M i n i s t e r s i n c h a r g e of the C i v i l D e p a r t m e n t s m o s t concerned (the M i n i s t e r of H o m e Security, t h e M i n i s t e r of H e a l t h a n d t h e M i n i s t e r of Food) s u p p o r t e d t h i s view. On t h e o t h e r h a n d , i t w a s u r g e d t h a t t h e scheme w a s open to c o n s i d e r a b l e objections. T h e p r o p o s a l to hold t h e exercise could not be a n n o u n c e d v e r y f a r in a d v a n c e , lest the enemy m i g h t t a k e a d v a n t a g e of i t . T h e r e w a s a l w a y s a r i s k t h a t t h e exercise m i g h t be m i s t a k e n for a real p a r a c h u t e l a n d i n g a n d t h a t c a s u a l t i e s m i g h t occur. A g a i n , t h e inconvenience caused w o u l d be very considerable a n d m i g h t well give rise t o considerable d i s s a t i s f a c t i o n a n d criticism. I t w a s difficult to believe t h a t t h e m i l i t a r y a u t h o r i t i e s could n o t o b t a i n a d e q u a t e e x p e r i e n c e by a Staff exercise w h i c h would n o t involve s u c h w i d e s p r e a d d i s t u r b a n c e to t h e l i f e of the Metropolis. T h e f o l l o w i n g p o i n t s w e r e m a d e i n r e g a r d to t h e d e t a i l s of t h e scheme :— (1) The Secretary of State for Air w i s h e d i t t o be r e c o r d e d in t h e M i n u t e s t h a t t h e scheme m u s t n o t c u r t a i l t h e R o y a l A i r F o r c e o p e r a t i o n a l c o m m u n i c a t i o n system. (2) The Minister of Health s a i d t h a t i t Would be necessary to m a k e some special a r r a n g e m e n t s to e n s u r e t h a t h o s p i t a l s got t h e i r m i l k s u p p l i e s . 1 T h e W a r C a b i n e t decided a s f o l l o w s : — . I n view of t h e considerable volume of o p i n i o n a g a i n s t the scheme voiced i n the W a r C a b i n e t , t h e m a t t e r should be e x a m i n e d a t a M e e t i n g of t h e Defence C o m m i t t e e ( O p e r a ­ tions) w h i c h . . t h e C o m m a n d e r - i n - C h i e f , H o m e F o r c e s , s h o u l d be i n v i t e d to a t t e n d . Q 125 Pharmacy and Medicine Bill. W . M . 66 (41). 9. R e f e r e n c e w a s m a d e to t h i s Bill, of w h i c h t h e Second R e a d i n g w a s to be t a k e n on t h e f o l l o w i n g day. The Prime Minister a s k e d w h e t h e r c o n s i d e r a t i o n h a d been given to t h e i n c l u s i o n i n t h e B i l l of a p r o v i s i o n w h e r e b y t h e cost of t h e r a w m a t e r i a l s of p a t e n t m e d i c i n e s should be s t a t e d o n t h e package. The Chancellor of the Exchequer a n d Minister of Health explained t h a t the Purchase T a x on p a t e n t medicines brought in £ 3 m i l l i o n a y e a r , a n d t h a t t h e r e p e a l of the s t a m p d u t i e s (which w o u l d cost £800,000) w a s i n e v i t a b l e . T h e scheme embodied i n t h e B i l l h a d involved a g r e e m e n t s w i t h a very l a r g e n u m b e r of a u t h o r i t i e s , a n d a s a r e s u l t i t w a s h o p e d t h a t t h e B i l l w o u l d meet w i t h little opposition. I t was feared t h a t it would almost certainly be i m p r a c t i c a b l e to i n c l u d e i n t h e B i l l a p r o v i s i o n on t h e lines suggested. T h e W a r C a b i n e t took n o t e of these s t a t e m e n t s . Great George Street, S.W. July 7, 1941. 1, OUTWARD TELEGRAM [$his Document is the Property of His Britannic Majesty'8 Government, and kept under Lock and Key.] [ T h i s t e l e g r a m i s of p a r t i c u l a r s e c r e c y a n d s h o u l d be r e t a i n e d by t h e a u t h o r i s e d r e c i p i e n t and n o t p a s s e d onj* . AMENDED DISTRIBUTION. [Cypher], WAR CABINET DISTRIBUTION. TO: EGYPT. FROM FOREIGN OFFICE TO CAIRO. No: 2568 TWIST. D: 7th July, 1941. i 5 i i 6 S & & 8.00 p.m. 7th J u l y , 1841, H * S MOST BifEDIATE. F o l l o w i n g f o r M i n i s t e r of S t a t e from Prime M i n i s t e r . Begins: PERSONAL AND SECRET. 1. Very g l a d you have a r r i v e d s a f e l y . Have t a l k e d t o Anthony i n Y o r k s h i r e a b o u t y o u r No: 1 T w i s t . You w i l l a l r e a d y have r e c e i v e d War O f f i c e 76097 to C o m m a n d e r - i n - c h i e f M i d d l e E a s t which c r o s s e d y o u r s . Emyhasis of t h e s e two t e l e g r a m s i s somewhat d i f f e r e n t b u t we a c c e p t and i n d e e d prefer yours. Proceed accordingly i n your r e l a t i o n s with Free French. 2. However you must n o t o v e r l o o k t h e main p o i n t which i s t o g a i n t h e Arab w o r l d by e s t a b l i s h m e n t and p r o c l a m a t i o n a t e a r l i e s t of S y r i a n i n d e p e n d e n c e i n v / h a t e v e r form i s most acceptable. Your p a r a g r a p h 3 of No: 1 . T w i s t i s f a r from adequate. Our p o l i c y i s t o g i v e t h e S y r i a n Arabs i n d e p e n d e n c e , we a r e q u i t e w i l l i n g t h a t t h e F r e e F r e n c h s h o u l d r e p r e s e n t t h e i n t e r e s t s of F r a n c e and p r o v e t h a t among t h e n a t i o n s of E u r o p e F r a n c e i s t h e f a v o u r e d and p r i v i l e g e d power i n S y r i a . O-^r o n l y B r i t i s h i n t e r e s t s e x c e p t o r d i n a r y t r a d e a r e t o k e e p t h e Germans o u t and win t h e w a r . 5. From t h i s p o i n t of view t h e A r a b s b u l k f a r more l a r g e l y i n o u r minds t h a n t h e F r e e F r e n c h and t h e r e can be no q u e s t i o n o f any l e n g t h y d e l a y i n n e g o t i a t i n g t r e a t i e s which s a t i s f y them and c o n v i n c e them t h e y have n o t m e r e l y e x c h a n p e e d one s e t of Frenchmen f o r a n o t h e r . Catroux's proclamation" s a y s " a s soon a s p o s s i b l e " . T h i s s h o u l d mean t h a t w i t h i n a few d a y s of t h e V i c h y F r e n c h s u r r e n d e r i n g prompt and v i g o r o u s n e g o t i a t i o n s s h o u l d b e g i n , and be p r e s s e d e a r n e s t l y and swiftly to a conclusion. 4, N o t h i n g i n t h e above of c o u r s e a f f e c t s B r i t i s h m a r t i a l l a w which we need t o . d e f e n d t h e c o u n t r y and k e e p o u t t h e Germans. I h a v e . n o d o u b t you have a l l t h i s i n y o u r mind. [ C o p i e s s e n t t o S e c r e t a r y of S t a t e f o r F o r e i g n A f f a i r s , S e c r e t a r y of S t a t e f o r War, C . N . S . , GVI*G*S., C . A . S . , M a j o r M o r t o n , Major A . H . H e a d ] , [This t e l e g r a m i s of p a r t i c u l a r s e c r e c y and s h o u l d "be r e t a i n e d b y t h e a u t h o r i s e d r e c i p i e n t and not passed on]. TENDED DISTRIBUTIONS WAR CABINET DISTRIBUTION, From: EGYPT. From S i r M. Lamps on No. 1 Twist 6th "July, 1941, 1 CAIRO To FOREIGN OFFICE, D. 1.40 p.m. 6th J u l y , 1941, R, 2 , 1 3 p,m. 6th J u l y , 1941, www MOST IMMEDIATE fl TWIST, Following f o r the Secretary of S t a t e f o r Foreign A f f a i r s from the M i n i s t e r o f S t a t e , MOST SECRET. . War O f f i c e t e l e g r a m No. 75858 o f 3rd J u l y . I have examined t h i s q u e s t i o n i n c o n s u l t a t i o n /with H i s M a j e s t y ' s Ambassador and General H e a d q u a r t e r s , Middle E a s t , and have r e a c h e d t h e f o l l o w i n g c o n c l u s i o n s . 1. The C i v i l A d m i n i s t r a t i o n o f S y r i a cannot b e c a r r i e d out s a t i s f a c t o r i l y i f a t a l l w i t h o u t t h e a c t i v e c o - o p e r a t i o n o f t h e French C i v i l o f f i c i a l s . 2. T h i s p r a c t i c a l p o i n t i s r e i n f o r c e d b e c a u s e we s u p p o r t e d General C a t r o u x ' s p r o c l a m a t i o n which p r o v i d e d f o r him t o assume t h e p o w e r s , r e s p o n s i b i l i t i e s and d u t i e s o f France i n the Levant and we must honour our word, 3 . . The t r e a t i e s t o be n e g o t i a t e d b e t w e e n the r e p r e s e n t ­ a t i v e s o f S y r i a and t h e Lebanon w i l l no doubt i n c l u d e a m o d i f i c a t i o n of t h e s t a t u s and f u n c t i o n o f t h e French c i v i l authorities. 4. The i n t e r e s t o f t h e Commander-in-Chief c a n , I s u g g e s t , o n l y be t o m a i n t a i n c o m p l e t e m i l i t a r y c o n t r o l i n S y r i a n o t o n l y i n t h e p r e s e n t o p e r a t i o n s b u t s o as t o p r o v i d e a g a i n s t c i v i l d i s o r d e r s or any f u t u r e enemy a t t a c k s . This w i l l be s e c u r e d b y t h e c o n t i n u a t i o n o f B r i t i s h m a r t i a l law which w i l l mean t h a t t h e French A d m i n i s t r a t i o n can t a k e no a c t i o n which may a f f e c t the m i l i t a r y s i t u a t i o n w i t h o u t t h e c o n s e n t of t h e General O f f i c e r Commanding i n C h i e f P a l e s t i n e . 5. The General O f f i c e r Commanding must have t h e a b s o l u t e r i g h t t o d e c i d e how l o n g t h e maintenance of m a r t i a l l a w i s n e c e s s a r y and i f you a g r e e I i n t e n d t o l e a v e no doubt i n de G a u l l e s and C a t r o u x ' s minds t h a t we are t o h e t h e s o l e gauges o f how l o n g m a r t i a l law i s t o c o n t i n u e i r r e s p e c t i v e of t h e c i r c u m s t a n c e s . T h i s may, i n due c o u r s e , l e a d t o .a c l a s h of v i e w s w i t h Catroux h u t t h e immediate need i s t o s e c u r e h i s c o n t i n u e d f r i e n d l y c o l l a b o r a t i o n and t o i n d u c e him ' t o honour t h e d e c l a r a t i o n o f independence. This w i l l n o t be p o s s i b l e i f we t r y t o h o l d back on t h e q u e s t i o n o f c i v i l aaministration 1 0 6. L i a i s o n between t h e General O f f i c e r Commanding and t h e French A d m i n i s t r a t i o n should b e m a i n t a i n e d b y one mission. T h i s can n o m i n a l l y be a branch of t h e Spears M i s s i o n , On a l l m a t t e r s o f p o l i c y i t would b e r e s p o n s i b l e t o t h e General O f f i c e r Commanding but would have t h e r i g h t of communication t o t h e M i s s i o n m London, However, I recommend l i b e r a l and n o t n i g g a r d l y approach t o the c i v i l q u e s t i o n w h i l s t making t h e most s t r i n g e n t conditions td safeguard m i l i t a r y requirements. I f you agree t o t h e s e c o n c l u s i o n s I p r o p o s e t o inform General de G a u l l e and t h e Commander-in^-Chief. Please t e l e g r a p h u r g e n t l y as de G a u l l e i s p l a n n i n g t o l e a v e f o r B r a z z a v i l l e on T u e s d a y c