# Cab 195/4 C A B I N E T M I N U T E S

# C.M.(46)13Th  Meeting (Cont'D) - C.M.(46) 108Th Meeting

## 4. Shipping In 1946

 Barnes. 
As in memo. 
 
Two points.  Examine early in year - Admy & I with M/L - whr we can 
reduce the 10% awaitg. or undergoing repair. /y. 
 
 
Whether Service requirements can be reduced.  Look at each ship & 
see whr it is requd. i.e. onus on Service dept. to prove. 
 
 
Coal in Scandinavia.  If we hadn't to bunker them we cd. bring in more 
cargoes. 
 
U.S. Tonnage.  Bland Bill now passed with no power to charter to 
foreigners. We are asked for shipping contn to U.N.R.R.A. pmmes.  
Involves chartering from U.S. 
 
If we can't charter, we shall be forced to consider purchase.  I wd. 
recommend wholesale purchase only as last resort because repercussions on our own bldg. P'ramme & wd. have us with obsolescent U.S. tonnage at period of keen competition. P.M. 
Have asked Serv. Ministers to review their cargo shipping requirements. S. 
That is in hand. J.J.L. 
Less than 1/3 rd. of 1.8m to Service: not to our civil a/c. Barnes. 
There is dual purpose use. P.M. 
Use surpluses already abroad. 
 
Fleet train in East? C. Ld 
314.000 q.r.t. is comg. down to 195,500 q.r.t. by June '46.  Total to be retd 
500.000. E.B. 
What do you want to keep 195,500 for? P.M. 
 Must be reduced.  Object was no basis.  But you've got the basis now. E. Sh. 
How many ships used for S.E.A. P.M. 
Leave that alone.  x/ Let me have full & early reports for Defence Cttee/x S. 
Trooping.  One of R.A.F. complts & shortage of shipping.  Air-trooping is 
reduced. E.B. 
On y/ above, see whr. system of B/Adl. days has bn. stopped by wh. ships 
u'lessed repair needs before they came in & repairs went on durg. unloading etc., 50% of repairs were done that way during war. E.Sh 
And don't put on too many frills in repairs. C.Lord. 
Mtg. already laid on for next week. R.S.C. 
Export  p'mme concerned re tonnage & even more re destinations.  Orders 
are rising & we fear hold-up on shipping.  Esp. because so little storage. 
 
 
Suggest high. level regular consultn with M/W.T. on export p'mme. P.M. 
{ Consultn between R.S.C., Barnes & Wilmot on exports. 
 
{ Consider if B. Smith shd. be brought in, to cover import conflicts. E.B. 
Seek good contact with dock managers: for turn-around.  Cttee. monthly 
mtgs. with Minister: need encouragement.  Via reliance always on 
owners. B.S. 
400.000 t. short on refrigerated tonnage for '46.  Food waitg. for me in 
Australia. Wd. help v. much if services cd. release. P.M. 
Take that up urgently with Services. 


                                        [Enter Winster.  Exeunt Smith: C. Lord. 
 

## 5. Civil Aviation

 A. 
Explained points in his memo. 
 
After consultg  P.M. telegram sent to Delegation.  No reply recd.  But 
subject to satisfy. reply, recommend tht. this agreemt. be accepted. 
 
Condn re pressure on Canada & Newf. - reject. 
 
Condn re spare parts.  Para 4 (b). 
 
Thought best tactics wd. be for H.M. Amb. to make repns to high authies in 
Washington. 


Agreed { as regards change of gauge.  As in Para. 3. 

            { as in memo. Para. 4(a) and (b). 
U.S. have now put up 3 more condns - even worse.  Clear tht. agreemt. re 
bases is separate:  shd. be handled separately.  C. A. Cttee can now see 
draft of that agreemt. & will hold early mtg.  M'while wish our Delegn 
to be instructed to treat bases agreement as quite separate. 
 
 
Read out draft telegram. 


Also agreed. R.S.C. 
Cd. Ld. Chanc. be added to C.A. Cttee for this? P.M. 
Yes. 


[Exeunt: remaining 

   invitees. 

## 6. Greece: U.N.O. Discussions.

 E.B. 
V. Authd by his Govt. to accept Stettinius' draft.  I told him we cdn't agree 
to that. 
 
Some difficulty with Chairman.  A. helped - got High Commis. together to 
see whr. B. Comm. was solid behind me.  It was.  Spoke then to Makin & got Brazley to coach him.  He agreed. 
 
Then Stettinius lined up with different - and worse - draft. 
 
Chairman did produce his decln.  V. objected:  but was nervous.  Interpreter 
muddled it:  I asked for copy.  Asked for adjournment to get certain that V. wouldn't "edit" the verbatim rpt. 
 
Greeks feared that if I pressed further it wdn't help situation in Greece.  
Council ndn't adopt procedure allowing a vote - i.e. wdn't treat it as a 
dispute between U.K. & Soviet. 
 
After an hour's thought, concluded I'd better not push it further. Bidault said 
afraid to go too far because of Communists in France. 
 
Acted therefore as reported in Press. 
 
Asked V. what he meant by "Greek ques. is closed".  He said "closed 
between our Govts."  Said he wd. go as far as he could. P.M. 
E.B. deserves the thanks of the Cabinet. 

## 7. Agricultural Wages.

 T.W. 
 Lrs. sent to Ag. Workers, Transport & Farmers Unions.  Offering help of 
M/L. conciln offr. 
 
Farmers Union reply - willing if guarantee tht. cost will go on prices. 
 
Ag. Workers - none of our Reg. Confcs have favoured grading. 
 
No written reply from Transpt. & Genl. 
 
Have met Deptn of Govt. supporters.  Dissatisfied with my answer.  Stressed 
the importce of industry lookg. at graded wages. 
 
M/L and I with Ch. Whip agreed to meet Food & Ag. Cttee. of Party, & told 
them so. They put Motion to Party Mtg. - w'drew it on condn we met 
them again tonight.  They are now using food shortage as another 
reason for demanding higher wages.  We cd. stand on present attitude.   
I cd. recommend another course. 
 
 
G.A.I. thinks he cd. succeed in gettg. the industry together. G.A.I. 
The letter sent assumed they wd. meet.  I now suggest that I shd. call them 
together. 
 
Then we can say we did our best..  And if they come together we cd. do 
something. 
 
 
Possibly might have to accept some increase in minimum as facesaver. 
 
 
My actions wd. be as conciliator. T.W. 
If Cab. feel more must be done, get a P.Q. to effect, in view of world 
shortage wd. it be appropte for Ag. wages Bd. to take this into a/c as a 
factor.  And I wd. say in reply "Yes". 

 
Quoted fr. & t. of  r. "after takg. into a/c general economic condns." R.S.C. 
That wd. be clear invitn to Board to raise wages because of shortage. 
 
H.D. 
Cost of claim = £50M if whole cost passed on by farmers.  We can't tackle 
that. 
 
 
Can't farmers carry some of this? E.B. 
Thousands are paying it already.  And Farmers Union don't take a/c of that 
in their price demands. 
 
 
General feeling - against T.W. alternative. 
 
 
5.  
(contd) Civil Aviation. 
Read telegram from Washington.  State Dpt. already agreed two 
 
agreements must be handled separately. 

## 1.       Indonesia:  Discussion In Security Council.

 E.B. 
Van K. said no objn to mission into conduct of B. troops, so long as not 
Dutch troops! 
 
 
Hence suggn = enquiry into cond. of our troops, tho' no one asks for 
their w'drawal. 
 
This time I followed V.'s line & said I wdn't agree to such a resoln. 
 
Clear that R. objection is to get foot-hold in S.E.A.  If we have diffy. in 
India, they wd. demand enquiry into that tho' we are sovereign power.  
We shall have to study terms of Charter on that - v.v - to B. Empire - 
after U.N.O. mtg. is over: & I must be careful not to set precedent. 
 
Thus, in last speech, narrowed it down to conduct of B. troops & refused 
enquiry into that. 


Levant: decided not to give B. propn to Genl. Lecture, hated by Levantines. 
 
Egypt: doubt if we can retain B. troops there.  Must consider whole of M/E 
strategy.  If we keep troops there (Egypt) must be by invitation & on mutual territory. 
 
B. Empire must face this..  Australia is in much more danger fr. R. than ever 
was from Japan.  Power politics reaching down to S.E. 
 
No support fr. U.S. - who think their role is conciliation between U.K. & R.  
This is not merely a row over Indonesia.  V. serious situation for B. Empire.  Must consider as a whole soon after U.N.O. J.J.L. 
Support F.O. in refusing enquiry. Our soldiers are in v. gt. diffy. there.  Wd. 
sooner bring our troops out, if Dutch don't support. 
 
P.M. 
If Dutch insist on their sovereign rights they can look after them alone. 
 
 
If any enquiry it is for C.C.O.S., by whose orders we are there. E.Sh. 
What is the game on S. Council - can't we take the offensive. 
 
W. Bloc. supposed to be v. internatl. unity.  But other Blocks now forming.  
Shd. we not close up with W. Powers for our own protn? E.B. 
S. Democracy must become more cohesive - Communism is v. cohesive. 
 
Believe U.S. will turn away from extreme capitalism in 5-6 years. 
 
Diffies. because undisciplined statements from among our own Party. A.B. 
This is a bit pessimistic.  Procdgs. of last 2 wks. have done us good, not 
harm, in eyes of the world. 
 
Vote of Poland (a Communist) last week.  In countries round R. there are 
signs of anti R. bias.  Communist war in Europe may be about to recede.  Mustn't therefore let R. force us into untenable position. 
 
 
Hence importce of early agreemt. with Egypt & Arab States.  Prospects 
of vol. agreemt. on diff. (economic) basis.  Egypt is the clue to this. 
| A.V.A.                                        | F.O. doing well:  but agree with his picture.  of. pre. election statements    |
|-----------------------------------------------|--------------------------------------------------------------------------------|
| from Moscow.  Intent                          |                                                                                |
| n                                             |                                                                                |
| to retain Army etc.  Threat is Turkey, who've |                                                                                |
| said they'll fight if attacked by R.          |                                                                                |
|                                               | Want E.B. to know he has Cabinet support.                                      |
|                                               |                                                                                |
| P.M.                                          | Agree - rallying to E.B.'s lead.  Must consider M/East policy as whole.        |
|                                               |                                                                                |
| J.                                            | E.B. shd. take strong line with Van K. privately.                              |
|                                               |                                                                                |
|                                               |                                                                                |
|                                               |                                                                                |
|                                               |                                                                                |

2. 
South-East Asia.  Commissioner General.       F.O. Staffing Problems. 

 
E.B. 
We discussed need for co-ordinated policy in Far East.  Diffy. in finding the 
man. Selected Killcarn.  Famine over rice.  Will put Sir R. I. Campbell in Egypt. 
 
F.O. Staff.  Diffy. arises from gaps in entry, driving last two wars. Am 
posting Stevenson to China - to concentrate on trade rather than 
politics.  Genl Crawford going to Greece vice Scobic.  Leeper to leave 
Greece.  Other moves impending.  W'in F.O. am also going to make changes. Must move steadily.  Moving le Ronqetal from Romania. H.M. 
Paris? E.B. 
Not yet. G.H. 
Must be careful in announcg. Killcarn's appomt. - to prevent confusion with 
Govr. Genl. Malaya. P.L. 
[ Durg. war these difficies (Item 1) were resolved by Heads of State. Wd. 
there be advantage in approach to Stalin? 
         x/
E.B. 
[ No. Had it out with him in Moscow & he accepted our posn. A.B. 
[ Real expln is stresses within Russia.  Hang on pro tem. T.W. 
Agreed: return of Red Army addg. to diffies  Much disturbance. 
 
 
This is largely to divert attention from R. own domestic diffies. G.A.I. 
Gt. impn made by E.B. in U.S. 

## 3.    India

 P.M. 
Propose to send out S/S. India, R.S.C. and A.V.A. 
 
Party Delegn returng. to-morrow.  Better not announce in this busy week. 
Prefer Tuesday of next wk. R.S.C. 
Personal diffies - sooner the better. Can't buy clothes or get inoculated! 

 
After discussion, accepted Tuesday. H.M. 
Present economic troubles at home, shall we criticised for sending R.S.C. to 
India? P.M. 
Probably we shall - but must face it. A.B. 
Indicate who will take charge. R.S.C. 
Want H.M. to do so. P.L. 
Read telegram from Viceroy - who wants to know before announcement is 
made reactions of H.M.G. to his proposals.  This is unreasonable.  
Hope to square him. 
 
 
Agreed:   announce Tuesday. 

## 3. Import Programmes For 1946.



[Enter Barnes, Smith, 

 Wilmot H.D. 
Have spoken to P.M. & E.B. about overseas commitments.  E.B. has often 
agreed we can't go on indefinitely.  Have also raised it at Def. Cttee. But feel I must bring the thing to Cab. as a whole. 
 
Thus 3 questions.  
a) imports for first 6 months, I need decisions today. b) overseas deficit =  no decision to-day:  but small Cttee of M. c) dried eggs, wh. I've discussed with M/F. 
 
a) Deal first with a).  Income £705M.  Exoprt over £1.500M, even on my 
reduced p'mme.  i.e. £1.075M for imports : £300M. for mil. expre 
overseas : £100M for pol. commitmts overseas.  Deficit:  over £800M. U.S. loan is only £900m odd: & we haven't yet got it.  Nor have we got loan from Canada or agreemts. with sterling countries. 

b) On overseas exprt:  we must seek relief.  W'draw troops or make 
people pay. Why shdn't Dutch pay for Indonesia - they have gold reserves, more than we have, as have the French too. 
 
No more "special cases".  Foreigners shd. give money for value in future. 
 
On a) and b) together, draw attentn to paras. 14-16 and 19. P'mme recommd 
is in para. 16. 

 
Keynes' paper.  Not every figure reliable:  but total shows v. bleak position. 
Madness of our policy in Germany. 
 
 
France & Holland -  no more loans, they are better off than us. 
 
 
Egypt: sterling balance of £700M & rising because of contd presence 
of B. troops.  we borrowg. money from Egypt to keep them there. 

 
Must change this trend.  Esp. "cuttg. down our overseas expend.". 
 
P.M. 
Overseas expre - we must play a hand.  And we can't pull out troops at 
present. Don't see why Dutch & Fr. shdn't pay.  Or why some of our friends eg. Canada shdn't help in Germany. 
 
Ministers need more time for long-term.  Consider again later i.e. (b). R.S.C. 
Our figures based on assumpn no switch to home consumptn. 
 
Looks as if we cd. attain the £700M - except for possible. loss of prodn for 
lack of coal.  If coal shortage continues or gets worse, we might drop to £600 or 550M. 
 
Overseas expendre - not all mil. & pol.:  some = trade credits. This is 
remuneration for the future.  E.G.  telephones in Poland.  Suggest some 
sum be set aside for that. 
 
B.S. 
a) Except for manuf. meats, I can make no diet improvemt. on this p'mme 
 
     
No increase in bacon - oils & fats.  App. C. shows tht. all my desired 
improvemts. are cut out on financial grds. 
 
 
Believe there easemts. wd. have earned dividends in increased prodn. 
 
 
Fear period of frustration - money to spend & nothg. to buy - with 
conseqn. drop in prodn. 
 
 
Wd. cost only about £20M. additional. H.D. 
c) Dried Eggs.  18.000t.  I conceded at last Cab. mtg.  The more I give now 
on dried eggs the less I can concede later on other things.  But I wd. go even higher on 2 conditions, i.e. to 21.000 tons.  He asked for 24.000.  
I offered 9 + 9 for 2 half years.  Now offer 9 + 12.  But on condn (i) but 
if we don't get U.S. loan he will have to cut it back, this not necessarily on d. eggs wholly; and (ii) wtr. the amount comes off other easements. 
 
 
Wd. be wrong to go further - over a mere political flurry. 

 B.S. 
Obvious that condn (i) can't be challenged. 
 
As rgds (i) easements offered are only war-torn areas etc., doesn't include 
U.S.  Can't therefore offset as proposed. E.Sh. 
No credit now for concession.  Why make any? H.M. 
Trouble is surely no shell. egg increase because of new cuts in animal feed.   
It is therefore new situation: not mere concession to shouting. B.S. 
Further reason: want to order enough to keep plant in operation. E.B. 
On a). Do the calculns allow enough for introdn of shipping in 1946.  Need 
for machinery to co-ordinate M/W.T. & import & export Dpts.  No solution to be found by general discussions.  Assume K.'s picture is right, can only be cured by practical means.  Dodging the dollar area - gettg. supplies Fr. other sources. H.D. 
These figures are for imports fr. all sources - not dollar only.  And it is 
standg. instn to Dpts. to avoid dollar purchases. E.B. 
Can't go on much longer w'out variety. 

 
Solution via manipulation of shipping.  M/W.T.  Agreed. 
 
Take these figures as the problem - then have Cab. Cttee & Officials to find 
solution thro' alternative sources of supply. 
 
A. 
Cd. tap Doms. if we were willg. to make long-term contracts. 
 
Eg. S. Rhod. tobacco.  Crop was doubled in war.  Cd. be doubled again if we 
cd. give assurance of contd orders. R.S.C. 
Can't tie ourselves up in that way just before I.G.A. Conference. 
 
We shd. have to adopt entirely diff. kind of economy. A.B. 
We were assured B. Woods decns were not inconsistent with bulk purchase 
agreemts. with Doms.  Let U.S. know we are forced to these measures 
to keep our people alive - then they'll come to heel. 
 
Can't step up prodn w'out more things to buy. H.M. 
Wrong to suppose tht. this Rpt. arises only from dollar expenditure. 
 
 
The Rpt. deals with all overseas expendre. 
 
 
K's paper shd. be taken v. seriously. 
 
We've got an Ec. analysis internal:  this was companion piece to that. On the 
Survey we found an inflationary gap & we've taken steps to adjust it.  
We must do the same with overseas expendre.  Unless we do, we shan't 
be able to buy what we need. 
 
No time to consider or comment.  Must have it considered - either by 
Ministers or offls. with freedom to comment on mil.& foreign policy. P.M. 
Def. Cttee are doing that. H.M. 
Shd. be considered in its economic setting. 

 A.V.A. 
Agree re size & importance.  Don't like some of K.'s attitude eg. "cut a  
dash".  Also £937M. only fr. U.S. loan, vice what K. hoped for last 
May.  Also doubt if some of estimates can be accepted. e.g. as reqd. future cost of Forces abroad. 

 
£50M. wd. make a big difference to "austerity" question. 

 P.M. 
On (b) wd. be useful to have examination by officials. E.Sh. 
If so, they must relate everything to everything else.  Can't decide until 
we've seen everything. 
 
K may have exaggerated.  Position coloured by dollar diffy.  Are there not 
alternative sources of supply in Doms.? P.M. 
That is being covered by study of what we wd. have to do if no U.S. Loan.  
Suggest we now accept the p'mme for 1st half of 1946. 
 
New Cttee won't help.  Want all existg. Cttees & Dpts. to keep dollar diffy. 
in mind. R.S.C. 
Only lack of liaison is between Defence Cttee & economic situation. 
 
| P.M.                                                                    | H.D. has expl                                                                   |
|-------------------------------------------------------------------------|---------------------------------------------------------------------------------|
| d                                                                       |                                                                                 |
| situation orally.  This memo cd. be circulated too.                     |                                                                                 |
|                                                                         |                                                                                 |
| R.S.C.                                                                  | Nor do Cab. get rpts. from Def. Cttee.                                          |
|                                                                         |                                                                                 |
| P.M.                                                                    | I will look into that point - hadn't realised it.                               |
|                                                                         |                                                                                 |
| A.                                                                      | Support for makg. Dutch & French pay.                                           |
|                                                                         |                                                                                 |
| P.M.                                                                    | I will ask C.O.S. or Def. Cttee to consider.                                    |
|                                                                         |                                                                                 |
| E.B.                                                                    | Wd. rather w'draw Fr. Indonesia than have it said we supplied mercenaries       |
| to the Dutch.                                                           |                                                                                 |
|                                                                         |                                                                                 |
| P.M.                                                                    | W'drew.                                                                         |
|                                                                         |                                                                                 |
| E.B.                                                                    | Have appt                                                                       |
| d                                                                       |                                                                                 |
| internal Cttee in F.O. to see where we cd. economise.  But              |                                                                                 |
| remember tht. R.'s attitude hasn't helped us to liquidate our           |                                                                                 |
| commitments.                                                            |                                                                                 |
|                                                                         |                                                                                 |
| B.S.                                                                    | Can I have my assessments in first half of '46.                                 |
|                                                                         | If our source dries up, can I switch to another?                                |
|                                                                         |                                                                                 |
| H.D.                                                                    | Yes.                                                                            |
|                                                                         |                                                                                 |
| B.S.                                                                    | Uneconomic transport because of loss of supplies. e.g. from S.E. Europe.        |
|                                                                         | S. Pacific: Can. wanted 4 yr. contract & have gone to end/47. Other Doms.       |
| wd. be ready to do more if we gave 2 yr. contracts.  Wd. like authy. to |                                                                                 |
| make such contracts.                                                    |                                                                                 |
|                                                                         | Buying butter in Denmark:  against R. compt                                     |
| n                                                                       |                                                                                 |
| .                                                                       |                                                                                 |
|                                                                         |                                                                                 |
| P.M.                                                                    | Put in memo. on long-term contracts.                                            |
|                                                                         | No early red                                                                    |
| n                                                                       |                                                                                 |
| of mil. commitments.  Might do it later.                                |                                                                                 |
|                                                                         |                                                                                 |
| E.B.                                                                    | Don't agree that all this must be done in 6 months.                             |
|                                                                         | Cut down food & you head for biggest industrial trouble ever.                   |
|                                                                         | People need more variety of food.                                               |
|                                                                         | Can't solve economic problems w'out practical improvisation e.g. switchg.       |
| shipping away from U.S.  Day to day work on this.                       |                                                                                 |
|                                                                         |                                                                                 |
| Barnes.                                                                 | Support E.B.  Must fight our way out of this.  Must however meet H.D.'s         |
| need w'in 12 mos. or we shall have another May Report!                  |                                                                                 |
|                                                                         | Finance:  trade:  Foreign Policy & defence are the 4 heads.                     |
|                                                                         |                                                                                 |
| R.S.C.                                                                  | The export orders are there, if we cd. make the goods.  Hence if it's true tht. |
| variety of food we. increase prod                                       |                                                                                 |
| n                                                                       |                                                                                 |
| we cd. pay for it in 6 months.  5%                                      |                                                                                 |
| more prod                                                               |                                                                                 |
| n                                                                       |                                                                                 |
| in return for £20M in food, & we cd. pay for it in 6 months.            |                                                                                 |
|                                                                         |                                                                                 |
| H.D.                                                                    | Spend a certainty in hope of a return.  We can't afford to do that.             |
|                                                                         |                                                                                 |
| P.M.                                                                    | Add £10M to first 6 months - leavg. food total unchanged.                       |

 
Then consider position later.  i.e. the certain is increased:  the provisional 2nd 
half year wd. be reduced pro-tem.


Dried Eggs. 


Agreed{ 21.000 tons on 2 condns made by C/Exchequer. 


[Exit Smith, Wilmot  


[Enter Winster 
 

## 4. Civil Aviation

 A. 
Change of guage.  U.S. counter proposal as at III in memo. handed round. 
 
Recommend acceptance, subject to amendmt. proposed. W. 
Telegram this a.m. shows U.S. have substantially met us on this point. Read    
it out. 

 A.B. 
Last time we were willing to go not so far.  This is dangerous because large 
no. of smaller aircraft. W. 
No:  they are limited by ref. to normal carry-on needs. 

 J. 
This is satisfactory. W. 
All governed by proviso - "regard must be had to local service". R.S.C. 
Also the smaller aircraft service is less reliable for local passengers. 
 
 
Agreed:  Change of gauge. 
 
A. 
Basis Agreement. 
 
Halifax urged us to allow Agreemt. to be initialled. 
 
Formula suggested as in IV - drafted by J. W. 
Read telegram this a.m.  U.S. Delegn wonder what lies behind it. 

|                        |
|------------------------|
| d                      |
| signing ad referendum. |

 
 
Concludg. with new formula.  This omitted infn to Art III. 
 
A. 
Art. III must be added. 
 
 
Agreed: subject to incldg. infn to Art. III. 
 H.M. 
Food: to-day.  Opposn think they shd. open - as they claimed it & are 
critical.  
 
 
Precedents in favour so is Speaker - Sorry because wanted B.S. to start 
clean. P.M. 
In opposn we shd. have claimed it.                Agreed concede. 

## 2. Lord Mayor'S Dinner

 P.M. 
Lord & Lady Mayor wish Private Dinner 6/3 for members of Cab. & wives. 

## 3. Reform Of House Of Lords

 P.M. 
Motion in H/Lds. by Cecil.  We inclined to reject 1st & 3rd proposals. 
 
I have spoken to H. M. King.  He took the view it was better to have it alone: 
and do nothing on any part of the proposals, incldg. the 2nd. E.W. 
These arguments don't apply to Peereses in own right. P.M. 
But this Motion goes far beyond that….  made Peers. A. 
Legn wd. be involved, even for "own right" point. - to declare tht. Sex 
Disqual.  Removal Act doesn't apply. 
 
Thght. we were going to consider after Debate - we taking no line. 
 
P.M. 
I told King so. But if you have to say anything, say we don't want to do 
anything at all at present.  I spoke to King on basis of motion on Paper. A. 
Leave it to free vote:  giving Cecil the hint to limit his Motion to "own right" 
cases.  Will discuss with C. & report to P.M. 

## 4.  Government Hospitality

 P.M. 
A lot of entertainment for U.N.O.  Cut down now on all large entertaing. for 
a time. 
 
 
[Exit W.W.  Enter J.W. 

## 5. Select Committee On National Expenditure:  Publication Of Secret Reports.

 H.M. 
Most rpts. publd:  but understandg. with Cab. tht. when security involved rpt. 
wd. go to 8.M. 
 
Tank Rpt. is real issue - Stokes has told me he won't press for the others. 
Tank prodn is not a good story.  Public interest in knowg. facts. 
 
 
No security objn. 
 
 
Ministers or offls. shdn't be permanently protected fr. discs of their 
mistakes. 
 
Diff. therefore to defend continued suppression. 
 
Pros. & cons. are in my memo.  My judgement: publish, with W.S.C.'s 
memo. 
 
If so, shd. we consult W.S.C. re publn of his memo.  Shd. we be allowed to 
add: not if Sel. Cttee can't add. P.M. 
Diff. view.  This was put up as secret & replies so given. 
 
If you want to bring out facts, have an enquiry. 
 
Publn of these poor rpts wd. cause scandal:  then you'd  have to have 
enquiry. 
 
These  p. mortems do little good. Cf. Pearl Harbour.  request re Singapore 
(endless chain).  Strain on soldiers, offls. etc. 
 
Can't publish one w'out others. J.W. 
Heavy arguments v reviving this controversy. 
 
Rpts, made in confidence - worded as such. 
 
Diversion of energy in makg. defence. T.W. 
Stressed x/ in para. 7.  Lessons for the future. A.B. 
I was interested too.  Tank prodn was disgraceful:  not prepd to cover up 
W.S.C.  Army now believes Stokes was right - wd. have saved many lives. 
 
W.S.C. sells his speeches in S. Session to U.S. Press.  Disgraceful procdg.  
Yet we are asked to resist publn. E.Sh. 
We must remember - we can't smear W.S.C. alone & some members of our 
Party were members of Coalition Govt. 
 
What cd. be said re other things. e.g. shipping. 
 
I've bn. asked to publish my S. Session speeches: not going to. 
 
If you provoke by this an attack on Coalition Govt. it won't do us any good.  
I agree with M/Supply tht. this is not an appropriate time - we've 
enough on our plate w'out provoking a storm over this. 
 
Argue with Stokes: can't confine it to Tanks.  Others interested in other 
things. P.M. 
Much more to be said - if we have to defend our part in Coalition. 
 
Bad for Country to get into p. mortem mood. A. 
a) Can't stop at publn of one. 
|                                                                          | b) Confidence: x/ in para. 7  If you start abusing that confidence you will     |
|--------------------------------------------------------------------------|---------------------------------------------------------------------------------|
| destroy value for future of confidl. advice.  Much wider issue than this |                                                                                 |
| range of reports.                                                        |                                                                                 |
|                                                                          |                                                                                 |
| J.J.L.                                                                   | Start on this & endless & indecision controversy will be provoked.              |
|                                                                          | Involved lives - will stir up feelings of relicts.  More damage than gain. even |
| if Stokes & A.B. were vindicated.                                        |                                                                                 |
|                                                                          |                                                                                 |
| E.W.                                                                     | Over riding consid                                                              |
| n                                                                        |                                                                                 |
| . Flak Cttee - gave pledge tht. confidence wd. be                        |                                                                                 |
| respected. Can't go back on our pledges.                                 |                                                                                 |
|                                                                          |                                                                                 |
| C.E.                                                                     | Members of Cttee have told me they wd. oppose publ                              |
| n                                                                        |                                                                                 |
| of evidence - because                                                    |                                                                                 |
| pledge of secrecy.  Publ                                                 |                                                                                 |
| n                                                                        |                                                                                 |
| shd. be confined to their report & W.S.C.                                |                                                                                 |
| reply.                                                                   |                                                                                 |
|                                                                          | Cd. you resist pressure for publ                                                |
| n                                                                        |                                                                                 |
| of  ev                                                                   |                                                                                 |
| ce                                                                       |                                                                                 |
| .                                                                        |                                                                                 |
|                                                                          |                                                                                 |
| H.M.                                                                     | Think so.                                                                       |
|                                                                          |                                                                                 |
| R.S.C.                                                                   | Good reason to w'hold these while ban on S. Session remained.  No security      |
| reason.                                                                  |                                                                                 |
|                                                                          |                                                                                 |
| J.                                                                       | I wrote Rpt. on Aluminium & wd. like it publ                                    |
| d                                                                        |                                                                                 |
| .  The inform                                                            |                                                                                 |
| n                                                                        |                                                                                 |
| was given in                                                             |                                                                                 |
| confidence, but the confid. related to war situation only.               |                                                                                 |
| Don't know why this is approp                                            |                                                                                 |
| t                                                                        |                                                                                 |
| time.                                                                    |                                                                                 |
|                                                                          |                                                                                 |
| A.B.                                                                     | If you say politically embarrassing, I yield.  Other reasons I don't accept.    |
|                                                                          |                                                                                 |
|                                                                          |                                                                                 |
| H.M.                                                                     | P.M. wd. no doubt defend a dec                                                  |
| n                                                                        |                                                                                 |
| not to publish.                                                          |                                                                                 |
|                                                                          | Need for good public reason for refusing.                                       |
|                                                                          | With'held then because security.  That doesn't apply now.  Serious matter       |
| for Govt. to w'hold.                                                     |                                                                                 |
|                                                                          | Had contemplated only publ                                                      |
| n                                                                        |                                                                                 |
| of Rpt and reply.  Wd. resist demand for                                 |                                                                                 |
| enquiry - even Parly. debate, this might have to consider latter on a    |                                                                                 |
| Supply Day.                                                              |                                                                                 |
|                                                                          | I believe Parlt. has the right to this information.                             |
|                                                                          |                                                                                 |
| A.V.A.                                                                   | Repercussions might. have serious results on U.S. loan.  Our situation          |
| caused hurried acquisition of Shearmans etc., Inadvisable therefore to   |                                                                                 |
| publish at present.                                                      |                                                                                 |
|                                                                          | Can't prevent Conser. fr. pressg. for other Rpts. if they see Party advantage   |
| in it.                                                                   |                                                                                 |
|                                                                          |                                                                                 |
| H.D.                                                                     | Favour publ                                                                     |
| n                                                                        |                                                                                 |
| - but not at present.  Enough to do.  Wait at least until W.S.C.         |                                                                                 |
| is back & notify him in advance of publ                                  |                                                                                 |
| n                                                                        |                                                                                 |
| .                                                                        |                                                                                 |
|                                                                          |                                                                                 |
| P.M.                                                                     | Certainly W.S.C. is entitled to be consulted.                                   |
|                                                                          |                                                                                 |
| A.G.                                                                     | In favour of publ                                                               |
| n                                                                        |                                                                                 |
| because inalienable rights of Parliament.                                |                                                                                 |
|                                                                          |                                                                                 |
|     |     |     | Postpone decision - for a month.    |
|-----|-----|-----|-------------------------------------|
|     |     |     |                                     |
|     |     |     |                                     |
|     |     |     |                                     |
|     |     |     |                                     |

## 6. German Fleet: Report Of Naval Commission

 A.V.A. 
Para. 6 (i).  Note from E.B. recommending we shd. not now do this.  We 
have since learnt tht. U.S. & Sov. Govt. have already taken unilateral action & are unlikely to make this request to French.  No need therefore to make a reservation on this.  i.e.  Reservations as on p.q. and no more. 
 
Signal to-day re attitude of R. Repves.  B. responsible for all mistakes, all 
transfer …..  No co-opn from them. T.W. 
Trawlers? H.D. 
Support this Rpt.  Floating docks worth almost all the rest. J.B.H. 
Annex D. para. 3.  Wd. like this to provide for perm intentn of some for 
repairs of other countries' ships & tempy  retentn others for repair 
p'mme. 
 
 
Mentioned in para 6 (2) but not made clear in Annex. 
 
 
Can wording be re-considered betwn. Admy. & Control Office. H.D. 
Supply covered already.  Barnes & A.V.A. agreed.  Let it ride. 
 
 
Agreed. 
[Exit Hynd: 


[Enter Tomlinson 

## 7. German Prisoners Of War

 G.A.I. 
Corrected figures in para. 2.                    get them here 
 
Diffy. with F.O. over Norway.  Can't do/ it until May. 
 
I agree with F.O.  As so late in comg. here, don't think they're worth having. 
 
 
Agreed: clear them from Norway, even tho' not into U.K. 
Addn to para. 5 (2) 
Present Cttee large enough - will co-opt other Dpts as requd. 

 P.M. 
Use of Poles? G.A.I. 
H.O. difficulties.  No condns requiring them to stay on the job. H.D. 
£2.3M a month on Poles.  Why can't we get them to work. E.Sh. 
Confce this wk.  

a) willing? b) Can we use c) Will N.U.M. agree? 
 
We are getting informn on  a).  Might avoid  c). J.J.L. 
Strong adverse publ. opinion v. permanent settlement. C.E. 
Supported that fr. H.O. pt. view. P.M. 
No suggn of permanent establmnt. E.Sh. 
May have to keep them for long time because if you employ at all it affects 
recruitment.  Cd. only absorb v. small nos., in practice. 

 
C.E. 
Trouble with members of other Allied Armies, who want to settle here. P.M. 
Review on basis of man-power shortage. A.B. 
Mad situation.  Deficit of 1.3M.  Yet. H.O. fear immigration.  Why? E.Sh. 
Where cd. we house them?  N.U.M. also must be handled v. carefully. P.M. 
Ques. is whr by sensible means we can make use of foreign labour, Poles in 
particular. 

 H.M. 
Pol. diffies in absorbg. large foreign popn.  Different if we do it temporarily. 
Don't be blackmailed by the cost.  I wd. be ready to give notice tht. no more pay wd. be given after a month. 



Agreed: { Enquiry by Ministers correspondg. to P.O.W. Allocn

             { Cttee:  foreign labour, particularly Poles. 
 

| T.W.                                             |
|--------------------------------------------------|
| therefore tht. max. no. of Germans will be alloc |
| d                                                |
| to agr.                                          |

 G.A.I. 
We have about 70.000 more, than we expected, to allocate. J.W. 
Para. 6.  I want specl. priority. P.M. 
No absolute priority - you're already at head of queue. S. 
In para. 5 - no refce now to removal of Defence works.  We've bid for 
30.000.  We guard & house them:  hard if we don't get our share. Ask therefore that priorities 1-3 be not exhaustive. 

 G.A.I. 
Not excluded. 



[Exit Barnes.  Enter Listowel 

## 8.   Victory Celebrations

 C.E. 
Services objected to Sunday (compulsory parade on a lay-off). 
 
Settled therefore on Sat. Before Whitsunday. 
 
Only objn = day precedg. opening of Labour Party Conf. at Bournemouth. 
Nos. attendg. that are small propn of 45m. H.M. 
My fear was that Ministers cdn't attend Celebrations:  for they have to go 
early to Confnc. viz Sat. pm. C.E. 
Procession will be over before lunch. H.D. 
Leak fr. Offl. Cttee. re 8/6:  many Members disturbed. 
 
Real business of Confce starts before the opening of the Confce. 
 
This date will wreck the arrangements. for the Confce. C.E. 
This date was adopted at 1st Ministerial Cttee - various members of Cab.   
 
Objn considered at 2nd Ministerial Cttee - it was Ministers not offls. wh. 
decided. S. 
Supported C.E. P.L. 
India wd. prefer July or August.  Little time to bring Indian troops here. C.E. 
Aug. wd. be impossible. -  holidays.  The longer we delay, the less repve of 
fighting men the Forces will be. 
 
If Cab. v. 8/6, next best wd. be 22/6.  If 15/6 no work durg. the week. E.Sh. 
Must you have it all? P.M. 
Don't go back on that decision. 
 
P.M. 
Can't afford loss of prodn.  This points to holiday.  Diff. to reject the best 
day merely because interferes with Labour Party Conference. R.S.C. 
Why not another Sunday? J.W. 
Feeling in Scotland. A.B. 
8/6 wd. wreck the Conference.  Hard choice for public view. T.W. 
No fun and games on Sunday night. H.M. 
Have them on a Sunday. G.T. 
Will be a flop on a Sunday.  Nothg. else but the holiday to rejoice over. 
 
You can't p'pone merely because of Labour Confce
 
If you p'pone, drop it altogether. E.Sh. 
Only real point = Confce. 

a) Many travel on Sat. or Sund.  We are travellg. this year on Sat. We cd. 
do our business on Sat. pm. 
b) Need we be in constituencies?  No: either Vict. in Ldn. or Confce. 
 
P.M. 
Or you cd., as in war, put big business on Tuesday vice Monday. H.D. 
I'm thinkg. of rank & file, who are important locally & to Conference. A.V.A. 
Balance of advantage clearly in favour of Celebrations on holiday wk. end. P.M. 
Take the small business on the Monday. R.S.C. 
Choice is:  another Sunday or this Saturday. 


Agreed:  Saturday 8/6 P.M. 
F.O. Egypt, Iraq and Ethiopia shd. be repd. C.E. 
No ques. about Ethiopia = they are Allies for this purpose. 
 
But go outside Athens & you may get claim from Franco. 
 
 
We will consider that - pity they didn't raise it earlier. P.M. 
Detachments of foreigners w'in B. Forces. 
 
 
Will Service Dpts. consider.  Especially R.A.F. S. 
Integration argument. P.M. 
That goes against separate detachment. P.L. 
Nos. fr. India.   
 
P.M. 
Adjust with Cttee.  500-1000. C.E. 
Proposing somethg. other than traditional W. End route.  Armour is going to 
S.W. suburbs. K. 
Include G.P.O. in civil section.  At least as good a claim as always. 
General support.  C.E. will consider. 
H.D. 
Consider inclusion of C. Service. E.W. 
Children.  In E. End parks as will as R. Parks. C.E. 
We have no powers there.  Assume l. authies will do the like in their parks.  
Am sending circular to them H.M. 
How select the children for the circus?  Prefce for those of ex-Servicemen. 

|      | May be wiser not to try.           |
|------|------------------------------------|
|      |                                    |
| E.W. | 60.000 daily.  Schools cd. select. |
|                                               | Basic free ration for kids?  No!    |
|-----------------------------------------------|-------------------------------------|
|                                               |                                     |
| C.E.                                          | Welcome sugg                        |
| n                                             |                                     |
| fr. dpts. re further groups to be recognised. |                                     |
|                                               |                                     |
|                                               |                                     |
|                                               |                                     |

## 9.   Commemoration Postage Stamps.

 L. 
4 months to prepare & issue. 
 
Special issues already bn (issued) announced by Foreign Govts. 
 
Para 2 (a)  Many new issues eg. in Australia are on peace & reconstn ques. 
 
           (b) No precedent at all in U.K.  Suggest we do this for one not both.     
P.M. 
F.O. want U.N.O. stamp. 
 
Para. 2(b) - general feeling v. omission of K.'s Head.  Use big double 
size instead. J.W. 
Include (para 2) Scott Fine Arts Commn. E.W. 
And Arts Council.  No! 


[Exit Listowel. 
 

## 10.   Clothing Rationing.

 R.S.C. 
These estimates are a bit risky because influenza & coal shortage in Lancs.  
But must take a risk on it. 
 
Service have concession.  10-15m. coupons all told. 
 
Industrial 10 will be issued in Nov. vice Jan. P.M. 
a) Care over Serv. concession - last para. of brief. R.S.C. 
Will p'pone until Sept. because much demobn over by then. J.J.L. 
Suggest consultn. P.M. 
b) Specl. ration for household linen eg. towels. R.S.C. 
Considering that now. E.W. 
Wd. do more than anything to damp down housewives agitation. H.M. 
Postpone announcement. until we are over food. R.S.C. 
Must announce the 14:  add the rest to make it more cheerful. P.M. 
Careful Press preptn.  Consult Fr. W.V.S (!) H.M. 
Feeling about large nos. of coupons to Services on demobn. 
 
Leave concession ought to be offset. v. demobn grants of coupons. 
 

A.V.A. 
Never thought there was a case for Service concession. E.Sh. 
Protested against it. 
 
R.S.C. 
Agitation in H/C.  The 10-15m. coupons we wd. use wdn't permit 1 coupon 
increase to genl. consumer. H.M. 
How many soldiers need it? P.M. 
Wd. rather give 1 more coupon to woman. 
 
S. 
We shd. value this concession in R.A.F. 
 
J.J.L. 
I was surprised tht. the concession was offered.  Troops have had a v. good 
deal, it's the civilians turn. 
 
 
Agreed:  no leave concession. 

## 11.   Eire And U.N.O.

 a. 
As in memo. C.E. 
Must first consult N. Ireland.  Fear Eire, as member, might claim whole of 
Ireland. E.Sh. 
Take care.  Is there a strong demand? P.M. 
Surely it can be delayed. 


No decision:  opportunity for H.O. to consider. 

## 1. Free Rice From Siam

 E.B. 
Appeals to U.S. etc.  Dipl. diffy. if can be said we are holdg. up on free rice.  
We shd. yield our claim - on basis supplies to India will be paid for & 
not v. our sterl. balance posn. H.D. 
Agree on condn tht. we don't pay Fr. Exchequer. G.H. 
But Ceylon & Malaya need it - & can't pay. 
 
E.B. 
This must be handled in usual way. P.M. 
Point doesn't arise in Colonies. H.D. 
Let me discuss this with C.O.  No notice of this. P.M. 
Discussed often - plenty of notice. R.S.C. 
Ceylon has sterling balances. P.M. 
When they can pay they must - Fr. sterling balances or other sources.  i.e. 
wherever there is sterling balance the cost comes out of that. 


Agreed. 
 
2.  
Special Commissioner for S.E. Asia:  Staff. 
 
E.B. 
Want to know to-day whr Sanderson can go from M/F - also transport            
expert.  Want R.S.C. to agree to release Empson. 
 
Must get a good staff -  essential to pull this together in S.E.A.  Food 
problem first:  then political basis. R.S.C. 
Empson - commercial treaty negotns. E.B. 
Will you discuss with Killearn? R.S.C. 
Yes. P.M. 
Come to me if any diffy. over staff. 
 
 
3.  Poland:  Polish Troops E.B. 
V's. lr. (fr. Yugoslavia) was put in w'out consultn with Poles. 
 
Am asking Tito why he didn't take it up with us thro' dept. channels. 
Rubbing it in. 

 

P.M. 
When is Anders coming?   

 E.B. 
Not until U.N.O. over.  Wd. like him to come on Friday - to discuss on 
original basis  i.e. ignore Polish. Note for this purpose. 

 

## 4. Levant Status.

 E.B. 
Diffy. was with de G.  When he went, I suggd transferring discns to Ldn. or 
Paris.  Nearly settled it at F.O. but Syrians ran out. 
 
In S. Council discns much use of  "exclusively" - to restrict negotns to 
w'drawal of troops.  Trade, schools, food etc., have also to be discussed & I had to dissent. 
 
Thought V. wd. veto if defeated.  There were 7 in favour & he had to veto. 
Had asked Bidault to be generous.  Thgt. it a good precedent to get countries to act in spite of veto.  Got it that way.  Had effect of isolatg. Russians. 
 
This, however, emerges. 
a) Greece:  R. was accuser & cd. nevertheless use his veto to frustrate 
views of majority. This is a nonsense. 
b) Gathered here (Cab.) after S. Fran. tht. veto wd. be used only at 
extreme point.  eg. on sanctions.  Now seems it can be used all the time. 
c) State can put on Agenda ques. not affectg. it, tho' State concerned 
does not bring it fwd.  Then veto decision on it! 

 
Procdgs. at this Session shd. be reviewed - to see where we stand on this. 
 
Surplus troops will be comg. out of Levant at once? C.I.G.S. 
Yes E.B. 
Can reduce cost there at once.  Fr. want transport to help them to move out. 


[Enter Wilmot 
 

## 5. Defence Policy In 1946

 P.M. 
Have examd estimates.  Imposed heavy cuts.  This is far as we can reduce 
this year.  Debate on Def. generally:  then Votes on A/C of Sev. Dpts.: detailed Est. after Easter. 
 
Mtg. of Dom. P.M.'s.  Altern of text requd because date not fixed. 
 
Can't stand this mil. expn for long. R.S.C. 
How does this figure relate to that anticipated for Loan discns. H.D. 
Higher. 
 
Much concerned qua Budget burdens.  Prosp. deficit next year. 
 
But ever more concerned qua drain on f. exchange. 
 
Net payout £1.091.M.  Total £1.667M.  But £576M = terminal. 

 
Grateful for redn: but still heavy.  If things go wrong, may have to face 
Supplies.  This is over double the £500M of Coaln Govt. estimates for p. 
war.   
 
E.B. 
After 3 years. H.D. 
Yes: but tht. - target to wh. we are workg. P.M. 
We've made big assumptns viz. out of Greece, Italy & Indonesia.  All pretty 
optimistic.  Unlikely we'll do the work. A.B. 
Any comparison with U.S., Russia & Fr. - on basis of popn figures. viz. 
what wd. their expendre be if they had Forces on same scale as ours in 
reltn to popn. A.V.A. 
2.6 in R. forces in Foreign countries - on basis of repts. on their Elections. 
Don't know much re rest of Forces. 
 
 
Nervous of para. 4(a)(iii) - Fr. my informn. E.Sh. 
R. occupn troops can live on the country. 
 
Can we say how far our troops live on sterling rather than dollar sources? H.D. 
Not v. easily. E.Sh. 
Wd. help to give the picture.  Need = reduce the dollar expre of Forces. H.D. 
Our mil. expre  in G. is partly to fund Germans. E.Sh. 
Believe we're spendg. too much on that.  And on people who are going to 
bite us. P.M. 
If A.B. means we are doing more than our share, its true.  Can. doing no 
more.  Aust., & N.Z. doing v. little. E.Sh. 
What is it costg. us to maintain order in G?  Shd. we not getting somethg. 
out of it? P.M. 
Must discuss this separately and later.  We have accepted oblign of 
occupying Germany. P.L. 
I agreed on understandg. tht. if need arises troops will be available in India. 
 
 
Understand some reserves will be available shortly. 

 E.W. 
Is B.A.O.R. paying sufft. attn to U.K. needs - caring too much for Germans. J.J.L. 
B.A.O.R. is running down v. quickly because no. of veterans in it.  The 
Nazis are m'while pulling themselves together. E.W. 
Reduce mil. strengths & build up Soc. Dem. Forces. 
 

P.M. 
They were crushed - & can't be revived as soon as that. A.B. 
Danger of re-action in U.K.   
 
E.B. 
Much more if you allowed Nazidom to revive. H.M. 
Worried over time factor.  How long?  No indication of any move twds. a 
solution. E.B. 
Earlier assumptn 10 yrs. occupn. Think that too long.  But experce after last 
war shows risk of makg. it too short. 
 
Must look at this seriously - not a side issue. 
 
A.B. 
Must review.  R. forced us into imposs. policy of Govt. thro' Zones. 
 
 
Now Comm. are workg. to show ridiculous results of that policy. P.M. 
Still under Armistice condns.  Can't pull out this year.  Haven't yet settled 
any Treaty, still less German Treaty. J. 
Must do this - but can't go on for long.  £500M shd. be maximum. E.B. 
Remember £500M was then prices.   Then figures before you are much 
lower than anyone thgt they'd be in pv  year.  Assumed it wd. be 3yrs. 
before we got down to £500M. P.L. 
Remember it comes down throught. year. - and at end/46 the expendre will 
be running at a much lower rate.  That wd. make it look better. H.D. 
True: but we can't show it yet because don't know when or if Indian 
troubles will arise. E.B. 
For policy reasons don't want to show the run down.  Wd. wreck our dipl. 
influence.  Peace Confce in May: Indonesia: Greece: Famine. U.S. now 
alarmed at rate of their demobiln. P.M. 
Draft W.P. sets our posn on V.E. Day, & follows it down.  Then first 
sentence in para. 8.  Argument throughout, stresses continuous redn. H.M. 
Are our Commis. in field aware of our problems - re balance/payments. Cd. 
they be discreetly told - to discourage extravagance. 

 A.V.A. 
Brght. this to notice of Naval Staffs.  That's why I've had their co-opn in 
gettg. down to figures wh. prev. were thght. impossible. C.I.G.S. 
Confce early March with Commis.  That is one of items. P.M. 
I will send an informal message to Commis. in all Services. 
E.W. 
Mil. Service.  When shall we discuss? P.M. 
We will, sometime.  What is wrong with this interim statement. 

 E.W. 
Educn  authies don't know how to plan. P.M. 
Two alternatives in para. 13.  Can't get long. term decisions yet. E.B. 
M.P. Cttee will submit a plan.  Can't do it now. 
 
Recommend alternative wording in []. P.L. 
Para. 9 (d) - don't last words go rather far.  Cd. used v. us if instability 
recurred at any future time. R.S.C. 
"Until condns become more settled." 
 
P.M. 
Until condns there allow of their w'drawal.:   


Agreed. S. 
Small amendmt to show air trooping ceases 1/4 . Will inform Cab. Off. A. 
Para. 7 as in my copy. P.M. 
Add note: remember changes in value of money & ratio of pay in makg. pre. 
war comparisons. 
 
Para. 12. 
 
Para. 13 } as in my copy 
 
Para. 14 } G.A.I. 
Figures. E.B. 
We have these. P.M. 
First sentence.  Why commit ourselves? 
 
 
Agreed:  Omit.  Say something else instead. P.M. 
Say instead - "From time to time" vice "annually". H.M. 
Para. 17.  V. definite.  "Would" vice "will" ? 

  
[Exit C.O.S. & Wilmot A.B. 
Will you tell H/C you intend investigate organsn of Forces? P.M. 
Will flow fr. P.W.D. Cttee, wh. is mentioned & I will refer to it. 

## 6. India: Constitutional Problem

 P.M. 
Handed in draft. 
 
Will add - durg. absence   {Admy.  P.M. 

        of Ministers     { B/T.  H.M. 

        charge of Dpts { India & Burma.  Parly. Secy. with ref. to me 

                        { as necessary.  

                              Appd: announce in these terms Tuesday. 
 

## 7.  Peace Celebrations:  Leakage & Announcement

 P.M. 
Take care of leakages.  Trouble over Peace Celebrations.  Rpt. - all details 
out. Don't let's have similar trouble over Defence: on India. 
 
Peace Celebrations.  P.M. announce date:  promise to circulate detail.  

If H/C presses for detail, Home Secy. can read it out. 

 

## 8.    Government Information Services.

 H.M. 
Title - prefer Central Office or Information - COY for short. 
 
Outlined recommns in memo. 
 
Two Ministerial Cttees:  same Chairman for both. 
 
They needn't meet more than monthly. Below them 2 offl. Cttees.  Pro-term 
overseas Cttee under Chairmanship of Hector McNeil. 
 
Need for P.R.O.'s to attend & express views at Dpl. conferences. 
 
Ques. at issue still. 
a) Ministerial responsibility.  Believe H/C. will worry out who is Chairman of 
Cttee.   Better therefore to announce it at outset. 
 
 
Agreed. R.S.C. 
Cd. the Ministerial Cttees be at Parly. Secy. level?  I cdn't come. H.D. 
Supported.                     Agreed:  normally delegate this to Parly. Secretaries. A.B. 
Want to be one. A.V.A. 
One Service Dpt. E.W. 
I want my Parly. Secy. P.M. 
Nucleus + those running publicity at the time.  Composn can be settled by 
P.M. in consultn with Chairman. A. 
a) P.R.O.'s  How are they to be recruited?  Shdn't be fr. Dpt. staffs. H.M. 
Agree:  then shd. be an interchange also with C.O.I. 

 A. 
            b) Chairmanship of (overseas) Offl. Cttee shdn't be made public.  Doms.   

|                                           | wdn't like nom                          |
|-------------------------------------------|-----------------------------------------|
| n                                         |                                         |
| of McNeil - tho' I think he is excellent. |                                         |
|                                           |                                         |
| T.W.                                      | Can we see all the pp.                  |
|                                           |                                         |
| G.A.I.                                    | Wd. like to be on Offl. overseas Cttee. |

 E.B.                 I.L.O. etc., is in favour. E.Sh. 
We do some advertising but get no priority because don't do enough 
business.  Thro' M.O.L. we are in hands of experts. P.M. 
Take it up thro' the Cttees. A.V.A. 
Will write to P.M. re contracting out. 
 
 
Agreed: so far i.e. title and total resume on Thursday. E.B. 
I promised consultn with B. Council. 
 
H.M. 
Talk btwn decision (Thursd) & publn.  Not before. 

## 1.   Parliament

 H.M. 
Explained proposals. P.M. 
Serious telegram from High Comm. Pal. - 19/2. 

 G.H. 
Disc. priv. in D. Cttee.  Then agreed no action v. J. Agency or Hagana.  
Clear now the pos n  deterg rapidly.  Shertok:  speech this week wh. is 
seditious :  but as A.A. commn due in Pal. five days H.C. decided 
unwise to take action v. him. 
 
Indicn tht. much prepn made by Hagana for action.  H.C. believes no action 
will be taken until AA. Commn leaves.  But clear that 3 mil. organns are 
coming together for active intervention. 

 
Telegram read. P.M. 
In speech to-day G.H. shd. give warng. tht. we can't yield to terrorism. G.H. 
Ol. Stanley tells me this a.m. they will raise genl. issues re Commn on its 
work. E.B. 
Told me he wdn't.  I was v. this debate.  Will cause debate in Congress. H.M. 
House was promised Debate, when E.B. made original statement. 

 E.B. 
I will speak to A.E. & Stanley - pressing them not to discuss work of 
Commn. 
 
 
Remember this is Anglo. U.S. Commn. 
 
A.B. 
On telegram:  shdn't H. Comms. be warned not to pay too much attentn to 
words of demagogues.  (E.B. Shertok is not demagogue) P.M. 
This is not merely hot air:  terrorist action is procedg.  m'while - and these 
words stir them up. 

 

## 2.   Jamaica.  Industrial Situation.

 
Service indust. trouble Jamaica.  Walk-out fr. m. hospital.  Fire brigade on 
strike.  20 lives lost.  But post is now in hand. 
 
Fight betwn.  Bustamente's Union & T.U.C. 

 

1.    
Parliament 

 
Next wk. motion on Pensions - wide support fr. Govt. supporters. 
 
Cab. decided we were to refuse Sel. Cttee. 
 
Will be diff. - if carried to Divn. we shall be defeated. 


[Exit W.W. 


[Enter  P.M.G. & G.I. Hall 

## 3.   Government Information Services

 
P.M. 
(a) Ministerial Responsibility for B.B.C. 
Choices: a) non-Departmental   b) P.M.G.  c) Ty. 
 
Arguments as in Rpt.  Objns to a) no staff. 
 
Suggest: G.P.O. to take Vote & handle day-to-day ques.: x non. Dpl. 
Minister in background to handle major policy.  xChairman of 
Ministerial Cttees. P.M. 
Ullswater Cttee thght. P.M.G. must remain respons. for techn. ques. & 
accountg. but a non. Dpl. Minister shd. handle major policy. R.S.C. 
Constitutionally P.M. wd. be responsible & wd. devolve this on the non. 
Dep. Minister. A.B. 
Let this be known & you will have a spate of Ques. at once. 
 
You also imply tht. B.B.C. is under Govt. control. R.S.C. 
Broad ques. cd. be addressed to P.M. - constitutionally proper. E.Sh. 
Once Chairman is known, you'll be asked what his functions are & Ques 
will then be addressed to him. R.S.C. 
Needn't say functions include B.B.C. H.M. 
The Chairman wd. come in only in Debate not Ques. E.B. 
Prefer to have it with P.M.G.  I want to see a Press Service inwards 
developed - Reuters ineffective.  If B.B.C. linked too closely with Govt. this cd. not be done by B.B.C.  Wd. prefer therefore tht. B.B.C. shd. remain under purely technical Dpt. like G.P.O. H.M. 
A.E. priv. wanted it publicly announced tht. B.B.C. was working under F.O. 
dirn qua overseas work.  That, in my view wd. be dangerous - glad 
E.B. thinks so. 
 
Must be some relation between B.B.C. and our Cttees & their Chairman & 
C.O.I.  
 
G.P.O. can't do that.  Cd. Be arranged. L. 
One additional point.  If G.P.O. had to defend B.B.C. accounts, it wd.        
involve addl. work & staff for G.P.O.  Cd. be met by transfer of personnel from M. of  I. Believe respons. cd. be shared btwn. P.M.G. & Chairman.  Dangers - 
mustn't confuse Parlt. & public as to who is responsible and for what.  If that 
is made clear & there is real workg. partnership btwn. Ministers it wd. work. 
 
Agreed: P.M.G. to take the Vote: genl. policy ques. to be answered 


    by P.M. or Minister deputed to act for him. 

 
(b) Future of British Council 

 
H.M. 
Either abolish it or confine it to cultural matters.  At present there is 
indefensible overlapping.  Must order material thro' C.O.I. 
 
Responsibility - Ministerial - also for considn. E.B. 
My first re-action: shd. be under inter-Dep. Cttee:  F.O. control - C. Service 
apptmts. 
 
Trouble: built up under incompetence of Malcolm Robertson, after Lloyd 
left. 
 
Was Opposed to F. Stewart's recommn in favour of continuance. 
 
But H.M. has bn. into it & proposes to compromise. 
 
Agree you can't abolish this. 
 
A lot of this work shd. be done by Consular Service when I've built it up. 
 
Work towards abolition:  but accept Plan A for the moment.  But the 
Chairman of B. Council shd. be directed to report regularly to me - as if sub. Dpt. A.V.A. 
Agree with E.B.'s remarks.  But wd. be a pity if nothg. was maintd to keep 
cultural & educational activities going - at a time when we need to present B. views to the world. J.J.L. 
In agreement.  Too many frills - but good work. G.H. 
x/Separate expenditure in Colonies. /x Recently was excessive. grant-in-aid.  
But actually wasn't reached. Look estimatg.  Insufft. F.O. supervision. 
 
Evce of their work abroad, at first-hand.  Usually in co-opn with Embassies 
etc.  Want x/ continued. 
 
A.B. 
Opposed to this.  Temporary arrangement.  You won't get 1st class man for 
that. 
 
 
Either have it, with a good man: or abolish it. 
 
If under F.O. no good man will take it on. 
 
Grant-aided organn well manned to put B. case across - can be useful.  
Normal method shd. be interchange of professional etc. men: where this isn't possible B. Council can help. P.M. 
That is really what is suggd- under Plan A.  Will be contd for 5 yrs or so even 
tho' we don't rule out eventual abolition. H.M. 
Agree considerable flexibility & independence.  But some control must be 
exercised by C.O.I. or F.O. J. 
F.O. control tho' not creature of F.O. A. 
We favour Plan A.  Functions must be limited & defined.  Control of a/c: & 
adminn:  but independence in their work. 
 
| A.B.       | Wd. rather have control by P.M. than by F.O.                            |
|------------|-------------------------------------------------------------------------|
|            |                                                                         |
| E.B.       | Am reforming F.O.  Can't have competitors outside my control because of |
| past reput |                                                                         |
| n          |                                                                         |
| of F.O.    |                                                                         |

 R.S.C. 
Agree to Plan A.  But shd. be definite term - to enable recruitment. 

 P.M. 
Yes: 5 years. G. H. 
Do you approve last para. of Plan A?   

 P.M. 
Yes:  so long as you don't go into great detail. 
 
H.M. 
These conclns must be subject to review. 
(c) Admiralty Points P.M. 
As in brief.  Which horse will you ride? 

 H.M. 
We agreed on Monday - shd. be contractg. out - on merits after considn by 
Cttee.  It is for Service Dpts. to make their case - not ask for snap decisions. S. 
I thought I was covered by para. 6. 

 
 
Leave it at para. 6. 
 

A.V.A. 
What about para. 2! 

 P.M. 
This is a matter for me. 
 
 
(d) Publicity for B. Commonwealth. 

 E.B. 
Russians & others steeped in 19th Cent. literature - but know nothg. of 
modern facts of B. Empire. 
 
Cd. this new organisn be getting busy & get best men to work on new books 
on B. Commonwealth.  Analogue to Trevelyan Social History. R.S.C. 
Chatham House initiative? H.M. 
Take it up early on Overseas Services Cttee. 

 R.S.C. 
Development contract - grant to University. 
 
4.   Political Broadcasting. 



Agreed. 


[Exit P.M.G. 


[Enter Shawcross 


[Tomlinson 

 

## 5.   Service Divorce Cases

 
J. 
Congestion.  P.Q.'s in H/C.  At present rate will take 5/7 years to finish 
arrears.  Intolerable. 
 
Not lack of Judges: it's delay in preparg. cases for trial. 
 
Target: we shd. try to clear off arrears in 2 years. 
 
Recommns Para. 3(1)(a).  This anticipates Rushcliffe recommns & is in line 
with them. 
 
Para. 3(1) (b) - (d) - want Cab. support for necessary priorities etc. E.Sh. 
Endorsed. 
 
J.J.L. 
Welcomed report. G.A.I. 
V. diff.  4 wks. recently only 23 shorthand writers found for Govt. Dpts.   
Similar figures for typists. 
 
Training schemes (M/L) are available - 6 months.  But real trouble is 
salaries.  They can get £6 a week outside. G.H. 
Ty. are considering.  But Law Socy. can't get them even at £5 a wk. E.E.B. 
Proposal for v. large increase.  Banks & big business say. however, we shd. 
be puttg. market up.  It is small firms wh. are paying too much.  You must increase supply as well. G.A.I. 
Agree we must look ahead.  Some increase in pay + attractns of C. Service. H.M. 
Shortage is not permanent surely. 
 
How many are in Services. 
 
Ty. can't compete with v. high rates. E.B. 
Have the hours bn. reduced? Gl. H. 
Yes:  431/2 or 44. G.T. 
Accommodation.  Diff. in larger prov. towns.  May have to requisition for 
this. I will report, if so. 
 
In Ldn. competn is with F.O., M/C. Av., M/L. & another!  Shall it rank in 
same level? 


[Exit. E.Sh. & Toml 


[Enter Barnes 
6.   Future Use of "Queen Elizabeth". Barnes. 
Rptd because of publicity attracted by Queens.  Concln as in memo. 
 
Alternative uses - wd. be uneconomic.  And re conversion of 2 Queens wd. 
be overlapping.  And we shd. lose traffic. 
 
| P.M.                                                                             | a. Won't you be criticised now.  She cd. go round the Cape.                     |
|----------------------------------------------------------------------------------|---------------------------------------------------------------------------------|
|                                                                                  | b. "Economic" - is a luxury liner worth having?                                 |
|                                                                                  |                                                                                 |
| B.                                                                               | India via Cape - she cd. use only Trincomalee. That isn't embark                |
| n                                                                                |                                                                                 |
| port.                                                                            |                                                                                 |
| Feeder shipping wd. have to be used.                                             |                                                                                 |
|                                                                                  |                                                                                 |
| P.M.                                                                             | Singapore?  B. Feeder ships wd. be needed there too.                            |
|                                                                                  |                                                                                 |
| B.                                                                               | Speed reduced - bunkering problems - carrying capacity 50% of what it is        |
| on Atlantic.  We shd. be makg. a gesture, that is all.                           |                                                                                 |
| Diffr. matter if rpat                                                            |                                                                                 |
| n                                                                                |                                                                                 |
| problem cdn't be handled by shipping we have.                                    |                                                                                 |
| In reply to b. there's no doubt they will earn dollars.  It won't all go by air. |                                                                                 |
|                                                                                  |                                                                                 |
| R.S.C.                                                                           | And it isn't all luxury suites.                                                 |
|                                                                                  |                                                                                 |
| E.B.                                                                             | When we re-convert, we shd. see that more room is allocated to people of        |
| lower incomes.  That wd. influence my mind.                                      |                                                                                 |
|                                                                                  |                                                                                 |
| E.Sh.                                                                            | Not merely luxury liners.  But that is their main source of income.             |
|                                                                                  |                                                                                 |
|                                                                                  | Did they pay pre-war?  Thght Cos. regarded them as white elephants.             |
|                                                                                  | V. large commitmt. in ship. bldg. labour.                                       |
|                                                                                  | If choice betwn. re-convertg them & bldg. cargo liners might have to decide     |
| in favour of second.                                                             |                                                                                 |
|                                                                                  |                                                                                 |
| G.A.I.                                                                           | Wd. be diffy. with industry if we had to divert labour to this fr. construction |
| & repair.                                                                        |                                                                                 |
|                                                                                  |                                                                                 |
| R.S.C.                                                                           | Sufferg. fr. shortage of passenger space.  Hitting exports already.  Can't get  |
| our rep                                                                          |                                                                                 |
| ves                                                                              |                                                                                 |
| away.  We want more smaller ships running to other parts of                      |                                                                                 |
| the world - Queen on N. Atlantic wd. indirectly relieve pos                      |                                                                                 |
| n                                                                                |                                                                                 |
| .                                                                                |                                                                                 |
|                                                                                  |                                                                                 |
| P.L.                                                                             | Agreed:  Lack of passages to India.                                             |
|                                                                                  |                                                                                 |
| A.                                                                               | a. Don't fall down on "brides" p'mme.                                           |
|                                                                                  | b. Drowned with appl                                                            |
| ns                                                                               |                                                                                 |
| for passages.  Masses of people want to travel by                                |                                                                                 |
| sea.  Enormous demand from Canada.                                               |                                                                                 |
|                                                                                  |                                                                                 |
| Barnes.                                                                          | a. Oct/Nov 1374 Civil Fr. India.  396 were below cat. 6 in G/India priorities.  |
|                                                                                  | G/India shd. clear top categories first.                                        |
|                                                                                  | b. Brides.  Queen Mary can help in May.  P'mme agreed with Canada.              |
|                                                                                  |                                                                                 |
| H.M.                                                                             | Can in present                                                                  |
| n                                                                                |                                                                                 |
| of this case.                                                                    |                                                                                 |
|                                                                                  | On merits - think B. is right provided trooping p'mme not interfered with.      |
| Then ques. of future of our M. marine.  By '47 big sea traffic in N. Atlantic    |                                                                                 |
| 7 we must be ready for it.                                                       |                                                                                 |
|                                                                                  |                                                                                 |
| E.Sh.                                                                            | Compet                                                                          |
| n                                                                                |                                                                                 |
| with new const                                                                   |                                                                                 |
| n                                                                                |                                                                                 |
| v. serious.  May be longer than 6 months.                                        |                                                                                 |
|                                                                                  |                                                                                 |
| Barnes                                                                | If we don't get on with re-conversion now, we'll get a jam in autumn.  What    |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------|
| point in laying by these v. expensive vessels.                        |                                                                                |
|                                                                       |                                                                                |
| P.M.                                                                  | Is this economical use of ship. bldg. labour?                                  |
|                                                                       |                                                                                |
| G.A. I.                                                               | Wd. like to know what men they wd. need.                                       |
|                                                                       |                                                                                |
| Barnes.                                                               | Not askg. at present for addl. labour.                                         |
|                                                                       |                                                                                |
| G.A.I.                                                                | But I'm w'drawg. labour fr. the yards.                                         |
|                                                                       |                                                                                |
| A.V.A.                                                                | Not yet discussed with M/W.T.  Anxious re materials as well as labour.         |
| Cuts made in dockyard man power - inclined to risk row of doing civil |                                                                                |
| work in dockyards.                                                    |                                                                                |
|                                                                       |                                                                                |
| A.B.                                                                  | C/Eng. labour is rising v. steeply.                                            |
|                                                                       | Want more inform                                                               |
| n                                                                     |                                                                                |
| about facts.                                                          |                                                                                |
|                                                                       |                                                                                |
| E.B.                                                                  | Why no inter. Dpl. talk beforehand?                                            |
|                                                                       | But my bias in favour of using these ships - if she's re-converted right for   |
| lower income groups.                                                  |                                                                                |
|                                                                       |                                                                                |
| P.M.                                                                  | Put back for more inform                                                       |
| n                                                                     |                                                                                |
| re {labour involved.                                                  |                                                                                |


                                     {cos. intentn re future use. 

 J.J.L. 
Troops will assume tht. if she's taken off trooping will be delayed. 
 
Future redn of Python. 


Referred to L.P. Cttee. 
[Exit Barnes. 

 
7.   Scheme for Bringing Children to U.K. from Germany 
 
 
Memo approved. 
8.    I.L.O. Constitution. 

 G.A.I. 
Nec. to enable I.L.O. to fit in to U.N.O. 
 
 
Memo approved. 

 
9.    R. Indian Navy:  Disorders in Bombay 

 A.V.A. 
Signal.  Pl. send assistce to Bombay.  Vessels of R.I. Fleet menacing shore 

 
Add? also to Comms. E. Ind. Fleet.  He will act. 

|                            | Glasgow was expected 23/2.  also 2 other smaller vessels.                       |
|----------------------------|---------------------------------------------------------------------------------|
|                            | Hitherto v. fine force.  But after R.A.F. troubles in India, it spread first to |
| Indian A.F. then to R.I.N. |                                                                                 |

 
P.L. 
No informn yet fr. Viceroy - tho' I asked for it night before last. P.M. 
Can't understand that.  Remind him - at once. 
 
H.M. 
Trials shd. have bn. outside India. A.V.A. 
But this is just what was foreshadowed by Viceroy in January. E.B. 
Pay?  Took me 12 mos. to get G/India to accept rise wh. M/W.T. was 
anxious to give - because repercussions on R.I. Navy.  They were £19 a month below Chinese! E.Sh. 
 Is this politics - or claim for more pay or food?   
 
A.V.A. 
Political apparently. R.S.C. 
 Everything in India must be political now. A.V.A. 
P.M. to see C.N.S. before H/C. to-day in case this shd. be raised. 
C.M. 18(46)  
 
 
25th February, 1946. 

 
1. 
Egypt. 

 N.B. 
Note of protest put in v. action of students.  King said - too strong. 

 
We declined to w'draw. 
2. 
Spain. P.M. 
Shooting of Garcia etc. 

 E.W. 
V. good man - deliberate affront to Engl. and French. 
 
E.Sh. 
Possibility of collusion betwn. Franco & Salazar.  Tho' we are on 
 
 
good terms with latter. O.S. 
No evidence of it. N.B. 
But I believe it. E.W. 
Cdn't we apply some sanctions v. Franco. P.M. 
Always told they were on point of throwing him out.  But I will  

 
 
consider with F.O. 

 A.B. 
Resurrection of R.C. influence - Pope. N.B. 
Sp. Republicans want no action wh. wd. precipitate civil war:  or econ. 

 
 
action wh. wd. hurt common people:  or early Left Govt. who  
 
 
wd. have to face serious food crisis before November.   
 
 
Gradualness. 

 E.W. 
That is appeasement. A.B. 
Accept N.B.'s statement:  but go on - great spiritual re-inforcemt. 

 
 
to Rep. forces in Spain if overt signs of U.K. sympathy.  We shd. 
 
consider (soon) what we can do to assume leadership of Socialist 
 
 
movements in Europe, esp. in Spain. 
3. 
India. 

 P.M. 
Statement H/C. Friday.  Things quieter.  P.L. has given me draft for 
 
 
statement to-day. H.M. 
Everyone knows things are better.  Doubt if you need, unless you  

 
 
get Ques. P.L. 
I shall be asked to make one on Tuesd. 
 

P.M. 
Leave it until then, anyhow.       Agreed. 

## 4. Aldershot.  Mutiny In Detention Barracks.

 
J.J.L. 
Seen A.G. this a.m.  Awaitg. fuller rept.  ½ doz. brght. down fr.  
 
 
Northallerton (trouth) 
 
 
Overpowered N.C.O. & warders & broke loose. 
 
 
Answerg. P. Notice Ques. today. 
 
Mil. or public enquiry - will decide on basis of full rept. P.M. 
Is this isolated or symptomatic of unrest at condns generally in 
 
 
detentn barracks. 
 
J.J.L. 
No. of old lags there.  Reduced some sentences on deserters.  Those 
 
 
sentenced for more serious crimes want the same. A.B. 
Suggd there are men here doing heavy terms for fraternisation. J.J.L. 
Not aware of that.  Must get full facts.  H/C. satisfied with review of 
 
 
sentences for desertion.  But disposed twds. publ. enquiry - to  
 
 
get across the facts on this. H.M. 
Doubtful.  W.O. might invite help of H.O. experts. P.M. 
Consult me & prs. Cabinet before you decide wtr. or not to have public 
 
enquiry. 


                                                    [Enter C.Jones & McNeil. 
5. 
Future of Trans. Jordan. 

 C.J. 
Discns with Emir will start to-morrow.  Treaty prepd after consultn with 
 
F.O., C.O.S., B/T. & Ty. 
 
Project approved in principle by U.N.O. 
 
Objns - some fr. Zionist organisations. 
 
Treaty of Alliance 25 yrs.  No time limit for mil. convention. 
 
Promise of U.K. mil. aid in return for compreh. mil. facilities. 
 
Commercial treaty to be discussed later on. 
 
Outstandg. claim by Saudi Arabia.  But area covered in mandate. 
 
 
Propose to leave that to transns betwn. T. Jordan & Ibn Saud. 
 
McN. 
Our points have bn. met. H.D. 
Total charges.  £2.200.000 = present cost.  of wh. £200.000 = 
 
 
balancg. their budget.  That will be no longer a charge on us. 
 
Favour this plan because it will reduce our commitments in future. 
 
C.O. will consult with Ty. to secure further economies. 
 
T. Jordan to be used as traing. grd. for B. troops.  May we assume 
 
 
corresp. economies in Egypt. J.J.L. 
Cl. 8 places addl. burden on B. Army unless we get relief in Egypt. H.M. 
We surrender a mandate - but we take on a good deal in the way of 
 
 
additional burdens. 
 
A.B. 
How does x/ in para. 3. agree with U.N.O. obligns? C.J. 
Art. 11. 
 
Articles 3 & 4 follow Iraq Treaty, on terminn of mandate. N.B. 
All these mil. arrangemts. in M/E. are re. insurance v. possible 
 
 
failure of U.N.O.  Similar arrangemts. with Iraq were useful 
 
 
in the war. 
 
E.Sh. 
Have we ever asked what is our interest in M/E. and what will it  
 
 
cost?  Why don't we look at it as a whole? 
 
Real ques:  do we really believe U.N.O. will produce protn for our 
 
 
special interest. R.S.C. 
Insert "and with the U.N.O." in Art. 3.? H.M. 
Then you will bring in the Sec. Council every time. N.B. 
You cdn't have mil. opns going on w'out intervention by U.N.O. E.Sh. 
Doesn't that ask Russia into M/East.  What do we want? H.M. 
Then why accept a unilateral burden under Art. 4.? S. 
a)  Have we the right to station troops in T.J. - under Arts. 1-2. C.J. 
C.O.S. points have bn. embodied in this draft. 
 
 
{  Re-consider Arts. 3. & 4. in light of discussion:  and bring 
 
 
{  up again on Thursday - m'while keeping Emir in play. 

                                          [Exit C.Jones.  D. Sargent. 

                                           Enter Barnes. 
6. 
Shipping.  United Maritime Board. B. 
Got 6 mos' extension of present arrangemts. - incldg. our 
 
 
3 m. tons on charter fr. U.S.A. 
 
Want authy., when publishg. our ratification, to do so v. background 
 
 
of our policy as presented by B. Delegn. P.M. 
Contns to UNRRA. B. 
There is escape clause.  But we want to do our best, qua prestige. P.M. 
Can't we get more U.S. tonnage on better terms? H.D. 
My advisers think M/W.T. have done pretty well.  Better to charter 
|                                      |                                                               | than buy & we have checked U.S. proposals for flag-discrim    |
|--------------------------------------|---------------------------------------------------------------|---------------------------------------------------------------|
| n                                    |                                                               |                                                               |
|                                      |                                                               | & subsidies.                                                  |
|                                      | Ask, however, for revised M/W.T. estimate on b/payments pos   |                                                               |
| n                                    |                                                               |                                                               |
| - to                                 |                                                               |                                                               |
|                                      |                                                               | go to workg. party.  i.e. revised in light of this agreement. |
|                                      |                                                               |                                                               |
| R.S.C.                               | Lim                                                           |                                                               |
| n                                    |                                                               |                                                               |
| of liner sailings.  Can't we expand? |                                                               |                                                               |
|                                      |                                                               |                                                               |
| B.                                   | No:  for 6 months.  But we cdn't anyway.  And review in June. |                                                               |
|                                      |                                                               |                                                               |
| H.M.                                 | Agree tht. thereafter we shd. resume freedom of action.       |                                                               |
|                                      |                                                               |                                                               |
| E.Sh.                                | Length of charter?                                            |                                                               |

 
B. 
Review in June 

 H.M. 
Will B. consult his colleagues v re-constitn of U.N.O. N.B. 
Para. 2(3).  Reln betwn. this and U.N.O. system. 


Agreed. 
[Exit N.B. 

 
7. 
Ship-building Industry. 

 A.V.A. 
As in memo. 
 
E.B. has told me he thinks seamen shd. be repd on Adv. Cttee.  To 
 
 
join in any discn there re accommn and also defence of m/ships 
 
 
in war. 
 
The owners feel strongly they shd. not be repd because not concerned. 
 
 
These matters shd. be handled thro' Ministers repres. P.M. 
a) 
Official vice unofficial Chairman?  Prs. fr. outside both Dpts.  


Suspicion. A.V.A. 
We want a man of prodn experience - not fr. shipbldg. industry.  And 
 
 
wd. consult P.M. B. 
Don't want Civil Servant. A.V.A. 
Have consulted R.S.C. - who suggd someone who had bn. tempy.  
 
 
Civil Servant in war. P.M. 
Indicated grudging agreement. P.M. 
b) 
T of  r. imply advice fr. industry to Govt.  Won't Govt. advise 


the industry? A.V.A. 
Will do so thro' Govt. repres. H.M. 
Omit refce to "H.M.G."   

 

|                                                               | R.S.C.                                                               | Must advise someone who will initiate action.  Wd. have thought it     |
|---------------------------------------------------------------|----------------------------------------------------------------------|------------------------------------------------------------------------|
|                                                               |                                                                      | was the 2 Ministers to act.                                            |
|                                                               |                                                                      |                                                                        |
| R.S.C.                                                        | c)                                                                   | Para. 4 of  t. of r.  "Industrial rel                                  |
| ns                                                            |                                                                      |                                                                        |
| "  -  fear it may cut across                                  |                                                                      |                                                                        |
|                                                               |                                                                      | wages disputes.                                                        |
|                                                               |                                                                      |                                                                        |
| G.A.I.                                                        | Have exam                                                            |                                                                        |
| d                                                             |                                                                      |                                                                        |
| this:  & satisfied as now drafted.  No implic                 |                                                                      |                                                                        |
| n                                                             |                                                                      |                                                                        |
| tht. they                                                     |                                                                      |                                                                        |
|                                                               |                                                                      | will settle.                                                           |
|                                                               |                                                                      |                                                                        |
| E.Sh.                                                         | d)                                                                   | Rep                                                                    |
| n                                                             |                                                                      |                                                                        |
| of sailors' & offrs. unions.  Feel v. strongly in favour.  No |                                                                      |                                                                        |
|                                                               |                                                                      | harm & some good.  A. & A.B. agreed.  Those who have to live           |
|                                                               |                                                                      | in the ships have an interest in design.                               |
|                                                               |                                                                      |                                                                        |
| B.                                                            | Familiar problem - keep Cttee on efficient basis.  Object of this =  |                                                                        |
|                                                               |                                                                      | develop efficiency of shipyards.  Seaman's pt/view can be              |
|                                                               |                                                                      | represented thro' Govt. rep                                            |
| res                                                           |                                                                      |                                                                        |
| .  Discussed fully with A.V.A. -                              |                                                                      |                                                                        |
|                                                               |                                                                      | I will appoint shipping rep                                            |
| res                                                           |                                                                      |                                                                        |
| .   I shan't appoint owners in                                |                                                                      |                                                                        |
|                                                               |                                                                      | narrow sense.  Will see that I include someone who can spk. for        |
|                                                               |                                                                      | the men.  Otherwise we shall get comm                                  |
| d                                                             |                                                                      |                                                                        |
| to rep                                                        |                                                                      |                                                                        |
| res                                                           |                                                                      |                                                                        |
| of organ                                                      |                                                                      |                                                                        |
| n                                                             |                                                                      |                                                                        |
| of                                                            |                                                                      |                                                                        |
|                                                               |                                                                      | users of ships.                                                        |
|                                                               |                                                                      |                                                                        |
| H.M.                                                          | L.P. Cttee - general view was that seamen shd. be represented.       |                                                                        |
|                                                               | I can see tht. B. wants to be general.  Say rep                      |                                                                        |
| res                                                           |                                                                      |                                                                        |
| of shipping, both                                             |                                                                      |                                                                        |
|                                                               |                                                                      | employers & employed.                                                  |
|                                                               |                                                                      |                                                                        |
| A.V.A.                                                        | Shipbldg. - both sides - wd. prefer not to have shipping in on Cttee |                                                                        |
|                                                               |                                                                      | concerned mainly with efficiency of the yards.                         |
|                                                               |                                                                      |                                                                        |
| E.Sh.                                                         | The users must surely be on.  You can select.  Then how can you      |                                                                        |
|                                                               |                                                                      | exclude someone who can speak for the men.  Don't mean you             |
|                                                               |                                                                      | must have rep                                                          |
| res                                                           |                                                                      |                                                                        |
| of organisations.                                             |                                                                      |                                                                        |
|                                                               |                                                                      |                                                                        |
| A.B.                                                          | Can't have owners w'out men.                                         |                                                                        |
|                                                               |                                                                      |                                                                        |
| B.                                                            | Wd. prefer to exclude ship-owners.  And build up separate            |                                                                        |
|                                                               |                                                                      | machinery for getting views of shipping (both sides).                  |
| P.M.                                                          | If you bring in owners you must bring in seamen.                     |                                                                        |
|                                                               |                                                                      | Consider now wtr. it is better to leave out all shipping.              |
|                                                               |                                                                      |                                                                        |
| B.                                                            | If you have this compos                                              |                                                                        |
| n                                                             |                                                                      |                                                                        |
| as in memo. I will nominate persons from                      |                                                                      |                                                                        |
|                                                               |                                                                      | Shipping who include someone who speaks for seamen.                    |
|                                                               |                                                                      |                                                                        |
| P.M.                                                          | Rep                                                                  |                                                                        |
| res                                                           |                                                                      |                                                                        |
| of Shipping includg. rep                                      |                                                                      |                                                                        |
| res                                                           |                                                                      |                                                                        |
| of the merchant service.   On p.5 of                          |                                                                      |                                                                        |
|                                                               |                                                                      | memo.                                                                  |
|                                                               |                                                                      |                                                                        |
| B.                                                            | That isn't far off what I intended.                                  |                                                                        |
|                                                               |                                                                      |                                                                        |
| A.V.A.                                                        | Must discuss again with shipbldg interests.                          |                                                                        |
|                                                               |                                                                      |                                                                        |
| E.Sh.                                                         | e)                                                                   | Labour force to drop to 90.000.  Bear in mind pos                      |
| n                                                             |                                                                      |                                                                        |
| of                                                            |                                                                      |                                                                        |

 
 
developmt. areas. 
 
 
Don't p'mme too much in e.g. So'ton where redundant 
 
 
labour cd. be absorbed elsewhere. 
 
A.V.A. 
Must consider dockyard towns also. P.M. 
Cttee to work out stabilisation policy - in place & time. H.M. 
Read L.P. records on this point.  Relation to emplt. policy. 
 
 
Repeat in Cab. records. 
 
 
Steering Cttee can guide this.          H.D.  Agreed. 

## 8. Future Use Of Queen Elizabeth.

 H.M. 
Reported discussions on L.P. Cttee. P.M. 
But already announced - e.g. in Sunday Times.  Prob. by owners. B. 
Will enquire into this. J.J.L. 
Unfortunate - reactions on Services.         S.  Agreed. P.M. 
How will she be re-converted - luxury etc.? H.D. 
Dollar-earning capacity.  The richer the Americans are who come here, 
 
 
the better. B. 
This is matter for co. who will run the ship. P.M. 
No:  we are concerned. A.B. 
Outrage r. feelings of S'ton, so short of houses. A.V.A. 
The real ques. is:  which class of passenger was most profitable, on 
 
 
basis of owners' past experience?  Are you going to use space for 
 
 
shops etc. A. 
More dollars from the multitude than the millionaires. A.B. 
If you interfere with design will you under-write it? 
 
If you allow owners to please themselves, there will be Parly. trouble. 

 H.M. 
It's a ques. which pays best.  We must be competitive in Atlantic. 

 
Can we settle every commercial ques. on basis of national scarcities. B. 
Must decide at once wtr. to take her off trooping. 
 

| A.V.A.                              | What class of passengers - can be handled later.    |
|-------------------------------------|-----------------------------------------------------|
|                                     |                                                     |
| H.D.                                | Decide to take her off and refit.                   |
|                                     | Let M/W.T. get the inform                           |
| n                                   |                                                     |
| about method & style of re-fitting. |                                                     |
|                                     | Announce quickly because of leak at week-end.       |
|                                     |                                                     |
| H.M.                                | The P.M.'s point only affects publicity.            |
|                                     |                                                     |
|                                     |                                                     |
|                                     |                                                     |

 
9. 
Select Committee on Elections. 

 
H.M. 
As in memo. 
 
General legn in this Parlt.  And say so. J. 
Ready for L.P. Cttee in 3 wks or so. 
10. Parliamentary Procedure.  Second report of Select Committee. H.M. 
P.Q.'s.  Para. 6 (c) approved. 
 
 
Writters  Para. 8. H.D. 
Most Dpts. are well w'in the new rule already. 


A.B. 
Remember tht. Regionalisation slows up colln of informn.  Quicker 
 
 
executive action outweighs speed of central reply. H.M. 
Corrce.  P.M. is considerg.  Think we shd. accept in principle 
 
P.M. lrs. went right up the hierarchy.  Cdn't they go direct from  
 
Principals. P.M. 
Read out letter - brief from E.E.B. 
 
Don't commit yourself to acceptance.  Particularly, Service Dpts. 
 
Tell M.P.'s tht. they will attract more work to themselves if they 
 
 
insist on high priority. A.G. 
650 lrs. to M/N.I. on his Bill in 3 wks.  90% of these cd. have bn.  
 
 
answered by the Member. 

## 1. Parliament.

 
Business for next week. 

## 2. Benefits In Kind For School-Children.

 E.W. 
Problem:  knew we shan't be able to provide meals 100% by time 
 
 
family allowances began to be payable.  Recognised that this wd. 
 
 
provoke demand for cash payments in lieu.  This wd. be fatal.  
 
 
Compromise therefore - continue payment by parents for meals 
 
 
until wider provns made. 
 
Snag:  l.a.'s have assumed 100% grant on this service from time fam. 
 
 
allces began.  They know we must pay 100% grant when the  
 
 
meals are free. 
 
 
Problem therefore is interim period. 
 
L.a.'s convinced tht. 100% grant ought to be paid & will be paid 
 
 
eventually. 
 
They are therefore hanging back with expansion until 100% grant is 
 
 
available. 
 
I have no power to compel them save for poor children's meals & 
 
 
meals for wh. parents pay. - i.e. gap is parents who can pay and  
 
 
don't. 
 
It is to Ty. advantage to get this provided quickly to avoid pressure for 
 
 
cash. 
 
I was asked to consider wht. we are doing to secure economy. 
 
 
a) 
Accommodn -  to plans appd by M/Food. 
 
 
b) 
Food - prices fixed:  quantities acc. to appd menus. 
 
 
c) 
Wages - acc. to scales appd in joint negotn.  Excess wd. be 

      disallowed by auditors. 
 
 
d) 
Fuel - consultn with M/F & P. 
 
Ty. referred us to A.R.P. catering.  Not, however, good analogy. 
 
Our Insprs. carefully check the accounts. J.W. 
Ditto. for Scotland.  Save tht. we were behind E & W. when Coaln
 
 
Govt. decision taken.  This was new service for most l.a.'s in  
 
 
Scotland & they grumble at not getting 100% grant. H.D. 
Just as eager to get this service going.  But uneasy at unwillingness 
 
 
of l.a.'s to go ahead w'out 100% grant.  They will go ca'canny 
 
 
on other things too & we can't carry all local Govt. on 100% 
 
 
basis & let them continue to masquerade as indep. elected  
 
 
authies. 
 
Whole of financial relns with l.a.'s will soon be reviewed - & I'm 
 
 
disposed to think Block Grant will have to be confined to 
 
 
poorer authies.  Don't m'while get too much 100%. 
 
I don't accept posn that we shall eventually have to pay 100%. 
|                                  |                                                                           | Can't decide ques. on basis tht. unless l.a.'s get 100% grant they won't    |
|----------------------------------|---------------------------------------------------------------------------|-----------------------------------------------------------------------------|
|                                  |                                                                           | do the job they were elected to do.                                         |
|                                  | It is admitted tht. advantage of this to poorer l.a.'s is v. small.  They |                                                                             |
|                                  |                                                                           | already get 95%.  The major part of this will go to richer auth             |
| ies                              |                                                                           |                                                                             |
| .                                |                                                                           |                                                                             |
|                                  |                                                                           | Remember they get 100% already on capital expend                            |
| re                               |                                                                           |                                                                             |
| .                                |                                                                           |                                                                             |
|                                  | Incompetence & inefficiency in staffing etc.  Had thought a more          |                                                                             |
|                                  |                                                                           | intensive & far-reachg. investig                                            |
| n                                |                                                                           |                                                                             |
| was to be undertaken.  That shd. |                                                                           |                                                                             |
|                                  |                                                                           | come first.                                                                 |
|                                  | M'while they shd. receive existg. grant.  And we shd. reserve future      |                                                                             |
|                                  |                                                                           | grant for later decision.                                                   |
|                                  |                                                                           |                                                                             |
| P.M.                             | Prev. argument in Cab. was 5/= or 8/=.  Our argument was - better in      |                                                                             |
|                                  |                                                                           | kind.  Didn't think we were intendg. to put any of it on l.a.'s.            |
|                                  |                                                                           | I wd. have assumed therefore whole cost was to be borne by                  |
|                                  |                                                                           | Exchequer.                                                                  |
|                                  |                                                                           |                                                                             |
| C.E.                             | I had a talk with you (as L.P.) when I was at B/E. because thought        |                                                                             |
|                                  |                                                                           | some people wanted to put cost of social insurance on rates.                |
|                                  |                                                                           | We at D/Ed. always thght. no part of this shd. go on rates.  If             |
|                                  |                                                                           | whole 8/= had bn. fixed no one wd. have sought to put any of                |
|                                  |                                                                           | rates.                                                                      |
|                                  | Found that because of overheads etc., this service wd. cost more than     |                                                                             |
|                                  |                                                                           | the 5/= cash.                                                               |
|                                  | L.a.'s will look at this as part of insurance system & as such to be      |                                                                             |
|                                  |                                                                           | paid by State.                                                              |
|                                  |                                                                           |                                                                             |
| J.                               | I also was in on this ques.  Argument was:  8/= wd. have bn. paid by      |                                                                             |
|                                  |                                                                           | State.  Then said:  some check on extravagant admin                         |
| n                                |                                                                           |                                                                             |
| by                               |                                                                           |                                                                             |
|                                  |                                                                           | l.a.'s. (J.A.)  Compromise:  100% on capital expend                         |
| re                               |                                                                           |                                                                             |
| :  current                       |                                                                           |                                                                             |
|                                  |                                                                           | expenditure no decision - and all were to avoid committing                  |
|                                  |                                                                           | themselves.                                                                 |
|                                  |                                                                           |                                                                             |
| H.D.                             | Quoted in support section 2 of App. A. of C.P.(46) 74.                    |                                                                             |
|                                  |                                                                           |                                                                             |
| P.M.                             | Agree W. Paper left it open.                                              |                                                                             |
|                                  |                                                                           |                                                                             |
| H.M.                             | Supported J.'s recollection.  Was handled in Parlt. in non-committal      |                                                                             |
|                                  |                                                                           | way.  B/Ed. were invited to find supportg. ev                               |
| ce                               |                                                                           |                                                                             |
| for their view -                 |                                                                           |                                                                             |
|                                  |                                                                           | & this App. is all they can find.  And statement by me on 18.2.43           |
|                                  |                                                                           | is conclusive:  for M/H. doesn't even claim 100% for maternity              |
|                                  |                                                                           | etc.                                                                        |
|                                  |                                                                           |                                                                             |
| A.B.                             | Bound to be drastic review of fin. rel                                    |                                                                             |
| ns                               |                                                                           |                                                                             |
| betwn. l.a.'s and Govt.          |                                                                           |                                                                             |
|                                  | But no doubt what public think about this.  Background:   Bev.            |                                                                             |
|                                  |                                                                           | recommended 8/=.  In first debate:  Govt. spokesmen said part               |
|                                  |                                                                           | of this (i.e. paymt. wh. wd. have bn. made by State) is better paid         |
|                                  |                                                                           | in kind.  L.a.'s have bn. silent therefore they assumed whole cost          |
|                                  |                                                                           | wd. be carried by Exchequer.                                                |
|                                  |                                                                           |                                                                             |
|                                  |                                                                           |                                                                             |

 
No doubt what the assumed understanding was. 
 
Not a ques. of what Govt. intended to convey:  it's a ques. what impn
 
was conveyed. 
 
P.M. 
Quotation from Butler suggests paymt. by State.  What did he mean  
 
 
by "we". H.M. 
His instructns were "the community." A.B. 
The concession wd. cost nothing.  If you make l.a.'s pay part, you will 
 
 
have to pay out of yr. rate equalisation grant.  For cost of new 
 
 
educational services is so heavy tht. it can't be met unless the  
 
 
Block Grant is used as rate equalisation grant. 
 
T.W. 
Seems to be common ground then wd. be 100% grant from 1948. H.D. 
No:  I say tht. it need not necessarily start at all. E.Sh. 
Ques. is then one of principle - shd. whole of this cost ever be borne 
 
 
by Exchequer.  Cdn't accept that.  At some time State must 
 
 
accept 100% responsibility.  
 
Defect in Ty. case.  At some stage he is going to re-adjust relns betwn. 
 
 
l.a.'s & Govt.  He can then recoup himself for any loss on this. 
 
If you don't pay 100% some l.a.'s will hold back - & you won't get  
 
 
scheme running by '48.  If therefore C/E. can recoup later, why 
 
 
not pay? A.G. 
Fam. allce scheme was envisaged as national.  Govt. rightly split it 
 
 
into cash and kind.  Reasonable assumptn that kind wd. be carried  
 
 
by State. 
 
H.M. 
Much experience of negotns with l.a.'s - on both sides. 
 
I have never claimed 100% for anything but Civil Defence.  That was  
 
 
our best case & we never got it.  I am opposed in principle to  
 
 
100% paymt. for l.a. services.  You can't hold the extravagance - 

|                                                      |                                                                         | it is diff. enough at 75%.                                     |
|------------------------------------------------------|-------------------------------------------------------------------------|----------------------------------------------------------------|
|                                                      | E.W. first argued at L.P. Cttee tht. we had promised 100% grants.       |                                                                |
|                                                      |                                                                         | Asked to produce ev                                            |
| ce                                                   |                                                                         |                                                                |
| :  and this is all she can find.  It is clear        |                                                                         |                                                                |
|                                                      |                                                                         | tht. we were keeping it open.                                  |
|                                                      | Then she says - pressure in Parlt.  It's the job of Ministers to resist |                                                                |
|                                                      |                                                                         | that?                                                          |
|                                                      | Then tht. l.a.'s won't play.  What is M/Ed. for, with its new power     |                                                                |
|                                                      |                                                                         | of dir                                                         |
| n                                                    |                                                                         |                                                                |
| ?  Yield to this & you put Govt. at mercy of l.a.'s. |                                                                         |                                                                |
|                                                      | This is a slippery slope.  Why aren't mat. & child-welfare services     |                                                                |
|                                                      |                                                                         | on same basis?  They were in same pos                          |
| n                                                    |                                                                         |                                                                |
| as "Kind".                                           |                                                                         |                                                                |
|                                                      | What was our attitude in Bev. Debate?  There are existg. social         |                                                                |
|                                                      |                                                                         | services for children & we will see they are developed.  Where |
|                                                      |                                                                         | do we get to if we admit 100% for any service for children.    |
|                                                      | 100% grant is bad in principle - for local Govt. and State.             |                                                                |
|                                                      | What is even more worrying is reluctance to w'stand l.a. pressures.     |                                                                |
| P.M.                                                               | Agree with general principles sugg                                     |
|--------------------------------------------------------------------|------------------------------------------------------------------------|
| d                                                                  |                                                                        |
| by H.M.                                                            |                                                                        |
|                                                                    | But we have to remember public impression.  Emphasis was on meals      |
|                                                                    |                                                                        |
|                                                                    |                                                                        |
|                                                                    |                                                                        |
|                                                                    | Prep                                                                   |
| d                                                                  |                                                                        |
| to stand up to Parlt. and l.a.'s - but is this a good issue on wh. |                                                                        |
|                                                                    |                                                                        |
|                                                                    |                                                                        |
| E.W.                                                               | I have no power to w'hold grant fr. l.a. for not providing meals wh.   |
|                                                                    |                                                                        |
|                                                                    |                                                                        |
| J.W.                                                               | This is an exception to H.M.'s general principles.                     |
|                                                                    |                                                                        |
| A.B.                                                               | Can we agree tht. here it is politically impracticable to avoid 100%   |
| x/                                                                 | grant on this provided that a special scheme is made to secure         |
|                                                                    |                                                                        |
|                                                                    |                                                                        |
| A.                                                                 | Support H.M.   Think tht. RAB.'s quote is groggy:  but hope still we   |
|                                                                    |                                                                        |
|                                                                    |                                                                        |
|                                                                    | Take a stand on this.  Tell l.a.'s frankly 100% grant is wrong in      |
|                                                                    |                                                                        |
|                                                                    |                                                                        |
| A.V.A.                                                             | On my past experience in local govt. can't believe l.a. wd. expect to  |
|                                                                    |                                                                        |
|                                                                    | Gather Cab. accept principle tht. 100% grant is bad.  I shd. hope that |
|                                                                    |                                                                        |
|                                                                    |                                                                        |
| S.                                                                 | Neutral.                                                               |
|                                                                    |                                                                        |
| J.J.L.                                                             | Not impressed by argument re 100% for air-raid shelters.  Shd. be set  |
|                                                                    |                                                                        |
|                                                                    | Against 100% grant in principle.  L.a.'s rod in pickle - wd. make it   |
|                                                                    | easier for totalitarianism to take hold.  Support Ty.                  |
|                                                                    |                                                                        |
| P.L.                                                               | Support M/Ed                                                           |
| n                                                                  |                                                                        |
| .                                                                  |                                                                        |
|                                                                    |                                                                        |
| G.A.I.                                                             | T.U. Conf                                                              |
| ce                                                                 |                                                                        |
| on Beveridge.  We were under imp                                   |                                                                        |
| n                                                                  |                                                                        |
| Govt. wd. give the                                                 |                                                                        |
|                                                                    |                                                                        |
| d                                                                  |                                                                        |
| to it.  Inclined to favour x/                                      |                                                                        |
|                                                                    |                                                                        |
|                                                                    |                                                                        |
| E.Sh.                                                              | If we pay capital cost & food, let them pay staff.  Bring them in some |
|                                                                    |                                                                        |
|                                                                    |                                                                        |
| E.W.                                                               | But reluctant l.a.'s will then use the teachers!                       |
|                                                                    |                                                                        |
| T.W.                                                               | Remember l.a. members are demandg. paymt. for services.                |
|                                                                    |                                                                        |
|                                                                    |                                                                        |
| P.M.                                                               | Opinions divided - with slight pre-dominance in support of Ty. view.   |
|                                                    | H.M.                                                                   | Cd. Ty. & Ed. Dpts. examine:  if they can prevent extravagance on    |
|----------------------------------------------------|------------------------------------------------------------------------|----------------------------------------------------------------------|
|                                                    |                                                                        | the food we might give 100% on that:  the danger is in admin         |
| n                                                  |                                                                        |                                                                      |
| -                                                  |                                                                        |                                                                      |
|                                                    |                                                                        | staff etc., where we shd. avoid 100%.                                |
|                                                    |                                                                        |                                                                      |
| P.M.                                               | Make sure the 3/= benefits the child:  and isn't offset by rates.      |                                                                      |
|                                                    |                                                                        |                                                                      |
| H.D.                                               | They will have to pay thro' taxes.                                     |                                                                      |
| y/ Am prep                                         |                                                                        |                                                                      |
| d                                                  |                                                                        |                                                                      |
| to discuss again with M/Ed. in light of discussion |                                                                        |                                                                      |
|                                                    |                                                                        |                                                                      |
|                                                    |                                                                        |                                                                      |
| T.W.                                               | Warning:   increased consumpt                                          |                                                                      |
| n                                                  |                                                                        |                                                                      |
| of milk by these schemes will                      |                                                                        |                                                                      |
|                                                    |                                                                        | retard the abandonment of rationing.                                 |
|                                                    |                                                                        |                                                                      |
|                                                    |                                                                        |                                                                      |
|                                                    | 3.                                                                     | Post-war Fire Service.                                               |
|                                                    |                                                                        |                                                                      |
| C.E.                                               | Pledge was - return to L.G. Service.  Not to same l.a.'s as pre-war.   |                                                                      |
|                                                    | N.F.S. had turned out better than anyone thought.                      |                                                                      |
|                                                    | If these pledges not given, I wd. have favoured retent                 |                                                                      |
| n                                                  |                                                                        |                                                                      |
| of N.F.S.                                          |                                                                        |                                                                      |
|                                                    | But l.a.'s not in least inclined to release us from our pledges.       |                                                                      |
|                                                    | Ques. therefore is - to what l.a.'s shall we return it.  To go back to |                                                                      |
|                                                    |                                                                        | pre-war multiciplicity of small auth                                 |
| ies                                                |                                                                        |                                                                      |
| wd. not produce                                    |                                                                        |                                                                      |
|                                                    |                                                                        | efficiency.                                                          |
|                                                    | Problem:  how to secure efficiency with no power to w'hold grant.      |                                                                      |
|                                                    |                                                                        | H'to no grant for this service.  Essential now to give a grant.      |
|                                                    |                                                                        |                                                                      |
| J.W.                                               | In Scotland handing back wd. be to 228 auth                            |                                                                      |
| ies                                                |                                                                        |                                                                      |
| .  Wd. be absurd.                                  |                                                                        |                                                                      |
|                                                    | I cd. have carried a N.F.S.  But pledged had to be honoured.           |                                                                      |
|                                                    | Plan therefore to reduce to 55 the no. of fire auth                    |                                                                      |
| ies                                                |                                                                        |                                                                      |
| , grouped for                                      |                                                                        |                                                                      |
|                                                    |                                                                        | operational purposes into 11 Regions.                                |
|                                                    | Grant is essential to secure efficiency.  Tho' we have not led l.a.'s  |                                                                      |
|                                                    |                                                                        | to expect any.  Amount of grant is matter for negotiation - but      |
|                                                    |                                                                        | prob. about 50%.                                                     |
|                                                    |                                                                        |                                                                      |
| T.W.                                               | Wd. H.O. allow inter-county arrangemts. or co/co. boro' arrangements.  |                                                                      |
|                                                    |                                                                        |                                                                      |
| C.E.                                               | Mutual aid arrangemts. throughout the Country.                         |                                                                      |
|                                                    |                                                                        |                                                                      |
| H.D.                                               | Need for caution.  Percentage grant sugg                               |                                                                      |
| d                                                  |                                                                        |                                                                      |
| - for all auth                                     |                                                                        |                                                                      |
| ies                                                |                                                                        |                                                                      |
| .  Gather                                          |                                                                        |                                                                      |
|                                                    |                                                                        | l.a.'s will ask for not less than 50%  That is untenable.            |
|                                                    |                                                                        | L.A.'s who have no financial need come in under this formula         |
|                                                    |                                                                        | & get more than they need.                                           |
|                                                    | Agree tht. Exch. shd. help.  But not on percentage basis:  on basis of |                                                                      |
|                                                    |                                                                        | grant to aid only cases of need.                                     |
|                                                    |                                                                        |                                                                      |
| C.E.                                               | L.a.'s have asked for 50%, on basis of Police grant.  Have given them  |                                                                      |
|                                                    |                                                                        | no encouragemt. and don't believe 50% is necessary.  20%             |
|                                                    |                                                                        | overall shd. be enough.  But must be overall i.e. some to all if     |
|                                                    |                                                                        | I am to have disciplinary control.                                   |
|                                                    |                                                                        |                                                                      |
| A.B.                                                             | a)                                                                      | Hope H.O. will resist non co. boros. comg. in.               |
|------------------------------------------------------------------|-------------------------------------------------------------------------|--------------------------------------------------------------|
|                                                                  |                                                                         |                                                              |
| C.E.                                                             | Yes.                                                                    |                                                              |
|                                                                  |                                                                         |                                                              |
| A.B.                                                             | b)                                                                      | Don't prejudice main financial negot                         |
| ns                                                               |                                                                         |                                                              |
| with l.a.'s by starting                                          |                                                                         |                                                              |
|                                                                  |                                                                         |                                                              |
|                                                                  |                                                                         |                                                              |
| ies                                                              |                                                                         |                                                              |
| .                                                                |                                                                         |                                                              |
|                                                                  |                                                                         |                                                              |
|                                                                  |                                                                         |                                                              |
| E.Sh.                                                            | L.a.'s may want this back.  But do the public?                          |                                                              |
|                                                                  |                                                                         |                                                              |
| P.M.                                                             | Can't cut into l.a.'s further, on this too, after these pledges.        |                                                              |
|                                                                  |                                                                         |                                                              |
| H.M.                                                             | Consequences on l.a.'s of various changes.                              |                                                              |
|                                                                  | Grant.  This never was grant-aided.  But how can H.O. control           |                                                              |
|                                                                  |                                                                         | efficiency unless he makes a grant.  And for that purpose it |
|                                                                  |                                                                         | must be a percentage grant.                                  |
|                                                                  | Leg                                                                     |                                                              |
| n                                                                |                                                                         |                                                              |
| can't come in until next Session.  Discuss ques. of grant before |                                                                         |                                                              |
|                                                                  |                                                                         | you make announcemt.  Be firm.                               |
|                                                                  |                                                                         |                                                              |
| C.E.                                                             | Must make some announcemt. to l.a. associations.                        |                                                              |
|                                                                  |                                                                         |                                                              |
| E.Sh.                                                            | We shd. first consider what is future function of local govt.  We go on |                                                              |
|                                                                  |                                                                         | pre-judging it by piece-meal decisions.                      |
|                                                                  |                                                                         |                                                              |
| P.M.                                                             | Does anyone else think you cd. hold N.F.S. against l.a.'s.              |                                                              |
|                                                                  |                                                                         |                                                              |
| J.W.                                                             | I cd. in Scotland:  but I won't do so against the pledges.              |                                                              |
|                                                                  |                                                                         | Agreed as in memo:  but no decision on grant (disc           |
| ns                                                               |                                                                         |                                                              |
| still                                                            |                                                                         |                                                              |
|                                                                  |                                                                         | procdg).                                                     |



4. 
Financial Negotiations in Ottawa. 

 H.D. 
As in memo. 
 
Para. 6 (a) and (b) - fractionally better for us in money & gets rid of  

              1942 loan. 

  (c)  -  merges A.T. Scheme with the rest. 
 
Beech 33 from Eady indicates tht. Canadians wdn't have the 
 
 
alternative. 
 
Now therefore advise Cab. to close with offer in para. 3. 
 
 
Advantages:  £281 m. cash in a tight period:  A.T. Scheme wiped 

            away. 

            Old loan - awkward:  but must accept. 
 
Effect on U.S. Loan.  If this broke down with Canada, wd. be 
 
 
prejudicial to success of U.S. Loan.  Settlement of this wd. be 
 
 
somewhat helpful. H.M. 
Canad. Govt. wd. be friendly.  Trouble is Quebec.  Had hoped  
 
 
Canada wd. do somethg. v. much better than U.S. 

 P.L. 

Strongly support acceptance.  This is substantially more generous  

|                                                  |                                                                         | than U.S., specially the A.T. Scheme.                          |
|--------------------------------------------------|-------------------------------------------------------------------------|----------------------------------------------------------------|
|                                                  |                                                                         |                                                                |
| A.V.A.                                           | And indicate gratitude.  Recall the 1 bill. dollar gift.  And Canada's  |                                                                |
|                                                  |                                                                         | pop                                                            |
| n                                                |                                                                         |                                                                |
| = 12 m. vice 120 m. in U.S.                      |                                                                         |                                                                |
|                                                  | How is amortisation scheme workg?  Forced sales of C. securities.       |                                                                |
|                                                  |                                                                         |                                                                |
| H.D.                                             | No forced sales.  If they are sold, proceeds are earmarked v. the loan. |                                                                |
|                                                  |                                                                         |                                                                |
|                                                  |                                                                         |                                                                |
|                                                  |                                                                         |                                                                |
|                                                  | 5.                                                                      | Future Use of "Queen Elizabeth".                               |
|                                                  |                                                                         |                                                                |
| H.M.                                             | As in B.'s memo.                                                        |                                                                |
|                                                  |                                                                         |                                                                |
| B.                                               | Seen Percy Bates:  can assure Cab. tht. labour & materials will be      |                                                                |
|                                                  |                                                                         | v. little because 90% of equipmt. & fittings were available    |
|                                                  |                                                                         | before liner was requisitioned.   Her equipmt. is in fact on   |
|                                                  |                                                                         | simpler scale than Q. Mary.  Fewer shops etc.                  |
|                                                  | Can it be adjusted to p-war demand.  The cabin & 3                      |                                                                |
| rd                                               |                                                                         |                                                                |
| can be                                           |                                                                         |                                                                |
|                                                  |                                                                         | interchangeable to substantial extent acc. to demand.          |
|                                                  | Much of the labour wd. be used whatever the plan adopted.               |                                                                |
|                                                  |                                                                         |                                                                |
| A.                                               | Australians (H. Comms) concerned:   2.500 women & chil. wantg.          |                                                                |
|                                                  | to go to Austr.                                                         |                                                                |
|                                                  |                                                                         | Want assur                                                     |
| ce                                               |                                                                         |                                                                |
| removal of Q.El. won't reduce amount of shipping |                                                                         |                                                                |
|                                                  |                                                                         | available for that.  Want them to have those assurances, thro' |
|                                                  |                                                                         | B. & me, before public announcement made.                      |
|                                                  |                                                                         |                                                                |
| B.                                               | Have seen Beazly.  1.000 wd. brk. back of their problem.  And I can     |                                                                |
|                                                  |                                                                         | do it in March.                                                |
|                                                  |                                                                         |                                                                |
| P.M.                                             | Announcemt. to be cleared with Service Dpts.     }                      |                                                                |
|                                                  |                                                                         |                                                                |
| S.                                               | Want to send Demob. Forms in advance to           }                     |                                                                |
|                                                  |                                                                         | forestall trouble.                                             |
|                                                  |                                                                         |                                                                |
| J.J.L.                                           | Will available shipping cover increased p'mmes due to latest            |                                                                |
|                                                  |                                                                         | red                                                            |
| ns                                               |                                                                         |                                                                |
| in Serv. strengths.                              |                                                                         |                                                                |
|                                                  |                                                                         |                                                                |
| B.                                               | Yes:  to the extent that requiremts. have bn. notified to M/W.T.        |                                                                |
|                                                  | W'drawal of Q.E. doesn't affect shipping for India.                     |                                                                |
|                                                  |                                                                         |                                                                |
|                                                  |                                                                         |                                                                |
| c                                                |                                                                         |                                                                |
| N., C.J., N.B.                                   |                                                                         |                                                                |
|                                                  |                                                                         |                                                                |
|                                                  | 6.                                                                      | Treaty with Trans. Jordan.                                     |
|                                                  |                                                                         |                                                                |
| C.J.                                             | As in memo.  Tried to keep w'in spirit of charter.                      |                                                                | N.B. 
F.O. are satisfied. A.B. 
Art. 4 assumes U.N.O. has broken down. 
 
McN. 
No.  It conforms to Art. 55 of U.N. Charter. 
 
If we don't have mil. alliance we shall make her independence look 
 
 
v. odd. P.M. 
Art. 4 is a local arrangemt. N.B. 
After failure of Art. 3., Sec. Council takes on:  but if attack m'while 
 
 
Art. 4 comes in, in complete conformity with provns of  
 
 
U.N. Charter. J. 
Omit words in [ ] fr. Art. 4. C.J. 
Essence for Emir is mil. conventn & promise of aid. 
 
McN. 
Removes reason for mil. Convention.  Then Emir not interested in 
 
 
Treaty. P.M. 
Two separate situations in Art. 4. N.B. 
And wording comes from U.N. Charter.  Those words are intended 
 
 
to legitimise such arrangemts. thro' mil. alliance. 


Agreed. 
                [Exit McNeil. 
7. 
Malaya. C.J. 
Sultan's seekg. to go back on their agreemt.  And opposn aroused 
 
 
among more vocal elements in Malaya - also ex-Civil 
 
 
Servants etc. here. 
 
Thght Cab. shd. be informed. 
 
Objns are to common citizenship (not transfer of jurisdiction) but 
 
 
we regard that as basic.  We therefore recommend tht. Govt. 
 
 
stands firm on this. 
 
In para. 5(b) we suggest a line of retreat if there's much opposn in 
 
 
debate on Straits Settlemt. Bill. A. 
Elibank and Marchwood were at back of diffies in H/Lds. 
 
Stand firm. C.J. 
There is also informn fr. Malaya of growg. feeling of Malays v. 
 
 
Indians & Chinese. 


Agreed - as in memo. 
[Exit C.J. 

Enter Barnes & Smith. 

## 8. World Food Supplies:  Proposed Mission To N. America.

 H.M. 
Referred to me onTuesd.  No time to get full agreemt. of Dpts  
 
 
(esp. Ty.) so have put in memo. myself. 
 
Prospect of continuing deterioration. 
 
U.K. doing all in our power:  need to get other Govts. to do all they 
 
 
can. 
 
In particular, want Canada & U.S. to increase acreage. 
 
 
Proposal:  send mission to talk to Govts. & farmers 

       composn to be settled by P.M. 

       long-term agreements to buy at fixed price over 

               no/years. 
 
Urge Ty. to face implicns of not getting sufft. acreage sown. 
 
Might buy on behalf of India & other countries too.  But takes time  
 
to bring others in.  Only 5 wks. to go in N. America.  Must 
 
 
therefore secure our own interest first. P.M. 
I will hold over ques. wtr a Minister shd. go:  & settle it myself. 
 
Doubt if Minister shd. go & talk to their farmers. 
 
How will it fit in with loan? H.D. 
Agree in principle to guaranteed price. 
 
$1.55 is top price now being negotiated with Canada. 
 
Wd. be disturbed by commitments to buy U.S. wheat with dollars. 
 
 
Where wd. we be if you didn't get the Loan.  And just as bad 
 
 
to give India dollars with wh. to buy U.S. wheat.  Especially 
 
 
as U.S. price is at least $1.85. 
 
What about Australia.  That is where we want supplies fr.  Natural 
 
 
source for India.  Sterling cost.  And a friendly Dom.  Australia  
 
 
shd. feed India:  and problem of payment fr. India's sterling  
 
 
balance is v. easy. B.S. 
You will only get wheat by price. 
 
Australian & Can. prices are 3 times higher than pre-war.  This shd. 
 
 
be incentive enough.  Agreed to take all Can. wheat we can at  
 
 
$1.55 up to end/47:  & wdn't fall below $1 for 4 years 
 
 
(? not further years). 
 
Other source = Argentine.  You cd. get them to grow at this price, if it 
 
 
were not that maize & rye is at higher price.  You shd. get 
 
 
equalisation or rather adjustment of price relativities. 
 
Canada:  dust-bowl fears of M/Ag. wd. have to be overcome. 
 
Australia:  less animals if more wheat. 
 
Missions:  diffy. is now you wd. be going to free market, not 
 
 
controlled establmts.  Might, however, be worth while to send  
 
 
someone to impress need for increased acreage - not talking  
 
 
about contracts. T.W. 
Must look after U.K. first.  But in shortage many claimants & to  
 
 
protect our own supplies we must press for increased supplies. 
 
Object in mind was tht. Minister shd. go & talk to Govts. in Canada 
|                       |                                                                     | and U.S.  And if thereafter thght. shd. be campaign in support,    |
|-----------------------|---------------------------------------------------------------------|--------------------------------------------------------------------|
|                       |                                                                     | we shd. join in it.                                                |
|                       | Mightn't be wise to send agric. experts on our own, to address      |                                                                    |
|                       |                                                                     | farmers.  Diff. if we acted thro. F.A.O.                           |
| P.M.                  | Two points (different)  a) appeal on behalf of world.               |                                                                    |
|                       |                                                                     |                                                                    |
|                       |                                                                     |                                                                    |
| A.B.                  | If we approach Can. & Aust. on bulk-purchase basis, it will leave 2 |                                                                    |
| nd                    |                                                                     |                                                                    |
|                       |                                                                     | problem as concertg. with importg. countries to get larger         |
|                       |                                                                     | acreage in U.S.A.                                                  |
|                       |                                                                     |                                                                    |
| P.L.                  | Awkward to ask India to guarantee purchase:  & then say they can't  |                                                                    |
|                       |                                                                     | pay in dollars.                                                    |
|                       | Point is producers fears in U.S.                                    |                                                                    |
|                       | Cd. I ask Indian Food Deleg                                         |                                                                    |
| n                     |                                                                     |                                                                    |
| to stay on & join in. |                                                                     |                                                                    |
|                       |                                                                     |                                                                    |
| H.D.                  | Initial step - open discussions with Australia, on same basis as    |                                                                    |
|                       |                                                                     | Canada.               Agreed.                                      |



Discussion on other points adjourned. 

## 1. Spain.

 E.B. 
Note recd protestg. v. interfce with intern. affairs of Spain. 
 
Agree with U.S. note.  France may wish to alter it.  I propose to 
 
 
stand on U.S. draft & present it. 
 
Beware of Sov. Policy here, worked thro' Fr. Communists. 
 
 
Danger to Gib. 
 
Don't want civil war in Spain.  Also diffy. re supplies to U.K. fr. 
 
 
Spain, e.g. fertilizers thro' Spain.  Have asked Dpts. to consider 
 
 
altern. sources. 
 
Some processg. of phosphates now done in Spain shd., even on  
 
 
defence grds., to be done in U.K. R.S.C. 
Diff. to get labour even for what processing we do. E.B. 
U.S. have found way round that, by machinery.  We shd.  
 
 
experiment. 
 
M/S. must also consider iron ore, pyrites & resin:  qua altern. sources. 
 
Form of alternative Govt.  If Franco goes, Sp. may drift into chaos. E.W. 
Spoke in favour of a strong line. E.B. 
Fr. proposed appeal to Sec. Council.  Can't see how it can be got 
 
 
before them under the Charter.  Will however ask Att. Genl. to  
 
 
verify. 
 

2. 
Persia. 

 
E.B. 
Have presented Note & await Sov. reply.  Read out note x/. 
 
If refce to S. Council, better let it come fr. Persia - not fr. another 
 
 
gt. Power. 
 
U.S. will support them if they do appeal:  tho' they wdn't send a corr. 
 
 
Note. 


x/ 
recited informn:  called attn to Art. 5 of Treaty:  as 2/9 was 


end of war with G.'s satellites 2/3 = end of 6 mos'. period: 


we have w'drawn:  have you - if not, what are yr. intentns: 


any failure to go by 2/3 is regarded by us as breach of  


obligns to H.M.G. under Treaty. A.B. 
Has Press given sufft. publicity to fact tht. B. troops have bn. 
 
 
w'drawn? P.M. 
I will mention to-day in Def. Debate. 
 
3. 
Syria and Lebanon. E.B. 
Agreed 30/4 as date of our w'drawal from Syria.  Will get on with 

 
 
Lebanon. H.D. 
Hope equivalent will come home fr. M/East.  Otherwise no saving. 
 
E.B. 
Bound to increase total releases fr. overseas.  9.000 relief now  
 
 
+ 6.000 more when we clear Lebanon. 

                                    [Enter N.B., Barnes & Summerskill. 
 
4. 
Sabotage of Ships. B. 
Enquiry apptd.   No informn yet. 
5. 
World Food Supplies. P.M. 
Sent B. Smith over on immed. issue, particularly to support Indian 
 
 
Delegn. 
 
H.M.'s memo. raises, however, more far-reachg. long-term issues. H.M. 
Gap increasing at ½ m.t.p. week. 
 
Evidence tht. Truman's advisers are not agreed in moving him to 
 
 
vigorous action to increase sowings.  Ques:  wtr. we can do  
 
 
anything to stimulate.  Canada (reply to P.M.) is also  
 
 
hesitant. 
 
U.S. is not doing even what they have decided shd. be done  
 
 
viz., falling down on existg. p'mme, which is not enough  
 
 
anyway. 
 
Unthinkable that we cd. hold our own posn if Empire countries were 
 
 
really short.  When the time came we shd. have to surrender 
 
 
part of our own supplies. 
 
Why shd. we take lead - because largest importer & natural political  
 
 
leader of importers. 
 
Para 6(a) met by despatch of M/Food. 
 
Para 6(b) - long-term contracts in principle appd by Cabinet.  Cd. we 
 
 
not persuade French, Indians etc., to do same thing for U.S. 
 
 
wheat?  Remember how diff. an approach it is to U.S. farmers 
 
 
w'out some such assurance.  If U.S. Govt. will give the 
 
 
assurance, good & well:  but if not we shd. try to get other  

|     |     | countries to place contracts.    |
|-----|-----|----------------------------------|

 
Para 6(c) - consequences of famine.  Let U.S. Govt. know, too, as  

|     |     | well as Cab.    |
|-----|-----|-----------------|

 
 
Picture of what is coming. 
 
Conclude with warning in para. 7. 

 
Problem:  how to handle U.S.?  B.S. can do it w'in limitns of present 

 
 
Mission.  But Truman & Acheson must be got going on this. 
 
 
Wondered wtr. E.B. cd. go both to Washington & Ottawa mtg. of  


S. Council:  he might go out in advance of that.  Our duty to 
 
 
U.K., B. Comm. & whole world is to take early and vigorous  
 
 
action. 

 T.W. 
C.P.(46) 24.  For 46/47 there will be 7 m. less for export than for 
 
 
45/46.  If that estimate is correct, next year will be worse than 
 
 
this - except to extent tht. Europe does better. 
 
If Canada adheres to 2 yrs. wheat + 1 yr. fallow, we shan't get what 
 
 
world wants. 
 
Canada exportg. 61/4 m. this year, as against normal 4 m. 
 
Agree with approach in C.P.(46) 90. 
 
If surplus in 46/47, cd. be used for reserve - e.g. in India. P.M. 
How cd. other countries finance long-term contracts with U.S.  ?  Export 
 
 
& Import Bank, tied loans? 
 
H.D. 
Threat to our dollar & gold reserves. 
 
Prepd to agree to 6(b).  $1. Can. dollar - no higher - floor. 
 
Wd. like to hear more of Australia. T.W. 
1 m. tons this year:  assumg. 3 m. next year.  We are relying on 
 
 
Australia. H.D. 
Don't let us get commd to v. big quantities too far ahead. 
 
How do we know what will happen to harvests of year after next.   
 
 
France may recover quickly.  And they are going to buy wheat  
 
 
from Russia. E.B. 
R. are offering wheat to Greece, too! H.D. 
Needn't yet look at Bank proposals. E.S. 
Our experts don't want us to give assurances of purchases from U.S. 
 
P.M. 
That is not proposed.  We are talking about needs of other countries. A.B. 
Can you expedite mtg. of Agr. Ministers on 4/4. N.B. 
Summoned by EECE.  Directed to autumn sowings & slaughter of 
 
 
livestock. 
 
 
For spring sowing, trouble is seed.  Trying to get alternatives 
 
 
to grain e.g. potatoes. A.B. 
Para. 7.  W. Paper to show what we are doing & have done. 
 
But cdn't we get European P.M.'s before 4/4? T.W. 
Europe - dilemma:  eat the seed or sow it? 
 
We cd. get them to look fwd. to autumn:  doubt if it wd. consider 
 
 
this spring's ques. R.S.C. 
Shall we try in these circs. to continue C.F.B. E.S. 
Yes - in diff. form. E.Sh. 
Remember not to forget Argentine. P.L. 
Austr. new sowg. not avail. until Jan. '47.  India must look to  
 
 
N. Hemisphere for immed. needs. E.B. 
No time to make up my mind. 
 
Reluctant to concentrate on U.S.  I can't go to U.S. w'out  
 
 
implying tht.  I shall discuss other things too. 
 
Too much concentn on N. America.  Wd. rather diffuse it.  What 
 
 
have we done to increase exports fr. S. Am. countries. 
 
Drama no longer has any effect on U.S. 
 
Acheson is only person who can get on with this. 
 
If you want pol. issue pressed, I wd. rather raise it first thro'  
 
 
Ambassador.  It is U.S. statesmen who must do it.  Doubt if they 
 
 
will do it on my intervention.  Get a slogan across e.g. "munitions 
 
 
for peace".  First round via offl. channels.  May be that someone 
 
shd. go over later. 
 
U.S. farmers - trouble:  went on until 1920 growg. wheat & got 
 
 
unbalanced agriculture:  wheat sank to 35c. and countryside 
 
 
starved.  Not until FDR. came in did they recover the balance 
 
 
of their agriculture. 
 
 
How can the guaranteed price for 4 yrs. meet that? T.W. 
Wd. help them to plan the transition.  Wd. emphasise fact that high  
 
wheat prodn can't go on for ever. E.B. 
20m. acres at 9 cwt. p. acre. in U.S. 
 
Cd. you diffuse the demand.  Is there world shortage of seed? 
 
Have bn. assured whole of R. acreage will be filled this year.  She cd. 
 
 
get export surplus of 2/3rds prodn.  Ought therefore to carry  
 
 
Poland, Czechosl. etc., and relieve UNRRA. 
 
Not yet convinced this is right method. 
 
P.M.          x/ Resume discn at W.F.S. Mtg. Tuesday.  Turned into a Cabinet Meeting. A. 
a)  Shd. be much larger European prodn next year.  Not sure our  
 
 
estimates take enough a/c of that. 
 
b)  Some long-term assurance - at least 4 years - will be necessary 
 
 
for Canada. 
 
     Because they can't forget what happened last time. 
 
     Wd. have to apply to Australia. E.B. 
Supply India from Australia.  Get Austr. to build up Indian reserve. 
 
Wd. help pol. negotns if her food were coming fr. Austr. vice U.S.A. 
Austr. wd. regard it as Pacific trade, wh. they like. 
 
The less we are dependent on U.S. for India, the better. 
 
 
Agreed as at x/. 
 
 
Send immedte instn to M/F. on para. 6(a) 
|                            |                                                                  |     | [E.B.   Can A. and I talk to Beasley re Australia & India?    |
|----------------------------|------------------------------------------------------------------|-----|---------------------------------------------------------------|
|                            |                                                                  |     | Put pol. issues in add                                        |
| n                          |                                                                  |     |                                                               |
| to supply approach by M/F. |                                                                  |     |                                                               |
|                            |                                                                  |     |                                                               |
| P.L.                       | Ind. Food Deleg                                                  |     |                                                               |
| n                          |                                                                  |     |                                                               |
| to see U.S. farmers.       |                                                                  |     |                                                               |
|                            |                                                                  |     |                                                               |
| P.M.                       | No need for special auth                                         |     |                                                               |
| y                          |                                                                  |     |                                                               |
| for that.                  |                                                                  |     |                                                               |
|                            |                                                                  |     |                                                               |
| P.M.                       | Will G/India give guarantee for Austr. wheat.  Ask them at once. |     |                                                               |
|                            |                                                                  |     |                                                               |
|                            |                                                                  |     |                                                               |
|                            |                                                                  |     |                                                               |

## 6. Post-War Pay For Officers Of Armed Forces.

 
P.M. 
Genl. explanation. 


Agreed. 

## 7. Japan:  Policy Towards Japanese Industry.

 E.B. 
Para. 16.  Problem:  avoid German situation in wh. load falls on 
 
 
B. taxpayer. 
 
Outstanding issue = Jap. ship-building.  Summarised views 
 
 
pro and con. A.V.A. 
Need to look after war potentials at home & abroad. Consequence of  
 
 
failure to do this with Germany last time.  Not enough to say  
 
 
J. merchant bldg. reached only 400.000 t.  That enabled her to 
 
 
develop such technique tht. she cd. build up strong naval yards. 
 
 
Realise you can't hold down J for ever:  but can do until they 
 
 
prove their bona fides.  Referred to E.I.P.S. paper.  This bldg. 
 
 
cdn't be prevented by the steel ceiling proposed. 
 
Importce of merchant tonnage in war. P.M. 
Cd. her navy be effective if allowed no aircraft? A.V.A. 
Both factors equally powerful. E.B. 
3.5 m. tons of steel wdn't leave much surplus for shipping.  You 
 
 
eliminate aircraft entirely.  You destroy the big yards.  That shd. 
 
 
be enough. 
 
If you allow no m. marine, there will be load on B. taxpayer. B. 
Easiest to enforce.  Most effective handicap for island race. 
 
If aircraft prohibited, follows that shipping shd. too. J.J.L. 
Island with that popn must live on exports - must have some 
 
 
m. marine. 
 
Isn't this the chance to deal with cheap J. exports. 
 
|                                        | R.S.C.                                                                 | Two aspects.  a) security   b) rival trade.   Agreed we adopt only    |
|----------------------------------------|------------------------------------------------------------------------|-----------------------------------------------------------------------|
|                                        |                                                                        | a) as criterion.                                                      |
|                                        | On a) you make minimum prohib                                          |                                                                       |
| ns                                     |                                                                        |                                                                       |
| because otherwise the thing won't      |                                                                        |                                                                       |
|                                        |                                                                        | be enforced.  As with G. before - not because we didn't try           |
|                                        |                                                                        | enough but because people reacted v. too much.                        |
|                                        | Concentrate therefore on minimum.  She must export.  If she has,       |                                                                       |
|                                        |                                                                        | not only to forego shipping earnings, but also to pay for shipping    |
|                                        |                                                                        | she needs, she will be forced into consumers' goods.                  |
|                                        |                                                                        |                                                                       |
| A.V.A.                                 | Quoted, v. this, para. 12 of E.I.P.S. memo.                            |                                                                       |
|                                        | Also p.4 of that memo. - shipbuilding control is v. economic of staff. |                                                                       |
|                                        |                                                                        |                                                                       |
| A.B.                                   | I believe E.B.'s memo. proposes too many rest                          |                                                                       |
| ns                                     |                                                                        |                                                                       |
| .                                      |                                                                        |                                                                       |
|                                        | Believe all you can do is insp                                         |                                                                       |
| n                                      |                                                                        |                                                                       |
| at finishing stage.  Then have rest of |                                                                        |                                                                       |
|                                        |                                                                        | economy free.  Otherwise you impose on J. low standards of life.      |
|                                        |                                                                        | That is the biggest threat to world trade:  and biggest source of     |
|                                        |                                                                        | future aggressions.                                                   |
|                                        |                                                                        |                                                                       |
| H.D.                                   | What are views of Austr. & N.Z.?                                       |                                                                       |
|                                        |                                                                        |                                                                       |
| A.                                     | Haven't replied to our enquiry. Assume that means no strong views on   |                                                                       |
|                                        |                                                                        | our memo. 78.  But I must consult if we allow them to build big       |
|                                        |                                                                        | ships.                                                                |
|                                        |                                                                        |                                                                       |
| J.                                     | Agreed:  must get Dom. views.                                          |                                                                       |
|                                        | Shipbldg. is an easy thing to control:  I sympathise with it fr.       |                                                                       |
|                                        |                                                                        | enforcemt. angle.                                                     |
|                                        |                                                                        |                                                                       |
| H.D.                                   | Submit pros & cons on ship-bldg. & invite their views.                 |                                                                       |
|                                        |                                                                        |                                                                       |
| E.B.                                   | Were told we were holdg. up.  Doms. have had this for wks.  Why        |                                                                       |
|                                        |                                                                        | don't they reply?                                                     |
|                                        |                                                                        |                                                                       |
| A.                                     | Will get reply by Friday.                                              |                                                                       |
|                                        |                                                                        |                                                                       |
| P.M.                                   | Do so.                                                                 |                                                                       |
|                                        |                                                                        |                                                                       |
|                                        |                                                                        |                                                                       |
|                                        |                                                                        |                                                                       |

## 8. Shipbuilding Advisory Committee.

 A.V.A. 
As in memo. P.M. 
We suggd person not necessarily repres of Unions as such.  Was that put? H.M. 
Impossible to put shipowners on but not seamen. 
 
Way-out:  have no users permanently on, but bring users in (both of 
 
 
them) for specl. mtgs. affecting them. R.S.C. 
Principle:  thought we wished to avoid syndicalist system  

 
 
throughout. 
 
Have had same opposn fr. industries to my proposals for outside repres. 
 
 
But have overcome it. 
 
B. 
But here we have repres of Govt. Dpts. A.V.A. 
Cttee of this kind has bn. workg. since '44 & seamen have never asked 
 
 
to be on it. P.M. 
Either we put both on, despite objns, or adopt compromise suggd above. 
 
  x/ General view:  put both on, despite objns. E.Sh. 
What will shipbuilders say then? 
 
A.V.A. 
Asked them if they wd. accept if Chairman got guidance to refer to 
 
 
sub-Cttees some users' points. 


Agreed as at x/. 
9. 
British Council in Spain: Employment of Roman Catholics. 
 
 
Agreed. 
 

## World Food Supplies.

 E.B. 
1946/7 prob. deficiency = 8 m. tons.  Shd. we concentrate on 
 
 
N. America or shd. we spread it.  On foreign pol. grds. favour 
 
 
diffusion.  The more we appeal to U.S. the more we appear  
 
 
dependent on them.  Don't like it.  Sent B.S. already.  If 
 
 
I went too it wdn't be understood here or in U.S. 
 
First therefore see what we can get from outside U.S. 
 
Believe Australia cd. supply 4 or 4½ m. vice 3m.  Saw Beasley 
 
 
last night & put it to him - floor for price & tapering off 
 
 
in 3rd year.  I said Japan wd. be out of export market, India on  
 
 
way to self. Govt:  & wd. he look at it qua future triangular trade 
 
 
with India & S. Africa.  He was attracted & promised to get on  
 
 
to his Govt. at once. 
 
India:  have G/Ins. given any increased rice target?  She must step 
 
 
up rice production.  Assumg. no monsoon failure shd. be able 
 
 
to get another 1 m. next year. 
 
Also maximise rice prodn in Siam.  Preparing transport m'while. 
 
Colonies.  Not satisfd tht. everything possible is being done in Malay. 
 
Burma cd. also do more for next year, if Govt. sets about it.  Agree 
 
 
must have guar. min. price there. 
 
Brazil & Argentine.  Latter cd. do another 8/900.000 t. tho' much  
 
 
depends on politics. 
 
The 8 m. deficit includes 3 m. in substitution for rice. 
 
The measures outlined above wd. reduce addl. demand on N. Am. 
 
 
to 3 m. tons, wh. wdn't upset their balance of agriculture.  Wd. 
 
 
prefer to concentrate on Australia, & wd. even contemplate going 
 
 
higher than 4½ m. from there. 

 
Killearn's efforts shd. stimulate China:  K. told to keep in touch with 
 
 
China:  Koo told we wd. receive a liaison offr. with K. if they 
 
 
sent one. 
 
Political disadvantages of my going to U.S. P.M. 
How far cd. addl. rice be secured in India.  The wet fertile areas 
 
 
are v. crowded. A. 
With irrigation much more is possible - but that won't help next  
 
 
year. R.S.C. 
With a price policy you cd. do something.  And Burma is best  
 
 
source. E.B. 
Govr/Burma looks at this more like a farmer than as war operation. A.V.A. 
Do E.B.'s figures allow enough for contingencies. E.B. 
N. America wd. have to be pressed to do 4 m. anyway. 

|                                                                   | A.B.                                                                  | Thought approach to U.S. was on behalf of countries other than    |
|-------------------------------------------------------------------|-----------------------------------------------------------------------|-------------------------------------------------------------------|
|                                                                   |                                                                       | Commonwealth?                                                     |
|                                                                   |                                                                       |                                                                   |
| E.B.                                                              | But no one wd. believe I went there for that purpose.  Wd. be         |                                                                   |
|                                                                   |                                                                       | supposed I was arguing for B. Empire.                             |
|                                                                   |                                                                       |                                                                   |
| T.W.                                                              | The real point is - tho' we meet our needs fr. Can. & Austr. - we     |                                                                   |
|                                                                   |                                                                       | can't hold our pos                                                |
| n                                                                 |                                                                       |                                                                   |
| v. demands of foreign countries in need.                          |                                                                       |                                                                   |
|                                                                   |                                                                       | That was why approach by E.B. was sugg                            |
| d                                                                 |                                                                       |                                                                   |
| .                                                                 |                                                                       |                                                                   |
|                                                                   |                                                                       |                                                                   |
| P.M.            x/ Consider then best method of stimulating U.S.? |                                                                       |                                                                   |
|                                                                   |                                                                       |                                                                   |
| E.B.                                                              | Do better with others if we are helping ourselves.  Do our job        |                                                                   |
|                                                                   |                                                                       | first, and then invite U.S. to do theirs.                         |
|                                                                   |                                                                       |                                                                   |
| A.B.                                                              | Simultaneously - otherwise not enough time.                           |                                                                   |
|                                                                   | Can we agree to E.B.'s plan:  then ask U.S. what they will do.        |                                                                   |
|                                                                   |                                                                       |                                                                   |
| R.S.C.                                                            | Put it to them thro' B.S. while he is there.                          |                                                                   |
|                                                                   |                                                                       |                                                                   |
| P.L.                                                              | India & Burma already pressed to increase rice acreage.  In dry areas |                                                                   |
|                                                                   |                                                                       | all depends (w'out irrigation) on the weather.  Can't be sure     |
|                                                                   |                                                                       | therefore tht. extra acreage will produce extra production.       |
|                                                                   |                                                                       |                                                                   |
| P.M.                                                              | Approach U.S. on idea of world granary.  F.A.O.?                      |                                                                   |
|                                                                   |                                                                       |                                                                   |
| N.B.                                                              | Cd. be done thro' F.A.O., I believe.  Broadley is discussg. with Orr. |                                                                   |
|                                                                   |                                                                       |                                                                   |
| R.S.C.                                                            | Burma is key to rice:  is D. Smith the right man for it?              |                                                                   |
|                                                                   |                                                                       |                                                                   |
| P.L.                                                              | Not a good administrator:  we've had to push him.                     |                                                                   |
|                                                                   |                                                                       |                                                                   |
| A.                                                                | He'll never do this job.                                              |                                                                   |
|                                                                   | Remember always price for primary producer.  Give him a fair deal:    |                                                                   |
|                                                                   |                                                                       | he's never had it in India/Burma.                                 |
|                                                                   |                                                                       |                                                                   |
| E.B.                                                              | A floor for rice is essential.                                        |                                                                   |
|                                                                   |                                                                       |                                                                   |
| T.W.                                                              | cf. palm oil:  higher the price, lower the output - w'out consumer    |                                                                   |
|                                                                   |                                                                       | goods.                                                            |
|                                                                   |                                                                       |                                                                   |
| P.M.                                                              | Come back to x/.                                                      |                                                                   |
|                                                                   |                                                                       |                                                                   |
| E.B.                                                              | D. Acheson is only man to move in U.S.  F.A.O. will lead only to      |                                                                   |
|                                                                   |                                                                       | resolutions.                                                      |
|                                                                   |                                                                       | Let me get Halifax to talk to Acheson at once.  He's              |
|                                                                   |                                                                       | handicapped because all countries appealg. to U.S. - "sucker".    |
|                                                                   |                                                                       | Don't want to make this worse.                                    |
|                                                                   |                                                                       | Let Labour Attache in W'ton to see A.F.L. & C.I.O. and get        |
|                                                                   |                                                                       | them at work.                                                     |
|                                                            |                                                                        |                                                                  | G.A.I.  Also Lewis.                       |
|------------------------------------------------------------|------------------------------------------------------------------------|------------------------------------------------------------------|-------------------------------------------|
|                                                            |                                                                        |                                                                  | Agreed:     Start w'in B. Empire.         |
|                                                            |                                                                        |                                                                  | { Approach U.S. as proposed.              |
|                                                            |                                                                        |                                                                  | { Get at Canada via Macdonald - Gardiner. |
|                                                            |                                                                        |                                                                  | { Follow up later thro' F.A.O.            |
|                                                            | Canada.  If obdurate at this approach, go higher via M. King or visit  |                                                                  |                                           |
|                                                            |                                                                        | by A.                                                            |                                           |
|                                                            |                                                                        |                                                                  |                                           |
| H.M.                                                       | Not happy.  Have pressed thro'out tht. B. Empire must do their         |                                                                  |                                           |
|                                                            |                                                                        | maximum.                                                         |                                           |
|                                                            |                                                                        | India's record isn't good.  No attempt to get acreage to keep    |                                           |
|                                                            |                                                                        | pace with pop                                                    |                                           |
| n                                                          |                                                                        |                                                                  |                                           |
| .  Want to know what they are going to do.                 |                                                                        |                                                                  |                                           |
|                                                            |                                                                        | Burma:  change Govr.                                             |                                           |
|                                                            | But only 4 weeks left in N. America.  How push N. Am. in that          |                                                                  |                                           |
|                                                            |                                                                        | period.  Can't afford to relax pressure on N. Am. in gamble that |                                           |
|                                                            |                                                                        | B. Emp. will do better.                                          |                                           |
|                                                            | Canada can't be moved by telegram.  If A. will go, well & good.        |                                                                  |                                           |
|                                                            | U.S.  Promises but no performance.  Agree Acheson:  said so:  ques. is |                                                                  |                                           |
|                                                            |                                                                        | who can move him.                                                |                                           |
|                                                            | Never sugg                                                             |                                                                  |                                           |
| d                                                          |                                                                        |                                                                  |                                           |
| suppliant to U.S. for ourselves.  What I meant was leading |                                                                        |                                                                  |                                           |
|                                                            |                                                                        | foreign countries in their approach to U.S.  Business not        |                                           |
|                                                            |                                                                        | supplication.                                                    |                                           |
|                                                            |                                                                        |                                                                  |                                           |
| P.M.                                                       | Politically disadvantageous to us to be assoc                          |                                                                  |                                           |
| d                                                          |                                                                        |                                                                  |                                           |
| with France in appl                                        |                                                                        |                                                                  |                                           |
| ns                                                         |                                                                        |                                                                  |                                           |
| of                                                         |                                                                        |                                                                  |                                           |
|                                                            |                                                                        | any kind to U.S.                                                 |                                           |
|                                                            | Prefer to put Halifax on to this.                                      |                                                                  |                                           |
|                                                            | And put A. on to Canada.                                               |                                                                  |                                           |
|                                                            |                                                                        |                                                                  |                                           |
| E.B.                                                       | In reply to sugg                                                       |                                                                  |                                           |
| n                                                          |                                                                        |                                                                  |                                           |
| , don't mix Can. with U.S. by askg. A. to go on to         |                                                                        |                                                                  |                                           |
|                                                            |                                                                        | U.S.                                                             |                                           |
|                                                            |                                                                        |                                                                  |                                           |
| A.B.                                                       | From Parly. pt/view action vis-à-vis U.S. must be overt.               |                                                                  |                                           |
|                                                            |                                                                        |                                                                  |                                           |
| R.S.C.                                                     | Thro' Ambassador.  That isn't covert.                                  |                                                                  |                                           |
|                                                            |                                                                        |                                                                  |                                           |
| A.B.                                                       | White Paper.                                                           |                                                                  |                                           |
|                                                            |                                                                        |                                                                  |                                           |
| P.M.                                                       | Get it out at once.                                                    |                                                                  |                                           |
|                                                            |                                                                        |                                                                  |                                           |
| N.B.                                                       | F.O. and M/F. are doing it.                                            |                                                                  |                                           |
|                                                            | Telegram to be shown to P.M.                                           |                                                                  |                                           |

C.M. 22(46).  
 
 
8th March, 1946. 

1. 
Wheat for Germany. P.M. 
Facts as in my minute.  We shd. take this risk. 
 
 
Agreed.  75.000 to be advanced from U.K. stocks in March. H.M. 
Coal to E. Germany? J.B.H. 
Only in exchange. E.W. 
Better condns in rural areas? 
 
P.M. 
Monty's expln:  refugees put in rural areas. C.E. 
We also agreed to put children out. J.B.H. 
And we've done it.  30.000 to S. Holstein E.Sum. 
Put point raised in Trib's minute.  re physical possession and export 
 
 
licence. 
 
Is now suggested tht. we supply in advance of procurement? P.M. 
Yes. E.Sum. 
Old story about 112.500 tons. 
 
  ..      ..         ..   Canadian wheat. E.Sh. 
Russian wheat for R Zones - if true tht. R. is offering wheat to France. P.M. 
Pooling will bring in Russia. E.B. 
This is politics:  there is no wheat.  Poland and Austria can get nothg. 
 
 
from Russia. P.M. 
We're also trying to swing on to R. supply of Czech., Poland &  
 
 
Yugoslavia. E.Sum. 
Is it clear tht. we shan't have to part with 150.000 until we've bought 
 
 
260.000. P.M. 
Yes. H.D. 
M/F. shd. prepare plan for bread rationing. P.M. 
Yes.  
                                             [Exit. Hynd. Summerskill. 
 

2. 
Parliament. 

 H.M. 
Pressure y'day for debate on World Food.  Will hold off as long as we 
 
can.  At least not for 2 wks. A.B. 
M/F. shd. tighten up on black-market. H.M. 
Tuesd.  Air Estimates.  P.U.S. will open:  who will spk. second? 
 
 
P.U.S. twice. C.E. 
Wed.  Police Bill.  First fight on l. govt.  Ask for Ministerial support. W.W. 
Meeting the dissidents. 
 
H.M. 
Thurs.  Army Estimates.  S/S. & Fin. Secy. 
 
Frid.  Discussion on Delegn to India.  Will P.M. speak?  
 
 
R.S.C. supported. P.M. 
Agreed. 
 
[Exit. W.W. & A.G. 

## 3. India:  Proposed Directive.

 P.M. 
They will be faced with discussing on basis of India's independence. 
 
Think it must be faced - on basis of giving them free choice in 
 
 
or out of Commonwealth. P.L. 
Para. 5(b).  C.O.S. advice still awaited. 
 
Para. 5(d).  Diff. issue, incldg. pensions of I.C.S. & I.A. personnel. 
 
 
Still disc. with Ty. E.W. 
Hope we can avoid handsome concessions on sterling balances. P.M. 
Won't arise at this state.  Para. 5(d) is only procedure. H.D. 
No Commitment by Delegation.  Negotiations must be open & free at 
 
later stage. 


[Enter.  Barnes. 

## 4. Japan:  Ship-Building.

 E.B. 
Gave particulars of bldg. already carried out in Japan since end/war - 
 
with leave of McArthur.  Read from brief. 
 
In spite of Austr. views I wd. still give our repres there free hand to  
 
 y/ 
discuss with ref. to repns & control.  I wd. not tie them down to  
 
rigid prohibn to under 2.000 tones. A. 
Austr. reply is not v. restrictive or precise.  They are against big ships  
 
but await techn. advice on smaller bldg. 
|                                                   | E.B.                                                                  | I was concerned to avoid our present troubles in Germany.  Allow J. no    |
|---------------------------------------------------|-----------------------------------------------------------------------|---------------------------------------------------------------------------|
|                                                   |                                                                       | industry & they will be a charge on us.                                   |
|                                                   |                                                                       |                                                                           |
| A.B.                                              | When do we get consult                                                |                                                                           |
| n                                                 |                                                                       |                                                                           |
| before McArthur acts?                             |                                                                       |                                                                           |
|                                                   |                                                                       |                                                                           |
| E.B.                                              | C. Comm                                                               |                                                                           |
| n                                                 |                                                                       |                                                                           |
| is now establ                                     |                                                                       |                                                                           |
| d                                                 |                                                                       |                                                                           |
| :  but only just getting under way.               |                                                                       |                                                                           |
|                                                   | Austr. is on it.  Let whole ques. be exam                             |                                                                           |
| d                                                 |                                                                       |                                                                           |
| .  But add;  "in determing.                       |                                                                       |                                                                           |
|                                                   | x/ these issues it must be clear tht. we aren't going to subsidise    |                                                                           |
|                                                   |                                                                       | Japan from B. Exchquer."   Whatever limit                                 |
| ns                                                |                                                                       |                                                                           |
| imposed on their                                  |                                                                       |                                                                           |
|                                                   |                                                                       | industry we aren't going to pay.                                          |
|                                                   | Austral. has a big voice on Comm                                      |                                                                           |
| n                                                 |                                                                       |                                                                           |
| :  & she won't pay.                               |                                                                       |                                                                           |
|                                                   | Japan must feed itself.                                               |                                                                           |
|                                                   |                                                                       |                                                                           |
|                                                   |                                                                       |                                                                           |
| A.V.A.                                            | Strengthened by Dom. support.  Can't w'draw my case.                  |                                                                           |
|                                                   | Will study E.B.'s new facts.                                          |                                                                           |
|                                                   | Cd. we obtain views of C. C.O.S.                                      |                                                                           |
|                                                   |                                                                       |                                                                           |
| P.M.                                              | Good thing.                                                           |                                                                           |
|                                                   |                                                                       |                                                                           |
| Barnes.                                           | Supported A.V.A.                                                      |                                                                           |
|                                                   |                                                                       |                                                                           |
| E.Sh.                                             | Supported E.B.  Maritime nation of 70 m. can't be prevented fr. bldg. |                                                                           |
|                                                   |                                                                       | ships.                                                                    |
|                                                   |                                                                       | But   a)  Prohibit them fr. bldg. ships for sale to other countries.      |
|                                                   |                                                                       |                                                                           |
| ns                                                |                                                                       |                                                                           |
| ) to restore J.'s economy.                        |                                                                       |                                                                           |
|                                                   |                                                                       |                                                                           |
| ns                                                |                                                                       |                                                                           |
| not objectionable now in view of world shortages. |                                                                       |                                                                           |
|                                                   |                                                                       |                                                                           |
| R.S.C.                                            | Supported E.B.  Cdn't be effective & wd. damage our trade still more. |                                                                           |
|                                                   |                                                                       |                                                                           |
| J.                                                | Supported A.V.A. - provided we don't have to feed them.               |                                                                           |
|                                                   | Other Ministers supported E.B.                                        |                                                                           |
|                                                   |                                                                       |                                                                           |
| P.M.                                              | Predominant view = in support of E.B. as at y/.                       |                                                                           |
|                                                   |                                                                       |                                                                           |
|                                                   |                                                                       |                                                                           |

## 5. Japan:  Reparations.

 E.B. 
As in memo.                 Agreed. 
 
Noted that C/Duchy wd. not handle this. 
 
Proposals to be commd to Dom. Govts. 


[Re-enter Greenwood. 

               W.W. 
 

6. 
Supply & Transport Organisation. 

 C.E. 
If Cab. can approve principles we cd. proceed when T. Disputes Bill 
 
 
is thro'. P.M. 
How will you work last para.? 
 
| C.E.                               | Dock strike.  ??                   |
|------------------------------------|------------------------------------|
|                                    |                                    |
| A.B.                               | Cttee were directed to establ. org |
| n                                  |                                    |
| .  My view is we oughtn't to do it |                                    |
|                                    |                                    |

 
Such an organisation wd. be extravagant.  If it were not, it wd. create 
 
 
more pol. diffies than it's worth. 

|                                                         | I'm not prep                                                       |
|---------------------------------------------------------|--------------------------------------------------------------------|
| d                                                       |                                                                    |
| to defend this theoretical plan - M/H. wd. be the organ |                                                                    |
| n                                                       |                                                                    |
| .                                                       |                                                                    |
|                                                         | Cdn't be done w'out Parlt. knowing.  Playing with fire.            |
|                                                         |                                                                    |
| E.B.                                                    | I helped to work this out in last war, when Gough's Army was brkg. |
|                                                         |                                                                    |

 
In strikes Govt. must not allow panic, or children or hospitals to suffer. 
 
Don't agree going to Unions & employers.  That wd. imply setting up  
 
 
a strike-brkg. organisn.  This must be offl.  All you need do is 
 
 
to prepare plans - no Union wd. object to that.  Can be done  
 
 
w'out publicity.  It is a paper scheme - like the War Book. 
 
Keep it on paper. J. 
Prefer improvised scheme when need arises. 

 C.E. 
We thght. it might be more than strike-brkg.  There might be trouble 
 
 
with extreme right or left-wing movements. H.M. 
Shoulder your responsibility as a Govt. or amend the Act of 1920. 
 
You must be ready incldg. prepn of draft Regns.  Object to discns
 
 
with employers & Unions. P.M. 
Alternative is to rely on Military in an emergency. R.S.C. 
a) 
Do we accept the principles. 
 
b) 
If so, does that involve consultn with Unions etc. 



Reason was:  wide Dpl. consultns wd. be followed by a  


leak:  & awkward pol. re-actions wd. arise, unless we cd. 


say we were acting with employers & Unions. 
 
b) is for Cab.  But a) must be laid down clearly. 

 H.D. 
Overwhelmg. objn to consultn with Unions etc., or Regional offls. 
 
Keep it to planning in W'hall. P.M. 
H.Q. business:  planning by high & trusted officials:  no consultn
 
 
with Regions.  Sealed orders etc., need not be sent until  
 
 
emergency is foreseen.  There will be time. A.B. 
I accept the Govt.'s response. for maintaining supplies etc. 
 
But what use in planning for hypothetical situation.  All depends on 
 
 
what strike & where etc. 
 
Can't conceal it if P.Q.'s asked. P.M. 
Plans must be made:  they are adaptable. 
 
|                                           | E.B.                                                                  | Plenty of warning when trouble is coming.  Doesn't happen so quickly    |
|-------------------------------------------|-----------------------------------------------------------------------|-------------------------------------------------------------------------|
|                                           |                                                                       | as R.S.C. suggested.                                                    |
|                                           |                                                                       |                                                                         |
| A.V.A.                                    | E.B.'s knowledge of Govt. machine (co-operatg. with Govt,) was what   |                                                                         |
|                                           |                                                                       | made it easy for e.g. Co-op. to work during 1926.                       |
|                                           | No need to issue sealed orders until Precautionary Stage.             |                                                                         |
|                                           |                                                                       |                                                                         |
| G.A.I.                                    | Must prepare some plan.                                               |                                                                         |
|                                           | At one point I favoured consult                                       |                                                                         |
| n                                         |                                                                       |                                                                         |
| with Unions.  On cons                     |                                                                       |                                                                         |
| n                                         |                                                                       |                                                                         |
| , don't now                               |                                                                       |                                                                         |
|                                           |                                                                       | recommend it.  Their Communists wd. blow it.                            |
|                                           | Unions have taken dec                                                 |                                                                         |
| ns                                        |                                                                       |                                                                         |
| wh. will prevent their being dragged into |                                                                       |                                                                         |
|                                           |                                                                       | genl. strike.                                                           |
|                                           | Don't print.                                                          |                                                                         |
|                                           |                                                                       |                                                                         |
| J.W.                                      | Cdn't improvise at last moment.  Need for emergency organ             |                                                                         |
| n                                         |                                                                       |                                                                         |
| - in                                      |                                                                       |                                                                         |
|                                           |                                                                       | skeleton form w'out diffused discussion.                                |
|                                           | Not only strikes.  Political organis                                  |                                                                         |
| n                                         |                                                                       |                                                                         |
| might give us trouble.                    |                                                                       |                                                                         |
|                                           | We were in doubt on final para.  Now favour no consult                |                                                                         |
| n                                         |                                                                       |                                                                         |
| .                                         |                                                                       |                                                                         |
|                                           |                                                                       |                                                                         |
| E.W.                                      | Political honesty to our supporters requires that when we've made the |                                                                         |
|                                           |                                                                       | plan we shd. publish.                                                   |
|                                           |                                                                       |                                                                         |
| P.M.                                      | I wdn't object to saying we had a plan - tho' details shd. never be   |                                                                         |
|                                           |                                                                       | publ                                                                    |
| d                                         |                                                                       |                                                                         |
| .                                         |                                                                       |                                                                         |
|                                           |                                                                       | Wdn't say there was an organisation - a plan.                           |
|                                           |                                                                       |                                                                         |
| J.J.L.                                    | Agree there shd. be a plan:  & no publicity now.                      | [Exit  R.S.C.  P.L.                                                     |
|                                           | But wdn't we need military help?                                      |                                                                         |
|                                           | The W.O. & Commands wd. need to prepare.                              |                                                                         |
|                                           |                                                                       | They want to be brought in.                                             |
|                                           |                                                                       |                                                                         |
| P.M.                                      | Not too much detail.                                                  |                                                                         |
|                                           |                                                                       |                                                                         |
| H.M.                                      | Volunteer no inform                                                   |                                                                         |
| n                                         |                                                                       |                                                                         |
| .                                         |                                                                       |                                                                         |
|                                           |                                                                       |                                                                         |
| A.B.                                      | I don't agree.                                                        |                                                                         |
|                                           |                                                                       |                                                                         |
|                                           |                                                                       |                                                                         |
|                                           |                                                                       |                                                                         |

7. 
National Health Service. 

 A.B. 
As in memo. 
 
No gt. opposn fr. l.a.'s expected.  L.C.C. (best hosp. authy) have agreed 
 
 
to support. 
 
Total compensn £66 m. for practices will be criticised. 
 
Payment for loss of remunerative time. J.W. 
I wd. be met on last point by freedom to announce apptmt of Cttee. A.G. 
Under Ty. chairmanship. 
| H.D.                             | Agreed.              |
|----------------------------------|----------------------|
|                                  |                      |
| H.D.                             | Want further consult |
| n                                |                      |
| with Ty.  { re financial clauses |                      |


                                         { re statements to be made re block 

                                       grant. 

 A.B. 
Be quick. H.D. 
Today. P.M. 
What about Parly. position? H.M. 
Lucky that C & B. Bill has dropped out. 
 
Wdn't be fatal if Sc. Bill didn't pass. 
 
Bills will be more controversial than A.B. implies.  L.C.C. support is 
 
 
reluctant & given mainly out of loyalty to Govt. 
 
Guillotine or allocn of time order will be required.  But must allow  
 
 
time for fair argument. 
 
Our time-table suggests we might just manage it.  Heathrow cd. go into   
 
 
c/Av. Bill.  Others (Annex III) might be endangered. H.D. 
Exchange Control held back only because of loan discns.  And must  
 
 
pass then. 
 
C & Wireless - pledged.  Ought to go thro'. A. 
Doms. want that Bill.  Cd. start in H/Lords. H.M. 
T.W. concerned re Atomic Energy Bill. P.M.           x/ Carry over?  Massacre of innocents argument doesn't apply to  
 
 
this Govt., which wants legisln. A. 
Can H.M. and I concert re p'mme in the 2 Houses. W.W. 
Want 2 mos.' break.  Want Bills to start in Lords.         [Exit.  E.Sh. P.M. 
H.M. to consider x/. A. 
Want to discuss with M/H.  H/Lds. arguments re vol. hospitals. 

C.M. 23(46).  
 
 
11th March, 1946. 

1. 
Germany. 

 E.B. 
Diffy. over G. level of industry.  Rpt. (to be circd) looks more  
 
 
promising. 
 
Told V. we wdn't agree to level involvg. payment by us:  & wdn't 
 
 
accept repns agreemt. to contrary effect.  Signs of change in 
 
 
R. attitude.  Diffce only on prodn of electr. industry. 
 
Pp. on Ruhr & Saar now ready for considn.  Confined myself to 
 
 
industrial side of this problem.  Fr. however concerned re 
 
 
political side too:  & Fr. Comm. now asking for united 
 
 
Germany. (on instns of Russia?). H.D. 
Need for better stats. fr. Germany. H.M. 
Will it cover duration - peace terms? 

## 2. Greece.

 E.B. 
Have stood firm on elections being held - can't help it if EAM 
 
 
boycotts them.  W'out elections we shd. drift into v. unsatisf. 
 
 
posn. 
 
Sophoulis will stand firm, whoever leaves him. 
 
Must get B. troops out - £34 m. p.a.. 
 
It was their date & part of our econ. reconstn bargain. 

General agreement of whole Cabinet with 

        this view. E.B. 
Tipped Thurs. tht. R. wd. turn on heat again thro' Union/Demcr. 
 
 
Control. 
 
It has come this a.m. - signed too by 70 Labour M.P.'s.  Urge for 
 
 
postponement of Gk. elections. 
 
Must stand firm, even against this sort of pressure. A.B. 
On F. Af. Cttee - There is another group trying to start up in opposn. H.M. 
We cd. raise this on Liaison Cttee (?) 
 
We shall have to face this issue sooner or later in Party mtg. 

## 3. Manchuria.

 E.B. 
Complt. tht. R stripping equipmt. wh. under agreemt. = repves stuff. 
 
They have bn. delaying take-over by Chinese, also in contravn of 
 
 
agreemt. 
 
W. Koo asked me if this was authd at Moscow - I said no. 
 
In Germany - they stripped the east & then demanded share of  
|                        |                                        | remaining total.  May try same again:  i.e. strip Manchuria & then     |
|------------------------|----------------------------------------|------------------------------------------------------------------------|
|                        |                                        | seek share in equipmt. in Japan.                                       |
|                        | Cab. agreed Fri. to shares of Jap. Rep |                                                                        |
| ves                    |                                        |                                                                        |
| .  To preserve our pos |                                        |                                                                        |
| n                      |                                        |                                                                        |
| I sent                 |                                        |                                                                        |
|                        |                                        | note to R. suggestg. it be left in charge of custodian - tho'          |
|                        |                                        | hasn't bn. so left it preserves the principle tht. what was in         |
|                        |                                        | Manchuria is w'in total to be divided.                                 |

 

## 4. Persia.

 E.B. 
a) 
Enlarged Az. on Caspian.  ? R. have. 
 
 
Second U.S. note - re movemt. of troops s. towards Tehran.   


Asked me to support.  Wasn't sure of facts (wh. came thro' 


U.S. Consul at Tabriz).  So contented myself with askg. for 


reply to my first note. 

 
b) 
Have agreed to support U.S. in askg. tht. it be brght. again to 


Sec-Council. 

## 5. Mr. Churchill'S Speech In U.S.A.

 E.B. 
Suggd in U.S. Press tht. we were consulted in advance.  Hope all will 
 
 
make it clear that we didn't see it in advance.  V. embarrassing  
 
 
tht. it was circulated here by M of  I. some hours before speech 
 
 
was made. P.M. 
The U.S. asked for M of  I. to handle it. 
 
But if Truman spoke in U.S., M of I. wd. normally handle it? E.B. 
Think not.  Reverse:  speech made here is circulated thro' B.I.S. in 
 
 
U.S.A.  Now if Tr. spoke U.S. agencies here wd. handle it. 
 
Anyhow, it's v. embarrassing to me.  And policy on this for the future 
 
 
shd. be made clear. J.J.L. 
In H/C. AE. sincerely denied tht. WSC. was going to spk. as  
 
 
McGovern said he wd. P.M. 
B. Embassy attd a man to W.S.C. R.S.C. 
And M of  I. handles any important speech made abroad. H.M. 
B.I.S. was handling this in U.S.:  M of I. had it, & all newspp. wanted 
 
 
it.  As a pure matter of mechanics M of I. helped them. 
 
You can't ignore the offl. posn of Leader of Opposition. 
 
And cd. you discriminate acc. to nature of the speech. 
 
Can we deny to Leader/Opposn the mechanical resources of M of I. 
 
Let us consider future policy by all means:  but all arguments aren't  
 
 
on one side. P.M. 
Don't believe M of I. cd. have refused when they had the copy.  They 
|                                                   |                                                                        | were comm                                               |
|---------------------------------------------------|------------------------------------------------------------------------|---------------------------------------------------------|
| d                                                 |                                                                        |                                                         |
| by action taken in U.S.  And I believe B. Embassy |                                                                        |                                                         |
|                                                   |                                                                        | started it, by agreeing to attack press offr. to W.S.C. |
|                                                   | It was news & M of I. handled it as such.                              |                                                         |
|                                                   |                                                                        |                                                         |
| R.S.C.                                            | Thought our policy was that M of I. was news service not Govt. organ.  |                                                         |
|                                                   | If so, it must handle all speeches which are news.  This surely was.   |                                                         |
|                                                   |                                                                        |                                                         |
| E.Sh.                                             | Why wasn't it shown to Ministers before to Press?                      |                                                         |
|                                                   |                                                                        |                                                         |
| P.M.                                              | It is a service to Press.                                              |                                                         |
|                                                   |                                                                        |                                                         |
| E.B.                                              | I will enquire into B. Emb. part in this.                              |                                                         |
|                                                   | On the merits, I have decided not to offer any comment on this speech. |                                                         |
|                                                   |                                                                        |                                                         |
| A.B.                                              | I hope E.B. won't follow this line.  We shd. have a view on this.  And |                                                         |
|                                                   |                                                                        | if we are assoc                                         |
| d                                                 |                                                                        |                                                         |
| with it in world opinion, we shd. say when we     |                                                                        |                                                         |
|                                                   |                                                                        | disagree.  We'll be pressed in H/C. to say so.          |
|                                                   |                                                                        |                                                         |
| P.M.                                              | We can say - our pos                                                   |                                                         |
| n                                                 |                                                                        |                                                         |
| has bn. made plain in Debate.  And will be        |                                                                        |                                                         |
|                                                   |                                                                        | again.                                                  |
|                                                   |                                                                        |                                                         |
| R.S.C.                                            | Cd. you add to reply to P.Q. tht. there was no consult                 |                                                         |
| n                                                 |                                                                        |                                                         |
| with H.M.G.  It                                   |                                                                        |                                                         |
|                                                   |                                                                        | has bn. specifically alleged in U.S. Press.             |
|                                                   |                                                                        |                                                         |
| P.M.                                              | "HMG. had no knowledge of contents before delivered"   I will add      |                                                         |
|                                                   |                                                                        | that.  That will cover Driberg's P.Q. to P.M.G. Tuesd.  |
|                                                   |                                                                        |                                                         |
| E.B.                                              | I want Party to stand on my last speech.  That is our policy.          |                                                         |

 

## 6. Egypt.

 E.B. 
Some elements began to play with fire - & its now beyond their control. 
 
Told on Sat. signs of great upheaval to-day.  And tht. Sidky wdn't be 
 
 
able to control.  Have therefore told mil. (after consultg. P.M.)  
 
 
they must intervene to prevent its getting right out of hand:  tho' 
 
 
to w'draw as soon as they can. 
 
King is now alarmed.  No news yet:  may pass off. 

        [Enter W.W. 
 

## 7. Parliamentary Procedure.

 H.M. 
Campion has natural bias in favour of H/C.  We are more concerned 
 
 
with Govt. 
 
a) 
Summd proposals.  G.G. recommns re supply based on assumptn
tht. H/C. has abandoned use of Supply to control finance & using 
it to watch adminn. 
 
 
Points out tht. H/C. is hampered by rule against disc. future  


legn in Supply. 
 
 
We propose reducg. 28 to 26 - elastic, not spread thro' year. 

      
 
Cd. take the risk up to 4 days - and it wd. be a concession.  Some  


gamble in it fr. Govt. pt/view.  Sessional S.O. & cd. be  


reviewed. 
 
b) 
Budget.  We agree procedure is too long-drawn out. 
 
 
Propose Rpt-stage be dropped.  Or para. c.  Rpt. Stage on all 


Bills other than Finance Bill - debate & amendmt. be  


restricted as proposed. 
 
c) 
Restns on motions for re-committal. 
 
d) 
Dy Spkr. to be empowered to accept Closure Motion. 
 
e) 
Business Cttee. 
 
f) 
Debate on "Clause stand part." 
 
g) 
Financial Resolutions. 
 
Who shd. give evidence?  P.M.  H.M.  H.M. with help of Fin. Secy. 
 
 
Recommns considered seriatim. 
 
 
Paras. a) and b) agreed. 

   ..     c).  A.B.  Right of Spkr.  to select wd. depend on 

                    Minister's statement. 

        x/      Need for formula wh. Minister must use. 

    A.V.A  V. severe restn on rights of Opposition. 

        A.B.  And if Minister doesn't use formula as at x/ 

                      Opposn wd. press in Cttee. 


d) - e)  agreed. 


g) - h)      .. P.M. 
Any support for Campion's suppressed proposals? E.W. 
Time limit for speeches.       -    No support. A.G. 
Aff. Resoln procedure.  Hope H.M.'s proposal will be adopted. 

|             |     |     | Agreed.    |
|-------------|-----|-----|------------|
| [Exit  W.W. |     |     |            |
|             |     |     |            |
|             |     |     |            |
|             |     |     |            |

## 8. North Borneo.

 H.D. 
I offered £2.1 m. - quite enough.  Really too much.  Wd. enable them 
 
 
to pay 13/=.  They were 10/2 on average over 16 years. 
 
Want it agreed we shd. not offer more than £2.1 m. 
 
I suggd arbitration - net maintainable revenue.  They know that no 
 
 
arbitrator on that formula wd. give as much as £2.1 m.  They 
      Agreed 
 
want t. of r. at large - so tht. they can bring up argument  
           x/ 
 
re HMG - failure to keep the war away from Borneo. 
 
On second point I wd. prefer to asked mil. govt. to continue 

                            to ask C.O. to put in caretaker adminn. 
 
 
Opposed to allowing Co. to go back at all. J.J.L. 
It is C. Aff. 50% Australians.  And planned for them to w'draw. H.D. 
Why not ask Austr. to let them stay. 
| R.S.C.                                            | Don't let Co. go back.                                                |
|---------------------------------------------------|-----------------------------------------------------------------------|
|                                                   |                                                                       |
| C.J.                                              | Must be either Co. or mil.  We have no sovereign rights to administer |
|                                                   |                                                                       |
|                                                   |                                                                       |
|                                                   |                                                                       |
| H.D.          y/ Accept principle tht. mil. admin |                                                                       |
| n                                                 |                                                                       |
| shd. continue.  And let C.O., D.O. &              |                                                                       |
|                                                   |                                                                       |
|                                                   |                                                                       |
|                                                   |                                                                       |

 

## 9. Transfer Of Ships To French Navy.

 
A.V.A. 
As in memo.  Paragraph 11.  (b) helps us to sell F.A.A. aircraft. 
 
Our policy = help Fr. to rebuild their defence forces. H.D. 
Agree.  Review 11(b) at end/2 years. 
 
Must get a figure for Colossus if we sell.  Worth at least £1 m. E.B. 
Agree. E.W. 
Cd. Fr. public be told tht. we are doing something to help?  Memories 
 
 
of Oran. A.V.A. 
They don't read their own Press.  We've helped with German ships 
 
 
too.  Tillon has made a most gracious speech in welcomg. our 
 
 
gift of G. ships. 
 
P.Q. in H/C. on this new deal. 

          [Enter J.W. 

 

## 10. Bulk Purchase Of Cotton.

 H.M. 
As in memo. R.S.C. 
Cttees & Control are convinced tht. Control can handle it. A.G. 
Powers? R.S.C. 
When M/Supply powers are transferred to me. J.W. 
Para. 5 of memo.  Stress this. H.D. 
Timing.  E.B. & I might inform Halifax - saying it's decided but 
 
 
askg. for views on relation of announcemt. to Loan:  i.e. date 
 
 
& manner. R.S.C. 
Wd. like to announce before I leave. 
             [Exit  J.W. 

 

## 11. Admission Of Women To Foreign Service.

 E.B. 
"Insalubrious spots" - is protectn to prevent all women being sent to  
 
 
those spots. E.W. 
No need for anxiety.  Even re Ambassadresses husbands. H.D. 
Collect publicity for this too. 

## 12. Accommodation Of Students & Tourists In 1926.

 E.B. 
Tho' schools etc. not available I'm worried about failure to provide 
 
 
for students.  Want Cttee to look for other possibilities.  Mustn't 
 
 
miss the opportunities arising to bring such people over. 
 
Cd. Cttee be given wider t. of r. H.D. 
In war visited RAF. stations.  Many no longer used. S. 
We wd. consider that - thro' Airfields Cttee. R.S.C. 
V. isolated:  accommn must be used to house those concerned with  
 
 
stores etc. E.W. 
Wrong approach - fr. accommn end.  My offls. cd. get some good 
 
 
schools e.g. Stowe if linen, rockery & staff made available. 
 
 
M/S. have the materials.  Ques. of staff.  Cd. WAAF. or ATS. or 
 
 
WRNS. be seconded? R.S.C. 
We cdn't release linen.  Bn. trying to do somethg. for hotels.  Can't do 
 
 
more than 30.000 beds - even that will w'draw sheets from 
 
 
public. P.M. 
V. unpopular to give to tourists what housewives require so keenly. H.M. 
Better wait until we can provide somethg. up to N. Am. standards. 
 
Do it imaginatively & well. 
[Enter Marquand. M. 
We have explored these possibilities - incldg. approaches to  
 
 
Universities & Schools.   
 
Concln - not good enough to try this year.  If we wait until '47 
 
 
we shd. make a better go of it. 
 
This doesn't mean no tourists in '46.  See second para. of annex. 
 
Scheme for Swedes - moored in the river eating own food! 
 
Limits on what we can do in '46. E.B. 
Ask that we shd. have Cttee retained & enlarged for 1947.  Bring in 
 
 
Service Dpts.  Use of troopships. J.J.L. 
We can release hotels before '47!  As demobiln continues. 

A.B. 
Want Cttee to consider also accommn for medical education. 
 
 
Post-graduate - which wd. attract students from overseas.   
 
 
While Berlin etc., is out. 
 
A. 
M/L. hostels. E.B. 
Use 3 organisations - W.T.A., Hol. Fellowships, Nat. Hostels Assocn
 
 
taking it on contract. T.W. 
Competing claim - accomm. German p.o.w. 
   
C.M. 24(46).  
 
 
14th March, 1946. 

1. 

Parliament. 

 
Business for next week. 
[Exit  W.W. 

Enter  C.J. 
 

 
2. 
Ethiopia. 

 E.B. 
Want F.O. to begin negotiatg. on this basis & communicate with 
 
 
U.S. Govt. 
 
This will provide sound econ. basis. 
 
Eritrea - Lake Tanza - other diffies to be discussed. 
 
2 yr. agreemt. nearly expired. A. 
Smuts will have strong views - suspicious of any trusteeship in  
 
 
Africa.  Cd. E.B. find means of letting him know what's in  
 
 
his mind. E.B. 
A. cd. send him document.      -     Agreed. 
 
I can't determine wtr. it will be single or 4-power trusteeship. 
 
 
C.F.M. handling that. 
 
Smuts may have views - but doesn't pay.  We are paying £1½ m. p.a. 
 
This scheme based on memo. circd to Doms. before Yalta. C.J. 
We support the memo.  Go ahead. P.M. 
French? E.B. 
If I bring them in, I can't get any settlement. 
 
E.Sh. 
We may have to consider oil expoitn.  Concession to Ricketts (US) 
 
 
fell thro', but others since given to U.S. companies.  Shell now 
 
 
proposg. survey in B. Somaliland.  If oil discovered  there, 
 
 
wd. be gt. advantage to us. 
 
Anglo-U.S. agreemt. - thght. speedy ratification, but now p'poned  
 
 
in U.S.  But even that wdn't prevent Shell fr. exploiting such 
 
 
a find in Somaliland. E.B. 
I will warn F.O. to keep an eye on that. H.D. 
Support memo.  Para. 9 - no commitment to further expendre.  If oil 
 
 
found in B. Som. it wd. affect present posn, wh. is tht. it is a 
 
 
drain on our resources economically.  No point economically  
 
 
in staying there. 
 
 
There may of course be strategic reasons for staying. P.M. 
Have C.O.S. considered strategic aspects? 
 
| E.B.                | They are content if demilitarised area v.3., no one else gets there.    |
|---------------------|-------------------------------------------------------------------------|
|                     |                                                                         |
| A.V.A.              | This memo. leaves open who is to be controlling auth                    |
| y                   |                                                                         |
| .                   |                                                                         |
|                     |                                                                         |
| E.B.                | And must do, for I can't decide alone future control of Italian         |
|                     |                                                                         |
|                     |                                                                         |
| J.J.L.              | C.O.S. wd. like to look at this.                                        |
|                     |                                                                         |
| E.B.                | See para. 5(b) of memo.                                                 |
|                     |                                                                         |
| C.J.                | Care in handling people if United Somalia.                              |
|                     |                                                                         |
| P.M.                | Also in para. 5.                                                        |
|                     |                                                                         |
| E.B.                | Notice of new memo. re                                                  |
| surrender of Gugsa. |                                                                         |

 
3. 
Political Resident:  Persian Gulf. 
 
 
[Exit  C.J. 

 E.B. 
As in memo.  IO want me to leave it over.  If ????? want a repve
 
 
in Persia he shd. be properly accredited to Persian Govt.   
 
 
This = 19th century survival, now quite out of date. P.M. 
Not impressed by telegram from G/India. P.L. 
Ready to change in time, not in a hurry. 
 
No evce of real trouble in Persia. 
 
V. awkward to do this quickly.  Nowhere to go:  & will cost a 
 
 
lot. £2/300.000.   Can't put all that on India. P.M. 
It's not Persia who'll object:  it's Russia. A.V.A. 
Cost £357.000.  We are thinking of shifting our man in Bahrein 
 
 
to a sloop.  And we cd. give our bungalow to Pol. Resident. P.M. 
Why not leave him in Bushire as a Consul.  And put another man 
 
 
in Bahrain. E.B. 
Immed. action - may be raised at Security Council in a fortnight. 
 
 
Agreed:  separate the functions:  put Pol. Resident in Admy. 

     bungalow:  Dpts. to work it out forthwith. 

 
4. 
Arms for Wales.

 H.M. 
This doesn't - & isn't intended to - meet the agitn for a S of S. for 
 
Wales. 
H.D. 
Consult some Welshmen? 
| P.M.                                                       | Add senior Welsh Privy Councillor?                                 |
|------------------------------------------------------------|--------------------------------------------------------------------|
|                                                            |                                                                    |
| H.M.                                                       | Believe compos                                                     |
| n                                                          |                                                                    |
| is traditional.                                            |                                                                    |
|                                                            |                                                                    |
| A.B.                                                       | Wd. be rec                                                         |
| d                                                          |                                                                    |
| with decision if proposed at time of agitation for S of S. |                                                                    |
|                                                            | Proceed v. slowly:  and put fwd. at time when no agitation procdg. |
|                                                            |                                                                    |
| J.                                                         | Putting ideas in their heads w'out satisfying them.                |
|                                                            |                                                                    |
| E.B.                                                       | Regular visits by R. Family to Eisteddfod.  Wd. have helped.       |
|                                                            |                                                                    |
| H.D.                                                       | Or residence in Carnarvon Castle.                                  |
|                                                            |                                                                    |
| E.B.                                                       | Let H.O. consider.                                                 |
|                                                            |                                                                    |

 
5. 
Industrial Disturbances.

 G.A.I. 
a)  Arranged Fords will meet to-morrow under chairmanship of 


Gould. 
 
     Union Offl. behaved foolishly in leaving when Fords asked for 


repn to be present. 
 
b)  Coventry.  AEU. took unusually quick & firm action. 
 
 
Humber workers still declining advice of offls.  Odd tht.  


Wal. Harrington shd. be one of those advising workers  


to return. 
 
In genl., situation is easier. T.W. 
Wages 72/6 betwn. 14/16.  £4.4.0. betwn. 16/18. 
 
Agricult. workers wages still 40/=. 
 
Parents not allowg. children to go into agriculture. P.M. 
Relative rents? E.Sh. 
If wages go up in engineering (as recently in docks) doubt if I can 
 
 
hold miners.  They claim they shd. be in 1st grade.  They also 
 
 
point to success of those who agitate. - and get support of Govt. 
 
Wonder if we oughtn't to face ques. of wages policy.  Can we allow 
 
 
the spiral to run freely because of relative rates.  Inflationary risk.   
 
 
Is it enough to rely on pegging c/living. E.B. 
You cd. pay miners higher wages if they were on paymt. by results. A.B. 
Much politics behind this eng. strike.  Comm. in offl. posns in Unions 
 
 
are finding it more diff. to keep changing their policy.  Firmness 
 
 
by Govt. may break posn of these Comm. leaders. E.Sh. 
4-5 scrambling for important T.U. posts.  Playing to the gallery in  
 
 
putting up v. extravagant claims.  Competitive bidding.   
|     |     | Remedy:  peg wages.    |
|-----|-----|------------------------|

 
Unless this can be done, I foresee trouble. 

 
My reply to Charter appln.  -  Objective - high prodn fr. a contented 

 
 
body of men.  I will arrange for you to come into full partnership 
 
 
with Coal Board to thrash out all ques. incldg. wages & condns.  
 
 
If they reject this, for pol. reasons, we shall have gt. diffies. 
 
Prospect now - get thro' winter w'out factories closing down.  Not 

|                       |
|-----------------------|
| n                     |
| .  Much better than I |

 
 
dared hope. 
 
But trouble with miners & I can't hold the posn. 
 
New Secretary - conflict betwn. Horner & Bowman.  But large 
 
 
section of N.U.M. are favourable to this Govt. 

 
P.M. 
Suggn of pegging wages.  Diffy:  we must raise some wages to get 

 
 
recruits. 
 
 
But then relativities come in.  And a spiral. 
 

H.M. 
I have a working party about to report on this. Many diffies. 

 
If we raise rates in unpopular industries, we must be firm with  
 
 
demands from the popular industries. 
 
Danger of M/L. conciliation offrs. doing too much conciliation & not 
 
 
standing firm enough on occasion. 
 

|                        | G.A.I.           | Can't go on with negative attitude twds. wages.  Always being pressed.    |
|------------------------|------------------|---------------------------------------------------------------------------|
|                        |                  | Better to announce we have no policy.                                     |
|                        | Cdn't we be auth |                                                                           |
| d                      |                  |                                                                           |
| to discuss with T.U.C. |                  |                                                                           |

 

P.M. 
Yes:  but only when you have the report. 

 

G.A.I. 
Or R. Commn on wages structure. 

 
Better-paid industries must be persuaded to stand still until others 

|     |     | catch up.    |
|-----|-----|--------------|

 

|    | E.B.    | State has complete control in one place - Services.  And always    |
|----|---------|--------------------------------------------------------------------|
|    |         | forced into giving increases.  Once start State fixing wages & you |
|    |         | must have sanctions to enforce.  And you can't use the sanctions.  |

 
 
And hybrid industrial system with state fixing wages, every  
 
 
dispute is a dispute with the State.  Playing with fire. 
 
Agriculture.  Need is for graded system.  And the Unions are preventg. 
 
 
that. 
 
 
Surely the Wages Bd. cd. take initiative in puttg. fwd. a scheme. 
 
 
Farmers cd. afford it. 
 
Miners wd. never have accepted Porter award if I hadn't bullied the 
 
 
Executive. 
 
Excitement about spiral is overdone. Take wages in terms of  
 
 
purchasing power.  Apart from a few low trades (bricks, gas, 
 
 
asbestos etc.) which represent only 600.000 outside agriculture, 
 
 
not ………… 
 
Told during war how badly off soldier was.  Now he complains that 
 
 
he can't drop down to civil rate! 
 
Area of dispute - demarcation - was worst & now is v. little.  No 

|     |     | demarcation dispute for 2 yrs. in bldg. industry.    |
|-----|-----|------------------------------------------------------|

 
Coventry.  Same move at end/last war.  Non-Union town right up  

|     |     | to '39 as a result.  This time bulk of men not going to have    |
|-----|-----|-----------------------------------------------------------------|

 
 
it again.  No response to unoffl. movement. 

|                                                 | High-paid occup   |
|-------------------------------------------------|-------------------|
| ns                                              |                   |
| :  v. diff. men to find, e.g. furnace-men.  Not |                   |
|                                                 | No conn           |
| n                                               |                   |
| betwn. Cov. & Fords.                            |                   |
|                                                 |                   |
|                                                 |                   |
|                                                 |                   |

 
Wage rigidity will be enemy of increasing efficiency. H.M. 
All I care is - don't drift because we're afraid to tell the truth. 
 
Don't forget how much subsidy is going into pegging c/living. 
 
Let the people know. 

 
Not advocatg. rigid control.  But don't get into posn that this Party 

 
 
daren't put any brake on wages. P.M. 
Not a ques. of rigid wage - fixing.  Need is to talk seriously to T.U.'s. E.B. 
Let M/L. get out a table showg. wage relations etc. 
 

|                            | A.B.    | Can't have full emplt. with Ty. assistance & leave wages to free    |
|----------------------------|---------|---------------------------------------------------------------------|
|                            |         | negot                                                               |
| ns                         |         |                                                                     |
| betwn. T.U.'s & employers. |         |                                                                     |

 
Some T.U.'s not doing their job.  Esp. in low-paid trade Unions 

|     |     | aren't workg.    |
|-----|-----|------------------|

 
E.B. must realise tht. if we are to rely on independ. T.U.'s we must 
 
 
make them work. 

 
All recognise pol. intervention in some indies - e.g. mining.  Thro' 

 
 
prices.  We are intervening:  but refusing to examine principles of 
 
 
our intervention.  What we shd. do is to settle those principles & 
 
 
explain them.  Examine that qua
 Socialist theory - don't try to 

 
 
combine Socialist planning with empiricism over wages. 
T.W. 
Can't go on making psychic bids. 


Agreed:  Report of working party to come to Cabinet via 

              L.P. Cttee. 

 

## 6. Albert Hall Meeting.

 C.E. 
In addn to Police arranged for Miss Nunn to go too.  Read her report. 
 
P.Q. by Piratin.  In supplementaries - might offer to read the report. 
 
Ridicule is the most effective weapon v. these people.  

 

## 1. Speeches By Persons Not Members Of Government.

 P.M. 
Have considered Cab. remit, with H.M. 
 
Deal ad hoc:  as it arises.  No further directive. 
2. 
Food Debate.

 

| H.M.    | Had arranged - 25/3, on Consol. Fund Bill.                     |
|---------|----------------------------------------------------------------|
|         | P.M. thght. diff. to do it until M/Food back.                  |
|         |                                                                |
| P.M.    | B.S. now leaving 20/3.  But can't be back for certain.  Better |
|         |                                                                |
|         |                                                                |
|         |                                                                |

3. 
Persia. 

 E.B. 
U.S. proposed to put on Agenda for Sec. Council if Persians didn't 
 
 
because believed Sov. were pressing P. not to bring it up. 
 
 
Thought better tht. U.S. shd. make the challenge esp. as we were 
 
 
parties to Treaty & had w'drawn our troops.  Also Anglo-Persian. 
 
U.S. publish their notes too soon.  But they've done it. 
 
Heard this a.m. tht. Persia are persistg. despite pressure in bringing it 
 
 
fwd. 
 
Satisfd tht. R. objective is oil - not territory or warm water.  Believe  
 
 
U.S. operators in S. Af. cd. draw off the oil fr. Baker fields - will 
 
 
M/F & P. verify this.  Wd. make boundary issue more acute. 
 
 
4. 
Egypt.


| E.B.                                              | Seen our rep                                                            |
|---------------------------------------------------|-------------------------------------------------------------------------|
| ve                                                |                                                                         |
| ( ? )   Some prospects of reasonable Treaty.      |                                                                         |
|                                                   | Trouble a) WafD   b) Russian activities:  80 persons in their Legation. |
|                                                   | Campbell on his way.  12 appt                                           |
| d                                                 |                                                                         |
| to negotiate:  not our affair to ques.            |                                                                         |
|                                                   |                                                                         |
|                                                   |                                                                         |
| ve                                                |                                                                         |
| & it will be ratified.                            |                                                                         |
|                                                   | Campbell will take prelim. talks.  Then a team of experts, mil. &       |
|                                                   |                                                                         |
|                                                   |                                                                         |
| A.V.A.                                            | Shall we hold it afterwds. if WafD not included.                        |
|                                                   |                                                                         |
| E.B.                                              | But if I decline to negotiate, I'm interfering with domestic concerns   |
|                                                   |                                                                         |
|                                                   |                                                                         |
| d                                                 |                                                                         |
| as willing to negotiate only if I cd. choose whom |                                                                         |
|                                                   |                                                                         |
|                                                   |                                                                         | A.V.A. 
Wafd have gt. resentment v. G.B. E.B. 
    ..    boycotted last Eg. election:  I can't tell E. Govt. they
 aren't  
 
 
repve. 

 
5. 
Levant States.

 E.B. 
Out of Syria by 30/4.  Reducg. in Lebanon.  Diffies with Fr. Leb. 
 
 
proposg. to put it back to S. Council.  I can't be tied to Fr. on  
 
 
this.  We cd. get out by June '46.  Reasonable date for all wd.  
 
 
be Aug.  Believe Fr. exaggerate the physical diffies of w'drawal. 
 
 
I propose we
 come out by June.     Agreed. 

 
6. 
Denmark. 

 E.B. 
Want all B. troops out of Denmark.  Planned to come out. 
 
Result = rept. tht. R. are w'drawg. fr. Bornholm.  This is result 
 
 
of Danes being able to say we are going out. 
 
V. great gain.  Clears Baltic. 
 

 
7. 
Greece.

 A.B. 
Statemt. by Gk. P.M. tht. he can't guarantee elections in free condns. 
 
If we adhere to our policy.  I suggest early statement on ships we  
 
 
have taken to protect free elections. E.B. 
V. well:  will do that.  At right opportunity. H.M. 
Can E.B. cover the point tht. there will
 be free elections w'out  
 
 
force & violence. 
 
 
Don't know how far B. troops cd. be used or Gk. police  
 
 
relied upon. T.W. 
See tht. B.B.C. give full publicity to the statement when made. 
8. 
Dejazmach Gugsa. S. 
What did he do in our war? P.M. 
Lived on Ty. R.S.C. 
How far are we commd by authd statement of behalf of B. Govt. 
 
 
tht. we wd. not hand him over.  M/State was then a member of  
 
 
the Cabinet. 

 

| H.M.                                                        | And subsequently confirmed by War Cab. anyhow.                 |
|-------------------------------------------------------------|----------------------------------------------------------------|
| H.D.                                                        | "Pos                                                           |
| n                                                           |                                                                |
| will be reviewed" means in my view re-opening whole matter. |                                                                |
|                                                             |                                                                |
|                                                             |                                                                |
| P.M.                                                        | Hand him over & say he shd. be tried.                          |
|                                                             |                                                                |
| R.S.C.                                                      | Para 4 of memo. - in support of my point.                      |
|                                                             |                                                                |
| J.                                                          | What matters is, now W. Cab. dec                               |
| n                                                           |                                                                |
| (wh. is domestic), but what was                             |                                                                |
|                                                             |                                                                |
|                                                             |                                                                |
|                                                             |                                                                |
| R.S.C.                                                      | Make a statemt. indicatg. we aren't going back on undertaking. |
|                                                             |                                                                |
| P.M.                                                        | Need we say anything?                                          |
|                                                             |                                                                |
| R.S.C.                                                      | Don't want right of asylum whittled away.  Consult O.L. ? (Not |
|                                                             |                                                                |
|                                                             |                                                                |
| E.B.                                                        | In an aside - I will see the Ch. Pol. Officer.                 |
|                                                             | I'm ready to consult A.E.                                      |
|                                                             |                                                                |
| d                                                           |                                                                |
| in principle.                                               |                                                                |
|                                                             |                                                                |

 
9. 
Brabazon I Aircraft.                                 [Enter Wilmot, Barnes & 

                                                          I. Thomas. 

 P.M. 
Two points - as in memo. A. 
M/C.A. not v. keen on project:  other Dpts are, however. 
 
View of Cttee was tht. project shd. proceed. 
 
If so, other proposals (for runway) follow.  Must be ready for next 
 
 
year, when machine finished, & work must therefore start this 
 
 
year.  Minister has power to take the land for runway alone: 
 
 
otherwise hybrid Bill, which wd. be too late. P.M. 
Anyone against continuing scheme? 
H.D. 
I was in favour before:  but disturbed re para. 9.  View is now  
 
 
balanced. I.T. 
Mustn't overstate views of operators.  Tho' not interested in earlier 
 
 
model, they are interested in model with jet engines.  Ministry 
 
 
do favour project. 
 
This won't be in service until 1950.  By then other aircraft 
 
 
development will be on the way. 
 
My Minister does
 support the project. A.B. 
Cause = pre-occupn in M/C.A. with U.S. aircraft:  now being weaned 
 
 
away. P.M. 
Then will  Minister see tht. his Dpt. & B.O.A.C. support B. aircraft 
 
 
and
 this project. 
 
R.S.C. 
Reason for puttg. this into bldg. was our concn tht. we must experim. 
 
 
with large aircraft.  Had to put Cent. engines in first: always  
 
 
meant to substitute jet engines later. 
 
We have nothg. else in prospect which cd. compete with U.S. E.B. 
Equal to anything U.S. have in contempln? R.S.C. 
Yes:  they are in fact copying it. 


Agreed:  Proceed with project. 
 
P.M. 
Then by Def. Acts or Hybrid Bill? H.M. 
a) 
Cdn't this, like Heathrow, be covered in C.A. Bill? 
 
b) 
Land Acqu. Bill wd. cover him too.  Cdn't that Bill be  


extended to cover M/Supply & M/CA. (?) 
 
 
General support for that. 


Agreed:  no hybrid Bill. J.W. 
Ques. of time.  We must start the runway this spring.  Want 
 
 
therefore to use Def. powers to acquire only runway land. 
 
 
Rest can be brought under one or other of Bills at a) or b). Barnes. 
Abolishing v. import. by-pass. E.B. 
Use the Poles. H.D. 
Wish to reserve ques. of B'tol airport.           Agreed. E.B. 
See tht. our decision re
 State airfields is said to prevent agreemt. with 
 
 
B'tol Corpn. A. 
Not so.  Anyway that ques. is reserved. 
 

 

## 10. Civil Aviation Bill.

 P.M. 
Deal first with B/Trade point. 
 
Have you considered RSC formula? I.T. 
If Cab. rules against me, I want Parly Council to consider wtr. we shd. 
 
 
rely on Cl. 3(2) dirns vice new formula suggd by R.S.C. E.B. 
These Corpns may interlock with Europ. corpns.  Some accessories may 
 
be made e.g. in Italy.  Don't want to be tied up too closely. 
 
 
V. dangerous clause. 
 
 
Support R.S.C.  Don't think of this problem wholly in terms  
|                                                        |                                                                          | of  U.S.A.                                                    |
|--------------------------------------------------------|--------------------------------------------------------------------------|---------------------------------------------------------------|
|                                                        | Don't deliver yrself. into hands of manufrs., who aren't nationalised.   |                                                               |
|                                                        | Effects on other forms of transport.  Interests wd. demand similar       |                                                               |
|                                                        |                                                                          | prot                                                          |
| n                                                      |                                                                          |                                                               |
| .                                                      |                                                                          |                                                               |
|                                                        | Awkward from F.O. point/view generally.                                  |                                                               |
|                                                        | Even G.P.O. have never bn. restricted like this.                         |                                                               |
|                                                        |                                                                          |                                                               |
| J.W.                                                   | No obj                                                                   |                                                               |
| n                                                      |                                                                          |                                                               |
| to either alternative - so long as we secure tht. Corp |                                                                          |                                                               |
| ns                                                     |                                                                          |                                                               |
| can't                                                  |                                                                          |                                                               |
|                                                        |                                                                          | buy foreign aircraft w'out perm                               |
| n                                                      |                                                                          |                                                               |
| of Minister.  Must be satisf                           |                                                                          |                                                               |
| d                                                      |                                                                          |                                                               |
|                                                        |                                                                          |                                                               |
|                                                        | tht. Minister will give dir                                              |                                                               |
| ns                                                     |                                                                          |                                                               |
| to Corp                                                |                                                                          |                                                               |
| ns                                                     |                                                                          |                                                               |
| on the 3 pts., {acquisition                            |                                                                          |                                                               |
|                                                        |                                                                          |                                                               |
|                                                        |                                                                          |                                                               |
|                                                        |                                                                          |                                                               |
|                                                        |                                                                          | prev. agreed by Cab.                                          |
|                                                        | Corp                                                                     |                                                               |
| ns                                                     |                                                                          |                                                               |
| are disposed to rely on U.S. prod                      |                                                                          |                                                               |
| n                                                      |                                                                          |                                                               |
| - as, fr. operators' pt. of view                       |                                                                          |                                                               |
|                                                        | alone, is more convenient.                                               |                                                               |
|                                                        |                                                                          |                                                               |
| P.M.                                                   | Cab. can so direct Minister at any time.                                 |                                                               |
|                                                        |                                                                          |                                                               |
| R.S.C.                                                 | On ques. wtr. Cl. 3(2) wd. be enough - that Cl. is limited to functions. |                                                               |
|                                                        |                                                                          |                                                               |
| E.Sh.                                                  | Why set up a Bd. & then hamstring them at every turn.  R.S.C. clause     |                                                               |
|                                                        | is too restrictive.  It's wider then 4(1) - for that is limited to       |                                                               |
|                                                        |                                                                          | foreign aircraft.                                             |
|                                                        |                                                                          |                                                               |
| P.M.                                                   | But that is discrimination.  That's why we widen it up.                  |                                                               |
|                                                        |                                                                          |                                                               |
| E.Sh.                                                  | Wd. rather have it on basis of preventg. purchase of foreign rather than |                                                               |
|                                                        | regulating purchase of all.                                              |                                                               |
|                                                        |                                                                          |                                                               |
| A.B.                                                   | Too much of powers of Corp                                               |                                                               |
| n                                                      |                                                                          |                                                               |
| derive fr. Parlt. itself.  More shd. be                |                                                                          |                                                               |
|                                                        |                                                                          | derived from Minister.  Otherwise conflict betwn. Corp        |
| n                                                      |                                                                          |                                                               |
| &                                                      |                                                                          |                                                               |
|                                                        |                                                                          | Minister.                                                     |
|                                                        |                                                                          |                                                               |
| P.M.                                                   | Minister shd. make the schemes - not Parlt.                              |                                                               |
|                                                        |                                                                          | Half Agreed:  Omit Cl. 4(1).  Let Dpt. consider what amendmt. |
|                                                        |                                                                          |                                                               |
|                                                        |                                                                          |                                                               |
| H.M.                                                   | I still prefer R.S.C. formula:  Parlt. will expect some explicit ref     |                                                               |
| ce                                                     |                                                                          |                                                               |
| to                                                     |                                                                          |                                                               |
|                                                        | this ques. of B. aircraft prod                                           |                                                               |
| n                                                      |                                                                          |                                                               |
| .  M/C.A. shd. want it too.  May                       |                                                                          |                                                               |
|                                                        |                                                                          | be necessary also to use this power for full emplt.           |
|                                                        | Repairs - C/A. & M/S. must consult together & Cab. can decide.           |                                                               |
|                                                        |                                                                          |                                                               |
| A. &                                                   | Endorsed H.M.'s view.                                                    |                                                               |
| A.V.A.                                                 |                                                                          |                                                               |
|                                                        |                                                                          | Agreed:  Accept R.S.C.'s formula vice Cl. 4(1).               |
|                                                        |                                                                          |                                                               |
| P.M.                                                   | Clauses 2 & 3 cover it.                                                  |                                                               |
|                                                        |                                                                          |                                                               |
|                                                        |                                                                          |                                                               |

 E.B. 
Why not decide - Delete Cl. 4(1):  & let Dpts consider wtr. any 

           amendment of Cl. 3 required to give effect to 

           R.S.C.'s formula. 
T.W. 
Clause 32.  Shd. also be power to build farm bldgs. as well as houses. I.T. 
Will do so. A. 
Why shd. M/C.A. decide if it is desirable? A.B. 
Won't do it w'out consultg. M/H.  And only when l.a. won't build. 
 
P.M. 
Take that up at Legn Cttee. P.M. 
Title:  to cover B'tol Airport? H.M. 
Legn Cttee can consider that. H.M. 
Longer than I had hoped.  Rigmarsh on pp 2-3 - cd. be done by 
 
 
subsequ. Regn.  Open to much amendment. R.S.C. 
If you appoint statutory Corpns you must define their job. P.M. 
Put it in a Schedule. I.T. 
Will consider that. 

                                   [Exit Barnes, J.W. & I. Thomas 

                                    Enter J.B.H. 
 
11. Level of German Industry. P.M. 
Preliminary discn with a few Ministers. E.B. 
Steel:  now agreed at 7.5 m. capacity.  Ty. paying now £80-90 m.p.a. 
 
This scheme shd. reduce oblign in 2-3 years to about £25 m. 
 
Have put in C.P. 115. - what our repve shd. say in Berlin, mainly to 

|                                                                |                                                       | safeguard our financial pos                                |
|----------------------------------------------------------------|-------------------------------------------------------|------------------------------------------------------------|
| n                                                              |                                                       |                                                            |
| .  Potsdam dec                                                 |                                                       |                                                            |
| ns                                                             |                                                       |                                                            |
| reached on                                                     |                                                       |                                                            |
|                                                                |                                                       | assumption of unified Germany.  And other conditions in    |
|                                                                |                                                       | para. 2 of memo.                                           |
|                                                                |                                                       |                                                            |
| J.B.H.                                                         | Attent                                                |                                                            |
| n                                                              |                                                       |                                                            |
| to followg. points -                                           |                                                       |                                                            |
|                                                                | a)                                                    | 66½  m. is not factual estimate, but political compromise. |
|                                                                |                                                       | If not realised we shd. have to demand revision.           |
|                                                                | b)                                                    | Level suggd = 1932 & that was cond                         |
| ns                                                             |                                                       |                                                            |
| which produced Hitler.                                         |                                                       |                                                            |
|                                                                | c)                                                    | Plan not agreed wth countries closely affected.            |
|                                                                | d)                                                    | Rep                                                        |
| ns                                                             |                                                       |                                                            |
| deliveries to Russia etc., are using resources (incldg. timber |                                                       |                                                            |
|                                                                |                                                       |                                                            |
|                                                                | Risk tht. R. is using this plan to weaken W. Germany. |                                                            |
|                                                                |                                                       |                                                            |

 
These are the pts. to be borne in mind.  But on the whole accept - if 
 
 
(i) 
assurance of early apptmt of central adminn - so we don't 

      have to carry too much in our Zone. 
 
 
(ii)    review if posn contemplated isn't realised. 
 
This, however, is the best we can get by quadripartite agreemt. H.M. 
We may have to accept pro tem. as best we can get.  But v. unhappy 
 
 
about this & its effects on European economy. 
 
Need to control G's war potential:  but with least harm to her general 
 
 
economy. 
 
Heading for heavy unemployment - wh. smashed Weimar regime. 
 
Financial prospects.  Nothg. for occupation costs.  We shall be £40 m. 
 
 
at least on wrong side of b) paymts. this year. 
 
Provision for elimn of synth. ammonia.  Shd. be suspended until the 
 
 
fertiliser posn is secured. A.B. 
Revision? E.B. 
Year to year. H.D. 
Share H.M.'s apprehension:  but believe this is best we can get now. 
 
 
Instns in C.P. 115 give some safeguards. 
 
Can't force R. further now
.  But we can bring it up again at any time. 
 
Delay wd. be a gt. evil. P.M. 
Agree.  We were thrust into this attitude twds repns by our Allies.  
 
 
Can't get away fr. it yet. J. 
Need for potash & timber. E.B. 
Potash is in U.S. zones. E.W. 
Packing.  Cdn't we ask R. to fetch it? J.B.H. 
Are looking into this. R.S.C. 
This is a starting-point;  & it's a much better one than we looked like 
 
 
getting. A.B. 
We are being asked to accept a situation wh. we shall find it v. diff. to 
 
 
explain to our people. 

 H.D. 
Look again at timber generally. 
Agreed. J.J.L. 
Welcome this as foreshadowing abandonment of Zone system. 


[Exit J.B.H.  Enter. C.J. 

 

 

## 12. Trans-Jordan.

 E.B. 
Want consultn with F.O. on Art. 6.  Indicatg. tht. they invite presence 
 
 
of B. troops. 
 

A. 
Art. 9(3) wd. include Newf. & N. Rhodesia.  Consult with C.O. 

 J.J.L. 
(i) 
Art. 7. Annex  cover NAAFI. supplies?           } Take up with 
 
(ii) Offrs. provided for discipline of Amir's           }  C.O. 


men shd. be paid for by him. 
        } E.Sh. 
Art. 2 of Annex.  Does this safeguard us enough? 
 
C.J. 
Yes:  as wide as we can draw it. J. 
Why appoint the Kings as plenipotentiaries for the Kings. O.S. 
The names of plenipotentiaries will be filled in. 

## 13. Cabinet Mission To India.

 P.M. 
Good wishes. 


C.M. 26(46).  
 
 
21st March, 1946. 

## 1. Unemployment Insurance:  Eire Nationals.

 A. 
a)  Soldiers.  40.000 volunteers fr. Eire to Forces.  Unfair to deprive 
 
 
them of benefits due in resp. of contribns. J.G. 
Almost all have retd.  We will ask Eire to pay as agents up to max. 
 
 
of 180 days.  Then they will be entitled to no more. S. 
7/10.000 in R.A.F.  Gratitude & future recruitment. 
 
H.D. 
Against the law for anyone not remaing. in U.K. to draw benefit 
 
 
outside.  This means specl. exemptn in favour of Eire nationals 
 
 
wh. won't be extended to other Dom. citizens Poles etc.  If they 
 
 
had stayed in U.K. they cd. have had it. P.M. 
But these men cd. not have joined up in Eire - as other Dom. citizens 
 
 
could. J. 
Can't go on paying benefit without control.  Can't say wtr. man cd. 
 
 
take work. E.Sh. 
How wd. it operate in practice in Eire?  Cd. Eire Govt. do it?  What if 
 
 
their benefit were higher than Eire benefit?  Have Eire Govt. bn. 
 
 
consulted? J.G. 
Proposed tht. Eire Govt. shd. pay as agents on proof to them of  
 
 
unemployment. 
 
Remember 7.000 of these men deserted from Eire Army. J.J.L. 
30.000 in Army:  served well:  came at risk to themselves:  friends to 
 
 
us w'in Eire.  Favour payment. A.B. 
Men from N. Ireland will get benefit.  That makes anomaly worse. E.B. 
Once Eire have accepted agreemt. their adminn work it well - that was  
 
 
my experience in war.  Worked smoothly.  If you get agreemt.  
 
 
re condns etc., the Eire Govt. wd. carry it out. 
 
Cdn't we get Eire to accept U.K. rules, incldg. provn for transfer to  
 
 
U.K. if no work there.  Opportunity for bringing Eire closer  
 
 
to U.K.  And helping U.K. man-power.  Don't miss this chance. 
 
 
Also wipe out any feeling v. the 7.000 deserters. 


Provisional decision in favour of this concession to soldiers. H.D. 
b)  Workers.  No compassionate case here - they knew what the law 
 
 
was, ran no risk & made good money. 
 
If accepted that nothg. be done for them, I wd. accept concession for 
|                                         |                                                                         | soldiers.                                                      |
|-----------------------------------------|-------------------------------------------------------------------------|----------------------------------------------------------------|
|                                         |                                                                         |                                                                |
| A.                                      | Agree that merits are diff. tho' techn. the same because contributors.  |                                                                |
|                                         | But if concession made re soldiers I wd. make no trouble over workers.  |                                                                |
|                                         |                                                                         |                                                                |
| E.B.                                    | And you cdn't settle workers w'out bringing in N. Ireland - because of  |                                                                |
|                                         |                                                                         | movemt. of labour fr. N. to South & vice versa.                |
|                                         | Wd. like Minister to be able to say, however, tht. we are ready to look |                                                                |
|                                         |                                                                         | at a reciprocal arrangement.                                   |
|                                         |                                                                         |                                                                |
| E.Sh.                                   | Can't see how you can discriminate betwn. soldier & worker.             |                                                                |
|                                         | On principle, when you've forced a man to contribute, how can           |                                                                |
|                                         |                                                                         | you default?                                                   |
|                                         | Tho' no reciprocal plan made, its diff. to deny benefit to a man who    |                                                                |
|                                         |                                                                         | has contributed.  If they remained here, benefit or work.      |
|                                         | We needed these workers as much as the 40.000 soldiers.  If an Eire     |                                                                |
|                                         |                                                                         | man knows tht. he is entitled to benefit, he won't necessarily |
|                                         |                                                                         | remain in Eire.                                                |
|                                         |                                                                         |                                                                |
| A.B.                                    | Decisive argument - if you pay them benefit in Eire, you imply they     |                                                                |
|                                         |                                                                         | can't be found work in U.K.  But we can - all over G.B.  And   |
|                                         |                                                                         | these in hypothesis are mobile.                                |
|                                         |                                                                         |                                                                |
| P.M.                                    | Give them title to benefit & they can go home merely for holiday.       |                                                                |
|                                         |                                                                         |                                                                |
| J.G.                                    | Terms proposed are not the same.  Eire Govt. say  a) they facilitated   |                                                                |
|                                         |                                                                         | recruitment of these workers, at some risk.  b) They came on   |
|                                         |                                                                         | permits:  & if when they expire are unemployed they are        |
|                                         |                                                                         | forced to return to Eire.                                      |
|                                         | We therefore sugg                                                       |                                                                |
| d                                       |                                                                         |                                                                |
| we wd. pay 75% of men's cont            |                                                                         |                                                                |
| ns                                      |                                                                         |                                                                |
| into Eire                               |                                                                         |                                                                |
|                                         |                                                                         | Unempl. Fund on cond                                           |
| n                                       |                                                                         |                                                                |
| they paid similar amount for benefit of |                                                                         |                                                                |
|                                         |                                                                         | these men.                                                     |
|                                         |                                                                         |                                                                |
| A.B.                                    | Amend b) so that they can stay on - we need them.  And then say you     |                                                                |
|                                         |                                                                         | can have benefit if you stay here.                             |
|                                         |                                                                         |                                                                |
| E.B.                                    | This wd. mean another conflict with Eire - attractg. man-power away     |                                                                |
|                                         |                                                                         | permanently.                                                   |
|                                         | In a few years' time you'd get a problem of Irish labour here.          |                                                                |
|                                         |                                                                         | Man-power argument is conclusive only for short-term           |
|                                         |                                                                         | needs.                                                         |
|                                         | This can be better solved by detailed study of reciprocal plan -        |                                                                |
|                                         |                                                                         | bringing in Eire and N.I. administrators.                      |
|                                         | Feeling in Eire turning - chance of better feeling.                     |                                                                |
|                                         |                                                                         |                                                                |
| A.B.                                    | Don't dissent from that.                                                |                                                                |
|                                         |                                                                         |                                                                |
|                                         |                                                                         |                                                                |
| P.M.                                    | Commend disc                                                            |                                                                |
| ns                                      |                                                                         |                                                                |
| at admin                                |                                                                         |                                                                |
| ve                                      |                                                                         |                                                                |
| level with Eire and N.I.                |                                                                         |                                                                |
|                                         | Take care of long-term problems as well as immed.                       |                                                                |



short-term shortage. C.E. 
H.O. and M/L. shd. be associated with these discns. 
 
H.D. 
W'draw opposn to soldiers on basis no commitment re workers. 
2. 
Parliament. 
Business for next week. 

## 3. The Nelson Pension.

 
H.D. 
Has caused comment for some time - only one left.  P.Q. by  
 
 
W. Harris - reply as in memo.  Ty. Solr. has taken it up with  
 
 
Ld. Nelson's solrs.   Ld. Nelson has no direct issue - going 
 
 
further still out of direct line.  The brother (86) has children. 
 
 
Wrong tht. it shd. now go to them. 
 
But sentiments also.  Mustn't be too clumsy.  Quid pro quo cd. be  
 
 
offered for termination of pension after the old brother.  There  
 
is an estate called Traf. House:  no artistic merit, poor repair  
 
 
& mortgaged.  But he is prevented by settlement fr. disposing 
 
 
of it.  We cd. free Traf. Estate so tht. the brother's children cd. 
 
 
sell it.  Wd. mean hybrid Bill.  Don't ask for it early.  Can I have 
 
 
authy to get it drafted when opportunity offers. 
 
In reply to P.M., this is sole surviving case of perm. pension payable 
 
fr. Exchequer. 
 
I wd. like Ty. Solr. to indicate to the solrs. tht. this is how C/E. views 
 
 
it. 


Agreed. 

 

## 4. Heathrow Airport.

 

|    | A.                                   | Decided Heathrow land powers shd. be taken in C. A. Bill.  But      |
|----|--------------------------------------|---------------------------------------------------------------------|
|    |                                      | l.a.'s & others have bn. told wht. scheme involves:  & factories    |
|    | on fringe who want to do extensions. |                                                                     |
|    |                                      | Suggest therefore clear statemt. of Govt. plan so tht. all affected |
|    | may know where they stand.           |                                                                     |

 
 
Wd. be made clear tht. it's subject of course to Parlt. 
C.M. 27(46).  
 
 
25th March, 1946. 

1. 
Persia. 
 

| E.B.                                              | No def. inform                                                       |
|---------------------------------------------------|----------------------------------------------------------------------|
| n                                                 |                                                                      |
| beyond public radio announcement - unless anythg. |                                                                      |
|                                                   |                                                                      |
|                                                   |                                                                      |
|                                                   |                                                                      |
|                                                   |                                                                      |
|                                                   |                                                                      |
|                                                   |                                                                      |
| E.Sh.                                             | Oil concessions.  Rpt. going to F.O. to-day:  copy to P.M. to decide |
|                                                   |                                                                      |

 
2. 
Greece.

 E.B. 
Stood my ground.  Rpts suggest condns as good as you can expect 
 
 
for such a country. 
 
World opinion turng. twds. me. 
 
Wd. like some vocal support fr. Labour Party. P.M. 
Rally to Party Mtg. Wed. 

 
3. 
Spain.

|    | E.B.    | I'm as anxious as Labour hot-heads to get Franco out.  But so much    |
|----|---------|-----------------------------------------------------------------------|
|    |         | trouble elsewhere tht. I can't advice Cab. to go too fast with        |
|    |         | Franco.                                                               |

 
4. 
Egypt. 
 

| E.B.                     | Moving out will put fat in fire.  Better to wait & make 2 moves.    |
|--------------------------|---------------------------------------------------------------------|
|                          | Will see P.M. re                                                    |
| effect on Defence Cttee. |                                                                     |

 
5. 
U.S. Bases. 

 A.B. 
Suggn in wk.-end Press tht. R. wd. raise Iceland issue as against U.S. 
 
 
on S. Council. 
What wd. our attitude be? 
E.B. 
Commd on that.  Warned Byrnes tht. this situation wd. arise both on 
 
 
Iceland & Azores.  Need really is civil aviation - no need for 
 
 
bases.  R.N. hadn't many bases when it policed the world.  If 
 
 
U.S. goes on claiming so many bases R. is bound to do the same, 

 
 
unilaterally.  e.g. Spitzbergen, even Faroes.  Advised Byrnes as 

|     |     | lease expired June to ask for 12 months' extension & give time        |
|-----|-----|-----------------------------------------------------------------------|
|     |     | for UNO. to handle it.  He refused this.  All I've done is to claim   |
|     |     | right for aircraft to use these bases:  but I've refrained from askg. |
|     |     | for any B. bases.                                                     |

 
Hope I've dissuaded U.S. fr. askg. for base in Azores.  I propose it be a 

|                                          |     | free for all civil av                                               |
|------------------------------------------|-----|---------------------------------------------------------------------|
| n                                        |     |                                                                     |
| base.  Have promised B. support for that |     |                                                                     |
|                                          |     | scheme - on basis of "free post".  U.S. now want exclusive          |
|                                          |     | rights in one of the 2 airfields.  Bound to provoke R. if U.S. took |
|                                          |     | one & we the other.                                                 |

 
Conflict in U.S. betwn. War Dpts & State Dpt. 
 
Doubt if Salagar will yield to that U.S. request. 
 
Iceland:  warned Byrnes tht. I. Govt. wd. lose election if it yielded 

|     |     | to U.S. request.    |
|-----|-----|---------------------|


## 6. World Food Supplies.

 P.M. 
Complained again about conference held by P.R.O. M/Food. 
 

|                             | B.S.                                                                 | Arrival in W'ton delayed.  Cereals & rice Cttees were examg. deficits     |
|-----------------------------|----------------------------------------------------------------------|---------------------------------------------------------------------------|
|                             |                                                                      | with no hope of reachg. agreemt.  Supply & demand for wheat               |
|                             |                                                                      | & rice.                                                                   |
|                             | Prelim. talk with Cl. Anderson - helpful.                            |                                                                           |
|                             | CFB. met 14/3. - full meeting.  Succeeded in maintaing. U.K. figure. |                                                                           |
|                             |                                                                      | India - definite antipathy in U.S.                                        |
|                             |                                                                      | Ex. en. countries to 1.000 cal. level.                                    |
|                             |                                                                      | France - took a/c of R. offer.                                            |
|                             | Rice - 567.000 deficit uncovered.  U.S. tried to reduce India to     |                                                                           |
|                             |                                                                      | 900.000.  I got Cl. A. to accept my figures as workg. basis.              |
|                             |                                                                      | Final alloc                                                               |
| n                           |                                                                      |                                                                           |
| to India 150. vice 200.000. |                                                                      |                                                                           |
|                             |                                                                      | Reasonable quantities for other L.F.C. countries.  But need to            |
|                             |                                                                      | get supplies fr. Siam.                                                    |

 
U.S. acreage:  no hope of further increase above 1 m. wheat:   

|                                                       |                                                                  | 1 m. soya:  1 m. corn.                                      |
|-------------------------------------------------------|------------------------------------------------------------------|-------------------------------------------------------------|
|                                                       |                                                                  | Reason:  Fear of dust-bowl cond                             |
| ns                                                    |                                                                  |                                                             |
| .                                                     |                                                                  |                                                             |
|                                                       | Ditto in Canada.                                                 |                                                             |
|                                                       | Believe, however, some increase in Can. & U.S.                   |                                                             |
|                                                       | India:  I got 140.000 & 170.000 rice.  Problem now = get enough  |                                                             |
|                                                       |                                                                  | in time.                                                    |
|                                                       |                                                                  | Indians v. displeased.                                      |
|                                                       | Will circulate full report.                                      |                                                             |
|                                                       | U.S. doing best to reduce consumption wheat 40% oils & fats 20%. |                                                             |
|                                                       |                                                                  | No hope of  their re-introducg. rationing.                  |
|                                                       | Oils & fats - disc                                               |                                                             |
| n                                                     |                                                                  |                                                             |
| at offl. level.  Thought it unwise to approach        |                                                                  |                                                             |
|                                                       |                                                                  | Ministers at this stage:  wd. antagonise officials.  U.S.   |
|                                                       |                                                                  | consumpt                                                    |
| n                                                     |                                                                  |                                                             |
| is being reviewed.  They press us to get supplies fr. |                                                                  |                                                             |
|                                                       |                                                                  | N. Guinea, Sumatra & W. Africa.                             |
|                                                       |                                                                  | N. Guinea = Austr. mandate;  & Austr. usg. supplies for own |
|                                                       |                                                                  | soap & marg. manuf.                                         |
|                                                       |                                                                  | Some temp                                                   |
| y                                                     |                                                                  |                                                             |
| red                                                   |                                                                  |                                                             |
| n                                                     |                                                                  |                                                             |
| in U.K. consumpt                                      |                                                                  |                                                             |
| n                                                     |                                                                  |                                                             |
| seems inevitable largely                              |                                                                  |                                                             |
|                           |                                                                       | because the Indian ground-nut dec                             |
|---------------------------|-----------------------------------------------------------------------|---------------------------------------------------------------|
| n                         |                                                                       |                                                               |
| - wh. I will discuss with |                                                                       |                                                               |
|                           |                                                                       | Indians on L.F.C. to-morrow.                                  |
|                           | Visit successful on the whole.  But U.S. are tiring of our continuous |                                                               |
|                           |                                                                       | appeals.                                                      |
|                           |                                                                       | Wd. be wise to lay off now.                                   |
|                           |                                                                       |                                                               |
| P.M.                      | Details of W.F.S. mtg.                                                |                                                               |
|                           | Consider now - debates, b'casts etc.                                  |                                                               |
|                           |                                                                       |                                                               |
| A.B.                      | Ground-nuts.  Exporter told me he was refusing to export because      |                                                               |
|                           |                                                                       | riots in India.  Cd. we press them to do so when Cab. Mission |
|                           |                                                                       | arrives.                                                      |
|                           |                                                                       |                                                               |
| P.M.                      | Thought they weren't short of this sort of food.                      |                                                               |
|                           |                                                                       |                                                               |
| B.S.                      | Trying to make ghee of it - I believe ground nuts wd. go thro' them.  |                                                               |

 

| A.B.                                                        | Large nos. of poor Indians do eat ground-nuts.                         |
|-------------------------------------------------------------|------------------------------------------------------------------------|
|                                                             |                                                                        |
| B.S.                                                        | I've bought ½ m. tons & can't get them.  Believe they can export them, |
|                                                             |                                                                        |
| ns                                                          |                                                                        |
| they've now got.                                            |                                                                        |
|                                                             |                                                                        |
| H.M.                                                        | Debate.  White Paper:  if it cd. be app                                |
| d                                                           |                                                                        |
| to-morrow, we cd. have debate                               |                                                                        |
|                                                             |                                                                        |
|                                                             |                                                                        |
|                                                             |                                                                        |
| T.W.                                                        | Wd. it be wise to publish W. Paper before EECE mtg.                    |
|                                                             |                                                                        |
| P.M.                                                        | Can't consider that to-day.                                            |
|                                                             |                                                                        |
| H.M.                                                        | Must decide at W.F.S. mtg. Tuesd.                                      |
|                                                             |                                                                        |
| B.S.                                                        | Mission to Argentine:  3 men (genl. supplies:  cereals, wheat:  meat). |
|                                                             |                                                                        |
|                                                             |                                                                        |
|                                                             |                                                                        |
| E.B.                                                        | Sugg                                                                   |
| d                                                           |                                                                        |
| Friday co-ordination of B. agencies there thro' B. Embassy. |                                                                        |
|                                                             |                                                                        |
| P.M.                                                        | B'cast?                                                                |
|                                                             |                                                                        |
| B.S.                                                        | After debate in H/Commons.                                             |
|                                                             |                                                                        |
| P.M.                                                        | Yes:  will consider it then.                                           |
|                                                             |                                                                        |
| E.B.                                                        | Are we talking too much re                                             |
| food?  Annoying to housewives.                              |                                                                        |
|                                                             |                                                                        |
| H.M.                                                        | Reasons  a)  diff. times ahead:  need to warn them re background.      |
|                                                             |                                                                        |
|                                                             |                                                                        |
|                                                             |                                                                        |

## 7. Security Council:  Use Of Veto.

| E.B.                                      | Attempt to clarify - "dispute"  "situation"  ques.                    |
|-------------------------------------------|-----------------------------------------------------------------------|
|                                           | R. have put in amendmts. wh. we haven't had time to consider.         |
|                                           |                                                                       |
| J.                                        | Real point = does a controversy come under Chap. 6 or 7.              |
|                                           | But Ch. 6 deals with both disputes and                                |
| situations.                               |                                                                       |
|                                           | Real need is to clear d. or s. under Ch. 6. and a threat under        |
|                                           |                                                                       |
|                                           | By this definition you don't meet the real point.                     |
|                                           |                                                                       |
| E.B.                                      | I wanted a simpler approach - dispute if originating Govt. wished it  |
|                                           |                                                                       |
|                                           |                                                                       |
|                                           |                                                                       |
| J.                                        | In deciding wtr. a ques. is to be treated under Ch. 6 or 7, regard be |
|                                           |                                                                       |
|                                           |                                                                       |
| E.B.                                      | Ready to accept views of F.O. lawyers & J. on method:  if Cab.        |
|                                           |                                                                       |
|                                           |                                                                       |
| J.                                        | Save for Art. 34 - wh. because in Ch. 6 - does raise a point of       |
|                                           |                                                                       |
|                                           |                                                                       |
| E.B.                                      | But in add                                                            |
| n                                         |                                                                       |
| to Charter there is the 4 Power Interpret |                                                                       |
| n                                         |                                                                       |
| - which is worse.                         |                                                                       |
|                                           | Also consider R. amendmts.                                            |
|                                           |                                                                       |
|                                           |                                                                       |

 

## 8. Victory Celebrations.

 T.W. 
Any power to control hotel charges? P.M. 
Let H.O. enquire.    

C.M. 28(46).  
 
 
28th March, 1946. 

1. 
Parliament. 
Business for next week. 
2. 
India. 
 
[Exit W.W. and H.M. P.M. 
Procedure for handling Cab. Mission business 
 
 
a) 
India Cttee 
 
 
b) 
Circulation of telegrams. 
 
As in my minute to P.M.                    Agreed. 
3. 
Sarawak. 
 
[Enter E.B. 

 G.H. 
As in memo. 
 
Para. 6.  This point was raised over Malaya.  Complete examn will 
 
 
take some months. 
 
 
If any delay over Sarawak, there will be diffy. 

 

|    | P.M.                                                              | Uneasy re Tuan Muda & his son.  Justice shd. be seen to be done.    |
|----|-------------------------------------------------------------------|---------------------------------------------------------------------|
|    |                                                                   | They are entitled under the will to succeed.  You are going to get  |
|    |                                                                   | that set aside - isn't it a bit much to refuse him leave to go out. |
|    |                                                                   | You say he has no rights:  I'm advised tht. he has a claim to go &  |
|    |                                                                   | state his case.  He's bn. asked by Paramount Chief to go out.       |
|    |                                                                   |                                                                     |
| J. | Wdn't it be wise to give him a sweetener - raising his allowance. |                                                                     |

 

| P.M.    | Not a ques. of that - it's his legal rights.                            |
|---------|-------------------------------------------------------------------------|
|         |                                                                         |
| J.      | If you don't give him right to state his case, give him some more cash. |

 

G.H. 
Tuan Muda himself has relinquished claim because ill-health in favour 

 
 
of his son. 
 
But if we try to over-ride Rajah, he will refuse cession. P.M. 
Is there any law in Sarawak? 

 G.H. 
He is autocrat - complete powers over Council Negri. P.M. 
But not in respect of the wills.  V. high-handed to forbid him to go. 

 
At the moment we, not Rajah, control the territory. 
 

| E.B.                                | This is a bad moment to get a cession of territory durg. mil. occup   |
|-------------------------------------|-----------------------------------------------------------------------|
| n                                   |                                                                       |
| .                                   |                                                                       |
|                                     |                                                                       |
|                                     |                                                                       |
| G.H.                                | Admin                                                                 |
| n                                   |                                                                       |
| will be handed over to civil power. |                                                                       | E.B. 
V. dangerous in those circs. to allow Tuan M. & his son to develop 
 
 
a grievance. 
 
G.H. 
The offer of cession was volunteered w'out any pressure from us. 
 
Cab. authd me to arrange the cession. P.M. 
Not asking you to abandon the idea of cession.  Don't do something 
 
 
which looks bad. 
 
Remember we control the territory now. 
 
Must see Rajah & press him to allow Anthony Brooke to go out. E.B. 
Cdn't we get them to accept an arbitn here under High Co. Judge - 
 
 
the tribunal in Sarawak wdn't give an impartial verdict. G.H. 
But it is the territory which Anthony Brooke is claiming - not the 
 
 
money. E.B. 
If he makes a fuss, anyone cd. get the ques. put to Sec. Council. 

 
Must devise some judicial means of settling this. 
 

| G.H.    | I will see Rajah & press him to allow Bertram Brooke to go out.     |
|---------|---------------------------------------------------------------------|
|         |                                                                     |
| P.M.    | Ld. Chanc. to consider first.  No action meanwhile.                 |
|         |                                                                     |
| H.D.    | On para. 6.  L.O.'s went outside their t. of r. & made a bad recomm |
| n       |                                                                     |
| .       |                                                                     |


                                                        [Enter G.T. & Dugdale. 
4. 
Building:  Shortage of Brick-workers. 

 A.B. 
Can't expect to hold posn if bldg. delayed in July/Aug. for lack of  
 
 
bricks. 
 
Recited the course of earlier discussions.  Decision by Housing Squad 
 
 
undermined by Man Power Cttee.  All this involved delay:  and 
 
 
wastage fr. brick-works equals intake.  Don't care what method 

 
 
is used so long as I get the men.  M'while best bldg. weather of 
 
 
the year is on us - & no prospect of bricks. 

|                                                  |                                                                    | Class B. releases - months ago thousands of names given & now have     |
|--------------------------------------------------|--------------------------------------------------------------------|------------------------------------------------------------------------|
|                                                  |                                                                    | come out.                                                              |
|                                                  | All the recomm                                                     |                                                                        |
| ns                                               |                                                                    |                                                                        |
| made by For. Secy. are dependent on readiness to |                                                                    |                                                                        |
|                                                  |                                                                    | come out in Cl. B.                                                     |
|                                                  | If housing is a priority, the men ought to come out as a priority. |                                                                        |
|                                                  | E.B. suggests getting bricks fr. Belgium to wake up the industry.  |                                                                        |
|                                                  |                                                                    | They can't be awakened if they have no labour force.                   |
|                                                  |                                                                    |                                                                        |
| P.M.                                             | A v. one-sided statement.                                          |                                                                        |
|                                                  | a)                                                                 | Not true tht. Services have bn. un-cooperative.  Brick-workers         |
|                                                  |                                                                    |                                                                        |
|                                                  |                                                                    |                                                                        |
|                                                  | b)                                                                 | Housing Squad scheme wdn't work.                                       |
| J.J.L.                                                      | All requests made have bn. properly considered.                      |
|-------------------------------------------------------------|----------------------------------------------------------------------|
|                                                             | On b) if you offered Cl. A. benefits to brickmakers, at least 90.000 |
|                                                             |                                                                      |
|                                                             |                                                                      |
|                                                             |                                                                      |
| A.B.                                                        | I accept that.  Don't care what methods Service Dpts. adopt, so long |
|                                                             |                                                                      |
|                                                             |                                                                      |
| E.B.                                                        | Came to M. Power Cttee in Oct. re B. releases.  This Govt. shd. be   |
|                                                             |                                                                      |
| careful not to dishonour pledges re demobilisation scheme.  |                                                                      |
|                                                             |                                                                      |
|                                                             |                                                                      |
|                                                             |                                                                      |
|                                                             | Believe it's 200.000 men affected in Cl. B. - not 90.000.            |
|                                                             | In add                                                               |
| n                                                           |                                                                      |
| to raising Class B. to 15% I brght. June dates back to May. |                                                                      |
|                                                             |                                                                      |
|                                                             | Belgium.  I believe brick trade is complacent - on both sides        |
|                                                             |                                                                      |
|                                                             |                                                                      |
|                                                             | How many affected?  1.500/2.000                                      |
|                                                             |                                                                      |
| G.T.                                                        | These are the named men.  6,000 is the real need.                    |
|                                                             |                                                                      |
| E.B.                                                        | However you w'draw fr. Army they must come in ones & two's & fr.     |
|                                                             |                                                                      |
| n                                                           |                                                                      |
| to starting this flow, wise                                 |                                                                      |
|                                                             |                                                                      |
|                                                             |                                                                      |
|                                                             |                                                                      |
|                                                             |                                                                      |
|                                                             | Can't get the bricks in time by man-power means, whatever you do.    |
|                                                             |                                                                      |
| n                                                           |                                                                      |
| .                                                           |                                                                      |
|                                                             | This man-power scheme isn't final.                                   |
|                                                             | I took 6 days on this job, when referred to me.                      |
|                                                             |                                                                      |
| A.B.                                                        | Was already looking into Belgian bricks - a) don't know what stock   |
|                                                             |                                                                      |
|                                                             |                                                                      |
| H.D.                                                        | I wd. raise no financial diff                                        |
| ies                                                         |                                                                      |
| over import/bricks next few months.                         |                                                                      |
|                                                             |                                                                      |
| G.A.I.                                                      | a)                                                                   |
|                                                             | b)                                                                   |
|                                                             | c)                                                                   |
|                                                             |                                                                      |
| n                                                           |                                                                      |
| then.                                                       |                                                                      |
|                                                             |                                                                      |
| P.M.                                                        | Put p.o.w. in tents.                                                 |
|                                                             |                                                                      |
| G.A.I.                                                      | d)                                                                   |
|                                                             | e)                                                                   |
|                                                             |                                                                      |
|                                                             |                                                                      |

 
f) 
London Brick Stewartby are willing to take p.o.w. & Poles. 

 P.M. 
Nominated men? 
 
G.T. 
3.107 to W.O. up to 15/3.  1.644 position not known. 
 
3.935 to all Services up to 15/3.  2.977 sent to M/L. by 30/11. 
 
 
Delay is in respect of men overseas. 
 
Housing Squad - 6 recommns:  all but 1st are going ahead. 
 
I wasn't surprised to hear diffy. over 1st.  I agreed at M.-Power Cttee 
 
 
tht. it cdn't be pressed.  I was told, however, that men wd. be 
 
 
directed
 to this work.  Was satisfied with that.  But the present 
 
 
plan isn't "direction" & wdn't produce the men in time. 
 
S. 
520 applied for 360 out. D. 
We cd. do this - a handful of men only. P.M. 
Why was it turned down? E.B. 
If you use power to call up for mil. service to direct to civil labour, 
 
 
disobed. will involve mil. penalties.  Can Serv. Ministers accept 
 
 
that? 
 
Durg. war we never applied mil. penalties.  The men who went to 
 
 
aircraft factories went voluntarily. 
 
Cd. you really enforce direction?  Using Army Act for that purpose. 
 
Cd. you do in peace what we never did in war? J.J.L. 
Cd. supply Pioneers for unskilled labour. 
 
Asked for 1.500 in Feb.  Asked for 3.000 volunteers for  
 
 
Cl. B. (Feb. 27th). 
 
E.Sh. 
Caution re use of compulsion. 
 
Why weren't we warned earlier of impending labour shortage in 
 
 
brick works. 
 
We shd. know how many bricks we need over 2 years. 
E.B. 
In (c) omit words "unless ….. objn" & tell Commrs. no mil. penalties


if they refuse deliberately. 


Agreed   {  E.B. to consider wording of scheme, to make it 

              {   firmer. 

              {  Rpt. to be made to P.M. re
 import of bricks fr. 

              {  Belgium. 
E.B. Shipping must be improvised - by M/T. and Admy. 
 
 
Coal from Ruhr. 
 
 
I wd. talk to Belg. Minister if Ty. & M/H. scheme were prepd. 
A.B. I will approach E.B. when I have the facts. 

 
E.Sh. 

Can I be told early what coal will be needed for bricks over future 
 
 
months. 

## 1. Greece

 
E.B. 
Elections seem to have gone fairly well - abstentions not v. heavy. 
 
Won't be overwhelming victory for Right.  If this abstentn hadn't been 
urged, left cd. have had a reasonable share in Govt. 

 
2. 

## Indonesia

 E.B. 
Asked to keep quiet - while v. Mook is in Holland.  If we use our influences 
well, looks as tho' there may be a settlement. 
 
I must see Ambassador.  We shd. be prepared to have a mtg. with the Dutch 
when they come back to report. - P.M. and I, to make it clear to Dutch 
Govt. tht. here is settlement fr. repve advises you to accept & we can't 
go on giving B. mil. support. 
 
Agreemt. here will have steadying influence on Malaya & on discns in India. P.M. 
You can promise, Amb. tht. we will have such a mtg. 

 
3. 

## Egypt.

 E.B. 
Prelim. soundings.  Strong delegation (E).  On reflection incline twds. Cab. 
Minister is head our Delegn for this discussion vice Ambassador.  As a 
defence matter, I wd. like S/S. for Air.  Wd. supply political, economic etc. advisers.  I wd. remain pro forma head of Delegation - but wd. work from here. 
 
 
Agreed: no early announcement. 

 
4. South-East Asia

 E.B. 
Telegram fr. Killearn.  Want early mtg. between P.M. & me & interested 
Dpts. to tackle procuremt. & supply in June/July. 
 
Conference successful - requirements firm - want phased shipping etc., P.M. 
Will have mtg. Tuesday morning. 

 
1. 

## Greece (Contd)

 C.E. 
When can I be relieved of my respons. for watchg. King/Greece & prevent 
him from leavg. U.K. 

 

| E.B.    | Intend to ask him to let Regent carry on pro term.                      |
|---------|-------------------------------------------------------------------------|
|         | M'while, I'll take the risk of removing any H.O. control.  He won't go. |
|         |                                                                         |
5. Malaya. G.H. 
Latest informn - Sultans will attend swearing-in to-day - No boycott 
therefore likely. 
 

 
6. 

## P.Q.B. Occupying Troops.

 H.M. 
Read draft answer. 
 
I'm being pressed for debate on pol-sitn in Europe.  Will be irresistible if W. 
Papers. 
 
H.D. & E.B. No such W. Paper shd. be publd w'out refce to Cabinet.  P.M. Supported. 
 
P.M. 
He must confine himself to promising considn. 
 
Check up on alleged promises in H/Lds. 

 
1. 

## Greece (Contd)

 E.W. 
70% poll.  a peaceful way in wh. elections conducted & personal triumph for 
E.B., who stuck to his guns v. criticism. E.B. 
People in Europe are tired of disorder. 


[Exit  Sargent. 

 
7. 

## Sarawak.

 J.                      B. Brooke may write to Tunis.  Can be awkward for us. 
 
New constitution, if sound, cd. over. ride the wills.  But not clear it is sound.  
Clear tht. there'll be a bad row unless Bertram B. allowed to go out & state case. 
 
 
Wants to take adviser with him.  Wd. abide by result, whatever it be. 
 
We shd. avoid being accused of sharp practice. 
 
Propose - get Bertram B. (preferably with Antonym) to go out, if he 
undertakes to abide by result. G.H. 
Seen Rajah, Sat. with Pam's consent.  If wish of H.M.G., he will agree to 
Bertram going out with Pollard.  He does, however, object to Antonym. 
 
 
There was diffy. when he was in Sarawak before. 
 
This a.m. recd. from his P.S. copy of or. intimate. tht. he will resign because 
of agreemt. to let Bertram go.  Rajah still stands by his Sat. Decor J.J.L. 
Worth while to remind Brooks tht. m'while we are supplying troops for the 
mil. admen. 
 
 
G.H. 
Done this - on Sat. 



Agreed:  allow Bertram to go out, as proposed. P.M. 
What official have we there? G.H. 
Someone of Col. Secy status. G.H. 
Not subject to Parly. ratifications? 


Agreed - no.  Further consn. 


[Enter W.W. 
8. 

## Select Committee On Members' Expenses.

 H.D. 
a) Good Cttee. Ques: full-time or not - some of each, props may vary from 
time to time.  Proposals not excessive. 
 
Tax-free proposals are not much ahead of current practice. M.P. now 
allowed to claim up to his £600 - & many are claiming £500. 
 
Cost: £228.000.  Worth paying that for efficient services by M.P.'s. 
 
b) Ques. of Ministers under £5.000.  Grievance was £1.500 memo - Junior 
Ministers & Whips.  Tho' same expenses as ordinary Member, they can get no income-tax relief.  Support proposal of Rpt. tht. Ministers in H/C. under £5.000 shd. have tax free expense allowance of £500.  This is simple solution & in line with proposals for ordinary Members.  Wd. 
correct present posn under which Member loses money on become. a 
whip.  Cost £22.500. 
 
Legn required for b). - not for a). H.M. 
In Finance Bill? H.D. 
Doubt it - because it's an expenditure. A.G. 
If Conservatives agree, no diffy. in getting it thro'. H.D. 
Yes - hope this Session.  Don't retrospect it.  Start from 1/4/46.  Agreed. 
 
c) The "awkward Shapes".  The tax-free £500 gives them in effect another 
£1000.  This cd. be examined at leisure.  Omit it fr. this legn. E.Sh. 
d) Anomaly if they get more than Cab. Ministers. H.D. 
I wd. consider Cab. Ministers, who were outside t. of  r. of Sell. Cttee. 

|                                                                   | e) Agreed.                                |
|-------------------------------------------------------------------|-------------------------------------------|
|                                                                   | f) Hesitate.  Dec                         |
| n                                                                 |                                           |
| between Speaker & C/Each.  Must be clear tht. Cttee is            |                                           |
| advisory.  On this basis I can accept this.                       |                                           |
|                                                                   | g) Glad Cttee haven't gone in for frills. |
|                                                                   |                                           |
| Telegraph suggestg. postponement until after next Genl. Election. |                                           |
|                                                                   |                                           |
| n                                                                 |                                           |
| - believe they will support.                                      |                                           |
|                                                                   |                                           |

 P.M. 
As we have to amend M/Crown Act. I wd. favour dealing with  (c) if Open 
agreemt. can be secured.  egg. M/Pensions & Asst. P.M.G. 
 
W.W. 
Opposn do agree.  But think tax-free £500 may be argued.  Might be better 
not to have a lump sum but to allow individuals to prove their expenses. H.D. 
Administratively more inconvenient. E.Sh. 
But our figure will create anomalies - as betwn. London:  country member. A.B. 
Financial advantage of being London member is undoubted:  but can't earn 
it by differential allowances. E.W. 
The net of Cab. Minister is only just over £2.200.  And he gets no 
allowances for expenses. P.M. 
Anomalies of high salaries. H.D. 
On merits arguments for giving Cab. Ministers the £500 allowance. 
                X/ But tactics.  Better to have Opposn  to make that suggn:  if they did, we cd. 
accept it. E.Sh. 
I wd. prefer to allow individual claims. 
 
This makes a dints betwn. M.P.'s and private citizen.  If you allow them to 
prove a claim you put them on same basis as others.  Then the Cab. Minister cd. enjoy the same privilege. 
 
On (d) - especially if you reject my first suggn - I wd. put in plea for 
expenses of Ministers when they go around the country.  One is always out of pocket because of need. for entertaining.  Present rates don't 
even cover cost of the hotel room. H.D. 
I can meet (d), administratively.  If Cab. ask Ty. to see that Ministers get 
reasonable expenses. A.B. 
Spoke v. E. Sh's suggn. 
a) Diff. for I.R. is estimate: & awkward for M.P. to have to argue his 
claim with I.R.  How can I.R. say a miner shd. live at one rate and a Tory at another. 

b) Everyone is familiar with part remuneration by expenses (tax-free). P.M. 
Cttee recommend it - no opposition to it. - why not accept it? H.M. 
Was worried.  Tory Press have welcomed it.  But what will public opinion 
think in the end?  Do nothg. for Cab. Ministers - we apptd Cttee on 
basis tht. they were excluded.  We shdn't volunteer extendg. their 
recommns.  Don't like legislators who vote taxation to enjoy exceptn 
from it.  I wd. have preferred to see Cttee recommend £350 or £300. 
|                                                                    | If you adhere to the recomm                                             |
|--------------------------------------------------------------------|-------------------------------------------------------------------------|
| ns                                                                 |                                                                         |
| , I wd. prefer to see M.P.'s claim & prove their                   |                                                                         |
| expenses or adopt a £300 lump sum vice £500.  Fear tht. country    |                                                                         |
| members will show they are worse off than London and ask later for |                                                                         |
| more.  Fix it at £300 & there is some margin for that.             |                                                                         |
|                                                                    |                                                                         |
| E.B.                                                               | Why say £1.000 of which £500 = tax-free allowance?                      |
|                                                                    | Why not have existg. salary of £600 and add tax-free allowance of £400? |
|                                                                    | Workers will claim similar treatment.                                   |
|                                                                    |                                                                         |
| H.D.                                                               | I'm willing to put it as salary of £500 + allowance of £500.            |

 

T.W. 
Provincial member won't pay any income tax on £500. 


  
 
Accept substance & Ctee of Ministers to consider presentation. 


C/Exch. Home Secy. & Chief Whip. 
 
 
Approval for x/ above. 



[Exit W.W. 
 
[Enter Att. J.B.W., B.S. 
Barnes 

## 9. Food:  Draft White Paper

 T.W. 
Para. 41.  Wd. rob us of bargaining power with C.F.B. B.S. 
Must have some facts re fats. H.D. 
And has there bn a parallel induction in N.America? B.S. 
Not in U.S.A. 
 
 
Agreed:  amend as shown in my copy. T.W. 
Must we have para. 52-54? P.M. 
Yes. S. 
Para. 67.  Too rosy a picture.  They have refused to come out of R.A.F. T.W. 
Only 5.000 are out. 
 
 
Approved.  Publish first thing Tuesday. 


[Exit: B.S., J.B.H., A.H., 


[Barnes 


[Enter Listowel 

 
 
10.   Re-organisation of B.B.C. Home Services. 

 
H.M. 
As in memo. 
 
Cab. shd. be aware of possible criticisms. 
 
Must be a White Paper. 
 
Parlt. must expect some limitns as cost of keeping U.K. on Europe's air. A.B. 
Position of Wales is preserved? H.M. 
Yes. 


Agreed. 


[Exit Listowel. 
 
11.

## The Social Survey

 H.M. 
Relict of Cooper's Snooper. 
 
M/H. have used for estimating tastes of nonservices on M/H subjects. 
 
Consensus of user Dpt. opinion is in favour of retaining it. 
 
Propose it be attached C.O.I. P.M. 
Dangerous.  C.O.I. will  have diffics anyway.  This is a vulnerable spot - why 
risk it. 
 
Much of these enquiries cd. be done thro' commercial agencies. E.Sh. 
Why does H.M. take such a poor view of this? 
 
Closely related to economic planning. 
 
We shd. get as much informn as we can about views of people on Social & 
economic ques. e.g. dietetics: factory operations 
 
Wd. prefer to keep it & develop it. 
 
H.D. 
Much money being spent on this.  M/F want £132.000 next year on this. 
 
                                      B/T. want £35.000 
 
 
Kind of thing. The £63.000 isn't the total by any means. 
 
If this is contd M/F and B/T. shd. be brought in to this. 
 
Doubt if there's much in this. E.B. 
Caused much trouble during the war - among work-people. 
 
Had to ask Cab. to stop it:  & I called Harrison up into Army. 
 
Most of this informn is in possessn of Dpts. already. of. industrial health:  
Knowledge of Factory Dpt.      That's where I relied on getting informn 
during the war. 
 
 
T.J. cd. get me any informn  I wanted thro' organisations of his own.  I 
discounted there pseudo - scientific services of informn. E.W. 
Valuable services. 
 
Commercial agencies will bring you the informn they want you to have. 
 
 
Postponed:  H.M. to pre-digest & bring it up again. 

1. Parliament. 
 
Business for next week.  Refce to Dom. P.M.'s mtgs.  Hours of sitting, as in memo. 

 
2. 
Prime Minister's Visit to Australia. 
 

| P.M.                                                  | Invited to go (with M   |
|-------------------------------------------------------|-------------------------|
| rs.                                                   |                         |
| A.) to Austr. (& N.Z. afterwas):  end/July.  Disposed |                         |
| to accept.                                            |                         |
|                                                       |                         |
|                                                       |                         |

 
     1.     Parliament (cont

## D).

 A.B. 
Will Health Bill be taken week after next. 

 

| H.M.                       | Aimg. to complete Cttee Stage by 4/7.  Oppos             |
|----------------------------|----------------------------------------------------------|
| n                          |                                                          |
| askg. for longer interval  |                                                          |
| before 2                   |                                                          |
| nd                         |                                                          |
| Rdg. of Bills.             |                                                          |
|                            |                                                          |
| nd                         |                                                          |
| R. before or after Easter. |                                                          |
|                            |                                                          |
| A.B.                       | Want 2                                                   |
| nd                         |                                                          |
| R. before Easter.          |                                                          |
|                            |                                                          |
| H.M.                       | No diffy about time - it's ques. of handling Opposition. |



[Exit W.W. 
 
3. 
Leakage of Information. 

 A.B. 
Parly. Labour Party Mtg y'day - remark made by me reported in Ev. 
Standard. 
 
Said at opening M.P.'s approached for paras. on payment. 
 
V. serious breach of payment. P.M. 
Mention at next Party Meeting - stringently. 

 

[4. Iron & Steel Industry.] P.M. 
 Leakage: in "Times". 

 

| E.B.                        | Observer leak on Ruhr problem.    |
|-----------------------------|-----------------------------------|
| Formal investig             |                                   |
| n                           |                                   |
| into simultaneous leakages? |                                   |
|                             |                                   |
| J.                          |                                   |
|                             |                                   |
| P.M.                        | Never get anywhere with that.     |

 
 
Let Jowett enquire into these. 


[Enter J.W. 

## 4. Future Of Iron & Steel Industry.

| J.W.                                                                   | As in memo.  Recommend nat                                                      |
|------------------------------------------------------------------------|---------------------------------------------------------------------------------|
| n                                                                      |                                                                                 |
| of central core - as Minister responsible for                          |                                                                                 |
| Supply, but recognise that there are wider conc                        |                                                                                 |
| ns                                                                     |                                                                                 |
| for Cab.  e.g. because                                                 |                                                                                 |
| will involve v. complex v. diff. tasks.                                |                                                                                 |
|                                                                        | An early decision - & announcement - essential + financial arrangemts. to       |
| ensure that 3 most urgent development schemes can proceed w'out        |                                                                                 |
| delay.                                                                 |                                                                                 |
|                                                                        |                                                                                 |
| P.M.                                                                   | First consider timing.  Danger of overloadg. machine.  After leg                |
| n                                                                      |                                                                                 |
| comes                                                                  |                                                                                 |
| admin                                                                  |                                                                                 |
| n                                                                      |                                                                                 |
| .  Coal - insurance - transport - gas & electricity.  Risk of          |                                                                                 |
| break-down of admin                                                    |                                                                                 |
| n                                                                      |                                                                                 |
| machine if this Bill taken into 2                                      |                                                                                 |
| nd                                                                     |                                                                                 |
| Session.  On                                                           |                                                                                 |
| that ground favour takg. this in 3                                     |                                                                                 |
| rd                                                                     |                                                                                 |
| Session.  Tho' that raises diff. ques                                  |                                                                                 |
| of preventg. stagnation.                                               |                                                                                 |
|                                                                        |                                                                                 |
| H.M.                                                                   | From Parly. angle I wd. prefer 3                                                |
| rd                                                                     |                                                                                 |
| Session.. But then must find a satisfy.                                |                                                                                 |
| means of ensuring that development continues.                          |                                                                                 |
|                                                                        |                                                                                 |
| H.D.                                                                   | Important to decide & announce - but no commitment whr. we take it next         |
| Session or followg.  No promise yet given when we will proceed with    |                                                                                 |
| electricity or gas.                                                    |                                                                                 |
|                                                                        | Finance - discussed with Catto & Hyndley.  We can find the money.  If we        |
| take a firm line, the industry may be co-operation.  The 3 big schemes |                                                                                 |
| are ready to proceed.  R. Thomas wd. like to go ahead.  Believe        |                                                                                 |
| Colville scheme for Scotland is ready too. - and Dorman Long on        |                                                                                 |
| Tees-side. Think Govt. shd. help with the money.                       |                                                                                 |
|                                                                        |                                                                                 |
| E.B.                                                                   | To avoid stagnation - Any reason v. apptg. now a strong Control Board?          |
| Process by agreement on Fed                                            |                                                                                 |
| n                                                                      |                                                                                 |
| (no  powers) v. slow.  Unions are ????                                 |                                                                                 |
| about this.                                                            |                                                                                 |
|                                                                        | Serious situation in tin-plate - because young men won't work the old           |
| process.  Need therefore to get ahead with new strip-mill in S. Wales. |                                                                                 |
|                                                                        | If you announce you will nationalise & tht. m'while you are going to appoint    |
| a strong Control Board. - no inconsistency.  Risk = stagnation thro'   |                                                                                 |
| incompetence not thro' opposition.                                     |                                                                                 |
|                                                                        | V. good younger men on both sides of this industry.                             |
|                                                                        | Even if you went for big Bill in 2                                              |
| nd                                                                     |                                                                                 |
| Session, it wdn't be thro' until 1948; and                             |                                                                                 |
| we can't wait until then.                                              |                                                                                 |
|                                                                        | German p.o.w. cd. lay the site of the new strip. mill.  The existg. one at Port |
| Talbot was so built.  Or Italians on wages.  Or Poles.  From man.      |                                                                                 |
| power pt. of view, gt. advantages.                                     |                                                                                 |
|                                                                        | And thro' Control Board you may evolve yr. machinery for running a              |
| nationalised industry.                                                 |                                                                                 |
|                                                                        |                                                                                 |
| A.B.                                                                   | Support E.B.                                                                    |
|                                                                        | At Cardiff found vacancies in tin-plate advert                                  |
| d                                                                      |                                                                                 |
| by M/L.  The men won't go                                              |                                                                                 |
| into it.                                                               |                                                                                 |

 E.B. 
If Control Bd. Establd - v. introduce electrolytic method in tin plate you can 
save much import of time - 1/21b vice 2lb. 
 
J.W. 
Wd. take 12 months fr. now to define what you are to take over. 
 
Welcome E.B.'s suggn. 
 
But essential to say we are going to nationalise. E.Sh. 
Cd. we not have settled policy before timing or interim arrangemts. 
a) 
Sound note of caution - as at Socialisation Cttee - formula or incantation 
"natn" is not enough.  Must know what is the scheme. 
 
What part of the industry is to be taken over?  How provide for severance?  
J.W. needs 12 months to define area for natn.  That confirms my fears 
as expd at Soc, Cttee.  Composits undertakgs. - G. Keen & Nethfold 
e.g. - producg. also engineering products of various kinds.  Had trouble over severance with coal - which seemed easy. 
 
Conclude = more time to consider what part of industry shd. be natd
b) Coal = indigenous product.  R/ways etc., also. 
 
Here, however, dependent on import of raw materials. More diff. therefore 
to nationalise the industry. 
Interim arrangemts.  If you make an announcemt. you must have only 
c) Coking coal - as in memo.  Seems to be O.K. for 50 years. d) 
 
 
short interval before procedg. to take over.  In coal, we provided for 
interim period development:  but those i/c industry reluctant to 
undertake it. 
 
Also, uncertainty among employees (esp. higher ranges) who lose all 
 
 
interest in industry.  Has happened in coal.  The longer the interim 
 
 
period  the greater the diffy. 
Wd. like to see E.B.'s suggn on paper before we decide. 
e) 
Remember you had control system for coal durg. war - & trouble therefore 
of control w'out ownership. 
Must see the end of the road before we speak about the beginning. 
Think we shd. nationalise this in the end.  But not same demand for this as 
for coal. 

| E.W.                              | There is on Tees.                                                           |
|-----------------------------------|-----------------------------------------------------------------------------|
|                                   |                                                                             |
| E.Sh.                             | Because they assume more emplt.                                             |
|                                   |                                                                             |
|                                   |                                                                             |
|                                   |                                                                             |
| P.M.                              | Danger about the interval.  Must be clear statement of precise & detailed   |
| intention.                        |                                                                             |
|                                   | Agree also with E.Sh. that E.B.'s sugg                                      |
| n                                 |                                                                             |
| needs exam                        |                                                                             |
| n                                 |                                                                             |
| .                                 |                                                                             |
|                                   |                                                                             |
| T.W.                              | Supported E.Sh. - must know what we are going to nationalise.               |
|                                   | E.B.'s suggn: wd. Control Bd. be able to proceed with rationalisation while |
| preparing for X/ nationalisation. |                                                                             |
|                                   | Agree there is now stagnation in mines.                                     |
|                                   | Wd. prefer X/ for time being.                                               | J. 
Supported T.W.  In last Govt. I made investign.  Duncan did nothing.  
Wright was hopeless.  But agree must be short interval between announcg. & doing. 
 
Wd. therefore prefer a Bd. (to do x/) w'out preliminary promise to 
nationalise. E.W. 
Against.  No industry made subject of closer investigation for natn.  Not a 
step in the dark.  Wd. request delay beyond next Session.  Much work 
done; & natn expected. 
 
Statement shd. not be merely fulfilment of election pledge - but on basis of 
business like proposition. 
 
A.B. 
 "Diffies" will increase with passage of time.  Vertical integration & 
composite firms will increase.  These arguments for p'poning are arguments for never nationalising at all. P.M. 
No.  Point is: must be clear in statement what
 you are going to take over.  
 
 
Argue to ques. of interim period. A.B. 
V. well, I will.  The analogy of control w'out ownership in coal durg. war is 
inapt - because here you will have pledged yourself to Natn. 
 
Wd. accept E.B.'s proposal:  but do it quickly. H.D. 
Further statement in views of E.Sh.'s statement. 
 
Definition of area for natn: not so diff. to decide what to say. 
 
Gather J.W. can get better definn if he can discuss with industry on basis tht. 
central core will be taken over.  Essence wd. be tht. we say at once we 
are going to take that over. 
 
A possible (tho' inferior) alternative wd. be for J.W. on his own to submit 
quickly his own definition. 
 
This Govt. can't funk nationalising this industry, throughout this Parlt. E.Sh. 
But J.W. said 12 months to get a complete definition. J.W. 
Definition - fairly complete in para. 13.  Shorter one para 20.  The central 
core can be easily defined.  What will take time is defining exact line of boundary, plant by plant.  You can't get a more precise definition w'out discussions with industry. H.D. 
Hope we can decide to-day to make announcemt. includg. definite decision 
to natn.  Stagnation - we've got it now. 
 
Development areas.  The 3 schemes are in those areas. 
 
Economic power:  we don't begin our Socialist advance until we have 
collared coal & steel.  Public utility stuff wd. be done by a capitalist Govt. E.B. 
Capital cost in this industry is so great that I doubt if private enterprise can 
carry on with it.  ???? - £11M. financed at 5-6 1/2%.  We must find 
means of financing steel at around 2%.  Even Corby was financed at 
41/2% - and that is too much. 
 
Argument for this is business, not politics. 
 
With a Control Bd. - why not rest new mills in the Bd. not the companies - 
publicly owned from the outset.  You'll attract best managers to new plants. 
 
Catto knows this v. well. 
 
Many old firms grew up as family business - but no family in there now & 
no attraction to outsiders either.  Natn only remedy. 
 
No money in the trade for research.  We've had to buy results of U.S. 
research. 
 
 
All Duncan did, under tariff, was to pay dividends to redundant firms. 
 
No announcemt. until interim arrangemts. worked out, after discn  with Catto 
& some members of Steel trade. P.M. 
Work out Control Bd. 
 
Announce it:  say it will work out natn in detail & carry on m'while with 
rationalisation. H.D. 
May E.B., J.W. and I work our means of announcg. this quickly? P.M. 
Yes.  Plus Jowitt.  To Cab. next week, if possible. 


[Exit J.W. 


[Enter G.T. 
 
5. Victory Celebrations: Order of March C.E. 
Origins C.O.S.  My Cttee doesn't dissent in principle. 
 
a) Comment.   No provn for E.E.B. on dais. 
 
P.M. 
 I talked to him.  He is doubtful.  Civil Service not represented in March. 
 
 
He wd. be only civilian save Home Secy. & P.M. & Winston. 
 
 
Might be others - e.g. other Ministers. C.E. 
He  held office longer than any Minister. P.M. 
He feels this is a military affairs. A. 
This = demonstration of country's effort.  Includes civil as well as military 
side.  I suggd a section of housewives.  If that is conception, head of Civil 
Service shd. be there. A.B. 
Hope Cabinet will be exempted from attendance? G.T. 
This is only Saluting Base: & room only for 15. E.B. & A. 
Supported inclusion of E.E.B. 
   
b) 
C.O.S. worked this out w'out consultn. 

 
         I think W.S.C. shd. ride with C.R.A. in first carriage - not in second     
with Pug. 
 
 
I shd. go in second carriage. 
Agreed. 
 
c) 
C. O.S. have ignored Qu. Mary & other Members of his Family. 
 
         I intend to take H.M. Pleasure. E.B. 
What about Diplomatic Corps? P.M. 
This is only the dais. A. 
d) At least one person [on dais] representg. each Dom. and India. P.M. 
They will be behind the dais. 


Ministerial Cttee shd. examine all these suggns. 


[Exit G.T. 
 
6. Council of Four:  Publication of Records. E.B. 
Propose to agree.  Not to consult Italy 
 
 
Agreed. 
7. Food: Reduction in Cheese Ration
 P.M. 
B.S. will announce to-day reduction in cheese ration. T.W. 
Ham-handed P.R.O. - talk of more butter etc., when E.E.C.E. confce meets. 
 
E.B. 
Don't let B.S. announce this to-day. 
 
 
General talk of inefficiency of M/Food. 

1. The Budget. 
 
 
2. Atomic Energy. 

 P.M. 
Must introduce a Bill.  U.S. & Can. will be legislatg.  Propose introduce & 
get 2ns Rdg:  but prob. leave it to be introduced again next session. A.B. 
Believe M/H. have to legisl. on radio-active effects. P.M. 
Ask M/Supply: see how it goes in. 
 
 
3. 

## U.S. Demand For Bases: Azores.

 

| A.B.                                                              |
|-------------------------------------------------------------------|
| seek free-for-all civil aviation base.  V. secret.  V. satisfied. |

 
4. 

## Fascism.

 J. 
Summd report of Cttee. 
 
Arnold Leese: A.G. is considg. prosn for sedition qua anti-semitic campaign.  
He is likely to decide to prosecute. P.M. 
Don't volunteer a statement - Agreed. H.M. 
Para. 4  H.O. tells me there's good evce: I wd. like to bring this out, in 
separate P.Q. 
 
H.D. 
H.O. told me there was quite hard evce . I wd. favour statement.. 
 
E.Sh. 
On Cttee. I doubted whr Mosely put much of his own money into Party.  He 
must have got it from somewhere. A.B. 
£65.000 from Nuffield - thro' Postal! 


[Exit O. Sargent 


[Enter G.T. 
5. 

## Production Campaign: Results Of Conferences.

 G.A.I. 
My experience (Leeds) - ques. are valuable.  Recommend therefore continue 
campaign: prepare W. Paper to answer ques. H.M. 
Pamphlet by C.O.I. - not W. Paper.   

 
G.A.I.  
No objn .  Let central Cttee under L.P. consider means. H.D. 
Little new in what I said.  Steering Cttee have a draft already. 
 
P.M. 
Par. 3(iv) - targets - is dangerous. G.A.I. 
I was doubtful. G.T. 
Not an ordinary W. Paper. 


[Exit G.T. 

6. March of Time Film

 

H.M. 
March of Time - "Britain Faces Peace".  Come to see me = & gain their 
help. 
 
Can't put C.O.S. on this.  If Cab. agrees, however, I will arrange for 
Ministers to help. A.B. 
Don't let them release w'out approval. E.B. 
Don't bring F.O. in to this. 

## World Food Situation

 P.M. 
Indications tht. U.S. are going back on allocations & seekg. to put that on us. 
a) Hoover thinks food shd. go into Poland - anti-Russian. b) La Guardia for U.N.R.R.A. - Kaliano c) Dislike of India. Cereals & oils & fats. E.B. 
Informtn last night.  Now telegrams from Halifax. 
 
Read them out.  Tues 2271-73. 
 
These don't mention bread rationing - threatened by La G.  We thought last 
night that on this our line shd. be "we will ration if Canada & U.S. will do so." 

 B.S. 
No faith in any guarantees from U.S. 

|                                                                        | From U.S. only 208.000 t of which 100.000 received.  This is all L.F.C. was    |
|------------------------------------------------------------------------|--------------------------------------------------------------------------------|
| to get fr. U.S. Canadian supplest to U.K. are to be halved over next 3 |                                                                                |
| months.                                                                |                                                                                |
|                                                                        | Must save 100.000 t. for bldg. up stocks v. the winter.  By 30/9 I must have   |
| 900.000 t in stock.  Must find 600,000 t betwn. now and 30/9.          |                                                                                |

 P.M. 
 Consumption p.m.?   
 

B.S. 
250.000t or 41/2M. p.a. in U.K. 

 E.B. 
In current world situations, how can I justify 2 months stock replenished at 
this rate. B.S. 
750.000t was minimum pre-war - when you cd. rely on rapid replenishment. P.M. 
But face posn as seen from U.S. - other countries with much lower stocks. B.S. 
Small countries find it easier.  Belgium is comparable & she wants 7 wks. P.M. 
But won't get it.  If some countries have v. small stocks, can we justify ours? A.B. 
Can further transport guarantees be obtd. for rapid replacement. B. 
Cost of interruptg. import/export  p'mmes. A.B. 
Problem is general, not ours only: if transport pooling can also be arranged. B. 
No readiness h'to to pool shipping.  U.S. promised 1M. this month: and 
achieved only 1/2M. E.B. 
But we are trying for firm guarantees.  Ques. is what price can be paid for 
firm guarantees.  If we make a firm offer, U.S. will largely follow us.  

What condn can we make - can we run a risk at 8 wks. supply if firm 
undertakg. we will be maintained at that.  We now have 11 wks. incldg plant.  Put the balance in the pool:  if we get guaranteed shipping p'mme for import of 450.000t p.m. to keep us steady at 8 wks.  Firm 
bargain - not a resoln. 
 
Cd. we exclude home harvest - reserve at 30,000t a wk.  That wd. cover 
biscuits etc.  If they will exempt home harvest fr. the calculn & 
maintain us at 8 wks., we cd. do a deal. 
 
Add that, if they will ration, we will. 

 
And get ahead with mission to Argentine. 

 B.S. 
Haven't got the men yet. 
 
Can't take these risks. 
 
 
Prefer to call the bluff on rationing - & await reply. 

 
Don't be hustled by Hoover & La. G. 
 
What's the use of asking U.S. for guarantees?  They will fall down, as now. 
 
Argentine - if Rank can't get wheat out, no one can.  

| i)    | interval transport.         |
|-------|-----------------------------|
| ii)   | Strikes.                    |
|       |                             |
| E.B.  | What if U.S. cut us to-day? |

 

B.S. 
Make a deal with Canada. 

 P.M. 
Will that carry us over. E.B. 
And can we be sure of getting it unilaterally. P.M. 
And what about India & Germany. 
 

B.S. 
They won't get anything anyway. 

 

E.B. 
That won't do.  That is M/F. responsibility for U.K. only. 

 

T.W. 
Allocations are meaningless if ours is cut to 1.9. w'out consultn. 

 

B.S. 
It hasn't bn. cut yet.  Discn to-day starts on 2.3 figure.  

 T.W. 
In that event, we cd. take a gamble on stocks as proposed. 
 

A.B. 
We know they are going to try to cut our allocns. 

 
But know they haven't fulfilled delivery promises. 

|                                                                         | If we have to yield more of our theoretical wheat, we want a quid pro quo,    |
|-------------------------------------------------------------------------|-------------------------------------------------------------------------------|
| viz. tht. eventual alloc                                                |                                                                               |
| ns                                                                      |                                                                               |
| will be actual & delivered.                                             |                                                                               |
|                                                                         |                                                                               |
| B.S.                                                                    | Since Tele. 2271-3, in wh. we co-operated, Hutton has telephoned tht. we      |
| can't count on supplies fr. Canada.  He thinks therefore tht. we can't  |                                                                               |
| afford to take the line in Tels. 2271-3.  Suggests we say we can't help |                                                                               |
| - others must do so.  And go for public announcement in Canada of 2-    |                                                                               |
| year contract at 1.55$.                                                 |                                                                               |
1) Offer to ration bread if they will (U.S. & Canada) } Agreed. 
Make it public here if offer made at this mtg.        } B.S. 
Long-term Canadian contract.  I wd. like to carry 1.55$ guarantee from Dec. 
'47 to cover 1947 harvest.  i.e. June 1948.  That will fetch it out. Publish in Canada. 


Agreed. H.D. 
Cd. we say that at that price we will buy the lot? - all you can let us have. 

 B.S. 
No:  because if there is cheaper wheat elsewhere I want to be free to buy it. 
 
T.W. 
M/F cd. agree with Gardiner on minimum quantities.  And that will fetch it 
out. 
 

| A.B.              | Favour fwd. buying in principle - guarantee purchase price for primary    |
|-------------------|---------------------------------------------------------------------------|
| producers.        |                                                                           |
|                   |                                                                           |
| B.S.              | Don't risk losing grain market.  Don't therefore offer to take the lot -  |
| minimum quantity. |                                                                           |

 H.D. 
But talk big. E.B. 
Must have Cab. ruling tht. in reviewg. world wheat situation, we shall have 
regard to Commonwealth requiremts. not to those of U.K. alone. A. 
Supported - that is fundamental. 
 

B.S. 
Agreed. 

 

## 1. Parliament

 
Business for next week. 
2. 
Major Bills for Next Session 
  
[Enter Barnes. 
 

P.M. 
As in brief.  Never done before. 

 
H.M. 
a) Get ahead with prepns. 
 
b) Review of King's Speech.  Doesn't necessarily commit Govt. re content 
of K.'s speech 

|                                                             | Parly. time.  Estimate that even this selection will fill us up.  Remember this    |
|-------------------------------------------------------------|------------------------------------------------------------------------------------|
| was abnormally long Session & next will be unusually short. |                                                                                    |
|                                                             | Approve in principal - and let leg                                                 |
| n                                                           |                                                                                    |
| Cttee review, as we go.                                     |                                                                                    |
|                                                             |                                                                                    |
| G.A.I.                                                      | Note room for Mil. Service Bill.                                                   |

 H.D. 
Cable & Wirelss Bill shd. be included in this - second half of it. 


[Exit Barnes 
 
 
Approved. 
 
3. 
Parliamentary War Memorial H.M. 
As in memo. 
 
 
Agreed. 


[Exit W.W. 
 
4. 
 Egypt. 
 

| E.B.                                                                    | Deleg                                                                        |
|-------------------------------------------------------------------------|------------------------------------------------------------------------------|
| n                                                                       |                                                                              |
| shd. begin by offering to evacuate E.  If we begin bargaining we may    |                                                                              |
| land ourselves in S. Council.  If we begin with offer to go, it will be |                                                                              |
| easier.                                                                 |                                                                              |
|                                                                         | Shall I announce this in reply to P.Q. or leave it to Deleg                  |
| n                                                                       |                                                                              |
| .  Will consider                                                        |                                                                              |
| that.                                                                   |                                                                              |
|                                                                         | C.O.S. are considering mil. implications.  Subject to their concurrence, may |
| I have Cab. approval for pol. advantages of these tactics.              |                                                                              |
|                                                                         |                                                                              |
| P.M.                                                                    | Right psycholog. approach.  Other Ministers agreed.                          |
|                                                                         |                                                                              |
| J.J.L.                                                                  | And our troops are in v. diff. position.                                     |

 S. 

Have Australians expd any view? 

 
A. 

They will now be told. 


 
[Exit S. 
 

## 5. Wages Policy

| H.M.                                                                        | Demand in some quarters for nat. wages policy - but those who advocate    |
|-----------------------------------------------------------------------------|---------------------------------------------------------------------------|
| this haven't administrated such a policy.  Other quarters: strong feeling   |                                                                           |
| that State shd. stand aside & leave this wholly to collective bargaining.   |                                                                           |
|                                                                             | We have to face fact we are living in changing age - e.g. nationalised    |
| industry:  agriculture (as illustrated by next item on Agenda):  full       |                                                                           |
| emplt. will produce situation in wh. old bargaining factors affecting       |                                                                           |
| wages have disappeared & State has definite interest.  We can't be          |                                                                           |
| wholly laissez-faire over this.                                             |                                                                           |
|                                                                             | Can't yet take a positive Govt. line.                                     |
|                                                                             | Memo. propose no more than develop machinery est                          |
| d                                                                           |                                                                           |
| by M/L. in war for                                                          |                                                                           |
| associatg. Govt. with genl. discussions on policy between employers         |                                                                           |
| and workers.  Process of economic education - based on facts wh. only       |                                                                           |
| Govt. can know in full.  Attempt made in W. Paper of 1941 - tho'            |                                                                           |
| slight:  tentative it had some effect.                                      |                                                                           |
|                                                                             | Leading Dpt. in new body wd. be M/Labour.                                 |
|                                                                             | Doubtful whr F.B.I. shd. be brght in - open for decision.  Tho' remember  |
| this isn't wage fixing:  & "education" needn't be w'held from F.B.I.        |                                                                           |
|                                                                             | Re proposal for W. Paper on economic situation, minute from E.E.B. - no   |
| publ                                                                        |                                                                           |
| n                                                                           |                                                                           |
| of quantified forecasts before '47.  Delay until we are sure of             |                                                                           |
| facts - but we cd. do much by confidentl. explanation thro' the             |                                                                           |
| machinery proposed in this memo.                                            |                                                                           |
|                                                                             |                                                                           |
| G.A.I.                                                                      | Room for considering whr old means of wage-fixing suit this period of     |
| change-over fr. capitalist system to somethg. diff.  Don't throw away       |                                                                           |
| the old machinery.  But put something in to assist organise growth to       |                                                                           |
| something new.                                                              |                                                                           |
|                                                                             |                                                                           |
|                                                                             | J.C.C.  est                                                               |
| d                                                                           |                                                                           |
| during war - successful - kept its secrets & ours.  First step wd.          |                                                                           |
| be for me to convene new Corp                                               |                                                                           |
| n                                                                           |                                                                           |
| proposed - other Ministers cd. attend.                                      |                                                                           |
|                                                                             |                                                                           |
| Loose talk re natl. wage policy.  We ought to have means of examining these |                                                                           |
| ideas, in consult                                                           |                                                                           |
| n                                                                           |                                                                           |
| with industry.  Govt. policy for wages wdn't work                           |                                                                           |
| unless industry co-operated.                                                |                                                                           |

a) 

|                                                                       | Against incorporatg. F.B.I.     |
|-----------------------------------------------------------------------|---------------------------------|
| They are on B/T. Conf                                                 |                                 |
| ce                                                                    |                                 |
| & can find their forum there.  They are commerce                      |                                 |
| mainly not production.  The Confed                                    |                                 |
| n                                                                     |                                 |
| wd. oppose their inclusion.  Negotiate                                |                                 |
| direct with Confed                                                    |                                 |
| n                                                                     |                                 |
| .                                                                     |                                 |
|                                                                       |                                 |
|                                                                       |                                 |
| H.M.                                                                  | Co-operatives?                  |
| G.A.I.                                                                | We are mtg. them in May on Prod |
| n                                                                     |                                 |
| campaign.  They were excluded by                                      |                                 |
| Confed                                                                |                                 |
| n                                                                     |                                 |
| & F.B.I.  If we take this line, co-op                                 |                                 |
| ves                                                                   |                                 |
| will join in with                                                     |                                 |
| employer's organisations.  Otherwise, we shd. have to create separate |                                 |
| means of consultg. co-ops.                                            |                                 |

 E.B. 
My diffy. this is called "wages policy", but nothing said here about wages. 
 
 
I object to any more machinery on wages. 
 
 
Socialised industry:  model shd. be machinery estd by (me for) 
M/Supply. P.M. 
That was for one industry alone.  This memo concerned with general issues. E.B. 
Doctrine growing in Party tht. there shd. be one level for all wages & 
everything above paymt. by results.  I will fight that.  All our progress 
made by "cycles".  I want repercussions. 
 
Citrine tried for centralised machine.  But Executive wdn't let it go to 
Congress.  The Unions won't give up their separate powers & rights. 
 
If it's only educational, you have it in J.C.C.  But when will management of 
socialised industries stand?  On cross-benches? 
Dangers of discussion w'out powers of decision.   
 
Thro' war we kept wages ques. out of central body.  But it discussed other 
problems in knowledge of what was being done on wages e.g. arbitration machinery. 
 
No interference with separate negotiations of wages trade by trade. 
 
Attendance at mtgs. of L.P., C/Ex., etc. when wages discussed - will lead to 
two sides ganging up against the Ministers.  Much safer to have the two alone then they will differ inter se. 
 
If you create large central body with wages on Agenda in any form, you give 
opport. for mass action on wages v. Govt. 
 
Executive responsibility of Unions undermined by excessive recourse to 
arbitration. 
 
 
I was compelled to avoid this by summoning conferences & getting the 
2 sides to agree.  Signing agreemt. gave new sense of responsibility to T.U. Executives.  This was the history of 1944/45. 
 
Right course - go on with what critics says is untidy machine, but allows 
men to play their part in negotiations.  The Joint Councils can be given 
economic educn - but keep wages out of it. 
 
If a new machine, greater freedom to express opinions & less atmosphere of 
two sides. 

|                                                                            | We have avoided inflation better than any country.  Save for about 1M. men    |
|----------------------------------------------------------------------------|-------------------------------------------------------------------------------|
| workers are well satisfied.  Near a balanced budget - steady- afraid       |                                                                               |
| therefore of jerking somethg. new into our establ                          |                                                                               |
| d                                                                          |                                                                               |
| machinery.  In this                                                        |                                                                               |
| matter I am conservative.                                                  |                                                                               |
|                                                                            |                                                                               |
| H.D.                                                                       | On L.P. Cttee was broadly in favour of proposal.  Safeguards in para. 29(a)   |
| & (b).                                                                     |                                                                               |
|                                                                            |                                                                               |
| cd. gang up v. Govt.  Main purpose was educational - think that shd.       |                                                                               |
| be fostered - wd. like opportunities to talk confidentially to responsible |                                                                               |
| men on both sides of industry.                                             |                                                                               |
|                                                                            | This shd. not be wage fixing body:  but educational.                          |
|                                                                  | Said at L.P. Cttee we must do somethg. about socialised industry.  We must.     |
|------------------------------------------------------------------|---------------------------------------------------------------------------------|
| Don't know what.  But this Confr                                 |                                                                                 |
| ce                                                               |                                                                                 |
| won't be useful unless it includes                               |                                                                                 |
| somehow the important socialised industry.                       |                                                                                 |
|                                                                  |                                                                                 |
| P.M.                                                             | Kernel: how can Govt. avoid some responsibility for level of wages in           |
| socialised industry.                                             |                                                                                 |
|                                                                  |                                                                                 |
| E.Sh.                                                            | E.B's opinion valid for old system.  But we have to consider wages in state     |
| of full employment w'out (as in war) high sense of discipline.   |                                                                                 |
|                                                                  | Un-coordinated wage structure. because movemt. in dir                           |
| n                                                                |                                                                                 |
| of higher wages is                                               |                                                                                 |
| unregulated separate series of movements.                        |                                                                                 |
|                                                                  | We've endorsed subsidy of e/living - that is concealed subsidy of wages as a    |
| whole.  Go on with that and you must have some interest in wages |                                                                                 |
| levels.                                                          |                                                                                 |
|                                                                  |                                                                                 |
| P.M.                                                             | You subsidise more than wages.                                                  |
|                                                                  |                                                                                 |
| E.Sh.                                                            | But it was because wages you did it.                                            |
|                                                                  | At least it has a bearing on it.                                                |
|                                                                  | No-one has sugg                                                                 |
| d                                                                |                                                                                 |
| State shd. fix wages.  But remember extent to wh. in fact        |                                                                                 |
| Govt. has had to intervene in one way or another.  We must go on |                                                                                 |
| doing so.                                                        |                                                                                 |
|                                                                  |                                                                                 |
|                                                                  | Are we seekg. to construct a new wages policy or merely to examine              |
| problem?                                                         |                                                                                 |
|                                                                  |                                                                                 |
| n                                                                |                                                                                 |
| w'out power                                                      |                                                                                 |
| to decide.                                                       |                                                                                 |
|                                                                  |                                                                                 |
| policy".                                                         |                                                                                 |
|                                                                  |                                                                                 |
| work.                                                            |                                                                                 |
|                                                                  | Must be careful in approaches to T.U.'s.  But can't get anywhere if we don't    |
| talk to them - not re wages but re ques. principles & views.     |                                                                                 |
|                                                                  |                                                                                 |
|                                                                  |                                                                                 |
|                                                                  |                                                                                 |
|                                                                  |                                                                                 |
| P.M.                                                             | We are moving into new situation - because of                                   |
| a) socialised industries                                         |                                                                                 |
| b) full employment                                               |                                                                                 |
|                                                                  | This doesn't really solve it.  We must think harder.  L.P. to review further.   |
|                                                                  |                                                                                 |
| J.J.L.                                                           | Danger of increasing sense of irresponsibility.                                 |
|                                                                  |                                                                                 |
| P.M.                                                             | Yes - study that effect in Australia due to arbitrations system.                |
|                                                                  |                                                                                 |

 
6. 
 Agricultural Wages. 
 

| G.A.I.                                                                  | Advance - some measure of agreemt. that graded wage system shd. be          |
|-------------------------------------------------------------------------|-----------------------------------------------------------------------------|
| devised as long term policy.                                            |                                                                             |
|                                                                         | But m'while must seek some early settlement of wages unrest in agriculture, |
| short-term.                                                             |                                                                             |
|                                                                         | How can we break the deadlock?                                              |
|                                                                         | Must get some move on the minimum.  Union mistaken in askg. for £1.         |
|                                                                         |                                                                             |
| argue differentials in the talk about grading.                          |                                                                             |
|                                                                         | Ques. is - how can we give the hint that a rise to 75% wd. be reasonable ?  |
|                                                                         | New factor - would food shortage: need to increase agric. prod              |
| n                                                                       |                                                                             |
| .                                                                       |                                                                             |
|                                                                         | Wd. like to tie it up with stabilisation for a period - cd. we give some    |
| indication of that also?  For we want stability in prices also wages.   |                                                                             |
|                                                                         |                                                                             |
| stabilisation prov                                                      |                                                                             |
| ns                                                                      |                                                                             |
|                                                                         |                                                                             |
| T.W.                                                                    | Too dangerous to hint to farmers tht. increase wd. be covered by price      |
| increase.  Wd. interfere with independence of wages boards.             |                                                                             |
|                                                                         | Rather than give informal hints to one side or both, I wd. prefer to make a |
| public statement on lines of P.Q. & answer in memo.                     |                                                                             |
|                                                                         |                                                                             |
| P.M.                                                                    | This wd. be direct invitation to Bd. (or independent members) to grant an   |
| increase.                                                               |                                                                             |
|                                                                         |                                                                             |
|                                                                         |                                                                             |
| T.W.                                                                    | But alternative course then suggested by M/L. was tried and failed!         |
|                                                                         |                                                                             |
| A.B.                                                                    | If wages increased as result of Govt. hint, what does that mean as regards  |
| prices & Govt. subsidy to them.                                         |                                                                             |
|                                                                         |                                                                             |
| H.M.                                                                    | One factor is - T.U. is misleading public by concealing extent to wh. wages |
| above minimum are being paid.  M/Ag. shd. give publicity to the facts.  |                                                                             |
|                                                                         | Agree they shd. have somethg. on the minimum - prob. 5/= or a little more.  |
|                                                                         | Real problem = how to make farmers pay some part of the addition?           |
|                                                                         |                                                                             |
| M/Ag. & Ty. to discuss prices & put them up a bit = then say there is   |                                                                             |
| fair opportunity for wages discussion.  Better to do it that way round. |                                                                             |
|                                                                         |                                                                             |
| P.M.                                                                    | Trouble:  average farmer can pay higher wages & do:  but marginal land      |
| warrants higher prices & lower wages - and big farmers make a lot out   |                                                                             |
| of it.                                                                  |                                                                             |
|                                                                         |                                                                             |
| T.W.                                                                    | But large prop                                                              |
| n                                                                       |                                                                             |
| of B. farms employ only 1 or 2 men.                                     |                                                                             |
|                                                                         | 20/30.000 invited to come from Army in Class B. - & v. few are willing to   |
| come out.                                                               |                                                                             |
|                                                                         |                                                                             |
| E.W.                                                                    | a) Can't you subsidise marginal land?                                       |
|                                                                         |                                                                             |
| P.M.                                                                    | No.                                                                         |
|                                                                         |                                                                             |
| E.W.                                                                    | b) Can't afford further increase in prices of vegetables.                   |

 A.B. 
Satisfied a) most farmers are prosperous.  b) worst black market in war. 
 
If price increases, ought we to put a time limit on the higher price?  How 
shall we ever get increased efficiency otherwise?  They must have a 
target date by wh. they will absorb the increase in quarter efficiency. 
 
Done this in bldg. - they say they will absorb the extra 4% p. hour in 
increased output. H.D. 
a) Avoid any promise of any price increases.  Food subsides v. high already: 
& don't want to push up that cost.. 
b) Don't believe it's necessary.  Most farmers cd. afford the additional 5/= or 7/6.  Even if problem of marginal land cdn't be solved by Coalition, doesn't follow that we can't solve it. 
c) Get Wages Bd. mtg. again - M/Labour say workers will apply on 23/4.  
Let Bd. know informally we wdn't object to another 5/= increase or so.  But no commitment at all on prices. E. Sh.              More publicity on facts - wages above minimum etc., - before Bd. meets. 
Nothing here about effect on prices of a 5/= increase.  What will it cost? H.D. 
My point in general:  at this stage of financial year & this Parlt. we shd. not 
give any more subsidy to farmers. T.W. 
Food is important:  anti-farmer and ant-landowner psychology shdn't govern 
Cab. decisions.  Cab. must face the fact that we can't hold labour force in agriculture w'out improving conditions. G.A.I. 
Public enquiry?  a) delay:  but b) might disclose what profits are made:  c) 
effect on Wages Bd. - "no confidence":  d) workers aren't keen on it. 
 
 
Don't believe therefore it wd. give us a settlement.  Might be worth 
havg. it afterwds. A. 
Competent farmers are doing v. well: & most of them pay above the 
minimum. 

|                                                                       | Marginal land - generally farmed by the larger farmers.  They have no case.    |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------|
|                                                                       | Efficiency of B. farmers is greater than in almost any country. (save prs.     |
| Holland).                                                             |                                                                                |
|                                                                       | Fatal to admit that wage increases will be reflected automatically in price    |
| increases.                                                            |                                                                                |
|                                                                       | Concl                                                                          |
| n                                                                     |                                                                                |
| : they are bringing up their claim:  let them proceed:  take no overt |                                                                                |
| action meanwhile.                                                     |                                                                                |
|                                                                       | Believe they will succeed in getting somethg. on the minimum.  And             |
| industry can bear it.                                                 |                                                                                |
|                                                                       |                                                                                |
| J.                                                                    | Agreed.  Another 5/= won't solve man-power problem of industry.                |
|                                                                       |                                                                                |
| T.W.                                                                  | Govt. have accepted duty to fix prices.  They were fixed in Feb. on basis of   |
| independent estimate of cost.  Any subsequ. increase in cost gives    |                                                                                |
| farmers a right to ask for prices to be reviewed.                     |                                                                                |
|                                                                       |                                                                                |



Agreed: {Let it take its course. 

             {don't even try the publicity line. 

## 7. Channel Islands:  Constitutional Reform.

 

| C.E.                                                                   | Constitution establ                                                       |
|------------------------------------------------------------------------|---------------------------------------------------------------------------|
| d                                                                      |                                                                           |
| by King John & not changes since.                                      |                                                                           |
|                                                                        | General desire in Islands for liberalising reform.  Resolutions passed in |
| States.  Islands want to ensure tht. King-in-Council will approve what |                                                                           |
| they propose.                                                          |                                                                           |

 

H.M. 
Cttee in 1925.  Consisted of D/Devonshire & various Members. 

 C.E. 
Will consult with H.M. on composition. 
 
 
Agreed. 

## 8. India:  Constitutional Discussions.

 P.M. 
Read Tel.  Index 14. 
 
Course B. wd. produce a weak defensive posn.  But it wd. be better than 
nothing. 

 H.M. 
Let Cab. agree - subject to P.M. securing views of C.O.S. 

## World Food Supplies:  Allocations Of Cereals.

 P.M. 
Our offer puts us on good wicket pro tem.  How keep the initiative? B.S. 
My para. 2.  MacIvor tells me Canada won't shift 50.000 t. in each of 3 
months.  July-Sept. vice 200.000 assumed in para. 4. 
 
Telegrams = panic, to prevent La Guardia resigning.  If I'm to find wheat for 
any. why for U.N.R.R.A.? via Ceylon etc.  
 
Guarantees from Truman - what are they worth?  Given them twice already: 
and U.S. have fallen down.  Promised 1M. in Apl:  got 300.000 t. 
wheat and 200.000 & flour only:  they can't now catch up on p'mme to June 30. 
 
That's why I say we are riskg. U.K. lives - it's July-Sept.  I'm concerned 
over. They can't get June harvest over here in time. 
 
Still I put a proposal.  Resist loan to U.N.R.R.A. 
a) 
Concurrently with offer to lend 50.000 a month for 2 months 
Apl/May raise extenn to 90% + 5% barley - saving 50.000 t  p.m. 
b)  U.S. Govt. shd. formally undertake repayment by 15/6. of total 
amount lent. 
c) 
d) 
Repaymt. not to cause redn in U.K. allocation.  So as to rebuild 
stocks. 
U.S. to give formal pledge to ship in June & July what we ask for 
not exceeding…. 600.000 t. 
 
U.S. won't pos. accept:  but worth trying.  Lend nil w'out acceptance of all 
condns. 
 
As Tr. says 90 days' shortage only - if true they cd. do it. 
 
Canada's failure means we may lose 700.000T. 
 
 
{ 250.000 T to be saved by (a) 
 
 
{ some may come out of Argentine. 
 
    
{ Must recoup from U.S. - as in (d). 

|                                                          | If further economies have to be made in U.K., will have to ration bread,    |
|----------------------------------------------------------|-----------------------------------------------------------------------------|
| cakes & oatmeal.  Ration of 1                            |                                                                             |
| 1                                                        |                                                                             |
| /                                                        |                                                                             |
| 2                                                        |                                                                             |
| lbs p.wk. for sedentary worker.  7                       |                                                                             |
| categories: 3 months to do it:  10,000 staff!            |                                                                             |
|                                                          | Re x/ on para 2 of Huttons telegram.  How can U.S. help?                    |
| a) Close futures markets & take over on Govt. contracts. |                                                                             |
| b) Farmers to retain only 5% of  millable wheat.         |                                                                             |
| Requisition wholesalers stocks.                          |                                                                             |
| Cropping dir                                             |                                                                             |
| ns                                                       |                                                                             |
| for 80m acres next year & full disclosure of figures.    |                                                                             |
| c)                                                       |                                                                             |
| d)                                                       |                                                                             |
|                                                          |                                                                             |
| P.M.                                                     | What cd. U.S. do in practice to get wheat off farms?  With their admin      |
| ve                                                       |                                                                             |
|                                                          |                                                                             |
| price might be better incentive.                         |                                                                             |
|                                                          |                                                                             |
| E.W.                                                     | How much of this is due to L.G.'s vanity?                                   |
|                                                          |                                                                             |
| H.M.                                                     | We cd. use his efforts - for we too are anxious to squeeze U.S. for our     |
| needs.                                                   |                                                                             |
|                                                          | Halifax says some offer from us - if we are to retain initiative.           |
|                                                          | Period of danger - 160 days not go - until October.                         |

 
With guarantees we might divert 10-12 cargoes.  But not to U.N.R.R.A. 
countries.  Say 4 to U.N.R.R.A: 4 to Germany: 4 to India & S. Africa. 
 
Conditions:  
(a) U.S. must at once take obvious steps of adjustg. prices so as to 
draw out wheat and stop feeding wheat to livestock.  Duty to state this publicly: push U.S. into reversing their cereals policy. 
 
 
(b) Emergency body - with full support - for world cereals can we 
make an offer & push these conditions? P.M. 
Wd. (a) in itself do the trick - w'out raising extraction rate & diluting?  
 
B.S. 
If (a) were done, yes.  But they can't stop feeding to cattle.  They would    
have cattle dying on the hoof.  - 174.000.000 bushels already taken 
from stock to keep them alive.  And next year we wd. have no meat. P.M. 
What about holding back on farms? B.S. 
If $1.8b won't get it out, what will?  They cd. call in their agric. loans. E.Sh. 
Isn't it really a ques. of shocking U.S. public?  Wdn't L.G.'s resignation do 
that? P.M. 
He wd. say we were at fault. E.Sh. 
But we offered bread-rationing. B.S. 
Read telephone message from Hutton. 
 
We must make an offer for April if we are to keep initiative. 
 
Can we contemplate reduction in stocks?  Against dilution or increased 
extraction. A.B. 
Must we raise extn rate even if we assume U.S. will keep their promises? B.S. 
Yes - because of shortfall on Canadian supply;  and to insure v. U.S. failure. E.B. 
Stock figures don't include stocks on farms & distributed stocks.  How much 
is there? B.S. 
2 wks. supply. E.B. 
Believe there is more.  Something like 4 wks. B.S. 
No home supplies in August. E.B. 
When do we start to draw in house stocks? B.S. 
September. E.B. 
Then no danger of starvation - if end/June we had 9.8 wks  + distributed = 
12 wks.  That carries you to mid/September even if nothing is 
imported.  Then new harvest will come in.  And new harvest from exporting countries. 

 A. 
How much does home supply cover? B.S. 
Can't answer. E.B. 
331/3 % home supplies at peak of war. time extn & dilution. 
 
To keep initiative, not too great a risk. 
 
For negotiating - maintain end/June figure:  but July/Sept. risk dropping to 8 
weeks.  And borrow that from current supplies.  That wd. be a contn to 
pool, not to U.N.R.R.A. alone.  i.e. a contribution of 200.000 over 
whole period - on condn of repayment before end/September. 
 
A. 
Support E.B. 
 
Don't dilute with barley. 
Believe much wheat on farms. 
 
Take risk of 200.000 over period subject to condns of replenishment. P.M. 
Conditions on lines of B.S. proposals. (w'out extrn & dilution) 
 
 
Offer 100.000 t. on those conditions.  Firm guarantee by Truman of 
replacemt. w'in 90 days. 


[Exit E.Sh. 
 
Go into the pool - not to U.N.R.R.A. alone - [claim for Germany - no] E.B. 
Say nothing to U.S. re raising our extraction rate. P.M. 
Leave over domestic consequences. 
 
 
Telegram from Halifax. 
1. 
Greece. A.B. 
Populists takg. action in resp. of Request as makes Cab. residuary legatee for 
King.   P.I.D. Summary - Press to-day confirms. E.B. 
Latest telegram suggests it's being cleared up.  Gk. Cab. considering resignn 
.  No final decision - must wait - but looks as if it's clearing up. 


[Enter J.W. 
 
2. 
Iron & Steel Industry. E.B. 
Reviewed by Silk Cttee.  Doubt whtr emergency powers will suffice - 
regulation only, but no power to acquire or build.  Legn necessary 
therefore - &  tht. will raise the genl. issue.  But anxiety in Unions of 
industry re stagnation: short Bill wdn't drag on & cd. be introduced 
earlier.  Cd. make a start on development by agreemt.   Proposal therefore to discuss with industry - as in memo. 
 
Delay of 1-2 yrs. for major legn wd. be serious for e.g. Wales when industry 
can't recover w'out new plant because men won't work old processes. 
 
Govt. wd. anyway have to find large sums for redevelopmt.  This gives 
unusual hold over trade even w'out natn powers. 
 
Spurt at present - exceedg. 1938 output:  but unbalanced & can't be 
maintained w'out development & reconstn. 
 
Unions are reasonable.  Say if legn is difficult, tell us: & we'll accept a 
compromise interim solution. 
 
Think M/Supply shd. bring Transport Union into consultns re finishing side. P.M. 
Announcement:  v. important. E.B. 
P.M. & L.T. can settle that. P.M. 
Suggd talks first.  Leakage already.  Can't let it come out thro' trade. 
 
Think some announcemt. shd. be made this week.  Talks beginning afterwds. H.D. 
I had put that point in discn with Cttee.  But authorise M/S. to send for 
leaders on both sides in day or two.  Then you might p'pone announcemt. until after Easter Recess.  Wd. help to secure co-operative attitude of leaders of industry if they were told first.  But if  

|                                                      |      } you like Parly. announcemt. cd. follow next day. e.g. trade on       |
|------------------------------------------------------|-----------------------------------------------------------------------------|
|                                                      | X  } Tuesday                                                                |
|                                                      | } Parlt. Wednesday.                                                         |
|                                                      |                                                                             |
| E.B.                                                 | Wraugh on severance.  Terrible problem.  Schedule of definitions will be v. |
| diff.  Wd. help that if we moved thro' interim plan. |                                                                             |
|                                                      |                                                                             |
| A.B.                                 |
|--------------------------------------|
| n                                    |
| with trade - much better than by leg |
| n                                    |
| - I favour                           |
| prior inform                         |
| n                                    |
| to the trade.                        |

 

| J.                                                                        | Supported X/.  So did M/Supply.                                        |
|---------------------------------------------------------------------------|------------------------------------------------------------------------|
|                                                                           |                                                                        |
| E.B.                                                                      | If you get a good agreement you mayn't need leg                        |
| n                                                                         |                                                                        |
| .  You will have to make it                                               |                                                                        |
| clear tht. you will take powers if you need them:  but if this is clearly |                                                                        |
| stated they may come in & co-operate.                                     |                                                                        |
|                                                                           |                                                                        |
| H.D.                                                                      | Agreed - younger men. are ready to co-operate in development.          |
|                                                                           |                                                                        |
| P.M.                                                                      | Statement shd. invite co-operation.  Needs revision.                   |
|                                                                           |                                                                        |
| E.Sh.                                                                     | Severance will be the diffy. - are we ready enough on that to meet the |
| industry?                                                                 |                                                                        |
|                                                                           |                                                                        |
| J.W.                                                                      | Yes - for we propose Control Bde. shd. work out detail of severance    |
| problem.  We shall be inviting co-operation again.                        |                                                                        |



Agreed:  as at X/. 


[Exit J.W. & O.S. 

## 3. Wentworth Woodhouse:  Working Of Open-Cast Coal.

 P.M. 
Fitzwilliam coming to see me to-day re Wentworth. 
 
Is the coal really necessary?  Must it be worked on surface? E.Sh. 
This was Cab. decision.  Work there began in 1942, incldg. Dorie Site:  this 
is only continuation.  Deep mining impracticable 
a) 2 yrs. vice 8 mos. 
b) wd. have permanent surface undulations thro' subsidence. c) much spoil wd. have to be dumped. d) 
wd. need underground workers. 
 
Agitn in Yorks. inspired by handful.  Parly Secy. T.C.P. - formerly opponent 
- is now an advocate of the scheme.  T.C.P. agree:  contracts signed. Joe Hall, who is stirring this up, is repudiated by N.U.M. & Yorks. miners. 
 
Fitzwilliam also has bn. stirred up. 
 
Urgent need of coal - especially these special types.  Consumptn of coal by 
industry is rising steeply.  Called for 100.000 t. of bunker coal because of U.S. strikes.  Disputes - in Scotland especially. 
 
To abandon this now wd. be sign of gt. weakness. T.W. 
Has bn. said we cd. get it out this year.  M/F & P. say 2 years.  Technical 
question. H.D. 
Don't re-open the compromise wh. we reached. 
 


 
[Enter Barnes, Dugdale, A.H., Strachly & Genl. Homes. 

## 4. Passenger Shipping Requirements

 B. 
Vital to get min. p'mme of releases if I'm to avoid interference with labour 
arrangemts. in ship-yards.  Want at least the Apl/May minimum. P.M. 
Serv. Dpts. accept - with revision of M'batten's trooping? J.J.L. 
Diffy. = 2 months' p'ponemt. of w'drawal from N.E.I. (if settlement 
reached) - & transfer to India:  also V.G. and Greece. H.D. 
Mustn't stop flow of repatriation. E.B. 
How will this affect repatn of Poles?  Overland we'll never get them out of 
Italy. 
 
 
To send them to Tripolitania wd. be v. provocative - to Senussi & to 
U.S.S.R.  4.000 on way now by sea. P.M. 
Cost of hiring U.S. ships? B. 
Don't pay until end/Apl. when Q.M. comes off the Atlantic run.  Then 
$11/4M. for whole of 3 months' p'mme. H.D. 
Worth spending money on repatriating troops. P.M. 
Can't afford to delay repatn or to get ourselves cramped. so we can't move. B. 
Users must be severely tested - to make best use - otherwise whole pressure 
comes on shipping & ship bldg. industries. 
Suggest Cttee for this.  E.g.  told men are posted overseas for 2/3 wks. & then brght back for discharge. 
J.J.L. 
That is against policy: may be a few slipping thro'. 
 
H.M. 
M/W.T. have done Service Dpts. v. well & demobiln scheme has gone 
smoothly & fast. a) Ques. now:  room for give & take, w'out affectg. genl. rate of 

                              demobilisation, to give this handful of civilians a fair deal.  Many have 
bn. out for 8 years:  children growing up:  they are as homesick as Servicemen: can't be indifferent to their position. 
b) If some ships can be reconverted, sooner we can get our mercantile ???? 
into being - to take chances offering thro' departures of G. It. & Jap. Matter of months to get in. G.H. 
Civilian mainly adminve officers - morale v. low. 
 
Arrangemt. discussed on Sat. is least we cd. accept. 
 
| P.M.                                                                      | But E.B. is being met with demand to w'draw troops.  Must have some           |
|---------------------------------------------------------------------------|-------------------------------------------------------------------------------|
| ships.                                                                    |                                                                               |
|                                                                           |                                                                               |
| E.B.                                                                      | U.S. sympathetic about movemt. of Poles.  Are there U.S. ships now on         |
| charter to us - cd. I ask U.S. to leave them with us for this purpose.    |                                                                               |
|                                                                           |                                                                               |
| B.                                                                        | Yes: v. helpful indeed.                                                       |
|                                                                           |                                                                               |
|                                                                           |                                                                               |
|                                                                           |                                                                               |
| B.                                                                        | Can't miss the shipyards opportunities - and cause unemplyt.                  |
|                                                                           | Barrow is waiting for Orion.                                                  |
|                                                                           |                                                                               |
| Holmes                                                                    | Crucial period is from April - assistance fr. U.S. ndn't come in until May.   |
|                                                                           | Our lack is - back lift from India in May.  Mountbatten if he lent me 5.000   |
| places can still get troops out of N.E.I. = but delay in moving Indians   |                                                                               |
| fr. Malaya.  If I got 5.000 places from M'batten, I cd. relinquish Orion. |                                                                               |
|                                                                           |                                                                               |
| Dugdale                                                                   | a) Support release of Orion - to check drift from shipyards.                  |
|                                                                           | b) 5 largest aircraft carriers cd. carry up to 2.000 men with conversion (wh. |
| wd. take weeks rather than months)  Wd. ease problem.                     |                                                                               |
|                                                                           |                                                                               |
|                                                                           |                                                                               |
|                                                                           |                                                                               |
| Str.                                                                      | a) Civil. lift will be decreased by re-conversion of Orion.                   |
|                                                                           | b) Any delay in repat                                                         |
| n                                                                         |                                                                               |
| of Servicemen will cause trouble.  Arises from                            |                                                                               |
| speeding up release scheme.  We warned M/T. of this in Jan. - he then     |                                                                               |
| said it wd. be all right.                                                 |                                                                               |
|                                                                           | Offls. on Sat. said reconversion demanded by M/T wd. permit of repat          |
| n                                                                         |                                                                               |
| from                                                                      |                                                                               |
| India but only at expense of cutting back S.E.A.C. p'mme & having no      |                                                                               |
| margin for contingencies.                                                 |                                                                               |
|                                                                           |                                                                               |
| Holmes                                                                    | (i) Releases for repat                                                        |
| n                                                                         |                                                                               |
| & Python.  Civil movemt. reduced buy                                      |                                                                               |
| 2                                                                         |                                                                               |
| /                                                                         |                                                                               |
| 3                                                                         |                                                                               |
| rds. to 6.000                                                             |                                                                               |
| a month.  That is agreed.                                                 |                                                                               |
|                                                                           | (ii) Orion.  Must let her do 1 or 2 trips unless                              |
| M'batten is cut down from                                                 |                                                                               |
| 40.000.  I can release Orion if I take 5.000 lift from M'batten.          |                                                                               |
|                                                                           |                                                                               |
| E.B.                                                                      | You won't be asked to clear all B. troops from N.E.I. by October.             |
|                                                                           |                                                                               |
| H.                                                                        | M'batten's plan assumes clearance by Oct.  Let me take 5.000 places fr.       |
| M'batten and I will release Orion.                                        |                                                                               |
|                                                                           |                                                                               |
|                                                                           |                                                                               |
|                                                                           |                                                                               |
|                                                                           | (iii) P'mme assumes we shall get [10.000] places on loan from U.S.            |
|                                                                           |                                                                               |
| J.                                                                        | Further use of R.N. ships?                                                    |
|                                                                           |                                                                               |
| H.M.                                                                      | Supported this sugg                                                           |
| n                                                                         |                                                                               |
| - on genl. economic recovery grounds                                      | /Y                                                                            |
|                                                                           | Can R.A.F. machine be used by ex-pilots recruited thro' C. Av.                |
| n                                                                         |                                                                               |
| ?                                                                         |                                                                               |

 B. 
Bringing them over short distances to ports more convenient for shipping. 
 
Remit this to working party. 
 
Dugd. 
We have brght. back 45.000 ratings. 


[Exit Dugdale:  Holmes:  

        Strachey: A.H. 


[ Enter G.T. 

## 5. Nationalisation Of Transport.

 
B.                    Summd memo. 
                       Controversy mainly on road haulage & municipal transport. 
     C. Licences.    Pre-war no restn:  durg. war limit of 60 miles. 
 
 
Now propose limit of 40 miles. wh. shd. cover 70% of C. journeys. 
 
 
Above 40 miles only by licence on proof they are operatg. 
 
 
necessarily. 
 

P.M. 
Applies also to C.O.S. moving own goods. 

 
Only a few large organisations run C. journeys above 40 miles. 

|                  |
|------------------|
| n                |
| .  Over 40       |
| N.T.C. monopoly. |

 
Unions will press for lower limits.  C. Licence holder for full freedom.  This 
is a compromise. 
 

| P.M.      | Most vulnerable point - man can't carry own goods above 40 miles w'out a     |
|-----------|------------------------------------------------------------------------------|
| licence.  |                                                                              |
|           | Is it necessary to stir up this political trouble?  Is it necessary for prot |
| n         |                                                                              |
| of the    |                                                                              |
| monopoly. |                                                                              |

 J.W. 
Will be a resistance to attractg. firms to establ. in developmt. areas. T.W. 
Farmers - own system for quick movemt. of perishables.  This wd. cut into 
that. B. 
They cd. get their licence. 

 P.M. 
But we shall be criticised for imposing the control at all - to bolster up 
monopoly. 

 

| A.B.                                                                     | Diff                                                                         |
|--------------------------------------------------------------------------|------------------------------------------------------------------------------|
| ies                                                                      |                                                                              |
| of admin                                                                 |                                                                              |
| n                                                                        |                                                                              |
| .  I want to carry own goods 50 miles occasionally - no need             |                                                                              |
| for licence: must I on that occasion change over to State lorry after 40 |                                                                              |
| miles.                                                                   |                                                                              |
|                                                                          |                                                                              |
| T.W.                                                                     | Why interfere at all with people carrying own goods. They aren't offering to |
| compete with State carrier.                                              |                                                                              |
|                                                                          |                                                                              |

B. 
All I propose is tht. they prove they are bona fide carrying own goods.  
Otherwise, it will be this type of traffic which will break the scheme. If these people are free, they can play ducks & drakes. 
 
P.M. 
But you said majority wdn't go over 40 miles.  It is only a few therefore who 
will compete.  If this monopoly is efficient, it cd. stand this competition. H.M. 
B/Trade brief v. this plan - especially qua attractg. new firms to developmt. 
areas. 
 
 
Often a factor is willingness to go tht. they can carry own goods. 
 
 
B/T. argue in favour of exemption of all C. Licences. 
 
My own view:   Cttee reconsidered on P.M.'s suggn & decided in favour of 
M/T. 
 
 
Old competition system wd. wreck transpt.  Case for natn is to end road 
anarchy:  fit road & rail:  so tht. State can offer comprehensive & efficient service. 
a) b) 
W'out reasonably. compreh. monopoly State will be at 
disadvantage.  If it can only pick up what is left, overheads will be too heavy. 
Railways with large fixed capital & maintenance charges not reqrd 
by road transport - history of pre war losses to road transport. 
 
If you ignore basis of scheme you may imperil it. 
 
No argument re A & B Licences.  Proposed to wipe out A Licence over 40 
miles. B Licence = mixed - own goods & others. 
a) 

C. Licence carries own goods only. Given free right over 40m. 
area:  will cover most, incldg. many farmers. 
Remember farmers will do well out of efficient State transpt. system. Cttee view:  if no limit on C. licence, they might unnecessarily extend 
their own transport.  And not easy to enforce provn they can carry only 
own goods - may pick up other traffic. 
 
P.M. 
Cd. you exempt man who has only one vehicle? H.M. 
Cd. consider giving direction to Traff. Commrs. on that. 
a) Man can go to (quasi judicial & independent of Minister) Traffic 
Commmr. for licence to travel beyond 40 miles:  with appeal to a Nat- Tribunal.  Perhaps apptmts cd. be made by Ld. Chancellor. E.B. 
Or by the Crown, as under y. M/L Acts.  See instrns. re C. licences in 
Appendix.  (i) meets developmt. area point. 
 
Cttee thght M/T. had made his case - subject to makg. it a bit easier, as he 
has.  Feeling tht. if we have this quite free, we may lose or endanger whole scheme. P.M. 
Inflexible for isolated journeys by man who normally doesn't go above 40 
miles. 


[Enter. L.S. 

H.M. 
Can't meet that w'out according complete freedom. P.M. 
Diff. to check evasion., on isolated journeys. 
 
A.B. 
Demarcation betwn. State & private enterprise then based, not on function, 
but on distance.  Awkward case to argue. 
 
Don't believe that free C. Licences wd. endanger the State system.  Carriage 
of goods is so complicated tht. people won't be able to do it undetected. 
 
Factory with depots throughout county must know how much capital to allot 
to transport.  Shdn't interfere with it. 
 
Cf. Fletton bricks.   
 
H.M. 
They will get a licence. A.B. 
Another works with sudden order beyond 90 miles. T.W. 
Movemt. of perishable goods.  Mileage criterion will introduce v. 
complicated new factor. E.Sh 
If you are going to nationalise transport, you must isolate natd system from 
blast of free competition. 

 
[Exit E.B. 
No reason to suppose Tr. Commrs. wd. be unreasonable in dealg. with applns 
- & wd. grant licences in most of extreme cases quoted this a.m. 
 
If you allow C. licence travel any distance, larger indust. firms will expand 
their transport organisation - wh. will be formidable competn for natd 
transport. 
 
 
Too big a risk. P.M. 
Thought you said big firm wd. readily get their licence.  It is the small man 
who wd. get frozen out. 
 
Will it be politically possible to refuse C. licences to these larger firms? E.Sh. 
Cap. good prodn firms - if they find N.T.C. cheaper & as efficient - will use 
it. 
 
We're really arguing re small men, who won't want to use N.T.C. because 
own transpt. carries own advertising.  Can't let that grow, uncontrolled. Directions can be given to Commrs. - makes for flexibility. 
 
Coal: 
biggest controversy was over ancillaries not collieries.  Can't make the 
severance - for otherwise natn wdn't pay. 

| H.D.                                                                        | Ques. of degree & phrasing.  At one stage, Barnes said in certain classes    |
|-----------------------------------------------------------------------------|------------------------------------------------------------------------------|
| applicant wd. get a licence as of right.  Hurecomb didn't like that - but   |                                                                              |
| I believe it wd. be politically helpful, while preservg. essential needs of |                                                                              |
| stage.                                                                      |                                                                              |
|                                                                             |                                                                              |
| G.T.                                                                        | No undue rest                                                                |
| n                                                                           |                                                                              |
| on carriage of goods by C. Licences.  Gather my interest cd.                |                                                                              |
| be met by directions etc,.  Must be - effects wd. be serious otherwise      |                                                                              |
| on bricks & bldg. materials.                                                |                                                                              | A. 
If N.T.C. is efficient, firms will wish to use it.  Askg. for trouble to try to 
curb those who run own lorry for own purposes.  Politically v. disadvantageous to hamper this.  Perishable goods.  I wd. prefer to exempt 
C. Licences - unless satisfy. formula on H.D.'s lines. J. 
Largely agree.  But remember most of these men will want to discredit our 
scheme - boycott N.T.C. on grds. of  pol. prejudice.  On other hand, if licences to be granted readily, why have them?  If not, how defend the delays. 
 
Concln = I remain on the fence. A.G. 
Support P.M.  We can try to do too much in natn scheme. 
 
 
Cross. country journeys, firm to firm, in colln etc,. of components & 
carriage of goods fr. one process to another. C.E. 
Support P.M. G.A.I. 
Support Cttee Rpt.  Was doubtful re development areas:  but now see how 
that can be met. E.W. 
My doubts met.  Need for flexibility in country areas.  Wd. back M/T. J.W. 
Favour P.M.'s view - on pol. & economic grounds.  Thought natd of 
"transport" meant the industry carrying - not carriage of own goods. T.W. 
Favour P.M. G.H. 
Support M/T., in my view of discussion. J.J.L. 
Support P.M. 
 
P.M. 
Evenly divided! B. 
Licensing system.  Bn. going for some years:  traders familiar with it. 
Cases will fall into classes.  Decision on one will apply to the class. Whichever way you decide you can't escape controversy.  T.U. opinion is on my side - & even wants me to go further. 
H.M. 
Unless N.T.C. is protected, fear it won't be able to provide the Service. 
 
Cd. Cabinet endorse other proposals: & let my Cttee review C. Licences 
again. P.M. 
Yes:  consider 
a) 
 
distn  btwn. single vehicle owner & others.
b) precisely what is danger to N.T.C.  Big firms?  If so, it's just they 
who can't be refused a licence. 

 
B.                    And preliminary consultn with firms. 


[Exit A.B. 

 

| P.M.       |                                                                          |
|------------|--------------------------------------------------------------------------|
|            |                                                                          |
| J.W.       | Para. 2 (a) Highlands & Islands Steamer Services.  Shd. be power to take |
| them over. |                                                                          |
| B.         | Main services wd. be automatically taken over.                           |

 J.W. 
Optional powers in Bill. J. 
Furniture removers?  Incidental to depository. 

Covered by trade classifn decision. 

 B. 
 

| E.Sh.                                    |
|------------------------------------------|
| n                                        |
| for displaced staff.  Must be            |
| consistent as possible with coal scheme. |

 

G.T. 
2nd Altern. in para. 15 is preferable - for A & B Licences. 

 A.G. 
Draftsman.  Many details to be worked out by Dpts. first. P.M. 
Like A.I. priority demand. H.D. 
Will do our best to help him.  Refuse "full-time" demand.  Allocate a 
draftsman as soon as instructions are ready. 

H.D., A.G., H.M. to settle. 
 
 
Scheme otherwise appd - as basis for discussions. 
 
 
6. 
 New Towns Bill 
 
 
Approved.  £50M. 

## 1. Parliament.

 P.M. 
Business for week after Easter Recess. 


[Exit W.W. 
 
2. 
World Wheat Supplies. 

 B.S. 
Summd memo. 
 
U.S. shdn't be allowed to cover their shortcomings by raiding our stocks.   
Favour public pressure for measures in para. 6. La. G. wd. back this. 
 
Prospects for July-Sept.  Supplies & consumption economics need to meet 
deficit. 
 
 
Effect on animal feeding stuffs. 
 
Ask Cab. to adopt all measures recommended - but no public 
announcement. 
 
Bread-rationing not possible before 15/7 & wd. involve addl. staff of 6.000. 
 
A's ques. re wheat on farms.  We assume ½ m tons at end/March, incldg. 
tailings & unmillable:  we expect 400,000 t. to mills.  Stocks in bakers etc., can't be estimated. 
 
286.000 t. sent (all grains) to B. Zone/Germany from U.K. T.W. 
Diff. memo to follow because large no. estimates not all of wh, may be 
realised. 
 
M/F suggest shortfall in Canadian supplies + need to maintain assumed 
stock level & consumption economics follow.  Effect on livestock wd. be catastrophic.  With agreemt. of M/F  I said 3 days ago in reply to 
P.Q. tht. no redn in rations this summer:  these proposals wd. involve 
cut of 50%.  Loss of even 140.000 t. coarse grain wd. mean cut of 1/3 rd 
in animal feed rations. 
 
My estimate of collection of wheat fr. farms = 400.000 t. in Aug & Sept. 
giving 300.000 T. for milling - as cpd. with M/F. figure of 150.000 t. 
 
Pessimistic forecast for winter shipments from Canada.  3 to 500.000 t. last 
year. 
 
All-over demand for 900.000 + 400.000 flour constant stock. 
 
Propose no. cut involvg. loss of animal feed before inter - departmental 
review of these estimates.  3 Agric. Dpts + M/F. 
 
M/F. propose extn & dilution (maximum effect on animals) at once:  but 
bread rationing not until July. P.M. 
Basic ques: what is minimum stock we must keep.  On what figure of 
consumption is stock figure based. 
 
Closing stock at 900.000 t. wheat.  More than 11 wks. at present 
consumption    
 
What no. of weeks at reduced consumption levels. 
 
| B.S.                                                                  | Peak & valley.  Must have this insurance.  Para. 23                        |
|-----------------------------------------------------------------------|----------------------------------------------------------------------------|
|                                                                       |                                                                            |
| E. Sh.                                                                | Memo. is based on assumptions that we shan't get supplies fr. Canada, U.S. |
| and Argentine.    Sec. of para.12:  but calculation then based on     |                                                                            |
| assumption of only 150.000 t.                                         |                                                                            |
|                                                                       |                                                                            |
| B.S.                                                                  | MacIvor has said only 50.000 t. in next 2 months.                          |
|                                                                       | Hutton says Gardener expects more.                                         |
|                                                                       |                                                                            |
| A.                                                                    | Perplexing feature:  150.000 t. fr, Canada is assumed by this memo.  But   |
| y'day told 285.000 for May/June and 200.000 for July/August.  This =  |                                                                            |
| 970.000 t. wh. is v. diff. from 150.000t.  Must know wh. is the more  |                                                                            |
| reliable before we take these drastic decisions.                      |                                                                            |
|                                                                       | Own farms:  Aug./Sept. 400,000 t.  Believe tht. in May-July we cd. get a   |
| good deal more than this 400.000.  Shdn't these figures come into a/c |                                                                            |
| also.                                                                 |                                                                            |
|                                                                       |                                                                            |
| E.Sh.                                                                 | Para. 12 deals with Canadian supply - but it blows hot & cold.             |
|                                                                       |                                                                            |
| B.S.                                                                  | Deficit of 430.000 t. even if we got the 970.000 t. from Canada.           |
|                                                                       | I can't get firm figures.                                                  |
|                                                                       |                                                                            |
| A.B.                                                                  | Assume all pessimistic assumpt                                             |
| n                                                                     |                                                                            |
| are realised, & no economics introduced,                              |                                                                            |
| what wd. be stocks at end/Sept?                                       |                                                                            |
|                                                                       |                                                                            |
| B.S.                                                                  | Practically nil.                                                           |
|                                                                       |                                                                            |
| J.                                                                    | Choice:  What risk shall be take?  These estimates are only instructed     |
| guesses. Yet M/F recommends policy wh. he admits is disastrous to     |                                                                            |
| livestock.                                                            |                                                                            |
|                                                                       | Why not cut loaf by 10%                                                    |
|                                                                       |                                                                            |
| P.M.                                                                  | Being done.                                                                |
|                                                                       |                                                                            |
| J.                                                                    | And Dpts. consider figures.                                                |
|                                                                       |                                                                            |
| P.M.                                                                  | Distilling is stopping already?                                            |
|                                                                       |                                                                            |
| B.S.                                                                  | Yes.  Barley: for Beer. Saving of …..                                      |
|                                                                       |                                                                            |
| E.W.                                                                  | Dilution with barley wd. cause waste.                                      |
|                                                                       |                                                                            |
| A.                                                                    | Don't do it.                                                               |
|                                                                       |                                                                            |
| E.B.                                                                  | Assume you risk 100.000 t. cont                                            |
| n                                                                     |                                                                            |
| to pool and introduce more of these                                   |                                                                            |
| economies, & you will have 6 wks. stock at end/Sept.  And home        |                                                                            |
| harvest will then be coming in.                                       |                                                                            |
|                                                                       | Tragedy to introduce any of these measures.                                |
|                                                                       | What are these risks comp                                                  |
| d                                                                     |                                                                            |
| with sinkings?                                                        |                                                                            |
|                                                                       |                                                                            |

B.S. 
But then there were huge stocks in exporting countries. P.M. 
Stocks fr. N. America will be moving in September, won't it? 
 
B.S. 
But I can't rely on U.S. guarantees. 
 
U.S. harvest begins in June & cd. begin to reach U.K. in July. H.D. 
Get Canadian supply estimate on Ministerial level via MacIvor. A.B. 
M/F. rightly called attenn to risk - our stocks falling when world stocks low.  
But we shdn't accept certain calamity for sake of calamities wh. will never occur.  And Cab. shd. take collective respons. for risking it. 
 
E.W. 
Extraction rate.  Effect on school milk.  Wd. affect health of children. P.M. 
Immediate ques:  what do we say to C.F.B. to-day? B.S. 
Nothing. E.B. 
Then you won't get 25% set-aside order in U.S. 
 
Insist on firm guarantees. 
 
Tel. fr. Halifax.  State Dpt. are in diffy. over 25% proposal.  Pressure against 
it:  higher levels of U.S. adminn are wobbling.  They are being asked 
what other countries are doing.  Anything further we can say will be helpful.  ? Once concerted statement vice
 unilateral statement by 3 
countries. 
 
Equivalent action here wd. be 200.000 t. from our stocks. 
 
If they fail to carry their 25% proposal, don't let them ride out on grd. that 
we
 wd. do nothing.  Let it be their failure. 
 
Handed in note given to Winnant on 16/4. 
 
P.M. 
What more do we need! E.B. 
Tell Hutton 100.000 stands.  If he gets 2.3 confirmed, he can go up to 
200,000 as against firm guarantees.  Give him scope in discussion - as a negotiating method. B.S. 
Hutton now says 285.000 fr. Canada in May & June dropping to 114.000 in 
July & August. 
 
He now wants informn on specific points - read out. 

|            | What supplies do we ask U.S. for? - return of 200.000 t. + any Canadian    |
|------------|----------------------------------------------------------------------------|
| shortfall. |                                                                            |
|            | Wants to know what consumption economies we offer to match their 25%.      |
|            |                                                                            |
| P.M.       | Preferable to put our 200,000 t. against the 25%.                          |
|            |                                                                            |
|            |                                                                            |
|            |                                                                            |
|            |                                                                            |


## 3. Future Of The Ruhr.

 E.B. 
R. favoured centralised adminn in Germany: included in P. Protocol.  Fr. 
posn was reserved by us at P.  But Fr. have always repudiated Potsadm 
agreements. 
 
Early thought re
 Ruhr.  Talk of socialisation of indies in Saxony:  we don't 
now what is happening. 
 
At Lanc. House Bidault demanded pol. Sepn of Ruhr.  Have resisted that on 
financial & economic grds. 
 
Thought then of economic separation.  Heart of G. war. making power - 
financed & organised G. wars.  If R. prodn left for Germany alone, war 
will follow. 
 
 
From 11 to 33m. tons expansion in steel prodn betwn. the wars. 
 
Reparations agreement:  level of G. prodn:  steel at 7.5m.  But when we took 
11m. as our aim, we assumed ammonia plant wd. be closed.  Found we can't close them because we wd. have to buy fertilisers for them with dollars.  Forced to this, at expense of security. 
 
Draft U.S. Treaty.  Four power commn to give security v. G. aggression to 
other Europ. powers - w'in U.N.O. framework. 
 
Looked at it again in light of draft Treaty. 
 
Idea of international holding co.  Reluctantly abandoned because diffies 
which F.O. found in it incldg. prob. views of Dutch, Belgians etc. 
 
Come back to original idea.  Separate Province.  So designed tht. it cd. be 
fitted into a Federal G. or, otherwise, cd. remain as it is.  Pol. & mil. control for many years.  Advantages:  Germans wd. feel their bosses had gone.  Wd. be like our Coal Bd. 
 
Political:  Communists in G. makg. play with out intentn to separate Ruhr.         
Communists in France makg. play with need to separate. 
 
Gomin's speech, Harvey found split betwn. Gomin & Bidault. 
 
Many snags to be got over.  But must start to talk to other Govts.  Wd. 
Cabinet support me on these lines. 

|                                                                 | Fr. our angle, we shd. be very vulnerable to a renascent warlike Germany.    |
|-----------------------------------------------------------------|------------------------------------------------------------------------------|
| But doubt is she will go that way.                              |                                                                              |
|                                                                 | C.O.S. views.                                                                |
|                                                                 | Ready to consider any better plan.                                           |
|                                                                 | Diff                                                                         |
| ces                                                             |                                                                              |
| with Belgian & Dutch.  Rotterdam can't survive w'out production |                                                                              |
| Ruhr.   Drifting to economic ruin.  Dutch are scared stiff of   |                                                                              |
| consequences of Fr. solution.                                   |                                                                              |
|                                                                 |                                                                              |
| H.M.                                                            | Best solution. Prefer Germany public corp                                    |
| n                                                               |                                                                              |
| subject to pol. control.  The other                             |                                                                              |
| solution wd. have brght. R. in permanently. Worth trying.       |                                                                              |
|                                                                 |                                                                              |
| H.D.                                                            | Was attracted by earlier plan.   Start of an international requirm.          |
|                                                                 |                                                                              |
| of lettg. Germans control Ruhr w'out lasting international      |                                                                              |
| control.  Ownership wd. have given us lasting interest.         |                                                                              |
|                                                                 | Risk of forgiving our enemies.                                               |
|                                                                 | Can we get G. Socialists into controlling pos                                |
| n                                                               |                                                                              |
| in west.                                                        |                                                                              |
|                                                                 | Disappointed that diff                                                       |
| ics                                                             |                                                                              |
| of consortium have proved too much for E.B.                     |                                                                              |
|                                                                 |                                                                              |
| P.M.                                                                       | If Germans are to run this, who will they be?  Not Social Democrats: they      |
|----------------------------------------------------------------------------|--------------------------------------------------------------------------------|
| won't know how.  Fear it will be G. technicians & industrialists:  the     |                                                                                |
| old gang.  When control removed, will fall into Nazi hands.                |                                                                                |
|                                                                            |                                                                                |
| E.Sh.                                                                      | They will be so efficient they will be able to export coal at a price          |
| disadvantageous to us.  Afraid of Nazification.                            |                                                                                |
|                                                                            | Preferred E.B.'s original consortium plan.                                     |
|                                                                            | Russian menace can't be set aside.                                             |
|                                                                            | Our line shd. be to cement friendship with W. Europe.  Need a strong           |
| industrialised France.                                                     |                                                                                |
|                                                                            |                                                                                |
| E.B.                                                                       | My consortium wdn't be French.                                                 |
|                                                                            |                                                                                |
| H.M.                                                                       | Directors appt                                                                 |
| d                                                                          |                                                                                |
| by no. of Govts. - not likely to be successful, is it?                     |                                                                                |
|                                                                            | Diffy is - can you go on permanently with an internat                          |
| l                                                                          |                                                                                |
| control system.  We                                                        |                                                                                |
| must decide whr we are trying to make G. an enlightened Social             |                                                                                |
| democracy:  or clear out in a few years, giving it all up?  If we          |                                                                                |
| cd. succeed in makg. G. a democracy it wd. be a gt. comfort to             |                                                                                |
| our foreign policy.                                                        |                                                                                |
|                                                                            |                                                                                |
| J.                                                                         | We must attach France to ourselves:  allay her fears.  Real International      |
| control, therefore:  not a German national co. subject only to a system of |                                                                                |
| international control wh. experience shows will be relaxed after a few     |                                                                                |
| years.                                                                     |                                                                                |
|                                                                            |                                                                                |
| C.E.                                                                       | No Social Democrats can be found in G. to wh. control cd. be handed over.      |
| Favour international co.                                                   |                                                                                |
|                                                                            |                                                                                |
| A.B.                                                                       | Decide acc. to ultimate policy re Germany.  Need to avoid creatg.              |
| Nationalist revulsion - wh. we shd. provoke by carving up G.,              |                                                                                |
| internationalisg. the Ruhr etc.                                            |                                                                                |
|                                                                            | Russia is starting United Germany movemt. - will put themselves on side of     |
| G. masses. Give G. a healthy psych. context.  Avoid causes of              |                                                                                |
| grievance.  Can't hold G. down for ever.                                   |                                                                                |
|                                                                            |                                                                                |
|                                                                            | Fr. attitude unreasonable.  G. irredentism due to French policy of this kind   |
| after 1918.                                                                |                                                                                |
|                                                                            |                                                                                |
| P.M.                                                                       | Circs. in Germany diff. to-day from 1918.                                      |
|                                                                            |                                                                                |
| A.B.                                                                       | Policy sh. be to take our chances of getting G. industries socialised, but     |
| leave them German.                                                         |                                                                                |
|                                                                            |                                                                                |
|                                                                            |                                                                                |
| E.W.                                                                       | Support E.B.'s memo. because it is realistic.  Accepts the fact tht. Europe is |
| being divided. If we want to promote democracy in G. we must               |                                                                                |
| provide an alternative to (?) Russia.                                      |                                                                                |
|                                                                            | Potsdam levels wd. have                                                        |
| to be altered if we ran this as a Province efficiently.                    |                                                                                |
| It wd. be the answer to R. case - what are you doing in W. cp              |                                                                                |
| d                                                                          |                                                                                |
| with our                                                                   |                                                                                |
| efforts in E.                                                              |                                                                                | E.B. 
Cd. we marry the two?  Wd. like the Provincial Govt.  Don't know re.actions 
of Belg. Dutch & Fr. - more concerned with them than Russia.  Must begin elections in Germany U.S. zone Gauleiter system: won't do for 
us.  We've had municipal elections:  but not big enough to make a splash. 
 
Want also to relieve Exch. of trading costs. 
 
If principle of Prov. Govt. accepted, I wdn't w'hold fr. Western Govts. the 
consortium idea. 
 
 
Cd. put both alternatives to them. 
 
Robertson & Strang favoured second course. 
 
But cd. I have latitude? 
 
J.B.H. 
One thing is clear:  can't go on with no policy. 
 
B adminn.  Can't do Ruhr with present staffs.  For coal eg. we now have to 
get Fr. experts. 
 
 
Urgent:  for we have to get industry going up to agreed level. 
 
[Fr. attitude.  Marcel Paul told me Commm. in France support Gomin's 
attitude.] 
 
Must oppose Fr. plan.  For wd. involve complete review of Potsdam levels.  
Choice is:  pacify France (short-term ambitions) but antagonise Russia. 
 
Consortium.  Control Commn adminn (quadripartite)  can't run an industry. 
 
E.Sh's fear for coal competn.  Agreed levels wd. put them out of competn for 
years.  Risk of Nazification:  alternative Commm or Nazi. thro' Communist.  Don't pay too much attentn to views of people who live in 
G. ???? etc.  I have seen Social Democr. mtgs. wh. wd. have filled Albert Hall:  v. striking how many are coming fwd. 
 
No diffy. in establ. Province & Prov. Govt. 
 
Right to nationalise - diffics because P. Protocol v. stabilising concentns of 
industrial power. 
 
Para. 7.  Don't think we can keep R. out.  At end/occupn 3 w. Powers to stay 
& R. to go:  wdn't be acceptable to them. 

 E.B. 
Saxony is answer to that. 

Agreed:  Discuss both alternatives with Western Powers. before           
taken up with 4 occupying Powers. 
Memo. on Policy twds. Germany under prepn for Cabinet. 

 
 
[Exit H.M. 
 
4. 
Trusteeship A. 
Need to get guidance before D.P.M. mtg.  Want to p'pone until second week. P.M. 
Must wait until Thursday next. 

## 1. Egypt

| P.M.                                                       |
|------------------------------------------------------------|
| in 5 yrs., Egypt may feel diff. m'while & we can make some |
| arrangemts.                                                |

 
Defence Cttee considered - favoured second course. 
 

J. 
Position in country where unwelcome is posn of weakness. 

 

| A.B.                                                               | E. wd. understand physically imposs. to complete in less than 5 yrs. - & wd.    |
|--------------------------------------------------------------------|---------------------------------------------------------------------------------|
| issue agreed statement?  Wdn't be able to represent it as delaying |                                                                                 |
| tactics?                                                           |                                                                                 |
|                                                                    |                                                                                 |
| P.M.                                                               | Yes:  18 mos. - 5 years.                                                        |



Agreed - offer complete w'drawal. 
2.  World Food Supplies
 B.S. 
As in memo. 
 

E.Sh. 
If Can. estimates are even approx. correct, we shan't be short at all. 

 

B.S. 
Yes:  For we need 400.000 t a month.  Total shortfall over period - 600.000t. 

 P.M. 
What will be our stocks at end/June on Massey's figures?  
 

| B.S.                     | Cdn't say, I wd. guess about 775.000 + 300.000 T. flour. or 1105,000 t. in    |
|--------------------------|-------------------------------------------------------------------------------|
| all.  July-Sept.         |                                                                               |
|                          |                                                                               |
|                          |                                                                               |
| P.M.                     | Home supplies then.  And U.S. will under write 85.000 for June + 286.000      |
| for July = 371.000 tons. |                                                                               |
|                          |                                                                               |
| B.S.                     | No:  U.S. undertakg. is to make good 300.000 odd shortfall.                   |

 

| P.M.    | Put it in terms of supplies not shortfall.                                 |
|---------|----------------------------------------------------------------------------|
|         | At end of June stocks at 1.105.000 tons.  Consumption 418.000 t. p. month. |
|         |                                                                            |
|         |                                                                            |
|         | Results in stock of 796.000 t. at end of September.                        |
|         | By then, shipments from N. America will be beginning.                      |
|         | Wd. there be shop shortages with a stock of 796.000?                       |
|         |                                                                            |
| B.S.    | Yes.                                                                       |

 E.B. 
There shd. be a census of stocks. B.S. 
100.000 t. but used daily. P.M. 
Minimum stock in peace? B.S. 
675.000 - 700.000 in peace:  but ready replenishment. P.M. 
This is running it v. close e.g. if late harvest you wd. not keep stocks as high. 
Thus, there is a case for considering introdn of economics now.  Also 
because we have promised U.S. to take comparable action. 
 
A.B. 
For what reason - to match U.S. or to meet stock posn. P.M. 
Mainly the second. T.W. 
Anyhow avoid long-term damages.  21/2% increase in extractn rate means 
heavy loss of animal feed.  Doubtful wisdom to do that. P.M. 
Smaller loaf. 10.000 t. p. month} 
 
Distilling       10.000 t. p. month} Total savings perhaps 32.000 t. p. month 
 
Beer               10.000 t. p month} B.S. 
Saving in these 3 = 137.000 t to end/Sept.  Extractn rate 21/2 wd. yield the 
same.  Beer cut wd. lose 40.000 t of brewers' grains. A.B. 
Our med. advisers say no harm in going to 871/2% - tho' I agree with T.W. re
 
agric. arguemts. against. E.B. 
Think it wd. be enough to do smaller loaf at this stage.  That can be 
represented as 121/2% cut.  Enough to match U.S. economics. 
 
Consider other economics later. P.M. 
Doubt if we shd. stop there. J. 
Why not do biscuits also? E.B. 
Can't turn on to any other food in U.K. P.M. 
Case for cutting beer - do that + smaller loaf.  Beer is 28% up on pre-war: 
 
but (B.S.) the 28% is water. 

 E.B. 
Then cut it by 10% only , not 20%. G.H. 
H.D. is ready to lose the revenue - from beer or whisky proposals. 
 
 
Agreed: 
 Introduce 13/41b loaf at 41/2d. 

              Cut beer production to 90% of pre-war. 

A.B. 
If  you aren't raising extractions rate don't need barley - needn't do the   
distilling cut. T.W. 
Cut in beer - poss. because men out of Forces & munitions. P.M. 
May get something out of Services. 
 
Stop bread with main meals - whr. on demand or not. 
 
 
Agreed. E.B. 
Census of stocks. 

A. 
S. Africa 10,000 t. not up to 10,000 t. 

 
P.M. 
Situation in India is desperate. G.H. 
And Malaya & H. Kong.  Another 10,000. P.M. 
We shd. stress India's needs.  On distribution of the 200,000 t. B.S. 
Surplus of potatoes likely.  Inclined to deal with Belgium re. maize, barley 
& rye.  80.000 t. of potatoes against animal food. T.W. 
Agreed. E.Sh. 
What about Ruhr - coal output.  Will have to consider them. B.S. 
May still have some left for Germany. E.Sh. 
Reactions on France & Holland of reduced coal output in Ruhr. 
 
Consider Germany's needs before deciding disposal of this potato surplus. E.B. 
Coal output dropped by 25% - effect on C/E. 
 
If any deal with Belgium, shd. be for benefit of starving countries e.g. in 
S.E.A. or India - not for benefit of U.K. P.M. 
Why not get them to use their maize surplus for starch?   
 

| B.S.                         | That's what I mean.                                                             |
|------------------------------|---------------------------------------------------------------------------------|
|                              | Van Moor cd. give us 50.000 t. of copra in last 3 mos.  But re. textiles: 3-4m. |
|                              | yds. & balances in sterling re 10.000 t. of copra.  Can we compel               |
| manufrs. to meet that order. |                                                                                 |

 P.M. 
Take it up with B/T. E.B. 
At Mancher. trade assured me they wd. do what they were told. 

 P.M. 
Statement on food cuts.  Thursday, after consultn with Fr. Williams. 
 
Pointing out what we've done already. 
 
| E.B.                                                    | Put ext   |
|---------------------------------------------------------|-----------|
| n                                                       |           |
| rate as percentage over pre war - i.e. from 73% to 85%. |           |
|                                                         |           |
|                                                         |           |
|                                                         |           |

## 3. Trusteeship

 A. 
Urgent because of impending visit of  Smuts.  As in memo. 
 
Part A. of Memo.  No disagreement. 
 
     - Agreed. 
Part. B of Memo.  German S.W. Africa.  Traded for 20 yrs. as part of Union, 
tho' under mandate.  Popn 350,000 incldg. 30,000 white. 
 
Do we support Smuts' attempt to incorporate in Union? 
 
Favour supporting Smuts - openly. P.M. 
Annexation or after consultn with inhabitants. A. 
He will say popn want incorpn.  The white popn do.  How can he determine  
what natives want?  How cd. you consult them?  The Chiefs say they 
want incorpn. P.M. 
This is the point wh. will be taken at U.N.O.  S. African treatment of blacks 
is not popular. A.                    Smuts will be ready to give assurance that we will consult wishes of the    
inhabitants. T.W. 
What do S. African Labour Party think of this? A. 
More inclined to support Smuts now than before.  But what does that Party 
stand for?  [Condn of natives in S. Rhodesia: & neither section of Labour 
Party there offered any protest.] E.Sh. 
Cdn't we support, subject to consent of natives being sought by means 
           x/ 
 acceptable to U.N.O. Para 7 (c)  is not good enough. G.H. 
Will put Col. Empire in diffy. if we openly support Smuts. 
 
Smuts hasn't yet agreed to our placing our own mandates under trusteeship.  
We took initiative in announcing that.  Well received - & Austr. & N.Z. & Belgium followed our lead.  And S. African attitude criticised then.  We found diffy. in inducg. Fr. to come into line.  Can't press them if we support Smuts in this. 
 
Para. 6 of my memo. is furthest we shd. go. J. 
Why shdn't you agree on condns at x/.? E.B. 
May involve split in Commonwealth front.  We've got to say in Trusteeship 
Council which side we are on.  Can't take G.H.'s line. 
|                                                                      | Smuts will be here on Monday.  Why not discuss this with him?                  |
|----------------------------------------------------------------------|--------------------------------------------------------------------------------|
| Must ventilate it 1                                                  |                                                                                |
| st                                                                   |                                                                                |
| inter nos.                                                           |                                                                                |
|                                                                      |                                                                                |
| A.                                                                   |                                                                                |
|                                                                      |                                                                                |
| E.B.                                                                 | What is to stop U.S., Russia or anyone annexing territory if we countenance    |
| that.                                                                |                                                                                |
|                                                                      |                                                                                |
| Esh.                                                                 | He is to argue his case at U.N.O. and also x/.  This isn't annexation.         |
| S. Africa is spreading out - how prevent them from seeking means to  |                                                                                |
| extend territory.  Means.  Surely thro' U.N.O. + x/ is safest means. |                                                                                |
|                                                                      |                                                                                |
| G.H.                                                                 | Want it discussed at D.P.M.                                                    |
|                                                                      |                                                                                |
| P.M.                                                                 | Of course:  but what is our line to be?  Hear how the discussion goes: go      |
| y./                                                                  | no further than x/ in any event.                                               |
|                                                                      |                                                                                |
| G.H.                                                                 | Even that will give rise to trouble in Colonies because of S. African attitude |
| to natives.                                                          |                                                                                |
|                                                                      |                                                                                |
| E.Sh.                                                                | Not a bad thing to have ventilated in U.N.O. the S. African attitude to        |
| natives.                                                             |                                                                                |
|                                                                      |                                                                                |
| G.H.                                                                 | But we don't want to seem to countenance that.                                 |
|                                                                      |                                                                                |
| P.M.                                                                 | S. Africa was given the mandate.  We can't say it shd. be ours.                |



Agreed as at y/. 
4. 
 Palestine 
 

| E.B.                                                                 | Report of Comm                                                              |
|----------------------------------------------------------------------|-----------------------------------------------------------------------------|
| n                                                                    |                                                                             |
| rec                                                                  |                                                                             |
| d                                                                    |                                                                             |
| .  They've accepted further 100,000 J. immigration -                 |                                                                             |
| tho' in later chapters they condemn Jewish activities.               |                                                                             |
|                                                                      | Need for report to be studied before decision reached.                      |
|                                                                      | U.S. pressure for immed. publ                                               |
| n                                                                    |                                                                             |
| of Ch. I. of rpt. Protested to U.S. re. this.                        |                                                                             |
|                                                                      | High power Cttee appt                                                       |
| d                                                                    |                                                                             |
| by P.M. wd. study this with C.O.S.                                   |                                                                             |
|                                                                      | My first re-action - we can't as mandatory Power carry out this rpt. unless |
| illegal armies cleared up & a new deal with J. Agency.  Then I wd.   |                                                                             |
| accept 100.000 subject to Bd. of Control on wh. U.S. represented.    |                                                                             |
| Also can't undertake cost of bldg up Arabs:  U.S. or Arabs must find |                                                                             |
| the cash.                                                            |                                                                             |
|                                                                      |                                                                             |
|                                                                      |                                                                             |

## 1. Palestine.

| E.B.                                                                     | Still believe that, handled properly, with U.S. this might be settled.         |
|--------------------------------------------------------------------------|--------------------------------------------------------------------------------|
|                                                                          | If we put to Sec. Council, R. will come in:  virtual surrender of mandate.     |
| Defeatist.                                                               |                                                                                |
|                                                                          | Publish:  watch re-actions: won't be as bad as policy of Coalition.  Features  |
| in Rpt. which raise whole issue - many things to be discussed.  We       |                                                                                |
| can't find the money.                                                    |                                                                                |
|                                                                          | Take the line: can't adopt this Rpt, w'out full consult                        |
| n                                                                        |                                                                                |
| with U.S. Govt.                                                          |                                                                                |
|                                                                          | Fear that Arab State may raise ques. at Sec. Council - at their initiative, I  |
| wdn't fear it.                                                           |                                                                                |
|                                                                          |                                                                                |
| n                                                                        |                                                                                |
| rushes off to Sec. Council, it wd. be                                    |                                                                                |
| fatal.                                                                   |                                                                                |
|                                                                          |                                                                                |
| ns                                                                       |                                                                                |
| first with U.S. Govt.  On disarming of both sides etc.                   |                                                                                |
|                                                                          | Asked Barnes why U.S. keen:  found it was to prevent large Jew immigr          |
| n                                                                        |                                                                                |
|                                                                          |                                                                                |
| into U.S.                                                                |                                                                                |
|                                                                          | Prepare draft basis of negotiation with U.S.  Don't be upset by a little       |
| exuberance in M/East:  won't be as bad as our rep                        |                                                                                |
| ves                                                                      |                                                                                |
| say.                                                                     |                                                                                |
|                                                                          |                                                                                |
| G.H.                                                                     | Implic                                                                         |
| ns                                                                       |                                                                                |
| of  report - v. complex & difficult.                                     |                                                                                |
|                                                                          | Agree we must try to get U.S. implicated in enforcemt. policy.                 |
|                                                                          | Reference to Sec. Council wd. be for advice.  Offl. Cttee contemplated         |
| discussion with U.S. first.                                              |                                                                                |
|                                                                          | Much work in Pal. to be done, whr. or not this Rpt. is adopted.                |
|                                                                          | Speed in disc                                                                  |
| ns                                                                       |                                                                                |
| with U.S. is essential - for fear of disorders in Pal.                   |                                                                                |
|                                                                          | My inform                                                                      |
| n                                                                        |                                                                                |
| suggests Arab States will bring this to Sec. Council.                    |                                                                                |
|                                                                          | Imposs. for us to carry out Rpt alone.  If U.S. won't help, no alternative but |
| to go to U.N.O.                                                          |                                                                                |
|                                                                          |                                                                                |
| H.M.                                                                     | V. bad Rpt:  unhelpful: irresponsible:  unrealistic.                           |
|                                                                          | We are being pushed around: & Pal. is only remaing. foothold in M/E.           |
| Otherwise I wd. favour clearing out.                                     |                                                                                |
|                                                                          | Rpt. accentuates existg. diff                                                  |
| ies                                                                      |                                                                                |
| - with both                                                              | sides - & adds some further                                                    |
| financial & admin                                                        |                                                                                |
| ve                                                                       |                                                                                |
| diff                                                                     |                                                                                |
| ies                                                                      |                                                                                |
| .                                                                        |                                                                                |
|                                                                          | I wd. prefer Partition.                                                        |
|                                                                          | Immediate action.  Rpt. must be published.  Then shindy will start.  Problem   |
| then is to gain time for thought etc.  Shd. not therefore publ. with any |                                                                                |
| sugg                                                                     |                                                                                |
| n                                                                        |                                                                                |
| of acceptance.  Discuss with U.S.  Don't go to Sec. Council.             |                                                                                |
|                                                                          |                                                                                |
|                                                                          |                                                                                |
| P.M.                                                                     | Agree.  Comm                                                                   |
| n                                                                        |                                                                                |
| have ignored everybody's respons. but ours.  Suggest we                  |                                                                                |
| shd. take responsib. everywhere.  We shd. now make U.S. say what         |                                                                                |
| share they will take.  Say - rpt. rec                                    |                                                                                |
| d                                                                        |                                                                                |
| : we are considg. it in consult                                          |                                                                                |
| n                                                                        |                                                                                |
| with                                                                     |                                                                                |
| U.S. Govt.                                                               |                                                                                |
| E.B.                                                                      | Publicity.  Joint Rpt.  Consult                                                 |
|---------------------------------------------------------------------------|---------------------------------------------------------------------------------|
| n                                                                         |                                                                                 |
| with U.S.  Pos                                                            |                                                                                 |
| n                                                                         |                                                                                 |
| of Arab & Jews will have to                                               |                                                                                 |
| be considered.  Fundamental point - organised armed camp: Br.             |                                                                                 |
| mustn't be invited to send in more troops to deal with that.              |                                                                                 |
|                                                                           | F.O., No. 10 and C.O. to co-operate on that.                                    |
|                                                                           |                                                                                 |
| H.D.                                                                      | Support E.B.  Hold U.S. in, on both Mil. & fin. implic                          |
| ns                                                                        |                                                                                 |
| .,                                                                        |                                                                                 |
|                                                                           | Wd. involve capital expend                                                      |
| re                                                                        |                                                                                 |
| of £100M and £5 - £10M annually.  We can't                                |                                                                                 |
| contemplate that.                                                         |                                                                                 |
|                                                                           | Consequence - slowing down of demobil                                           |
| n                                                                         |                                                                                 |
| .                                                                         |                                                                                 |
|                                                                           | If U.S. wd. co-operate fully, Rpt. not impossible.                              |
|                                                                           |                                                                                 |
| C.I.G.S.                                                                  | Trouble on publ                                                                 |
| n                                                                         |                                                                                 |
| - cd. be handled.                                                         |                                                                                 |
|                                                                           | Prefer U.S. co-operation.. Don't like consequences of reference to U.N.O.       |
|                                                                           | Stress need for disarming & disbanding J. organisations.                        |
|                                                                           | Tries our men pretty high to have to sit down under this provocation.           |
|                                                                           |                                                                                 |
| A.B.                                                                      | Disturbed by obj                                                                |
| ns                                                                        |                                                                                 |
| to seeking U.N.O. advice & reasons for it.                                |                                                                                 |
|                                                                           | Don't object to immed steps.                                                    |
|                                                                           | Suggest tht. as U.S. involved we shd. discuss with them:  but U.S. & U.K.       |
| shd. notify U.N.O. tht. these discussions are procedg.  Will arouse R.    |                                                                                 |
| suspicious if we go on bi-laterally.  At least some action to give notice |                                                                                 |
| tht. if U.K. & U.S. negot                                                 |                                                                                 |
| ns                                                                        |                                                                                 |
| are unsuccessful Sec. Council will be asked                               |                                                                                 |
| to consider.                                                              |                                                                                 |
|                                                                           |                                                                                 |
| E.B.                                                                      | Don't want to say anything at present re Sec. Council.  Trouble enough there    |
| already.                                                                  |                                                                                 |
|                                                                           |                                                                                 |
| A.B.                                                                      | Any one of the neighbouring States can raise it with U.N.O.                     |
|                                                                           |                                                                                 |
| E.Sh.                                                                     | Exhaust first possibilities of Anglo. U.S. co-op                                |
| n                                                                         |                                                                                 |
| .                                                                         |                                                                                 |
|                                                                           | Remember how Comm                                                               |
| n                                                                         |                                                                                 |
| arose - U.S. forced the pace.                                             |                                                                                 |
|                                                                           | Doubtful about E.B.'s sugg                                                      |
| n                                                                         |                                                                                 |
| of leavg. initiative with Arabs, if Anglo - U.S.                          |                                                                                 |
| disc                                                                      |                                                                                 |
| ns                                                                        |                                                                                 |
| fail.  Doesn't arise yet, however.  Next step is to put pressure on       |                                                                                 |
| U.S. to co-operate.                                                       |                                                                                 |
|                                                                           | Not sure of validity of P.M. & H.M's view on the Rpt.  It is consistent with    |
| our moderate policy.                                                      |                                                                                 |
|                                                                           | If U.S. won't play, our position is clear.  "You are making all this fuss, what |
| are you prep                                                              |                                                                                 |
| d                                                                         |                                                                                 |
| to do about it."                                                          |                                                                                 |
|                                                                           |                                                                                 |
| P.M.                                                                      | Any approach to U.N.O. in my view shd. be on Recomm                             |
| n                                                                         |                                                                                 |
| 1.                                                                        |                                                                                 |
|                                                                           |                                                                                 |
| E.Sh.                                                                     | There is a case for subm                                                        |
| ns                                                                        |                                                                                 |
| of whole ques of d.p.'s to U.N.O.                                         |                                                                                 |
|                                                                           |                                                                                 |
| E.B.                                                                      | U.S. & R. want specialised agency for this not U.N.O.  We are sticking out      |
| for U.N.O. but aren't veto-ing the other sugg                             |                                                                                 |
| n                                                                         |                                                                                 |
| .  McNeil is handling                                                     |                                                                                 |
| this.                                                                     |                                                                                 |
|                                                                           | But want to avoid Sec. Council.  If U.S. won't co-operate Rpt. contemplates     |
| change in Mandate.  Want that to go to Trusteeship Council: &             |                                                                                 |
| remainder to refugee side of U.N.O.                                       |                                                                                 |
|                                                                 | Needn't go to Sec. Council unless disorder.  Wd. prefer therefore to wait    |
|-----------------------------------------------------------------|------------------------------------------------------------------------------|
| until taken there.                                              |                                                                              |
|                                                                 |                                                                              |
| {                                                               | Wd. like C.O.S. to make fuller analysis of forces requ                       |
| d                                                               |                                                                              |
| if Rpt. implemented.                                            |                                                                              |
| x {                                                             |                                                                              |
| {                                                               |                                                                              |
| d.p.'s.                                                         |                                                                              |
|                                                                 | Must also bring in Poles, in conversation with Byrnes                        |
|                                                                 |                                                                              |
|                                                                 |                                                                              |
| n                                                               |                                                                              |
| of new mandate.                                                 |                                                                              |
|                                                                 | In other words, detailed case of what is involved in implementg. Rpt.        |
|                                                                 |                                                                              |
| N.B.                                                            | Try to get U.S. to approach this Jewish problem as part of refugee ques as a |
| whole.                                                          |                                                                              |
|                                                                 | U.N.R.R.A. at Atlantic City passed a resolution wh. really commits U.S. &    |
| R. Govts.                                                       |                                                                              |
|                                                                 | Believe this will come to Sec. Council, prob. thro' Arab States.  Cd. we     |
| y./                                                             | ask Offl. Ctee to consider what we shd. wish to emerge from a disc           |
| n                                                               |                                                                              |
| in Sec.                                                         |                                                                              |
| Council.  E.g. finance for developmt. thro' International Bank. |                                                                              |
|                                                                 |                                                                              |
| P.M.                                                            | Approve E.B.'s line.                                                         |
|                                                                 | Offl. Cttee to supervise prep                                                |
| n                                                               |                                                                              |
| of material as at x/ and ? y/.                                  |                                                                              |
|                                                                 | Publicity - F.O. and C.O. together - with Fr. Williams.                      |
|                                                                 |                                                                              |
| H.M.                                                            | Talk to Lobby to-morrow to influence leading articles.                       |
|                                                                 | Inform Dom. Ministers to-day?                                                |
|                                                                 |                                                                              |
|                                                                 |                                                                              |
|                                                                 |                                                                              |
| A.                                                              | Bring in C.O.I.                                                              |
|                                                                 |                                                                              |
| H.M.                                                            | Nothing to do with Press.                                                    |
|                                                                 |                                                                              |
| A.B.                                                            | Agree to immed. action.  But don't want to go to disarm etc. unilaterally.   |
|                                                                 | Nor do I want to be imploring U.S. for aid - dependence on U.S.  Wd. prefer  |
| to bring it to a wider Court. - some organis                    |                                                                              |
| n                                                               |                                                                              |
| of U.N.                                                         |                                                                              |
|                                                                 |                                                                              |
| P.M.                                                            | Truth is U.S. wants her interests at our expense.                            |
|                                                                 |                                                                              |
| E.B.                                                            | I want to get this before U.S. Congress.  U.S. admin                         |
| n                                                               |                                                                              |
| is v. weak &                                                    |                                                                              |
| irresponsible.                                                  |                                                                              |
|                                                                 |                                                                              |
| E.Sh.                                                           | Shd. Cab. express a view on last weeks outrage?                              |
|                                                                 |                                                                              |
| P.M.                                                            | Let Serv. Dpts. & C.O.S. consider first.                                     |
|                                                                 |                                                                              |
| G.H.                                                            | Read telegram.                                                               |
|                                                                 |                                                                              |
| P.M.                                                            | Get P. Notice Ques  Tuesday: & express appreciation of attitude of B.        |
| troops.                                                         |                                                                              | E.B. 
 Want to get Byrnes to agree to 
Considn by C.C.O.S. 
a) joint study by State Dpt. & F.O. b) H.M. 
Let W.S.C. & A.E. O.F.G.S. have advance copies of Rpt.   And P.M. to see 
them. 
 
 
Agreed. 


[Enter W.W 


[Exit C.O.S., Sargent. 

  Strachey. A.M. 

## 2. Report Of Select Committee On Members' Expenses.

| H.D.                                                                | As in memo.                                                                      |
|---------------------------------------------------------------------|----------------------------------------------------------------------------------|
|                                                                     | Main deviation - salary of £1000 p.a. for Members.                               |
|                                                                     | Consequential -                                                                  |
|                                                                     |                                                                                  |
| expenses.                                                           |                                                                                  |
|                                                                     |                                                                                  |
| n                                                                   |                                                                                  |
| & ex. P.M.'s. to have half M.P.'s salary                            |                                                                                  |
|                                                                     |                                                                                  |
|                                                                     | Ministers at £5,000:  no Govt. initiative.  Possible tht. Opp                    |
| n                                                                   |                                                                                  |
| may suggest it.                                                     |                                                                                  |
|                                                                     |                                                                                  |
|                                                                     | Anomalous salaries - as in para. 7.  Ch/Duchy - Parlt. or Funds of Duchy:        |
| H.M. pleasure will have to be taken.  Considered P.M.G. & thght. on |                                                                                  |
| balance better to leave as at present.                              |                                                                                  |
|                                                                     |                                                                                  |
| P.M.                                                                | Capt. Yeoman Guard & another who acts as Whips in H/Lds. get v. little.          |
| Walkden & Ammon.                                                    |                                                                                  |
|                                                                     |                                                                                  |
| H.D.                                                                | This is outside t. of r.  These are H/C. expenses, qua constituencies.           |
|                                                                     | If anything  to be done, it must be by adjustment of Salary.  Same Cttee cd.     |
| look at it again.  Needn't be included in same announcement.        |                                                                                  |
|                                                                     |                                                                                  |
| J.W.                                                                | Also Solr. Genl. for Scotland.  If he were in Parl., he wd. get less than Junior |
| Minister.                                                           |                                                                                  |
|                                                                     |                                                                                  |
| H.D.                                                                | No:  he wd. get the same allowances.  We have bn. asked to adjust his salary     |
| - propose £3.000 w'out fees.                                        |                                                                                  |
|                                                                     |                                                                                  |
| A.                                                                  | Low-paid pos                                                                     |
| ns                                                                  |                                                                                  |
| in H/Lds.  Can we discuss with H.D.?                                |                                                                                  |
|                                                                     |                                                                                  |
| H.M.                                                                | If not in this statement, say considerg. some similar adjustmts. in H/Lds. &     |
| will make statement later.                                          |                                                                                  |
|                                                                     |                                                                                  |
| H.D.                                                                | Will try to do this.                                                             | E.Sh. 
Oppose this Rpt.  Will increase anomalies. 
 
Favour increase of salary to £1000 p.m.  Always opposed idea of immunity 
fr. tax for part of it.  That point is now met. 
 
But for the rest, I wd. prefer unconditional increase of salaries.  e.g. from 
1.500 to 2.000. and have him to claim expenses on that salary. 


To give time 1/2 of M.P. salary + somthg. as Minister is anomalous. C.E. 
Wd. you give him 2.000 if in H/Lds? E.Sh. 
You are proposing that for Junior office. holders in H/Lds.  Prs. give less 
salaries in H/Lds. 
 
If M.P., wtr. Minister or not, you shd. be able to claim expenses. 
 
Para. 5 proposal is untidy arrangemt.  Put salary up to 2.500 & let  him 
claim. P.M. 
Expenses not due wholly to constituency.  "Two homes" applies to H/Lds. 
also. H.D. 
Can't be done w'out changing the law - which now provides that Ministers 
in H/C. are paid as Ministers not M.P.'s and can't claim against salary his expenses as M.P. H.M. 
Can't admit P.M.'s argument.  Appoint a Minister & you must assume he 
lives on the job. H.D. 
The 500 basis was taken because assumed that there is not the same case for 
his having 2 houses.  Assume he lives on the job in Ldn. W.W. 
Was satisfied tht. this Rpt. wd. meet wishes of H/C. 
 
Diffies in whips' office - so great that can't fill my vacancies! A.B. 
E. Sh. solution is tidier.  But if you adopted it, you wd. run into academic 
Parly. Debate.  The existg. law was designed to prevent Govt. placemen - to obviate clandestine means of providing them with money. 
 
Better adopt H.D.'s plan. 
 
Also diff. for Bd./I.R. to argue expenses ques. with Ministers. H.D. 
Tactically wise to leviate as little as possible from Rpt. of Select Cttee. C.E. 
Also awkward to propose alteration in income tax law for Junior Ministers 
especially. 
 
 
Agreed - as in memo. 


[Exit W.W. H.M. 
Position of P.M.G.  Heavy job? 

P.M. 
Yes.  Put him at £5.000 
 
 
Agreed.  H.D. to announce.   Agreed. 


[Enter J.W. & B.S. 
 

## 3. Import Programme For 1946/47.

 H.D. 
 
a) All conditional on Loan going thro'.  Otherwise, as in para. 6. 


Must have clear understandg. that it is all subject to that. 
b) 
Balance/payments.  see p.12.  Transition Account.  Necessary 
imports compete with no unnecessary overseas expendre.  Must 
lose no opportunity to reduce mil. exp. overseas, wh. is running at 
v. high figure. 
 
Latest estimate of deficit less than £687M.  Improvemt. due to  

a) better exports b) shortages reducg. imports. 

 
This is agreed among Dpts. as target. at official level. 

c) Want to balance external trade a/c at first half of '47.  Target. 

 

| H.M.                                                                | (i) Wd. be useful next time to put it thro' Ministerial Econ. Steering Cttee.    |
|---------------------------------------------------------------------|----------------------------------------------------------------------------------|
|                                                                     | (ii)Short fall because we cdn't get imports we needed.  Ty. have annexed         |
| advantages of that.  Consider later whr we cdn't switch some of the |                                                                                  |
| expend                                                              |                                                                                  |
| re.                                                                 |                                                                                  |
| previously auth                                                     |                                                                                  |
| d                                                                   |                                                                                  |
| .  Export drive shd. be presented as a drive to                     |                                                                                  |
| pay for imports - must have the imports if we are to get this       |                                                                                  |
| understood by public.                                               |                                                                                  |
|                                                                     | (iii)Control Comm                                                                |
| n                                                                   |                                                                                  |
| shd. be asked to expedite G. exports.                               |                                                                                  |

 H.D. 
I'm spending at £80M.  This assumes £50M. - saving of £30M. 

|                                                            |
|------------------------------------------------------------|
| n                                                          |
| are drinking 1 botl. hock p. head p. day.  We cd. use that |
| if it were exported.                                       |

 B.S. 
I cd. buy that. H.M. 
Other points I will communicate to H.D. 
 

| B.S.                                                                  | Only 75% of pre-war imports.  Wish it cd. be more.  If I had money, believe    |
|-----------------------------------------------------------------------|--------------------------------------------------------------------------------|
| I cd. buy more e.g. canned fruit.                                     |                                                                                |
|                                                                       |                                                                                |
| P.M.                                                                  | £15M on imports of beer, wines & spirits.  Seems a lot.                        |
|                                                                       |                                                                                |
| A.B.                                                                  | Some imports lead directly to exports.  Fr. can buy with gold - but readier to |
| export to us if we did to them.  Also Med. countries - food products. |                                                                                |
|                                                                       | Risk of canalising trade too much betwn. those countries & U.S.A.              |
|                                                                       | Hope this is being considered.                                                 |
|                                                                       | (ii) The £30M. export from Germany is optimistic.  Timber fr. B. Zone isn't    |
| promising.                                                            |                                                                                |
|                                                                       |                                                                                |
| n                                                                     |                                                                                |
|                                                                       |                                                                                |
| dropping thro' lack of food.                                          |                                                                                |
|                                                                |                                                                              |
|----------------------------------------------------------------|------------------------------------------------------------------------------|
| n                                                              |                                                                              |
| to getting timber elsewhere if we can find it.  Or             |                                                                              |
| houses from Sweden if can be arranged w'out loss of timber fr. |                                                                              |
| Sweden.                                                        |                                                                              |
|                                                                |                                                                              |
| A.                                                             | a)  Can M/F. be given elasticity to get variety?  Apparently agreed.         |
| b) Encouragemt. of S. African wines?                           |                                                                              |
|                                                                |                                                                              |
| H.D.                                                           | Yes:  we are doing that.  Australia too.                                     |
| c) S. Rhodesia has doubled tobacco prod                        |                                                                              |
| n                                                              |                                                                              |
| at our request.  But p.16                                      |                                                                              |
|                                                                |                                                                              |
| A.                                                             |                                                                              |
|                                                                | indicates cut in next year in imports fr. Rhodesia.  Why?  Will cause        |
| x/                                                             | constern                                                                     |
| n                                                              |                                                                              |
| in Rhodesia.                                                   |                                                                              |
|                                                                |                                                                              |
| E.Sh.                                                          | Petrol rationing:  p. 6.  Means p'ponemt. until Sept.                        |
|                                                                | Want it reviewed as soon as Loan goes thro'!                                 |
|                                                                | P.11 gives figures - wh. we think are too high for first 6 months.           |
|                                                                | Strong admin                                                                 |
| ve                                                             |                                                                              |
| & pol. reasons for abandoning petrol rationg. as soon as       |                                                                              |
| poss.                                                          |                                                                              |
|                                                                |                                                                              |
| H.D.                                                           | Wd. prefer to review whole picture as soon as Loan is clear.                 |
| x/                                                             | After enquiry - no change of policy.  Can't explain figures.  Will look into |
| this.                                                          |                                                                              |
|                                                                |                                                                              |
| J.W.                                                           | Machinery imports - v. important.  Want more.  Want it re-examined as        |
| soon as Loan dec                                               |                                                                              |
| n                                                              |                                                                              |
| is known.                                                      |                                                                              |
|                                                                |                                                                              |
| T.W.                                                           | Supported.                                                                   |



Agreed - as in memo. 

## 4. Leakage Of Information.

 P.M. 
Apparent leak re Atomic Energy Bill. J.W. 
Have already ordered an enquiry. P.M. 
Will Ld. Chanc. look into this?  J.W. to consult him. 
| C.M. 39 (46)     |
|------------------|
| st               |
| May, 1946        |

 
Palestine. 

 

P.M. 
Read Trumans's statement & E.B.'s telegram fr. Paris. 
 
In these circs. will be necessary to make a longer statement in Parlt. 
 
Read out draft. H.D. 
Arabs also have illegal organn.  Insert "and Arab" 
 
 
Agreed.
 
 
P.M. 
a) Put U.S. up against it. 
 
 
Agreed. 
b) U.S. emphasis on sending in 100,000.  We must say Rpt. as a whole:  & 
we can't do it alone. 
 
c) Illegal armies.  E.B. wants somethg. said.  But will a decln provoke a 
rising. 
 

| C.I.G.S.                     | Apprec                          |
|------------------------------|---------------------------------|
| n                            |                                 |
| from C-in-C's.  Read it out. |                                 |
|                              | Reinforcemts. Rob 1 Divin + Arm |
| d                            |                                 |
| Brig. Group.                 |                                 |

 
Disarming.  They won't do it voluntarily or on appeal.  Best course:  seize & 
harry leaders. 
 
 
But severe measures: bloodshed: + 12 mos. to complete. 
 
Not enough:  wired for more. H.M. 
Mufti? 

 O.S. 
Not under complete control.  Askg. Fr. to hold him down. H.D. 
Clear tht. we shall pick him up if he comes in B. juristn. 
 

P.M. 
Yes:  we can ask E.B. to spk. direct to Didault.  Yes. 
 

| A.B.                           | Shdn't we say to-day impracticable to absorb so quickly 100,000.  Will    |
|--------------------------------|---------------------------------------------------------------------------|
| quieten Arabs & disabuse Jews. |                                                                           |
|                                |                                                                           |
|                                |                                                                           |

 P.M. 
Add expn of "apprecn for notable contribution" made by Rpt. 
 
 
Agreed E.Sh. 
Argued in favour of making no public statement beyond saying that we are 
ascertaining what Truman meant by his statement. 
 
A.B. 
Unless some statement made here at once, alarm & expectns will be excited 
by Tr. promise of early transfer of the 100,000. E.Sh. 
Involves public controversy with Fr. at once, when our policy is to enlist 
their assistance. H.M. 
Statement by P.M. won't be taken harshly in U.S.  Tr. may be in some diffy. 
but he is used to it. N.B. 
Cite actual language of rpt. re 100,000 because Tr. has wrongly said rept. 
recommends immed. transfer. 
 
A. 
Say Dom Govts. now in Ldn. support our line. 
1. 
Parliament. 
Business for next week. 
2. 
Submission of Memoranda to Cabinet. E.Sh. 
Protested at insufficient time for consn of memo. 
 
P.M. 
Will remind about 2-day rule. 
3. 
Iron & Steel Industry. 


[Enter J.W. H.M. 
Case for day's debate.  Govt. Motion - to secure positive role. 
 
Terms of motion in Cl. 177 - discussed & amended. P.M. 
Need we give a day? H.M. 
Yes:  good Parly. practice. H.M. 
Shall I announce to-day? W.W. 
You'll be asked if you don't. W.W. 
Day - before end/May. 
 
 
Agreed:  Volunteer the statement re a day (no date). J. 
Cd. we not give an early indication of line of demarcation. - betwn what we       
 
 
take over & what we don't. P.M. 
Discuss with M/Supply.   

 J.W. 
Will certainly be said in Debate. 
 
Draft W. Paper - will need careful considn prob. by S/Industries Cttee.  But 
general points here. 

 H.M. 
Either a convincing argument or none at all.  If first alternative chosen, S/I. 
Cttee can consider & bring to Cab.  Week's delay.  But wd. we have 
any argument at all?  Spoils opening speech in debate.  Unless our posn 
on this is so weak tht. we must put out arguments at once, I incline to publishg. industry's Rpt. w'out comment.  That is technical argument:  
will raise issue whr. industry alone cd. do this reconstn. 

 L.P.S. 
Agreed. H.M. 
Have not promised to do more than publish industry's report in a W. Paper. J.W. 
Wanted make it clear 
a) b) 
many enquiries already. 
Can't be settled w'out detailed examn on ground. 
c) Pose alternatives to show  
(i) (ii) 
priv. enterprise not respons. now: cartel. 
decn on comm. & econom. grds. 
 
Disadvantage of publ. ind. rpt. alone - good rpt. makes good case, but 
assumes Govt. financial aid. 
 
A.B. 
Unwise to be rushed into publishg. this W. Paper.  It falls betwn. 2 stools. 
 
 
Doesn't make the historical case v. the industry. 
 
 
Reserve our case for a speech. P.M. 
Don't leave industry's rpt. holdg. field alone for too long before Debate. H.D. 
Also a v. bad & long report as well as the good one. 
 
Originally thought shd. be prefaced by short statemt. of Govt. policy. 
 
This however won't do.  If anything put out in writing, shd. include 
demarcation. 
 
Cd. S/I. Cttee look at the ques & report next week to Cabinet. E.Sh. 
What are the Cttee to investigate?  They will be back again on ques. of 
severance. P.M. 
S/I Cttee go on workg. out what we shall say in Debate. 
 
M'while decide now to publish only industry's Rpt. w'out prefacing 
statement of Govt. policy. J.J.L. 
Public mind not so clear on steel as on coal.  See that Press take the right 
points on the industry's rpts. A. 
Yes:  get across our basic case. H.M. 
Asked Lab. Party Office to consider. 


[Exit J.W. & W.W. 


[Enter: J.B.H. Barnes 

 B.S., N.B. 
 
4.    Wheat Supplies for United Kingdom. P.M. 
For Cab. not W.F.S.  Now have the figures. 
B.S. 
Illustrate our diffies with U.S. by reference to their allocn of our advance of 
200,000 t.  
|                                                                            | 60.000 t. for India:  10.000 t. for S. Africa:  nil for Malaya or H. Kong.      |
|----------------------------------------------------------------------------|---------------------------------------------------------------------------------|
|                                                                            | 150.000 t. at least allocated by C.F.B. to Japan:  250.000 t. for U.N.R.R.A.    |
| Only prov                                                                  |                                                                                 |
| n                                                                          |                                                                                 |
| for C.F.C. areas are …  for India & B. Germany.  Unless                    |                                                                                 |
| we make further diversions Fr. U.K. don't see how L.F.C. needs can be      |                                                                                 |
| met.                                                                       |                                                                                 |
|                                                                            | Hence my recomm                                                                 |
| ns                                                                         |                                                                                 |
| .                                                                          |                                                                                 |
|                                                                            |                                                                                 |
| P.M.                                                                       | Clear tht. even on optimistic assumption, things will be tight.  Must therefore |
| consider these proposals in para. 9.                                       |                                                                                 |
|                                                                            | Para. 9 (a).  Arguments against.                                                |
|                                                                            | [ I see that Army have instructed units to buy more bread in view of red        |
| n                                                                          |                                                                                 |
| in                                                                         |                                                                                 |
| size of loaf.                                                              |                                                                                 |
|                                                                            |                                                                                 |
| J.J.L.                                                                     | Soldier is entitled to a ration of bread.  Until it's reduced, it must be       |
| honoured.  I will take this ques up.                                       |                                                                                 |
|                                                                            |                                                                                 |
| P.M.                                                                       | Defeats whole object of Govt. decision.                                         |
|                                                                            |                                                                                 |
| H.M.                                                                       | Service Ministers shd.                                                          |
| know in advance about these orders on matters of                           |                                                                                 |
| controversy.                                                               |                                                                                 |
|                                                                            |                                                                                 |
| ns                                                                         |                                                                                 |
| to ensure it]                                                              |                                                                                 |
|                                                                            |                                                                                 |
| T.W.                                                                       | My memo. is mainly factual.  M/Food - on assumptions.  Second picture           |
| takes an estimate of collections from prod                                 |                                                                                 |
| n                                                                          |                                                                                 |
| wh. I can't accept for a                                                   |                                                                                 |
| moment.  This is how he gets his minus.                                    |                                                                                 |
|                                                                            | If our discussions are to be based on assumpt                                   |
| ns                                                                         |                                                                                 |
| , see p.3 of Hutton's letter.                                              |                                                                                 |
| He expects ample shipments after July.                                     |                                                                                 |
|                                                                            |                                                                                 |
|                                                                            |                                                                                 |
| P.M.                                                                       | But Cl. Anderson's lr. is based on faith.                                       |
|                                                                            | Easy for M/F. to increase extr                                                  |
| n                                                                          |                                                                                 |
| rate: diff                                                                 |                                                                                 |
| ies                                                                        |                                                                                 |
| come later.                                                                |                                                                                 |
|                                                                            |                                                                                 |
| N.B.                                                                       | I was also impressed by Hutton's lr.  Will make gt. diffi                       |
| es                                                                         |                                                                                 |
| if they achieve                                                            |                                                                                 |
| their 6m. target.  But see  (c) in Hutton's last para. - if we will do our |                                                                                 |
| share.                                                                     |                                                                                 |
|                                                                            |                                                                                 |
|                                                                            | Telegr. fr. Halifax support the view tht. to get it out of U.S. we must do      |
| somethg. more - & he urges do it now.                                      |                                                                                 |
|                                                                            | At mtgs. with Eur. Ministers countries with 90% rate told me no waste           |
| caused.                                                                    |                                                                                 |
|                                                                            |                                                                                 |
|                                                                            |                                                                                 |
| T.W.                                                                       | Cl. And. pressure is for red                                                    |
| n                                                                          |                                                                                 |
| of U.K. stocks.  But M/F. plan is for increasing                           |                                                                                 |
| stocks.                                                                    |                                                                                 |
|                                                                            |                                                                                 |
| A.                                                                         | Argument v. raising rate is, not quality of Bread, but animal food.             |
|                                                                            |                                                                                 |
| H.M.                                                                       | Psych. pt. in handling of U.S.  They want to see action comparable to their     |
| 25% cut.                                                                   |                                                                                 |
|                                                                            | Will our other plans be suff. dramatic?                                         |
|                                              | Shd. we lengthen rate until we know whr. we are gettg. the Aug/Sept.              |
|----------------------------------------------|-----------------------------------------------------------------------------------|
| supplies.                                    |                                                                                   |
|                                              |                                                                                   |
| P.M.                                         | Won't involve that loss of animals in summer. - assumg. we can shorten            |
| again in autumn.                             |                                                                                   |
|                                              |                                                                                   |
| H.M.                                         | This is best season in wh. to cut animal feed.                                    |
|                                              | Another point - alloc                                                             |
| n                                            |                                                                                   |
| for May: sending supplies to Japan & more to |                                                                                   |
|                                              |                                                                                   |
|                                              |                                                                                   |
|                                              |                                                                                   |
| E.Sh.                                        | P. 7. 1st para.  Cl. Anderson.  On that basis, there will be grain.  Is it really |
| necessary to make this gesture.              |                                                                                   |
|                                              |                                                                                   |
| P.M.                                         | Always asked for something more.  They forget what we've done already.            |
|                                              |                                                                                   |
| B.S.                                         | a) Cab. endorsed princ. of using grain for humans vice                            |
| animals.                                     |                                                                                   |
|                                              | b) Can't go fwd. on U.S. faith.                                                   |
|                                              |                                                                                   |
| n                                            |                                                                                   |
| cd. start at once & secure                   |                                                                                   |
| economies.                                   |                                                                                   |

c) In reply to E.Sh. don't rely on Cl. And. lr.  They're now saying danger of 
drought in Arizona. Doesn't follow we shall get it. 
d) 700.000 t. in May - means 1.4m. a month in May/June to meet 6m. 
promise.  That is physically imposs. 

We are asked to match their 25%.  We said, in first instance, smaller loaf & beer.  Now I tell you what more we must do. 
P.M. 
We never promised to match their 25%. B.S. 
V. well.  Then look at it from our stock posn.  We are heading straight for 
trouble if we don't take these measures soon. 
 
A.B. 
Is it for stocks (B.S.) or for U.S. (H.M.)? 
 
I wd. do no more to affect U.S. psychology.  We've done enough. 
 
Will this 5% more on extn rate affect U.S.? 
 
Large nos. of U.S. public realise our sacrifices already.  And our action 
won't influence U.S. politicians. 
 
U.S. have much more variety to rely on. 
 
Against raising the rate for any long period.  What wd. be effect of short 
raising? T.W. 
Redn 25.000 t. p. month, in animal rations.  Can't tell farmers they'll get 
more later because no guarantee. 
 
Pig & poultry keepers wd. at once breed less because of immediate shortage. 
 
At end /3 months the livestock won't be alive even if more food then 
available. 
 
Recent proof:  when rations reduced to 1/6
th small store pigs were killed in 
large nos. A. 
What are stocks monthly consumption of animal food? B.S.  
Don't know. A. 
Milk cows - won't be affected because good grass. 
 
Pigs & poultry will be affected.  But can we risk 2/3 months?  If so, this is 
best time to risk it.  More potatoes cd. be used for fattening pigs. 
 
Agreement:
 consider this on basis of U.K. stocks not U.S. 

          psychology. T.W. 
1.8m. p. annum = our needs.  1.45m. is M/G. expectn. ie Deficit already. G.H. 
Approachg. crisis in S.E.A. is further reason for conserving our stocks, in 
case we have to give it to our own people. P.M. 
Monthly consumption of animal feed on present rations - 200,000. in 
summer and 260.000 in winter. 
 
Para. 9(b) and (c). B.S. 
9(b) can be done easily because biscuits are on points. H.D. 
Wd. prefer to do even more on 9(b) & (c) than harm animals by para. 9(a). 
 
Why not prohibit bread with main meals in high-class restaurants. P.M. 
Because you can't do it w'out affectg. canteens:  and thus affectg. heavy 
worker. B.S. 
Have made it offence to offer: & issued warning circular. H.D. 
Psychol. effect:  wd. be valuable. 
 
Balance is wrong - if you boggle at restrictg. luxuries & hurt animal foods. P.M. 
Nothing in it worth having. E.Sh. 
Cut the pastry - won't they eat more bread? P.M. 
Favour 25% cut under 9(c). 

 

|     |     |     | Agreed  Paras. 9(b) and (c) at 25% each.    |
|-----|-----|-----|---------------------------------------------|


## Extraction Rate

 N.B. 
An advantage of raising it wd. be tht. we cd. press e.g. Sweden to come up to  
 
          90%. 
 
Tel. 2715 fr. Halifax.  Need to convince U.S. tht. we have done all we can.  
Steps so far taken by us won't be enough. P.M. 
Not convinced - no realisation of condns in U.K. 

 
 
Discussion suspended. 
 

## 4. Railway Rates .

| P.M.    |
|---------|
|         |

B. 
Dealing with estimates for future receipts - must be based on trends. 
 
Expendn is strictly supervised. 

|                                                                        | Surely not disputed expenses have risen by 70%.  War time Govt. traffic &    |
|------------------------------------------------------------------------|------------------------------------------------------------------------------|
| rest                                                                   |                                                                              |
| n                                                                      |                                                                              |
| of other traffic put enormous traffic on to rlways.  Now red           |                                                                              |
| n                                                                      |                                                                              |
| in                                                                     |                                                                              |
| traffic:  average loading much reduced.  Road traffic coming in.       |                                                                              |
|                                                                        | Charges increased by only 16                                                 |
| 2                                                                      |                                                                              |
| /                                                                      |                                                                              |
| 3                                                                      |                                                                              |
| rds%.  Going into this early to avoid                                  |                                                                              |
| confronting Ty. with sudden large deficit at end/year.  Easy to see at |                                                                              |
| end/45 what was happening.                                             |                                                                              |
|                                                                        |                                                                              |
| H.M.                                                                   | B/T. are concerned - unfort. moment for manufrs.  Suggest putting it on      |
| passengers.                                                            |                                                                              |
|                                                                        |                                                                              |
|                                                                        | Basic fact - rlways got thro' on 162/3rds increase because heavy traffic     |
| carried live cattle.                                                   |                                                                              |

 
Ty. have done well.  May be argued they shd. meet some of the knock now. 

|           | Wd. be bad to allow the deficit to pile up until nat                      |
|-----------|---------------------------------------------------------------------------|
| n         |                                                                           |
| comes in. |                                                                           |
|           | Cd. the increase by 10% vice 16                                           |
| 2         |                                                                           |
| /         |                                                                           |
| 3         |                                                                           |
| rds%.     |                                                                           |
|           |                                                                           |
| P.M.      | Based on continuance of standard revenue, wh. they didn't earn pre-war.   |
|           |                                                                           |
| H.M.      | But you can't show tht. proposed increase is unjustified on econom. grds. |

 

| H.D.                                                                    | Clear must be some increase.  Thought it shd. go mostly on passengers.     |
|-------------------------------------------------------------------------|----------------------------------------------------------------------------|
| M/T. argues can't go too far that way.  Concluded part must go on       |                                                                            |
| goods.   Don't want any on coal:  ready to face tempy. deficit, not too |                                                                            |
| large, until we nationalise.  More on coal wd. increase c/l. index.     |                                                                            |
| Subject to that. I wd. accept M/T.  proposals.                          |                                                                            |
|                                                                         | Basis of compen                                                            |
| n                                                                       |                                                                            |
| on nat                                                                  |                                                                            |
| n                                                                       |                                                                            |
| likely to be (M/T. and I agree anyhow) agreed                           |                                                                            |
| capital figures & pay in Govt. stick with full advantage of cheaper     |                                                                            |
| money.                                                                  |                                                                            |
|                                                                         | Don't mind temp                                                            |
| y                                                                       |                                                                            |
| deficit if we are going to nationalise on this basis.                   |                                                                            |
|                                                                         |                                                                            |
|                                                                         |                                                                            |
|                                                                         |                                                                            |
| A.B.                                                                    | Increased costs of freight for bldg. materials wd. affect housing costs -  |
| already carrying higher prices of steel, bricks etc., Housing subsidy   |                                                                            |
| isn't balancing.  Serious pos                                           |                                                                            |
| n                                                                       |                                                                            |
| .                                                                       |                                                                            |
|                                                                         | Wait a bit.  Ty. has had big profit on rlway op                            |
| n                                                                       |                                                                            |
| .  Rlway Valuation Bill:                                                |                                                                            |
| we've resisted l.a. claim to rate on basis of war-earnings.  Ty will be |                                                                            |
| told they've done  v. well.  Stronger argument if rlway revenues now    |                                                                            |
| to be increased.                                                        |                                                                            |
|                                                                         | Danger of inflation.  Don't keep down Budget deficit at that risk.         |

 
Consequences on industry.  Export indies cd. carry it, for world prices are 
high. 
 
 
Argument re coal, however, applies to bldg. materials. 
 

| B.S.                      | Cost of all foods will be increased - at expense of food subsidies.  Better    |
|---------------------------|--------------------------------------------------------------------------------|
| subsidise rlways.         |                                                                                |
|                           |                                                                                |
| d                         |                                                                                |
| average.                  |                                                                                |
|                           |                                                                                |
| E.Sh.                     | Cost for coal.  £48M last year.  16                                            |
| 2                         |                                                                                |
| /                         |                                                                                |
| 3                         |                                                                                |
| rds%.   increase wd. mean |                                                                                |
| 1                         |                                                                                |
| /                         |                                                                                |
| 3                         |                                                                                |
| rd                        |                                                                                |
| a ton on                  |                                                                                |
| coal prices.              |                                                                                |
|                           |                                                                                |
|                           |                                                                                |
| c/l.                      |                                                                                |

 
 
And increased gas & electricity will involve further rise in index.  May 
go up 2 points - then miners' wages go up & spiral starts. 
 
Further review by R. Rates Tribunal - who might recommend further 
increase. 

|                                                                          | Pos                                                  |
|--------------------------------------------------------------------------|------------------------------------------------------|
| n                                                                        |                                                      |
| of N. Coal Bd. will have to face increased charges  e.g. of timber.  The |                                                      |
| margin of profit won't reach expect                                      |                                                      |
| ns                                                                       |                                                      |
| .                                                                        |                                                      |
|                                                                          | Hangover fr. Coal                                    |
| n                                                                        |                                                      |
| Govt. - must soon propose increased coke prices.  Tht                    |                                                      |
| will raise steel by 3/= a ton.  This proposal will increase it too.      |                                                      |
|                                                                          | We must face facts - but take them into a/c.  No obj |
| n                                                                        |                                                      |
| to M/T. proposals but                                                    |                                                      |
| must tell you what it means.                                             |                                                      |
|                                                                          |                                                      |
| H.D.                                                                     | Somethg. on passenger rates.                         |

 
Nothing on coal. 
 
Impressed by arguments re bldg. materials & food. 

|                        |
|------------------------|
| raise c/living figure? |

 

|    |    | P.M.    | Agree in principle:  some fr. Ty. & some fr. pass. & freights.    |
|----|----|---------|-------------------------------------------------------------------|
|    |    |         | avoid raising c/l index.                                          |

 
 
C/Exch. and M/Transport to consider & report to Cabinet. 
 

| B.       | Much too vague.  £42M is minimum needed.    |
|----------|---------------------------------------------|
|          |                                             |
| H.D.     | I'm ready to face temp                      |
| y        |                                             |
| deficit. |                                             |

 
4. (resumed)  Wheat for United Kingdom.

 
Stocks for Animal Feed.   351.000 T. cereals M/F. 
Shall exhaust stocks by end/July takg. a/c of home prodn.  No imports now 
allowed. 


60.000 t. at 85% a month in milling offals. 


40.000 t. at 90% a month in consumptn stays high. 
 
Commitments are there for next few months - coupons are out already. 
 
Oil cake stock 100,000 t.  Consumptn at present. 
 
 
Agreed:  increase to 90% - on basis of temporary action only. 

## 1. United States Request For Bases: Tarawa.

 P.M. 
Tel. from E.B. - suggesting immed. cession of Tarawa, as war memorial to 
U.S. 
 
 
Marines who made gallant exploit then - to influence loan. 
 
Diffies 
a) no consultn with intell. inhabitants. 


b) must ask H.M. 
 
E.B. wants it for Loan.  But (iii) wd. it affect that (ii) wd. it not look like 
cession 
 
Austr & N.Z. were opposed because awkward precedent. 
 
Don't recommend agreemt. G.H. 
Surrender w'out consultn of 3.000 inhab.  And at their request tht G. Islands 
were annexed. 
 
Sympathy re sentiment:  for U.S. lost many men here.  But can't do it w'out 
consultn. A. 
Tall order, at short notice.  And quid for the quo not guaranteed.  Wdn't do it 
for Loan. 
 
Shdn't be unreasonable.   
 
 
But a) shdn't be done save as part of genl. plan for bases. 


b) can't do it w'out consultg. A & N.Z. P.M. 
Wd. consult them if Cab. favoured cession. A.B. 
No cession of B. territory by unilateral action or otherwise than thro' U.N.O. 
or as part of general defence scheme. 
 
H.D. 
Discounted optimism re
 Loan.  Important to get it.  And if this were 
effective way of getting it, much to be said for it.  But danger of defeatg. own object. 
            x/  Wd. prefer to put it that, if Loan granted, we shd. be more disposed to be 
friendly re bases.  Wdn't offer it as open bribe. 
 
But why not discuss with Doms. anyway. P.M. 
Not if we reject Loan argument. 
 
And B. has rejected our claim tht. bases be treated as part of genl. defence 
plan. 
 
The telegram 53 fr. Paris will come to Dom. P.M.'s anyhow.  Don't want 
Tarawa to come to them in advance of that. H.D. 
Wd. like early considn given to formula at x/. H.M. 
Protest v. being rushed by E.B. 
 
Islands - must have considered policy determined at leisure.  U.S. are 
treating A & N.Z. with insufficient respect.  B. is treating them as colonies. 
|                                                  |                                                                             |
|--------------------------------------------------|-----------------------------------------------------------------------------|
|                                                  | Suspect a civil aviation interest in it, too.                               |
|                                                  | Tell U.S. we are ready to discuss comprehensive plan, together with Doms. : |
| but can't give pieces away in a hurry like this. |                                                                             |
|                                                  | We are in danger of looking "on the run" all round.                         |
|                                                  |                                                                             |
| E.Sh.                                            | Wd. cut across principle of U.N.O.                                          |
|                                                  | Put the positive answer - not a mere negative.                              |
|                                                  |                                                                             |
| N.B.                                             | Agree it wd. prob. have opp. effect on Loan.                                |
|                                                  | But recognise under disc                                                    |
| n                                                |                                                                             |
| long time:  U.S. want it & wd apprec             |                                                                             |
| te                                               |                                                                             |
| it.                                              |                                                                             |
|                                                  | Reply:  ready to consider in wider framework:   but A & N.Z. must be taken  |
| into consult                                     |                                                                             |
| n                                                |                                                                             |
| & wishes of inhabitants shd. be ascertained.     |                                                                             |

 
 
2. 

## Control In Germany.  Publication Of White Paper.

 H.M. 
J.B.H. wants to publish W. Paper on Germany for H/C. debate next week. 
 
If no objn by F.O. or C.O.S., cd. it be publd? P.M. 
I shd. like to see. H.D. 
Bad tactics to give away in advance. P.M. 
Must come to Cab.  Wd. it be wise anyway: might reflect on ques. now 
being considered in Paris. O.S. 
Haven't studied it. P.M. 
Let J.B.W. tell his story in his speech. 



No publication. 
 
1. 
Egypt.   Revision of Treaty. 

 P.M. 
Wd. help E.B. if announcemt. of our readiness to evacuate E. were 
 
 
announced to-day. 
 
Text agreed with Sidky.  Read out text. 
 
Omits reference to timing.  Our view was we shd. take 5yrs. to  
 
 
complete.  Sidky says mention of that wd. destroy chance of 
 
 
agreemt.  D.P.M. nervous re implicn of getting out.  P.Q.'s 
 
 
likely re period:  we shd. have to say that is matter for 
 
 
negotiation. 
 
E.B. wants early announcement to help him in CFM. discns in Paris. H.M. 
Is there any written record that we assume it will take 5 yrs? 
 
 
Awkward if E. repudiates it. H.D. 
5 years is too long:  we shd. get out earlier.  We are borrowing  
 
 
money fr. E. to keep them there.  Doubt if in next 5 yrs. we 
 
 
shall need troops in E.  There are alternative locns - Cyrenaica, 
 
 
Kenya, Palestine. 
 
No need therefore - indeed advantage - in not mentiong. period. A. 
Last 2 lines of draft announcemt.  D.P.M. were specially concerned 
 
 
tht. we shd. get facilities for a base.  Is there understanding  
 
 
with Sidky tht. he will be easy on that? P.M. 
Tel: 795 from Campbell.  Don't wait until announcemt. seems to be  
 
 
forced out of us. 
 
 
Egyptian Del. likely to say we can evacuate in less than 5 yrs. 
 
Tel. 93 also. Tel. 803. 
 
Impn tht. E. wish to reach agreement. J.J.L. 
We didn't think originally of 5 yrs. - only sufft. time to w'draw in 
 
 
orderly fashion. 
 
Outrages v. B. troops.  Shdn't we at same time ask Sidky for  
 
 
assurances of protn for our troops? E.Sh. 
We've bn. considerg. our oil posn - Persia.  We regard Persian 
 
 
posn as more vulnerable than ever.  If trouble broke out 
 
 
(either of 2 foll. ways) our oil posn wd. be jeopardised:  relying 
 
 
on U.S.  The Russians have managed while talking re w'drawal 
 
 
in getting partnership with Persia for exploitn of oil in N. Persia. 
 
 
Our oil is in mid-Persia.  We've agreed tht. U.S. may seek  
 
 
concessions in S. Persia.  We now think tht. because of  
 
 
vulnerability of our mid-Persia oil we may have to revise our  
 
 
attitude twds. U.S. concession in S. Persia. 
 
My view therefore is we must be v. careful re M/East. 
 
|                                        |                                                                         | Highly dangerous to w'draw fr. Egypt w'out alternative location    |
|----------------------------------------|-------------------------------------------------------------------------|--------------------------------------------------------------------|
|                                        |                                                                         | because of vulnerability of our pos                                |
| n                                      |                                                                         |                                                                    |
| in Persia.                             |                                                                         |                                                                    |
|                                        | Shd. we not make it clear tht. we must have alternative location?       |                                                                    |
|                                        |                                                                         |                                                                    |
| P.M.                                   | We have done that - but we cdn't make it a cond                         |                                                                    |
| n                                      |                                                                         |                                                                    |
| precedent.                             |                                                                         |                                                                    |
|                                        | Our advice is:  tactical approach is say we are coming out, thus        |                                                                    |
|                                        |                                                                         | creatg. good atmosphere for discussg. alternative facilities.      |
|                                        |                                                                         | Only alternative is to fight it thro'.                             |
|                                        |                                                                         |                                                                    |
| A.B.                                   | Natural limit = time to establish alternative base elsewhere.  That     |                                                                    |
|                                        |                                                                         | is a sufficient safeguard.                                         |
|                                        |                                                                         |                                                                    |
| H.M.                                   | Satisfied provided there is good understanding betwn. the parties -     |                                                                    |
|                                        |                                                                         | preferably in writing.                                             |
|                                        | Don't be light-hearted re                                               |                                                                    |
| M/East.  We may lose ground all round. |                                                                         |                                                                    |
|                                        |                                                                         | Kenya not satisf. to C.O.S.  Palestine a liability.  Content with  |
|                                        |                                                                         | Cyrenaica, but what chance of getting it?                          |
|                                        | Don't be in too much of a hurry in giving away B. strategic interests.  |                                                                    |
|                                        |                                                                         |                                                                    |
| P.M.                                   | But in default of agreement with Egypt, it will be a source of weakness |                                                                    |
|                                        |                                                                         | not strength.                                                      |
|                                        | Understanding - all we can say is tht. this will make more likely a     |                                                                    |
|                                        |                                                                         | favourable outcome of the negotiations re stages & dates.          |
|                                        |                                                                         |                                                                    |
|                                        |                                                                         |                                                                    |
|                                        |                                                                         |                                                                    |
|                                        |                                                                         |                                                                    |

## 2. Bases In Pacific.

 P.M. 
Tel. 767 from E.B. in Paris. 
 
Can I offer lease in perpetuity?   Can't prejudice our posn re other 
 
 
Islands. 
 
Byrnes won't talk re genl. issue of defence in Pacific.  This therefore 
 
 
is all I can offer. 
 
Cab. view v. influence on loan:  see Halifax telegram expressg.  
 
 
contrary view. 
 
But D.P.M. v. unwilling to consider any island in isolation fr. genl. 
 
 
issue.  Unfortunately Evatt leaked to Press.  And U.S. have taken 
 
 
strong revulsion. 
 
Tarawa.  DPM. thght. it undesirable precedent on war memorial basis. 
 
 
Also opposed to cession of this island.  We also thght.  
 
 
inhabitants shd. be consulted. 
 
My impn - contrary to Byrnes - is tht. it is U.S. which are always  
 
 
asking us. A.B. 
No unilateral handing out of pieces of B. Empire. 
 
If at all, on collective basis with a design behind it. 
 
U.S. approachg. Austr. & N.Z. w'out our knowledge.  Can't play one 
 
 
off v. other. 
 
|                                                            |                                                                          | Reaction on U.S.S.R. - will increase their suspicion, of U.K.-U.S.    |
|------------------------------------------------------------|--------------------------------------------------------------------------|-----------------------------------------------------------------------|
|                                                            |                                                                          | ganging up.                                                           |
|                                                            |                                                                          |                                                                       |
| H.D.                                                       | Can't believe Byrnes in Paris can affect loan in W'ton.                  |                                                                       |
|                                                            |                                                                          |                                                                       |
| P.M.                                                       | But it's Truman's opinion.                                               |                                                                       |
|                                                            |                                                                          |                                                                       |
| N.B.                                                       | Tel. 53 - 2 Senators put down Motion on Bases.  Hal. subsequent          |                                                                       |
|                                                            |                                                                          | telegram endorses Byrnes' view.                                       |
|                                                            |                                                                          |                                                                       |
| E.Sh.                                                      | How does U.S. request [affect] fit in with U.N. Charter?                 |                                                                       |
|                                                            |                                                                          |                                                                       |
| G.H.                                                       | Cession isn't easy.  Not only Tarawa.  For it's admin                    |                                                                       |
| ve                                                         |                                                                          |                                                                       |
| centre of                                                  |                                                                          |                                                                       |
|                                                            |                                                                          | Gilberts, containg. 300.000 (tho' only 3.000 in Tarawa itself).       |
|                                                            | Sugg                                                                     |                                                                       |
| n                                                          |                                                                          |                                                                       |
| now made in Congress tht. we shd. cede W. Indies in return |                                                                          |                                                                       |
|                                                            |                                                                          | for loan.                                                             |
|                                                            | Doubt if we cd. cede w'out approval of Parlt.                            |                                                                       |
|                                                            |                                                                          |                                                                       |
| J.                                                         | Isn't this appeasement?                                                  |                                                                       |
|                                                            |                                                                          |                                                                       |
| P.M.                                                       | We were ready to talk about bases as part of general defence scheme.     |                                                                       |
|                                                            |                                                                          | But, on Evatt's leak, U.S. have said they won't talk re genl.         |
|                                                            |                                                                          | scheme.                                                               |
|                                                            | This is now put fwd. as isolated gesture.  Tarawa therefore is no more   |                                                                       |
|                                                            |                                                                          | than gesture.                                                         |
|                                                            | I still doubt if world opinion wd. regard it as magnanimous gesture at   |                                                                       |
|                                                            |                                                                          | this stage - more likely to be thought a bribe for the Loan.          |
|                                                            |                                                                          |                                                                       |
| E.Sh.                                                      | Formula? - open mind re cession, in consid                               |                                                                       |
| n                                                          |                                                                          |                                                                       |
| of genl. disc                                              |                                                                          |                                                                       |
| n                                                          |                                                                          |                                                                       |
| on Pacific                                                 |                                                                          |                                                                       |
|                                                            |                                                                          | defence.                                                              |
|                                                            |                                                                          |                                                                       |
| P.M.                                                       | We didn't give a negative reply:  we did make that contingent offer      |                                                                       |
|                                                            |                                                                          | to consider.                                                          |
|                                                            |                                                                          |                                                                       |
| N.B.                                                       | Agree - last minute cession now wdn't produce right effect.              |                                                                       |
|                                                            | Formula re lease for war memorial wd. be unobjectionable if any use.     |                                                                       |
|                                                            |                                                                          |                                                                       |
| P.M.                                                       | Say - it wd. have bn. useful to loan if B. cd. have announced tht. genl. |                                                                       |
|                                                            |                                                                          | ques. of bases was going well.  But we can't concede Tarawa           |
|                                                            |                                                                          | ad hoc.                                                               |
|                                                            |                                                                          |                                                                       |
|                                                            |                                                                          |                                                                       |
|                                                            |                                                                          |                                                                       |
|                                                            | 3.                                                                       | Germany:  White Paper on Work of Control Commission.                  |
|                                                            |                                                                          |                                                                       |
|                                                            |                                                                          |                                                                       |
| N.B.                                                       | Agree we can't get this out before Debate.  But some parts wh. cd.       |                                                                       |
|                                                            |                                                                          | usefully be publ                                                      |
| d                                                          |                                                                          |                                                                       |
| later - cdn't get into speech.                             |                                                                          |                                                                       |
|                                                            |                                                                          |                                                                       |
|    | H.M.    | Consider later.  Don't agree now to publish after    [Exit D.S. & N.B.    |
|----|---------|---------------------------------------------------------------------------|
|    |         | this debate - may provoke demand for                                      |
|    |         | another Debate.                                                           |


## 4. Germany:  Despatch Of Families To B.A.O.R.

 J.J.L. 
S. Douglas asks for early decision because U.S. and R. already doing 
 
 
the same. J.B.H. 
There are
 security risks in next 6 wks.  U.S. & R. not affected by that 
 
 
because their families there already. 
 
That, however, doesn't affect need for startg. prepns. 
 
J.W. 
Whence can we find the 120 odd teachers for Germany. J.B.H. 
E.W. has bn. consulted & says she can provide them. A.B. 
How often do men come home on leave? J.J.L. 
Once in 9 months. P.M. 
Doubtful about sending children. A.B. 
a) 
Manuf. of furniture etc.  I want the timber here. 
 
b) 
L.a.'s cdn't keep empty the houses left here.  Row if they 


requisitioned. 
 
c) 
U.S.A. & Russia much further away.  Cdn't we meet posn


by short leaves? J.B.H. 
Mil. commrs. satisfied tht. we must allow this to some extent. 
 
J.J.L. 
Wives already going out to Italy. P.M. 
Shd. we send children to country where there may be disorder,  
 
 
disease, famine. E.Sh. 
Deal with this by increased passage entitlement.  Wives going out for 
 
 
visits & men returning more often on leave. P.M. 
No objn to wives - object to children. A.B. 
Cdn't leave children behind for long. P.M. 
Scheme needs further thought. H.D. 
Finance v. sketchy.  Net cost in 1st year = £413.000. 

 

|        | J.J.L.                                     | Want to re-examine because figures have dropped by 33%.    |
|--------|--------------------------------------------|------------------------------------------------------------|
|        |                                            | Agreed: {L.P. to review with Service & other Ministers     |
|        |                                            |                                                            |
|        |                                            |                                                            |
|        |                                            |                                                            |
|        |                                            |                                                            |
| J.B.H. | This is one of the headaches for staffing. |                                                            |
|        |                                            |                                                            |

## 5. Parliament:  Payment Of Railway Fares To Peers.

 A. 
Can be limited to regular attendants - as is issue of petrol coupons. 
 
A.B. 
Agree in principle.  But  a) Test:  have attended 25% or will 
 
 
attend 25%. A. 
Those who attend are recorded.  Has bn. done for 2/3 yrs. for petrol 
 
 
allowances.  We know who they are.  Occasional arrivals 
 
 
wdn't get it.  If there is abuse we can revise the arrangemt. H.M. 
Same opporties of abuse by Members of H/C. 
 
V. little to ask as cpd. with what H/C. get. 
 
Some Peers (includg. some Labour Peers) can't easily pay own fares. 
 
How will H/C. take it?  H/Lds. is part of constitution:  doing v. well. 
 
 
Must let it work. H.D. 
Have resisted this up to date. 
 
Never part of our p'mme to do anything for H/Lds. except abolish it. P.M. 
Nor did our p'mme include increased salaries for M.P.'s. H.D. 
Didn't want this raised until M.P. salaries cleared. 
 
Our Peers have no grievance - they knew what they were in for. 
 
I wd. have tried to head off S of S. for Doms.  If Cab. want it,  
 
 
I will bow to that - provided tht. reasonable safeguards 
 
 
are devised. 
 
Legn will be requd.  Better do it with legn on H/C. alterations. A.G. 
Two years since A. raised it.  I was then satisf. there was a case for 
 
 
some recompense on hardship grds.  But I wasn't keen to take 
 
 
initiative in H/C. 
 
Satisfied myself it cd. be worked administratively to avoid abuse. J. 
Several Peers, tho' no grievance, suffer hardship. C.E. 
Disagree.  When we lose 2 bye-elections, the backwoodsmen will 
 
 
turn up.  We shall then be paying them for regular attendance. P.M. 
Wdn't they come at own expense? C.E. 
May be.  But why shd. we make it easier for them.  I don't favour 
 
 
hereditary Chamber & think we shd. do nothg. to make it work 
 
 
easier.  This proposal wdn't live for 5 mins. in a Party mtg. A. 
Backwoodsmen will come when they think it necessary, at own  
 
 
expense. 
 
And those M.P.'s whom I've consulted are not of C.E.'s view. T.W. 
Supported memo. J.W. 
       ..             .. 
 
H.M. 
Parlim. discn in Party mtg.  Before we say we've decided.  Risk 
 
 
leakage.   A. to take the soundings. 


Agreed:  subject to reasonably satisfy. receptn of plan by 

              Party mtg. 

## 6. National Industrial Conference.

 H.M. 
As in memo.  This will be acceptable to parties concerned - trouble if 
 
 
we tried to go further. 
 
Para. 3.  M/L. to initiate & provide main Secretary.  Might be another 
 
 
from Cab. Office. "Officials might join" - includg. Econ Section. 
 
Para. 5.  If these can be brought in thro' Confederation, it wd. be 
 
 
preferable.  Otherwise risk of "cross benches". 
 
Para. 7.  If we got to wider commercial issues, we might either ask 
 
 
F.B.I. to come or get their views thro' B/T. Cttee on wh. they 


are represented. 
 
Shd. offls. of T.U.C. & Confedn be seen before offl. commn sent. G.A.I. 
Last point - cd. be done thro' J.C.C.  Will consider.  Or see 
 
 
F. Watson & Citrine's successor. 
 
Para. 5.  Important to get Co-ops. in with Confederation.  They have 
 
 
bn. thinking of w'drawg. fr. Confedn.  That wd. be undesirable on  
 
 
genl. grds.  This may give chance to get genl. ques. put right. E.Sh. 
We have agreed in principle.  But want to say that it offers no solution 
 
 
to the problem of wage policy.  Still believe full emplt. can't be  
 
 
secured w'out direction of labour & wages policy.  This Confce
 
 
will have to face those issues. 
 
Also keep proper relation with Ministerial Steering Cttee. H.D. 
Must be careful what we do with Econ. Survey vis-à-vis this  
 
 
Conference. 
 
Care over para. 8 (b).  Mustn't give too much.  Wd. upset F.B.I. 
 

H.M. 
Dilemma:    to educate, they must have facts 

 give too much & in trouble with Parlt. & others (F.B.I.) 

                    Agreed. 
7. 
Legislative Programme. H.M. 
Directive:  no disclosure of forthcomg. legn w'out authy. 
 
M/N.I. has announced there is to be a Bill (this Parlt.) re abolition of 
 
 
poor law. 
 
Can't run the legve p'mme if Ministers act unilaterally in this way. 
 
8. 
Cabinet Programme. A.B. 
Payment of expenses of l.a. members.  Urgent.   Can it be taken 
 
 
this week? P.M. 
Yes. 

## 1. Policy Towards Germany.

P.M. 
First page gives E.B.'s line.  Remainder, arguments.  Alternatives 
 
 
on pp. 5-6. 
 
My own view - try for unified policy on E.B.'s line - a) because of 
 
 
end we wish to reach   b) because attempt to achieve W. Policy 
 
 
wd. involve us in expendre of resources we can't afford.  Diffies
 
 
of econ. posn in W. Zone.  Not in posn  to make W. Zone 
 
 
attractive as cpd. eastern zone & on that grd. alone we shd. go for 
 
 
federal centralised G. 
 
H.M. 
Recognise weak posn in wh. we've bn. driven. 
 
Will be realised Potsdam was disastrous & we shall have to move  
 
 
away fr. it. 
 
We are being pushed around - must try & get the lead.  R. getting 
 
 
the food:  repns makg. econ. nonsense of W. Zone:  we have 
 
 
unemplt., no food, & genl. chaos for wh. Comm. will blame 
 
 
U.K. policy.  We shd. spk. out more - we shd. tell G. publicly 
 
 
why these condns arise.  We shd. ask R. publicly how they  
 
 
defend their policy.  No use going on grumbling inter nos. 
 
We must stand out in G.  Aims  a) prevent further aggression but 
 
 
b) teach them to make success of their democracy.  We are  
 
 
doing somethg. on these lines but not takg. enough public credit 
 
 
for it. 
 
Agree with E.B. federal state with some central Govt. is right.  Believe 
 
 
he is a bit pessimistic re inevitability of Comm. triumph, even in 
 
 
E. Germany.  May over-estimate power of Comm. in G. 
 
No good dismembering - they wd. come together again in time.  Thus, 
 
 
allow an adequate Govt. at centre with strong federal Govts. in  

|                                               |                                                                           | Provinces.                                                       |
|-----------------------------------------------|---------------------------------------------------------------------------|------------------------------------------------------------------|
|                                               | My doubts are wtr. in interim we are pushg. ourselves fwd. sufficiently   |                                                                  |
|                                               |                                                                           | as champions of democracy.  Will educate, not only G., but Fr.   |
|                                               |                                                                           | and U.S.A. - possibly USSR. eventually.  Beware of drifting into |
|                                               |                                                                           | anti-Soviet policy as matter of course.                          |
|                                               |                                                                           |                                                                  |
| P.M.                                          | Diff. to separate this from Food Situation in G.                          |                                                                  |
|                                               | Alarming picture from Robertson.  Memo. read to Cabinet.                  |                                                                  |
|                                               |                                                                           |                                                                  |
| H.D.                                          | Disturbed for some time.  As H.M. said, worst of both worlds.             |                                                                  |
|                                               |                                                                           | Political.  Financial, too.                                      |
|                                               | As betwn. the 2 courses, more workg. out of econ. & finan.                |                                                                  |
|                                               |                                                                           | consequences.  Unified G. might cost us even more.               |
|                                               | Most powerful part of memo. is para. 10.  And I think it conclusive -     |                                                                  |
|                                               |                                                                           | we cdn't face those consequences.                                |
|                                               | Essential to avoid drifting into automatic anti-Sov. policy.  Don't share |                                                                  |
|                                               |                                                                           | the view exp                                                     |
| d                                             |                                                                           |                                                                  |
| at x/ on p.3.  Not long-term.  But agree with |                                                                           |                                                                  |
|                                               |                                                                           | followg. sentence that worse of all wd. be R. & G.               |
|                                                              |                                                                        | "Unified Germany" sometimes thght. like Nazi State.  Need to      |
|--------------------------------------------------------------|------------------------------------------------------------------------|-------------------------------------------------------------------|
|                                                              |                                                                        | decentralise as much as possible.  Dismemberment rejected         |
|                                                              |                                                                        | because wdn't be permanent.  We ought however to get G. to        |
|                                                              |                                                                        | accept a constit                                                  |
| n                                                            |                                                                        |                                                                   |
| with large amount of de-centralisation - incldg.             |                                                                        |                                                                   |
|                                                              |                                                                        | a Ruhr Province.  It is the highly centralised G. that wd. be our |
|                                                              |                                                                        | gt. danger.                                                       |
|                                                              |                                                                        |                                                                   |
| P.M.                                                         | Does anyone favour alternative?                                        |                                                                   |
|                                                              |                                                                        |                                                                   |
| A.B.                                                         | Don't follow F.O. memo.  Seems to ride 2 horses.  Doesn't support      |                                                                   |
|                                                              |                                                                        | Potsdam proposals for centralised G.   He argues for autonomous   |
|                                                              |                                                                        | Fed. units.  Will that give contented G!  Peaceful G. only if she |
|                                                              |                                                                        | gets constit                                                      |
| n                                                            |                                                                        |                                                                   |
| she wants.  Madness to suppose we can impose,                |                                                                        |                                                                   |
|                                                              |                                                                        | preserve unpopular Fed. system.                                   |
|                                                              | Memo. views R. thro' G.  I'm not afraid of R. comg. west.  They will   |                                                                   |
|                                                              |                                                                        | themselves be influenced:  & re-actions v. them set in as they    |
|                                                              |                                                                        | come in contact with sympathisers.                                |
|                                                              | Shock to R. troops when they came in contact with richer civilisations |                                                                   |
|                                                              |                                                                        | of w.                                                             |
|                                                              | History shows that, when primitive peoples conquer civilised, latter   |                                                                   |
|                                                              |                                                                        | absorbs former in the end.                                        |
|                                                              | Don't impose a constitution - agit                                     |                                                                   |
| n                                                            |                                                                        |                                                                   |
| v. it will be fostered by R. - o.k.                          |                                                                        |                                                                   |
|                                                              |                                                                        | if G. seeks federal system themselves.  In G., R. is promoting &  |
|                                                              |                                                                        | preaching centralisation.                                         |
|                                                              | Agree with H.M. regarding publicity for our p'essive policy in G.  No  |                                                                   |
|                                                              |                                                                        | substantial policy.                                               |
|                                                              | Our safety depends in the end on allowing G. to choose own system.     |                                                                   |
|                                                              |                                                                        | Insp                                                              |
| n                                                            |                                                                        |                                                                   |
| alone wd. prevent aggression - garrisons will bring trouble. |                                                                        |                                                                   |
|                                                              |                                                                        |                                                                   |
| J.                                                           | Agree re imposition.                                                   |                                                                   |
|                                                              | Approve E.B.'s policy.  This is not moment at wh. final decision can   |                                                                   |
|                                                              |                                                                        | be taken.                                                         |
|                                                              | Fear of Comm. spreadg. to west because starvation is its breeding      |                                                                   |
|                                                              |                                                                        | ground.  Only if decent cond                                      |
| ns                                                           |                                                                        |                                                                   |
| can be restored, Comm. tide will                             |                                                                        |                                                                   |
|                                                              |                                                                        | recede - as it's doing in Fr. & Czechosl.                         |
|                                                              | For the moment therefore temporise.                                    |                                                                   |
|                                                              | Agree with H.M. re public justif                                       |                                                                   |
| n                                                            |                                                                        |                                                                   |
| for our policy - & not our fault                             |                                                                        |                                                                   |
|                                                              |                                                                        |                                                                   |
| P.M.                                                         | Remember tht. attempts to get central admin                            |                                                                   |
| n                                                            |                                                                        |                                                                   |
| of G. have bn. stopped                                       |                                                                        |                                                                   |
|                                                              |                                                                        | by Fr.                                                            |
|                                                              |                                                                        |                                                                   |
| E.Sh.                                                        | All the logic is v. E.B.'s policy:  but it's only practical course.    |                                                                   |
|                                                              | Primary aim - prevent revival as mil. power.  To do that, brk. it up,  |                                                                   |
|                                                              |                                                                        | being econ. chaos & starvation.                                   |
|                                                              | Secondary aim - create peaceful democr. nation.  For that you need     |                                                                   |
|                                                              |                                                                        | integration not dismemberment.                                    |
|                                                              | Implicit in memo. to attempt to prevent R. fr. dominatg. Europe.       |                                                                   |
|                                                              |                                                                        | Doubt wtr. pol. penetr                                            |
| n                                                            |                                                                        |                                                                   |
| by R. can go as far as feared.  Further                      |                                                                        |                                                                   |
|                                                              |                                                                        | she goes, greater her diffy.  She has fish to fry in M/E. & F/E.  |
|                                                              |                                                                        | If she disperses her forces, she won't succeed.   R. has less     |
|                                      |
|--------------------------------------|
| n                                    |
| than we have.  They will event. find |

 
 
they're cuttg. little ice with people of the countries concerned. 
 
Purpose of P. Protocol was centralised economic G.  Find it diff. to 
 
 
reconcile that with Fed. political G. 
 
Another way out - w'draw from W. Zone. 
 
But agree, pro tem, we must try E.B.'s policy.  And force R. to realise  
 
 
the consequences of Potsdam declaration. J.J.L. 
Support idea of Fed. unified Germany. 
 
If we haven't publicised our policy, it's because we haven't had one. 

|     |     | We've bn. in interim period.    |
|-----|-----|---------------------------------|

 
Federal - not long since parts of G. had own Parlts. 

|                                                       | This policy puts us right with original Potsdam Decl          |
|-------------------------------------------------------|---------------------------------------------------------------|
| n                                                     |                                                               |
| .                                                     |                                                               |
|                                                       | Agree with A.B. re Russia - consequences of her internal diff |
| ies                                                   |                                                               |
| .                                                     |                                                               |
|                                                       | Early dec                                                     |
| n                                                     |                                                               |
| re occupying troops.  Believe we cd. usefully remain. |                                                               |

 

H.McN. 
E.B. must ride 3 horses not 2.  Scheme wh. a) enables us to admin  
 
 
our Zone  b) provides for eventual unificn   c) doesn't shut the  
 
 
door on R. & French.  Fr. have opposed pol. unificn:  R. are  
 
 
makg. econ. unificn impossible. 

 
Sloganising p'essive democracy won't get us home - unless we have 

|     |     | tools for econ. stability.    |
|-----|-----|-------------------------------|

 
What we have is worst of  both worlds.  R. are pol. crucifying us by  
 
 
denying econ. unity to G.  Declare, if you like, that it's R. wh. 
 
 
is not enforcg. P. Decln. 
 
This is a temporising policy. 
 

|                                                   | J.B.H.    | Hope we don't accept control thro' Zone Commrs. of decentralised    |
|---------------------------------------------------|-----------|---------------------------------------------------------------------|
|                                                   |           | Provinces - w'out control at centre.  Must go on pressing for       |
|                                                   |           | central admin                                                       |
| n                                                 |           |                                                                     |
| - & review level of industry if they don't agree: |           |                                                                     |

 
 
cd. also export high-priced commies vice low price coal. 
2. 
Food Supplies for Germany. 

 P.M. 
Referred to facts.  Read telegram from Ripman to Turner.  
 
 
W'ton Tel. 2850. 
 
Prev. posn.  Given 200.000 t. (mainly to UNRRA):  have made further  
 
 
economies:  & acc. to M/F. shall only just get thro' even if we get 
 
 
U.K. supplies from U.S.A. & collect early harvest. 
 
M'while U.S. disposed to send what they have elsewhere than to 
 
 
L.F.C. countries. B.S. 
Recent figures of allocations.  Not understood. 
 
Austr. & Canada sendg. all they can to L.F.C. countries. 
 
U.S. determined that India & G. shall be supplied fr. U.K. sources. 
 
Latest figures of stocks. 
 
My concln:  we can't afford to send any more abroad.  Can't divert 
|                                     |                                                                                      | any more coarse grains because of effect on our livestock.  May    |
|-------------------------------------|--------------------------------------------------------------------------------------|--------------------------------------------------------------------|
|                                     |                                                                                      | have to make further cuts in animal foods.                         |
|                                     | Read out advice from Rank.                                                           |                                                                    |
|                                     |                                                                                      |                                                                    |
| P.M.                                | Ital. Tel. 2861, on the other hand.                                                  |                                                                    |
|                                     | If we do nothing, we shall have intolerable pressure - if we get nothg.              |                                                                    |
|                                     |                                                                                      | for G. and have it forced out of us.                               |
|                                     | What of barley saved by beer cut.                                                    |                                                                    |
|                                     |                                                                                      |                                                                    |
| J.B.H.                              | Requirements of B. Zone of Germany:-                                                 |                                                                    |
|                                     | 150.000 t.   during May   to m'tain distrib                                          |                                                                    |
| n                                   |                                                                                      |                                                                    |
| in  June.                           |                                                                                      |                                                                    |
|                                     | 185.000 t.       ..      June July.                                                  |                                                                    |
|                                     | 170.000 t.       ..      July                                     August. G. harvest |                                                                    |
|                                     |                                                                                      |                                                                    |
|                                     | 120.000 t.       ..      August                                 Sept.                |                                                                    |
|                                     | 30/50.000 t.    ..      Sept.                                                        |                                                                    |
|                                     |                                                                                      | 675.000 t. in 5 months.                                            |
|                                     | Supply:  only 20.000 fr. U.S.A., included in above figure.                           |                                                                    |
|                                     | If pooling adopted, a much higher share wd. come to B. Zone. -                       |                                                                    |
|                                     |                                                                                      | 92.000 t. out of total alloc                                       |
| n                                   |                                                                                      |                                                                    |
| for Germany.                        |                                                                                      |                                                                    |
|                                     |                                                                                      |                                                                    |
| T.W.                                | U.S. persist in believing we have large stocks.                                      |                                                                    |
|                                     | Whenever we make consumpt                                                            |                                                                    |
| n                                   |                                                                                      |                                                                    |
| economies, they at once ask who can |                                                                                      |                                                                    |
|                                     |                                                                                      | have the savings.                                                  |
|                                     | Can't we make U.S. realise what our stock pos                                        |                                                                    |
| n                                   |                                                                                      |                                                                    |
| is.                                 |                                                                                      |                                                                    |
|                                     |                                                                                      |                                                                    |
| P.M.                                | Give them the facts re our stocks & needs:  put the pos                              |                                                                    |
| n                                   |                                                                                      |                                                                    |
| in B. Zone:                         |                                                                                      |                                                                    |
|                                     |                                                                                      | and face them with the situation.  If our assumpt                  |
| ns                                  |                                                                                      |                                                                    |
| go astray,                          |                                                                                      |                                                                    |
|                                     |                                                                                      | we may be in comparable pos                                        |
| n                                   |                                                                                      |                                                                    |
| .                                   |                                                                                      |                                                                    |
|                                     |                                                                                      |                                                                    |
| N.B.                                | Vital pt:  U.S. view of our stock pos                                                |                                                                    |
| n                                   |                                                                                      |                                                                    |
| .  Cl. And. will decide:  he        |                                                                                      |                                                                    |
|                                     |                                                                                      | believes tht. at our worst we shall have 10 wks. stock & thinks    |
|                                     |                                                                                      | we cd. with 8.  What he is after is an offer v. guarantee of       |
|                                     |                                                                                      | replacemt. in Aug/Sept.  Offer that.                               |
|                                     | Shd. also press for pooling in 3 Western Zones.                                      |                                                                    |
|                                     |                                                                                      |                                                                    |
| P.M.                                | Shd. say also tht. India shd. have same priority as Japan for F/East.                |                                                                    |
|                                     |                                                                                      | supplies.                                                          |
|                                     | Full factual statement - for comm                                                    |                                                                    |
| n                                   |                                                                                      |                                                                    |
| by me to Truman.                    |                                                                                      |                                                                    |
|                                     |                                                                                      |                                                                    |
| E.Sh.                               | Have got nowhere with telegrams.  Wd. it not be better for senior                    |                                                                    |
|                                     |                                                                                      | Minister (e.g. L.P.) to go out & put it in person?                 |
|                                     |                                                                                      |                                                                    |
| A.B. &                              |                                                                                      |                                                                    |
| C.E.                                | Agreed.                                                                              |                                                                    |
|                                     |                                                                                      |                                                                    |
| H.M.                                | Instinct - temp                                                                      |                                                                    |
| y                                   |                                                                                      |                                                                    |
| diversion v. guarantees. - Auth     |                                                                                      |                                                                    |
| d                                   |                                                                                      |                                                                    |
| to deal on this basis:              |                                                                                      |                                                                    |
|                                     |                                                                                      | no offer in advance.                                               |
|                                     | Prob. right line is to have a good row with U.S. first.  May I be free to            |                                                                    |
|                                     |                                                                                      | do this.                                                           |

A.B. 
? Publish abridged version of Robertson's report. P.M. 
Facts perhaps - not his report.  Cab. Off. to co-ordinate prepn of brief 
 
 
for H.M. 


Agreed:  H.M. to go on Mission to Truman. 
 

## 1. Parliament.

 H.M. 
Business for next week. 

 

## 2. Railway Fares Of Peers.

 H.M. 
A. came to Party mtg;  & was so conciliatory tht. no objn raised. H.D. 
Now verified can be done w'out legn. 
 
A. 
When can I announce?  -  Tuesday week? H.D. 
Simultaneous in both Houses. 
 

## 3. Members Of Parliament:  Salaries Of Officers In H/Lords .

 A. 
Ammon - senior Whip in H/Lds.  Cd. he have more? 
 
 
Agreed:  A. to consider with H.D. 

 

## 4. M.P.'S  -  B/Trade Working Parties.

 H.M. 
Diffce betwn. R.S.C. and me as Leader of House (not as actg.  
 
 
President of B/T.). 
 
In genl. have bn. pressing T.U.'s to let their working officials become 
 
 
M/P's.  Unions say this is diff. if we are barring T.U. offls. from 
 
 
T.U. work, such as this, when an M.P. 
 
Agree therefore tht. Minister shdn't choose M.P.'s:  but see no objn if 
 
 
M.P. nominated by one of the industrial parties. 
 
Not much in first point - political views.  More in 2nd - participn in  
 
 
subs. debate.  That cd. be met by telling them this was a T.U.  
 
 
job:  shdn't disclose inside story of workg. party in subs. debate  
 
 
in H/C.  Cd. even ask them not to speak at all:  tho' I think that 
 
 
wd. go too far.  3rd point - interference with Parly duties:  for the 
 
 
man's own conscience. 
 
In genl. don't interfere with T.U. choice. G.B. 
Accept that.  But this isn't ordinary T.U. work.  Undesirable for spirit 
 
 
of w. party tht. one member shd. be able to spk. in subsequ. H/C. 
 
 
debate. 
 
Work:  2 days a week, mainly out of Ldn.  Linoleum:  Scotl. & Lancs. : 
 
 
might involve 3 days a week, mainly out of Ldn.   
 
Can't believe Union can't find another repve. 
|                                                              | H.D.                                                                 | Not matter of v. gt. importance.  Theory in B/T:  practical argument of    |
|--------------------------------------------------------------|----------------------------------------------------------------------|----------------------------------------------------------------------------|
|                                                              |                                                                      | L.P. is stronger.  Put Hewitson on.                                        |
|                                                              |                                                                      |                                                                            |
| G.A.I.                                                       | Support H.M.  Don't limit choice of Union rep                        |                                                                            |
| ves                                                          |                                                                      |                                                                            |
| .                                                            |                                                                      |                                                                            |
|                                                              | Time spent on Cttees & R. Comm                                       |                                                                            |
| ns                                                           |                                                                      |                                                                            |
| - just as much - no obj                                      |                                                                      |                                                                            |
| n                                                            |                                                                      |                                                                            |
| raised to                                                    |                                                                      |                                                                            |
|                                                              |                                                                      | that.                                                                      |
|                                                              | Wd. endanger chances of preventing T.U.'s to allow active members to |                                                                            |
|                                                              |                                                                      | go into Parlt.                                                             |
|                                                              |                                                                      |                                                                            |
| W.W.                                                         | R. Comm                                                              |                                                                            |
| ns                                                           |                                                                      |                                                                            |
| etc., sit in Ldn.  Point out that this job takes them out of |                                                                      |                                                                            |
|                                                              |                                                                      | Ldn.                                                                       |
|                                                              |                                                                      | Needs watching - if too many away.                                         |
|                                                              |                                                                      |                                                                            |
| P.M.                                                         | No support for B/T. view?       No.                                  |                                                                            |
|                                                              |                                                                      | Decided in favour of H.M.                                                  |
|                                                              |                                                                      |                                                                            |
|                                                              |                                                                      |                                                                            |

## 5. Expenses Of Members Of Local Authorities.

 P.M. 
Case for enquiry - unless M/A point is too urgent. A.B. 
Urgent not only because of that but also because nec. for me to make  
 
 
some statemt. on genl. policy at next Party mtg. 
 
Posn in Scotland differs - some liberty to pay remun. time.  Diff. for  
 
 
him to refuse it for new Hosp. Boards. 
 
Cd. be included in Block Grant Bill next Session.  Avoid separate Bill. 
 
 
Cdn't deal there, however, with Hosp. Reg. Bds.  Must do that on 
 
 
Health Bill.  If we do that, imposs. to resist some demand for  
 
 
l.a. mtgs. 
 
Strong argument for enquiry - functions of l.a.'s in melting pot. 
 
Loss of trading functions etc.  Shd. be examd with that in view. 
 
Cdn't resist paymt. for boros'.  Also resist Exch. grant. 
 
Conclude  a) authy to accept amendmt. re
 Reg. Bds.  b) enquiry into 
 
 
genl. ques. J.W. 
Agreed with this concln. 
 
Case for enquiry.  But accept principle re new Health Services. A.G. 
Have the Ty. Cttee under 6(b). H.M. 
Feeling in Party is v. strong.  Accept principle with regret.  Value of  
 
 
tradn of unpaid public service in Local Govt.  But with growth of  
 
 
l.g. and wide areas some change is prs. inevitable.  Appt. Cttee 
 
 
before Party Confce:  they can then be told it is under considn: 
 
 
and can pass a resoln if they like. 
 
Enquiry shd. also go into cumulative paymts.  E.g. in Scotland:  fares, 
 
 
subsistence and loss of remunerative time.  Goes pretty far.  Wd. 
 
 
prefer somethg. simple & modest.  Safeguards v. abuse also. 
 
Hosp. Bds.  Try to find a precedent pro tem. & put it in Bill on that basis. 
 
| H.D.            | Support both a) and b) in para. 6.                                      |
|-----------------|-------------------------------------------------------------------------|
|                 | Cdn't agree to Exch. grant under (a).  If Cab. agree, that shd. be made |
|                 |                                                                         |
|                 | That is enough for Party conference.                                    |
|                 | Para. 6(b):  will be an easy enquiry:  plenty of precedents.  Can be    |
|                 |                                                                         |
|                 |                                                                         |
| T.W.            | Support 6(a).  Share H.M.'s feelings.                                   |
|                 | Once concede this to l.a.'s, it will spread to other bodies e.g. Co.    |
|                 |                                                                         |
|                 | Need for care over this.                                                |
|                 |                                                                         |
| J.              | Dangers of spread.  Rep                                                 |
| ns              |                                                                         |
| re              | Magistrates.  Most cases employers allow                                |
|                 |                                                                         |
|                 |                                                                         |
| n               |                                                                         |
| will be appt    |                                                                         |
| d               |                                                                         |
| to consider pos |                                                                         |
| n               |                                                                         |
| of Magistrates. |                                                                         |
|                 |                                                                         |
| G.A.I.          | Support 6(a).                                                           |
|                 | Hope it will be loss of remunerative time - not fee basis.              |
|                 | But wd. have to be extended to many M/L. boards etc.                    |
|                 | Need for great care.                                                    |
|                 |                                                                         |
|                 |                                                                         |
|                 |                                                                         |

## 6. India:  Constitutional Problem.

 P.M. 
Danger of a break.  May be at wk. end.  Wd. prefer a Cab. before  
 
 
statement made.  But that may not be poss.  Want therefore to  
 
 
tell Cab. how things have bn. going. 
 
3 tier-system.  All-India organisation:  groups:  provinces.  May be  
 
 
somethg. like tht. will be accepted.  Need for some agreemt. re


skeleton outline constitn before any constituent body appointed. 
 
Also need to form interim Govt. in which all Parties co-operate. 
 
Hope we may get some agreement.  If not, however, need for early 
 
 
statement.   
 
 
May be tht. they wd. accept it from us, even tho' rejected in 
 
 
Confce.  Our statement must therefore be v. careful. 
 
Vital to avoid leakage.  May therefore be nec. to call Cab. at short 
 
 
notice. 
 
Also proposed another group for Indian States. 
 
Elab. & diff.  -  will need much working out. H.D. 
Are we trying to get them to accept it.  And if they reject, is it that 
 
 
scheme we will announce? 
 
If so, cdn't a Cttee handle it? P.M. 
No.  Must be a Cab. decn.  V. big ques.  Also accords with basis of  
 
 
directive to Mission. 


Cab. Off. to collect week-end addresses.          [Exit  A.H. 

## 7. Peace Conference:  Situation At C.F.M. Paris.

|                                                   | P.M.                                                              | Moscow decision:  4 F. Ministers to prepare drafts of Peace Treaties    |
|---------------------------------------------------|-------------------------------------------------------------------|-------------------------------------------------------------------------|
|                                                   |                                                                   | & when prep                                                             |
| n                                                 |                                                                   |                                                                         |
| complete wider conf                               |                                                                   |                                                                         |
| ce                                                |                                                                   |                                                                         |
| on 1/5 of main                                    |                                                                   |                                                                         |
|                                                   |                                                                   | belligerents.  Inconsistency.                                           |
|                                                   | May 1                                                             |                                                                         |
| st                                                |                                                                   |                                                                         |
| come & gone.  Govts have prep                     |                                                                   |                                                                         |
| d                                                 |                                                                   |                                                                         |
| to meet - e.g. Doms.                              |                                                                   |                                                                         |
|                                                   | M. takg. line - no conf                                           |                                                                         |
| ce                                                |                                                                   |                                                                         |
| until agreemt. on drafts.  Others take opp.       |                                                                   |                                                                         |
|                                                   |                                                                   | view.                                                                   |
|                                                   |                                                                   | Also considered Conf                                                    |
| ce                                                |                                                                   |                                                                         |
| cd. propose amendmts.  Smaller Govts.             |                                                                   |                                                                         |
|                                                   |                                                                   | resent not havg. had better show, esp. since Fr. are in C.F.M.          |
|                                                   | Pressure of Doms. tht. Conf                                       |                                                                         |
| ce                                                |                                                                   |                                                                         |
| be called.  Risk that R. might stand out.         |                                                                   |                                                                         |
|                                                   | Read telegrams from E.B. re Byrnes' proposal at C.F.M. for callg. |                                                                         |
|                                                   |                                                                   | Conf. on 15/6.                                                          |
|                                                   |                                                                   | Asks for auth                                                           |
| y                                                 |                                                                   |                                                                         |
| to support B. in principle & insist on reasonable |                                                                   |                                                                         |
|                                                   |                                                                   | interp                                                                  |
| n                                                 |                                                                   |                                                                         |
| of Moscow decision.                               |                                                                   |                                                                         |
|                                                   |                                                                   |                                                                         |
| A.B.                                              | Wish we had taken the initiative.                                 |                                                                         |
|                                                   |                                                                   |                                                                         |
| P.M.                                              | E.B. wanted to prevent sudden breach with Soviet Govt.            |                                                                         |
|                                                   |                                                                   |                                                                         |
| y                                                 |                                                                   |                                                                         |
| to E.B.                                           |                                                                   |                                                                         |
|                                                   |                                                                   |                                                                         |
|                                                   |                                                                   |                                                                         |

## 8. Commercial Policy.

 H.M. 
As in memo. H.D. 
Wtr. we get Loan or not will make vital diffce to our comm. policy. 
 
Will affect time factor enormously.  Until we get Loan can't  
 
 
begin unfreezing. 
 
 
Emphasis on that. 
 
Ec. & Soc. Council Cttee - code of good commercial behaviour.  Must 
 
 
reserve our posn pending Loan.  If we don't get it, we shall have 
 
 
to be highly restrictive. 
                 y/ This draft - esp p.4 paras (d) & (e) - needs stiffening.  Cd. I clear that 
 
with B/T. - if genl. view accepted. M. 
Agree a matter of timing. 
 
Even if we didn't get Loan breathg. space wd. have to be longer - 
 
 
might be years - but this sort of agreemt. wd. still be to our 
 
 
benefit long-term. E.Sh. 
Agree in genl.   But is it wise to press for Confce in Europe? H.M. 
Big offl. team. E.Sh. 
That's another argument for deferring. 
 
If we don't get Loan reconsider comm. policy.  I believe tht. even  
 
 
if we do get it, it doesn't follow we shd. always play in with U.S. 
 
 
For they don't link it up with Tariff Policy - & that is the vital 
 
 
point in comm. policy.  U.S. want to export, & extend credits, to 
|                                   |                                                                        | all pts. of world:  & forget tht. for repaymt. they must revise their    |
|-----------------------------------|------------------------------------------------------------------------|--------------------------------------------------------------------------|
|                                   |                                                                        | tariff policy.                                                           |
|                                   | Need to delay.  To reconsider policy.                                  |                                                                          |
|                                   | Suggest therefore  a) don't insist on Europe.                          |                                                                          |
|                                   |                                                                        |                                                                          |
|                                   |                                                                        |                                                                          |
| A.                                | Doms. expect prelim. Dom. Conf                                         |                                                                          |
| ce                                |                                                                        |                                                                          |
| in July.  Nash wants to know wtr. |                                                                        |                                                                          |
|                                   |                                                                        | still on.  Memo. recommends it.  Will Cab. agree to that?                |
|                                   |                                                                        |                                                                          |
|                                   |                                                                        |                                                                          |
| N.B.                              | Supported H.M.'s memo.                                                 |                                                                          |
|                                   | Advantages in p'ponement.  But avoid lettg. ques. cool off in U.S. or  |                                                                          |
|                                   |                                                                        | tariffs startg. up in Europe.                                            |
|                                   |                                                                        |                                                                          |
| A.B.                              | Relations with Peace Conf                                              |                                                                          |
| ce                                |                                                                        |                                                                          |
| ?                                 |                                                                        |                                                                          |
|                                   |                                                                        |                                                                          |
| H.M.                              | Can't help that.                                                       |                                                                          |
|                                   |                                                                        |                                                                          |
| A.B.                              | Risk of bargaining.                                                    |                                                                          |
|                                   | Aim at getting Peace Treaties first.                                   |                                                                          |
|                                   |                                                                        |                                                                          |
| H.D.                              | That is consistent with proposal for delay.                            |                                                                          |
|                                   |                                                                        |                                                                          |
| N.B.                              | Anyway, we agree with U.S. on Peace Treaties.                          |                                                                          |
|                                   |                                                                        |                                                                          |
| G.H.                              | We concur in draft.  But shd. say - much concern in Colonies re        |                                                                          |
|                                   |                                                                        | preferences & group purchase.  Essential to get a Commonw.               |
|                                   |                                                                        | view on these ques.                                                      |
|                                   |                                                                        |                                                                          |
| H.D.                              | Machinery to tie up interests of economic Dpts.  Need for integration. |                                                                          |
|                                   | x/ Leave it for further consult                                        |                                                                          |
| n                                 |                                                                        |                                                                          |
| .                                 |                                                                        |                                                                          |
|                                   |                                                                        | Econ. Dpts. must be in the lead.                                         |
|                                   |                                                                        |                                                                          |
|                                   |                                                                        |                                                                          |
|                                   |                                                                        |                                                                          |

## 9. The U.S. Loan.

 P.M. 
If Loan fails, shall we be ready with alternative plans at once? H.D. 
Yes:  w'in 48 hours. E.E.B. 
"War Book" drill is in advanced prepn. J.J.L. 
Cd. H.M. give Halifax indicn of mood of country. 

          [Exit  Marquand. 
 
10. Palestine. P.M. 
Handed round message from President Truman. 
 
| H.M.                                               | An optimistic time-table.                                             |
|----------------------------------------------------|-----------------------------------------------------------------------|
|                                                    |                                                                       |
| A.B.                                               | Good that U.S. are involving themselves in a further step.            |
|                                                    |                                                                       |
| N.B.                                               | This procedure will induce J. & A. to put views in most extreme form. |
|                                                    | I wd. prefer 2 Govts. to confer first.  They will have to impose dec  |
| n                                                  |                                                                       |
| in                                                 |                                                                       |
|                                                    |                                                                       |
|                                                    |                                                                       |
| E.Sh.                                              | Disagree with N.B.  Wd. like time-limit extended.                     |
|                                                    |                                                                       |
| P.M.                                               | a)                                                                    |
|                                                    |                                                                       |
|                                                    |                                                                       |
| G.H.                                               | Yes:  but further boat-load of illegal immigrants on its way.         |
|                                                    |                                                                       |
| P.M.                                               | b)                                                                    |
|                                                    | c)                                                                    |
|                                                    |                                                                       |
|                                                    |                                                                       |
| y                                                  |                                                                       |
| also to talk to E.B.  Can't therefore give immed.  |                                                                       |
|                                                    |                                                                       |
|                                                    |                                                                       |
| H.D.                                               | Remind Harriman tht. our Palestine policy must depend on U.S.         |
|                                                    |                                                                       |
|                                                    |                                                                       |
| A.B.                                               | Don't turn the heat on yet.  They are wading in.                      |
|                                                    |                                                                       |
| G.H.                                               | Material prep                                                         |
| d                                                  |                                                                       |
| for E.B.'s proposed talks with Byrnes.  Thought we |                                                                       |
|                                                    |                                                                       |
|                                                    |                                                                       |
| H.M.                                               | Wait until Cab. Monday when E.B. here.                                |
|                                                    |                                                                       |
| P.M.                                               | Will send interim reply.                                              |
|                                                    |                                                                       |

 

## 11. Prosperity And Production Campaign.

 A.B. 
Production Meetings.  a) Doubt efficacy   b) Doubt wisdom of puttg. 
 
 
burdens on Ministers.  P.M. certainly doing too much. 
 
Shd. this campaign be contd below Reg. level. H.M. 
I've done only one - another to come.  Thought it was helpful. 
 
True exhortn can be overdone.  But public like to be talked to. 
 
Gather other Ministers felt they were good.  Heard A.B.'s was  
 
 
spec. successful. 
 
Perhaps cd. bring it to an end after this [round] series. 
 
Posters are good:  have approved some to-day.  Continue with printed 
 
 
publicity. 
 

G.A.I. 
Rpts. suggest mtgs so far have bn. valuable. 
 
Agree we're doing too much.  Awkward to cancel those already  
 
 
planned. 
 
A.B. 
Make more use of back-benchers. H.M. 
Spkers' notes. 
 
Will try to put brake on - for Ministers. 

## 1. Paris Meeting Of Council Of Foreign Ministers.

 P.M. 
Rpt. fr. E.B.  Things easing up.  M. w'drew demand for Tripol. - 
 
 
ready to give trusteesh. to Italy. 
 
 
Our pledge to Senussi.  E.B. therefore proposed we shd. have 
 
 
t. over Cyrenaica. 
 
Crux now:  Trieste.  R. demandg. it for Yugoslavia - wd. bring iron 
 
 
curtain down to Adriatic:  wd. offend Italy deeply.  Agreed 
 
 
Fiume & Pola shd. go to Yugoslavia.  E.B. will agree either to 
 
 
Fr. proposal or to U.S. proposal on Boundary Commn.  Or if 
 
 
suggested by another wd. accept internatl regime in Trieste. 
 

 
Peace Conference. 

 
M. still takg. the narrow line.  Offends Doms. & others.  Moscow 
 
 
decln was ambiguous as incldg. both completion & date. 
 
E.B. wd. prefer to break on Trieste rather than procedure. A.B. 
If there is a break, better have it on the Conference point, not Trieste. 
 
Don't want to be identified with view that C.F.M. forcing their views 
 
 
on other countries. 
 
 
Offence to Doms. N.B. 
No more brk-downs on procedure. 
 
Cdn't get an Ital. Govt. to sign Treaty with R. view of Trieste. H.D. 
Importance of Treaty with Italy. 
 
Trieste - v. open ques. on the merits.  Yugoslav case can't be  
 
 
dismissed. 
 
Not a good brkg. point surely.
 
 
Austr. took view that Yugosl. shd. have Trieste. 
 
Wdn't make much diffce to iron curtain.  It wd. come down 5 miles 
 
 
behind the port anyhow. A. 
This isn't really procedure - it's principle.  Doms. say belligerents  
 
 
shd. have a shot at this - can't dismiss that claim as procedural. 
 
We shd. have wide support, outside C.F.M., for resistg. idea that  
 
 
C.F.M. decisions are to be rubber-stamped by others. P.M. 
E.B. point tht. on Moscow decn  M. is prob. right. J. 
Trieste.  Artery into Austria, Hungary etc., shd. be preserved.  Secure 
 
 
that:  sovereignty doesn't matter much. N.B. 
Italy wants early Treaty:  but wd. prefer modified Armistice rather than 
 
 
Treaty giving Trieste to Yugosl. 

 
E.B. thinks Byrnes toying with idea of Treaties w'out Russia.  This 

|                                     |                                                                            | influences his attitude twds. this ques.    |
|-------------------------------------|----------------------------------------------------------------------------|---------------------------------------------|
|                                     |                                                                            |                                             |
| A.B.                                | World support for internationalising flash points like Trieste or Tripoli. |                                             |
|                                     |                                                                            |                                             |
| H.D.                                | Italy not doing too badly if they get Tripolitania.                        |                                             |
|                                     | Worried about anti-Yugosl. attitude twds. Trieste.                         |                                             |
|                                     |                                                                            |                                             |
| N.B.                                | E.B. doesn't exclude internationalisation of Trieste.                      |                                             |
|                                     |                                                                            |                                             |
| P.M.                                | While we wd. endorse internat. port in Trieste, we don't think it of       |                                             |
|                                     |                                                                            | overwhelmg. import                          |
| ce                                  |                                                                            |                                             |
| .  What we do think of vital import |                                                                            |                                             |
| ce                                  |                                                                            |                                             |
| is tht.                             |                                                                            |                                             |

 
 
Peace Treaties shd. be considered by belligerent Powers. 
 
 
Will communicate above concln to E.B. 
Ruhr. 
 

| P.M.                                                            | As in note.  Enquiry into demilitarisation.              Agreed.       |
|-----------------------------------------------------------------|------------------------------------------------------------------------|
|                                                                 |                                                                        |
| E.Sh.                                                           | Disc                                                                   |
| n                                                               |                                                                        |
| with U.S. Emb. re coal.  They said were thinkg. of sending food |                                                                        |
|                                                                 |                                                                        |
|                                                                 |                                                                        |
|                                                                 |                                                                        |
|                                                                 |                                                                        |
| N.B.                                                            | Plan for getting coal for Italy & a little for France v. food for Ruhr |
|                                                                 |                                                                        |

 

P.M. 
Let La Guardia look after Italy.  No sympathy for Italy. 

 

E.Sh. 
Wd. like to go & look at Ruhr - after 3rd Rdg. of Bill.        Agreed. 

 
Palestine. P.M. 
As in note of mtg. with E.B. 
 

G.H. 
Also examn by Anglo-U.S. experts. 

 P.M. 
Will see B. members of Anglo-U.S. Cttee. 
Egypt. P.M. 
As in note. 
U.S. Draft Treaty for Germany. P.M. 
As in note. 
A.B. 
Don't want to be commd to keeping garrison in G. for 25 yrs. 
U.S. Demand for Bases. 

 P.M. 
As in note. 

 
M'while, leakage:  & I may be asked P.Q. 
China. P.M. 
As in note. 


Reparations. P.M. 
As in note. 
2. 
Palestine (resumed). 
 

| G.H.                          | Agreed certs. available for immigr   |
|-------------------------------|--------------------------------------|
| n                             |                                      |
| in Apl/May shd. be applied to |                                      |
|                               |                                      |
|                               |                                      |
|                               |                                      |
|                               |                                      |
|                               |                                      |
|                               |                                      |
|                               |                                      |
|                               |                                      |
| P.M.                          | Cdn't you anticipate the quota?      |
|                               | Must keep things quiet pro tem.      |

 
3. 
Sarawak. 

 G.H. 
Rpt. fr. M.P.'s.   
 
 
Opinion locally  a)  preponderate:  cession best for country 

                 b)  cession on principle 

                 c)  continuance of Brooke rule. 
 
Enough opinion in favour to warrant submn to Council Negri 15/6. 
 
Propose confirm to Rajah tht. we will go ahead if Council confirm. 

 
Must telegraph to-day. 

|     |     |     | Agreed.    |
|-----|-----|-----|------------|

 
4. 
India. 

 P.M. 
Break-down in negotiations.  Mission will now, in a few days, put 
 
 
out their proposals as their own.  Re-described proposals for 
|                     |                                                                         | benefit of E.W.    |
|---------------------|-------------------------------------------------------------------------|--------------------|
|                     | Seems tht. they got v. near to agreement.  Might therefore accept it if |                    |
|                     |                                                                         | put out by us.     |
|                     | Will bring to Cab. on morning of announcement - 3 p.m. in London.       |                    |
|                     |                                                                         |                    |
| T.W.                | Desire of all sides to avoid public                                     |                    |
| n                   |                                                                         |                    |
| is favourable sign. |                                                                         |                    |
|                     |                                                                         |                    |
|                     |                                                                         |                    |

## 5. U.S. Loan.

 

| H.D.                           | Thro' Senate.  Has yet to go to H/Rep   |
|--------------------------------|-----------------------------------------|
| res                            |                                         |
| .  Opinions differ wtr. harden |                                         |
|                                |                                         |
|                                | But heartening to U.S. admin            |
| n                              |                                         |
| .  Final dec                   |                                         |
| n                              |                                         |
| in 10 days or so.              |                                         |
|                                |                                         |

 

## 6. S.W. Africa.

 A. 
Have had consultns with Smuts & offls.  They intend to put fully  
 
 
documented case to U.N.O.  But they want to get promises of 
 
 
U.K. support - then other Doms. 
 
Our support wd. help him v. Malan & secessionists. 
 
History.  Attitude of W.G. in 1919 favoured annexation. 
 
Geography.  Is part of Union.  Has bn. so administered. 
 
Native Policy.  S.A. Govt. have establd reservations - with native 
 
 
councils in control - Rpts on this are favourable  to Union 
 
 
Govt. 
 
 
Recent attempt to ascertain views of tribes.  Some in favour:  one 
 
 
against. 
 
 
Europ. popn.   2/3rds citizens of Union:  1/3rd  Germans:  some 
 
 
still in internment. 
 
Merits:  overwhelmg. in favour of incorporating it.  All young people 
 
 
think of it now as already part of Union. 
 
To the n. is Bechuanaland:  runs with the Rhodesias:  averse to incorpn
 
 
in Union. 
 
 
That was because B. in Rhodesias feared secession by S. Africa. 
 
 
Long time before that will die out.  The Bechuana ???? chief  
 
 
wants to come here & say S.W. Africa shdn't be incorporated  
 
 
in Union. 
 
The port in S.W. Africa belongs now to Union.  Another reason for  
 
 
incorpn. 
 
D.O. v. anxious to support Smuts' case. 
 
We can't sit on fence at U.N.O.  Must make up our mind what we  
 
 
shall say. 
 
I recommend support be promised:  and let Smuts discuss at P.M.M. G.H. 
Strong argument against is the native policy of S. Africa. 
 
The feelings of Bechuanaland are echoed throughout Col. Empire. 
 
Pravda is on to this - S. Afr. will be attacked when it comes to U.N.O. 
 
 
And there must be 2/3rds majority there.  N.Z. & prs. Austr. will 
 
 
be opposed. 
|                                                       | P.M.                                                                     | They may have done well in S.W. Africa.  But will be said, if you    |
|-------------------------------------------------------|--------------------------------------------------------------------------|----------------------------------------------------------------------|
|                                                       |                                                                          | incorporate, some native policy as in Union itself.                  |
|                                                       |                                                                          |                                                                      |
| G.H.                                                  | Think we shd. have further disc                                          |                                                                      |
| n                                                     |                                                                          |                                                                      |
| with Smuts, either in Cab. or P.M.M.                  |                                                                          |                                                                      |
|                                                       | Diff. to oppose Smuts' claim:  but there will                            |                                                                      |
| be diff                                               |                                                                          |                                                                      |
| ies                                                   |                                                                          |                                                                      |
| .                                                     |                                                                          |                                                                      |
|                                                       |                                                                          |                                                                      |
| N.B.                                                  | Appreciate diff                                                          |                                                                      |
| ies                                                   |                                                                          |                                                                      |
| of Smuts with his secessionists.                      |                                                                          |                                                                      |
|                                                       | Relevant tht. Heraros (?) are opposing incorp                            |                                                                      |
| n                                                     |                                                                          |                                                                      |
| - a cause celebre                                     |                                                                          |                                                                      |
|                                                       |                                                                          | at Geneva.                                                           |
|                                                       | E.B.'s view:  C.O. case made at Cab. on 24/4 is v. strong.               |                                                                      |
|                                                       |                                                                          | Trusteeship = supervision.                                           |
|                                                       |                                                                          | Anyone ruling natives ought to be willing to accept supervision.     |
|                                                       |                                                                          | Don't promise support.  See how it goes in U.N.O.                    |
|                                                       |                                                                          |                                                                      |
| A.B.                                                  | Last sentence before concl                                               |                                                                      |
| n                                                     |                                                                          |                                                                      |
| (2) of C.M.37(46) 3 is limit to wh. we shd.           |                                                                          |                                                                      |
|                                                       |                                                                          | go.                                                                  |
|                                                       |                                                                          |                                                                      |
| A.                                                    | Smuts' case is tht. he has done this:  satisfy. himself a majority of    |                                                                      |
|                                                       |                                                                          | white & black are in favour.  Not clear wtr. "by methods             |
|                                                       |                                                                          | acceptable to U.N.O."                                                |
|                                                       | Wd. like Smuts' views to be given at first hand.                         |                                                                      |
|                                                       |                                                                          |                                                                      |
| E.Sh.                                                 | At P.M.M. first - exchange of views - then we can decide.                |                                                                      |
|                                                       | Goes beyond treatment of natives.  Canada mght. ask re                   |                                                                      |
|                                                       |                                                                          | N'foundland.  Austr. & N.Z. may have their eye on other              |
|                                                       |                                                                          | territories.                                                         |
|                                                       |                                                                          |                                                                      |
| P.M.                                                  | Discuss at P.M.M.  And put as our view the concl                         |                                                                      |
| n                                                     |                                                                          |                                                                      |
| of  C.M. 37(46) 3.                                    |                                                                          |                                                                      |
|                                                       |                                                                          |                                                                      |
| A.                                                    | Smuts wd. like to know Cab. views before discussed at P.M.M.             |                                                                      |
|                                                       |                                                                          |                                                                      |
| P.M.                                                  | Then tell him C.M. 37(46) 3 is our attitude:  and see what he says then. |                                                                      |
|                                                       |                                                                          |                                                                      |
|                                                       |                                                                          |                                                                      |
|                                                       |                                                                          |                                                                      |
| 7.                                                    | Divorce.                                                                 |                                                                      |
|                                                       |                                                                          |                                                                      |
| J.                                                    | 3 schemes.                                                               |                                                                      |
|                                                       | a)                                                                       | President's scheme.  I wd. like to modify (i).  Shd. be Co. Court    |
|                                                       |                                                                          |                                                                      |
|                                                       |                                                                          |                                                                      |
|                                                       | b)                                                                       | Labour Party.                                                        |
|                                                       | c)                                                                       | Haldane Society.                                                     |
|                                                       | They differ fundamentally.  Desirable:  to have Cttee to consider them.  |                                                                      |
|                                                       |                                                                          | It shd. be narrow enquiry but wd. have to include ques. of           |
|                                                       |                                                                          | reconciliation.                                                      |
|                                                       | If we had gone on to consider merits, we shd. have disagreed.            |                                                                      |
|                                                       | But we all agree to pass the buck to another Cttee.                      |                                                                      |
|                                                       | H.O. suggest add                                                         |                                                                      |
| n                                                     |                                                                          |                                                                      |
| of words to t. of r. to make it clear tht. Cttee shd. |                                                                          |                                                                      |
|                                                       |                                                                          | have power to consider Forum - High Court or Co. Court.              |
| P.M.                                                      | Public enquiry, hearing ev                                        |
|-----------------------------------------------------------|-------------------------------------------------------------------|
| ce                                                        |                                                                   |
| , wd take a long time.                                    |                                                                   |
|                                                           |                                                                   |
| A.B.                                                      | Give imp                                                          |
| n                                                         |                                                                   |
| of enquiry into machinery for giving quicker the divorces |                                                                   |
|                                                           |                                                                   |
|                                                           |                                                                   |
| H.D.                                                      | No need to sit in public.        Agreed.                          |
|                                                           |                                                                   |
| P.M.                                                      | Need reconciliation be included?  Won't this delay it.            |
|                                                           |                                                                   |
| J.                                                        | Essential.  Churches favour it.  SK. Lodge spoke in favour of it. |
|                                                           |                                                                   |
|                                                           |                                                                   |
| P.M.                                                      | Seen it working v. well in Russia.                                |
|                                                           |                                                                   |
| E.W.                                                      | Keep in reconcil                                                  |
| n                                                         |                                                                   |
| because of the children.                                  |                                                                   |
|                                                           |                                                                   |
| G.A.I.                                                    | Shd. include a solr. or two - not all barristers.                 |
|                                                           |                                                                   |
| J.                                                        | Cttee of 8 or 9, with 3 or 4 women.                               |
|                                                           |                                                                   |
| P.M.                                                      | Tone down reconcil                                                |
| n                                                         |                                                                   |
| in t. of r. so as to enable you to maintain tht.          |                                                                   |
|                                                           |                                                                   |
|                                                           |                                                                   |

 
 
India:  Constitutional Question. 

 

| P.M.                                                 | Summ                                                                      |
|------------------------------------------------------|---------------------------------------------------------------------------|
| d                                                    |                                                                           |
| & explained lay-out of statement.                    |                                                                           |
|                                                      | Para. 15 onwds.  Dec                                                      |
| ns                                                   |                                                                           |
| necessarily set out scheme for constit               |                                                                           |
| n                                                    |                                                                           |
|                                                      |                                                                           |
|                                                      |                                                                           |
|                                                      | finally decided.                                                          |
|                                                      | Para. 20. deals with smaller communities.                                 |
|                                                      | P.9. Rep                                                                  |
| ves                                                  |                                                                           |
| of smaller provinces - point raised by me - they got |                                                                           |
|                                                      |                                                                           |
|                                                      |                                                                           |
| A.                                                   | P. 7. "Genl" includes Hindus & Depressed classes.  Is it clear?           |
|                                                      |                                                                           |
| P.M.                                                 | Clear enough.  Weightage for d. classes w'out votes.                      |
|                                                      | Para. 19 VIII .  Changed.                                                 |
|                                                      |                                                                           |
| A.                                                   | Para. 24.  Final para. wd. be much stronger if it embodied P.M.'s         |
|                                                      |                                                                           |
|                                                      |                                                                           |
| E.W.                                                 | And a word about B. rule in India.                                        |
|                                                      |                                                                           |
| P.M.                                                 | Letter from P.L. dated 10/5.  Substantial p'ess in bridging gulf betwn.   |
|                                                      |                                                                           |
| ce                                                   |                                                                           |
| broke down.  Note by Viceroy                         |                                                                           |
|                                                      |                                                                           |
|                                                      |                                                                           |
|                                                      |                                                                           |
|                                                      |                                                                           |
|                                                      |                                                                           |
| J.                                                   | Para. 14.  Paramountcy.  Is it certain tht. P. wd. be impossible if India |
|                                                      |                                                                           |
|                                                      |                                                                           |
| P.M.                                                 | P. implies you have the forces there with wh. to exercise power -         |
|                                                      |                                                                           |
|                                                      |                                                                           |
|                                                      |                                                                           |
| E.W.                                                 | What prov                                                                 |
| n                                                    |                                                                           |
| for safeguarding B. interests?                       |                                                                           |
|                                                      |                                                                           |
| P.M.                                                 | Treaty.  But can't make it until there is another Party to it i.e.        |
|                                                      |                                                                           |
|                                                      |                                                                           |
| E.Sh.                                                | Cdn't you insert words to that effect - mentiong. need to preserve our    |
|                                                      |                                                                           |
| ns                                                   |                                                                           |
| - being labelled                                     |                                                                           |
|                                                      |                                                                           |
|                                                      |                                                                           |
| P.M.                                                 | Agree para. 22 is not enough - can include reference to defence of        |
|                                                      |                                                                           |
|                                                      |                                                                           |
|                                                      |                                                                           |
| E.W.                                           | When do we hand over power - as soon as const. assembly appt             |
|------------------------------------------------|--------------------------------------------------------------------------|
| d                                              |                                                                          |
| ,                                              |                                                                          |
|                                                |                                                                          |
|                                                |                                                                          |
| P.M.                                           | Not until it has completed its constitution.  But not later.  There must |
|                                                |                                                                          |
|                                                |                                                                          |
| n                                              |                                                                          |
| in U.K. to change G/India Act.  Until that leg |                                                                          |
| n                                              |                                                                          |
| passes,                                        |                                                                          |
|                                                |                                                                          |
|                                                |                                                                          |
| n                                              |                                                                          |
| remains in being.                              |                                                                          |
|                                                |                                                                          |
| E.W.                                           | Need for big gesture now re remaing. in B. Comm.  ? Big Conference       |
|                                                |                                                                          |
|                                                | Can't we avoid seeming to leave this as a side issue.                    |
|                                                |                                                                          |
| P.M.                                           | Can't do that:  in view of how we sent them out.                         |
|                                                | But I do think this statement assumes too much tht. India will choose    |
|                                                |                                                                          |
|                                                | Add:  after 15.  "This solution is applicable wtr. India decides on      |
|                                                |                                                                          |
|                                                |                                                                          |
|                                                | Also ms. amendmt. written into para. 14.                                 |
|                                                |                                                                          |
|                                                | Announcement in Parlt.                                                   |
|                                                | Short statement & W. Paper.                                              |
|                                                | Copy to Oppos                                                            |
| n                                              |                                                                          |
| in advance.                                    |                                                                          |
|                                                |                                                                          |
| A.                                             | And Doms?  Those in Ldn. at once:  & communicate to Doms. by             |
|                                                |                                                                          |
|                                                | Also simultaneous announcemt. in H/Lds.                                  |

 
 
India:  Constitutional Position. 

 

| P.M.    | Explained re-action of Cab. Mission to proposed amendmts.             |
|---------|-----------------------------------------------------------------------|
|         | Short statement - not v. good.  W.S.C. & A.E. want to read whole      |
|         |                                                                       |
|         | Read out message.                                                     |
|         | In circs., as they say they won't take responsibility, give them O.K. |
|         |                                                                       |
|         |                                                                       |
| H.D.    | Three good men on the spot.  Must give them discretion on this.       |
|         |                                                                       |
|         |                                                                       |
|         |                                                                       |
| J.      | Agreed.  They are steeped in atmosphere.                              |
|         |                                                                       |
|         |                                                                       |
|         |                                                                       |

 
1. 
Germany. 

 P.M. 
From brief. 
 
Wd. favour following U.S. lead re
 discontinuing dismantling. H.D. 
Go on dismantling but stop despatching to U.S.S.R. N.B. 
U.S. have stopped dismantling & this is what E.B. wants to do.  Of 
 
 
plant dismantled 25% goes to Russia.  The export/import 
 
 
agreement has broken down.  Every dismantling will reduce 
 
 
exports fr. our Zone. That's what we want.  We shan't gain 
 
 
by continuing dismantling. P.M. 
Only a standstill order. E.W. 
Why punish ourselves - by stopping deliveries to U.K. H.D. 
Do nothing wh. will prejudice our chances of getting. P.M. 
Urgent point is that raised in Tel. 179. 
 
E.E.B. read Tels. 179 and 185. H.D. 
These are v. re-assuring.  Nothg. here re
 stopping dismantling. N.B. 
But U.S. have stopped. H.D. 
Tel. 179:  p.3. E.Sh. 
Tel 185.  Is this consistent with our view re rubber-stamp Peace 
 
 
Confce? A. 
Yes:  because not proposed C.F.M. shd. agree before it goes to  
 
 
Confce. P.M. 
Also proposed here they shall consult with other Govts.  That is an 
 
 
advantage. 
 
Shall we agree with E.B. H.D. 
Yes:  if warning given tht. it wd. be unfortunate if this involved  
 
 
further delay in getting some reparations for U.K. from Germany. P.M. 
If U.S. suspend dismantling because R. declines this study, shall we 
 
 
follow suit? 
 
 
I think we shd. E.Sh. 
We wd. lose more than U.S. 
 
| J.B.H.               | The U.S. threat is to stop the plant destined for Russia - the 25%.    |
|----------------------|------------------------------------------------------------------------|
|                      | Tel. 179. para. 2.  Remind E.B. this shd. apply now.  R. willing to    |
|                      |                                                                        |
|                      |                                                                        |
| P.M.                 | ?   Agree:  subject to E.E.B.'s formula.                               |
|                      |                                                                        |
| A.B.                 | Only makes verbal diff                                                 |
| ies                  |                                                                        |
| for E.B.             |                                                                        |
|                      |                                                                        |
| P.M.                 | Also suggests we                                                       |
| shall break Potsdam. |                                                                        |
|                      |                                                                        |
| T.W.                 | Underline last sentence but one of 185.                                |
|                      |                                                                        |
|                      |                                                                        |

 
2. 
Parliament.
   

 W.W. 
W.S.C. will ask for Supply Day on Tuesd. v. Cable & W'less  
 
 
Bill - for Egypt. 
 
Told them we can't - Bill urgent & hybrid. P.M. 
Also E.B. returng. to-day.  E.g. not in isoln.  Genl. debate preferable. 
 
 
Need to talk to E.B.  Opposition might also talk to him. 
 
Cabinet prob. Friday a.m. W.W. 
Two-day debate on F.A. prov. arranged for followg. week. A. 
Coal Bill to H/Lds. by ?  - W.W. 
21/5. A. 
Nat. Insurce? W.W. 
28/5. 

                                               [Exit N.B: W.W. 

                                               [Enter B:  B.S. :  Belcher. 
 

3. 
Railway Charges. 

 B. 
Amendmt of original figures.  Rlway. cos. estimates.  Now amended - 
 
 
receipts upwds. - eases posn.  From £4.1m deficit to £1.m  
 
 
balance (? credit). 
 
Summd memo. H.D. 
Have agreed to this.  Not perfect.  Needs £20 m. fr. Exchequer:  can 
 
 
face it for this year in view of saving on interest rates on natn. 
 
 
Also meets c/living diffy. G.A.I. 
Have you considered reflectn of higher coal price on food etc? H.D. 
We will hold that. 

B.S. 
On foods outside c/living range this will cause price increase. T.W. 
Will cost £3/4 m. more to agriculture - in carriage of milk etc. 
 
E.Sh. 
Don't like it:  but will accept it if nothg. better can be devised. A.B. 
Oppose this - on general principles.  Simpler for Ty. to take  
 
 
deficit directly rather than subsidise increased costs here & 
 
 
there. 
 
Need to re-impose discipline of buyer over seller.  Bad habits durg. 
 
 
war by wh. increased costs at once passed on to retail price -  
 
 
no redn ever in profit margins.  Cause - sellers' market.  
 
 
V. dangerous qua inflation. 
 
These are war charges.  Ty. has bn. takg. £42 m. p.a. fr. rlways.  
 
 
This shd. now be used as a cushion. 
 
This repeats Ty. mistake of 1919.  Deficits not properly carried. 
 
Argument for doing this before natn is pure (?) politics.  Cd. meet that 
 
 
by explaing. now there is this deficit under private ownership. 
 
This is a genl. charge - opens way for increased costs all round.  Shall  
 
 
have to ask for review of house bldg. subsidy. 
 
Look at this ques. not qua rlways only but qua genl. economic posn. B/T. 
Complete agreement with A.B.  This is prime charge on everythg. 
 
 
entering into natl life.  Effect on exports.  At least differentiate 
 
 
betwn. freight & passengers. 
 
War costs of rlways - extra staff:  makg. up pay of men in Services: 
 
 
won't continue. 
 
 
What economies can be made to offset. 
 
Support temporary carriage of load by Ty. G.A.I. 
C/living likely to go to 104.  Another point & we are at stage of  
 
 
automatic advances in many industries - wh. wd. start  
 
 
another cycle. P.M. 
Only argument v. A.B.'s case is tht. we wd. have to increase rates on 

|                                                       |                                                                    | nat                             |
|-------------------------------------------------------|--------------------------------------------------------------------|---------------------------------|
| n                                                     |                                                                    |                                 |
| .                                                     |                                                                    |                                 |
|                                                       | No sufft. exam                                                     |                                 |
| n                                                     |                                                                    |                                 |
| of real costs of rlways & means of economising.  Rash |                                                                    |                                 |
|                                                       |                                                                    | to go into this w'out that exam |
| n                                                     |                                                                    |                                 |
| .                                                     |                                                                    |                                 |
|                                                       |                                                                    |                                 |
| A.                                                    | Marquis of blders' merchants.  Were too high.  Any control now?    |                                 |
|                                                       |                                                                    |                                 |
| C.E.                                                  | Support A.B.  The increased charges will be passed on with further |                                 |
|                                                       |                                                                    | increase.                       |
|                                                       |                                                                    |                                 |
| J.                                                    | Ty. proposal will cost as much.  What are the figures?             |                                 |
|                                                       |                                                                    |                                 |
| H.D.                                                  | Deficit of 42 m. will be covered by increases to extent of 22 m.   |                                 |
|                                                       |                                                                    |                                 |
| C.E.                                                  | Some of 22 m. will be paid in increased food subsidy, anyhow.      |                                 |
|                                                       |                                                                    |                                 |
| B/T.                                                          | Effect of 16 2/3                                               |
|---------------------------------------------------------------|----------------------------------------------------------------|
|                                                               |                                                                |
| rds. increase in charges:  we cd. carry 10% on                |                                                                |
|                                                               |                                                                |
|                                                               |                                                                |
| J.                                                            | Why not be content with increase of passenger fares & economy  |
|                                                               |                                                                |
| n                                                             |                                                                |
| .                                                             |                                                                |
|                                                               |                                                                |
| A.B.                                                          | Nat                                                            |
| n                                                             |                                                                |
| not until 1948.  Commodity market will have improved m'while. |                                                                |
|                                                               |                                                                |
| n                                                             |                                                                |
| straight later.                                               |                                                                |
|                                                               |                                                                |
| B.                                                            | Remember my original proposal - give rlways target & have exam |
| n                                                             |                                                                |
| .                                                             |                                                                |
|                                                               |                                                                |
| d                                                             |                                                                |
| some                                                          |                                                                |
|                                                               |                                                                |
|                                                               |                                                                |
| n                                                             |                                                                |
| wd. follow.                                                   |                                                                |
|                                                               | Concerned because disc                                         |
| n                                                             |                                                                |
| assumes tht. transport charges can be left out                |                                                                |
|                                                               |                                                                |

 
 
by 70% over 1939.  Can't assume much of that can be cut out by 

|     |     | economies etc.  Can't accept other industries' increased costs &    |
|-----|-----|---------------------------------------------------------------------|
|     |     | not admit transport's.                                              |

 
Dangerous to bring whole of transport into area of subsidised services. 

|                                             |                                                                         | Right for Ty. to increase existg. food subsidies to ease this pos   |
|---------------------------------------------|-------------------------------------------------------------------------|---------------------------------------------------------------------|
| n                                           |                                                                         |                                                                     |
| .                                           |                                                                         |                                                                     |
|                                             |                                                                         | Another matter to bring a new range of services under subsidy.      |
|                                             | 16                                                                      |                                                                     |
| 2/3                                         |                                                                         |                                                                     |
| rds. is a v. warm breath of reality.        |                                                                         |                                                                     |
|                                             |                                                                         |                                                                     |
| P.M.                                        | Ques. = timing.                                                         |                                                                     |
|                                             |                                                                         |                                                                     |
| B.                                          | This is right time because gets worse as time goes on.                  |                                                                     |
|                                             |                                                                         |                                                                     |
| B.S.                                        | Food subsidies = 4/10 p. head or 2/9 on income tax.  And this plan will |                                                                     |
|                                             |                                                                         | increase them.                                                      |
|                                             |                                                                         |                                                                     |
| B.                                          | But will shake publ. conf                                               |                                                                     |
| ce                                          |                                                                         |                                                                     |
| more if another range brght. under subsidy. |                                                                         |                                                                     |
|                                             |                                                                         |                                                                     |
| P.M.                                        | Why not say - transition:  prices not settled:  wiser to carry this     |                                                                     |
|                                             |                                                                         | pro tem. & have detailed enquiry into relativities & economies.     |
|                                             |                                                                         |                                                                     |
| E.Sh.                                       | V. slippery slope.                                                      |                                                                     |
|                                             | Coal - prices were increased to consumer, not carried by subsidy.       |                                                                     |
|                                             | Why treat transport utterly differently.                                |                                                                     |
|                                             | Can't get economy straight by going on subsidising.                     |                                                                     |
|                                             | Certainly have exam                                                     |                                                                     |
| n                                           |                                                                         |                                                                     |
| into economies.                             |                                                                         |                                                                     |
|                                             | But suppose 42 m. have to be taken on next Budget - what chance         |                                                                     |
|                                             |                                                                         | of getting relief on income tax.                                    |
|                                             | Must get back to proper economic basis.                                 |                                                                     |
|                                             | B/T. say they cd. carry 10%.  Look at that.                             |                                                                     |
|                                             | "Put it on passenger fares."  What about workman's fares.               |                                                                     |
|                                             | Suggest review - do it on this basis, but see what modific              |                                                                     |
| ns                                          |                                                                         |                                                                     |
| can be                                      |                                                                         |                                                                     |
|                                             |                                                                         | made as for coal.                                                   |
|                                             |                                                                         |                                                                     |
| H.D.                                        | Danger of subsidy-minded.                                               |                                                                     |
|                                             | Esp. for nat                                                            |                                                                     |
| d                                           |                                                                         |                                                                     |
| industry.  Others wd. demand subsidy.       |                                                                         |                                                                     |
|                                                              | Must reject idea of takg. 42 m. on Ty.  Proposal now is 20 m. on Ty.     |
|--------------------------------------------------------------|--------------------------------------------------------------------------|
|                                                              | I originally proposed increase for passenger fares.  Why shdn't          |
|                                                              |                                                                          |
|                                                              |                                                                          |
|                                                              |                                                                          |
| E.W.                                                         | M-classes worse of than working classes.                                 |
|                                                              | Must make workers face the facts.  Nat                                   |
| d                                                            |                                                                          |
| industries must live in a real                               |                                                                          |
|                                                              |                                                                          |
|                                                              |                                                                          |
|                                                              |                                                                          |
| G.A.I.                                                       | Increase in rlway. fares will increase suspicion of workers re c/living  |
|                                                              |                                                                          |
|                                                              |                                                                          |
|                                                              |                                                                          |
| T.W.                                                         | But increase in Fares will have less effect on c/living than increase    |
|                                                              |                                                                          |
|                                                              | Can't expect to go on with fares below cost.                             |
|                                                              |                                                                          |
| B.                                                           | Can't embark on policy of subsidising transport.                         |
|                                                              | Some adjustment therefore essential.  Sooner or later more than          |
|                                                              |                                                                          |
|                                                              |                                                                          |
| rds. increase will have to be made on both.  Decision needed |                                                                          |
|                                                              |                                                                          |
|                                                              |                                                                          |
|                                                              |                                                                          |
|                                                              |                                                                          |
|                                                              |                                                                          |
| P.M.                                                         | Make the arbitrary increase 10%.  Then exam                              |
| n                                                            |                                                                          |
| .                                                            |                                                                          |
|                                                              |                                                                          |
| E.Sh.                                                        | ? Exempt workmens' fares.  Make them get up earlier?                     |
|                                                              | Coal freights shd. stand at 8 1/3rd .                                    |
|                                                              |                                                                          |
| P.M.                                                         | Yes.                                                                     |
|                                                              |                                                                          |
| G.A.I.                                                       | Cd. then be investig                                                     |
| n                                                            |                                                                          |
| into man-power on rlways.                                    |                                                                          |
|                                                              |                                                                          |
| B.                                                           | Yes:  that is my responsibility.  I will enquire:  & submit rpt. to Cab. |
|                                                              |                                                                          |
| P.M.                                                         | Also submit to Cab. draft directive to Rlway Rates Tribunal.             |
|                                                              |                                                                          |
| B.                                                           | Surely 16 2/3rds. for passengers.                                        |
|                                                              |                                                                          |
| :  16 2/3rds. for passengers (as in memo)                    |                                                                          |
|                                                              |                                                                          |



[Exit  B. 
 
4. 
India. P.M. 
Read Index 38. 

## World Wheat Supplies.

 P.M. 
Gave stock forecasts - as agreed with M/Food & taken by H.M. to  

|     |     | W'ton.    |
|-----|-----|-----------|

 
H.M.'s proposals = 675.000 t. for G.  1.200.000 for India.  U.K. 

|     |     | surrender 200.000 - to be deducted from stock (Sept.)     |
|-----|-----|-----------------------------------------------------------|

 
 
figures, as quoted. 
 
Tel. 3232 and 3233 give H.M.'s reasons - lose leadership:  friendly 
 
 
support of U.S. :  & throw whole deficit on G. & India. 
 
B.S. 
Diff. to assess situation.  Agree with P.M.'s estimate of figures. P.M. 
Does occasional stoppage of mills involve immed. bread shortage? B.S. 
Yes:  unless we introduce rationing. 
 
Moral leadership - great material cost to us.  Must say "no" at some 
 
 
stage to U.S. 
 
 
Rationing = only solution to H.M.'s picture.  Will U.K. stand 
 
 
for it? 
 
Insufft. a/c taken of our past efforts. P.M. 
Suppose we refuse this - anything to prevent U.S. not sending even  
 
 
what we rely on now. 
 
 
Anything forthcoming for G?  Or for India?  This is a practical 
 
 
issue - we can't manage on what we've got. E.W. 
Suppose actual starvation in G.  Can't be wholly U.K. responsibility. 
 
People we can't afford to starve = U.K. P.M. 
But if we turn this down & U.S. cut existg. promises - that brings us 
 
 
to M/F. figure of 142.000 t. which is much worse than 580  
 
 
less 200. B.S. 
In such circs. Canada wd. stand behind us. P.M. 
But you said they had no more. B.S. 
Now believe they have another 3 m. bushels - & are askg. where to 

|                             |                                              |
|-----------------------------|----------------------------------------------|
|                             |                                              |
| P.M.                        | Mills argument.  U.S. mills are now closing. |
|                             |                                              |
| B.S.                        | Yes:  but ….. anecdote …..                   |
|                             |                                              |
| P.M.                        | What happens if a mill has to close?         |
|                             |                                              |
| B.S.                        | Transport diff                               |
| ies                         |                                              |
| to spread over other areas. |                                              |

P.M. 
We are asked to reduce stocks.  Told it may stop some mills.  What  
 
 
then is the lowest stock we can run on?  Improvising 
 
 
deliveries etc. 
 
E.Sh. 
Mills ques. is incidental - a matter of organisation. 
 
Vital point is p.3 of 3232 - U.S. only source of supply.  Is that true? 
 
 
If so, we must accept.  What is alternative? P.M. 
Are you in better posn if you refuse this? 
 
We have guarantees re prev. 200.000 + Canad. shortfall. E.Sh. 
If we don't accept this, we shall have in the end to give somethg. fr. 
 
 
U.K. to Germany & India - & m'while lost support of U.S.A. 
 
P.M. 
Our estimates rely on repaymt. of 200.000 t. by U.S. 
 
We are now asked in effect to give up our claim to repaymt. 
 
All we give is what on our pessim. estimate we don't get! A.B. 
Has bread consumption fallen? B.S. 
Fairly good:  no figures. 
 
 
B.S. 
Read telegram from Harwood.  We cdn't have escaped cut, because 
 
 
U.S. have marginal supply.  Cdn't have resisted larger cut if  
 
 
demanded.  But will mean more economy at home - esp. because 
 
 
can't rely on U.S. deliveries. P.M. 
Take a/c of stocks outside M/F. control. T.W. 
Farms - complaints fr. farmers who can't get rid of stocks. A. 
There are substantial supplies in stack.  Millers dislike English wheat. 
 
b) 
Re-distribn of stocks - to get a lower minimum working stock. 
 
c) 
Alternative sources of supply (i) U.K. wheat in stack. 


(ii) increased thrashing in Sept.  (iii) Argentine. 
 
Propose urgent enquiries into this. T.W. 
Compensatg. factor.  We can double what is estimated drawing from 

|                              |                                                            | U.K. harvest in Aug./Sept.    |
|------------------------------|------------------------------------------------------------|-------------------------------|
|                              |                                                            |                               |
| N.B.                         | Clayton's views on pp. 2 & 3.                              |                               |
|                              | Clayton is v. pro-British.                                 |                               |
|                              | Net gain = guarantee of Can. July shortfall:  large cont   |                               |
| n                            |                                                            |                               |
| to B. zone of                |                                                            |                               |
|                              |                                                            | Germany:  contrib             |
| n                            |                                                            |                               |
| to India.                    |                                                            |                               |
|                              | U.K. stocks.  Special effort on distrib                    |                               |
| n                            |                                                            |                               |
| will yield 20% or so:  on my |                                                            |                               |
|                              |                                                            | experience at M/T.            |
|                              |                                                            |                               |
| A.B.                         | Efforts to improve distrib                                 |                               |
| n                            |                                                            |                               |
| .                            |                                                            |                               |
|                              |                                                            |                               |
| P.M.                         | Bread with main meals.  Stop it in high-class restaurants. |                               |

 
 
Concln:  No harm in refusing this. 
 
 
1. 
Accept Bargain. 
 
 
2. 
Wheat off Farms. 
 
 
3. 
Improvise - manage with lower working stock. 
 
 
3a. 
M/T. - can he carry all the wheat U.S. has promised. 
 
 
3b. Early thrashg. 
 
 
4. 
Rpt. - on Bread Campaign. 
 
 
5. 
Consider next week what other consumption  

      economies requd in U.K. A. 
Make millers take U.K. wheat. J.B.H. 
Immed. G. needs. 
 
P.M. 
Await H.M.'s return.    
C.M. 50(46).  
 
 
20th May, 1946. 

1. 

Foreign Affairs. 

 E.B. 
Prefer special mtg. to consider Paris mtg. 

 

P.M. 
Agreed. 

 

E.B. 
Other ques. arising fr. Paris. 

 
Germany. 

 
 
Suggd commn re disarm. clauses in G.  After you agreed to this, 
 
 
Byrnes proposed genl. enquiry.  Wd. now prefer yr. commn to  
 
 
be incorptd in "Robinson thing". 
 
Clay is v. anti-British.  If R. discover Stone Mission, they may use  
 
 
it v. us. 
 
 
Thus, incorporate Stone Mission in Robinson group/ P.M. 
Have made this proposal to C.O.S. 

 
Indonesia. 

 E.B. 
Worried re using B. forces merely to protect oil in Sumatra.  Have  
 
 
reached no concln.  Am enquiring w'in F.O. 
 
Indonesia bound up with India.  If latter goes well, so will former. 
 
Dutch slow - don't recogn. pressure on us from others, not R. alone. 

 
Greece. 

 E.B. 
Saw Byrnes a plebiscite.  Thght. we shd. get it over.  After C.F.M. on 
 
 
15/6 we shall know wtr. troops are comg. out of Danube Basin as  
 
 
a whole.  Will be gt. relief, pol. & financ., if they do.  Austria 
 
 
will be test case - no need of troops anywhere in S.E. Europe 
 
 
if all w'drawn fr. Austria.  Must therefore be in posn then to say 
 
 
we will w'draw fr. Greece. 
 
Have bn. workg. for such a clearance, so as to limit intern. friction 
 
 
to G. & Japan. 
 
Fr. have declined to join in supervn of plebiscite.  And U.S. are 
 
 
hovering:  trying to keep them in. 

 
Palestine.
 E.B. 
U.S. reactions encouraging - may be ready to take more respons. than 

|     |     | ever  before.    |
|-----|-----|------------------|
|                                                               | Askg. J. & A. for views on all 10 recomm                               |
|---------------------------------------------------------------|------------------------------------------------------------------------|
| ns                                                            |                                                                        |
|                                                               | Indic                                                                  |
| ns                                                            |                                                                        |
| we are getting away fr. propaganda atmosph. to serious study. |                                                                        |
|                                                               | Anglo. Am. expert study, on business footing, when views received.     |
|                                                               | Re-actions in M/E. not so violent as forecast.                         |
|                                                               | W'drawal fr. Egypt shd. contribute twds. settlement in Palestine.  One |
|                                                               |                                                                        |
|                                                               |                                                                        |
| P.M.                                                          | Statement in H/C. re                                                   |
| consult                                                       |                                                                        |
| n                                                             |                                                                        |
| with A. & J?                                                  |                                                                        |
|                                                               |                                                                        |
| G.H.                                                          | Rpted. in Press tht. H. Commr. has summoned rep                        |
| ves                                                           |                                                                        |
| .                                                             |                                                                        |
|                                                               |                                                                        |
| E.B.                                                          | Let it go that way - joint action - & make statement in H/C.           |
|                                                               |                                                                        |
|                                                               |                                                                        |
|                                                               |                                                                        |

 
Egypt. 

 P.M. 
W.S.C. asked for debate.  Promised to allow it on Friday. E.B. 
Keep a House in case of a vote.  Ch. Whip to consider. A. 
Tuesday p.m. in H/Lds. on Motion by Altrincham. P.M. 
E.B. to speak on Friday - in reply. A.B. 
Bring out positive aspects.  After last debate, when H.M. said  
 
 
"reluctantly", there was some disquiet among Govt. 
 
 
supporters.  Not out of weakness, but to preserve peace. 

 
Polish Troops. 

 E.B. 
Wed:  announcement re Poles.  CFM Ldn. ques. of keepg. Allied  
 
 
troops in Italy was raised:  referred to l/c to Austria:  no real 
 
 
need for that purpose. 
 
 
Raised in Paris:  may be big issue on 15/6:  asked B. to lend 
 
 
U.S. ships to move them fr. Italy.  Awkward:  U.N.O. attitude: 
 
 
mercenary army at time of Treaty. H.D. 
All cleared up.  Troops on the move.  References in Press. E.B. 
I was to meet Anders to-morrow - then find it all in Observer &  
 
 
B.B.C. last night. 
 
Was intending to delay announcemt. until Wed. J.J.L. 
How did this leak? E.B. 
Hear T.U.C. will co-operate in placing.  That will help greatly. G.A.I. 
Confirmed - agreed on Friday. 

## Greece (Contd).

 

| A.B.                                    | Worried - Party will be restive.  Disturbed at Fr. non co-op           |
|-----------------------------------------|------------------------------------------------------------------------|
| n                                       |                                                                        |
| .                                       |                                                                        |
|                                         | Plebiscite coming v. early.                                            |
|                                         | Cdn't King be persuaded to w'draw?                                     |
|                                         | Suppose he gets a narrow majority?  I took a v. strong line on this    |
|                                         |                                                                        |
| n                                       |                                                                        |
| .                                       |                                                                        |
|                                         | A bad thing for our intervent                                          |
| n                                       |                                                                        |
| if soon aftwds. he returned - v. wishes |                                                                        |
|                                         |                                                                        |
|                                         | Cannot some other influence be brght to bear on him?                   |
|                                         |                                                                        |
| E.B.                                    | W'out civil war, King wd. never have returned.  Comm. tactics          |
|                                         |                                                                        |
|                                         |                                                                        |
|                                         |                                                                        |
| return.                                 |                                                                        |
|                                         | On voting for elections, he won't get back.                            |
|                                         |                                                                        |
| N.B.                                    | Fundamental problem:  to restore order.  Both sides provoking disorder |
|                                         |                                                                        |
|                                         |                                                                        |
|                                         |                                                                        |
| A.B.                                    | Can't we secure a big contrary poll?                                   |
|                                         |                                                                        |
| E.B.                                    | Will keep my eye on this.                                              |
|                                         |                                                                        |
|                                         |                                                                        |
|                                         | German War Memorials.                                                  |

| A.                                            | Order for destr                                                    |
|-----------------------------------------------|--------------------------------------------------------------------|
| n                                             |                                                                    |
| & mutil                                       |                                                                    |
| n                                             |                                                                    |
| of G. war memorials in B. zone.               |                                                                    |
|                                               | Nathan said - not intended to destroy those of artistic merit etc. |
|                                               |                                                                    |
| P.M.                                          | Why was this done?                                                 |
|                                               |                                                                    |
| A.                                            | Coming up again Thursday.                                          |
|                                               |                                                                    |
| E.B.                                          | Will obtain report and submit to P.M. & copy to A.                 |
|                                               |                                                                    |
|                                               |                                                                    |
|                                               |                                                                    |
| 2.                                            | Man Power.  Call-up for Forces.                                    |
|                                               |                                                                    |
| P.M.                                          | As in brief.                                                       |
|                                               | Difficulty:  must keep some men in for as much as 4 years when new |
|                                               |                                                                    |
|                                               |                                                                    |
| E.B.                                          | Considered many alternatives on M.P. Cttee.  Whatever you do. you  |
|                                               |                                                                    |
|                                               |                                                                    |
| ve                                            |                                                                    |
| measures:  can't meet it by genl. rule.  This |                                                                    |
|                                               |                                                                    |
|                                               |                                                                    |
|                          |                                                                          | Figures in Scheme D. have bn. cut.  Depends on services now run by     |
|--------------------------|--------------------------------------------------------------------------|------------------------------------------------------------------------|
|                          |                                                                          | W.O. being assisted by other 2 Services.                               |
|                          | My caveat shd. be clearly stated.  Demob                                 |                                                                        |
| n                        |                                                                          |                                                                        |
| may have to be slowed    |                                                                          |                                                                        |
|                          |                                                                          | down at end/year so tht. our foreign policy may be backed if           |
|                          |                                                                          | it turns out tht. no genl. clearance of troops fr. S.E. Europe.        |
|                          | Teeth & tail once more.                                                  |                                                                        |
|                          |                                                                          |                                                                        |
| G.A.I.                   | a)                                                                       | Call-up for 2 yrs:  but then 18 mos.                                   |
|                          | b)                                                                       | Apprentices:  after end/47 will have option of deferment until         |
|                          |                                                                          |                                                                        |
|                          |                                                                          |                                                                        |
|                          |                                                                          |                                                                        |
|                          |                                                                          | The 2 yr. period is likely to be accepted:  appr. will be point        |
|                          |                                                                          |                                                                        |
|                          | c)                                                                       | Poss. of indir. servg. up to 4½ yrs.  But even so will be out          |
|                          |                                                                          |                                                                        |
|                          |                                                                          |                                                                        |
| B/T.                     | Vitally import. to protect apprentices even in 1947.  Not only for econ. |                                                                        |
|                          |                                                                          | but for war pot. reasons.  Ask for further consid                      |
| n                        |                                                                          |                                                                        |
| of scheme fr.            |                                                                          |                                                                        |
|                          |                                                                          | outset for deferring men w'in 9 mos. or so of end of                   |
|                          |                                                                          | apprenticeship.                                                        |
|                          | Hope scheme will not be regarded as final.  Wd. like it open to review.  |                                                                        |
|                          |                                                                          | It is in next 18-24 mos. tht. our econ. need for man-power will be     |
|                          |                                                                          | greatest.                                                              |
|                          |                                                                          |                                                                        |
| E.W.                     | Para. 9(c) on p. 4.  Will further weaken Arts side.  Omit the word       |                                                                        |
|                          |                                                                          | "Arts".                                                                |
|                          |                                                                          |                                                                        |
| J.W.                     | 1947 is vital year for engineering.  Want max. flexibility for           |                                                                        |
|                          |                                                                          | apprentices - w'in. few months of completion.                          |
|                          |                                                                          |                                                                        |
| T.W.                     | V. few Arts students.                                                    |                                                                        |
|                          |                                                                          |                                                                        |
| C.E.                     | Favour mil. service before University.  c.f. lr. in Times to-day.        |                                                                        |
|                          |                                                                          |                                                                        |
| E.B.                     | Call-up at 17 1/2:  & do mil. service first.                             |                                                                        |
|                          | M/L. and Prod. Dpts. must watch creation of apprenticeships & key        |                                                                        |
|                          |                                                                          | posts merely to evade mil. service.  These Dpts., if allowed           |
|                          |                                                                          | any flexibility, must be more strict: & take more responsibility       |
|                          |                                                                          | in supportg. appl                                                      |
| ns                       |                                                                          |                                                                        |
| .                        |                                                                          |                                                                        |
|                          | Also care to prevent it havg. effect of prolonging service of men        |                                                                        |
|                          |                                                                          | now in.                                                                |
|                          |                                                                          |                                                                        |
| J.J.L.                   | Want flexibility in handling cases of men requ                           |                                                                        |
| d                        |                                                                          |                                                                        |
| to serve 4 1/2 yrs. side |                                                                          |                                                                        |
|                          |                                                                          | by side with 2 yr. new entrants.                                       |
|                          | Para. 4(2) of memo.  Want flexibility here too because Army behind       |                                                                        |
|                          |                                                                          | other 2 Services in release groups.                                    |
|                          | Apprentices.  Get better training in R.E.M.E. than in civil workshops.   |                                                                        |
|                          |                                                                          |                                                                        |
| G.A.I.                   | T. Unions accept that.                                                   |                                                                        | J.J.L. 
Art students.  Handle it round the table, not here. E.W. 
Not askg. for more men.  All I'm askg. is adherence to M.P. Cttee 
 
 
decision not to specify Arts. E.B. 
I have agreed to that. H.D. 
Favour Scheme D as transitional measure.  But gives 1 m. men at 
 
 
end/47.  This is too much.  Want therefore flexibility in the sense 
 
 
tht. this is no firm promise of 1 m. by end/47 - wtr. internatl  
 
 
situation warrants it or not. 
 
On distribn.  Admy. total is excessive. 

 R.A.F. want to discuss ques. of smaller no. serving for 

 longer. 
 
Apprentices.  Why not from mid/1946 - for a small & clearly defined 
 
 
number. A.B. 
Number is about 60,000 only.  Overwhelmg. case for keeping them in 
 
 
civil industry. 
 
Not satisfy. tht. man-power demands are based on searchg. estimate  
 
 
of needs in reln to new weapons, common services, waste of 
 
 
man-power.  Teeth & tail. 
 
 
Shd. be reviewed by lay Cttee, not by soldiers.  Common services 
 
 
wh. cd. be better done by civil units. E.Sh. 
a)  Para. 9. refce to apprentices.  None in coal-mining.  Does (a) refer  


to deferments? P.M. 
Yes:  heading shd. be deferment. E.Sh. 
b)  No provn for opting for mining vice
 mil. service.  Threat to 


labour force of industry.  Shd. we not retain this source of 


supply? E.B. 
b) was never in any scheme.  Was always handled administratively, 
 
 
betwn. the Dpts. 
 
Once you start announcg. adminve accommns, you'll get requests 
 
 
for similar treatmt. from other industries. E.Sh. 
We can't produce the goods w'out the men - can we then afford these 
 
 
Forces. 
 
 
Remember we're using more coal, gas & electricity than ever 
 
 
before. P.M. 
You can't think away foreign situation.  Can't disband our Forces yet. 
 
 
But this is a transitional scheme.  As internatl situation clears, 
 
 
we may hope to reduce nos. 
|                                                                 | E.B.                                                                  | Remember end/last war.  Short-term success at price of long term    |
|-----------------------------------------------------------------|-----------------------------------------------------------------------|---------------------------------------------------------------------|
|                                                                 |                                                                       | failure.                                                            |
|                                                                 | Also - unwilling to see experience of 1940 re-created.                |                                                                     |
|                                                                 |                                                                       |                                                                     |
| P.M.                                                            | This memo. doesn't commit us up to 1951. - only transitional          |                                                                     |
|                                                                 |                                                                       | call up for 47-48.                                                  |
|                                                                 |                                                                       |                                                                     |
|                                                                 |                                                                       |                                                                     |
| H.D.                                                            | Subject to further enquiry to enable limited no. of apprentices to be |                                                                     |
|                                                                 |                                                                       | deferred from June '46.                                             |
|                                                                 |                                                                       |                                                                     |
| E.B.                                                            | Not unless employers come down to 4 yr. apprenticeship.               |                                                                     |
|                                                                 | Exempt                                                                |                                                                     |
| n                                                               |                                                                       |                                                                     |
| for privileged class.  Force employers to give proper training. |                                                                       |                                                                     |
|                                                                 | Ready to have ques. studied - but on that basis.                      |                                                                     |
|                                                                 |                                                                       |                                                                     |
| J.W.                                                            | a)                                                                    | Service in REME. is acceptable.  It's the others.                   |
|                                                                 | b)                                                                    | Deferment not exempt                                                |
| n                                                               |                                                                       |                                                                     |
| :  & willing to make it depend on proper                        |                                                                       |                                                                     |
|                                                                 |                                                                       |                                                                     |
|                                                                 |                                                                       |                                                                     |
|                                                                 |                                                                       | Agreed  { Accept Scheme D. subject to above.                        |
|                                                                 |                                                                       |                                                                     |
|                                                                 |                                                                       |                                                                     |
|                                                                 |                                                                       |                                                                     |
|                                                                 |                                                                       |                                                                     |
|                                                                 |                                                                       | Announce Women's Services at same time.                             |
|                                                                 |                                                                       |                                                                     |
|                                                                 |                                                                       |                                                                     |

 

## 3. Scientific Man Power.

 
H.D. 
Plan - double no. of University students.  I'm ready to provide the  
 
 
money. E.B. 
Does it cover veterinary students. H.D. 
Yes. J.A.B. 
Strengthening Univ. Grants Cttee. E.W. 
Welcome this bold & forward-looking Rpt. 
 
One pt., discussed already with C/E.  Distinctn of function as regds. 
 
 
University educn between M/E. & other Dpts.  We are extendg. 
 
 
secondary school & scholarship facilities:  feel therefore 
 
 
U.G. Cttee shd. give adequate consultn with M/Ed.  Not satisf. 
 
 
& shdn't be continued. 
 
Have suggd review of Govt. supervision of Universities. 
 
My comment restd therefore to recommn 32.  But hope tht. in any 
 
 
Govt. statement we can avoid endorsing that view. 
 
| H.D.                              | Accept view tht. M/Ed. entitled to consult                                |
|-----------------------------------|---------------------------------------------------------------------------|
| n                                 |                                                                           |
| .                                 |                                                                           |
|                                   | Yet even M/Ed. wdn't claim jurisd                                         |
| n                                 |                                                                           |
| over Univ. as over elem. schools. |                                                                           |
|                                   | Willing to discuss with E.W.  Leave it at that.                           |
|                                   |                                                                           |
| Dugdale.                          | Priorities. p.25.  If Armed Forces, they must be equipped.  Put (1) first |
|                                   |                                                                           |
|                                   |                                                                           |
| H.D.                              | See para. 55 on p. 17.                                                    |
|                                   |                                                                           |
| C.E.                              | Complete revision needed of relations betwn. U.G. Cttee, Ty. and          |
|                                   |                                                                           |
| n                                 |                                                                           |
| .                                 |                                                                           |
|                                   | Para. at top of p.23.  Rec. (8).  Don't be impressed by mere members.     |
|                                   |                                                                           |
|                                   |                                                                           |
|                                   |                                                                           |
| A.G.                              | Publication.  Timing:  not all on same day.                               |
|                                   |                                                                           |
| P.M.                              | O.I. Cttee are considering this problem.                                  |

 

## 4. Sarawak.

 G.H. 
As in memo. V. narrow voting - & issue turned on voting of Europ. 
 
 
members. P.M. 
Gammans was the awkward critic & he has w'drawn his case. A.B. 
If it is so, make it appear that Council Negri not fairly repve of  
 
 
native popn. 


Agreed.  -  as in memo. 

 
C.M. 51(46).  
 
 
23rd May, 1946. 

1. 
Parliament. 
 

| H.M.                                    | Business for next week.                                                 |
|-----------------------------------------|-------------------------------------------------------------------------|
|                                         |                                                                         |
| E.B.                                    | Friday this week:  need to keep a House.                                |
|                                         |                                                                         |
| P.M.                                    | Nat. Insurance?  W.W. Divn. on Friendlies at 6 p.m. to-day.  Other      |
|                                         |                                                                         |
|                                         |                                                                         |
| A.                                      | German war memorials.  Can we say something?                            |
|                                         |                                                                         |
| E.B.                                    | Have sent report to P.M.  This was quadripartite decision:  can't       |
|                                         |                                                                         |
|                                         |                                                                         |
| J.J.L.                                  | This dec                                                                |
| n                                       |                                                                         |
| wd. permit destruct                     |                                                                         |
| n                                       |                                                                         |
| of their Cenotaph.  Cdn't we take it up |                                                                         |
|                                         |                                                                         |
|                                         |                                                                         |
| P.M.                                    | Think it shd. be reconsidered, in Berlin.  The exemption is too narrow. |
|                                         |                                                                         |
| A.                                      | Cd. we say it's being looked into qua                                   |
| village memorials.                      |                                                                         |
|                                         |                                                                         |
|                                         |                                                                         |
| J.J.L.                                  | Cd. J.B.H. consult Imp. War Graves Comm                                 |
| n                                       |                                                                         |
| .                                       |                                                                         |
|                                         |                                                                         |
| P.M.                                    | Cdn't we say - we do not & shall not interpret it as covering dest      |
| n                                       |                                                                         |
| of                                      |                                                                         |
|                                         |                                                                         |
|                                         |                                                                         |

 
2. 
World Food Supplies.
 
 
P.M.          (a) Statement shd. be more factual & less argumentative. 

|                                                             | Cd. we not include figures - stock pos                           |
|-------------------------------------------------------------|------------------------------------------------------------------|
| n                                                           |                                                                  |
| as now & then.                                              |                                                                  |
|                                                             |                                                                  |
| H.M.                                                        | M/F. have h'to. resisted publication of stock figures.           |
|                                                             |                                                                  |
| P.M.                                                        | You have given them in U.S. - they will come out.                |
|                                                             |                                                                  |
| H.M.                                                        | Haven't in the past.                                             |
|                                                             | Dangerous to say we'll carry it on stocks not consumption.  Sugg |
| d                                                           |                                                                  |
|                                                             |                                                                  |
|                                                             |                                                                  |
| E.B.                                                        | Stock pos                                                        |
| n                                                           |                                                                  |
| :  we've refused even loan of 50.000 t. to France.  Publish |                                                                  |
|                                                             |                                                                  |
|                                                             |                                                                  |
| T.W.                                                        | Dangerous to try to prove too much.                              |
|                                                             |                                                                  |
| P.M.                                                        | But look at the other assumptions lower down.                    | A. 
Yes:  but that is reason for not publishing - too many hypotheses. 
 
Public will make all sorts of deductions. 
 
H.M. 
Wd. prefer to say - contrary to business interests of country to give  
 
 
stock figures i.e. say that if its raised. 
 
The figure I wd. like to give is p'mme for G. and India.  Diffy. about 
 
 
that is that this is still to go to C.F.B. E.Sh. 
Why not give figures of what we've given previously to other  
 
 
countries. H.M. 
I'm getting those.  I will incorporate in main statement. 
 
G.H. 
Awkward to give figures of these Indian supplies in view of Malayan 
 
 
position. 


Agreed:  give no figure of stocks. 
 
Many verbal amendmts. appd. 
 
Agreed:  Make it shorter. 

 

## (B) Germany:  Immediate Situation.

 J.B.H. 
These shipmts. can't arrive before 20/6.  By end/next week we shall  
 
have no stocks in G. at all. 
 
55.000 t. on 2/6. =  1 wk's. supply.  Then nothing.  (That is barley 
 
 
& potatoes.) 
 
Can we find means of filling gap from 9/6 to 20/6. P.M. 
U.S. Zone? H.M. 
Detailed arrangemts. for pooling have to be discussed. H.M. 
Ques. really is:  can M.F. supply v. firm & early return. J.B.H. 
Minimum supply is 100.000. = 3 weeks. 
 
Fr. U.S. supply 440.000 t. by end/July. H.M. 
Gather J.B.H. will guarantee replacement at end/July on terms stated. 
 
Propose 75.000 t. loan with power to M/F. to recover it at will. A.B. 
Use this as lever to get pooling going quicker. J.B.H. 
We've opened conversns with Clay.  May have to get him prodded  
 
 
by W'ton. B.S. 
Not prepared to release 1 ton. 
 
They've had already 437.000 tons, since I was in office. E.Sh. 
Do you accept seriousness of situation in G.? B.S. 
No. J.B.H. 
We have scrambled through, from time to time. 
      [Exit  W.W. E.Sh. 
We must either help G. or clear out.  We can't afford a break-down 
 
 
in B. adminn. H.M. 
I'm suggesting 75. vice 100. to cover any inflated demands by  
 
 
C. Commn. P.M. 
Let us lend 75.000 & press for early discussion with U.S. on pooling. 
 
A.B. 
And say nothing about it. H.M. 
And M/F. to control recovery. 
               [Exit  A.B. 
 
 
L.P. Off., Cont. Off. & F.O. to consider  


at what level 
 
 
Clay be told to get on with it. P.M.            { Indep. enquiries into stocks etc., on G. farms. { E.Sh. to snoop around;  and T.W. to send experts too. 
                    { After consultn with J.B.H. B.S. 
185.000 t. a month is what Germany needs.  U.S. can't ship enough to 
 
 
meet all.  i.e. Germany, UNRRA., U.K., India etc. 
 
I won't be a party to loan of 75.000.  Offer resignation. B. 
Shipping.  If addl. supplies promised by U.S. materialise 520.000 to go 
 
 
to G. & I. in June. 
 
 
Can move 50.000 fr. Austr. to India. 
 
 
200.000 can be lifted by B. ships 
 
 
220.000 will have to be carried in chartered      {Authy given for 
 
 
U.S. ships.   If that's to be done in time must    { chartering. 
 
 
have p'mme definite in 24 hrs. P.M. 
What was said in W'ton re shipping. H.M. 
We have to be responsible for shipping? B. 
Yes. H.M. 
U.S. & Can. were willing to help. 
 
M/T. shd. consult with L.P. Off. P.M. 
Is it, or isn't it, poss. to ship it in time? B. 
Only doubt is wtr. I can charter U.S. ships to carry the 220.000 t.  No 
 
 
reason to think I can't.  But must get off the mark soon. 
 
No diffy. in shipping the 75.000 t. after June.  Problem = sudden load 
|                            |                                                                       | on June p'mme.                    |
|----------------------------|-----------------------------------------------------------------------|-----------------------------------|
|                            | There will be diffy. in moving the new p'mme:  railway strike as well |                                   |
|                            |                                                                       | as shipping.                      |
|                            | 310.000 - up to 830.000 p'mme for June:  & at v. short notice.  But   |                                   |
|                            |                                                                       | not saying it can't be done.      |
|                            |                                                                       |                                   |
| P.M.                       | (After discussion.)   This is a matter on wh. Cab. must take          |                                   |
|                            |                                                                       | responsibility, not M/Food alone. |
|                            |                                                                       |                                   |
|                            |                                                                       |                                   |
| (c)                        | India.                                                                |                                   |
|                            |                                                                       |                                   |
| A.H.                       | Results will be most valuable.  India will be v. grateful.            |                                   |
|                            | But they will get only 50% of requiremts.                             |                                   |
|                            | They won't get it until end/July onwards.                             |                                   |
|                            | Madras & Mysore machinery of dist                                     |                                   |
| n                          |                                                                       |                                   |
| will brk. down early June. |                                                                       |                                   |
|                            | This stresses need for getting all we have p'mmed.                    |                                   |
|                            |                                                                       |                                   |
| P.M.                       | Note the position.  But can do no more.                               |                                   |
|                            |                                                                       |                                   |
|                            |                                                                       |                                   |

## 3. Egypt.

 A. 
This is last mtg. of Dom. P.M.'s.  Is there any more they can be told  
 
 
re Egypt. E.B. 
There are diffies:  but can't say anything in middle of negotiations. A. 
Cd. E.B. at least have a word with Smuts. E.B. 
Yes:  if he will keep his mouth shut.  Will consider it. 

## 4. Publication Of Information From Cabinet Documents.

 P.M. 
Any objections?           None. 


Agreed. 

## 5. Publication Of Secret Reports Of S. Cttee On Nat. Expenditure.

 H.M. 
If we publish Rpt. on Tanks, believe we wdn't be pressed to publish 
 
 
the others. J. 
Why not Alloys? H.M. 
It is libellous:  and it wd. provoke demand for proper enquiry. J.J.L. 
Tanks - shall have to have it out in the end. 

 H.D. 
Closely-balanced argument:  turned by W.S.C.'s statement. 
 
 
Agreed:  publish Tanks only subj. to consultn (H.M.) 

     with M/Supply.  

## 1. World Food Supplies.

 P.M. 
Will H.M. say anything in H/C. to-day re announcement? H.M. 
Not to-day:  am hoping to get agreemt. with W'ton. 
 
My statement didn't depart fr. agreed communiqué.  Only a summary  
 
 
sent over at first. 
 
 
May be War Dpt. trying to sabotage agreement. 
 
Not going to make any statement until cleared up with Washington. 
 
 
W.S.C. willing to wait until Tuesd. 
 
A.G. 
Business. a)  We didn't complete Rpt. stage of Nat. Insurance Bill 

            on Thursday. 


b)   They'll want to know subject for Friday. 
 
They will want this statement before debate. 
 

 
2. 
Persia.

 E.B. 
Statemt. by their P.M. tht. all troops w'drawn fr. Ab.  Comg. to Sec. 
 
 
Council.  Their diffy. = no rpt. or reply fr. Sov. Union. 
 
Propose we let U.S. go on makg. the running.  We makg. no proposal 
 
 
to take it off or leave it on Agenda. 
 
Diff. situation in Persia - troubles at Abadan.  Labour Attache fr.  
 
 
Cairo being sent.  Ques. however wtr. Persian's can give protn. 
 
 
If no assurance, v. serious sitn for Cabinet. 

3. 
Czechoslovakia. 

 E.B. 
Report on results of Elections.  Percentages given. P.M. 
Social Dem. have done badly. 
4. 
Palestine. E.B. 
Agenda for expert Confn sent.  Await U.S. reply. 
 

 

## 5. Siam.

 E.B. 
Diffies betwn. Fr. & Siamese.  Latter may bring to Sec. Council. 
 
Have pressed Fr. to be reasonable.  Can do no more. 

 
6. 
Egypt. 
 

|                                                     | E.B.                                                               | No attempt to carry out 1936 Treaty - prepare H.Q. in Canal Zone.    |
|-----------------------------------------------------|--------------------------------------------------------------------|----------------------------------------------------------------------|
|                                                     |                                                                    | Have now decided on Def. Cttee tht. C.O.S. must expedite             |
|                                                     |                                                                    | removal of H.Q. staffs fr. Cairo.                                    |
|                                                     | Treaty negot                                                       |                                                                      |
| ns                                                  |                                                                    |                                                                      |
| .   Have got U.S. to intervene to impress on King & |                                                                    |                                                                      |
|                                                     |                                                                    | Govt. need for satisfy. resolution of our diff                       |
| ies                                                 |                                                                    |                                                                      |
| .                                                   |                                                                    |                                                                      |
|                                                     | Propose no further step pro tem.  Debate in E. Parlt.  Arab States |                                                                      |
|                                                     |                                                                    | discussg. not only Palestine, but strategic ques. of M/E.            |
|                                                     | Propose to secure delay by re-callg. Stansgate for consult         |                                                                      |
| n                                                   |                                                                    |                                                                      |
| about                                               |                                                                    |                                                                      |
|                                                     |                                                                    | Thursday this week.                                                  |
|                                                     |                                                                    |                                                                      |
|                                                     |                                                                    |                                                                      |

7. 
Foreign Affairs - General. 
 

|                                                 | Send cordial note to Mol. & rec                                          |
|-------------------------------------------------|--------------------------------------------------------------------------|
| d                                               |                                                                          |
| rather more friendly reply.  Indic              |                                                                          |
| ns                                              |                                                                          |
|                                                 | F.A. Debate on Friday - W.S.C. mischievous.                              |
|                                                 |                                                                          |
|                                                 |                                                                          |
|                                                 | Grain harvest in R. likely to be bad - may be only 40% in Ukraine belt.  |
|                                                 |                                                                          |
|                                                 |                                                                          |
|                                                 |                                                                          |
| 8.                                              | Man Power:  Call-up in Transition.                                       |
|                                                 |                                                                          |
| E.B.                                            | Para. 2.  Oblig                                                          |
| ns                                              |                                                                          |
| under U.N.O. aren't mentioned.  Add:  "and as a |                                                                          |
|                                                 |                                                                          |
|                                                 |                                                                          |
| H.D.                                            | Para 2.  After "revision" -  "in either direction".              Agreed. |
|                                                 |                                                                          |
| E.W.                                            | ..      Do you put occup                                                 |
| n                                               |                                                                          |
| of Austria on same level as Germany.            |                                                                          |
|                                                 |                                                                          |
| P.M.                                            | Substitute - "ex-enemy countries"                       Agreed.          |
|                                                 |                                                                          |
| Air.                                            | Para 3.  After Forces - "on a reasonably stable basis" - because of      |
|                                                 |                                                                          |
|                                                 |                                                                          |
| E.B.                                            |                                                                          |
|                                                 |                                                                          |
|                                                 |                                                                          |
| H.M.                                            | Paras 2 & 5.  "Unforeseen developmts….."  Cd. we delete                  |
|                                                 |                                                                          |
|                                                 |                                                                          |
| H.D.                                            |                                                                          |
|                                                 | Para. 9.  Apprentices.  Shd. start before Dec. '46:  prefer July '46.    |
|                                                 |                                                                          |
| G.A.I.                                          | Wd. be a help if we could.  But have accepted this compromise on         |
|                                                 |                                                                          |
|                                                 |                                                                          |
|                                                 |                                                                          |
| E.B.                                   | I must consider pos                                                     |
|----------------------------------------|-------------------------------------------------------------------------|
| n                                      |                                                                         |
| of men comg. out - many are skilled as |                                                                         |
|                                        |                                                                         |
|                                        |                                                                         |
|                                        |                                                                         |
|                                        |                                                                         |
| H.D.                                   | Stronger case for apprentices than students.  Take fewer of them &      |
|                                        |                                                                         |
|                                        |                                                                         |
| P.M.                                   | Para. 9. is new kind of deferment.  Make it clear tht. it's not same as |
|                                        | genl. industrial deferment practised during war:  a new system.         |
|                                        | That shd. meet it.                      Agreed:  amend as proposed.     |
|                                        | Who should present?  I think M/Labour.                  Agreed.         |
|                                        |                                                                         |
| E.B.                                   | Can public                                                              |
| n                                      |                                                                         |
| be timed for F.A. Debate?              |                                                                         |
|                                        |                                                                         |
| G.A.I.                                 | Promised for Thursday of this week.                                     |
|                                        |                                                                         |
| E.B.                                   | O.K.                                                                    |
|                                        |                                                                         |
| H.M.                                   | May be demand for debate.                                               |

 
 
a) 
First day after return from Whitsun, wh. is a Supply Day. 
 
 
b) 
Or present as related to F.A. & bring it in to that Debate 

       next week:  real point of that is commitments. 

 A.G. 
Prefer a). 
 
 
Agreed:  Present as W. Paper by M/Labour. 

     Mention "commitments" in announcing (in agreemt. 

           M/L. with H.M. & E.B.)  so as to swing it twds.  

           F.A. Debate. 

 

## 9. U.N.O. Publication Of Proceedings E.G. Of Security Council.

 E.B. 
Pressure for publn as W. Papers.  Will provoke demands for Debates. 
 
Do Cab. support my view in favour of publn as St. Office publns. 


Agreed. 

                                                     [Exeunt  C.O.S.  Dugdale. 

           Strachey. 
 
10. S.W. Africa:  Proposed Visit to U.K. of Chief Tschekedi. A. 
Head of biggest tribe in Bechuanaland.  Wanted to come to Ldn. to  
 
 
object to Smuts' plan for incorpn.  Cdn't get here unless we  
 
 
issued priority for him.  Has telegraphed to Labour leaders 
 
 
for support. 
 
His tribe = 400 m. fr. border of S.W. Africa. 
 
Union = independent State, applying on own to U.N.O.  Smuts has  
 
 
consulted inhabitants. 
 
Asked Smuts' leading offl. - he was alarmed - I delayed telegrams 
 
 
saying don't like it but can't stop it.  Smuts' reaction violent: 
|                      | x/                                                                    | Chief has no locus standi:  wd. cause trouble in Union & wd.    |
|----------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------|
|                      |                                                                       | provoke demand for incorp                                       |
| n                    |                                                                       |                                                                 |
| of Bechuanaland etc. |                                                                       |                                                                 |
|                      | Chief wants to bargain - a road to Walfish Bay in return for          |                                                                 |
|                      |                                                                       | w'drawg. his obj                                                |
| n                    |                                                                       |                                                                 |
| .                    |                                                                       |                                                                 |
|                      | Decided therefore play for time by asking for his memo.               |                                                                 |
|                      | Friends of Africa will be annoyed if we stop him coming:  Smuts if we |                                                                 |
|                      |                                                                       | allow him to come.                                              |
|                      |                                                                       |                                                                 |
| P.M.                 | Why shdn't our H. Commr. see the Chief & choke him off with x/.       |                                                                 |
|                      |                                                                       |                                                                 |
| A.                   | V. well.                                                              |                                                                 |
|                      |                                                                       |                                                                 |
| P.M.                 | Main thing is to avoid trouble with Smuts.                            |                                                                 |
|                      | Get the man stopped.                                                  |                                                                 |
|                      |                                                                       |                                                                 |

 

## 11.  World Food Supplies.

 H.M. 
Latest telegr.  U.S. started makg. supplies available for May loading 
 
 
for B. Zone. 
 
Put on record - co-opn of B.S. & valuable assistance of his officials. 
 
 
Also of B. Embassy in W'ton.  And F.O. & M/Ag. staffs who 
 
 
accompanied me. B.S. 
Read telegram from Hutton. H.M. 
Typical of U.S. official troubles.  But agreement with Cl. Anderson & 
 
 
Clayton was firm, w'in limits of what is available & recognising 
 
 
deficit of 700.000.  Our people in W'ton must keep on seeing tht. 
 
 
it will be implemented. P.M. 
C.P. 209 is valuable memo.  App. I. on stocks shows the spread  
 
 
betwn. a) & c). B.S. 
Imposs. to forecast Sept. stocks with certainty.  Most unreliable  
 
 
factor is level of U.S. exports. 
 
Deficit of 700.000 will mean further cuts in wh. U.K. will share. 
 
M/Ag. estimate of threshings:  optimistic:  also only eats into 
 
 
future supplies. 
 
Canadian supplies:  freeze-up point. 
 
Minimum working stock.  700.000.  Independent enquiry by Sinclair's 
 
 
nominee. 
 
Rationing.  Shdn't be mentioned for a month. P.M. 
Will this mean people taking their full ration & eating more than now? E.W. 
Para. 4 of App. III will help to meet this. T.W. 
Memo. 209 relates exclusively to wheat.  My informn is flour stocks 
|                                      |                                        | are also heavy.                         |
|--------------------------------------|----------------------------------------|-----------------------------------------|
|                                      |                                        | On M/F. assumpt                         |
| n                                    |                                        |                                         |
| (c) there will also be ….. of flour. |                                        |                                         |
|                                      | If steps set out in memo. 200 are auth |                                         |
| d                                    |                                        |                                         |
| , we shall get my figures unless     |                                        |                                         |
|                                      |                                        | there is a complete failure of weather. |
|                                      | These figures seem to assume contin    |                                         |
| n                                    |                                        |                                         |
| of ext                               |                                        |                                         |
| n                                    |                                        |                                         |
| at 90%.  I was told to say           |                                        |                                         |

 
 
to farmers "only tempy". 
 

| E.Sh.               | App. III.  What is estimated weekly consumpt                        |
|---------------------|---------------------------------------------------------------------|
| n                   |                                                                     |
| on this scheme?     |                                                                     |
|                     |                                                                     |
| B.S.                | As now.  Point here is to get control:  can put up or down acc. to  |
|                     |                                                                     |
| n                   |                                                                     |
| .                   |                                                                     |
|                     |                                                                     |
| H.M.                | a) Pipeline   b) Consumpt                                           |
| n                   |                                                                     |
| .                   |                                                                     |
|                     | Want enquiry on a) to see what economies cd. be secured, even at    |
|                     |                                                                     |
|                     |                                                                     |
|                     | This wd. increase risk of brk. down here & there.  Cd. be pol. &    |
|                     |                                                                     |
|                     |                                                                     |
| n                   |                                                                     |
| & consumpt          |                                                                     |
| n                   |                                                                     |
| of bread.           |                                                                     |
|                     | Uncertainties of world supply:  may give even gter. shocks &        |
|                     |                                                                     |
|                     |                                                                     |
|                     | All my instincts are v. rationing.  But, even so, if we squeeze the |
|                     |                                                                     |
|                     |                                                                     |
| n                   |                                                                     |
| to control consumpt |                                                                     |
| n                   |                                                                     |
| via rationing.      |                                                                     |

 P.M. 
Support in principle. 
 

| A.                  | a)  This will have to be justified.  Shd. re-consider dec   |
|---------------------|-------------------------------------------------------------|
| n                   |                                                             |
| not to announce     |                                                             |
|                     |                                                             |

 
 
How can you make the case for this w'out use of figures. 
 
         Propose therefore study method of presentns. 
                  
 b)  Want re-examinn of internal distribn.  Millers will resist change. 
 
 
H.M. 
Have asked W'ton  a) to agree tht. my statement was accurate 

|                      |                                                                    |                             |
|----------------------|--------------------------------------------------------------------|-----------------------------|
| y                    |                                                                    |                             |
| for release of alloc |                                                                    |                             |
| n                    |                                                                    |                             |
| figures.             |                                                                    |                             |
|                      | But doubt if we. cd. use stock figures.                            |                             |
|                      |                                                                    |                             |
| E.W.                 | Will this have good effect in U.S.                                 |                             |
|                      |                                                                    |                             |
| H.M.                 | Yes:  will re-inforce what I said in W'ton  re stocks.             |                             |
|                      |                                                                    |                             |
| E.Sh.                | Differential rationing.  How defend this, in view of resistance of |                             |
|                      |                                                                    | miners' claim to more food? |
|                      |                                                                    |                             |
| P.M.                 | They cd. eat all the bread they wanted.                            |                             |
|                      |                                                                    |                             |
| P.M.                 | Freeze-up.  Cdn't alternative ports be used?                       |                             |
|                      |                                                                    |                             |
| B.S.                 | We do:  but it's uneconomic.                                       |                             |

 
Real point is they won't have enough wheat to build up on e. seaboard. 
 
Think we take all we can fr. the west. P.M. 
Get the Canadians to look at this. 


Agreed:  proceed with plans for rationing. T.W. 
Extraction rate? P.M. 
No decision to-day. E.B. 
Staff.  What of a switch fr. other rationing schemes e.g. petrol. P.M. 
Ty. to consider. 
 
 
Feeding stuffs. T.W. 
All I want is to warn keepers where they'll be for next 7 months. P.M. 
Announce on basis of middle assumption (not worst). 
 
 
Memo. postponed. 
12. Railway Charges. 
 
 
Memo. approved. 

## 1. Parliament.

 

H.M. 
Business for next week. 

 

## 2. World Food Supplies:  Food Debate.


|                                                           | Debate of 31/5.  Food.  Now will cover, not only W'ton disc          |
|-----------------------------------------------------------|----------------------------------------------------------------------|
| ns                                                        |                                                                      |
| , but                                                     |                                                                      |
|                                                           |                                                                      |
| n                                                         |                                                                      |
| of M/F. generally.  Suggest therefore that M/F. shd.      |                                                                      |
|                                                           |                                                                      |
| nd                                                        |                                                                      |
| & I will wind up.  Later:  acc. to W.S.C. opening:  if he |                                                                      |
|                                                           |                                                                      |
|                                                           | Shd. he announce decision in principle to introduce bread rationing? |

 
Pro:  will leak anyway. 

|    |     | Con:  say only we are preparing it, won't introduce unless essential,    |
|----|-----|--------------------------------------------------------------------------|
|    |     | think it may.                                                            |

 

| A.                                            | Beware of hoarding flour.                                           |
|-----------------------------------------------|---------------------------------------------------------------------|
|                                               |                                                                     |
| H.M.                                          | Might appeal to co-op                                               |
| n                                             |                                                                     |
| .                                             |                                                                     |
|                                               |                                                                     |
| J.J.L.                                        | The flour doesn't keep.  Warn them it's no good buying it in.  Must |
|                                               |                                                                     |
|                                               |                                                                     |
| P.M.                                          | B'cast between now & 21/7 -                                         |
|                                               |                                                                     |
| J.S.                                          | Yes:  on admin                                                      |
| ve                                            |                                                                     |
| method of doing it.  When we have announced a |                                                                     |
|                                               |                                                                     |
|                                               |                                                                     |
| J.W.                                          | Stale bread order.                                                  |
|                                               |                                                                     |
| J.S.                                          | Will consider:  but 90% extr. bread can't be eaten stale.           |
|                                               |                                                                     |
| H.M.                                          | Compliments to W'ton Embassy, esp. Makins, for handling of          |
|                                               |                                                                     |



[Exit  W.W. & A.G. 

## 3. Rations Of Animal Feeding - Stuffs.

 T.W. 
Since last discn further review.  Forecast even worse.  Satisfd now we 
 
 
must adopt worst assumption. 
 
Specl. attentn to cut for pig clubs dom. poultry:  1½ m. families: 
 
 
2 vice 5 lbs. p. bird p. mouth = 50% cut in birds wh. can be fed. 
 
 
If we don't do that we must put a further 15% cut on all animals. 

 
We cd. quickly raise coupon values if posn improved.  Prepare  
 
 
therefore for the worse. 
 

| J.W.          | Endorsed.                                                                 |
|---------------|---------------------------------------------------------------------------|
|               | Fear it may mean more than 5% loss of milk.  For because of drought       |
|               |                                                                           |
|               |                                                                           |
| T.W.          | We shall enlist co-op                                                     |
| n             |                                                                           |
| of farmers.   |                                                                           |
|               |                                                                           |
| J.S.          | Support.                                                                  |
|               |                                                                           |
| P.M.          | Collection of swill - is it going as well as previously?  Look into this, |
|               |                                                                           |
| n             |                                                                           |
| with B/Trade. |                                                                           |
|               |                                                                           |
|               |                                                                           |
|               |                                                                           |
| c             |                                                                           |
| N.            |                                                                           |
|               |                                                                           |

## 4. Marriages Between British Service-Men & Alien Women.

 J.J.L. 
As in memo. 
 
Further point - is this legal?  This is being raised in H/C. 
 
C-in-C must be consulted because security.  But my personal view is: 
 
 
time to abolish this ban altogether & leave it all to discretion of  
 
 
C-in-C.  For Germany. 
 
For Japan:  wd. have to get views of Doms. & U.S. de Fr. 
Agree with W.O.  Germany:  permit in exceptional cases.  Wd. prefer 
 
 
Air Miny to exercise the discretion:  but ready to leave it to 
 
 
C-in-C if desired for sake of uniformity. H.D. 
What are the exceptional cases? J.J.L. 
Pregnancy:  or anti-Nazi sympathies. 
 
J. 
Believe it is "legal".  C-in-C. has requisite authy. as i/c troops. 
 
Find it diff. to defend w'holding consent when the woman is  
 
 
pregnant.  Don't like saying that is not an exceptional case. E.W. 
Marriage confers B. nationality.  Yet a B. woman marrying a Spanish 
 
 
red looses hers.  G. women will go out for this - even offering 
 
 
money. C.E. 
And we don't allow an alien marrying B. woman to acquire thereby 
 
 
a right to remain in U.K. 
 
Supposing a soldier contracts a marriage:  it isn't invalidated merely 
 
 
because C-in-C. has refused his consent. P.M. 
Opens v. diff. points.  Will enable many ex-enemy women to become  
 
 
B. when we refuse citizenship to alien men who fought for us. 
 
 
Don't encourage G. women to go for marriage. J.J.L. 
Will Cab. agree except for G. & J. :  & let me explore security point 
 
 
with C-in-C. 
|                 | P.M.                                                                | If you  base it on moral or H.O. grounds, G. & J. aren't diff. from     |
|-----------------|---------------------------------------------------------------------|-------------------------------------------------------------------------|
|                 |                                                                     | Austria etc.                                                            |
|                 |                                                                     |                                                                         |
| E.W.            | Cdn't we legislate to prevent these women acquiring B. naty.        |                                                                         |
|                 |                                                                     |                                                                         |
| J.              | Not w'out v. careful consid                                         |                                                                         |
| n               |                                                                     |                                                                         |
| , with Doms.    |                                                                     |                                                                         |
|                 |                                                                     |                                                                         |
| C.E.            | Can't do it in advance of Dom. consult                              |                                                                         |
| n               |                                                                     |                                                                         |
| on nationality. |                                                                     |                                                                         |
|                 |                                                                     |                                                                         |
| P.M.            | This shd. have bn. discussed with F.O., H.O., D.O. before subm      |                                                                         |
| n               |                                                                     |                                                                         |
| to              |                                                                     |                                                                         |
|                 |                                                                     | Cabinet.                                                                |
|                 |                                                                     |                                                                         |
| H.M             |                                                                     |                                                                         |
| c               |                                                                     |                                                                         |
| N.              | E.B. did consider personally & agreed.                              |                                                                         |
|                 |                                                                     |                                                                         |
| J.B.H.          | Subject to security, I wd. favour enabling marriages to take place. |                                                                         |
|                 |                                                                     |                                                                         |
|                 |                                                                     | H.O. to convene Ministers concerned & make further report.              |
|                 |                                                                     |                                                                         |
|                 |                                                                     |                                                                         |

 

## 5. Non-Italian Refugees In Italy.

 

H.McN. 
As in memo. 
 
Dragged to concln we must choose betwn. 2 unpleasant alternatives: 
 
 
a) send them to Germany or b) keep more soldiers there to guard 


them. H.M. 
Why do we have to look after all foreigners in trouble? 
 
Why not let Yugoslavs & Italians solve it betwn. them? H.D. 
Agreed.  Improvident good nature:  can't afford it. 
 
P.M. 
Not to G.  Same objn as to removal of Poles - worsen relations 
 
 
with USSR. 
 
Why shd. we keep them. H.D. 
F.O. press us  a) to unilateral charity  b) increased subs. to intern. relief. J.B.H. 
Still obliged to receive 1½ m. Germans from Poland:  in accordce with 
 
 
joint agreement.  Trying to find accommn for balance of 1 m. of  
 
 
these.  Also 180.000 G. fr. U.S. zone, of whom we've persuaded  
 
 
U.S. to keep 50% permanently:  if we brght foreigners fr. Italy 
 
 
U.S. wd. recant on that. 
 
Security.  Control of d.p.'s is biggest problem in G. to-day.  This wd. 
 
 
aggravate it.  Hard core of 200.000 d.p.'s for whom we'd have 
 
 
to provide in the end:  can't afford to add these Yugoslavs to it. J.J.L. 
U.S. are equally responsible for these Y.  Make them face their 
 
 
responsibilities. 
 
|      | P.M.                                                                       | Why keep them nr. frontier.  Let Italy look after them - e.g. in    |
|------|----------------------------------------------------------------------------|---------------------------------------------------------------------|
|      |                                                                            | Sardinia.                                                           |
|      |                                                                            |                                                                     |
| J.   | Don't consult U.S.  Put it firmly on Italy.  Disarm them & let Italy       |                                                                     |
|      |                                                                            | look after them.                                                    |
|      |                                                                            |                                                                     |
| H.M  |                                                                            |                                                                     |
| c    |                                                                            |                                                                     |
| N.   | This wasn't charity.                                                       |                                                                     |
|      | We can't disarm them - no B. troops to do it.                              |                                                                     |
|      | I thght of Sardinia:  but they wd. terrorise the island - no police there. |                                                                     |
|      |                                                                            |                                                                     |
| C.E. | We shd. have to take the remanent in U.K. in the end.                      |                                                                     |
|      |                                                                            | Agreed:  [don't bring them to Germany, let them stay in Italy:      |
|      |                                                                            |                                                                     |
|      |                                                                            |                                                                     |
|      |                                                                            |                                                                     |
|      |                                                                            |                                                                     |
| c    |                                                                            |                                                                     |
| N.   |                                                                            |                                                                     |
|      |                                                                            |                                                                     |

## 6. Leakage Of Information.

 J. 
Reported enquiries re leak about decision to bring Polish troops to 
 
 
U.K. 
 
No ground for thinking this leak came from Cab. pp. in U.K. P.M. 
F.O. shd. enquire into this. 
 
Recent case where something said at Def. Cttee in passing was on 
 
 
Warsaw Radio same evening.   

## 1. Persia.

 E.B. 
Sent out Labour Attache fr. Cairo:  & M.P.'s. 
 
Fraser was concerned at sendg. T.U. Offls. because laws being 
 
 
enacted.  But A. Persian spending £7½ m. at Abadan on  
 
 
housing & other developmts. for workers.  My advice to  
 
 
A.P. was to make Abadan a show place for amenities etc.,  
 
 
for workers.  I thought it better to send political vice
 industrial 
 
 
repres:  thus send 3 M.P.'s with industrial experience. 
 
Worried re set-up of A.P.  Really a State Co.  But establd as private 
 
 
Bd., the State members being intended only to keep Govt.  
 
 
informed, not to introduce Govt. inspiration.  Don't suggest  
 
 
alteration now:  but keep it in mind in future.  When Govt. own 
 
 
51% of shares, can't escape responsibility e.g. for workers. 
 
 
Fortunate in having W. Fraser as Chairman - fairly advanced 
 
 
views - wd. not be opposed to infusing New Britain views into 
 
 
policy of Co.  Hope Ty. will be more sympathetic than in past 
 
 
to pol. advantage of p'ssive policy. 

 

## 2. Egypt.

 E.B. 
Will see S. this p.m.  Not ready yet to tell Cab. of next step. 

 

## 3. Foreign Affairs Debate.

 P.M. 
W.S.C. will open on 2nd day.  Shall I follow him? E.B. 
No objn.  Then H. McN. can wind up instead of me. 
 
Mine will be a factual statement.  Will avoid antagonising U.S. or  
 
 
Sov. Govts. 
 
No reply to debate on first day.  i.e. E.B. & none:  P.M. & H.McN. 


Agreed. 
 
I haven't answered Fulton Speech.  But fact we didn't repudiate it has 
 
 
made things more diff. for me in Confces.  If therefore W.S.C. 
 
 
takes a violent line to-morrow, P.M. shd. consider whether he 
 
 
shd. at once repudiate, or correct. 


[Enter C.O.S. 
 

4. 
Greece:  Cost of Armed Forces. 

 E.B. 
Not yet clear wtr. R. will w'draw fr. Bulgaria.  They have bn. bldg.  
 
 
permanent barracks there:  & recent talk in Paris looks as tho' 
 
 
they will claim to keep troops on both sides/Danube. 
 
On other hand have bn. pressg. Gks. to produce Budget.  Stability 
 
 
essential to further progress twds. order. 

 
Inflation in R.B. & Hungary.  If Greece don't tackle their budgetary 
 
 
posn & get steady financial policy, they will follow the others. 
 
 
If they can get stability however will have profound effect on  
 
 
whole area.  We have bn. approached confid. for suggns for  
 
 
stabilising in R.  Better to proceed by practical example than  
 
 
by precept. 
 
Mil. experts have arrived at figures for Satellite Armies:  may be 
 
 
accepted by C.F.M. in June.  Greek Army shd. balance  
 
 
Bulgarian.  But my view has bn. that on popn of 7 m. Greece 
 
 
can't carry Army of more than 50.000. 
 
Two stages.  a) This year.  Am anxious to w'draw B. troops, tho' 
 
 
Gks. wd. like them to stay for substantial time.  Want to see what  
 
 
happens at C.F.M. in June:  But aim is to w'draw by Sept.  Can't 
 
 
bring Greece's Army down to peace time levels until C.F.M. 
 
 
have agreed on level of Balkan Armies.  Cd. we agree in 
 
 
principle to carry Gk. Army in 1946.  Then decide how much 
 
 
Greece shd. carry herself.  Bulk of cost = equipment.  We have 
 
 
lots in dumps:  & much cd. be spared fr. Egypt.  Cd. Ty. & 
 
 
C.O.S. agree how much of cost is equipment wh. we cd. supply at 
 
 
no cost to ourselves? 
 
 
Food is only dollar cost.  UNRRA can't supply to Armed Forces. 
 
Equipment & food = £15 m., of which about £2 m. is food. 
 
 
Compromise, prs. that Greece shd. pay for the food (she has 
 
 
foreign exchange)  & we carry the equipment. 
 
Agree in principle to 1946.  Meet this week (F.O., Ty. & C.O.S.) to  
 
 
work out details.  
 
 
Don't want to have legislation if it can be avoided. 
 
Cd. then press Gk. Govt. to produce a Budget, as first step twds.  

|                 |                                                                       | stability in Balkans.                                               |
|-----------------|-----------------------------------------------------------------------|---------------------------------------------------------------------|
|                 |                                                                       |                                                                     |
| C.I.G.S.        | Planning (man-power) on basis of w'drawal before end/1946.            |                                                                     |
|                 |                                                                       |                                                                     |
|                 |                                                                       |                                                                     |
|                 | If so, 100.000 Gks. cdn't hold the frontier.  50.000 wd. be swamped   |                                                                     |
|                 |                                                                       | at once.  100.000 wd. be a minimum.                                 |
|                 | Training of Gk. Army is going fairly well.  Too much old wood at top, |                                                                     |
|                 |                                                                       | and pol. diffy. in getting it out.                                  |
|                 |                                                                       |                                                                     |
| E.B.            | I wd. make this new grant condl. on making a truly Nat. Army.         |                                                                     |
|                 |                                                                       |                                                                     |
| H.D.            | Finance.  Gks. got a £10 m. loan in Jan.  Haven't done much to carry  |                                                                     |
|                 |                                                                       | out quid pro quo of financial reforms.  Gk. Budget cdn't carry      |
|                 |                                                                       | 100.000 Army.  If they had to have it, we wd. have to subsidise.    |
|                 |                                                                       | Not an acceptable plan.  Agree 1946 is a transitional year.  But if |
|                 |                                                                       | they don't go down to 50.000 soon they will be a continuing         |
|                 |                                                                       | burden on us.                                                       |
|                 | Against serious trouble, no diff. betwn. 50.000 & 100.000.            |                                                                     |
|                 | Ready to finance what is necessary for 1946.  But want it clear with  |                                                                     |
|                 |                                                                       | Gks. that this                                                      |
| ends with 1946. |                                                                       |                                                                     |
|                 | Equipment.  My estimate = only £1¾ m.  Ready to throw that in.        |                                                                     |
|        |                                                                       | Ready to throw in value of some R.N. ships on loan:  say, £2 m.    |
|--------|-----------------------------------------------------------------------|--------------------------------------------------------------------|
|        |                                                                       | [C.N.S.  Value of present loan is nearer £4 m.]                    |
|        | Don't want to go on pouring out sterling, still less dollars.         |                                                                    |
|        |                                                                       |                                                                    |
| A.B.   | What about para. 9 of C.P. 203?                                       |                                                                    |
|        | Endorse (1).  But (2) goes a v. long way.  Last phrase wd. commit us  |                                                                    |
|        |                                                                       | v. far.  Unwilling to use B. money to support a Royalist Army      |
|        |                                                                       | in Greece.  Putting at disposal of King, if he returns, an armed   |
|        |                                                                       | Force.  What assurances have we on this?  Until position is        |
|        |                                                                       | clear, I think we shd. limit our offers to 1946.                   |
|        |                                                                       |                                                                    |
| E.B.   | That must be read with para. 1.  I didn't press this to-day.          |                                                                    |
|        |                                                                       |                                                                    |
| A.B.   | Object also to "larger" in 9(3).                                      |                                                                    |
|        |                                                                       |                                                                    |
| P.M.   | Will E.R. reject [ ] in 9(2)?                                         |                                                                    |
|        |                                                                       |                                                                    |
| E.B.   | I w'draw those words.  *                                              |                                                                    |
|        |                                                                       |                                                                    |
| E.B.   | If we can liquidate troops in Italy & Austria, it will relieve us to  |                                                                    |
|        |                                                                       | extent of 150.000 troops.  This is the prize I'm staying for.      |
|        |                                                                       |                                                                    |
| J.J.L. | Estimate of £15 m. for Army of 100.000 is v. high.                    |                                                                    |
|        | We wd. put it at £8-10 m.                                             |                                                                    |
|        |                                                                       |                                                                    |
| E.B.   | This is one reason why I want expert exam                             |                                                                    |
| n      |                                                                       |                                                                    |
| .      |                                                                       |                                                                    |
|        |                                                                       |                                                                    |
| J.J.L. | No diffy. over initial supply of equipment.  Replacement is always    |                                                                    |
|        |                                                                       | difficult.                                                         |
|        | Real diffy. is to get Gks. to get a move on.                          |                                                                    |
|        |                                                                       | Amend 9(3) by omitting "larger" & limiting to 1946.  *             |
|        |                                                                       |                                                                    |
| A.     | Dom. support.  There is division of opinion in Doms.  Evatt wd. say:  |                                                                    |
|        |                                                                       | don't wait upon USSR.  Smuts wd. say stay.  I shan't get           |
|        |                                                                       | unanimous reply.                                                   |
|        |                                                                       |                                                                    |
| E.B.   | But put it to them none the less.                                     |                                                                    |
|        |                                                                       | Agreed:  inform persuasively & hope for the best.                  |
|        |                                                                       |                                                                    |
|        |                                                                       |                                                                    |
| 5.     | Polish Troops under British Command.                                  |                                                                    |
|        |                                                                       |                                                                    |
| C.E.   | Proclamation by Anders to his troops.  Will make this much more diff. |                                                                    |
|        |                                                                       | for H.O.                                                           |
|        |                                                                       |                                                                    |
| E.B.   | Am getting exact text before making up my mind.                       |                                                                    |
|        |                                                                       |                                                                    |
| A.B.   | This is what frightens U.S.S.R.                                       |                                                                    |
|        |                                                                       |                                                                    |
|        |                                                                       |                                                                    |
|                             | E.B.                                | Hoping U.S. will take some - have obtained support of Mark Clark &    |
|-----------------------------|-------------------------------------|-----------------------------------------------------------------------|
|                             |                                     | Eisenhower.                                                           |
|                             |                                     |                                                                       |
| A.                          | Canada wd. take more if pressed.    |                                                                       |
|                             |                                     |                                                                       |
| P.M.                        | Cabinet must consider.              |                                                                       |
|                             |                                     |                                                                       |
| E.B.                        | Am not going to let these men down. |                                                                       |
|                             | France may now take some.           |                                                                       |
|                             | Doms. are a disgrace:  we own 1/6   |                                                                       |
| th                          |                                     |                                                                       |
| of the world & can't absorb |                                     |                                                                       |
|                             |                                     | 200.000!                                                              |

 

## 6. Malaya.

 G.H. 
As in Minute to P.M. 
 
Concern mainly over extension of Malayan citizenship. 
 
Hope discussions will lead to satisf. settlement.  Expect to be able to 
 
 
report in a week. A.G. 
No indicn of impending diffies.  Believe settlement is possible on lines 
 
 
of W. Paper declaration. E.B. 
Can you raise standards of living in Malaya at prices of tin & rubber on 
 
 
wh. U.S. are now insisting.  U.S. shd. be pressed and shamed 
 
 
over this. 
 
 
Before agreement is reviewed, we shd. tell U.S. firmly that she  
 
 
can't lecture us on Imperialism & in same breath grind us down 
 
 
to these low prices. P.M. 
Let us have a report on this. H.D. 
L.P. Cttee considered at gt. length - F.O. representative attending & 
 
 
supporting low price. E.B. 
I'm looking ahead.  Not askg. to re-open recent agreement.  But let 
 
 
us have more informn & advice before next time.  I will put in a  
 
 
memo. H.D. 
Then don't take rubber in isolation - bring in tin etc. 


D.S.I.R. to enquire (on basis of informn from M/Health) 

             into carbo-hydrate from tropics. 


C.O. to report to P.M. on Food Yeast. 


## India:  Constitutional Problem.

 P.M. 
Have to face awkward situation. 
 
Policy of suppression is hopeless.  But while Viceroy turns tht. down, 
 
   x/ he says (p.3) law & order must be maintained - inconsistency. 
 
Final recommn by Mission - in last resort, abandon Hindustan, defend 
 
 
Moslem Provinces & maintain central Govt.  What happens to 


commns & Indian Army.  Wants some working out.
 
Will Auchinleck give us a picture re law & order & safety of  
 
 
B. Europeans. 
 
Auch. 
x/ only means during our responsibility - sporadic outbrks. 
 
W'drawal fr. Hindustan.  Success wd. turn on attitude of Congress. 
 
 
If they agreed it cd. be spread over period e.g. 3yrs. qua Army. 
 
 
If they were not co-operative, it wd. become opn of war:  imposs.  
 
 
to say militarily how we shd. do it.  We have planned for colln
 
 
to centres of B. Europeans, Anglo-Indians & some Indians  
 
 
requiring protn:  & eventually to evacuate fr. ports to U.K. or to  
 
 
Pakistan. 
 
Some anti-European disturbances anyhow, even if Congress  
 
 
co-operative;  wh. will involve colln of Europeans in "Keeps". 
 
 
Plans tried out on paper. H.M. 
Mutiny? A. 
I. Army wdn't mutiny as a whole because compact of Hindus & 
 
 
Moslems.  Incalculable. 
 
If Congress cut right away, wd. be unwise to count on Hindu element 
 
 
in Army.  They are integrated w'in Army - few separate units. P.M. 
Commns? A. 
If Congress hostile, they wd. be paralysed.  Choice:  fight it out or wait 
 
 
to be extricated. 
 
But this wdn't happen at once or universally throughout India. 
 
That's why plans provide for holding key airports - evacn by air  
 
 
to ports. 
 
B. troops cdn't control munition dumps or factories. E.Sh. 
Suppose you decided not
 to evacuate? A. 
That = Viceroy's course of suppression. 
 
Wd. influence Army:  but cdn't rely on Hindu element if Congress 
 
 
leaders
 were hostile. P.M. 
N.W. Frontier held wholly by Indian troops.  Trouble there? 
|                                | A.                                                                      | Yes:  always is on Frontier if chance offers.  Tribes wd. take     |
|--------------------------------|-------------------------------------------------------------------------|--------------------------------------------------------------------|
|                                |                                                                         | opportunity.  Unless they felt they wdn't trouble Moslem Govt.     |
|                                |                                                                         | of Pakistan.  Hindu element wd. demand return to Hindustan.        |
|                                |                                                                         | Wd. mean troops on frontier wd. be inefficient for some time.      |
|                                |                                                                         |                                                                    |
| P.M.                           | What troops in Bengal.                                                  |                                                                    |
|                                |                                                                         |                                                                    |
| A.                             | 4-5 B. batts. & some Indian.  Large nos. w'in reach at Ranchi.          |                                                                    |
|                                |                                                                         |                                                                    |
| E.W.                           | Do Congress think they've got us on the run?  If we said, we've made    |                                                                    |
|                                |                                                                         | a fair offer and now you've refused, we are going to hold on to    |
|                                |                                                                         | keep order - wd. the Army remain loyal.                            |
|                                |                                                                         |                                                                    |
| E.B.                           | W'out word "repression", suppose we maintained Govt.                    |                                                                    |
|                                |                                                                         |                                                                    |
| A.                             | My personal opinion 90% of pop                                          |                                                                    |
| n                              |                                                                         |                                                                    |
| don't want disorder - peaceful |                                                                         |                                                                    |
|                                |                                                                         | evolution.  They wd. favour Mission's scheme.  Believe leaders     |
|                                |                                                                         | are beginning to take note of that public opinion.  Struggle in    |
|                                |                                                                         | Congress betwn. Left & Right:  if Right won, you wd. get           |
|                                |                                                                         | settlement at once.                                                |
|                                |                                                                         |                                                                    |
| E.B.                           | Has our offer bn. put over to the villages etc.                         |                                                                    |
|                                |                                                                         |                                                                    |
| A.                             | Largely not.  Govt. propaganda is suspect:  v. diff. to put it across & |                                                                    |
|                                |                                                                         | be believed.  Suspicion is so great.  Tho' mass of people are not  |
|                                |                                                                         | anti-British, they are uneducated & impressionable                 |
|                                |                                                                         |                                                                    |
| Add.                           | To what extent is Congress Left potent?                                 |                                                                    |
|                                |                                                                         |                                                                    |
| A.                             | None in Army.  But it can apply the match - & wd. spread to Army.       |                                                                    |
|                                |                                                                         |                                                                    |
| H.M.                           | Wd. it be practicable to fix a date - para. 9.                          |                                                                    |
|                                |                                                                         |                                                                    |
| A.                             | V. diff. militarily - almost impracticable.                             |                                                                    |
|                                | Only practical way is to get agreement - by stages.  Hope para. 9 has   |                                                                    |
|                                |                                                                         | bn. rejected.                                                      |
|                                |                                                                         |                                                                    |
| P.M.                           | W'drawal of all European administrators.  Cd. rlways. e.g. be run so?   |                                                                    |
|                                |                                                                         |                                                                    |
| A.                             | Yes - tho' with loss of efficiency.                                     |                                                                    |
|                                |                                                                         |                                                                    |
| J.                             | Wd. Moslems welcome us in Pakistan?                                     |                                                                    |
|                                |                                                                         |                                                                    |
| A.                             | Probably yes because frightened of Hindustan, who wd. attack in         |                                                                    |
|                                |                                                                         | say 5 yrs.  They wd. also expect Hindustan to invite foreign       |
|                                |                                                                         | aid.  Cab. Mission have reason to believe we wd. be welcomed.      |
|                                |                                                                         |                                                                    |
| C.I.G.S.                       | V. little time.  Need for careful study.                                |                                                                    |
|                                | Effect outside - on Indian troops in Burma, N.E.I. and Malaya.          |                                                                    |
|                                | Can't give a snap answer.                                               |                                                                    |
| P.M.                        | Told crisis may arise in next few days.                                 |
|-----------------------------|-------------------------------------------------------------------------|
|                             |                                                                         |
| J.                          | But we don't intend to w'draw on first sign of trouble.  And C.O.S.     |
|                             |                                                                         |
|                             |                                                                         |
| E.Sh.                       | Suppose we cd. bring early & adequate reinforcements of B. troops.      |
|                             |                                                                         |
|                             |                                                                         |
| A.                          | Wd. increase their determination to seize power.  Don't believe you     |
|                             |                                                                         |
|                             |                                                                         |
|                             | Might help to restore situation when trouble had broken out.            |
|                             | Wd. need 4-5 Divns.                                                     |
|                             | Haven't available enough B. troops to put down general rising.          |
|                             |                                                                         |
| C.I.G.S.                    | 2 Brigades in Malay & 1 in Palestine.  Beyond that, only at cost of     |
|                             |                                                                         |
|                             |                                                                         |
| H.M.                        | RAF?                                                                    |
|                             |                                                                         |
| A.                          | Reconnaissance & in last resort attack.  But no use for protectg.       |
|                             |                                                                         |
|                             |                                                                         |
| C.I.G.S.                    | Indic                                                                   |
| ns                          |                                                                         |
| of slight increased concent |                                                                         |
| ns                          |                                                                         |
| of Sov. troops north of     |                                                                         |
|                             |                                                                         |
|                             |                                                                         |
| E.B.                        | And agents moving down via Persia.                                      |
|                             | What steps are you taking to educate I. Army re                         |
| Mission's offer.            |                                                                         |
|                             |                                                                         |
| A.                          | V. active steps.  Army = only non-communal organ                        |
| n                           |                                                                         |
| in India.  It's             |                                                                         |
|                             |                                                                         |
|                             |                                                                         |
|                             |                                                                         |
| E.B.                        | Soviet intervention:  what effect on Hindu mind?                        |
|                             |                                                                         |
| A.                          | Or people like Nehru - wd. frighten them, I think.                      |
|                             |                                                                         |
| P.M.                        | With disorder, will you get famine?                                     |
|                             |                                                                         |
| A.                          | Yes:  & one will re-act on other.                                       |
|                             |                                                                         |
| ns                          |                                                                         |
| of alternative              |                                                                         |
|                             |                                                                         |
|                             |                                                                         |
|                             |                                                                         |
|                             |                                                                         |
| P.M.                        | Alternative 1.  Not feasible - either fr. what can be done in India, or |
|                             |                                                                         |
|                             |                                                                         |
| E.W.                        | Diff. to retain loyalty to a Govt. which has shown it's going out.      |
|                             | We've done everything wh. as a Party we have promised.  Worst           |
|                                                             |                                                                          | situation wd. be to get out in circs. suggesting we're being        |
|-------------------------------------------------------------|--------------------------------------------------------------------------|---------------------------------------------------------------------|
|                                                             |                                                                          | stoned out.  Then we have lost face in East as a whole.  Wd. U.K.   |
|                                                             |                                                                          | stand that.  Are we sure tht. we oughtn't to say - done all we can, |
|                                                             |                                                                          | not going out, going to keep order.  If strong enough measures      |
|                                                             |                                                                          | were taken (incldg. arrest of Ghandi etc.) might hold the position. |
|                                                             |                                                                          | And cd. defend this even to U.N.O.                                  |
|                                                             |                                                                          |                                                                     |
| E.Sh.                                                       | Inclined to support that line.  Don't put alternative 1 as "repression." |                                                                     |
|                                                             |                                                                          | Not what we want, but what we have, to do.  Are we not in           |
|                                                             |                                                                          | danger of exaggerating certain aspects.  Congress may be            |
|                                                             |                                                                          | formidable only because it can create discord.  Is it capable of    |
|                                                             |                                                                          | presentg. powerful force v. Govt.  Must we assume tht., on          |
|                                                             |                                                                          | rejection of final offer, we must scuttle.                          |
|                                                             | Apprehensive of effect on our international pos                          |                                                                     |
| n                                                           |                                                                          |                                                                     |
| of "scuttle".                                               |                                                                          |                                                                     |
|                                                             |                                                                          | Esp. since return fr. Germany.  Good reasons for leaving Egypt,     |
|                                                             |                                                                          | but what effect psychologically in world opinion.  U.S. may         |
|                                                             |                                                                          | criticise our "imperialism", but if we leave India, Egypt,          |
|                                                             |                                                                          | Mediterranean we'll get no appreciation only regarded as weak.      |
|                                                             | Time to reconsider our pos                                               |                                                                     |
| n                                                           |                                                                          |                                                                     |
| .  Labour Party policy framed in other days.                |                                                                          |                                                                     |
|                                                             | Stand by the offer:  say we're not going to leave until there is a       |                                                                     |
|                                                             |                                                                          | solution.  Then, I agree:  we must know what forces we can          |
|                                                             |                                                                          | command to do so.                                                   |
|                                                             |                                                                          |                                                                     |
| P.M.                                                        | Viceroy is seeking middle course between repression & scuttle.           |                                                                     |
|                                                             | Face facts:  Indian Army not reliable:  I.C.S. only 500:  India not      |                                                                     |
|                                                             |                                                                          | what it was.                                                        |
|                                                             | My pos                                                                   |                                                                     |
| n                                                           |                                                                          |                                                                     |
| is:  no use adopting policy of locking up the leaders w'out |                                                                          |                                                                     |
|                                                             |                                                                          | a hope of future.                                                   |
|                                                             | What are alternatives -                                                  |                                                                     |
|                                                             |                                                                          |                                                                     |
|                                                             |                                                                          |                                                                     |
|                                                             |                                                                          |                                                                     |
|                                                             |                                                                          |                                                                     |
|                                                             |                                                                          |                                                                     |
|                                                             |                                                                          |                                                                     |
| A.H.                                                        | Before considering c) or scuttle:  cd. we not make an offer to           |                                                                     |
|                                                             |                                                                          | legislate establishg. Dom. status based on Provincial               |
|                                                             |                                                                          | legislatures.  Act of 1935 contemplated Fed. Legislature elected    |
|                                                             |                                                                          | from 11 Provincial.  Cdn't we propose that now, by short Bill.      |
|                                                             |                                                                          | The Fed. Leg. wd. nominate an Executive Govt.  All as interim       |
|                                                             |                                                                          | arrangemt., pending further search for final solution.              |
|                                                             |                                                                          | * Later:   Agreed A.H. to submit memo. on this.                     |
|                                                             |                                                                          |                                                                     |
| P.M.                                                        | That wd. dodge whole issue - who is going to govern at Centre,           |                                                                     |
|                                                             |                                                                          | Hindu or Moslem?                                                    |
|                                                             |                                                                          |                                                                     |
| A.H.                                                        | That wd. arise under present scheme.  We are now prep                    |                                                                     |
| d                                                           |                                                                          |                                                                     |
| for Council                                                 |                                                                          |                                                                     |
|                                                             |                                                                          | with Hindus & non-League Moslems.                                   |
|                                                             |                                                                          |                                                                     |
|                                                             |                                                                          |                                                                     |
|                                           | P.M.                                                                        | Read letter from P.L.  Diffy in end will be over powers of interim    |
|-------------------------------------------|-----------------------------------------------------------------------------|-----------------------------------------------------------------------|
|                                           |                                                                             | Govt.                                                                 |
|                                           |                                                                             | Indians like things in black & white. We can't change the law:        |
|                                           | but we can act by "convention" - as when Colonies were                      |                                                                       |
|                                           |                                                                             | developing into Doms.  Trouble is, the more Hindus ask for            |
|                                           |                                                                             | the more the Moslems object.                                          |
|                                           |                                                                             |                                                                       |
| E.B.                                      | Asked for answers to hypothetical ques.  Diff. to reach decisions           |                                                                       |
| on                                        |                                                                             |                                                                       |
|                                           |                                                                             | that basis.  Can't believe India will break into violence at once,    |
|                                           | given temper of the discussions.  Leaders aren't so mad as that.            |                                                                       |
|                                           |                                                                             | Surely they won't want to take over in civil war, with                |
|                                           |                                                                             | disrupted Army etc.                                                   |
|                                           | Mission spk. of coming home.  If brkdown, cd. we not wait until             |                                                                       |
|                                           |                                                                             | they returned for consult                                             |
| n                                         |                                                                             |                                                                       |
| .  Is it so intense tht. such a delay cd. |                                                                             |                                                                       |
|                                           | not be accepted.                                                            |                                                                       |
|                                           |                                                                             |                                                                       |
| P.M.                                      | Their reasons are in para. 23.                                              |                                                                       |
|                                           | It arose suddenly on failure of Cripps offer.                               |                                                                       |
|                                           |                                                                             |                                                                       |
| E.B.                                      | But what we are really asked to accept is Pakistan.  And no Govt. has       |                                                                       |
|                                           | favoured that.  And its implications need study.                            |                                                                       |
|                                           |                                                                             |                                                                       |
| P.M.                                      | Not askg. for final decision - now or next time.                            |                                                                       |
|                                           | Mission will come home if brkdown.  They want only a genl. exp              |                                                                       |
| n                                         |                                                                             |                                                                       |
|                                           |                                                                             | of view.                                                              |
|                                           |                                                                             |                                                                       |
| H.M.                                      | More I listen, more I sympathise with E.Sh. and E.W.                        |                                                                       |
|                                           | What wd. Soviet do?  a) Propaganda offensive  b) military force.  We        |                                                                       |
|                                           | aren't doing either.  We shd. show some stamina.  We're doing               |                                                                       |
|                                           | nothing to convince India tht. we're trying to hand them                    |                                                                       |
|                                           |                                                                             | independence.                                                         |
|                                           | We shd. do propaganda.  Mission shd. do some firm talking                   |                                                                       |
|                                           | Supposing situation deteriorates because they think we've no guts -         |                                                                       |
|                                           |                                                                             | then massacre etc.                                                    |
|                                           |                                                                             | Then what answer to "the runaway Labour Govt."                        |
|                                           | Make it clear tht. one thing we can't do is to let India drift into trouble |                                                                       |
|                                           |                                                                             | & chaos.                                                              |
|                                           |                                                                             |                                                                       |
| E.W.                                      | Might consider also (or even) possibility of splitting Congress.            |                                                                       |
|                                           |                                                                             |                                                                       |
| J.J.L.                                    | One early need:  make it clear we're not coming out w'out a                 |                                                                       |
|                                           |                                                                             | settlement.  We shd. then earn contempt of Moslems, no thanks         |
|                                           | from Hindus, & violence to Europeans.  Wd. have steadying                   |                                                                       |
|                                           |                                                                             | effect in India.                                                      |
|                                           | Frame of mind of Mission may become known in India.                         |                                                                       |
|                                           |                                                                             |                                                                       |
| C.E.                                      | But if we take that line, we must find B. re-inforcements.                  |                                                                       |
|                                           | V. distant:  wd. have to be moved by sea.  What implications?               |                                                                       |
|                                           | Need for 200.000 almost at once:  & if widespread trouble further           |                                                                       |
|                                           |                                                                             | re-inforcements.                                                      |
|                                                               | Where cd. we get shipping?                                                |
|---------------------------------------------------------------|---------------------------------------------------------------------------|
|                                                               | Doubt if Australia & N.Z. wd. help on this.                               |
|                                                               | Need C.O.S. appreciation:  then a quick decision before situation         |
|                                                               |                                                                           |
|                                                               | But, if we can do it, I'm in favour of E.Sh. view.                        |
|                                                               |                                                                           |
| H.D.                                                          | Beware of words - repression, scuttle.                                    |
|                                                               | Agree must await C.O.S. apprec                                            |
| n                                                             |                                                                           |
| .                                                             |                                                                           |
|                                                               | But economically, financially, militarily etc., we can't afford situation |
|                                                               |                                                                           |
|                                                               | Don't be heroic.  Believe we must seek a means of disengaging             |
|                                                               |                                                                           |
|                                                               |                                                                           |
| P.M.                                                          | Not only troops.  In districts of 3-4 m. only 3 British.  The Br. machine |
|                                                               |                                                                           |
|                                                               |                                                                           |
|                                                               |                                                                           |
|                                                               |                                                                           |
|                                                               | B. machine is tired, weak & dispirited.  Wd. have to re-create it.        |
|                                                               |                                                                           |
| E.B.                                                          | At Moscow, when I was contendg. for sep. rep                              |
| n                                                             |                                                                           |
| of India at Peace                                             |                                                                           |
|                                                               |                                                                           |
| ce                                                            |                                                                           |
| , Stalin said risk of separatist movemt. in India.  Can't run |                                                                           |
|                                                               |                                                                           |
|                                                               |                                                                           |
|                                                               | I said hoped India wd. remain in Commonwealth - then                      |
|                                                               |                                                                           |
|                                                               | This morning's disc                                                       |
| n                                                             |                                                                           |
| shows L.S.A. was right as against W.S.C. during               |                                                                           |
|                                                               | the war.                                                                  |
|                                                               | Wd. like studies by C.O.S. on definite t. of r.                           |
|                                                               | {   a)                                                                    |
|                                                               | {     C.O.S.                                                              |
| capable of governing during int. period pendg.                |                                                                           |
|                                                               | {                                                                         |

 
{ 
Put that first:  for if civil war broke out it wd. go to U.N.O. 
 
{   b) F.O.& I.O.  What condns wd. make it possible under Charter for 
 
{ 
 
         U.N.O. to step in. 
 
{ 
On this ground, I fear the announcemts in telegram. 
 
{   c)  
Hindustan:  Pakistan.  Wd. it be workable:  what steps to 
 
{ 
 
give effect to it. 
 
{   d)  
What action to hold posn for a month or so while Cab. 
 
{ 
 
considers whole problem. 
 
 
Might be useful to ventilate, to world opinion, by Parly Debate.
 
Shd. I, at this stage, inform U.S. in confidence?  Believe the East is 
 
 
the real danger of war:  it's there tht. conflict betwn. U.S. & 
 
 
Soviet is most dangerous. 
 
 
Korea:  N. Manchuria:  deadlock in Japan. 
 
 
May I tell Harriman, for commn to Byrnes via secret channel.  
 
Now or after next mtg?  Intended anyhow to tell him of Soviet 
 
concentns nr. Afghanistan. 
 
This is the biggest issue we have ever had to face. 
 
P.M. 

Don't speak to Harriman until we know Mission have failed to 
 
 
bring it off. 

  

## 1.    Parliament

 
 
Business for next week 
 
2.    India 

 P.M. 
C.O.S. won't be ready until Tuesd.  No use therefore to meet Friday.  
Propose to send telegram giving preliminary reactions of Cabinet. Draft handed round. E.B. 
Shd M/L. enquire attitude of demob. men to returg. to India? 
 
P.M. 
Too early for that.  And C.O.S. will have it in mind. J.J.L. 
It's clear already tht. the men didn't think it worth while being there. E.B. 
V. well - it's political: but keep it in mind. J. 
Let C.O.S. be reminded of it. E.B. 
Para. 8.  Support for higher priority for women & children. J.J.L. 
Use discretion because of delaying men's return. 
 

 

## 3.      Germany:  Administration Of British Zone.



[Exit A.H. A.G. 


[Enter J.B.H., Bilcher 

O.H. 
H.D. 
As in memo. 
 
Often troubled by this.  Time to bring it formally to notice of Cabinet. 
 
Money - as in memo. 
 
Staff - fear too many:  fewer wd. be more efficient:  shd. be reviewed. 
 
Cost of mil. occupn - over £100M p.a.  Recognise these wd. have to be paid 
wherever they were.  But can't we use more R.A.F. and less army. 
 
Potsdam - we are being had for mugs:  carrying it out while others don't. 
Reparations deliveries to R. continuing. 
 
Timber.  Since memo. spoken to Roy Robinson, who has recently bn. to G & 
reported to Ag. Ministers.  Our timber is our war potential: we shd. now conserve.  But because total failure of our people to get timber out of G.  - & I hold Timber Control responsible.  Untrue tht. all timber is in U.S. zone. 
 
 
Ask for a competent probe. 
 
Machine tools & plant:  we have taken virtually nothing. 
 
Propose: a) enquiry to reduce B. troops. 


b) enquiry into efficiency of Control Commn. 


c) enquiry why we don't collect our money. 



d) enquiry into timber:  failure of own administration. 
 
Accept financial obligation for 1947.  Propose, however, grants (civilian) to 
cease at end/1947. 
 
P.M. 
Has this bn. brought to O.R.C.? 
 

| J.B.H.                                                           | This is first sugg                                                      |
|------------------------------------------------------------------|-------------------------------------------------------------------------|
| n                                                                |                                                                         |
| of overstaffing at N. House or in Germany.                       |                                                                         |
|                                                                  | In N. House we are under                                                |
| staffed.  Long hours.  Not long to build up.                     |                                                                         |
|                                                                  | In Germany, much staff belongs to other Depts.  e.g. B.I.O.S. :  Timber |
| Control:  Finance Divn Investig                                  |                                                                         |
| n                                                                |                                                                         |
| Branch (Ty. who protested v. recent                              |                                                                         |
| cut in its staff):                                               |                                                                         |
|                                                                  | Billing of a/c.  I'm not satisf                                         |
| d                                                                |                                                                         |
| .  But none at all before my office establ                       |                                                                         |
| d                                                                |                                                                         |
| .  And                                                           |                                                                         |
| with Ty. concurrence no bills sent out until Apl.  Why does H.D. |                                                                         |
| assume further delays.                                           |                                                                         |

 
Pressing fwd. now with Germanisation.  304 B. v. 3.000 G. on timber. 
 
I never said no timber in B. zone.  Recently got Balts fr. d.p. camps to work 
on timber.  Lenanton satisfd at pace.  But can't get full days work on 
low rations.  Timber now comg. out at rate wh. will enable us to reach our target by end/year - overtaking arrears. 

|                                                          |
|----------------------------------------------------------|
| never get anything out of G. until we use coal then vice |

export. P.M. 
Allocations quadripartite? 
 

| J.B.H.                                                              | Yes.  But are we ready to say no coal for France?    |
|---------------------------------------------------------------------|------------------------------------------------------|
|                                                                     | Unilateral deliveries.  Sugg                         |
| d                                                                   |                                                      |
| at O.R.C. tht. we shd. take what we wanted.                         |                                                      |
| Was agreed 15/5 shd. be date by wh. we shd. have finished our       |                                                      |
| removals.  But found impracticable.  Because need to observe        |                                                      |
| quadripartite agreemts.  Recently reached new understandg. on this. |                                                      |

 
Potsdam is what prevents us fr. bldg. up sound economy & prevents positive 
policy. 

|                        |
|------------------------|
| confer with them soon. |

 

P.M. 
In Germany - suggd too many indifferent offls.  Fewer & better? 

 J.B.H. 
Diff. to establish w'out searchg. enquiry. 

|                  |
|------------------|
| & under Potsdam. |

 P.M. 
Classify numbers? J.B.H. 
Nor w'out notice. 
 

J.J.L. 
Wd. welcome redn in B. troops.  But that is for C.O.S. 

 

P.M. 
Examd in Def. Cttee. - who have already cut them below C.O.S. minimum. 

 

| E.Sh.                                                               |
|---------------------------------------------------------------------|
| n                                                                   |
| re coal was E.C.O. & went therefore to enquire myself.              |
| But in fact coal runs thro' whole economy.  Have reported to P.M. & |
| will prepare full report for Cabinet.                               |

 
Agree with H.D. re timber:  understatement. 
a) Quadrit. system hangs like a mill-stone round B. adminn.  Ques: not in 
this right.  But: is this in acc. with Potsdam? 
b) 
No civil adminn as such.  Civil offls. subordinated to mil. command 
centred in Dept. Govt.  Quality of civil personnel is v. poor - in ability & in personal character too. 
c) 
Coal.  N.G. Coal Commn obsessed with need to meet Fr. demands, 
w'out regard to adverse effect of high exports.  I suggd moratorium on 
coal experts. 
 
 
Miners want food: for food processing coal is needed:  can't get coal 
w'out coal accessory machinery:  can't get tht. because no steel:  & no 
steel because no coal.  No tyres because no coal to run synthetic rubber plants.  Yet thousands of unemployed: reservoir untapped. 
 
No improvement, thro' examn of officials, until Potsdam mill-stone 
removed. Believe few good offls. cd. run the show better - thro' Germans.  Tho' diffy. over de. nazification policy. 
 
Finance. 
Our people are living v. well out there.  Not good for morale. 
 
Timber. 
Lenanton v. good - 10,000 t. exported.  11/4M. by end/year.  But 
only if quadripartite set-up doesn't trip him up.  Use of d.p.'s - they are afraid of using them because crim. tendencies.  Masses of trees. D.p.'s our policy shd. be work or starve. 
 
We shd. have known more of what is going on in Germany. 
 
Exports of coal to France.  If we are going to get B. zone right, we must 
refuse exports to France.  For 6 mos. we must plough it back into B. zone. 

 E.B. 
Basis of set-up was we shdn't. get anythg. out of G. in 1st year.  We foresaw 
all thes diffies.  All comes back to Potsdam.  But if you are going for 
self-supporting basis, you must face a def. break with Russia. 
 
We all know tht. R. havg. got agreemts, become inflexible: & hold up action 
on A.C.C. Berlin. 
 
France.  Dead easy to say send no coal.  And if you hadn't R. propaganda in 
Fr. wd. have given you Comm. France.  How wd. you join like that? How wd. H.D. if he were at F.O.  What price is it worth to avoid having R. on Channel Ports? 
 
Thus, I wd. be reluctant to break.  And wd. rather R. made the break.  She 
may - now U.S. have refused to deliver plant.  Wd. sooner U.S. had a row with R. than tht. we opened it.  Why haven't I asked Cab. to follow suit?  Fears of "ganging up".  Thght. it wiser to wait until 
C.F.M.  If then no soln of econ. unity of G., I will come in with Byrnes. 
 
Watch India too.  Can't ignore infiltration twds. Afghanistan.  If we flout R. 
over Potsdam, their counter-stroke might be re. India.  We are vulnerable. 
 
Haven't had time to submit memo. 
 
Adminn in G.  After C.F.M. Ldn. I spoke to D.H. : and Ty are to blame if it 
hasn't be investigated.  Byrnes has spoken to me & suggd top-heavy B. 

administration.  We have a right to Ty. criticism:  help on such a thing as form of B. administration. 
 
If we had what H.D. wants, we shd. have violated Potsdam. 
 
Wd. you say I was wise if I'd stopped export of coal to Belg., Holl. & Fr.  I 
thght. their re-creation was more urgent & import. than Germany.  Do you dissent?  Cdn't have done both.  Alphand says G. plants have more coal than Fr.  Their complaint re us is tht. we are too tender to Germans, in our methods:  they say because we are wrkg. thro' military. 
 
Crisis is near.  Are you wise to change until we see outcome of C.F.M.? But 
we shd. work out 2 plans a) assumg. defiance of 4-Power control when it involves us in expenditure over & above what G. can pay.  That is if Potsdam stands. 
 
 
b) a complete break with Potsdam. But that means irrevocable partition 
of Germany & Commn fr. Trieste to Stettin.  Will H.D. take 
responsibility for that? 
 
 
This is what H.M.G. have bn. trying to avoid all along. 
 
O.R.C.   You gave us only policy - not adminn, wh. came under C. office.  
Thus no avoidance of its responsibilities. 
 
 
But am willing to see O.R.C. strengthened.  Wd. like to see E.Sh. on it:  
also other Ministers with staff out there.  If O.R.C. had progress rpts & 
task of co-ordinating & overseeing adminn, it wd. help me at F.O.  Wd. 
like more informn re day-to-day diffies. Often M & Byrnes know more 
than I do.  Then I wd. prob. need another Parly. Secy. 
 
 
J.B.H. has done well.  But need help.  Believe he wd. welcome it.  
Shortage of good staff. 
 
 
In general, reconstitution of O.R.C. as in brief.  M/Supply & M/T. are 
affected too.  P.M.  M/Food also. 

|                                                    | Food:    Coal                                                               |
|----------------------------------------------------|-----------------------------------------------------------------------------|
| n                                                  |                                                                             |
| Govt. misled by Cherwell.                          |                                                                             |
|                                                    | F.O. memo in prep                                                           |
| n                                                  |                                                                             |
| now.  Let both go to enlarged O.R.C.               |                                                                             |
|                                                    |                                                                             |
| P.M.                                               | Right course - reconstruct O.R.C.  J.B.H. has had diff. job.  Needs support |
| of colleagues.  Some of complaints are not v. him. |                                                                             |
|                                                    | I will consider compos                                                      |
| n                                                  |                                                                             |
| & t. of r.                                         |                                                                             |
|                                                    | On wider issue:  wait, as E.B. says, until after Paris.                     |
|                                                    |                                                                             |
| H.M.                                               | R. are puttg. own interpret                                                 |
| n                                                  |                                                                             |
| on Potsdam.                                        |                                                                             |
|                                                    | Prs. unwise to challenge P. as such.                                        |
|                                                    | But R. aren't complying - on economic unity principles.  Econ. Comp         |
| ns                                                 |                                                                             |
|                                                    |                                                                             |
| must come in as well as foreign policy.            |                                                                             |
|                                                    |                                                                             |
| E.B.                                               | Haven't they?                                                               |
|                                                    |                                                                             |
| H.M.                                               | No.                                                                         |
|                                                    |                                                                             |
| E.B.                                               | Liar.  If O.R.C. can do it, well & good.  Had wondered whr. E.Sh. cd.       |
| enquire into coal ques.                            |                                                                             |
|                                                    |                                                                             |
| P.M.                                               | Will consider how to organise continuous supervision and support for J.B.H. |
| by colleagues who must be Cab. Ministers.          |                                                                             | H.D. 
Content tht. my memo. shd. go to new O.R.C.  Hope all Dpts concerned will 
be on it.  Must have prompt informn. 


[Enter Dugdale 


[ Exit Belcher 

## 4.     Despatch Of Families To B.A.O.R.

 P.M. 
What about this latest unauthorised Press rpt. J.J.L. 
Men had heard about it.  Press were troubling:  A.G. authd statemt. tht. 
machinery was ready when Cab. decided.  Told him to have corrn 
issued of Herald story. J.B.H. 
B.A.O.R. disclosure.  Col. Jackson, Rhine Army. P.M. 
 W.O. to make written rpt to me. 
 
 
Figures: 10,000 wives & 15.000 children. E.W. 
Dissent.  Think it a mistake to send the children:  also don't want to spare 
the teachers.  Expensive scheme & doubt if its worth it. H.M. 
Parly. Secretary agreed. with this. J.J.L. 
I won't rush this merely because of pressure from the men. E.Sh. 
Varying views in Br. zone.  Not keen on it in Ruhr.  Elsewhere favour it. 
 
Bound up with future of B. adminn.  No need to let them go out until decided 
how we are going to administer the zone. 
 
Food & accommodation for 25.000 is not inconsiderable. P.M. 
Folly to begin it at once.  Plan & prepare. Dugd. 
As in Malta & Gib. where they can go out only as housing is available. J.B.H. 
Housing is there. P.M. 
Be careful & go slowly.  Promise nothing earlier than August. 


After discussion:  Agreed remit to O.R.C. (new style) 


[Exit Dugdale 

## 5.     Repatriation Of Soviet Citizens.

 E.B. 
As in memo. 
 
This will bring us into line with U.S. 
 
P.M. 
A.E. signed on behalf of Doms. also.  Asked for views of Doms. 

 A. 
Don't believe any are directly involved.  Want few more days to verify. 


Agree it, subject to that. 
 

| J.B.H.                                                     | "R. attitude has softened."  But recent signal re removal of B. dead.       |
|------------------------------------------------------------|-----------------------------------------------------------------------------|
|                                                            | In general, welcome the policy:  but hope E.B. will query inclusion of Todt |
| workers.  Also want Sov. informed before we put it into op |                                                                             |
| n                                                          |                                                                             |
| .                                                          |                                                                             |
|                                                            |                                                                             |
| E.B.                                                       | Will of course inform M.  But intention of Todt workers - why keep these    |
| bouches inutiles.                                          |                                                                             |

 
J.B.H. 
Forceful repatn lead to suicides.  B. troops don't like that. 
 
Don't want to be more tender than U.S. 
 
 
Agreed:  memo. 

## 1. Anglo-Egyptian Treaty.

 
E.B. 
Consultns with S.  New draft shd. put us in stronger posn than under Treaty of 
1936. That gave us no right to go in - tho' true we were there. 
 
Art. 4 is key to whole Treaty.  Similar language in Arab league. Wd. enable 
later expansion to cover dangers in whole area. 
 
Devised to fit in with Security Council procedure. 
 
Treaty simplified. 
 
Vital part is Evacuation Protocol.  Art III of that, "placed at disposal of Eg. 
Forces". 
 
 
That wd. keep them in cold store for us.  Believe they will accept that. 
 
 
Arts III - IV is a concealed long-term w'drawal - substitution of 5 yr. 
period in another form.  When it gets to mil. level, + we are away fr. Cairo, pressure for speed will be less. 
 
Bldgs.  Under '36 Treaty cost wd. have fallen on Egypt.  Never built - 
because we stayed in Cairo.  If we were ready to carry cost & hand over to E., stores cd. remain ours - believe E. wd. accept that.  That might be a good bargain for us, even financially, and wd. enable us to 
get what we want.  But if financial oblign left with E. won't be done. - 
whr. under 1936 Treaty or otherwise. 
 
Cdn't stay under canvas: cdn't force E. to build. 
 
Propose send this out & ask if any need for S. to return. 
 
Not wedded to words.  Principle I want accepted.  Suggd Joint Bd. system 
when it became clear we cdn't get a lease of a base.  Flattering to E. to follow Canadian - U.S. precedent.  Sidky hasn't yet reacted.:  King is impressed & wants this.   Care over word "Joint" because Joint Govt. in Cromer's day - may have to find another word.  Disagreement on 
Bd. - cdn't have an arbitrator.  Bd. gives a regular right of consultn 
thro' standing mechanism.  Another reason - scene is changing:  what 
shall we do for India if independent? :   this Joint Bd. principle wd. not 
be a bad precedent for India - better than having left this problem vague in Egypt. 

 S. 
E.B. has covered the ground. 
 
No doubt of unity of Eg. opinion, from King downwards. 
 
Working Joint Board - need for latitude. 
 
May not accept "M/East":  may ask for "neighbouring countries". 
 
Glad to hear King has reverted to this idea. 
 
Alternative: face opposn fr. united Egypt. C.I.G.S. 
Don't think this provides security we need in Egypt. 
 
Original offer of alternatives by S. - said Eg. wd. meet us half-way & give 
                        x/  us complete freedom of action on threat of war.  We aren't getting that. 
No assurance tht. Joint Bd's recommns  wd. be accepted. 
 
Lost our first gamble.  Isn't this another?  Slippery slope. 
 
Diff. to see what use Joint Bd. will be. P.M. 
Choice:  good-will instead of binding Treaty obligns. C.I.G.S. 
Tried good will.  Brought us nothing.  cf. Irish Ports. H.D. 
Had thought strategic issues safeguarded by this as much as now. 
 
Sterling debt £450M - second only to India.  Thought we shd. take all 
financial discns at once, offsetting what we are now ready to sell.  
Finance however is kept open by memo.  Will discuss with F.O.  Don't 
want detail in Art IV - some addn to III wd. suffice. 
 
Attracted by idea of bldg. installations ourselves. A. 
Detailed points.  P.7. Art III.  Presupposes all wd. be removed or disposed 
of.  But goes on " or placed at disposal of E. Forces".  Add "or 
safeguarding" in 1st phrase. 
 
 
For Art IV assumes B. techn. personnel will be left to look after them. 
 
P.4. Art. 4.  Cd. you insert words going beyond advice. E.B. 
But these are the 1936 words. 
 
Key is:  do we insist on Art. 7 of earlier draft?  Acc. to all advice from them, 
you can't get a new Treaty incldg. Art. 7.  Ques. is: are we to fight it? P.M. 
If we are to stand on 1936 Treaty we must 
a) evacuate Cairo & Alex. b) 
reduce nos. to those allowed. 
 
And what about refce to L/N? E.B. 
L.O.'s are considg. 
 
My advice is you can't get Art. 7. provision w'out taking country over:  but 
if you go for Joint Bd. you will get better facilities than any other way. P.M. 
What dates in Evacuation Protocol? 
 
S.                     Beg. C.O.S. to hurry.  We have 300.000 B. troops there - 20 times the authd     
number. H.M. 
Sympathise with apprehensions of C.O.S.  But I can't judge whr. we cd. do 
better. J.J.L. 
Not much meat in Def. Bd.  Shd. get something definite. 
 
Sterling balances - no need for us to be generous on finance of Treaty. E.B. 
What do we do with Australia - any agreement that they will help in war - 
and she is a Dominion.  Is Egypt an independent country?  Can you force it to give such rights. 
 
Stand on 1936 Treaty?  What powers does that give?  None to take over 
commns.  What rights do you envisage for India? J. 
We are commd to complete w'drawal.  Trouble is no assurance like Art. 7 of 
rights on threat or outbrk. of war.  Wd. they take "In event of threat or outbk of war E. Govt. shall notify U.K. & we shall come to their aid."  
That wd. give us some right because of acceptance of oblign.  Wd. they 
regard that as mark of inferiority? C.I.G.S. 
Wdn't give us guarantee. P.M. 
E. is in posn where, if we get into war, they are automatically involved in 
war.  We can involve them by our actions.  Doms. all in much better 
posn.  E., tho' indep. State, is no worse posn than a Dom.  How can you 
defend that, nowadays, to Egypt. C.I.G.S. 
It's their geograph. posn which exposes them to risk in war. S. 
Our installns in E. are there, not by virtue of 1936 Treaty, but because they 
asked us to build them.  They can & will ask us again. 
 
Still believe x/.  But they won't have it written down in a Treaty or Protocol. C.I.G.S. 
Tho' they are independent, their interests are same as theirs. P.M. 
Same argument applies to Holland & Belgium.  You can't on that a/c say 
they must accept any Treaty that we propose. E.B. 
Eg. say - we want same freedom as Holland etc. 
 
Pity W.S.C. let cat out of bag tht. what we want is, not to protect Canal, but 
to secure bases for offence. A. 
Atmosphere.  300,000 B. troops. S. 
Includes 100,000 p.o.w. C.I.G.S. 
Art. 5. - doesn't cover precaut. stage. or peace.  War only. 
 
E.B. 
Art. 4.  Is there anything stronger in Iraq Treaty? C.A.S. 
Yes:  some definite rights. P.M. 
Not what we want, but we can get.  Suppose No Treaty.  Then get out or go 
to ????  Even Art. 7 of 1936 is no use w'out good will.  And insist on this sort of thing or try to stand on 1936, and you sacrifice the good will. 
 
1936 negotiated under threat of Mussolini.  What sanction have we now for 
pressing for more? A. 
Wording of Can. U.S. Agreemt. might be of some use. E.B. 
Cd. we define "common task" - defending commns etc. 
 
Cd. C.O.S. try again, in consultn with F.O. 
 
1936 promised revision after 10 yrs.  they say "clouds of war have now 
dispersed" - we have a right now to somethg. more favourable to E. than '36. 

P.M. 
Let C.O.S. and F.O. re-consider. 
 
Also point of E.Sh.  Oil installns to be handed, not to E. Govt. but to B. oil 
cos. 


Resume 6.p.m. Friday 

## 2. India

 
P.M. 
Read telegram fr. Cab. mission re publicn of corrce: with Azad. 
 
Propose instead issue of statement re position of interim Govt. 
 
I wd. say tht. is w'in instns of Mission & preserves constit posn. 


Authd 

## 1.    Parliament

 
H.M. 
Business for next week. A. 
H/Lds. Coal Bill - some trouble.  Going to discuss with E.Sh. and H.D.  
Shd. finish soon. 

 H.M. 
Shd. we consider what to do when H/Lds. get difficult J. 
Bill to give H/C. last word on H/L. amendmts. 
 
A. 
Don't believe trouble will come for a year or 2. H.M. 
Then it may be too late to work Parlt. Act. H.D. 
Reduce delay under Partl. Bill fr. 2 years to same Session. P.M. 
But rejection on 2nd Reading - wdn't then come back to H/C. x/. 
J. shd. consider what shd. be done.  /x H.M. 
This Bill must start soon if we are to force it thro' under Parlt. Act this Parlt. 
 
 
Agreed as at x/. 


[Exit W.W. 


[Enter C.O.S. & N.B. 
 

## 2.     Palestine

 
P.M. 
E.B. was to talk to Byrnes early this a.m. & let me know. 
 

| G.H.                                                                     | Telegram fr. High Commr.  Kidnapping - on top of worsening situation -       |
|--------------------------------------------------------------------------|------------------------------------------------------------------------------|
| has created diff. pos                                                    |                                                                              |
| n                                                                        |                                                                              |
| with B. troops.                                                          |                                                                              |
|                                                                          | With P.M.'s consent, I sent for Ben Gurion y'day p.m. - v. diff. attitude on |
| his part.  Seemed genuinely distressed, particularly at kidnapping, &    |                                                                              |
| agreed to issue a statement of regret etc. (as in Times).  Cpd. with his |                                                                              |
| attitude over last 6 months, this shows anxiety at recent sit            |                                                                              |
| n                                                                        |                                                                              |
| in Pal.                                                                  |                                                                              |

 
 
He categor. denied any commn. betwn. Agency & Hagana - dissociated 
himself from Stern Grp. & Irgun Zwei Leumi.  Not so clear abt. some Hagana troops.  Mtg. him again to-day. 

|                                                                          | H. Commr. has asked for 6 mos. past for powers to deal with situation.  In    |
|--------------------------------------------------------------------------|-------------------------------------------------------------------------------|
| Jan. decided we shdn't search for arms.  Later, after Tel. Aviv murders, |                                                                               |
| H. Commr. asked for discretion to put into op                            |                                                                               |
| n                                                                        |                                                                               |
| plan for cleaning up                                                     |                                                                               |
| illegal J. organ                                                         |                                                                               |
| ns                                                                       |                                                                               |
| .  Def. Cttee decided H.M.G. must retain this                            |                                                                               |
| discretion.  H. Commr now feels v. deeply.  Promised not to act unless   |                                                                               |
| he must.                                                                 |                                                                               |
|                                                                          |                                                                               |
|                                                                        | For 9 mos. Agency has bn. un-cooperative.  And until y'day made no           |
|------------------------------------------------------------------------|------------------------------------------------------------------------------|
| statemt. of regret or renunciation.                                    |                                                                              |
|                                                                        | Believe H.C. shd. now have this discretion.                                  |
|                                                                        |                                                                              |
| P.M.                                                                   | H.G. sugg                                                                    |
| n                                                                      |                                                                              |
| of brkg. off disc                                                      |                                                                              |
| ns                                                                     |                                                                              |
| re 100,000.  Wrong.                                                    |                                                                              |
| a) because we haven't adm                                              |                                                                              |
| d                                                                      |                                                                              |
| we will allow the 100,000 to go.                                       |                                                                              |
| b)                                                                     | brkg. off disc                                                               |
| ns                                                                     |                                                                              |
| with U.S. is a poor way of bringing pressure on                        |                                                                              |
| Jews.                                                                  |                                                                              |
|                                                                        | Saw Harriman y'day - suggested earlier arrival of Grady's party.             |
|                                                                        | Limit to what B. troops can stand.  May be trouble with them.  Diff. to deny |
| this discretion to H.C.                                                |                                                                              |
|                                                                        | Awkward tht. Mufti shd. now turn up & in Egypt.                              |
|                                                                        |                                                                              |
|                                                                        |                                                                              |
|                                                                        |                                                                              |
| C.I.G.S.                                                               | Tel. from Paget, supporting H. Commrs request.                               |
|                                                                        | Reached stage at wh. can't put more strain on troops.                        |
|                                                                        | Signal of 19/6 - puttg. Jewish places out of bounds:  walking in pairs etc.  |
|                                                                        | Another signal - search of settlement:  poss                                 |
| n                                                                      |                                                                              |
| of arms admitted.                                                      |                                                                              |
|                                                                        | Damage to rlways.                                                            |
|                                                                        | Kidnapped 5 in Tel Aviv.  One more officer missing: & one nursing sister.    |
|                                                                        | C.O.S. consider freedom of action shd. now be given to C. in C. M/E. and     |
| H.C.                                                                   |                                                                              |
|                                                                        | Simultaneous disarmament of Arabs.  We can manage Jews.  But if we are       |
| beginning to implement Anglo. Am. Cttee Rpt.  Fr. mil. angle better to |                                                                              |
| confirm action to Jews & base it on retribution for recent action.     |                                                                              |
|                                                                        |                                                                              |
| N.B.                                                                   | F.O. consider - don't brk. off Anglo. U.S. talks:  do accelerate 2           |
| nd                                                                     |                                                                              |
| party.                                                                 |                                                                              |
|                                                                        | We think H.C. shd. be given discretion now.  "Hostages" is worse than        |
| murder.                                                                |                                                                              |
|                                                                        | But Ben Gurion's denial of contact with Hagana.  Mil. plan was based on      |
| assumpt                                                                |                                                                              |
| n                                                                      |                                                                              |
| tht. Agency controls Hagana - & involves seizing offices of            |                                                                              |
| Agency & arrestg. their leaders.  That wd. cause trouble in U.S.  Cd.  |                                                                              |
| we avoid doing that part?                                              |                                                                              |
|                                                                        |                                                                              |
| P.M.                                                                   | Not clear whr. H.C. intends to go for Agency.                                |
|                                                                        |                                                                              |
| G.H.                                                                   | Has asked him to name those whom he wd. arrest.                              |
|                                                                        |                                                                              |
| T.W.                                                                   | Cdn't Ben Gurion (v. influential on Agency) persuade Agency to declare tht.  |
| until attacks cease & hostage released they won't negotiate with U.K.  |                                                                              |
| & U.S. Govt.                                                           |                                                                              |
|                                                                        |                                                                              |
| G.H.                                                                   | He wdn't go so far.  Can put it to him again this p.m.                       |
|                                                                        |                                                                              |
| P.M.                                                                   | But c.f. reply of Agency - not dicussg. Rpt. until 100,000 admitted.         |
|                                                                        |                                                                              |
| H.M.                                                                   | The Agency isn't what it was - those who believe in physical force have      |
| now got much more control.  Ben Gurion is tough & increasingly non-    |                                                                              |
| cooperative.                                                           |                                                                              |
|                                                                        | Believe Agency is torn several ways:  fr. co-op                              |
|------------------------------------------------------------------------|------------------------------------------------------------------------------|
| n                                                                      |                                                                              |
| thro' violence to                                                      |                                                                              |
| insurrectionist.                                                       |                                                                              |
|                                                                        | If this goes on, B. forces & police won't keep their morale.                 |
|                                                                        | Don't like busting Agency as such.  But we shd. authorise him to pick up the |
| leaders of the violence movement - fairly extensively.  Simultaneously |                                                                              |
| adequate nos. may brk. up the organ                                    |                                                                              |
| n                                                                      |                                                                              |
| :  will show our intent                                                |                                                                              |
| n                                                                      |                                                                              |
| to govern.                                                             |                                                                              |
| Can't go on protesting & makg. Parly. statements.                      |                                                                              |
|                                                                        | Disarming.  Wd. be nice to disarm both simultaneously.  But                  |
| a) wd. increase practical diff                                         |                                                                              |
| ies                                                                    |                                                                              |
| for the auth                                                           |                                                                              |
| ies                                                                    |                                                                              |
| .                                                                      |                                                                              |
| b) Arabs are not giving trouble now thro' violence.                    |                                                                              |
|                                                                        |                                                                              |
| J.J.L.                                                                 | If B. troops begin to retaliate, you'll get a Black & Tan situation.         |
|                                                                        |                                                                              |
| E.Sh.                                                                  | Agree pick up conspirators.                                                  |
|                                                                        | But care over further proposals of C.O.S. - mght. create a worse situation.  |
| Not clear tht. all violence due to terrorists.  What happens if you    |                                                                              |
| suppress Agency?                                                       |                                                                              |
|                                                                        | Might encourage extremism.                                                   |
|                                                                        | Disarmg. Jews but not Arabs will cause serious reactions, in Pal &           |
| elsewhere.                                                             |                                                                              |
|                                                                        | Mufti - outrage tht. Farouk shd. give him asylum.                            |
|                                                                        |                                                                              |
| P.M.                                                                   | Read out E.B.'s Telegram 228.                                                |
|                                                                        | B.A. goes too far - we haven't accepted that recomm                          |
| n                                                                      |                                                                              |
| .                                                                      |                                                                              |
|                                                                        |                                                                              |
| J.                                                                     | Continue with disc                                                           |
| ns                                                                     |                                                                              |
| .  But disarm.  Jews first:  but make it clear tht. it's part          |                                                                              |
| of policy to disarm Pal. & Arabs will come next.  Private armies are   |                                                                              |
| inconsistent with good Govt.                                           |                                                                              |
| Pick up conspirators as such, not as member of Agency.                 |                                                                              |
|                                                                        |                                                                              |
| S.                                                                     | Strong action:  but associate it with these acts, not with earlier decl      |
| n                                                                      |                                                                              |
| re                                                                     |                                                                              |
| disarming both sides.  Latter too big a task.                          |                                                                              |
|                                                                        |                                                                              |
| T.W.                                                                   | Supported that line.  Wholesale disarming of Jews w'out Arabs wd.            |
| consolidate Jewish opinion.                                            |                                                                              |
|                                                                        |                                                                              |
| H.D.                                                                   | Is it clear tht. kidnapping is by Hagana.                                    |
|                                                                        |                                                                              |
| C.I.G.S.                                                               | Both.  Latest by Irgum. - their members are under death sentence.            |
|                                                                        |                                                                              |
| H.D.                                                                   | For some say Hagana is legitimate defence force.  If therefore you cd. first |
| disarm the more extreme groups, leaving Hagana alone while Arab still  |                                                                              |
| armed, you wd. be in a better position.                                |                                                                              |
|                                                                        |                                                                              |
| P.M.                                                                   | Diffy. of separating which are which.                                        |
|                                                                        |                                                                              |
| C.I.G.S.                                                               | Not going for Agency as such.  There are organ                               |
| ns                                                                     |                                                                              |
| w'in it tht. control the                                               |                                                                              |
| extremists.  Want therefore to get their pp. to show this.             |                                                                              |

 

| G.H.                                                                       | Message fr. Palestine - "all pretence tht. Agency is unconnected with       |
|----------------------------------------------------------------------------|-----------------------------------------------------------------------------|
| Hagana is now dropped."                                                    |                                                                             |
|                                                                            |                                                                             |
| P.M.                                                                       | Genl. views.                                                                |
| a. H. Comms. must be given more power to act.                              |                                                                             |
|                                                                            | No good his threatening if he can't act.                                    |
| Give him power to deal with any organ                                      |                                                                             |
| ns                                                                         |                                                                             |
| wh. he is definitely                                                       |                                                                             |
| b.                                                                         |                                                                             |
|                                                                            | convinced are responsible for this situation.  No power to close            |
|                                                                            | Agency as such - tho' can raid it for inform                                |
| n                                                                          |                                                                             |
| .                                                                          |                                                                             |
| c. Disarming.  More diff. to do both:  but if Jews only will be said       |                                                                             |
|                                                                            | we're backing Arabs - bad reaction fr. U.S.A.                               |
| Thus, demand surrender of all arms & try to enforce it.                    |                                                                             |
|                                                                            |                                                                             |
| N.B.                                                                       | Support c).  Recomm                                                         |
| n                                                                          |                                                                             |
| 10 of Rpt.  Might lighten mil. burden because wd.                          |                                                                             |
| diminish J. insist                                                         |                                                                             |
| ce                                                                         |                                                                             |
| if Arab arms also both surrendered:  might even get                        |                                                                             |
| J. Agency support.  Hagana was started as defence re. armed Arabs.         |                                                                             |
|                                                                            | Need for maintaing. U.S. interest & support.                                |
|                                                                            |                                                                             |
| J.J.L.                                                                     | Diff                                                                        |
| ies                                                                        |                                                                             |
| betwn. demanding & enforcing surrender of arms.                            |                                                                             |
|                                                                            |                                                                             |
| E.Sh.                                                                      | Agree to a & b. viz. action v. conspirators.  And defer c.                  |
|                                                                            |                                                                             |
|                                                                            |                                                                             |
| G.H.                                                                       | Proceed with a & b.  Plus a warning that c. will follow if terrorism        |
| continues.                                                                 |                                                                             |
|                                                                            |                                                                             |
| P.M.                                                                       | Remember past Arab revolt: & present threat to resist 100,000.              |
|                                                                            | Can't therefore call for surrender of arms on that basis.                   |
|                                                                            |                                                                             |
| C.I.G.S.                                                                   | The J. = illegal armies.  The A. haven't - no organisation.                 |
|                                                                            | Declare we are brkg. up organised illegal armies:  go for Jews;  Don't need |
| to take rifles fr. individual Arabs:  but say we will prevent formation of |                                                                             |
| illegal A. army.  Backing for this in Ch. 10                               |                                                                             |
|                                                                            |                                                                             |
| H.M.                                                                       | Declare a genl. p'mme of disarming civil pop                                |
| n                                                                          |                                                                             |
| & proceed by stages?                                                       |                                                                             |
|                                                                            |                                                                             |
| C.I.G.S.                                                                   | Wd. rather make the organ                                                   |
| n                                                                          |                                                                             |
| the test.                                                                  |                                                                             |
|                                                                            |                                                                             |
| C.N.S.                                                                     | Hang this action on P.M.'s decl                                             |
| n                                                                          |                                                                             |
| re organised.  And indicate we are                                         |                                                                             |
| implementing this p'mme, wh. included surrender of arms.                   |                                                                             |
|                                                                            |                                                                             |
| N.B.                                                                       | W'out some statement tht. we are going to disarm the civil pop              |
| n                                                                          |                                                                             |
| , we shd. be                                                               |                                                                             |
| in diffy. because P.M.'s original statement on Rpt.                        |                                                                             |
|                                                                            | Ready to have it done by stages.                                            |
|                                                                            |                                                                             |
| P.M.                                                                       | Say these events have proved we were right in our decl                      |
| n                                                                          |                                                                             |
| - we will prevent                                                          |                                                                             |
| growth of illegal A. organisation & also armed assistance fr. A. states.   |                                                                             |
| A.                                                                         | Statement can be even-handed.  But wd. like to show priorities for action   |
| startg. with the organisations wh. are causg. current trouble.             |                                                                             |
|                                                                            | Don't give military an impossible task.                                     |

 P.M. 
Agree with that.  But we can't stop at disarming Jews. E.Sh. 
This dicn wd. involve mil. operation v. Hagana etc. C.I.G.S. 
What we want to eliminate is the organisation wh. secures co-ordinated 
terrorism throughout the country. P.M. 
Must say tht. while discns procedg. we intend to preserve law & order & to 
see that no illegal organisations are maintained or created. 
 
Statement in Parlt. P.M. 
Not in advance of action to seize conspirators. 
 
Promise statement next week. 
 
Get Private Notice Ques. to Sys. War p'poned. 
 
Don't like telling U.S. Govt. in advance. J. 
   ? Say - Govt. will support H. Comm. in action wh. he thinks necessary to 
 
restore law & order. H.M.             ? Lend a H.O. official familiar with 18B. to help Pal. Govt. 
P.M. to see Leader of Opposition. 
 

## Mufti.

 
Drove up & signed King's book.  No power to turn him out. 
 
But Sidki is advising King tht. he can stay only if he abstains fr. any pol. 
activity. 
 

## 1.    Persia

 
N.B. 
Strong repns to P.M. tht. we hold him respons. for B. lives & property.  This 
has made impn on him. 
 
Has sent Director to receive complts. vice going to Tudeh Party. 
 
M. Berthond has gone out - will send to E.Sh. copy of his directive. 
 
Signs of some improvemts.  tribes hostile to Tudeh Party. E.Sh. 
Tudeh has strong hold - labour agitn  canalised thro' them. N.B. 
That is E.B.'s policy.  Also hopes for formn of T.H.:  & Persians show signs 
of wanting our help with that. 

 
2.     Council of Foreign Ministers:  Paris 

 N.B. 
Going better than we feared.  Shd. know by Fri. what hopes of agreemt.  
Apart fr. Repns main crux - Trieste.  Some signs tht. R. wd. accept 
internat. regime & tht. Fr. will put it up.  Diffy. may be to find an Ital. Govt. which wd. accept it. 
 
Repns.  Sov. claim is being reduced to £10M:  but involves principle of 
current prodn.  Danger = repercussions on Germany when it wd. be 
important. G.H. 
Malta.  Rpt. on cost of rehabiln recd:  estimate over £40M.  If repn claimed, 
don't forget Malta.  We have given or promised £30M & that won't be enough. N.B. 
We agreed last Aug. tht. we shdn't demand repns from Italy. 

 

## 3. Palestine

 G.H. 
2 of kidnapped offrs. released.  Seems tht. other 3 will be retained pro. tem. P.M. 
Pep. to-morrow. J. 
Anders addressg. P. troops in Pal. - saying workg. for new Poland, includg. 
Lwow. 
 
Surely we shdn't allow him to go. J.J.L. 
Don't know anything. P.M. 
Find out.  Also what he actually said. G.H. 
I wasn't told he was going. N.B. 
Our Genls. don't make such speeches.  Why sh. he? 
|                                                              | Anglo. Am. disc                                               |
|--------------------------------------------------------------|---------------------------------------------------------------|
| ns                                                           |                                                               |
| :  progress reported.                                        |                                                               |
|                                                              | No rprt. to Govts. at this stage.  Only report to main party. |
| x  Telgr. to go to W'ton urging early arrival of Grady.   x. |                                                               |


## 4.     Canada:  Long-Term Wheat Agreement.

 H.D. 
State Dpt. concerned about re-action on Loan.  M/F. was apprehensive:  was 
expectg. Clayton to press him to delay announcement.  I thght. tht. wd. 
be embarrassing:  send him some gen re Clayton (doctrinaire re bulk 
purchase). 
 
 
Reply from M/F now coming in:  can consider in light of tht. whr. we 
need hold up announcement. 
 
A.B. 
Argentine wheat.  Can we have def. report? P.M. 
I will ask for rpt. from M/Food. T.W. 
Any confirmn of RSH's allegns of purchase of linseed oil by Russia. N.B. 
I will enquire. 
5.     United Somalia

 G.H. 
Purpose = keep it open.  Did E.B. mean w'drawg. B. trusteeship only or      
w'drawg. whole proposal.  If the first, don't mind so much:  if the second, must ask for review. N.B. 
Diffies with Ethiopian (Ogaden) - diffies over B. trusteeship claim.  E.B. 
concluded it was more trouble than it was worth.  And he meant "that's 
out".  viz., tht. in further discns we wdn't raise again the ques. of United 
Somalia. 
 
Further point:  deal with Ethiopia for grazing land against camel corridor. 
 
 
F.O. favour that. 
 
But what E.B. has said needn't exclude takg. up later idea of United Somalia 
under international trusteeship. P.M. 
 
Cd. understand w'drawg. it fr. discn.  See no reason to abandon it 
w'out quid pro quo. 
Agreed.  Wider implicns. Wd. be unfortunate to abandon whole idea. 
 
A. 
 
 
Don't discuss intern. trusteeship in Africa until we know what form 
intern. trust will take.  Don't be commd to agreemt. in advance to 
intern. principle. H.D. 
Suspended for 12 mos.  Somalia is least attractive part of Africa, fr. financial 
pt. of view.  Cost of administrating this desert. 
 
| P.M.                                                          | Must look at our pos                                        |
|---------------------------------------------------------------|-------------------------------------------------------------|
| n                                                             |                                                             |
| in area as a whole.  Send message to E.B. saying -            |                                                             |
| Noted w'drawn.  Assumes this means no decision:  held over 12 |                                                             |
| months.                                                       |                                                             |
|                                                               |                                                             |
| N.B.                                                          | Para. 2 of Tel. 233.  Can we say B trust w'drawn?           |
|                                                               |                                                             |
| P.M.                                                          | No.  Wd. prefer p'ponement.                                 |
|                                                               |                                                             |
|                                                               |                                                             |
|                                                               |                                                             |
| 6.       Basic English.                                       |                                                             |
|                                                               |                                                             |
| P.M.                                                          | Whose vote?                                                 |
|                                                               |                                                             |
| N.B.                                                          | F.O. vote: and don't like defending it.                     |
|                                                               | Favour giving some support to this.                         |
|                                                               |                                                             |
| H.D.                                                          | Support this.                                               |
|                                                               | Personal & financial factors are v. difficult.              |
|                                                               | But Ogden prefers Ty. to F.O. officials!                    |
|                                                               | Can I explore it.  Then M/Ed. can look into it with me now. |
|                                                               |                                                             |
| J. & A.B.                                                     | Spoke in favour of B. English.                              |
|                                                               |                                                             |
|                                                               |                                                             |

 

| A.B.                          | F.O. shdn't handle this.                                                    |
|-------------------------------|-----------------------------------------------------------------------------|
|                               |                                                                             |
|                               |                                                                             |
| C.E.                          | International use - commercial jargon.  And on that a/c, if no other, not   |
| useful as introd              |                                                                             |
| n                             |                                                                             |
| to wider learning of English. |                                                                             |
|                               | If we aren't too ambitious, this wd. be useful w'in limits.                 |
|                               |                                                                             |
| P.M.                          | Who then shd. look after it?  Not B. Council nor F.O.  Better suited to B/T |
|                               |                                                                             |
| H.M.                          | or C.O.I.?                                                                  |
|                               |                                                                             |
|                               |                                                                             |
|                               |                                                                             |
| N.B.                          | Three uses                                                                  |
| a) commercial code.           |                                                                             |
| b) entry into English         |                                                                             |
| c)                            | auxil. internat                                                             |
| l                             |                                                                             |
| language                      |                                                                             |

 
  
F.O. object to (c) [& aren't concerned with a) or b)]: for various 
reasons. 
 
 
Agree for these reasons F.O. wrong Dpt. to handle it.  Wd. welcome its 
being taken up - a) and b) - by someone else. P.M. 
Begin on trading side. 
 
A.B. 
Get it in on lower levels: high-ups have taken trouble to learn English. 



Agree:  official use (take copyright) 

            let H.M. with Ty. & others consider how to exploit. 


[Exit O. Sargent 


[Enter Barnes 
 
7. 

## Coal: Five-Day Week

 E.Sh. 
Explained posn.  Drew attention to form of announcement. 
 
Read letter from N.U.M.  They say over 6 months another 71/2 cwt. per man 
per week wd. result from 5 day week. 
 
Other advantages 
a) wd. stimulate recruitment b) better atmosphere in industry c) 
with the condns attd wd. increase prodn. 
 
I'm satisfied tht. w'out somethg. like this we can't improve posn. 
 
Reid Cttee recommded 5 day wk. with 8 hrs. day.  But Reid has since 
admitted to me tht. with condns I propose 8 hour day not essential. 
 
Other demands in Charter (i) 2 wks with pay vice 1.  (ii) paymt. for 6 stat. 
hols. 
 
 
Propose to reject (i) but accept (ii). 
 
Date of opern.  Divn of views. among miners leaders.  Some wd. be content 
with 1/1/47 (resting date):  others want autumn 1946.  But most responsible men wd. be content with May '47 - at end of current coal year.  This would get us thro' winter.  Also wd. give N.C.B. time to settle details. 
 
Further point: 
a) Repercussions.  Particularly if applied to surface workers.  Prob. 
demand fr. agric.  We've looked at this point.  Cdn't differentiate - 
cdn't get it thro' N.U.M.:  cdn't work it in practice anyway.  It wd. 
mean reducing pay of some surface workers. 
b) Parly. announcement simultaneously with Bridlington.  Have 
considered & written to L.P. T.W. 
Fr. pt. view repercussions on agric., most important to avoid giving imprn 
tht. this is Govt. decision. - either that or direct Govt. intervention betwn. employers & min. 
 
cf. L.P. decision - wording.  Para. 5 of draft statement differs from that - & 
seems to imply Govt. responsibility for this concession.  cf. also "at my 
request" on 2nd page. 
 
This looks like thin edge of wedge of Govt. intervention in wages & condns. P.M. 
Diff. to suggest Govt. isn't responsible.  We are nationalising the industry & 
apptg. the Bd. which will negotiate. A.B. 
And nationn must be made to mean something to the miner.  We want to 
make it clear to miner that Govt. is author of this. 
 
But we must get time to re-arrange in pits to avoid disastrous drop in output. 
|                                                                            |                                                                               | Traffic is bottle-neck:   & shorter working week makes it worse.        |
|----------------------------------------------------------------------------|-------------------------------------------------------------------------------|-------------------------------------------------------------------------|
|                                                                            | Sympathise with M/Ag. re surface worker.  The differential betwn. him &       |                                                                         |
| underground worker is too small.  You shd. take liberty to use surface     |                                                                               |                                                                         |
| workers on 6                                                               |                                                                               |                                                                         |
| th                                                                         |                                                                               |                                                                         |
| day if required w'out overtime.                                            |                                                                               |                                                                         |
|                                                                            | Don't entrust publicity (for conditions) to miners' leaders.                  |                                                                         |
|                                                                            |                                                                               |                                                                         |
| Barnes.                                                                    | Don't see a case for 5-day wk. for surface workers - more than cf. for        |                                                                         |
| transport workers.                                                         |                                                                               |                                                                         |
|                                                                            | Haven't bn. satisfied tht. coal can be cleared fr. the mines with 5 day week. |                                                                         |
|                                                                            |                                                                               | We shd. have time to go into this before being comm                     |
| d                                                                          |                                                                               |                                                                         |
| .                                                                          |                                                                               |                                                                         |
|                                                                            |                                                                               | Traffic has always bn. a bottle-neck & this will make it worse.         |
|                                                                            |                                                                               |                                                                         |
| H.M.                                                                       | B/T. take serious view.  Grave risk of reduced output & increased cost (wh.   |                                                                         |
| is already too high & is a grave liability to B. industry).  Our advantage |                                                                               |                                                                         |
| expected fr. nat                                                           |                                                                               |                                                                         |
| n                                                                          |                                                                               |                                                                         |
| was reduced price.                                                         |                                                                               |                                                                         |
|                                                                            | This means in effect a                                                        |                                                                         |
| 1                                                                          |                                                                               |                                                                         |
| /                                                                          |                                                                               |                                                                         |
| 6                                                                          |                                                                               |                                                                         |
| th                                                                         |                                                                               |                                                                         |
| increase of wages.  If it leads to increased output                        |                                                                               |                                                                         |
| & lower costs, these arguments are invalidated.                            |                                                                               |                                                                         |
|                                                                            |                                                                               |                                                                         |
|                                                                            | L.P. Cttee discussed & recommend the scheme on balance -                      |                                                                         |
|                                                                            |                                                                               | Some force majeure because reason to expect strikes etc., w'out this    |
| concession.                                                                |                                                                               |                                                                         |
|                                                                            |                                                                               | E.Sh. assures us he will get quid pro quo by way of conditions.         |
|                                                                            | On ques. whr. Govt. shd. father decision:  pity we can't do it via industry,  |                                                                         |
| but M. Assoc                                                               |                                                                               |                                                                         |
| n                                                                          |                                                                               |                                                                         |
| . will be out before details settled, and N.C.B. won't be                  |                                                                               |                                                                         |
| in. :  we agreed therefore to formula.                                     |                                                                               |                                                                         |
|                                                                            |                                                                               | But we all think even this degree of Govt. intervention is undesirable. |
|                                                                            |                                                                               | Mining has bn. too much in politics.  They sh. be told why this         |
| happened this time & warned they will have to deal with N.C.B. in          |                                                                               |                                                                         |
| future.                                                                    |                                                                               |                                                                         |
|                                                                            | Repercussions.  Real case = nature of workers job.  This doesn't apply to     |                                                                         |
| surface worker:  & there is danger of repercussion.  Again, we want to     |                                                                               |                                                                         |
| up-grade surface worker to face-work:  & mustn't therefore reduce the      |                                                                               |                                                                         |
| differential.  I wish this cd. be met.                                     |                                                                               |                                                                         |

 
Announcement. 

|                     |     | a) risk tht. will be said E.Sh. gave way (b'mailed) to N.U.M.        |
|---------------------|-----|----------------------------------------------------------------------|
|                     |     | b) this will have gt. econ. consequences good or bad.  And Govt. are |
| responsible for it. |     |                                                                      |

 
They will want a debate.  Maybe a Vote of Censure. 
 
Unless Parlt. is treated equal footing with N.U.M. there will be trouble. 
 

 
 
Agreed:  M/F & P. to make statement in H/C. on previous day. 
 
G.A.I. 
"See no objn"   vice "favour".  in the statement. 

 E.Sh. 
Replied to points raised in discn

a) Costs.  If this leads to 5 days work, we're O.K. because only work 
now 41/2
. 

 
If he doesn't work 5 days he doesn't get 6 day pay. 
 
There is an element of risk. 
b) 
Surface workers.  If this isn't Govt. decision, it's for industry to 
settle that. 
 
I could
 drop a hint at Bridlington.  I can't be firm because don't believe its 
practicable. 
 
 
Problem isn't serious, however.  They are disappearing gradually:  & 
we will have none save compensn cases. 
c) Transport.  True you can't work on Sats. under this scheme.  But 
you can't do much now:  for there is 60-70% absentee-ism on Sats.  
And you need Sat & Sun for repair & maintenance work. P.M. 
Govt. intervention point is not v. strong.  For hours have for years past been 
regulated by the State. 
 
E.Sh. 
May I amplify para 3.? 
 
 
Agreed. 
 
 
Agreed: as above: simult. statement in H/Lords [Exit Barnes 


Agreed: special Cab. mtg. for other points. 
4. 

## (Contd).  Canada:  Long-Term Wheat Agreement.

 
 
H.D. 
Clayton said cdn't defend this if challenged on Loan.  Thght. 5/7 latest:  
maybe next week. 
 
M/F thinks in these circs. better to p'pone.  Want to know if he shd. try to 
persuade Canadian Govt. accordingly. 
 
No alternatives therefore but to p'pone. A.B. 
But v. sinister. 
 

## 1.     Payment Of Loss Of Remunerative Time:  Health Service.

H.D. 
Ask only for authy. for M/H to table amendmt. takg. power to make genl. 
Regns. 
 
Ques. what Regns shd. be can be considered later. A.B. 
Cab. decision - Ty. Cttee and wider enquiry into main ques.  For latter, 
composn & t. of r. now settled. H.M. 
T. of r. shd. come to Cabinet.  Composition too, I shd. have thought. 
 
H.D. 
I have taken a point on t. of r.  Not settled yet. H.M. 
On narrower point - amendmt. of Bill cd. await Rpt. Stage.  My anxiety is re 
cumulation "expenses" - travelling, subsistence + loss of r. time.  
Might be open to abuse.  Shd. 2nd & 3rd be alternative, at choice of 
member?  If you do this, how will you resist extension to l.a.'s generally. P.M. 
Those ques. will arise on form of Regns. A.B. 
This has all bn. discussed before.  There wd. have us trouble over Health 
bodies if it hadn't bn. for Scottish differences.  I therefore suggd only a 
Reg. making power, which prejudices nothg.  At Rpt. stage the whole ques. wd. come up on its merits. 
 
Read out terms of proposal amendment:  to add "loss of remuneration time" A. 
Where does this finish? 
 
A.B. 
These words wd. enable you to provide tht. 3rd & 2nd are alternative. 
 
Must be able to do by Regns here what you decide by legn to do for l.a.'s 
generally after the enquiry. H.M. 
Legn must follow that enquiry.  Cdn't you include in that legn provision 
covering these bodies.  Soon after Health Service has come into operation. 

"Compn in respect of expenses and, if necessary, loss of remuneration time"? A. A.B. 
Anyway you can't p'pone the issue because it arises acutely on Scottish Bill. 
 
Will try to get words makg. it quite clear tht. Regs. may prescribe 
alternatives. P.M. 
E.g. "or any one or more of them". somethg. to show it isn't necessarily all 
3. 
        Agreed. 
 
Cttee of enquiry on general question. H.D. 
Cab. decision doesn't require this to come back. H.M. 
Is Grenfell the right Chairman? P.M. 
Look into it - with H.M. 
2.      Parliament

. 
 

| H.M.                                                                   | Business for next week.                                                        |
|------------------------------------------------------------------------|--------------------------------------------------------------------------------|
|                                                                        |                                                                                |
| P.M.                                                                   | Burma Bill on 28/6.  Have looked at it and don't like it.  Constitutional      |
| provisions  e.g. nos. of upper House and property qualifications.  We  |                                                                                |
| can accept some amendmts. on paper.  Another point:  no need to        |                                                                                |
| reduce age of franchise from 21 to 18.  A.H. can handle it.            |                                                                                |
|                                                                        | Senior Minister shd. be at hand - L.P.S.         (Agreed)                      |
|                                                                        |                                                                                |
| H.M.                                                                   | Demands (poss.) for Debate.  Bread rationing: on supply Day.  India &          |
| Palestine - will try to get them to take a Supply Day.                 |                                                                                |
|                                                                        |                                                                                |
| P.M.                                                                   | India must await return of Mission.                                            |
|                                                                        | Palestine:  can't make statement re action.  Constit                           |
| n                                                                      |                                                                                |
| pos                                                                    |                                                                                |
| n                                                                      |                                                                                |
| :  nothg. much to be                                                   |                                                                                |
| said:  trying to expedite Grady's arrival.  Will ask W.S.C. to p'pone, |                                                                                |
| until next week.                                                       |                                                                                |
|                                                                        |                                                                                |
|                                                                        |                                                                                |
| A.B.                                                                   | All night sittings.  Has result of poor attendance at Cttees.  Defeated y'day  |
| on amendmt. wh. I cd. have defeated if better attendance.              |                                                                                |
|                                                                        |                                                                                |
| H.D.                                                                   | Whips sh. be able to send Cttee members house to bed.                          |
|                                                                        |                                                                                |
| H.M.                                                                   | Next Session we mustn't have 3 days a wk. on Standg. Cttee.  This will         |
| mean a reduction in Leg                                                |                                                                                |
| n                                                                      |                                                                                |
| P'mme.                                                                 |                                                                                |
|                                                                        |                                                                                |
|                                                                        |                                                                                |
|                                                                        |                                                                                |
|                                                                        |                                                                                |
| A.                                                                     | Want C. & W'less before recess.                                                |
|                                                                        | Also C. Aviation quickly.  If I don't get it until 18/7, I can't get it thro'! |
|                                                                        |                                                                                |
| W.W.                                                                   | That is present plan:   not going to finish in H/C until 12/7.                 |
|                                                                        |                                                                                |

 
3.     Bread Rationing. 

 P.M. 
On details no diffce from earlier proposals.  Single issue - yes or no. J.S. 
Reluctantly recommend introdn on 21/7.  Y'day on my return had hoped we 
might p'pone decn for 3 wks., for some world wide prospect of 
improving crops. 
 
But on examing. immed. stock posn (p.2) concluded risk is too great. 

 
These figures assume full U.S. realisn of promises to H.M.  Can't expect 
them to do more. 
 
M/F. have be cautious re minimum stock level:  but not to extent of 200,00 t. 
 
P.M. 
Also relying on home harvest.  What of weather? T.W. 
Crops are good:  but the harvest weather is the crux. J.S. 
Wd. be reckless course not to ration at all.  And if we are of that mind it is 
weak to delay now Press are discussing etc. T.W. 
If we can assume the 430.000 t. fr. U.S.  Saving of 6% on rationing over 3 
months is v. small.  If therefore poss. tht. by end/Aug. we will be round 
the corner, shd. we risk unpopularity for 6%? P.M. 
Real object is control, not saving 6%. J.S. 
Uncertain prospects of Argentine:  no export licences being issued because 
adminn chaos (spoils system):  unwise to rely on them at all. A. 
Domestic bread making.  Large recent increase in flour consumption. 
 
 
How will that be controlled? J.S. 
Scheme covers flour 
 
 
Memo:  approved - i.e. principle of rationing improved. A. 
Heavy manual:  only 2/5ths above normal.  Is that enough? J.S. 
You don't eat 9! E.W. 
Will be outcry if housewives (who say they're heavy workers) only get 
normal ration. J.S. 
We tried more numerous categories:  but concluded (T.U.C. agreeing) tht. it 
wd. be impracticable.  Heavy workers = 6.m. + 3.m. women. 
 
Won't have to amend (improve) draft statement: e.g. I wd. bring it out tht. 
the manual workers are 9m. 
 
Meat increase - can be done on 21/7 vice Aug. (as in memo) 
 
Advertising - as in memo.  C.O.I. see our point, but want Cab. guidance. 

|                                                            |                                                                             | Don't ask for absolute priority.    |
|------------------------------------------------------------|-----------------------------------------------------------------------------|-------------------------------------|
|                                                            |                                                                             |                                     |
| H.M.                                                       | Let me settle this - I will do my best for M/Food.                          |                                     |
|                                                            |                                                                             |                                     |
|                                                            |                                                                             |                                     |
|                                                            |                                                                             |                                     |
| J.S.                                                       | Announcement.  Press say Cab. is discussing this a.m. - will anticipate dec |                                     |
| n                                                          |                                                                             |                                     |
|                                                            |                                                                             |                                     |
| to-night & to-morrow.  Shd. I therefore announce this p.m. |                                                                             |                                     |
|                                                            |                                                                             |                                     |
| H.M.                                                       | Ascertain fr. W.W. tht. no diffy. over other announcements.                 |                                     | 
 
 
Otherwise Agreed 


[Exit T.W. 
P.M. 
Will be announcement by me, Truman: M. King re end of C.F.B. 


[Exit J.S. 


[Enter Listowel, W.W. 

        again 4.      Broadcasting Policy

## .

 
H.M. 
Joint Sel. Cttee not right form 


a) wrong balance if H/Lds. included. 


b) M.P.'s not best qualified to enquire. 
 
Some enquiry, at right moment, I wdn't have opposed.  But this is too late. 
 
 
Coal. Govt. enquired:  took long time:  only Br. Br. was against 
monopoly. 
 
 
Raising it now leaves B.B.C. v. little time indeed. 
 
Then they say - review for 1 or 2 years & have enquiry m'while.  But that 
wd. be unsettling for B.B.C. - & for their long-term problems. 
 
I wd. prefer therefore to avoid enquiry:  if our supporters can be held. 
 
Referred to occasions when W.S.C. refused enquiry. (during war). 
 
Press are unanimous in favour of enquiry. 
 
We cd. say, let us review Charter & see how we go.  Have enquiry later. L. 
Once renewed it must run to the end. J. 
Why not renew for 5 years? 
 
L. 
Support that:  original 10 was because techn. advances might take place:  
these were delayed by war:  case now for letting it run for another 5 years & start enquiry after 4. A.       
Believe there is a case for enquiry.  Renew for 5 years: & promise enquiry 
 
starting next year. H.D. 
Not so soon:  begin after 3 or 31/2 years. H.M. 
We said no enquiry in Feb.  If challenged then we cd. have had enquiry. P.M. 
Doubt if techn. ques. have much bearing on enquiry. 
 
W. Paper might develop the idea of makg. Regions more autonomous. 
 
L.                     Regions now have complete p'mme autonomy. H.M. 
Might increase emphasis on this.  But diffy. = Reg. can't find enough 
quality. 
 

 
 
Agreed:  5 years this time.  Will see how it goes & be ready to have  

              an enquiry.  Don't promise one definitely. 



[Exit L., W.W. 

 
      5.       Nationality of Married Women

. C.E. 
As in memo.  Referred to diffy. re children. J. 
Referred to tradition of Fr. whores marrying B. subjects. 

 

| N.B.           | F.O. support.        |
|----------------|----------------------|
|                |                      |
| P.M.           | India want to be rep |
| d              |                      |
| at expert conf |                      |
| ce             |                      |
| .  Wait.       |                      |



Agreed. 

## 1.     Chiefs Of Staff.

 
P.M. 
Welcomed Lord Montgomery on 1st appearance as C.I.G.S. 
2.     Italian Colonies

## .

 P.M. 
Telegrams 285, 286, 287. 
 
Guts of it is in 287: & vital thing is draft declaration. 
 
Clear we can't get U.K. mandate for Cyrenaica. 
 
N.B. 
Discussed in F.O.  Better to accept this 1 yr. delay rather than delay Peace 
Treaty. 
 
 
Independence wd. be strongly pressed for Cyrenaica & Tripoli. 
 
 
Incorpn                                                        Eritrea. 
 
 
Wd. have open idea of United Somalia. 
 
 
Demilitarisation might be pressed strongly. 
 
Above is forecast of U.N. Assembly line. 
 
Attach importce to safeguard re
 adminn. 
 
How wd. Doms, re-act to going to Assembly vice 21 nations? A. 
Para. 3 of 287 + 2 of decln.  4 Power decision - will cause diffy. with some 
Doms. certainly S.A. & possibly A. & N.Z.  This wd. exclude Doms. entirely in wht. wd. be thght. high-handed way. 
 
Two suggns to make for mtg. this diffy. - later. 
 
Smuts wrote 22.1.46:  "preferable …  arrangemt. as may be agreed betwn. 
action belligerents". 
a) Art. 2 of declaration after 4 Powers insert "after consultn with 
belligerent powers." 
Art. 3 make correspondg. addition. P.M. 
But this is a draft for Article in Treaty & as such will come to Peace Confce 
of 21.  
 
The only diffy. = it advocates a solution wh. Doms. won't like. C.A.S. 
One aspect of Med. problem on wh. memo about to come to Def. Cttee. 
 
In advance of that, however, no objn on mil. grds. to Art. 1 & 2.  On 3, we 
don't like Trusteeship because of admittg. Russia. 
 
Wd. want mil. facilities in Cyrenaica. N.B. 
Won't get it via trusteeship:  might via independence:  possibly thro' incorpn 
in Egypt.  Second, however, is the one to go for. H.M. 
Worried.  Can't see any alternative, however.  Palestine, Egypt…… losing 
mil. footholds in M/East.  Also hope of Jewish settlement in Cyrenaica. J. 
Show H.M.'s misgivings.  Hopes held out …. e.g. in Egypt:  but what has 
happened?  Wd. prefer we shdn't propose it. 

 

N.B. 
Then worse alternatives will be put fwd. by others. 

 

| H.D.    | See x/. on para. 4 of Tel. 285.                     |
|---------|-----------------------------------------------------|
|         |                                                     |
| P.M.    | And note tht. R. have given up claim to Dodecanese. |

 

| H.D.                                                           | Genl. atmosphere is better in Paris.                                            |
|----------------------------------------------------------------|---------------------------------------------------------------------------------|
|                                                                |                                                                                 |
| A.B.                                                           | a) Failing 4 Power agreemt. reference to Assembly, does veto reply?             |
|                                                                | b) Repercussions on Italian opinion.  Progressive forces there are beginning    |
| to make headway - don't want to discredit them at this stage.  |                                                                                 |
|                                                                |                                                                                 |
| P.M.                                                           | On b) there cd. be no ques. of leaving colonies with Italy.                     |
|                                                                |                                                                                 |
| [H.D.                                                          | Para. 1(a) of Tel. 286.  Specifically leaves open the poss. of Italy being      |
| trustee.                                                       |                                                                                 |
|                                                                |                                                                                 |
|                                                                |                                                                                 |
| N.B.                                                           | In Italy Colonial policy has bn. controversial - Mussolini stunt, not a Liberal |
| Party plank.                                                   |                                                                                 |
|                                                                |                                                                                 |
| A.                                                             | Cd. E.B. get Byrnes to put this forward?                                        |
|                                                                |                                                                                 |
| N.B.                                                           | Doms. can object to this draft at Peace Conf                                    |
| ce                                                             |                                                                                 |
| .  If it were accepted, then                                   |                                                                                 |
| during the year we wd. consult Doms.  If it came in the end to |                                                                                 |
| Assembly, Doms. wd. be there.                                  |                                                                                 |
|                                                                | If A. persists, however, it wd. be possible to include reference to consult     |
| n                                                              |                                                                                 |
|                                                                |                                                                                 |
| with belligerent powers in this draft.                         |                                                                                 |
|                                                                |                                                                                 |
| P.M.                                                           | But R. doesn't like the 21.  Insertg. them will damage this document as a       |
| compromise device.                                             |                                                                                 |
|                                                                | Put it to E.B. on basis that he can drop it if he finds it embarrassing.        |
|                                                                |                                                                                 |
| C.N.S.                                                         | Wd. open door to R. saying we must consult Byelo-Russia.                        |
|                                                                |                                                                                 |
| J.                                                             | Say also                                                                        |
|                                                                |                                                                                 |
|                                                                |                                                                                 |
|                                                                |                                                                                 |
|                                                                |                                                                                 |

 
3.     Trieste. 
Telegrams 283 and 284 and 290 + paras. 5-6 of 288. 

| P.M.                                                     | B'ground.  M. weakening fr. 100% support of y. claims: & in last few days    |
|----------------------------------------------------------|------------------------------------------------------------------------------|
| has for 1                                                |                                                                              |
| st                                                       |                                                                              |
| time seemed ready to consider an international solution. |                                                                              |
|                                                          | E.B's solution is in Tel. 290.                                               |

 
What will be the area?  App. a buffer betwn. y. or Italy. 
 

| C.A.S.                                                             | Nothing v. this.  Watch, however, a) future of Pola.  May mean retaining    |
|--------------------------------------------------------------------|-----------------------------------------------------------------------------|
| troops.                                                            |                                                                             |
|                                                                    |                                                                             |
| C.I.G.S.                                                           | Para. 4.  We shdn't be able to run down our troops in V.G. until U.N.O.     |
| gendarmeries in being.  Army cdn't get down to end/46 ceiling, wh. |                                                                             |
| assumes 100% evacuation of V.G.                                    |                                                                             |
|                                                                    |                                                                             |
| P.M.                                                               | Depends who will provide the troops.                                        |

 

C.I.G.S. 
Want to keep U.S. troops there. 

 

| H.M.                                                                   | Don't like this - artificial:  cf. Danzig.  Truth is Italy shd. have it.  R. seem    |
|------------------------------------------------------------------------|--------------------------------------------------------------------------------------|
| to want to weaken Italy.  Wish we cd. fight it out in favour of Italy. |                                                                                      |
|                                                                        |                                                                                      |
| P.M.                                                                   | This is v. sweeping.  Hinterland is largely Slovena.  Port served C. Europe          |
| rather than Italy.  Was handed to Italy as Austro-Hung. port.          |                                                                                      |

 J. 
Good solution of v. diff. problem. 
 
We shd. encourage E.B. to proceed as he proposes. T.W. 
Contains seeds of stable body. 
 

| J.J.L.                                                                 | Depends on spirit in wh. 4 Powers go into it. Can be success if they mean it    |
|------------------------------------------------------------------------|---------------------------------------------------------------------------------|
| to be.  Tangier worked well enough.                                    |                                                                                 |
|                                                                        |                                                                                 |
| A.B.                                                                   | Gt. progress made, I agree.  Ital. Socialists take enlightened views:  don't    |
| oppose internat                                                        |                                                                                 |
| l                                                                      |                                                                                 |
| regime bitterly.  Agree with M., however, tht. 10%                     |                                                                                 |
| limit wd. give them target for agitation.  Support E.B. there.         |                                                                                 |
|                                                                        | Don't however, agree with this admin                                            |
| ve                                                                     |                                                                                 |
| scheme.  B.'s legist. council wd.                                      |                                                                                 |
| have some authy.  E.B.'s wd. give inhabitants no chance to operate     |                                                                                 |
| democracy.                                                             |                                                                                 |
|                                                                        |                                                                                 |
| capable of modific                                                     |                                                                                 |
| n                                                                      |                                                                                 |
| as time goes on with a view to enabling inhabitants                    |                                                                                 |
| to have a voice in their own Govt.  Provide for review of constitution |                                                                                 |
| at given date.                                                         |                                                                                 |
|                                                                        |                                                                                 |
| P.M.                                                                   | Then constant pressure for power on behalf of one or other.  Consitit           |
| n                                                                      |                                                                                 |
| can                                                                    |                                                                                 |
| always be modified.  But under a time limit system people never get    |                                                                                 |
| down to working existing system.                                       |                                                                                 |
|                                                                        |                                                                                 |
| H.D.                                                                   | See also (g), wh. lends itself to development.                                  |
|                                                                        |                                                                                 |
| T.W.                                                                   | And (K) too.                                                                    |
|                                                                        |                                                                                 |
| N.B.                                                                   | Pp 4-5 of 290.  Meets A.B.'s points.  Local pop                                 |
| n                                                                      |                                                                                 |
| will have a big influence.                                             |                                                                                 |
|                                                                        | E.B. has bn. the last to abandon the Italian claim.  He is only asking for this |
| authy. (290) now because persistence in Italian claim wd. break the    |                                                                                 |
| Mtg.                                                                   |                                                                                 |
|                                                                       |
|-----------------------------------------------------------------------|
| n                                                                     |
| is mixed: port is not Italian port &                                  |
| everyone agrees it must be international.  This is best place you cd. |
| find for an international regime.                                     |

 
Danzig & Saar were well governed until L/N. began to crumble. 
 
This too will fail if U.N.O. begins to crumble. 
 
 
Agreed: Support E.B.  {Abandon 10 year limit 

                                    { Stress means of getting popn a voice. 
 
4.    C.F.M.  Miscellaneous Points. 
Danube - satisf. 

 
Repns - we shd. stand out v. current prodn. 

 
 
5.     Palestine. 
Telegram 1069 & 1071 read out to Cabinet. 

 G.H. 
Jewish leaders flying from U.S. to Palestine. 
 
Demand for deputn. 
 
Connn betwn. Agency & Hagana.  High Commr. is clear there is
 such a 
connn.: cf. his reply to our suggn tht. 2 of Agency leaders shdn't be 
arrested.  We now have def. evidence of connn. P.M. 
As soon as mil. opn is concluded, Agency can function again. C.I.G.S. 
Objectives: 
a) people b) 
documents.  Future action must depend on examn of documents.  
No doubt of Agency's connn with Hagana. T.W. 
How far did B. troops co-operate with Hagana in war? 

 

| C.I.G.S.                      | Nil.                                                                       |
|-------------------------------|----------------------------------------------------------------------------|
|                               |                                                                            |
| A.B.                          | Had we not an understanding - incldg. supply of arms - tht. Hagana wd. co- |
| operate in defence of Palest. |                                                                            |
|                               |                                                                            |
| C.I.G.S.                      | In 1938-39 Jews were our Allies in fighting Arabs.  Since then we haven't  |
| had dealings with them.       |                                                                            |
|                               |                                                                            |
| P.M.                          | We did make arms available to Jews.                                        |

 

| C.I.G.S.    | Not to Hagana.                                            |
|-------------|-----------------------------------------------------------|
|             |                                                           |
| A.B.        | But it isn't therefore an armed pol.                      |
| force.      |                                                           |
|             |                                                           |
| J.          | Doesn't alter the fact tht. we can't have private Armies. |
|             |                                                           |

P.M. 
Nor the use made of the arms made available when, after the war, the more 
extreme elements obtained control, & used power for "next round." C.I.G.S. 
Terrorism & Stern Gang, who owe no allegiance to anyone. 
 
Irgun, we believe is controlled by Agency. G.H. 
Hagana has some (but varying) influence over Irgun. C.I.G.S. 
Hagana = Home Guard.  Irgun = Regular Army. A.B. 
Told Higher Arab Cttee met immediately after publn of Anglo. Am. Rpt:  & 
decided tht. they wdn't associate themselves with any violent or armed 
resistance to implementn of Rpt.  Is that true? 
 
G.H. 
Never heard so. A.B. 
Shdn't we enquire? P.M. 
Statement must be made in H/C.  To-day?  After Ques. 
 
 
Draft read & amended.  P.M. to reply. 
 
 
Silverman M.P. will ask Riv. Notice Ques. = more adjournment. 


[Enter J.S. & W.W. 


[Exeunt C.O.S. 
If adjournment secured - Gvt. and P.M. to handle it. P.M. 
Room for 2 speeches?  One is enough. 
 
 
Agreed:  P.M. to speak.  Glt. to attend. 
6.     Bread Rationing Debate

## .

 
(Not heard by me.) 
7. 

## Report Of Select Cttee On Tank Prodn.

 
 
(Not heard by me) 

1.     Parliament. 

 

| H.M.                                                                | Business for next week.                                                     |
|---------------------------------------------------------------------|-----------------------------------------------------------------------------|
|                                                                     |                                                                             |
| A.                    Coal Bill in H/L.  Diff                       |                                                                             |
| ies                                                                 |                                                                             |
| : selection of members of consumers' council can be                 |                                                                             |
| next.                                                               |                                                                             |
|                                                                     |                                                                             |
| n                                                                   |                                                                             |
| won't press diff.                                                   |                                                                             |
| ques. of compens                                                    |                                                                             |
| n                                                                   |                                                                             |
| .                                                                   |                                                                             |
|                                                                     |                                                                             |
| H.D.                                                                | Beware of precedent - can't have detailed scrutiny of accounts, for sake of |
| other schemes.                                                      |                                                                             |
|                                                                     |                                                                             |
| A.V.A.                                                              | Don't resist what we have demanded for private cos.                         |
|                                                                     |                                                                             |
| H.M.                                                                | Shd. be a policy.  Have Ty. got one?                                        |
|                                                                     |                                                                             |
| P.M.                                                                | Bring up to Cab. on Monday unless cleared beforehand.                       |
|                                                                     | Debates before Recess.                                                      |
|                                                                     |                                                                             |
| H.M.                                                                | Must have B.B.C.                                                            |
|                                                                     |                                                                             |
|                                                                     |                                                                             |
|                                                                     |                                                                             |
| H.M.                                                                | What of India & Palestine?                                                  |
|                                                                     | India:  W.S.C. wanted 2 days:  trying for one.                              |
|                                                                     |                                                                             |
| P.M.                                                                | Shd. be able to get consent to 1.                                           |
|                                                                     |                                                                             |
| A.V.A.                                                              | Wd. be better for atmosphere in India (elections to consitit. assembly over |
| by 27 July) to p'pone debate as far as poss.                        |                                                                             |
|                                                                     |                                                                             |
| H.M.                                                                | Try for Autumn:  if not, as late as poss. before Recess.                    |
|                                                                     |                                                                             |
| A.                                                                  | H/Lds. want debate on 15/7.                                                 |
|                                                                     |                                                                             |
| H.M.                                                                | Try to get it later.                                                        |
|                                                                     |                                                                             |
| P.M.                                                                | Palestine.  Pressing Truman to send his team:  now names 15/7.  Must have   |
| debate before recess:  & must have some decisions.  May have to say |                                                                             |
| we'll do so:  so if U.S. will come in.                              |                                                                             |
|                                                                     | Let us discuss Pal. Rpt. next week, at special Cabinet.                     |
|                                                                     |                                                                             |
|                                                                     |                                                                             |
|                                                                     |                                                                             |
| A.B.                                                                | Press articles on effect of taking off controls in U.S.                     |
|                                                                     |                                                                             |
| T.W.                                                                | Can we have statements made by Truman.                                      |
|                                                                     |                                                                             |
| P.M.                                                                    | Also inform                                                                 |
|-------------------------------------------------------------------------|-----------------------------------------------------------------------------|
| n                                                                       |                                                                             |
| about "order" situation.                                                |                                                                             |
|                                                                         |                                                                             |
|                                                                         |                                                                             |
| 2.     Palestine.                                                       |                                                                             |
|                                                                         |                                                                             |
| G.H.                                                                    | Auth                                                                        |
| ies                                                                     |                                                                             |
| now ready to have Agency's premises.  Will pay for damage done.         |                                                                             |
|                                                                         | No releases of detainees yet.  But beginning now to let those go v. whom no |
| charge is to be preferred.  Head of Hagana not found.                   |                                                                             |
|                                                                         | Large-scale arrests over.  Searches for arms & individuals continue.        |
|                                                                         | Pressure for Parly. deleg                                                   |
| n                                                                       |                                                                             |
| to go to Pal. & roam round.  Wed. Silverman took                        |                                                                             |
| it up.  Discouraged this.  S.A. Govt. now ask tht. S.A. Jews be allowed |                                                                             |
| to go.                                                                  |                                                                             |
|                                                                         |                                                                             |
|                                                                         |                                                                             |
| P.M.                                                                    | Out of the question at this stage.  Full facilities given to Press.         |
|                                                                         |                                                                             |
|                                                                         |                                                                             |
|                                                                         |                                                                             |
|                                                                         |                                                                             |

## 3.     Political Broadcasting

 P.M. 
Some prelimy discns with some colleagues.  Handed round drafts of letters to 
W.S.C. & B.B.C. H.M. 
This shd. settle it. 
 
 
a) willing to resume pol. b'casting.      } These cover both 
 
 
b) my b'cast wasn't controversial.        } my memoranda. 
 
In 3rd para. of ls. to B.B.C., shdn't "might" be "would"? P.M. 
I wd. rather not claim an automatic right.  "Might will" - Agreed. L. 
Agreed. 
 
 
Agreed:  both letters to be despatched. 


[Exit L. 


[Enter Barnes & G.T. 
 
4.     Nationalisation of Transport

 
a ) General case for limit of 40 miles. H.M. 
Statistics show this is biggest single factor in road haulage.  If this were                                   
given away, rest wd. be prejudiced - (i) loss of revenue (ii) repercussions on rlwys. 

 
 
Cttee decided this was right.  Small men will be all right:  fair considn 
fr. tribunals. 
 
Politically, will be some trouble - tho' many will accept what we propose.  
And T.U.'s will fear even this goes too far. 
 
H.D. 
I was reluctant (politically):  but am now ready to accept, subject to special 
arrangemts. for devel. areas. 


(b) Development Areas H.M. 
Sympathy with M/T. App.  But B/T are in real diffy.  They say determining 
factor in getting firms to go to develop. area is whr. a firm can run own transport.  Won't be satisfy. to leave it to Tribunal - won't know where 
he is.  Therefore I've suggd this power of direction be given to the 
Minister.  Don't object if Minister's direction is given thro' licensing 
authy.  B/T. not satisfy. with provn tht. l. authy. shall "take account" of 
this consideration. 
 
A.B. 
Will this concession apply also to firms who have already establd branches 
in devel. areas. H.D. 
It should.  Short-term problem.  Support H.M.'s proposal. B. 
Principle.  Can't escape this problem & can't get agreement.  As you placate 
pol. opposn you will undermine co-ordination & build up opposn fr. those 
who favour natn. 
 
Freeing carriage under 40 miles meets more of the cases.  If you go beyond 
you undermine the road haulage system & railways. 
 
Develop. area.  Practical way of solving it is to settle principles on wh. l. 
authies will handle it.  I've accepted Cab. view they shall have their 
licence if they are genuinely handling their own business only. Directions to Reg. authy. shd. be such as to assure that.  If so, develop. areas firm is met.  But to save further delay, I am ready to bow to B/Trade & Ty. even tho' I believe its wrong. A.V.A. 
What about between loads & avoidance of empty journeys? 
 
P.M. 
The stronger you put the argument for devel. areas, the more you 
demonstrate that the concession shd. apply in other areas. G.T. 
May this not restrict discretion of l. authy.  By makg. exclusive the 
privileges of devel. areas. 

|                                                                                                 | Bricks & cement.  40-miles limit won't apply.  As before, there wd. be no        |
|-------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------|
| diffy.  Rather than limit to devel. area, I wd. prefer to have a direction                      |                                                                                  |
| to l. auth                                                                                      |                                                                                  |
| y                                                                                               |                                                                                  |
| . to see that servicing of a factory must be ensured.                                           |                                                                                  |
|                                                                                                 |                                                                                  |
| H.M.                                                                                            | We have a devel. area policy:  & are doing all sorts of special things for it.   |
|                                                                                                 |                                                                                  |
| A.V.A.                                                                                          | And you give a 1                                                                 |
| st                                                                                              |                                                                                  |
| class argument to Parlt. that private enterprise can                                            |                                                                                  |
| provide these transport services more cheaply than a nationalised                               |                                                                                  |
| system.                                                                                         |                                                                                  |
|                                                                                                 |                                                                                  |
| B.                    That's why I wd. prefer to rely on the directions wh. I give to l. authy. |                                                                                  |
|                                                                                                 | But to avoid delay.  I will bow to this:  tho' I believe dev. area case will get |
| thro' under para. 3 (i) and (ii).                                                               |                                                                                  |

 A. 
Don't see how you can stop at dirn in resp. of develop. areas. 
 

P.M. 
A compct. Opposn wd. knock hell out of this. 

 

| A.V.A.                                                                     | Yes, they would.                                                              |
|----------------------------------------------------------------------------|-------------------------------------------------------------------------------|
|                                                                            |                                                                               |
| H.M.                                                                       | I cd. defend it:  on basis tht. preference for Devel. Areas is positive Govt. |
| policy.                                                                    |                                                                               |
|                                                                            |                                                                               |
| J.                                                                         | Discriminate in favour of devel. areas but not on face of the Bill.  Why not  |
| give Ministers a power to give a specific direction (not in terms  related |                                                                               |
| to devel. areas) but let Cab. agree that this shall be done in devel. area |                                                                               |
| cases.                                                                     |                                                                               |

 H.M. 
A general power wd. be criticised - improper pressure on Minister etc. 
 
 
Agreed:  accept H.M.'s solution. 
c) Farmers  
 

|    |     |     |     | Agreed.             |
|----|-----|-----|-----|---------------------|
|    |     |     |     | [Exit Barnes & G.T. |
|    |     |     |     | [Enter J.S., N.B.   |
|    |     |     |     |                     |

## 5.     Canadian Wheat Contract

 J.S. 
Remember this arose fr. strong pressure on us from Canada.  D.O. pressed 
me to get on with it.  When I got there, I found tht. Gardiner was pressing for it;  but appeared rest of Govt. split & they don't know whr. they want it or not. 
 
Then learned that it wd. prejudice the Loan.  Informed Cab.  As a result, its 
held up:  & opponents in Canada have this opportunity to press their case. 
 
I propose:  don't discuss until Loan cleared & we know what Can Govt. 
                     x/ 
propose.  But they mustn't be allowed  to use this pause to re-open 
terms of contract on existing lines. 
 
But latest development - Wash'ton Tel. 4296 - all these long-term contracts 
are contrary to I.T.O. ideas.  We have 4 or 5 running now with S. Doms. & seeking another with Denmark. 
 
U.S. have a bad case on this. cf. 10 year agreemt. betwn. U.S. & Canada on 
news. pulp. H.D. 
Sorry this contract wasn't clinched.  Agree to x/ re Canada. 
 
W'ton Telegram is monstrous.  U.S. have always admittd tht. long-term 
contracts with long-term regular suppliers don't affect I.T.O.  This must be traversed.  Am disposed to wait until after Loan is thro'.  But must consider with Ty., B/T. H.M. 
Discussed at large what we shd. do about it all, some time. 
|                                                                      | This contract I wd. justify as special measure for transition:  not as settled    |
|----------------------------------------------------------------------|-----------------------------------------------------------------------------------|
| part of permanent Govt. policy.  Avoid head-on collision on ques. of |                                                                                   |
| principle.                                                           |                                                                                   |
|                                                                      | Disposed to reply thus before Loan debate.                                        |
|                                                                      |                                                                                   |
| A.B.                                                                 | Why not recall that this was designed to increase wheat prod                      |
| n                                                                    |                                                                                   |
| - by giving                                                          |                                                                                   |
| confidence to primary producers.                                     |                                                                                   |
|                                                                      |                                                                                   |
| H.D.                                                                 | Agree.  Helpful sugg                                                              |
| ns                                                                   |                                                                                   |
| for reply - but don't want to reply now.                             |                                                                                   |

 

H.M.           y/ I want Clayton to have a line of Defence which we cd. use if others raise this 
in Loan debate. 
 
N.B. 
Don't tie our hands:  over long-term contracts. 
 
 
Agreed: { a) verbal commn thro' Makins to cover y/. 

             { b) inter-dept. unhurried consultn to bring up draft on 


                  ques. of princ. 
 

| A.    | Care over a. not to compromise our general position.          |
|-------|---------------------------------------------------------------|
|       |                                                               |
| J.S.  | May I send personal tel. to Gardiner askg. him to keep us inf |
| d     |                                                               |



Agreed. 


[Enter J.B.H. 
 
                  6 .     Gift Food Parcels for Overseas.
 

 J.S. 
Diff. to refuse facilities for relatives & close friends.  Problem = avoid 
abuse. 
 
Best s'guard = limit it to rationed foods. J.B.H. 
Favour in principle:  small nos.  & concern since postal contact resumed. 
 
Austria:  quad. agreemt. on p. post service wh. enables food parcel to go so 
long as not sent by individual (shop instead).  Cd. pos. be amended to fit in with M/F scheme. 
 
Germany:  no quad. agreemt. & no p. post.  But U.S. are starting such a 
service:  to U.S. and B. Zones.  Robertson inclined to favour same security risk as for A. H.M. 
Favour it in principle.  Worried re politics:  bad temper over rationing:  
feeling re Germany fluctuates.  Believe this is wrong moment to do it.  
P'pone 3 months. J.J.L. 
There wd. be claim for some facilities for relations to send parcels to B. 
soldiers in G. & Austria. P.M. 
Favoured delay. 
 
Rationing may be awkward:  let it settle down for a while. 

 
How cd. you prevent people pressing unduly weaker brethren to send their 
food. A. 
Counselled delay.  More will oppose than will welcome. J.S. 
Obvious there cdn't be a worse moment for U.K. 
 
But it is these next 2 mos. which are the most critical for relatives etc. in G. 
& A. betwn. now & the European harvest. J. 
Controversy over this has died down.  Leave it alone. 
 
 
Agreed:  Postpone for a time. 

## 1.     Cabinet Mission To India

Welcome:  congratns:   patience (trying phys. condns)  v. diff. problems.  
Need for rest. 

## 2.     Eire:  Membership Of U.N.O.

 A. 
Referred to earlier decision. 
 
U.S. initiative now.  Don't want U.S. to get in first.  Now want authy to 
inform Eire Govt. tht. if they apply we will support. 
 
C.E. 
N.I. may fear Partition will come to U.N.O. as result:  may cause trouble 
with N.I. 
 
 
But am keeping N.I. Govt. infod. N.B. 
F.O. support D.O. view. 

## 3.     Parliament

 H.M. 
W.S.C. wished 2 days for India & Parliament. 
 
Cd. Cab. Mission + P.M. see W.S.C. and A.E. + Cranbourne and A.N. 
Other. 
 
House will expect a statement.  But with this informal mtg. we might avoid 
any debate, or long debate, before Recess. R.S.C. 
Some debate now
 wd. be better than end/July.  Must be statement, and wd. 
think short debate also inevitable.  Statement must be long. 


Discussion deferred. 

## 4.     India: Report Of Cabinet Mission

 P.L. 
Thanks for congratns.  Arduous task. 
 
Diffies of negotn.  No one who can spk. for Congress - no one to make a deal 
- Azad can't & doesn't commit Congress.  Also Ejhandi - unpredictable:  nor can he commit Congress:  but Congress agreement isn't firm w'out him. 
 
All v. suspicious, both of us & one another.  Everything therefore must be in 
writing. 
 
Hot weather.  Everyone cross & someone always away! 
 
First month spent in seeing everyone & exploring the ground.  Saw them in 
private as well as public.  Thus arrived at idea of settlement wh. we hadn't in view when we left - the 3-tier system.  This in a small 
country wd. be over elaborate.  But that objn doesn't apply in India - 

whose popn exceeds sum of U.K., U.S.A. & U.S.S.R.  We concluded it was only hope of solution. 

 
At Simila got them a long way twds. agreement on this. 
 
Jinnah indicated readiness to accept this & abandon sou. Pakistan. 
 
Nehru, while rejecting parity, offered system by wh. major ques. wd. require 
majority of each communal Party. 
 
They offered to consult separately:  broke down: & we issued our statement 
of 16/5. 
 
That was one of our 2 tasks:  the long-term solution.  The other - formn of 
interim Govt. - we decided to leave conversns to Viceroy. He saw both 
sides on basis of 5:5:2 (minorities) Govt. Jinnah assumed 5 Congress 
repves wd. all be Hindus.  Congress insisted tht. this Govt. shd. have 
real power, & not be Advisory Council. 
 
I believed some accommn wd. be poss. short of altering constitution. 
 
Finally, Azad indicated that settlement wd. be reached if we gave assurances 
about new status of interim Govt.  We gave them: then Congress raised all the other points! 
 
Then statement of 16/6 re interim Govt.  Clause wh. will become important 
in future penultimate para. of India 71.  We were thinking of Jinnah, if 
we were thinking of anyone.  We were prepd to put Jinnah in & leave 
Congress outside if they wdn't co-operate.  That was a heavy 
responsibility, wh. we were prepd to take. 
 
 
Delays.  Eventually told Congress we wanted an answer by 23.6.  
About then, a v. unfortunate thing happened.  Congress were on verge of accepting - resolution had bn. carried tho' against advice of Ghandi (who advised Congress to remain a national not solely a Hindu body).  
But they delayed communicating.  Azad saw Viceroy & suggd 
nominatg. Moslem in place of one in the list.  Viceroy told Jinnah, who exploded & wrote to newspaper.  Press also had headline "Congress admits it is Hindu Body".  This publicity turned the scales: & they decided to reject the interim Govt. proposal.  But they then reflected tht. if they also turned down 16/5 scheme on long term, they wd. be left behind. 
 
 
With unexpected result tht. they accepted long-term & rejected 
interim! 
 
There phrase in India 71 came into play.  Viceroy has to start forming 
another Govt. 
 
Congress argued that talks must now start again.  We thought everyone was 
tired - useless to go on - decided to leave an interval.  We came home… 
 
Two Questions: 
 
 
a) How far will long-term plan be worked? 

I believe there is a good chance that both sides will play.                   
Viceroy is v. gloomy:  thinks it's a patched-up business & won't last. Believe truth lies nearer my view. 
 
 
b) What about interim Govt. 
 
Fear Viceroy began by offering Moslems too much.  They are 
only 1/3
rd & it's a bit steep to deny that Congress representatives may 
ever include a Moslem. Don't believe we'll get Congress in on basis of 16/6. 

Must consider what guidance we give to Viceroy. Diff. to conceive central Govt. w'out Congress.  Wd. like to see a Coalition:  only way of holding fort.  They all agree in principle but not on terms. 

 Parliament (resumed) 
Debate will bring out disagreeable features.  But much published in India 
already. 
 
We shd. have to defend ourselves as best we can w'out exposing failings of 
Indians. 
 
If any debate, earlier the better.  3rd or 4th wk. July wd. be awkward for 
Viceroy wd. then be forming Govt. 
 
P.M. 
Won't do any good.  But doubt if we can hold H/C. 
 
Also don't under estimate success in establ. the constitn makg. body. 
 
The disagreeable facts will come out anyway. 
        x/ 
Publish the W. Paper & have early short debate.  Informal mtg. with Oppn 
(both Houses). A.V.A. 
Control over our Govt. supporters:  necessary in Viceroy's interest. 
 
 
Agreed at x/. R.S.C. 
Change of temper in India:  believe w'out sincerity. 
 
 
Agreed:  D.O. to consider disposal of L.S.T's etc. 
1.    Council of Foreign Ministers. 

 
P.M. 
Read E.B.'s latest telegram.  Still hung up. 

## 2.    Greece.

 

| N.B.                                                                   | Gk P.M. to meet no. of Ministers this week.  Left-wing Parties have    |
|------------------------------------------------------------------------|------------------------------------------------------------------------|
| announced will take part in Plebiscite:  prob. means measures for fair |                                                                        |
| vote:  but doubt whr public order will be maint                        |                                                                        |
| d                                                                      |                                                                        |
| .  Has got worse in                                                    |                                                                        |
| north - because of autonomist movemt. wh. may be supported fr. over    |                                                                        |
| frontier.  Impress on P.M. therefore need to m'tain order - even-      |                                                                        |
| handedly v. Left & Right.                                              |                                                                        |
|                                                                        |                                                                        |
| H.D.                                                                   | Shan't offer him any money.  Is that agreed?                           |
|                                                                        |                                                                        |
| A.V.A.                                                                 | You have a fixed date for ending maint                                 |
| ce                                                                     |                                                                        |
| of Gk. Army.  There shd. be a                                          |                                                                        |
| place for scaling down by then.  Otherwise Gk pressure on us to        |                                                                        |
| continue.                                                              |                                                                        |
|                                                                        |                                                                        |
| N.B.                                                                   | We've advised them to m'tain Army of 10,000 while threats fr. over n.  |
| frontier.                                                              |                                                                        |

 J.J.L. 
From morale angle we want to get our troops out. 

 N.B. 
H.McN. will see P.M. to-day & get his economic plans.  G. will need help 
for econ. reconstn.  Cd. C/E be symp. twds. Greece getting loans fr. 
Export/Import Bank. 
 
H.D. 
Don't mind that.

 

## 3.    Cyprus.

 G.H. 
If P.M. refers to Cyprus, hope firm tone will be adopted. 
 

| P.M.                               | We've never decided to cede Cyprus.  What is F.O. view.    |
|------------------------------------|------------------------------------------------------------|
|                                    |                                                            |
| N.B.                               | E.B. wants disc                                            |
| n                                  |                                                            |
| p'poned.  F.O. view think any decl |                                                            |
| n                                  |                                                            |
| this wk. wd. be a blow             |                                                            |
| to Tsaldaris' pos                  |                                                            |
| n                                  |                                                            |
| .                                  |                                                            |

 

| G.H.                                                               | Will be raised in H/C. & somethg. must be said.                          |
|--------------------------------------------------------------------|--------------------------------------------------------------------------|
|                                                                    |                                                                          |
| H.D.                                                               | What have we done for, or with, Cyprus since 1878?  C.O.S. never say its |
| any good.  Discredit and incubus.  Don't rush to view that this is |                                                                          |
| desirable pos                                                      |                                                                          |
| n                                                                  |                                                                          |
| .                                                                  |                                                                          |
| G.H.                                                                | There is a reply to that case:  but we aren't discussing merits.  E.B. doesn't    |
|---------------------------------------------------------------------|-----------------------------------------------------------------------------------|
| want Cyprus ceded to Greece:  but wants to choose an opportune time |                                                                                   |
| to say so.                                                          |                                                                                   |
|                                                                     |                                                                                   |
| P.M.                                                                | Stand pat:  if ques. raised, say hasn't bn. considered.                           |
|                                                                     |                                                                                   |
| N.B.                                                                | E.B. thinks it wd. be embarrassing if this issue raised in H/C. before P.         |
| Conf                                                                |                                                                                   |
| ce                                                                  |                                                                                   |
| .                                                                   |                                                                                   |
|                                                                     |                                                                                   |
| P.M.                                                                | See the main M.P.'s. & urge them to lay off.                                      |
|                                                                     |                                                                                   |
| G.H.                                                                | And I will try to agree with F.O. on some formula for use. }                      |
|                                                                     |                                                                                   |

 
4.    Palestine. 

 P.M. 
F.O. telegrams suggesting issue of statement with a view to influencg. Loan 
discns. G.H. 
Doubt if this will do any good.  Doesn't meet Zionist view:  they will be 
cynical about it.  Hope to receive fr. H. Comms. statement about ending of B. action then.  Wd. rather wait for that. N.B. 
We don't think much of this.  Attach more importce to W'ton tells. re publn 
of the evidce connectg. Agency with Hagana. P.M. 
Have asked C.O. for memo. on this.  Now told we must be careful how we 
use this informn.  Want it this week. 
 
I asked if this informn cd. be used in debate.  Imposs. to deny this now, when 
I have used it. 
 
H.M. 
I raised the ques. whr. the evidence for it cd. be used.  And they were 
doubtful. P.M. 
Statement shd. include supportg. evidce collected in the raid. 
                   x/ I will meet C.O. & M.L.S. officials with a view to getting statement out 
before Loan Debate concluded. H.M. 
You won't get it out until near the end - & can't tell which way it will go. H.D. 
Don't believe it will.  Wd. p'pone it until after the Loan debate. N.B. 
Wdn't issue anything after Debate has begun.  And can't get anything out 
this p.m. P.M. 
Only thing that wd. swing opinion wd. be promise over the 100,000. G.H. 
 Factual statement re end of H.C.'s action in Pal. wd. be better. 
 
 
Generally agreed. A.V.A. 
Plus statement re earlier arrival of Grady's team.   


Generally agreed. 
J. 
And issue here (H/C) vice Washington. H.M. 
Let H.C. announce it even earlier. 
 
 
Leave it until some news announcement can be made. E.W. 
Cd. we not use "Zionist" vice "Jew". 
 
 
Generally welcomed. 


Confirmed decision re Parly. missions. P.M. 
Illegal immigration - must be considered v. soon.  Prob. Thursday. 

## 5.    Austria:  Russian Seizure Of Property.

 N.B. 
R. seizing property in Austria as being German.  Genl. M. Cain has replied 
tht. G. assets shd. be defined as follows - quote. 
 
Suggest we support U.S. view: encourage Austria to resist:  press for earlier 
discn in Paris. 


[Exit OS 


[Enter W. & Barnes 
 

## 6.    Civil Aviation.

 
A.G. 
L. Boyd amendment re M.P. not being on Board. 
 
 
Agreed:  resist amendment. 

7.    Petrol Rationing. 

 E.Sh. 
As in memo. regarding representns made. 
 
Stocks ample to enable us to meet all demands with restns removed. 
 
Consumptn of goods vehicles is now 85% & p. service vehicles 93% of prewar. 
 
 
But that conceals higher consumptn by old vehicles - prs. 15-20%. 
 
Financial implications - as in memo. $50M in a full year. 
 
Won't be poss. anyway to m'tain present posn for long.  And adminly 
imposs. to relax,  rather than abolish restns.  30,000 comm. travellers 
recievg. suppl.  We deal with these demands (e.g. farmers etc.) by 
staggering appln dates.  If we gave a genl. relaxn (as suggested in 
alternatives) cdn't do that & wd. need much larger staff.  We therefore prefer total abolition. 
|                                                                    | Pressure fr. Doms.  Had to compromise in N.Z. - discussg. with Austr. - in    |
|--------------------------------------------------------------------|-------------------------------------------------------------------------------|
| S. Africa total abolition of rationg. already.                     |                                                                               |
|                                                                    | Cd. be self-sufficient on sterling oil.  But that is now our highest export & |
| we must m'tain that market:  sometimes we sell v. hard currencies. |                                                                               |
|                                                                    |                                                                               |
| haul.                                                              |                                                                               |

 
Wd. relieve pressure on rlways. B. 
In general agreement.  My chief reason = economy in staff, who are doing 
little good.  We are mtg. main needs of commercial transport. 
 
Wish E.Sh. had consulted my Dpt. on details. 
 
No tanker diffy. 
 
P.M. 
Is it true there is w'spread evasion? R.S.C. 
Opposed  
a) will make it awkward to m'tain rigid control of other imports. b) 
tyres:  controlled thro' E. petrol licences.  How cd. we then 
get the tyres to doctors & others who need them.  No chance of tyres for other than E. licences until July. 
c) will knock the car export market.  50% of prodn going abroad 
now, by vol. agreement because little demand here for new cars. 
 
Prefer therefore relaxation to abolition. 
 

| H.D.                                           | Premature to decide now.    |
|------------------------------------------------|-----------------------------|
|                                                | When we last exam           |
| d                                              |                             |
| we agreed on $1300M p'mme.  Provisional, to be |                             |
| settled later.                                 |                             |

 
Don't therefore concede this in advance of general review after Loan. 

 
Need to avoid too big a relaxn of effort when Loan is thro'. 

 
Priorities:  Food:  machinery: timber & heavy fuel oil (switch-over from 
coal). 
 
 
In all these cases there will be strong pressure for addl. dollar 
expenditure. 
 
 
Can't give complete freedom for motoring in advance. 

 
Also risk of rising prices because of relaxn of price control in U.S.A. 

 
Don't want to exclude this as middle-distance project. 
 
Suggest 

consider as part of general review. 

a) b) consider, not abolition (i.e. absence of all control), but increase of 
basic ration: that doesn't involve the adminve complicns of 
increasing supplements. 

 J. 
What about black-market?  Corruption etc., but the whole thing in danger of 
being a scandal. T.W. 
Those who want to pay can get all they want. 
 
Nothing in R.S.C. point. c).  Order books are full. E.Sh. 
Don't think much of arguments con.
 

 
 
R.S.C. (c) can be met by raising home price.  
 
 
I'm not askg. for unlimited commitmt.  Ty. themselves have prepd 
estimate of cost. 
 
 
Price.  Partly due to abolition of price control.  But export prices turn 
on world supply:  & as there's no world shortage price won't rise.  We 
have ample stocks.  No one suggests we shd. stop buying dollar oil: & continue rationing.  Ty. don't want it stopped. 

 
Not in same posn as food.  You can't get more wheat.  You can get petrol. 

 
Consumption pretty high:  but don't under-estimate the agitation. 
 
Timber:  can get much fr. Germany: shdn't need dollars for additional 
timber. 
 
Tyres:  Reply is: doesn't follow tht. abolition of petrol control will make that 
more diff.  Wd. rather have our grouse than two. 
 
 
Private motorist is using tyres now…. 
 
How can you m'tain existg. restrns when it's known we have ample stocks? 
 
 
That's main point.  I can temporise re Loan. but no more. H.D. 
With unlimited demand, your stocks will be exhausted. 
 

| E.Sh.                          | That doesn't meet the point about selling sterling oil.                     |
|--------------------------------|-----------------------------------------------------------------------------|
|                                | I have really no firm case on wh. to resist pressure.  Service argument has |
| gone:  for their consumpt      |                                                                             |
| n                              |                                                                             |
| has bn. substantially reduced. |                                                                             |

 

P.M. 
Shdn't you have reduced importn. 

 

E.Sh. 
Can we tell Anglo. Persian to reduce prodn in order to bolster up rationing. 

 

| B.                                                         | Disc                                                                        |
|------------------------------------------------------------|-----------------------------------------------------------------------------|
| n                                                          |                                                                             |
| shows there shd. have bn. inter-Dept. consult              |                                                                             |
| n                                                          |                                                                             |
| .                                                          |                                                                             |
|                                                            | Petrol rationing is brkg. down - 600 in M/T.  1.000 in M/F & P. employed to |
| no purpose.  Danger of spread to other forms of rationing. |                                                                             |

 
Tyres:  governed by limitn on use of vehicles. P.M. 
Effect on traffic in London. B. 
I wdn't use that sort of R.S.C. argument. 
 

| C.E.                                   | People must soon have some reasonable facilities for recreation.  Their range    |
|----------------------------------------|----------------------------------------------------------------------------------|
| at present is v. limited.              |                                                                                  |
|                                        | Abuse.  Of course it's widespread.                                               |
|                                        | Moral as much as material factors must be considered in this regard.             |
|                                        |                                                                                  |
| n                                      |                                                                                  |
| that cd. go.                           |                                                                                  |
|                                        |                                                                                  |
| J.S.                                   | We cd. get more food with more dollars:  not wheat, but variety in diet.         |
|                                        | Don't dissent fr. C.E. views: but wd. wish to have proper priority between       |
| various claimants on a general review. |                                                                                  |
|                                        |                                                                                  |
| H.D.                                   | Million dollars. 1300 total.  450 food. (incldg. 75 for improved variety)        |
|                                        |                                                                                  |
| 100 machinery  75 for films.           |                                                                                  |
|                                        |                                                                                  |
| A.V.A.                                                               | Nicely balanced.  But what we have to consider is genl. fiscal & economic    |
|----------------------------------------------------------------------|------------------------------------------------------------------------------|
| pos                                                                  |                                                                              |
| n                                                                    |                                                                              |
| in 3 yrs. time.  V. awkward unless we have m'while                   |                                                                              |
| i) eased situation at end L. Lease.                                  |                                                                              |
| ii) created good will for export trade.  Otherwise, the content will |                                                                              |
| be short-lived; and disillusionment will come 18 mos. before         |                                                                              |
| election.                                                            |                                                                              |
|                                                                      |                                                                              |
| ns                                                                   |                                                                              |
| .                                                                    |                                                                              |
|                                                                      |                                                                              |
| H.M.                                                                 | When Loan is thro', Dpts. will have to make a genl. review.                  |
|                                                                      | Inconvenient tht. this shd. come alone & direct to Cab.                      |
|                                                                      | Shd. be considered interdepartmentally & ? come to L.P. Cttee or other       |
| appropriate Cttee. first.                                            |                                                                              |
|                                                                      | Food shd. come first.                                                        |
|                                                                      |                                                                              |
| P.M.                                                                 | Want it reviewed by Ministers concerned.                                     |
|                                                                      |                                                                              |
| N.B.                                                                 | Not yet out of the wood in Persia.                                           |
|                                                                      |                                                                              |
| A.                                                                   | Hope that in the review proposed  C.E.'s consid                              |
| ns                                                                   |                                                                              |
| will be prominently kept                                             |                                                                              |
| in mind.                                                             |                                                                              |

 

| H.D.                                                         | Cttee - shd. be Ec. Planning Cttee cf. earlier C.M. disc   |
|--------------------------------------------------------------|------------------------------------------------------------|
| ns                                                           |                                                            |
| .                                                            |                                                            |
|                                                              |                                                            |
| P.M.                                                         | What prop                                                  |
| n                                                            |                                                            |
| does actual consumpt                                         |                                                            |
| n                                                            |                                                            |
| bear to what it shd. be on ration.  Can't                    |                                                            |
| this be ascertained, as check on allegation re black market. |                                                            |
|                                                              |                                                            |
| E.Sh.                                                        | What do I say re this on Thursday's adjournment?           |



No answer. 

[Exit N.B: Barnes: W. 
 
8. Social Survey.
 

 H.M. 
B/T. willing to come over to C.O.I. in the end.  M/F. may find it more 
difficult. 
 
Ty. not only concur but advocate.  Keep watch on expendre.  Review in 2 
yrs. 
 
M/H was converted. 

 H.D. 
My advisers think this is more economical.  I am more sceptical than they. 

 A.V.A. 
Why not use commercial firms? H.M. 
M/F use them & spend more.  Believe that wd. be more expensive. 

 R.S.C. 
Confidential nature of some enquiries - better not entrusted to outside firms. 
 
 
Memo approved. 
 

## 1.    Agricultural Prices.

|                                                                    |                                                                            |
|--------------------------------------------------------------------|----------------------------------------------------------------------------|
|                                                                    |                                                                            |
| T.W.                                                               | Tried to avoid automatic increase.  Tried to provide inducement for things |
| we know we need most.  Consulted Ty & M/F who agree these are best |                                                                            |
| prices.                                                            |                                                                            |
|                                                                    |                                                                            |
| J.W.                                                               | Agree.  Shall have diff                                                    |
| ies                                                                |                                                                            |
| on para. 16 but I accept need for wheat incentives.                |                                                                            |
|                                                                    |                                                                            |
| C.E.                                                               | Agree qua                                                                  |
| N. Ireland.                                                        |                                                                            |
|                                                                    |                                                                            |
| H.D.                                                               | Not enthusiastic.  Only £2M p.a. margin between these prices & automatic   |
| recoupment, which latter I must continue to resist in principle.   |                                                                            |
|                                                                    | Have made some cuts:  & tho' I don't like it I don't now contest it.       |

 

| A.V.A.                                                                   | Where will this policy take us?  This is now a direct subsidy of wages which    |
|--------------------------------------------------------------------------|---------------------------------------------------------------------------------|
| the industry cdn't pay.  A v. awkward precedent for coal, steel etc.  V. |                                                                                 |
| dubious policy.                                                          |                                                                                 |
|                                                                          |                                                                                 |
| R.S.C.                                                                   | I'm concerned fr. same sort of angle.  In our price-fixing we have bn. at       |
| pains to avoid the automatic principle:  & insisted tht. greater         |                                                                                 |
| efficiency must carry wage increase.  Wd. sooner see an acreage          |                                                                                 |
| subsidy than this.  Then it wd. become poss. to vary the grant with      |                                                                                 |
| quality of soil - & meet "marginal problem".  But what we are doing      |                                                                                 |
| here is to follow the wage-price spiral.                                 |                                                                                 |
|                                                                          |                                                                                 |
| P.M.                                                                     | The marginal product was the argument for higher prices - but he doesn't        |
| employ labour.  Always assumed tht. larger farmer cd. afford his         |                                                                                 |
| labour costs.                                                            |                                                                                 |
|                                                                          |                                                                                 |
| none.                                                                    |                                                                                 |

 
 
If you knocked out those who employd none & those who cd. afford to 
pay more the residue wd. be small. 

 T.W. 
Estimate is based on hired labour. (15 ½ M) exlcudg. f. & wife (wh. wd. 
have put it to (£25M).  This means tht. big farmer will get only 75% of increased cost.  He gets less out of this than anyone. 
 
Trying for months to get a solution of "marginal" problem. 
 
Acreage paymts only for wheat, sugar & potatoes.  Wdn't cover milk prodn. 
 
 
Our problem = spread increased costs over whole field 
a) to recoup in part b) 
to provide incentives.  Cdn't do that by acreage payments. 
 
Re   A.V.A. argument, I recognise the danger: & put memo. on it when wage 
increase was asked for.  Repeat this warning - repeated increases in agric. prices will start the spiral.  But at this moment, when we want the food & the man-power, we must take an exceptional step.  Must make the best of a v. bad situation. 

R.S.C. 
Agree you can't do all by acreage paymt.  But £3M. (App A) & £7M (App 
C) represent wheat, potatoes & sugar;  & if you handled them by acreage method it wd. take large slice out of the price rise.  Surely it wd. help, even tho' milk etc., has to be done by price increase. T.W. 
Want wheat grown when biggest yield.  Price is better incentive for big 
yields, & choice of better crop.  Acreage paymt. wd. tend to get wheat grown on land when barley wd. give a better yield. E.Sh. 
Remember tht. the wage increase has bn. given - with official Govt. 
encouragemt. however we concealed it. 
 
Wage policy =  skeleton at feast.  Lived with it for 12 months now & it will 
get worse.  And we always shelve it.  Ind. Council won't really do.  
We shall have to tell Unions they can't have increases. 
 
 
Prices are rising & there is inflation. H.D. 
Give us facts not fancies. E.Sh. 
Must face whole economic set-up which is creating this situation. P.M. 
Back to mutton.  Why can't you combine price & acreage payment. T.W. 
Already makg. acreage paymt. for the 3 commodities: & our experts think 
this increase shd. be made on price item in the composite payment. 
 
The acr. p. has special virtue when aiming at maximum.  But expedient only 
for period you want more than normal prodn.  When you are shading 
off marginal prodn, begin with shedding acreage p. A. 
My view is contrary to R.S.C.  Acr. p. encourages prodn on uneconomic 
land:  induces farmers to use land to worst advantage.  Want it reduced not extended. 
 
Need system wh. will increase efficiency. 
 
 
But must remember 
a) man who doesn't employ - largely milk, who will get an 
advantage:  but first don't often grow wheat or pots. 
b) national emergency.  This is main justification.  That is why I 
wd. have put an even greater emphasis on wheat vice barley. 

c) We are makg. livestock producers kill their stock.  Destroying 
their capital stock. That is a reason for extra assistance. 
 
I wd. therefore represent these prices as exceptional, due to b) & c).  Don't 
tie it up to labour costs. 
 
This is well below farmers' demand.  Needn't therefore be related to wage 
increases. J.S. 
Want max. prodn in U.K. & can't therefore avoid supporting these proposals.  
Duty on this country, as others, to maximise prodn even in uneconomic 
way. 
 
Wheat/barley differenn:  satisf. if Can. wheat crop is good.  This is promised 
tho' not actual.  Take note, however, tht. if Can. crop failed in next month, then Cab. shd. consider ratio of wheat/barley prices in U.K. so 
as to encourage greater sowing of wheat in autumn. & greater extractn 
of barley fr. animal feeding fr. 1946 crop.  Pity we are fixing this 6 wks to soon. 

 

| R.S.C.                                                                 | Repeated acr. p. argument.                                                     |
|------------------------------------------------------------------------|--------------------------------------------------------------------------------|
|                                                                        |                                                                                |
| H.M.                                                                   | Supported A.  Price = better incentive to big yield.  prefer to put weight on  |
| that.  Remember we are running price control:  w'out it a lot of these |                                                                                |
| prices wd. soar.                                                       |                                                                                |
|                                                                        |                                                                                |
|                                                                        | Recommend agreement.                                                           |
|                                                                        |                                                                                |
|                                                                        |                                                                                |
|                                                                        |                                                                                |
| A.V.A.                                                                 | Land increment values.  Higher prices for agric. land.  Is Ty. looking at this |
| in rel                                                                 |                                                                                |
| n                                                                      |                                                                                |
| to subsidies wh. are being paid.                                       |                                                                                |
|                                                                        |                                                                                |
| T.W.                                                                   | T.C.P. Bill + my new Bill shd. take the edge off specul                        |
| n                                                                      |                                                                                |
| .                                                                      |                                                                                |
|                                                                        |                                                                                |
|                                                                        |                                                                                |
|                                                                        |                                                                                |
|                                                                        |                                                                                |
| 2.    Parliament.                                                      |                                                                                |
|                                                                        |                                                                                |
| H.M.                                                                   | Business for next week.                                                        |
|                                                                        |                                                                                |
|                                                                        |                                                                                |
|                                                                        |                                                                                |
|                                                                        |                                                                                |
| 3.    Palestine.                                                       |                                                                                |
|                                                                        |                                                                                |
|                                                                        |                                                                                |
| P.M.                                                                   | Statement rejected.  Harriman asked for something.  Issued statemt. re         |
| forthcoming consult                                                    |                                                                                |
| n                                                                      |                                                                                |
| .                                                                      |                                                                                |
|                                                                        |                                                                                |
|                                                                        |                                                                                |

 
 
a)    Situation in Palestine 
 

| G.H.                                                               | Mil. searches ceased.  Search for leaders only procd.  Not yet announced.     |
|--------------------------------------------------------------------|-------------------------------------------------------------------------------|
| Have asked H.C. to consider doing so, after consult                |                                                                               |
| n                                                                  |                                                                               |
| with C-in-C.                                                       |                                                                               |
|                                                                    | Interview between Weizmann & Ch. Secretary - in telegr. circulated.           |
| Shows W. says we didn't know of  Palmar organ                      |                                                                               |
| n                                                                  |                                                                               |
| until present visit to                                             |                                                                               |
| Pal.  Yet this known to most people for ¾ yrs.  Want Cab. views on |                                                                               |
| sugg                                                               |                                                                               |
| n                                                                  |                                                                               |
| for release of Agency Members.                                     |                                                                               |
|                                                                    |                                                                               |
|                                                                    | Intercept betwn. leader of Hagana & Ben Gurion. - indicates cleft & asks B.   |
| Gurion for guidance.                                               |                                                                               |
|                                                                    | Bldg. handed back y'day.  Damage assessed £P.137.                             |
|                                                                    |                                                                               |
| 285                                                                |                                                                               |

 
2 Zionists now on their way to U.K. & Weizmann soon to come too.  Joint 
Anglo. U.S. discns may be advanced by them & convenient to discuss. P.M. 
Why not invite & say so - to strengthen hand of moderates. 
 
What of other members of Executive? 
 

| G.H.                                                               |
|--------------------------------------------------------------------|
| ce                                                                 |
| collected.  H.C.                                                   |
| also wants guarantees fr. those with whom he is treating before he |
| releases these men.                                                |

 P.M. 
J. to attend mtg. this p.m.  on examn of evidence collected in search. G.H. 
50% of leaders of Agency arrested & still detained. 
 
C.I.G.S. 
Must let wasps settle.  But further action:  plans to eliminate Irgun, Stern & 
later Talmac. P.M. 
Mustn't let situation run on too long. G.H. 
Illegal immigrants. Now 2.500 in detention.  Fills quotas to mid/Sept. 
 
 
Ship with capacity for 2.000 arrived at Constanza.  F.O. asked to 
enquire.  C.O.S. proposing again diversion of these ships to Cyprus.  
May precipitate diffies in Cyprus as well as Palestine.  Risk of another 
Patria.  We therefore feel tht. at this stage it wd. be too dangerous to divert to Cyprus. P.M. 
F.O. shd. take strong line in Bucharest. N.B. 
What can we say, unless they are Romanian Jews. P.M. 
Put pressure on Agency people to stop the flow. 
 
G.H. 
Only W. is coming.  Wd. you want me to get a negotiating Cttee over? N.B. 
There is a Cttee mtg. in Paris.  Get them over here. G.H. 
Wise & Liboki coming here
, not Paris, we thought. P.M. 
Discussions re immediate situation in Palestine.  To avoid Arab resentment. 
 
 
Make that clear:  otherwise trouble. G.H. 
W. understands that.  Shaw's telegram. 

|                                                                   | Cd. we divert proposed J.A. mtg. in Paris to Ldn?  Trouble:  B. Gurion is    |
|-------------------------------------------------------------------|------------------------------------------------------------------------------|
| "wanted" by H.C.                                                  |                                                                              |
|                                                                   |                                                                              |
| N.B.                                                              | Better have it in Paris.                                                     |
|                                                                   | W'ton wanted some publ                                                       |
| n                                                                 |                                                                              |
| of ev                                                             |                                                                              |
| ce                                                                |                                                                              |
| before end of Loan discussions.                                   |                                                                              |
|                                                                   |                                                                              |
| P.M.                                                              | Not prep                                                                     |
| d                                                                 |                                                                              |
| to give anything before given to H/C.  And want careful scrutiny. |                                                                              |
|                                                                   |                                                                              | H.D. 
Advices re Loan are favourable now.  Don't rush it. 
 

## B)    Long-Term Situation

 Brook: 
Report on discns with E.B. P.M. 
G.H. memo represents restns to offls. to speak wholly v. report of Anglo. 
U.S. Report.  Wd. rather let the offls. put fwd. constructive plan as in G.H.'s second memo. H.D. 
Shift ground of debate.  Rpt. is a bad one.  Can we not move twds. E.B.'s 
long-term solution.  Indep. Jewish State: & Arab territory added to 
adjacent Arab countries.  H'to opposed Partition: but mind is moving twds. Partition.  Then you cd. say let the 100,000 go in: & the Agency pay.  If we have Partition in mind, why not take it into a/c at once in 
Anglo.U.S. discns.  Disadvantages of G.H. plan:  still have mandatory 
responsib.:  finance:  strategic needs via Treaty with Arab States. P.M. 
Much history in this.  Palestine boundaries v. diff.  Value of interim scheme:  
can separate sovereignty & cultural autonomy.  Avoids diffy. of tariffs, customs etc. J. 
Gt. diffies over boundaries.  Wd. involve immed. relinquishment of mandate 
& thus discns in U.N.  Under G.H. you buy time & get boundaries 
accepted with less diffy. R.S.C. 
Cantonisation is best route to Partition.  With central adminn boundaries 
much easier.  Eventual solution can then develop.  Prov. boundies can 
be adjusted:  national can't. P.M. 
This wd. solve the immigration problem. G.H. 
Boundaries on populn basis.  Gave figures from memo. P.L. 
What power to prevent Jews spilling into Arab Province? G.H. 
Land laws to prevent it:  under Arab Province Control. E.Sh. 
Don't rule out possibility tht. when we can remove econ. Diffies there may be 
some accommn betwn. J. & A.  No short-term solution.  Don't adopt 
merely negative attitude in discns. 
 
For strategic reasons (C.O.S. memo) Partition as such must be ruled out. 
 
 
Provincial soln unwise - semi-autonomous Regions to be preferred. 
 
Assistce to Arabs (econ. standards) is essential. 
 
Don't accept Zionist view.  But must do somethg. for Jews in other 
countries. 
|                                                                             |                                                                          |
|-----------------------------------------------------------------------------|--------------------------------------------------------------------------|
| Must try to get other countries to treat them reasonably.  Jews in C.       |                                                                          |
| Europe wd. still be a problem, even if Pal. solved.                         |                                                                          |
|                                                                             | P.M. shd. have dis                                                       |
| ns                                                                          |                                                                          |
| with W.  Still has influence.  Want breathing space                         |                                                                          |
| before tackling long-term problem.  The 100,000 cdn't go at once: step      |                                                                          |
| up existg. quota:  discuss that with Arabs.                                 |                                                                          |
|                                                                             |                                                                          |
| P.M.                                                                        | Face up to U.S. offls. to Rec. 1. at once.                               |
|                                                                             |                                                                          |
| J.S.                                                                        | From angle of U.S. negotiations, must face the fact tht. if we refuse or |
| appear to dodge recomm                                                      |                                                                          |
| n                                                                           |                                                                          |
| 2 nothing else will have any effect on U.S.                                 |                                                                          |
| opinion.                                                                    |                                                                          |
|                                                                             |                                                                          |
| P.M.                                                                        | Re-actions of Arabs.                                                     |
|                                                                             |                                                                          |
| J.J.L.                                                                      | Remind U.S. of our Polcs.                                                |
|                                                                             |                                                                          |
| N.B.                                                                        | La Guardia is proposing admission of 120,000 into U.S.  He & S. Bloom    |
| will have chance of getting this thro' at U.N.                              |                                                                          |
|                                                                             | Hope I may be encouraged to support him in this.                         |
|                                                                             | Wider issues.  Diff                                                      |
| ies                                                                         |                                                                          |
| in early                                                                    | Partition.  prefer G.H.'s plan.  But if we put it                        |
| fwd. as alternative to Anglo. U.S. Rpt., we may be in diffy.  Have          |                                                                          |
| promised to take it as basis of discussion.  Mustn't start like that.  This |                                                                          |
| finds weakness - viz. Rec. 3 & 6.  Put it in under Rec. 3.                  |                                                                          |
|                                                                             |                                                                          |
| P.M.                                                                        | Put firm line on Rec.1.  Plus:  we haven't accepted Hitler's policy of   |
| expelling Jews fr. Europe.                                                  |                                                                          |
|                                                                             | Then Rec. 2                                                              |
|                                                                             | Then under Rec 3.  What practical prospects?  Inject alternative.        |
|                                                                             | Views of C.O.S?                                                          |
|                                                                             |                                                                          |
| C.A.S.                                                                      | Strategic consid                                                         |
| ns                                                                          |                                                                          |
| apply whatever the solution.                                                |                                                                          |
|                                                                             | Our strat. needs (comm                                                   |
| ns                                                                          |                                                                          |
| & oil) in M.E. depend on retaing. good will & co-                           |                                                                          |
| op                                                                          |                                                                          |
| n                                                                           |                                                                          |
| of Arabs.  U.S. becoming increasingly interested in M/E oil.                |                                                                          |
|                                                                             |                                                                          |
| H.D.                                                                        | C.O.S. apprec                                                            |
| n                                                                           |                                                                          |
| of how their needs cd. best be met - under 3 alternatives,                  |                                                                          |
| incldg. Partition.                                                          |                                                                          |
|                                                                             |                                                                          |
| J.                                                                          | Transfer of Arab pop                                                     |
| n                                                                           |                                                                          |
| .  Hope G.B. won't have to pay.                                             |                                                                          |
|                                                                             |                                                                          |
| N.B.                                                                        | Many won't want to go.  Some cd. however be absorbed in Lowdermilk       |
| Jordan Valley scheme wh. wd. pay for itself.                                |                                                                          |
|                                                                             |                                                                          |
| P.M.                                                                        | Not much in favour of G.B.'s long-term idea.                             |
|                                                                             |                                                                          |
|                                                                             |                                                                          |

## 1.    Parliament

 

| H.M.                             | Business for next week.                                                      |
|----------------------------------|------------------------------------------------------------------------------|
|                                  |                                                                              |
| E.B.                             | Palestine:  debate awkward at this stage.  Govt. cd. say nil or imperil      |
| settlement.                      |                                                                              |
|                                  |                                                                              |
|                                  |                                                                              |
| ns                               |                                                                              |
| with J &                         |                                                                              |
| Arabs.                           |                                                                              |
|                                  |                                                                              |
| H.M.                             | Will try.  Remember firm promises given.                                     |
|                                  |                                                                              |
| E.B.                             | Spoke to AE - willing to be reasonable if Govt. supporters will lay off      |
| equally.                         |                                                                              |
|                                  |                                                                              |
| H.M.                             | Silverman, Crossman etc.  Cd. they be squared by 3.30 p.m.?                  |
|                                  | W. Paper will be published.  May say Parlt. helpless.  P.M. incldg. W.S.C.   |
|                                  |                                                                              |
| G.H.                             | I.S. said y'day he wd. press for a debate.                                   |
|                                  |                                                                              |
| A.                               | Samuel & Cranborne want debates on a) Palestine & b) F. Affairs.             |
|                                  | Samual is insistent on a) - not accommodatg.  Told him p'mme full up to      |
| 29/30 July. : subject to consult |                                                                              |
| n                                |                                                                              |
| with Cab. those days available.  |                                                                              |
|                                  |                                                                              |
| J.                               | If you do have debate, limit it to present & leave out future.               |
|                                  |                                                                              |
| A.                               | Debate on F. Affairs:  Samuel & Perth. insistg. on it.  Said only 30/7.  But |
| Cranb. is willing not to press.  |                                                                              |
|                                  |                                                                              |
| P.M.                             | E.B. cd. see Samuel & Perth.                                                 |
|                                  | Will have to debate W. Paper.  Thing is to avoid saying anything on long-    |
| term.                            |                                                                              |
|                                  |                                                                              |



[Enter J.S. 

## 2.    Bread Rationing.

 J.S. 
Rather surprising news from Canada - 
 
 
70/100m. bushels higher than any prev. estimate.  450m. bushels 
minimum. 
 
Asked Gardiner to confirm.  For if confirmed case for rationing as safety 
measure collapses. 
 
Decision was taken in principle before I assumed office.  Went to Am. 
largely to see whr. this was unavoidable.  Hoped to recomm. p'ponement of decision.  But on day of my return found figures wh. were alarming. 
|                                                                              |                                                                               |
|------------------------------------------------------------------------------|-------------------------------------------------------------------------------|
| favour of rationing.                                                         |                                                                               |
|                                                                              | This a.m. have assurance from Gardiner of minimum of 450 m. bushels -         |
| expects more rather than less:  wdn't be surprised if 500m.  Gives me        |                                                                               |
| auth                                                                         |                                                                               |
| y                                                                            |                                                                               |
| to announce expect                                                           |                                                                               |
| n                                                                            |                                                                               |
| of 450m.  I asked also for auth                                              |                                                                               |
| y                                                                            |                                                                               |
| to give                                                                      |                                                                               |
| assurance tht. we wd. get 200m. (vice 160m).  He won't give me that          |                                                                               |
| auth                                                                         |                                                                               |
| y                                                                            |                                                                               |
| .: tho' no doubt we shd. get up to 200m. out of crop of 450m.                |                                                                               |
|                                                                              | M.S. supply as before.  Shall be tight by end/Aug.  But rationing wdn't alter |
| that.                                                                        |                                                                               |
|                                                                              | My view therefore is tht. it's safe to p'pone rationing.  Keep scheme in      |
| being:  but unlikely we shd. need it.                                        |                                                                               |
|                                                                              | Grave pol. embarrassment, of course.  Running away from the bakers.           |
|                                                                              | On supply pos                                                                 |
| n                                                                            |                                                                               |
| , correct decision = p'pone.                                                 |                                                                               |
|                                                                              |                                                                               |
| P.M.                                                                         | We decided on this as precaution because 2 uncertainties                      |
| a) U.S. supplies and                                                         |                                                                               |
| b) U.K. weather                                                              |                                                                               |
| c)                                                                           | told also tht. physical limit                                                 |
| ns                                                                           |                                                                               |
| in increasg. exports fr. Canada                                              |                                                                               |
| because eastern elevators wd. be empty.  Crisis was next 2                   |                                                                               |
| months.                                                                      |                                                                               |
|                                                                              |                                                                               |
| J.S.                                                                         | These were M/F points.  My view now. b) we have written down reliance on      |
| U.K. to a safe point.  On c) I'm satisf. tht. if Can. wheat avail. in winter |                                                                               |
| we can ship it, at inconvenience of longer hauls.                            |                                                                               |
|                                                                              |                                                                               |
| P.M.                                                                         | d) J.B.H. told us last week there wd. be absolute shortage in G. w'out U.S.   |
| early supply.                                                                |                                                                               |
|                                                                              |                                                                               |
| J.S.                                                                         | Admit p'ponement will be internat. loss of bargaining power.                  |
|                                                                              | On a) U.S. July supplies are afloat:  Hutton is confident tht. replacement    |
| deliveries will come thro'.  Now able to test estimates v.                   |                                                                               |
| nationalisation.                                                             |                                                                               |
|                                                                              | On d) our hand wd. be strengthened if we rationed.                            |
|                                                                              |                                                                               |
| P.M.                                                                         | Suppose a real crisis in G.                                                   |

 J.S. 
Wd. only announce p'ponement for a month. A.V.A. 
Rlway workers' demand for higher pay:  seamen on Lakes - in Canada. J.S. 
That will be safe enough. P.M. 
Can. supply situation was never major factor in our decision. J.S. 
Entwined with genl. supply sitn - short & long. P.M. 
I assumed crisis was before Can. crop began to move. J.B.H. 
If  b'down in G., gt. pressure on us to divert shipment to U.K.  Diff. if we 
have no bread rationing. 
 

| T.W.                    | Change of dec                                                               |
|-------------------------|-----------------------------------------------------------------------------|
| n                       |                                                                             |
| will be criticised.     |                                                                             |
|                         |                                                                             |
| A.                      | If we can get extra supplies, right thing wd. be to increase animal food by |
| shortening extraction.  |                                                                             |
|                         | Politically, v. diff. to run away now fr. what was criticised as a hasty    |
| decision.               |                                                                             |
|                         |                                                                             |
| A.B.                    | Material situation hasn't altered enough to warrant change of policy.       |
|                         | Argument:  stock pos                                                        |
| n                       |                                                                             |
| too tight to run risks. |                                                                             |
|                         | Psychologically:  we've won the battle:  mistake to change now.             |
|                         | Need = variation of diet.  Any relief shd. go into animal food.             |

 

| H.M.                         | Arguments the other way.  If it were clear it was unnecessary we shdn't do    |
|------------------------------|-------------------------------------------------------------------------------|
| it.                          |                                                                               |
|                              |                                                                               |
| housewives of worry of this. |                                                                               |
|                              | If it proves troublesome & is unnecessary - trouble.                          |
|                              | G. thought we'd decided not to divert from U.K.                               |

 
U.S. reactions.  Wdn't worry because they never wanted us to have to ration. 

|              |                                                                   |
|--------------|-------------------------------------------------------------------|
| to H/C.      |                                                                   |
|              |                                                                   |
| E.W.         | Will Gardiner say tht. he has given guarantee tht. made rationing |
| unnecessary. |                                                                   |

 

| J.S.                                              | No.                                                                           |
|---------------------------------------------------|-------------------------------------------------------------------------------|
|                                                   |                                                                               |
| R.S.C.                                            | Best line = say improved crop prospects:  greater hope therefore that it will |
| be short-term but short-term problem still acute. |                                                                               |
|                                                   |                                                                               |
| H.D.                                              | "Don't gamble with nation's food" - still holds good.                         |
|                                                   |                                                                               |
| E.B.                                              |                                                                               |
| controls.                                         |                                                                               |
|                                                   |                                                                               |
| recently.  Strikes in Can. v. long.               |                                                                               |

 
 
c) On 9 wks. stock, strike in Lpl. or Ldn. wd. knock you down to 4 
wks. 
 
 
Near the knuckle 
 
 
d) Now to end/Sept is biggest movement of population.  Points scheme 
as "2nd currency" facilitates flexibility of supply movement.  When holidays began in U.K., millions said 2 wks. addl. stock was required. 
 
Let M/F say one of his first steps will be to improve quality of bread. 
 
U.S. reactions will be dangerous. 
 
 
Agreed:  Let decision stand. 

[Exeunt J.S. 

## 3.    India

| P.M.    | Have bn. into this (guidance to Viceroy) with Cab. Mission.     |
|---------|-----------------------------------------------------------------|
|         | Short point:  if Jinnah won't come in, we must go on w'out him. |
|         |                                                                 |
|         |                                                                 |
|         |                                                                 |
|         |                                                                 |

## 4.    Amendment Of British North America Act.

 A.                    As in memo. 
Letter received - Prayer passed, legn wanted before Recess. 
 
No notice given by Canada. 
 
Draft Bill follows earlier precedents - 1943 & earlier. P.M. 
May not be able to pass this w'out controversy. A. 
More than 2:1 majority in both Can. Houses.  We can't challenge their 
decision. 
 
No controversy in H/Lds. P.M. 
There was
Figures.  Re-distns will give 8 (out of 10) of the extra members to Quebec. 
 trouble in '43.  Strong objn taken because Act laid down propns in 
Provinces for protection of minorities.  Can. Govt. want it rushed to 
prevent Can. objns being voiced in Westminster. A. 
 
Manitoba & Sask. are only losers: & no pressure from them. J. 
Mere accident tht. Can. didn't take over under St. of W'minister. 
 
But we are obliged to do what Can. asks.  We shd. not argue merits at all.  
Mustn't get involved in Can. politics. H.M. 
Bring it in & try to get it thro'  But if substantl trouble, may have to hold 
over until autumn. 
 
 
Agreed:  H/Lds first. 


[Exit W.W.  J.J.L. 
 
5.    Paper for Fascist Publications

| A.B.                                                               | Conditions are not normal.  These arguments are directed to a normal state    |
|--------------------------------------------------------------------|-------------------------------------------------------------------------------|
| of affairs.  People will consider this in light of concrete situat |                                                                               |
| n                                                                  |                                                                               |
| .                                                                  |                                                                               |
|                                                                    |                                                                               |
| E.B.                                                               | Will cause mis-understanding abroad.  De.nazification etc.  And yet we give   |
| paper for this. What wd. Molotov say?                              |                                                                               |
|                                                                    |                                                                               |
| R.S.C.                                                             | This is giving it to a publisher, not Fascist.                                |
|                                                                    |                                                                               |

P.M. 
On what basis do you deny supplies?  Are you going to ration paper acc. to 
type of publn?  Better proclaim the organisation illegal. A.B. 
Why haven't they published before? R.S.C. 
Because h'to they haven't got hold of a publisher who had paper.  Are you 
willing to change the law? C.E. 
Commonwealth Party.  Acland bought a T. & C.P. paper:  & applied the 
quota of paper to advocation of his pol. principles.  Govt. didn't object. 
 
This book will not attract attentn.  You will draw more attentn to it. P.M. 
If you want to stop this, you must enact legn empowering prohibtn of this 
type of book.  If E.B. thinks that essential, we must face it.  But much 
too dangerous to use this weapon. A.V.A. 
E.B's point will have to be considered in due course by electorate. 
 
 
We are spending much on rooting out Nazi-ism in G.  Shall we allow 
this book to be exported to G.? H.D. 
Cd. we have recommns for action to cover points raised by E.B. & A.V.A. 
 
 
Agreed:  Approve memo. 

              Let E.B.'s point come to L.P. Cttee. 

## 1.     Overseas Economic & Publicity Problems.

 H.M. 
Staffs fallen rather far since war - in appropriateness rather than 
 
 
quantity. 
 
 
Suggest Embassy control.  Gather from E.B.'s memo. this 
 
 
being done. 
 
E.F.C.   B. element needs watching.  No doubt M/F. will watch this. 
 
Publicity - for work of international bodies. 
 
C. Kerr's memo:  doesn't cover ques. wtr. work of Civil  
 
 
Secretariat is being continued & how - again appropriateness 
 
 
of the staff. 
 
Publicity services - Embassy understaffed.  Appreciate diffy. 
 
Final small point:  care over transport arrangements cd. be improved - 
 
 
specialist needed in N. York & perhaps W'ton. E.B. 
Began on this as soon as took office. 
 
Need for Embassy to be used.  Ministers going over w'out notice etc. 
 
 
Necessary in war - equally growth of organisations. 
 
Far too many B. officials in W'ton already.  Want it slimmed down & 
 
 
concentrated back into Embassy. 
 
Told Halifax to pull it together & see what cd. be shed.  Told C. Kerr 
 
 
to continue. 
 
F.O. cdn't know what was happening. 
 
B.I.S. was under M/I.  Issued much F.O. knew nothg. about, on matters 
 
 
of policy. 
 
 
Brought to a head by handling of W.S.C.'s speech at Fulton.  Still 
 
 
not satisfd tht. it was right to hand it out thro' official channels. 
 
Want therefore to push on with re-organisation on lines indicated in  
 
 
my memo. P.M. 
Liquidating a war situation, in wh. we had to match chaos with chaos. 
 
Top quality men but fewer of them. 
 
Mistake to concentrate too much on W'ton.  Develop Consulates. E.B. 
Have worked out with C. Kerr areas & groups settled in areas. 
 
 
c.f. Welshmen in Colorado.  Match that with experience of our  
 
 
Consuls, in postings. A.V.A. 
Glad E.B. has included his last para.  Complaints re situation - rise in 
 
 
costs. R.S.C. 
Agree - better but fewer.  Re-organn going v. well so far as we are  
 
 
concerned. 
 
 
Don't leave men too long in U.S. H.D. 
Ready to be helpful.  Prob. don't need net increase. Some hang-over 
 
 
fr. war. 
|                                                          | Ty. rep                                                                |
|----------------------------------------------------------|------------------------------------------------------------------------|
| ve                                                       |                                                                        |
| in W'ton is considerg. with C. Kerr & will submit recomm |                                                                        |
| ns                                                       |                                                                        |
|                                                          |                                                                        |
|                                                          | Agree with spread thro' Consuls & ?Labour attaches.                    |
|                                                          | Ready to buy the land & concentrate staffs.                            |
|                                                          | Mustn't have Missions working independently of Embassy.                |
|                                                          |                                                                        |
| H.M.                                                     | Need for element "down town".  Not sure all ought to be concentrated   |
|                                                          |                                                                        |
|                                                          |                                                                        |
| J.S.                                                     | If we go back to trade channels, C. Kerr plan is enough - Food Attache |
|                                                          |                                                                        |
| n                                                        |                                                                        |
|                                                          |                                                                        |
|                                                          |                                                                        |
| n                                                        |                                                                        |
|                                                          |                                                                        |
|                                                          |                                                                        |
|                                                          |                                                                        |
| P.M.                                                     | Wd. like early report from M/F. on policy of food purchase.            |
|                                                          |                                                                        |
| N.B.                                                     | H.M.'s para. 2.  Untidiness inevitable - because started pre Peace     |
|                                                          |                                                                        |
|                                                          |                                                                        |
| y                                                        |                                                                        |
| Europ. Ctt                                               |                                                                        |
| ees                                                      |                                                                        |
| have done good work.  Must now                           |                                                                        |
|                                                          |                                                                        |
|                                                          | Have tried to work for integr                                          |
| n                                                        |                                                                        |
| of Health & Educ                                         |                                                                        |
| n                                                        |                                                                        |
| organ                                                    |                                                                        |
| ns                                                       |                                                                        |
| with U.N.                                                |                                                                        |
|                                                          |                                                                        |
| ns                                                       |                                                                        |
| .                                                        |                                                                        |
|                                                          |                                                                        |
| H.M.                                                     | Too many internat                                                      |
| l                                                        |                                                                        |
| org                                                      |                                                                        |
| ns                                                       |                                                                        |
| .  Shd. get Cab. authy. before conniving at              |                                                                        |
|                                                          |                                                                        |
|                                                          |                                                                        |
| A.B.                                                     | No harm in functional organisations.                                   |
|                                                          |                                                                        |
| E.Sh.                                                    | Only create political problems.  c.f. E.C.O.                           |
|                                                          |                                                                        |
| P.M.           * Let us have memo. on internat           |                                                                        |
| l                                                        |                                                                        |
| organisations.  *                                        |                                                                        |
|                                                          |                                                                        |
| J.S.                                                     | Do we reject para. 5?                                                  |
|                                                          |                                                                        |
| E.B.                                                     | Covered by para. 4. of my memo.                                        |
|                                                          |                                                                        |
|                                                          |                                                                        |
| 2.     Palestine.                                        |                                                                        |
|                                                          |                                                                        |
|                                                          | Boundaries etc., note not taken.                                       |


## Palestine.

| G.H.                                                    | Casualties:  41 killed   52 miss.   53 injured.                       |
|---------------------------------------------------------|-----------------------------------------------------------------------|
|                                                         | Large prop                                                            |
| n                                                       |                                                                       |
| of my staff are dead, missing or wounded.  This loss of |                                                                       |
|                                                         |                                                                       |
| n                                                       |                                                                       |
| wh. can only be dealt with by drastic                   |                                                                       |
|                                                         |                                                                       |
|                                                         | Shaw has consulted Exec. Council & G.O.C.:  & offers alternatives -   |
|                                                         |                                                                       |
|                                                         |                                                                       |
|                                                         |                                                                       |
|                                                         | Prefers (b).  Further negot                                           |
| ns                                                      |                                                                       |
| with Zionists imposs.  Immed. partition on              |                                                                       |
|                                                         |                                                                       |
|                                                         |                                                                       |
|                                                         |                                                                       |
| P.M.                                                    | We have ev                                                            |
| ce                                                      |                                                                       |
| tht. earlier outrages implicated Hagana as well as      |                                                                       |
|                                                         |                                                                       |
|                                                         | No ev                                                                 |
| ce                                                      |                                                                       |
| tht. this  was work of any but extremists.              |                                                                       |
|                                                         | Our prev. action strengthened constitutionalists.  Wd. be mistake     |
|                                                         |                                                                       |
|                                                         |                                                                       |
| ce                                                      |                                                                       |
| who is respons. for this.                               |                                                                       |
|                                                         | Mistake to take sudden pol. dec                                       |
| n                                                       |                                                                       |
| when Anglo. U.S. talks going well.                      |                                                                       |
|                                                         | On (a) H.C. said we shd. be invitg. immed. war.  See this sol         |
| n                                                       |                                                                       |
|                                                         |                                                                       |
|                                                         |                                                                       |
|                                                         |                                                                       |
|                                                         | Other sugg                                                            |
| ns                                                      |                                                                       |
| - sequestrate funds or stop legal immigr                |                                                                       |
| n                                                       |                                                                       |
| .  What effect?                                         |                                                                       |
|                                                         |                                                                       |
|                                                         | My view:  press for agreemt. with U.S.  Try to announce tht. policy   |
|                                                         |                                                                       |
|                                                         |                                                                       |
| E.B.                                                    | Read telegram sent y'day to W'ton.  Asking for strong & prompt        |
|                                                         |                                                                       |
| n                                                       |                                                                       |
| by U.S. Govt.  Reply:  Byrnes is seeing President.      |                                                                       |
|                                                         |                                                                       |
| n                                                       |                                                                       |
| by U.S.                                                 |                                                                       |
|                                                         | On a) agree with P.M.  Until we have ev                               |
| ce                                                      |                                                                       |
| of responsibility, doubt                                |                                                                       |
|                                                         |                                                                       |
|                                                         | Doubt b) - afraid of imposing Partition.  Wait for conf               |
| ce                                                      |                                                                       |
| - may come                                              |                                                                       |
|                                                         |                                                                       |
|                                                         |                                                                       |
| Brook.                                                  | Position of Anglo-U.S. talks.                                         |
|                                                         |                                                                       |
| H.M.                                                    | Slackness in security arrangemts. in Jerusalem.  Govt. shd. report on |
|                                                         |                                                                       |
|                                                         | Because of loss of civil staff, mil. will have to take charge.        |
|                                                         | Against (b).                                                          |
|                                                         | Shd. go ahead with W. Paper.  3 p.m. or 4 p.m. Wed.                   |
|                                                         |                                                                       |
| E.B.                                                    | Timing.  If we got agreement with U.S. this week.  Cd. meet Byrnes    |
|                                                         |                                                                       |
|                                                         |                                                                       |
|                              |                                                                            | summary of plan to Jews & Arabs before announcing it.            |
|------------------------------|----------------------------------------------------------------------------|------------------------------------------------------------------|
|                              |                                                                            |                                                                  |
| A.V.A.                       | Need for firm statement to-day.  Diff. to be rushed over long-term         |                                                                  |
|                              |                                                                            | policy.  But if we seem to be giving way because of violence.    |
|                              |                                                                            |                                                                  |
| P.M.                         | Not proposing to be diverted by violence from what we regard as right      |                                                                  |
|                              |                                                                            | policy - & wd. say so to-day.                                    |
|                              |                                                                            |                                                                  |
| J.                           | Right to say that.  But on immediate action.  W.P. will show leaders of    |                                                                  |
|                              |                                                                            | Agency came to an agreemt. with dissident organ                  |
| ns                           |                                                                            |                                                                  |
| .  This outrage              |                                                                            |                                                                  |
|                              |                                                                            | is prob. the work of one of them.  No peace in Pal. so long as   |
|                              |                                                                            | these criminals are about.  Isn't this a chance to get Agency to |
|                              |                                                                            | stamp out these organisations.                                   |
|                              |                                                                            |                                                                  |
| A.B.                         | Unwisdom now of publishing ev                                              |                                                                  |
| ce                           |                                                                            |                                                                  |
| associatg. Agency with these |                                                                            |                                                                  |
|                              |                                                                            | organ                                                            |
| ns                           |                                                                            |                                                                  |
| - timing.                    |                                                                            |                                                                  |
|                              |                                                                            |                                                                  |
| P.M.                         | I said there was a conn                                                    |                                                                  |
| n                            |                                                                            |                                                                  |
| .  Shall be faced with it.   |                                                                            |                                                                  |
|                              |                                                                            |                                                                  |
| A.V.A.                       | List of incidents published in Times to-day.  Fatal to delay publ          |                                                                  |
| n                            |                                                                            |                                                                  |
| .                            |                                                                            |                                                                  |
|                              |                                                                            |                                                                  |
| H.M.                         | Also undesirable to publish this ev                                        |                                                                  |
| ce                           |                                                                            |                                                                  |
| & policy statement           |                                                                            |                                                                  |
|                              |                                                                            | simultaneously.                                                  |
|                              | The leaders have also a share of responsibility - for flirting with        |                                                                  |
|                              |                                                                            | violence.                                                        |
|                              |                                                                            |                                                                  |
| E.Sh.                        | The long-term policy won't satisfy the dissidents.                         |                                                                  |
|                              | Remember too tht. there is a background - wh. influences the leaders.      |                                                                  |
|                              | Ready to try the Provincial scheme.  Say we propose it.  Positive          |                                                                  |
|                              |                                                                            | policy is only solution - & early production of it.              |
|                              |                                                                            |                                                                  |
|                              |                                                                            |                                                                  |
|                              |                                                                            |                                                                  |
|                              |                                                                            |                                                                  |
|                              |                                                                            |                                                                  |
|                              |                                                                            |                                                                  |
| A.B.                         | Consider psychology.  Can Agency co-operate w'out a long-term              |                                                                  |
|                              |                                                                            | policy.                                                          |
|                              |                                                                            |                                                                  |
| P.M.                         | Won't accept that unreasonable attitude.  Trying for a short-cut by        |                                                                  |
|                              |                                                                            | terrorism.                                                       |
|                              |                                                                            |                                                                  |
|                              |                                                                            |                                                                  |
| G.H.                         | Statement to-day.  Put forward draft.                                      |                                                                  |
|                              |                                                                            |                                                                  |
| C.A.S.                       | In reply to ques. - find it diff. to believe tht. w'spread search for arms |                                                                  |
|                              |                                                                            | wd. provoke war.                                                 |
|                              |                                                                            | Told so on last occasion - but casualties only 3.                |
|                              |                                                                            |                                                                  |
|                              |                                                                            |                                                                  |

P.M. 
Insecurity of H.Q. Jerusalem.  Shd. be a report on that. H.M. 
Shd. mil. be given a chance to think again re a) - in view of  
 
 
C.A.S. statement. 


Agreed. 
 
1. 
Palestine. P.M. 
Publication - against W. Paper.  Prefer announcement in a debate - 
 
 
if agreement with U.S. Govt. reached. E.B. 
Important to tell U.S. Govt. thro' State Dpt. that we accept this. 
 
Stress fact that this is basis for negotiations. 
2. 
Parliament. 
 
H.M. 
Business for the week. 

 E.B. 
Mission to G.? W.W. 
No.  Estimates Cttee, whose report will be publd at 11 a.m. to-day. 
 

E.B. 
Knew nothg. of this.  Dangerous - Peace Confce opening etc. H.M. 
Oppn chose the subject.  Can't help that.  F.O., Duchy & W.O. are all 
 
 
concerned. H.D. 
Estimates Cttee are concerned only with economy w'in limits of  
 
 
policy - debarred from considering policy.  Their rpt. need not  
 
 
be embarrassing. E.B. 
Told they will traverse coal. 
 
A.B. 
Shdn't E.B. be absent, to avoid policy ques's. H.M. 
Respect to H/C.  They cd. properly refer to treatg. G. as an economic 
 
 
whole. 

 A.V.A. 
V. dangerous if H/C. allowed to range widely over that at present. 

 

W.W. 
Last debate Opposn asked wtr. too much money wasn't being spent. 

 
 
That's what they will talk on.  H.D. shdn't be there. 
 

E.Sh. 
Ask Opposn what they intend.  But can't see how policy can be  

 
 
divorced from Adminn. P.M. 
In view of Paris they shd. be asked not to debate this. 

 W.W. 
They say they are only on cost of adminn. 

 P.M. 
Can't stop Private Members fr. ranging wider. 

 
| E.B.                                             | My discussion with U.S. will be made more diff. by public discussion.    |
|--------------------------------------------------|--------------------------------------------------------------------------|
|                                                  |                                                                          |
| P.M.                                             | Ask Oppos                                                                |
| n                                                |                                                                          |
| to lay off.  If they won't, try to limit debate. |                                                                          |
|                                                  |                                                                          |
|                                                  |                                                                          |
|                                                  |                                                                          |

 
Palestine. 

 P.M. 
Will it be mainly on current situation - if so, C.O. E.B. 
If U.S. gives quick approval, cd. we separate the debate.  First day 
 
 
on current ques:  second on long-term.  Wd. like to keep them 
 
 
separate. 
 
Invitns to Arab States have gone out. H.M. 
Difficult.  Policy statement shd. be at beginning.  Spkers on first 
 
 
day will be hamstrung otherwise. P.M. 
Yes:  for complts. will be that situation was due to past.  If you get 
 
 
debate on to long-term little recriminn re past. A. 
Also  provisionally fixed H/Lds. debate for Wed. G.H. 
Agree:  statement vice
 W. Paper. 
 
[Enter  N.B. 
 
May avoid discn if this made at outset. 
 
Wd. prefer debate to be mainly on policy - forget the past. A.B. 
Separately - & positive side first. 
 
Worried at suggn against putting it out as W. Paper. P.M. 
Want identic. statements here and in U.S.  Better than W. Paper  
 
 
here only. 


Agreed:  statement on policy on first day. H.M. 
Parly. Delegn to Denmark & Scandinavia - Food & Agric. Group. 
 
 
M/Ag. cd. authorise if he certifies in publ. interest.  But if we  
 
 
start allowg. domestic groups to go abroad, where does it end? T.W. 
I said we had official delegns there in Sept.  Se. offls. also going. 
 
 
All I did was to offer facilities for rpts etc. P.M. 
Must stop this.                 Agreed.         M/Ag. to decline. 
1.  (contd)  Palestine. Brook. 
Explained scheme.  Was thanked. E.B. 
Jews have come round to Partition.  Believe this scheme wd. work. 
 
 
Arabs wd. oppose Partition.  They might accept this;  and grow 
|                                                                                       |                                                                        | twds. Partition.                                                |
|---------------------------------------------------------------------------------------|------------------------------------------------------------------------|-----------------------------------------------------------------|
|                                                                                       | Collective trusteeship frightens me - cdn't keep the troops there.     |                                                                 |
|                                                                                       | Alarmed at going to Assembly - save prs. on report basis.  Want to     |                                                                 |
|                                                                                       |                                                                        | reserve my position on that.  Ques. of tactics.  Risk of Russia |
|                                                                                       |                                                                        | getting a foot in.                                              |
|                                                                                       |                                                                        |                                                                 |
| E.Sh.                                                                                 | 1)  Excellent basis:  press on with it.   2)  Care in bringing this to |                                                                 |
|                                                                                       |                                                                        | U.N. - for fear of R. diff                                      |
| ies                                                                                   |                                                                        |                                                                 |
| causing delays.  Speed is of the                                                      |                                                                        |                                                                 |
|                                                                                       |                                                                        | essence.   3)  If we rely on this as basis, we shdn't weaken    |
|                                                                                       |                                                                        | on it because of oppos                                          |
| n                                                                                     |                                                                        |                                                                 |
| of A. or J.  There may be greater opp                                                 |                                                                        |                                                                 |
| n                                                                                     |                                                                        |                                                                 |
|                                                                                       |                                                                        | fr. A.  If we weaken on a/c of that even greater resentment     |
|                                                                                       |                                                                        | of J.                                                           |
|                                                                                       |                                                                        |                                                                 |
| H.D.                                                                                  | Favour this scheme.  Financially v. satisf.                            |                                                                 |
|                                                                                       | Apart fr. troops our fin. commitmt. likely to be limited to recurrent  |                                                                 |
|                                                                                       |                                                                        | Arab deficit.  All the capital schemes otherwise catered for.   |
|                                                                                       |                                                                        | With Intern. Bank & Jordan Valley Scheme it shd. become         |
|                                                                                       |                                                                        | self-supporting area.                                           |
|                                                                                       |                                                                        |                                                                 |
| H.M.                                                                                  | A good scheme.                                                         |                                                                 |
|                                                                                       |                                                                        |                                                                 |
| E.B.             x/ Para. 16.  Look again at ques. of widening Council to cover Jew & |                                                                        |                                                                 |
|                                                                                       |                                                                        | Moslem places as well. And communicate with U.S.                |
|                                                                                       |                                                                        |                                                                 |
| P.M.                                                                                  | Prepare draft statement.                                               |                                                                 |
|                                                                                       |                                                                        |                                                                 |
| E.B.                                                                                  | Say - we accept in principle:  we must make statement next week:       |                                                                 |
|                                                                                       |                                                                        | want it identical:  preparing draft & will send it at end/week. |
|                                                                                       |                                                                        | F.O. to State Dept.                                             |
|                                                                                       |                                                                        |                                                                 |
| H.M.                                                                                  | Statement at outset of Debate.  P.M. to make it.                       |                                                                 |
|                                                                                       | G.H. to open second day & E.B. to wind up.                             |                                                                 |
|                                                                                       |                                                                        | After discussion:  agreed  P.M. to open:  2                     |
| nd                                                                                    |                                                                        |                                                                 |
| day E.B. to open &                                                                    |                                                                        |                                                                 |
|                                                                                       |                                                                        |                                                                 |
|                                                                                       |                                                                        |                                                                 |
| E.B.                                                                                  | Send report to Doms. & Col. for offers under 6(c).  Get them in before |                                                                 |
|                                                                                       |                                                                        | Debate.                                                         |
|                                                                                       |                                                                        |                                                                 |
| G.H.                                                                                  | No room in Colonies - been thro' it all.  Tropical countries.          |                                                                 |
|                                                                                       |                                                                        |                                                                 |
| R.S.C.                                                                                | Communicate substance to J. & A. before announcement.      Agreed.     |                                                                 |
|                                                                                       |                                                                        |                                                                 |
|                                                                                       |                                                                        |                                                                 |
|                                                                                       | Palestine - Immediate Situation.                                       |                                                                 |
|                                                                                       |                                                                        |                                                                 |
| P.M.                                                                                  | Read comm                                                              |                                                                 |
| n                                                                                     |                                                                        |                                                                 |
| from Arab Higher Cttee.                                                               |                                                                        |                                                                 |
|                                                                                       |                                                                        |                                                                 |
| G.H.                                                                                  | Total casualties - as in Press. incldg. 50-60 Arabs.                   |                                                                 |
|                                                                                       | Irgun have admitted responsibility.  Known tht. perpetrators came      |                                                                 |
|                                                                                       |                                                                        | from Tel-a-viv.  H.C. considerg. possibility of search for      |
|                                              |                                                                        | terrorists in Tel-a-viv particularly.  Wd. take 2 Divns.  Politically    |
|----------------------------------------------|------------------------------------------------------------------------|--------------------------------------------------------------------------|
|                                              |                                                                        | wider than search for Hagana arms.  2 wks. prep                          |
| ns                                           |                                                                        |                                                                          |
| .  Examining                                 |                                                                        |                                                                          |
|                                              | plans.                                                                 |                                                                          |
|                                              |                                                                        | Need for striking action to prevent A. takg. law into own hands          |
|                                              |                                                                        | & bolter B. morale.  Suggest a) stopping immigr                          |
| n                                            |                                                                        |                                                                          |
| .                                            |                                                                        |                                                                          |
|                                              |                                                                        | b) sequestrating funds.                                                  |
|                                              |                                                                        | On b) impos                                                              |
| n                                            |                                                                        |                                                                          |
| of large fine.  Read remainder of telegram.  |                                                                        |                                                                          |
|                                              |                                                                        |                                                                          |
| P.M.                                         | a)  Searches for terrorists in Tel-a-viv etc., is directed to outrage. |                                                                          |
|                                              | b)  Sequestr                                                           |                                                                          |
| n                                            |                                                                        |                                                                          |
| of funds is futile because it hits all Jews. |                                                                        |                                                                          |
|                                              | c)  Immigration cd. be considered - tho' U.S. views.                   |                                                                          |
|                                              |                                                                        |                                                                          |
|                                              |                                                                        |                                                                          |
|                                              |                                                                        |                                                                          |
|                                              | Recommend a) and not general search for Hagana arms.                   |                                                                          |
|                                              | Reject b)                     Agreed.                                  |                                                                          |
|                                              |                                                                        |                                                                          |
| C.I.G.S.                                     | Enough troops in M/E. so long as J. alone are resisting.               |                                                                          |
|                                              | There are known                                                        |                                                                          |
| Arms dumps.  We wd. like to seize them & act |                                                                        |                                                                          |
|                                              |                                                                        | v. terrorists.  Ample troops in Pal. for that.  Wd. not involve          |
|                                              |                                                                        | w'spread searches.                                                       |
|                                              |                                                                        |                                                                          |
| P.M.                                         | Action v. Irgun:  not v. Hagana.                                       |                                                                          |
|                                              |                                                                        |                                                                          |
| J.                                           | Collect known arms dumps also.                                         |                                                                          |
|                                              |                                                                        |                                                                          |
| A.B.                                         | Don't upset Jews when on eve of settlement.                            |                                                                          |
|                                              |                                                                        | Agreed:  immediate action to root out Irgun & round up known             |
|                                              |                                                                        |                                                                          |
|                                              |                                                                        |                                                                          |
| n                                            |                                                                        |                                                                          |
| of striking at Hagana.                       |                                                                        |                                                                          |
|                                              |                                                                        |                                                                          |
| A.V.A.                                       | Need to screen immigrants - for security reasons.                      |                                                                          |
|                                              |                                                                        |                                                                          |
| G.H.                                         | Practical difficulty.                                                  |                                                                          |
|                                              |                                                                        | Noted:  action won't start for a week i.e. after the debate.             |
|                                              |                                                                        |                                                                          |
| R.S.C.                                       | Cd. you outlaw members of Irgun?                                       | }  To get                                                                |
|                                              |                                                                        |                                                                          |
| P.M.                                         | Put that to H. Commr.  Stern gang to be included. }                    |                                                                          |
|                                              |                                                                        |                                                                          |
| E.Sh.                                        | If this encounters wholesale resistance, is it war?                    |                                                                          |
|                                              |                                                                        |                                                                          |
| C.I.G.S.                                     | Wd. be done w'out                                                      |                                                                          |
| large-scale op                               |                                                                        |                                                                          |
| ns                                           |                                                                        |                                                                          |
| all over Palestine.  Only "war" if           |                                                                        |                                                                          |
|                                              |                                                                        | they came out to battle.                                                 |
|                                              |                                                                        |                                                                          |

## 3. Civil Aviation Bill.

 A. 
Divn. will be forced to-day - on posn of subordinate Scottish company 
 
 
of B.O.A.C. 
|                                                | S. of S. Scotland thinks no obj                                            |
|------------------------------------------------|----------------------------------------------------------------------------|
| n                                              |                                                                            |
| to it.                                         |                                                                            |
|                                                | The reduced proposal will be pressed.  My instinct is not to divide v. it; |
|                                                |                                                                            |
|                                                |                                                                            |
| A.G.                                           | Doesn't affect principle of Bill - nd. help to conciliate Sc. opinion -    |
|                                                |                                                                            |
|                                                |                                                                            |
| R.S.C.                                         | Will it be internal to Scotland only?                                      |
|                                                |                                                                            |
| J.                                             | Internal & such other rights as may be given fr. time to time by           |
|                                                |                                                                            |
|                                                |                                                                            |
| H.M.                                           | Was considered in H/C.  Sc. Divn. of BOAC., with Sr. manager &             |
|                                                |                                                                            |
|                                                |                                                                            |
|                                                | That was enough, surely.  Of all the services on wh. to admit domestic     |
|                                                |                                                                            |
|                                                | Bad to give way to H/Lds. on this.                                         |
|                                                | Concede the principle on an economic issue, & where do you get to -        |
|                                                |                                                                            |
|                                                |                                                                            |
| J.                                             | The Minister is v. much opposed to it - as is his Chairman.                |
|                                                |                                                                            |
|                                                |                                                                            |
|                                                |                                                                            |
| 4.     Germany:  Results of Paris Discussions. |                                                                            |

| E.B.                                                    | Considered pos                                                        |
|---------------------------------------------------------|-----------------------------------------------------------------------|
| n                                                       |                                                                       |
| as result of Paris mtg.  Not practicable for us to make |                                                                       |
|                                                         |                                                                       |
|                                                         |                                                                       |
|                                                         |                                                                       |
|                                                         |                                                                       |
|                                                         | Cd. draw timber & other useful supplies from U.S. Zone.               |
|                                                         | But means tht. U.K. & U.S. will be forced into independent revision   |
|                                                         |                                                                       |
|                                                         | Danger of dividing  Europe in 2.   But R. fear of efficient U.K.-U.S. |
|                                                         |                                                                       |
|                                                         |                                                                       |
|                                                         | Scheme won't become operative until Fr. & R. have seen it & said      |
|                                                         |                                                                       |
|                                                         | Seek approval therefore for Recomm                                    |
| ns                                                      |                                                                       |
| 1-3.                                                    |                                                                       |
|                                                         | Re recomm                                                             |
| n                                                       |                                                                       |
| 4.  Are publishing our record in B. zone which, on the  |                                                                       |
|                                                         |                                                                       |
| ce                                                      |                                                                       |
| tht. R. are makg.                                       |                                                                       |
|                                                         |                                                                       |
|                                                         | Therefore recomm                                                      |
| n                                                       |                                                                       |
| 4 shd. be put into oper                                 |                                                                       |
| n                                                       |                                                                       |
| - at suitable moment,                                   |                                                                       |
|                                                         |                                                                       |
| R.S.C.                                                  | Care in using App. C. - because of compromising sources.              |

 P.M. 
Para. 2 of  J.I.C. covering note. 
 

| E.B.                                | Don't propose to publish App. C. as it stands.                      |
|-------------------------------------|---------------------------------------------------------------------|
|                                     |                                                                     |
| A.V.A.                              | Does this plan involve abandoning idea of socialising industries in |
|                                     |                                                                     |
|                                     |                                                                     |
| E.B.                                | We will go on with that - & U.S. won't interfere.                   |
|                                     |                                                                     |
| E.Sh.                               | Who will conduct negot                                              |
| ns                                  |                                                                     |
| with U.S.?   Our people in G. don't |                                                                     |
|                                     |                                                                     |
|                                     |                                                                     |
| E.B.                                | Experts (economic) fr. U.K. must go out to advise Control Comm      |
| n                                   |                                                                     |
| .                                   |                                                                     |
|                                     |                                                                     |
| H.D.                                | Want Ty. Rep                                                        |
| ves                                 |                                                                     |
| there.                              |                                                                     |
|                                     |                                                                     |
|                                     |                                                                     |
|                                     |                                                                     |

 
5.     Marriages between B. Servicemen and Foreign Women.

 C.I.G.S. 
When we lifted non-fraternisation, I suggd ban on marriages shd. hold. 
 
G. women, expectg. trouble in winter, are trying to marry B. soldiers in 
 
 
order to get B. nationty. 
 
I wd. prefer tht. soldier shd. not be allowed to marry until he gets 
 
 
home. J.J.L. 
Pregnancy cases.  They get permn. C.I.G.S. 
V. few. C.E. 
He can marry now
 when he gets home.  That involves no change. 
 
We were told permn is given in pregnancy cases.  That is an easy way 
 
 
to dodge the ban. 
 
At Party mtg. suggd affiliation procdgs. in G. shd. be made binding on 
 
 
man when he comes home.  Many cases here of girls who can't 
 
 
enforce v. U.S. and Can. soldiers who have left. 
 
If we do maintain the ban, we shd. have no pregnancy let-out. J.J.L. 
Marriage if contracted is valid - in spite of the ban. 
 
Once that is generally known, you cdn't go on imposing discipl. 
 
 
penalties. P.M. 
Can it be effective?  You encourage clandestine marriages:  you put a 
 
 
premium on "anticipn" of marriage. J.B.H. 
Also - no control over (increasing no. of) civilians. J. 
If you exempt for pregnancy, it's an invitation to immorality. C.I.G.S. 
If Cab. decide this way, we can urge men to wait until after a leave 
 
 
home. 
|                            |                                                                      |                                                                 | (in reply to A.B.)                             |
|----------------------------|----------------------------------------------------------------------|-----------------------------------------------------------------|------------------------------------------------|
|                            |                                                                      |                                                                 | Memo. approved:  subject to admin              |
| ve                         |                                                                      |                                                                 |                                                |
| safeguards.                |                                                                      |                                                                 |                                                |
|                            |                                                                      |                                                                 |                                                |
|                            |                                                                      |                                                                 |                                                |
|                            |                                                                      |                                                                 |                                                |
| 6.     Rhodesian Railways. |                                                                      |                                                                 |                                                |
|                            |                                                                      |                                                                 |                                                |
| A.                         | As in memo.                                                          |                                                                 |                                                |
|                            | Colour bar - in S. Rhodesia, tho' not in N. Rhodesia or              |                                                                 |                                                |
|                            |                                                                      | Bechuanaland.  Due v. largely  to the local Labour Party.       |                                                |
|                            | Hopeless to expect the 3 Govts. to make a sensible arrangement.  But |                                                                 |                                                |
|                            | co. are entitled to know where they are.  We recommend that co.      |                                                                 |                                                |
|                            |                                                                      | be allowed to go ahead:  & I send out to S. Rhodesian Govt.     |                                                |
|                            |                                                                      | statement that we aren't going to nationalise for 10 years.     |                                                |
|                            |                                                                      | Reason:  nat                                                    |                                                |
| n                          |                                                                      |                                                                 |                                                |
| is not practicable.        |                                                                      |                                                                 |                                                |
|                            |                                                                      |                                                                 |                                                |
| G.H.                       | I support this.                                                      |                                                                 |                                                |
|                            |                                                                      |                                                                 |                                                |
| H.D.                       | My officials concurred.  I find it diff., however, to agree to this  |                                                                 |                                                |
|                            |                                                                      | anti-Socialist declaration being issued on eve of nationalising |                                                |
|                            |                                                                      | own rlways.                                                     |                                                |
|                            | Alternatives:  a)  cd. S. Rhodesian section of rlways. be worked by  |                                                                 |                                                |
|                            |                                                                      |                                                                 | nationalised S. African rlways.                |
|                            |                                                                      |                                                                 |                                                |
| R.S.C.                     | For £25 m., is 10 years a long enough period of security.            |                                                                 |                                                |
|                            |                                                                      |                                                                 |                                                |
| A.                         | Driven to this unwelcome concl                                       |                                                                 |                                                |
| n                          |                                                                      |                                                                 |                                                |
| by the facts.              |                                                                      |                                                                 |                                                |
|                            | S. Rhod. Govt. press us for proposals.  Don't make any themselves.   |                                                                 |                                                |
|                            |                                                                      |                                                                 |                                                |
| P.M.                       | They shd. put up a proposal.                                         |                                                                 |                                                |
|                            |                                                                      |                                                                 | Agreed:  C/Exch. to consult with D.O. and C.O. |
|                            |                                                                      |                                                                 |                                                |
|                            |                                                                      |                                                                 |                                                |
|                            |                                                                      |                                                                 |                                                |

7.     Timber for Housing. 

 A.B. 
Facts as in memo. 
 
Need for greater supplies from Germany.  Espec. as it can be secured  
 
all year round whereas R. ports wd. be closed. P.M. 
Had full discn in O.R.C. on this.  Can't go over all of it again. 
 
 
But can J.B.H. report further? J.B.H. 
Been over to see Lenanton.  Food & man-power are bottle-necks.  
 
 
For latter we must have skilled supervisors e.g. from Italy, 
 
 
Newfoundland etc. 
 
Not satisfied tht. Lenanton group has bn. sufficiently active. P.M. 
Told before tht. Lenanton was v. good. 
 

E.Sh. 
He is a good man.  Get him over here before O.R.C. & let him speak 
 
 
for himself. P.M. 
All can't be well if so obvious a thing as supervisory labour has been 
 
 
overlooked. J.B.H. 
Lack of liaison is prob. the trouble.  Lenanton given a free hand to cut 
 
 
the red tape:  & now he isn't getting their support when he  
 
 
needs it. 
 
No bottle-neck at Hamburg now. 
 
Lenanton acting directly under B/Trade.  Failure of liaison. 
 
 
Agreed:  Get Lenanton & Head of Econ. Mission over to U.K. 
 
R.S.C. 
Anyway will be acute shortage of timber, this year and next. 
 
25.000 stand fr. Russia by autumn, I hope:  then no more until June. 
 
Might get 40.000 st. fr. Finland in return for iron & steel. 
 
Importance of timber for exports:  crating.  Every alternative to 
 
 
use of timber shd. be exploited. 
 
Only ultimate solution = Russia. E.Sh. 
Timber for Sweden - v. coal wh. is now going to France. N.B. 
20.000 (or 10.000 - JBH) available in Austria. J.W. 
Tractors:  use Army tractors already in Germany. 

## 1.     Repatriation Of German Prisoners.

 P.M. 
Memorial.  Need for some scheme to be announced. 
 
Memo. by M/Ag. disturbing.  Can't rely on p.o.w. labour up 
 
 
to '49.  Must find other means. N.             a) Final date.  Unnecessary to announce once if we adopt age & 
 
length of captivity release basis.  Want, however, to know 
 
 
how long we rely on p.o.w. labour. 
 
P.M. 
Shortage of man-power will appear in G. as soon as coal  
 
 
available. 
 
Need for scheme under wh. majority will see their release date - 
 
 
not a final date by which all go back. N. 
Age & l. of service wd. be general & subject to priority for whites 
 
 
& greys & also special skills needed in Germany. P.M.          b) Phasing.  Are Austr. & Can. p.o.w. their own affair? N. 
There is Imperial Co-ordinatg. Cttee. 
 
P.o.w. in M/E. are wanted for creation of camps in Canal Zone - 
 
 
until June 1947 all save whites (2.000) will be wanted. P.M. 
Demands in Annex to C.P.325. - show no diminution.  Why not? 
 
E.g. M/Works. G.T. 
18.200 on housing.  7.900 on bldg. materials indies.  
 
 
2.000 c. engineering.  6.000 directly empld on work for other 
 
 
Ministries. 
 
Increased requirements all round for 1947. A.B. 
Told by Steering Cttee we must accept short-fall of 100.000 in next 
 
 
year on housing. P.M. 
Air Miny? G.de.F. 
To relieve 15.000 fr. R.A.F. - on maintenance units.  Takes a/c. of 
 
 
nos. guarding them.  2 prs. = 1 man. 
 
This is not work which cd. be left undone. A.B. 
No. of guards? N. 
In Army 14.000. 
 
 
P.M. 
Dpts. must stop basing plans on assumptn they will have p.o.w. labour.
 
| B/T.                                             | We are ready to w'draw our demand for timber.                           |
|--------------------------------------------------|-------------------------------------------------------------------------|
|                                                  | But wd. some Germans be ready to stay on, freely?                       |
|                                                  |                                                                         |
| C.E.                                             | Take care of that.                                                      |
|                                                  |                                                                         |
| P.M.                                             | 160.000 Poles, who shd. work, shd. be offset - at least as many p.o.w.  |
|                                                  | cd. be released.                                                        |
|                                                  |                                                                         |
| E.Sh.                                            | T.U. obj                                                                |
| ns                                               |                                                                         |
| .  N.U.M. won't agree even to 200 Polish miners. |                                                                         |
|                                                  | Ready to forego my 2.500 p.o.w.                                         |
|                                                  |                                                                         |
| Barnes.                                          | Cd. reduce to 5.500 & cd. take some Poles instead.                      |
|                                                  |                                                                         |
| E.Summ.                                          | 1.500 on non-seasonal cd. be spared.  But 3/4.000 seasonal on beet,     |
|                                                  | milk processing & refining.  Wd. like to substitute Poles, but          |
|                                                  |                                                                         |
|                                                  |                                                                         |
| E.W.                                             | T.U.'s might face realities when p.o.w. go.                             |
|                                                  |                                                                         |
| M/Ag.                                            | 25% of regular labour force are now p.o.w.  Red                         |
| n                                                |                                                                         |
| must affect prod                                 |                                                                         |
| n                                                |                                                                         |
| .                                                |                                                                         |
|                                                  |                                                                         |
| ns                                               |                                                                         |
| & therefore under oblig                          |                                                                         |
| n                                                |                                                                         |
| to provide                                       |                                                                         |
|                                                  |                                                                         |
|                                                  | The 1948 pos                                                            |
| n                                                |                                                                         |
| is of course less certain.                       |                                                                         |
|                                                  |                                                                         |
| P.M.                                             | M/Ag. must face labour problem after 47.  Can't rely on p.o.w. labour.  |
|                                                  |                                                                         |
| n                                                |                                                                         |
| in p.o.w. labour.  Must                          |                                                                         |
|                                                  |                                                                         |
|                                                  |                                                                         |
|                                                  |                                                                         |
| N.                                               | 14.000 B. troops & 38.000 p.o.w. engaged in guarding & servicing        |
|                                                  |                                                                         |
|                                                  |                                                                         |
| N.Ed                                             |                                                                         |
| wds                                              |                                                                         |
|                                                  | 326.000 p.o.w. working out of 398.000.                                  |
|                                                  |                                                                         |
| P.M.                                             | ( c )   Can you be so precise?                                          |
|                                                  |                                                                         |
| N.                                               | Whites shd. go first. - groups w'in them.  22.000 of them.      Agreed. |
|                                                  | 150.000 greys. already screened.                                        |
|                                                  |                                                                         |
| H.D.                                             | After "whites", utility shd. be criterion. - usefulness in Germany.     |
|                                                  |                                                                         |
| P.M.                                             | Length of captivity not service.                                        |
|                                                  |                                                                         |
| N.Ed.                                            | Care that they don't get out earlier than ours.                         |
|                                                  | Must, however, be some order in selection.                              |
|                                                  |                                                                         |
| P.M.                                             | Detailed scheme to be worked out  Some groupings to be fixed.           |
|                                                  |                                                                         |
|                                                  | Rate also to be fixed.                                                  |
|                                                  |                                                                         |
|                                           | Barnes.                                                               | 15.000 a month cd. be handled w'out inconvenience to shipping.    |
|-------------------------------------------|-----------------------------------------------------------------------|-------------------------------------------------------------------|
|                                           |                                                                       | That wd. clear whites & greys in 12 months.  Agreed:  until       |
|                                           |                                                                       | further notice.                                                   |
|                                           |                                                                       |                                                                   |
| N.Ed.                                     | Must have announcemt. giving a man some date - to encourage them      |                                                                   |
|                                           |                                                                       | to work.                                                          |
|                                           |                                                                       |                                                                   |
| P.M.                                      | V. well - but don't promise too far ahead.  cf. diff                  |                                                                   |
| ies                                       |                                                                       |                                                                   |
| over demobil                              |                                                                       |                                                                   |
| n                                         |                                                                       |                                                                   |
| .                                         |                                                                       |                                                                   |
|                                           |                                                                       |                                                                   |
| A.B.                                      | Repercussions on demob. scheme.                                       |                                                                   |
|                                           |                                                                       |                                                                   |
| N.                                        | cf. what E.B. says.  I must have some dates if we are to get full     |                                                                   |
|                                           |                                                                       | effect.                                                           |
|                                           |                                                                       |                                                                   |
| P.M.                                      | But no terminal date by which all will have gone.                     |                                                                   |
|                                           | Release of p.o.w. shd. go pari passu with return of our men fr.       |                                                                   |
|                                           |                                                                       | overseas.                                                         |
|                                           |                                                                       |                                                                   |
| O.S.                                      | Care of comparison with R. release of 200.000.                        |                                                                   |
|                                           |                                                                       |                                                                   |
| P.M.                                      | Put it in %ages.  R. have v. many more.                               |                                                                   |
|                                           |                                                                       | Agreed:  move the whites, if possible, by G. elections.  At least |
|                                           |                                                                       |                                                                   |
|                                           |                                                                       |                                                                   |
| P.M.                                      | (e)  Incentives to work.  Do they want to return?                     |                                                                   |
|                                           |                                                                       |                                                                   |
| N.                                        | Most of them do.  Some might stay as volunteers.                      |                                                                   |
|                                           |                                                                       |                                                                   |
| E.W.                                      | Are our p.o.w. residents of B. zone?                                  |                                                                   |
|                                           |                                                                       |                                                                   |
| N.                                        | Collectg. that inform                                                 |                                                                   |
| n                                         |                                                                       |                                                                   |
| now.  Not to be assumed all zones will be |                                                                       |                                                                   |
|                                           |                                                                       | anxious to receive.                                               |
|                                           |                                                                       |                                                                   |
| P.M.                                      | Incentives as under (e).                                              |                                                                   |
|                                           |                                                                       |                                                                   |
| N.                                        | Refer to Cttee?  Consider increase in pay (now 1½ d. skilled and ¾ d. |                                                                   |
|                                           |                                                                       | unskilled p. hour) & freedom to send some home.  Or get           |
|                                           |                                                                       | deferred pay.                                                     |
|                                           |                                                                       | Agreed                                                            |
| :  L.P.S. to superintend                  |                                                                       |                                                                   |
|                                           |                                                                       |                                                                   |
| n                                         |                                                                       |                                                                   |
|                                           |                                                                       |                                                                   |
|                                           |                                                                       |                                                                   |


       U.K. holdings only pro tem. 

       Whites to go out at once. 

       P.o.w. to go from Gib. 

       Incentives to be considered by Official Cttee on  

            Emplt. of  p.o.w. 

       Doms. to be informed. 

       The 215.000 odd remaining in 1947 be empld mainly 

            in agric. & housing. 


[Exit.  Barnes, de Freitas, Summerskill, N. Edwards. 

          Collick.  Tomlinson. 

Enter. Sholto Douglas.] 

## 2.     Coal Exports From Germany.

 A.G. 
As in memo.  French thinking of reductions, but not enough. O.S. 
Read Tel. 674 from E.B. 
 
If U.S. produce the coal, French grievance will be met. 
 
If not, we shd. still cut exports by 350.000 t. in October & hope for 
 
 
improvements in posn for Nov. & Dec. 
 
S.D. 
Genl. posn.  Shortage of coal:  effects on rlways, steel, bldg. materials 
 
 
(delaying housing repairs)  exports (with result of continuing 
 
 
B. subsidy). 
 
Econ. distress = breeding ground for Communist agitation. 
 
3.5 m. to w. Zones now:  2 m. to B. Zone.  Leavg. 1.5 m. for export 
 
 
of wh. 950.000 available for E.C.O. countries.  Prodn rising  
 
 
slowly but no hope of big increase w'out more steel for mining  
 
 
machinery & miners houses. 
 
Cttee of experts at work for a month but can't agree.  Even when we 
 
 
get rpt. will have to go to C.C. & C.F.M.  Must this week allocate 
 
 
for Oct. & shd. do so for Oct/Dec. 
 
Suggest, as compromise, 3.8 to w. Zones for Oct. involving cut of 
 
 
350.000 to E.C.O. countries. 
 
Believe  U.S. will support us in Berlin.  Not sure they will go to  
 
 
350.000. 
 
 
Even French are expectg. some cut. 
 
Want therefore authy to announce intentn to cut exports by 350.000 
 
 
tons. 


Agreed:  Proceed as E.B. recommends. 


[Exit  S. Douglas. 

Belcher. 
 

## 3.     India:  Foreign Relations.

 H.D. 
No estimate of cost.  Past figures were rather high.  May be £250.000 
 
 
for Bushire alone.  Ask that cost be considered. P.L. 
£6.000 ……….. total £189.000 annual charge. O.S. 
The capital expendre at Bushire is quite independent of Indian  
 
 
developments. 
 
 
Was in order to remove from Persia. H.D. 
Hope Katmandu Mission will result in contd recruitment of Ghurkas. O.S. 
If it doesn't, it needn't be maintd. 

 
H.D.          x/ Consultn with Ty. on cost & phasing - Agreed. 
 
 
Agreed, subject to x/. 

                                         {Re-enter:  de Freitas, Tomlinson 

                                         {Enter:  Edwards.  Exit.  Sargent. 
 
4.     Squatters. 

 C.E. 
Situation less tense.  
 
Diffies when we come to evict those who are in. 
 
Squatters in property actually in use - have authd l.a.'s to evict. 
 
Hope instns given by Serv. Dpts will ensure tht. squatters find it more 
 
 
diff. to get in to these properties. 
 
A.B. 
Can Serv. Dpts co-operate more quickly. 
 
Dawes Hill Camp (R.A.F.) occupied by squatters because undefended. 
 
High Wycombe.  V. diff. to get them out.  Shdn't let them get in. de Fr. 
Don't know facts - will enquire. C.E. 
Serv. Dpts promised (2 weeks ago) to give at least 3 months' notice 
 
 
to M/W. so that we cd. know what we shd. do with it.  Shan't 
 
 
get full effect of that for some weeks. E.W. 
Bamber Bridge & Lancaster - allotted to us.  Are Serv. Dpt. still in  
 
 
occupn - to guard them? A.B. 
Propaganda - "finish the houses". N. 
Every hut in every W.O. camp has an occupant. 
 
Problem is easing off. de Fr. 
While we were looking for ambulance aircraft, squatters tried to move 
 
 
in. P.M. 
Give me report on H. Wycombe. 
 
Let Air Miny make up minds more quickly what airfields they want. de Fr. 
We have produced a p'mme to Airfields Cttee. E.Sh. 
They have now taken camps earmarked for training of Irish labour for 
 
 
miners. G.T. 
We shall be able to relieve that situation. E.W. 
Meeting of 20/8.  No action to evict w'out consent of Ministers. 
 
 
What does that mean?  L.a.'s are hamstrung.  Long procedure - 
 
 
Regional Cttees referring to H.Q. etc. A.B. 
Explained procedure.  Can't evict w'out court order. 

 N. 

No summary procre available.  Wd. take 90 days at least.  And 
 
 
D. Express would pay defendant's costs. 

## 1.     German Coal.

 P.M. 
Prospects of U.S. contn not good.  Gist of E.B.'s telegram.  U.S.  
 
 
proposal:  cut 150.000 t. in Oct./Nov. and 350.000 t. p. month 
 
 
in next 4 months. 
 
Hope Cab. will endorse. 


Agreed. 
 
2.     Food Supplies.

## (A)  Bread Rationing.

 
P.M. 
Harvest in U.K:  strikes in U.S. ports:  not best time to remove BU's. J.S. 
Harvest worsened since my minute.  No estimate of wheat we will  
 
 
lose - told it won't be large. 
 
Over-riding consn:  wdn't now impose rationing if hadn't bn.  
 
 
introduced - supply posn is such.  Can't keep it on because not 
 
 
certain of future position. P.M. 
U.S. strikes might spread to Canada. 
 
Two factors influenced me before  


a) not ready to gamble on U.K. weather 


b) risk of strikes on American seabord. 
 
a)  proved by events.  b) U.S. posn might spread to Canada. 
 
Wd. wish to have figures to show what wd. happen if certain supplies 
 
 
not in. 
 
How much of M/F. figures are stocks & how much estimated arrivals? 
 
Where wd. you be if no exports fr. N. America? J.S. 
Run-down - breakdown in say 5 wks. P.M. 
Importance of period before freeze-up. T.W. 
Speculative prospects in U.K.  Unless sun & wind, shall lose quantity 
 
 
& mayn't even get the 200.000 t. assumed for Sept.  In Aug. got 
 
 
60.000 out of estimate of 75.000. 
 
Weight of harvest:  if we cd. gather it's over average for 10 yrs. past. 

 
 
Can't say how much we will get in. 
 
Politically:  harvest as it is, & attracting such public attentn, fantastic 
 
 
to abolish BU's at this
 moment.  Shd. be asked - why we  
 
 
imposed it. 
 
Seriousness of foodstuffs posn & its consequences.  Livestock killed  
 
 
can't be replaced for some long term.  Affectg. dairy cows as 
 
 
well as pigs etc.  If therefore we can abolish B.U.'s or shorten 
 
 
ratio of extraction to 85%, I wd. much prefer the 2nd course.   
 
 
This wd. cost 25.000 t. wheat a month.  First wd. cost  
 
 
40.000 tons. 
 
My advice: defer abolishing B.U's for a month:  and reduce 

|                                                                            |                                                                         | extract                                                         |
|----------------------------------------------------------------------------|-------------------------------------------------------------------------|-----------------------------------------------------------------|
| n                                                                          |                                                                         |                                                                 |
| ratio.                                                                     |                                                                         |                                                                 |
|                                                                            |                                                                         |                                                                 |
| P.M.                                                                       | How much do you expect to harvest in Sept., if weather remains as       |                                                                 |
|                                                                            |                                                                         |                                                                 |
|                                                                            |                                                                         | now.                                                            |
| T.W.                                                                       | V. little.  But with good weather (10 days) we'd get 200.000 t.         |                                                                 |
|                                                                            |                                                                         |                                                                 |
| J.S.                                                                       | Rationing not going well.  Public not minding:  but not good morale     |                                                                 |
|                                                                            |                                                                         | behind it & much bread sold w'out coupons.  Reaction on points  |
|                                                                            |                                                                         | scheme.  Bread saving is decreasing.  As in memo.  Further      |
|                                                                            |                                                                         | week = 82.  If it's coming off this autumn, better do it soon.  |
|                                                                            |                                                                         | But no strong feelings in favour of Sept. vice October.         |
|                                                                            |                                                                         |                                                                 |
| P.M.                                                                       | Political effects.  We decided to ration because of uncertainties in    |                                                                 |
|                                                                            |                                                                         | supply pos                                                      |
| n                                                                          |                                                                         |                                                                 |
| .                                                                          |                                                                         |                                                                 |
|                                                                            |                                                                         | One factor was home harvest.  That has bn. reduced prob. &      |
|                                                                            |                                                                         | delayed.  Second factor was shipping hold-ups.  No assurance    |
|                                                                            |                                                                         | that won't spread to Canada.                                    |
|                                                                            |                                                                         |                                                                 |
| J.S.                                                                       | Earlier Canadian harvest has increased U.K. stocks by 100.000.          |                                                                 |
|                                                                            |                                                                         |                                                                 |
| P.M.                                                                       | This is inopportune time.  Consider again in Oct.                       |                                                                 |
|                                                                            |                                                                         |                                                                 |
| E.B.                                                                       | Must take an early decision re extraction rate.                         |                                                                 |
|                                                                            | Prevent killing off of Xmas poultry.  Politically unwise.               |                                                                 |
| i) Millers shd. be told Govt. aim at de-rationing in Oct. (in confidence). |                                                                         |                                                                 |
| ii) lower extraction rate (I wd. prefer                                    |                                                                         |                                                                 |
|                                                                            |                                                                         |                                                                 |
|                                                                            |                                                                         |                                                                 |
| iii) to cut deliveries down to 90% to avoid waste by                       |                                                                         |                                                                 |
|                                                                            |                                                                         | bakers.                                                         |
|                                                                            |                                                                         |                                                                 |
| P.L.                                                                       | Risk of famine in India:  serious to de-ration or reduce extract        |                                                                 |
| n                                                                          |                                                                         |                                                                 |
| at this                                                                    |                                                                         |                                                                 |
|                                                                            |                                                                         | moment because of effect on India.  Take neither step at this   |
|                                                                            |                                                                         | moment.                                                         |
|                                                                            |                                                                         |                                                                 |
| A.G.                                                                       | Think J.S. memo. unconvincing.                                          |                                                                 |
|                                                                            | In B. & U.S. zones, hope to m'tain 1550 calories p.d. (from U.S.        |                                                                 |
|                                                                            |                                                                         | sources).  Will absorb 50% of wheat surplus of U.S.  By         |
|                                                                            |                                                                         | mid '47 may have to reduce that ration or supplement from here. |
|                                                                            | We are concerned to re-establish economy of B. zone.  Can't chance      |                                                                 |
|                                                                            |                                                                         | red                                                             |
| n                                                                          |                                                                         |                                                                 |
| of 1550 calories next spring.  Bad politics to abolish BU's                |                                                                         |                                                                 |
|                                                                            |                                                                         | now with idea of re-introducing next spring.                    |
|                                                                            | Wd. like J.B.H. to be heard on this before decision taken.              |                                                                 |
|                                                                            |                                                                         |                                                                 |
| A.B.                                                                       | Prefer to reduce ext                                                    |                                                                 |
| n                                                                          |                                                                         |                                                                 |
| rate to abolish rationing if any change to be made.                        |                                                                         |                                                                 |
|                                                                            | Political disadvantages of removing rationing - at beginning of what is |                                                                 |
|                                                                            |                                                                         | bound to be a v. diff. winter.                                  |
|                                                                            |                                                                         |                                                                 |
| J.S.                                                                       | Admin                                                                   |                                                                 |
| ve                                                                         |                                                                         |                                                                 |
| diffy.  Not only for roundsmen, but also for M/F. machine.                 |                                                                         |                                                                 |
|                                                              |                                                                  | They cd. of course continue for another 5 wks.                       |
|--------------------------------------------------------------|------------------------------------------------------------------|----------------------------------------------------------------------|
|                                                              |                                                                  |                                                                      |
| H.D.                                                         | Extract                                                          |                                                                      |
| n                                                            |                                                                  |                                                                      |
| vice de-rationing a better method.  Do that first, when time |                                                                  |                                                                      |
|                                                              |                                                                  | comes to do either.                                                  |
|                                                              | P'pone de-rationing until Oct.                                   |                                                                      |
|                                                              | But cd. we reduce extract                                        |                                                                      |
| n                                                            |                                                                  |                                                                      |
| now by 5%?  Cd. we get into confidl. talk                    |                                                                  |                                                                      |
|                                                              |                                                                  | with millers.  Enlist them on (iii) above against rebellious bakers. |
|                                                              |                                                                  |                                                                      |
| E.Sh.                                                        | Cdn't abolish & re-impose.  Politically impossible.              |                                                                      |
|                                                              | No complaints re rationing in Scotland - or in my Ldn. home.     |                                                                      |
|                                                              | Situation in India & in B. Zone.                                 |                                                                      |
|                                                              | Reduce ext                                                       |                                                                      |
| n                                                            |                                                                  |                                                                      |
| rate by 5%.  That wd. be popular.  Rationing is not          |                                                                  |                                                                      |
|                                                              |                                                                  | unpopular.                                                           |
|                                                              |                                                                  |                                                                      |
| P.L.                                                         | Spoiled grain fr. U.K. harvest wd. be available for animal feed. |                                                                      |
|                                                              |                                                                  | Replace reducing extract                                             |
| n                                                            |                                                                  |                                                                      |
| rate.                                                        |                                                                  |                                                                      |
|                                                              |                                                                  |                                                                      |
| T.W.                                                         | Wdn't meet the case.  Clear tht. much wd. be unmillable if bad   |                                                                      |
|                                                              |                                                                  | weather - but cdn't bank on that as cure for our feed problem.       |
|                                                              |                                                                  |                                                                      |
| P.M.                                                         |                                                                  |                                                                      |
|                                                              | Agreed.                                                          |                                                                      |
| Reduce extraction rate:  5% as soon as practicable.          |                                                                  |                                                                      |
|                                                              |                                                                  |                                                                      |
|                                                              |                                                                  |                                                                      |
| n                                                            |                                                                  |                                                                      |
| to mentioning (iii) to millers, saying they must             |                                                                  |                                                                      |
|                                                              |                                                                  |                                                                      |
|                                                              |                                                                  |                                                                      |
|                                                              |                                                                  |                                                                      |

## (B) Indian Requirements.

 N. 
At P.M.'s request explained action taken by S.E.A.F. Cttee. 
 
Effect, as in N.'s minute to P.M., on India & Malaya. P.L. 
Further telegram showing slight improvement as cpd. with figures in 
 
 
2nd memo. 
 
52.000 t. short in Sept/Oct. none the less:  & uncertainties due to  
 
 
strikes will affect them even more. 
 
Only contribn we can make is diversions of U.K. supplies. J.S. 
Much done since last memo. month since  a) U.S. Govt. have increased  
 
 
by 120.000 t. this month's shipments.  b) Argentine:  140.000 t.  
 
 
maize export licences issued.  c) Barley from Turkey.  
 
 
d) S.E.A.F. diversions.  e) 35.000 t. of Canad. wheat already 
 
 
diverted.  We helped on a) - d).  Gap much narrowed. 
 
Diff. to divert more Canadian wheat.  Asked for 40 m. bushels more 
 
 
over crop year. 
 
 
To ask now for more for India wd. damage our interest.  Cdn't 
 
 
get more than 30/40.000 t. - wh. wdn't make much difference 
 
 
to India. 

                 x/ Will do our best to snatch such other opportunities to help.  x/ 

| Barnes.    | I cd. only ship 50.000 t.                                           |
|------------|---------------------------------------------------------------------|
|            | Not notified of more than 32.000 t. export licences fr. Argentine.  |
|            |                                                                     |
| P.L.       | Thanks for past services.  But I'm still short.  30/40.000 t. would |
|            |                                                                     |
|            |                                                                     |
| G.H.       | SEAF. action has eased position in Ceylon & Malaya.                 |
|            |                                                                     |
| P.M.       |                                                                     |
|            |                                                                     |
|            |                                                                     |
|            |                                                                     |
|            | (c)                                                                 |
|            |                                                                     |
| H.D.       | Have said I'm ready to pay more for meat - on 2 yr. contract.  So   |
|            |                                                                     |
|            |                                                                     |
|            |                                                                     |
|            |                                                                     |

2.    British Nationality Law. 

 C.E. 
Pity Canada raised this at this stage. 
 
Agreed as in Para. 18. Edwards. 
Bearing on naval service. 
 
a) 
Will lift the colour bar 
 
b) 
Effect on Eire citizens who have given loyal service to R.N.  


They won't be able to continue entering R.N. if they've lost  


B. nationty. 
 
Consider Service Dpts. shd. be empowered to keep Conference  
 
 
informed re consequences on Services. 


Para. 18(1)     agreed 

  ..    18(2)         ..          subject to G.H. considering title. 

  ..    18(3)         .. E.W. 
Para. 18(4).  Wdn't this force the issue?  Might they not refuse? C.E. 
We wd. take soundings & wdn't invite if we knew they wd. refuse. 


Para.  18(4)     agreed, on this understanding. 


Para.  18(5)     agreed. A.G. 
Negotns may be protracted.  Do you suppose legn this Session? C.E. 
Doubtful.  Will prob. take 12 months or so. 

     [Exit.  Civil Lord. 
3.    Marriage Bar in Civil Service. H.D. 
As in memo. 
|                                               |                                                                       | If you abolish, it wd. be v. diff. to avoid in practice continuance of     |
|-----------------------------------------------|-----------------------------------------------------------------------|----------------------------------------------------------------------------|
|                                               |                                                                       | inefficient women in Service.                                              |
|                                               | One of main obj                                                       |                                                                            |
| ns                                            |                                                                       |                                                                            |
| to abolition is in G.P.O. - where workers are |                                                                       |                                                                            |
|                                               |                                                                       | opposed because of effect on promotion from routine duties.                |
|                                               |                                                                       | Has bn. suggested we shd. proceed as in para. 5.                           |
|                                               | On 5(a) I wd. instruct tht. bias shd. be in favour of keeping the     |                                                                            |
|                                               |                                                                       | woman on.                                                                  |
|                                               | Recommend para. 5 at any rate as first step.                          |                                                                            |
|                                               | Must discuss with Staff Side before announced.                        |                                                                            |
|                                               |                                                                       |                                                                            |
| P.M.                                          | Not impressed with argument v. abolition, in present man-power        |                                                                            |
|                                               |                                                                       | shortage.                                                                  |
|                                               | We've appealed to industry to keep women on:  then State gives this   |                                                                            |
|                                               |                                                                       | example, as an employer.                                                   |
|                                               | Para. 5(b) is invidious.                                              |                                                                            |
|                                               |                                                                       |                                                                            |
| E.W.                                          | Cdn't Dpts. secure resignation of those who are inefficient.          |                                                                            |
|                                               |                                                                       |                                                                            |
| T.W.                                          | If para. 5(b) adopted, as automatic, danger of retaining inefficient. |                                                                            |
|                                               |                                                                       |                                                                            |
| E.Sh.                                         | You encourage living in sin, that's all.                              |                                                                            |
|                                               | Does this apply to temporaries?                                       |                                                                            |
|                                               |                                                                       |                                                                            |
| H.D.                                          | No.                                                                   |                                                                            |
|                                               |                                                                       |                                                                            |
| E.B.                                          | How long will you m'tain freezing order?  It should go.  Unfair to    |                                                                            |
|                                               |                                                                       | take advantage of a war.                                                   |
|                                               |                                                                       |                                                                            |
| P.L.                                          | Views of Assoc                                                        |                                                                            |
| ns                                            |                                                                       |                                                                            |
| :  any ev                                     |                                                                       |                                                                            |
| ce                                            |                                                                       |                                                                            |
| of views of women w'in those                  |                                                                       |                                                                            |
|                                               |                                                                       | Associations.                                                              |
|                                               |                                                                       |                                                                            |
| A.B.                                          | Room for favouritism, when rule is not automatic.                     |                                                                            |
|                                               |                                                                       |                                                                            |
| P.M.                                          | Position of woman whose husband dies w'in six months.                 |                                                                            |
|                                               | Risk tht. woman not allowed to continue will be branded as            |                                                                            |
|                                               |                                                                       | inefficient.                                                               |
|                                               |                                                                       |                                                                            |
| H.D.                                          | Practice of other Govts. in App.  And other employers in U.K.         |                                                                            |
|                                               |                                                                       |                                                                            |
| E.Sh.                                         | Delay decision during man-power shortage?                             |                                                                            |
|                                               |                                                                       |                                                                            |
| A.B.                                          | Not impressed by G.P.O. view.                                         |                                                                            |
|                                               |                                                                       |                                                                            |
| E.W.                                          | No credit fr. either side for this compromise.                        |                                                                            |
|                                               |                                                                       |                                                                            |
| P.M.                                          | Also will be said to be class-distinction.                            |                                                                            |
|                                               |                                                                       |                                                                            |
| E.B.                                          | Will it affect marriage-bar in Foreign Service?                       |                                                                            |
|                                               |                                                                       |                                                                            |
| H.D.                                          | No.                                                                   |                                                                            |

 T.W. 
Wd. it affect absorption of temporaries? 

 E.E.B. 
Not to any appreciable extent. 
 
 
Agreed:  Abolish marriage-bar:  Home Service only. 

     Not in Foreign Service. 

     Consider Colonial   ..   . 

     Consider means of removing inefficient after marriage. 

     Tell Offl. Side before announced. 

                                                 [Enter  G.T. & Shawcross. 

4. 
Squatters. 

 G.T. 
Occupation of luxury flats on de-requisitioning. 
 
P.M. 
What is the law? H.Sh. 
Can sue in trespass & demand possn.  Might get interloc. for 
 
 
imm. possn. 
 
 
If not, go to trial - & wait months.  But 1.500 in one bldg. 
 
 
They might disregard the court's decision. A.B. 
But this = organised attempt:  entry by force:  Police helped them in. 
 
If I took such action cdn't Police have stopped it. H.Sh. 
Yes:  conduct likely to lead to breach of the peace. 
 
Crim. conspiracy prs.  But fear jury wd. acquit.  Positive there wd. 
 
 
be worse. A.B. 
Communists say they are going to put 10.000 members into this class 
 
 
of property.  Govt. will be in hands of others soon. H.Sh. 
You can't re-enter by force,  once the bldg. has bn. completely 
 
 
occupied. C.E. 
Criminal offences may be commd in the course of occupn:  but 
 
 
prosecution for those don't give you possession. H.Sh. 
My advice is to start procdgs:  try to get order:  & chance using force 
 
 
in giving effect to it. 
 
Can use force to prevent it.  Can tell Police what is about to happen. A.B. 
May I refuse to install facilities, cooking etc. P.M. 
Yes. H.Sh. 
I cd. consider crim. procgs. (with D of P.P.)  but wdn't give possn. 


A.G. to consult with Ty. Solr. & D.P.P. 


H.O. to warn Police of forthcoming attempts.    
 

## 1.    Repatriation Of German Prisoners.

 A.G. 
As in memo. 
 
Volunteers - will be met by scheme of deferment.  Not wise to offer 
 
 
addl. inducements to volunteer at this stage.  Awkward also to 
 
 
create separate privileged class of p.o.w. 
 
Incentives - specl. attentn to d) and f) i.e. output bonus and sending 
 
 
money home. 
 
 
The latter - both re-settlement bonus & also current remittances  
 
 
subject to limit of 5/= a wk. 
 
Announcement shd. go out to-night. T.W. 
No objn in principle. 
                   x/ But in drawing off p.o.w. fwd. planning to ensure least poss. 
 
dislocation where p.o.w. are living in.  Long notice to farmers. 
 
Incentives:  wd. have preferred somethg. like 15/= a week:  esp. for  
 
 
those coming fr. camps. N. 
Gave assurances on x/  -  save for the 8.000 "whites" who are going at 
 
 
once. C.E. 
Inducements:  H.O. to be consulted on (h) p.14. N. 
Yes. H.D. 
Agree with proposals.  Output bonus not to be available for 
 
 
expenditure in U.K. - I accept on that condition. G.T. 
Had hoped inducements wd. be higher. N.E. 
At 15 R. to £1, the output bonus at 50% will not be sufficiently 
 
 
attractive. N. 
Agreed:  means only 1/3rd value.  If that rate is to be retained, the  
 
 
bonus shd. go to 15/=. H.D. 
More concerned re rate of exchange than amount of bonus. 


Agreed:  output bonus to max. 15/=  

              Exchange rate 15 to £1. 
 
Draft of public announcement.  Various amendments suggd & 
 
 
approved. T.W. 
No reference to nos. remaining for '47 harvest.  Farmers will ask me. 
 
 
May I say to organisations something to allay their fears? P.M. 
You can say we shall take steps to m'tain labour force. 

                   [Exit N. de Freitas.  N. Edwards. Summerskill. 

2.    Silver. 
 

| H.D.     | As in memo.                                            |
|----------|--------------------------------------------------------|
|          | W'drawal will be gradual - spread over 20 years.       |
|          | Token coin anyhow.  Silver in it was originally only 1 |
| d        |                                                        |
| per 1/=. |                                                        |

 

R.S.C. 
And put a 3d piece into silver series. 

 

| H.D.                                    | Will hold compet                                                     |
|-----------------------------------------|----------------------------------------------------------------------|
| n                                       |                                                                      |
| for design & submit to a few Ministers. |                                                                      |
|                                         |                                                                      |
| R.S.C.                                  | Silver bullion for industry?                                         |
|                                         |                                                                      |
| H.D.                                    | Govt. needn't go on buying.  Wd. be ordinary purchase, with licence. |
|                                         | We shd. cease buying at once when the Bill passed.                   |
|                                         |                                                                      |
| R.S.C.                                  | Can I start discussing with bullion brokers?                         |
|                                         |                                                                      |
| H.D.                                    | Yes:  on confidential basis.                                         |
|                                         | Leg                                                                  |
| n                                       |                                                                      |
| :  at end of this Session.              |                                                                      |
|                                         |                                                                      |
| A.G.                                    | Yes:  easier then than next.                                         |
|                                         |                                                                      |
| G.H.                                    | Parallel action in Colonies.            Agreed.                      |
|                                         |                                                                      |

 
3.    Squatters.
 

 C.E. 
Read Police report of mtg. with Communists & Labour M.P.'s. 
 
 
Discussed plan to stir up feeling about housing - Ministers 
 
 
dilatory - in order to get popular platform for Communist 
 
 
Party whose fortunes are flagging. 
 
Police doing their best to thwart the operations. 
 
But Dpts & other owners are still not 100% good at makg. premises 
 
 
secure. A.B. 
Need for publicity - to get it across that squatters are jumping the 
 
 
claim & doing down those higher on the list. P.M. 
Let M/H. send circular to l.a.'s warning them, in part, not to provide 
 
 
facilities. 
 
 
Let this be focus for publicity. 

## 1. Anglo-French Economic Co-Operation.

 E.B. 
Joint Cttee of Experts.  Lr. from H.D.            [Enter  G.T.  H. Shawcross 
 
 
was v. helpful. 
 
Communiqué embodying t. of r. of Joint Body.  Read main items. 
 
 
Important item:  avoidance of conflict in reconstn of the 
 
 
2 countries. 
 
Better than mil. alliance.  Will produce some standardisation which 
 
 
may assist mil. co-opn later.  Will affect M/F. purchase of 
 
 
foodstuffs etc., from France.  Will affect C.O. 
 
Read terms of communiqué. H.D. 
Indicated approval.  My contn related to method of handling Fr. debt 
 
 
to us. 
 
Anxious for world
 of low-interest rates.  Argentine have bn. reluctant  
 
 
to accept our line tht. ½ % interest is all we'll pay on sterling 
 
 
balances.  Have suggd we take only ½ % fr. French. 
 
W'in Franc area possibilities of imports (e.g. phosphates, iron etc.) 
 
Shd. help to produce better Anglo. Fr. atmosphere. H.M. 
a)  standardisation won't slow down our reconstn? E.B. 
No. H.M. 
b)  conflict with I.T.A.? E.B. 
No. 


Communiqué agreed. 
[Enter  Newsam. 
 
 
2. 
Squatters. H.S. 
Appln granted in Court this a.m:  injunction restraining named  
 
 
defendants fr. continuing their trespass.  M/H. case will 
 
 
come up this a.m. P.M. 
How many cases? A.B. 
Gave particulars. P.M. 
Action after Court decision. 
 
a) Good warning to Squatters of position in law. 
 
b) Alternative arrangemts. for accommn. A.B. 
This (b) is in hand.  L.C.C. will look after (b) as p.a. authy not giving 
 
 
them any priority for housing
, only case on p.a. basis. 
 
|                 | F.A.N.                                                                    | (b) will be gt. relief to Police.  If squatters won't go there, are Police    |
|-----------------|---------------------------------------------------------------------------|-------------------------------------------------------------------------------|
|                 |                                                                           | to take them off on grds. of obstruction.  May Police be informed             |
|                 |                                                                           | they can remove them (to rest centre, not Police station)?                    |
|                 |                                                                           |                                                                               |
| H.M.            | Forcible removal to poor law instit                                       |                                                                               |
| n               |                                                                           |                                                                               |
| wd. be awkward. |                                                                           |                                                                               |
|                 |                                                                           |                                                                               |
| F.A.N.          | Wdn't take them so far.                                                   |                                                                               |
|                 |                                                                           |                                                                               |
| H.S.            | Wd. only move them on.  If they won't go:  arrest for offence.            |                                                                               |
|                 | Public announcement.                                                      |                                                                               |
|                 |                                                                           | (a)                                                                           |
|                 |                                                                           | (b)                                                                           |
|                 |                                                                           | (c)                                                                           |
|                 |                                                                           |                                                                               |
|                 |                                                                           |                                                                               |
| H.D.            | Put squatters to bottom of priority list for housing - as at Aberdeen?    |                                                                               |
|                 | Genl. view:  not a good idea to do that.  Tell l.a.'s they shd. not give  |                                                                               |
|                 |                                                                           | punishment for which the law doesn't provide.                                 |
|                 |                                                                           |                                                                               |
|                 |                                                                           |                                                                               |
| G.T.            | Want to tell my caretakers what in law they can do about squatters,       |                                                                               |
|                 |                                                                           | after High Ct. decision.                                                      |
|                 |                                                                           |                                                                               |
| H.S.            | Caretaker entitled to use force to prevent entry.                         |                                                                               |
|                 |                                                                           |                                                                               |
| F.A.N.          | Need for clear directions to Police.  Can't exercise a discretion.        |                                                                               |
|                 | The bottle of milk for the baby can be handed in by someone else.         |                                                                               |
|                 |                                                                           |                                                                               |
| H.S.            | May be some exceptional cases.                                            |                                                                               |
|                 | Don't allow the man who goes out to work to return.                       |                                                                               |
|                 | New entries - absolute bar.  Re-entry - as little discretion as possible. |                                                                               |
|                 |                                                                           |                                                                               |
| A.B.            | No re-entry:  tho' in v. except. cases of domestic hardship it might be   |                                                                               |
|                 |                                                                           | allowed.                                                                      |
|                 |                                                                           |                                                                               |
| G.T.            | Need to avoid enlisting public sympathy for squatters.  Also to winkle    |                                                                               |
|                 |                                                                           | the squatters w'out force.                                                    |
|                 |                                                                           |                                                                               |
| H.S.            | Conspiracy case.  Communist leaders:  but 4 can show hardship.            |                                                                               |
|                 | Point raised in Minute to P.M.  Cd. we take the line tht. we want to      |                                                                               |
|                 |                                                                           | establish the law not to obtain penalties?  Fear Comm. "reprisals"            |
|                 |                                                                           | by industrial disturbance.                                                    |
|                 |                                                                           |                                                                               |
| A.B.            | Believe Comm. Party is divided - this is only London Branch.              |                                                                               |
|                 |                                                                           |                                                                               |
| A.B.            | London housing.  750.000 = target for U.K. = separate home for each       |                                                                               |
|                 |                                                                           | family.                                                                       |
|                 |                                                                           | But that won't give uniformity all over - & Ldn, in particular,               |
|                 |                                                                           | will be far behind (i) because of damage (ii) need for                        |
|                 |                                                                           | decentralisation.  There is therefore some basis for Ldn. action.             |
|                                             | Propose therefore (i)  W.O. & Air Min                                  |
|---------------------------------------------|------------------------------------------------------------------------|
| y                                           |                                                                        |
| to consider wtr. they can                   |                                                                        |
|                                             |                                                                        |
| n                                           |                                                                        |
| (flats etc.) by                             |                                                                        |
|                                             |                                                                        |
|                                             |                                                                        |
|                                             |                                                                        |
|                                             |                                                                        |
|                                             |                                                                        |
|                                             |                                                                        |
| G.T.                                        | Cab. decision on priorities.  Read extracts.                           |
|                                             | On (ii) hotels came into 2                                             |
| nd                                          |                                                                        |
| group of priorities.                        |                                                                        |
|                                             |                                                                        |
|                                             |                                                                        |
| y                                           |                                                                        |
| have asked                                  |                                                                        |
|                                             |                                                                        |
|                                             | On (i) I've bn. pressing Service Dpts. to do this for some time.  Much |
|                                             |                                                                        |
|                                             |                                                                        |
|                                             |                                                                        |
| R.S.C.                                      | Need for hotels -                                                      |
|                                             |                                                                        |
| n                                           |                                                                        |
| v. short.                                   |                                                                        |
|                                             |                                                                        |
|                                             |                                                                        |
|                                             | Once you start, all l.a.'s will want hotels for all sorts of purposes. |
|                                             |                                                                        |
| H.D.                                        | Support RSC.  re hotels.  But Serv. Dpts. are not fast enough - W.O.   |
|                                             |                                                                        |
| y                                           |                                                                        |
| are not doing as well as Air Min            |                                                                        |
| y                                           |                                                                        |
| .  Latter have                              |                                                                        |
|                                             |                                                                        |
| n                                           |                                                                        |
| of staff.  The other 2                      |                                                                        |
|                                             |                                                                        |
|                                             |                                                                        |
| P.M.                                        | I will look into Serv. Dpts. myself.                                   |
|                                             |                                                                        |
| E.W.                                        | Use of deep shelters?                                                  |
|                                             |                                                                        |
| A.B.                                        | Not in peace.                                                          |
|                                             | Will w'draw (ii) on cond                                               |
| n                                           |                                                                        |
| that hotels de-requisitioned are taken into |                                                                        |
|                                             |                                                                        |
|                                             |                                                                        |
| P.M.                                        | Let them open at once, even in part.                                   |

 

|    | E.B.    | Low priority for release of luxury flats has caused pressure on lower-    |
|----|---------|---------------------------------------------------------------------------|
|    |         | rented flats by people who wd. otherwise take the luxury flats.           |

 
Cd. P.M. do a Battle of Accommodation drive on this?  4-mile radius 
 
 
fr. centre of Ldn.  Use of flats by Govt. Dpts. 

                                      [Exit  H.S., G.T., A.B. & Newsa 

                                      [Enter  C.O.S., N., J.W., de Freitas. 
3. 
Central Organisation for Defence. P.M. 
Ministerial Cttee:  consultns late C.O.S., H.L.I. and E.E.B., leading  

|                                                |                                                                        | Ministers closely concerned in last war.                      |
|------------------------------------------------|------------------------------------------------------------------------|---------------------------------------------------------------|
|                                                | History & commentary for inform                                        |                                                               |
| n                                              |                                                                        |                                                               |
| of Cabinet.                                    |                                                                        |                                                               |
|                                                | Concurrently, enquiry into common services.  N.'s rpts. not exam       |                                                               |
| d                                              |                                                                        |                                                               |
| yet.                                           |                                                                        |                                                               |
|                                                |                                                                        | Wdn't embody our concl                                        |
| ns                                             |                                                                        |                                                               |
| on that issue in this W. Paper.                |                                                                        |                                                               |
|                                                | Main proposal here = M/Def. with scope excludg. pro tem. those         |                                                               |
|                                                |                                                                        | common services.                                              |
|                                                | Defence Cttee vice                                                     |                                                               |
| C.I.D. (wrongly named & advisory).  Its Cttees |                                                                        |                                                               |
|                                                |                                                                        | wd. be constituted under D. Cttee.                            |
|                                                | Co-ordination   a)  of cutting edge:  via                              |                                                               |
| M/Defence                                      |                                                                        |                                                               |
|                                                |                                                                        |                                                               |
|                                                |                                                                        |                                                               |
|                                                |                                                                        |                                                               |
|                                                | Continue practice of Defence debate - defence as a whole - & all       |                                                               |
|                                                |                                                                        | Estimates to be in unified picture.                           |
|                                                | Bottled experience vice theory.                                        |                                                               |
|                                                | Some amendmts. to W. Paper will be needed.  First, however, points of  |                                                               |
|                                                |                                                                        | princ.                                                        |
|                                                |                                                                        |                                                               |
| H.M.                                           | Two ques's.  a) can you delimit between M/D. & 3 Serv. Ministers?      |                                                               |
|                                                |                                                                        |                                                               |
|                                                |                                                                        |                                                               |
|                                                |                                                                        |                                                               |
| nd                                             |                                                                        |                                                               |
| stage.                                         |                                                                        |                                                               |
|                                                |                                                                        |                                                               |
|                                                |                                                                        |                                                               |
|                                                | Parly. consequences not dealt with.  Rs. Spkr out of Chair debate shd. |                                                               |
|                                                |                                                                        | be removed:  get away fr. 3 separate debates & go for unified |
|                                                |                                                                        | debating.   Consider this.                                    |
|                                                | Definition of reduced function of Service Ministers:  and closer       |                                                               |
|                                                |                                                                        | definition of M/D. functions.  Para. 26.                      |
|                                                |                                                                        |                                                               |
| P.M.                                           | Don't want paper too long.                                             |                                                               |
|                                                | Nomenclature.  Many alternatives for M/D. (to keep that for P.M.)      |                                                               |
|                                                |                                                                        | were considered, but cdn't find a better.                     |
|                                                |                                                                        |                                                               |
| E.W.                                           | Personalities:  strong M/D. & S of S. for War.                         |                                                               |
|                                                |                                                                        |                                                               |
| E.Sh.                                          | How does this differ from Inskip?                                      |                                                               |
|                                                |                                                                        |                                                               |
| P.M.                                           | He had no executive functions, no staff.                               |                                                               |
|                                                |                                                                        |                                                               |
| E.B.                                           | And not much sense.                                                    |                                                               |
|                                                |                                                                        |                                                               |
| J.W.                                           | Will he have auth                                                      |                                                               |
| y                                              |                                                                        |                                                               |
| to settle research & devel. p'mmes.            |                                                                        |                                                               |
|                                                |                                                                        |                                                               |
| P.M.                                           | Yes.  Para. 26.                                                        |                                                               |

 E.Sh.           x/ Para. 42 (b) P.Q.'s. 

P.M. 
By practice. 


| E.B.                                                                                | S of S. for War will have to be changed?  To Army.                 |
|-------------------------------------------------------------------------------------|--------------------------------------------------------------------|
|                                                                                     |                                                                    |
| P.M.                                                                                | Yes:  later on.                                                    |
|                                                                                     |                                                                    |
| H.D.           x/ Evolve.  That is charm of this scheme.  Flexible enough to permit |                                                                    |
|                                                                                     |                                                                    |
|                                                                                     | V. gt. help from Ty. angle - discuss with 1 Minister vice 3.  At   |
|                                                                                     |                                                                    |
|                                                                                     |                                                                    |
|                                                                                     |                                                                    |
| E.Sh.                                                                               | a)                                                                 |
|                                                                                     | that.  Bound to reduce standing of Service Ministers.              |
|                                                                                     | b)                                                                 |
|                                                                                     |                                                                    |
|                                                                                     |                                                                    |
| P.M.                                                                                | I agree - and intend both these consequences, in the long run.     |
|                                                                                     |                                                                    |
| R.S.C.                                                                              | Defence & civilian research - correlation.  What is intended?      |
|                                                                                     |                                                                    |
| P.M.                                                                                | Single Chairman of 2 Scientific Cttees.                            |
|                                                                                     |                                                                    |
| R.S.C.                                                                              | Will want a link above the official level.                         |
|                                                                                     |                                                                    |
| J.W.                                                                                | Co-relation of mil. & civil aircraft research & production.        |
|                                                                                     |                                                                    |
| T.W.                                                                                | Hope Service Ministers will have chance to speak on this.          |
|                                                                                     |                                                                    |
| E.W.                                                                                | Relations between P.U.S. of M/D. & P.U.S. of Service Dpts.  Mayn't |
|                                                                                     |                                                                    |
| n                                                                                   |                                                                    |
| of Service Ministers?                                                               |                                                                    |
|                                                                                     |                                                                    |
| P.M.                                                                                | This is not a super-Minister.  The spheres are exclusive, not      |
|                                                                                     |                                                                    |
|                                                                                     |                                                                    |
| E.B.                                                                                | Defence Cttee.  M/Labour shd. be involved because of man-power,    |
|                                                                                     | training etc.                                                      |
|                                                                                     |                                                                    |
| n                                                                                   |                                                                    |
| on J.W.P.S. is not enough.                                                          |                                                                    |
|                                                                                     |                                                                    |
|                                                                                     |                                                                    |
|                                                                                     | If defence is going to affect designers - dir                      |
| n                                                                                   |                                                                    |
| of training in industry is                                                          |                                                                    |
|                                                                                     |                                                                    |
|                                                                                     |                                                                    |
|                                                                                     |                                                                    |
| P.M.                                                                                | On same principle, M/T. and B/T. must be permanent members.        |
|                                                                                     | Shd. rely on bringing Ministers in when they are concerned.        |
|                                                                                     |                                                                    |
|                                                                                     |                                                                    |
| E.B.                                                                                | Believe man-power & other M/L. interests are more continuously     |
|                                                                                     |                                                                    |
|                                                                                     | Example:  only 14.000 draftsmen available when I took office.  And |
|                                                                                     |                                                                    | P.M. 
Ditto for scientists.  But doesn't follow that M/E. shd. be perm. 
 
 
member of Def. Cttee.  On that basis Cttee. wd. get much  
 
 
too large. H.M. 
On merits agree with P.M.  Expediency:  is it wise to mention the 
 
 
composition in W. Paper. R.S.C. 
M/L. in difft. posn fr. the others quoted - he is continuously  
 
 
interested. 


Agreed:  add M/Labour. E.W. 
Wd. like to be consulted re
 common services - education. 
 
And M/Edn shd. be on the Bd. P.L. 
Submn to Doms.  Shd. it go to India? R.S.C. 
To Viceroy?  With discretion to mention to his Govt. P.M. 
C.O.S. Comments. 
 
Para. 20(c).
  C.O.S. Cttee.  Suggest:  "& he will also preside over  
 
 
mtgs. with the C.O.S. whenever he or they may so 
 
 
desire."                                          Agreed. 
Para. 31. 
C.A.S. 
Location:  premature. P.M. 
Surely it's essential.  What will M/D. have if he hasn't C.O.S. 
 
 
organisation. C.A.S. 
Close co-ordn with Cab. Secretariat has bn. element in its success. R.S.C. 
"Within" vice "located in."             Agreed. P.M. 
Second part of sentence is not redundant. P.M. 
Para. 34.  Will have to be re-considered in light of decision to defer 
 
 
decision re common services. 
 
Para. 30.   Revised draft. 
 
 
Wiser to warn Parlt. now. 
 
Importce of link betwn. M/D. & Cab. Secretariat. 
 
Legislation.  Can we avoid 2 Debates?  On Bill, not W. Paper? 


Approve scheme - subject to drafting (for P.M.). G.H. 
Para. 40.  Some larger Colonies may be called on to do more  
 
 
than [  ].  ? Omit. E.E.B. 
Say "peace-time forces"                     Agreed. J.W. 
War Potential in Doms.  No change.           [Exit J.W.  de Fr.  N. 

## 4. Burma.

| P.L.                        | Serious situation - origins pol. and economic.                      |
|-----------------------------|---------------------------------------------------------------------|
|                             | Aung Sang demand 10 dominatg. pos                                   |
| n                           |                                                                     |
| in Council:  & when denied  |                                                                     |
|                             |                                                                     |
|                             |                                                                     |
|                             | Econ.  Trouble = lack/commodity goods.  C/living risen accordingly. |
|                             |                                                                     |
|                             |                                                                     |
|                             |                                                                     |
| d                           |                                                                     |
| Cttee. to consider means of |                                                                     |
|                             |                                                                     |
|                             |                                                                     |

 
 
This hasn't succeeded.  We now have a) demand from  
 
 
10 organisations of Govt. employees & municipal & p.u.n. - 
 
 
all threatening strike if demands not conceded in 3 days. 
 
Followers of Aung Sang have also made extreme demands for share 
 
 
in Govt. & changes in policy.  Failg. which they will encourage  
 
 
genl. strike. 
 
A. Sang ill (moderate in a way);  & can't see Govr.  Has now asked 

|     |     | Govr. to go & see him.  Govr. will do so.    |
|-----|-----|----------------------------------------------|

 
Govr. asks tht. w'in 2 days he be authorised to take certain action - 

|     |     | some of wh. affects C/Exch.  Must reply to-night or early    |
|-----|-----|--------------------------------------------------------------|
|     |     | to-morrow.                                                   |

 
Will P.M. hold mtg. of Ministers this p.m. P.M. 
H.D. going to U.S. to-night. H.D. 
How does it affect Ty.? P.L. 
Exp're even w'in Burma needs Ty. sanction. 

 
Proposed relaxation of detailed Ty. control over expendre. 

 

|    | H.D.    | L.P. will be looking after Ty. in my absence.  Can he go into this     |
|----|---------|------------------------------------------------------------------------|
|    |         | for me?                                                                |

 P.M. 
G.O.C. says he won't have enough force if there is widespread revolt. 

|      | Indian troops will be w'drawn in that event.                |
|------|-------------------------------------------------------------|
|      |                                                             |
| E.B. | You aren't ready to meet the strike.  You'll have to yield. |
|      |                                                             |
| P.M. | Two sides to this - economic:  prob. some grievances.       |


            political:    we've known for long that only hope 

                              was to work thro' A. Sang:  that's why 

                              we sent out another Govr. 

| E.B.    | Can A. Sang control pol. situation if econ. situation is composed.    |
|---------|-----------------------------------------------------------------------|
|         |                                                                       |
| H.D.    | Cd. Govr. be authorised to agree any financial re-arangemt. wh.       |
|         |                                                                       |

 E.B. 
Must Govr. deal with A. Sang on strike issue.  Can't he deal with that 
 
 
thro' organisations? 
 
R.S.C. 
Must have a mtg. of I.B. Cttee - but with pp. containg. summary 
 
 
of problem and Burma Off. recommns. 


Agreed
    { meet Wed. 10.a.m. on a document prpd by 

               { Burma Office. I & B. Cttee & C.O.S. 
1. 
Textiles for the Services. 

 R.S.C. 
P'pone until after mtg. Friday. N. 
Agreed. 
 

 
2. 
Pensions etc., for Colonials Enlisted in Egypt.

          [Enter Blenkinsop. N. 
Figures misleading qua principle.  Specl. terms for conscripts than 
 
 
volunteers - dangerous. 
 
Principle:  enlistment in B. Forces not same as in U.K Army.  Those 
 
 
enlisted abroad are local Forces.  Diffce between e.g. Australian 
 
 
& U.K. Forces.  Princ. always bn. local standard/living. P.M. 
This was arbitrary conscriptn of all B. subjects in Egypt. N. 
But shd. a Maltese so conscripted in E. shd. be better treated than 
 
 
volunteer fr. Malta. E.B. 
Many B.s escaping service because resident in Egypt.  The Act  
 
 
related to all foreign countries - not E. only.  Recall mutual 
 
 
arrangemt. with U.S.  Everyone else was paid U.K. ratio  
 
 
because brght. home to U.K. Forces.  Can we now distinguish 
 
 
betwn. U.K. national & Maltese both conscripted in E. N. 
If Maltese brght to U.K. Army he wd. have had U.K. rates. 
 
E.B. 
They were in B. Forces. N. 
Not in U.K. forces. E.B. 
Yes. N. 
Didn't serve in E. - nor in U.K. Army. P.M. 
What were they in? P.M. 
They cd. have bn. put in U.K. Forces because conscripted.  Same as 
 
 
U.K. nationals. R.S.C. 
Argument in para. 3:  unfounded:  no such difference. N. 
Formidable consequences.  For principle:  troops fr. all origins if in 
 
 
B. Forces must be treated equally. P.M. 
No.  The terms will be fixed by country of enlistment. 
|                            | Dugd.                                                                  | Nos. of Maltese etc., in R.N. - paid B. rates, even tho' living in     |
|----------------------------|------------------------------------------------------------------------|------------------------------------------------------------------------|
|                            |                                                                        | Malta.                                                                 |
|                            |                                                                        |                                                                        |
| H.M.                       | Ty. apprehensive.  Far-reaching consequences.  Codes of pay for local  |                                                                        |
|                            |                                                                        | Forces are about to be considered.  Proposal = new Pay Code            |
|                            |                                                                        | varied acc. to stand/living in country of origin.  This wd. be         |
|                            |                                                                        | undermined by this.                                                    |
|                            |                                                                        |                                                                        |
| R.S.C. &                   | This is a complete fallacy.                                            |                                                                        |
| P.M.                       |                                                                        |                                                                        |
|                            |                                                                        |                                                                        |
| G.H.                       | Govr./Malta has said no re-action on Maltese Forces.                   |                                                                        |
|                            |                                                                        |                                                                        |
| E.B.                       | No precedent for E. - cd. never do this again there.                   |                                                                        |
|                            |                                                                        |                                                                        |
| P.M.                       | No precedent at all:  because special circs. of compuls. enlistment.   |                                                                        |
|                            |                                                                        |                                                                        |
| Blenk.                     | Doesn't affect us directly.  Might have some                           |                                                                        |
| v. indirect repercussions. |                                                                        |                                                                        |
|                            |                                                                        | But we don't object to F.O. view.                                      |
|                            |                                                                        |                                                                        |
| de Fr.                     | R.A.F:   genl. service liability - U.K. rates.                         |                                                                        |
|                            |                                                                        | limited local   ..                                                     |
|                            | All in Egypt were on genl. liability.                                  |                                                                        |
|                            |                                                                        |                                                                        |
|                            |                                                                        |                                                                        |
|                            |                                                                        |                                                                        |
| 3.                         | T.U.C. and Extra Food for Miners.                                      |                                                                        |
|                            |                                                                        |                                                                        |
|                            |                                                                        |                                                                        |
| E.Sh.                      | Extra food for miners - Cab. favourable - M/F. thght. it impract. -    |                                                                        |
|                            |                                                                        | T.U.C. opposed.                                                        |
|                            |                                                                        | Nothing therefore done.                                                |
|                            | Later at Coal Cttee 1/8 M/F. said somethg. (meat) cd. be done if meat  |                                                                        |
|                            |                                                                        | available.  Knowg. T.U.C. oppos                                        |
| n                          |                                                                        |                                                                        |
| to different               |                                                                        |                                                                        |
| n                          |                                                                        |                                                                        |
| , I thght it useless       |                                                                        |                                                                        |
|                            |                                                                        | to go to them again.  I therefore asked miners to negotiate it with    |
|                            |                                                                        | T.U.C.   They did.                                                     |
|                            |                                                                        |                                                                        |
| J.S.                       | Endorsed this history.  Quoted concl                                   |                                                                        |
| ns                         |                                                                        |                                                                        |
| of Coal Cttee - subject to |                                                                        |                                                                        |
|                            |                                                                        | T.U.C. concurr                                                         |
| ce                         |                                                                        |                                                                        |
| .                          |                                                                        |                                                                        |
|                            | I took parallel action by informg. Woodcock (Food Cttee of T.U.C.).    |                                                                        |
|                            |                                                                        | He told his Cttee.                                                     |
|                            | Cause of trouble.  Miners officials spoke (before T.U.C. mtg) saying   |                                                                        |
|                            |                                                                        | we favoured it and T.U.C. opposed it.  That was the trouble.           |
|                            | T.U.C. Council approved in the end, subject to censure of our tactics. |                                                                        |
|                            | Promised other heavy workers same addl. meat in their canteens.        |                                                                        |
|                            |                                                                        |                                                                        |
|                            |                                                                        |                                                                        |
|                            |                                                                        |                                                                        |
|                            |                                                                        |                                                                        |

## 4. Policy In Libya.

 E.B. 
In a lonely posn in Paris. 
 
1st Austr. amendmt. to add 3 who fought in Italy to 4. 
 
2nd Smuts - concerned at its going to U.N.  When Fr. came out for 
 
 
restoration to Italy:  with R. support:  and U.S. unintelligible: 
 
 
Smuts told me I was right in favouring 12 mos. delay & Commn
 
 
to see inhabitants. 
 
Found that our adminn operatg. in acc. with Hague Convn - with  
 
 
result tht. it wasn't as progressive as I wd. wish.  Saw 
 
 
Genls. Cummings & Anderson.  (Even Senussi were beginning 
 
 
to complain.)  Concluded we shd. take a broader interpretn of 
 
 
our obligns in adminn. 
 
We shd. try to get Cyrenaica. 
 
Tripolitania diff.  Sympathy for Italy assocn. 
 
Symp. for assocn of Abyssinia with Eritrea. 
 
Looks like condominium for Trip. & Eritr., with Italy & Arabs  
 
 
associated with it.  Have tried, however, to get Cyrenaica  
 
 
separated vice dealg. with Libya as whole. 
 
Hostility in Paris to U.K.  Suggd therefore independence.  Recalled 
 
 
pledges to Senussi.  U.S. have since discovered violence of  
 
 
local opposn to Fr. or Italians return. 
 
Therefore proposals in my para. 13.  C.O. have promised help. C.N.S. 
C.O.S. in accord - esp. para. 10. - so long as Fr. document so drafted 
 
 
as to give us strategic facilities. H.M. 
Think F.O. right.  Need such a base. 
 
Shd., however, remind Cab. of H.D.'s view re
 overseas expenditure. 
 
 x/ 
Ty. think strategic worth be considered first - in comp. with  
 
 
Kenya plan and the Transjorden commitment. 
 
Cost £3½ m. over last 4 years.  On this plan £1 m. p.a. apart from  
 
 
any mil. expendre.  Too much for popn of ¼ m.  Ty. wd. prefer 
 
 
to stick to damage repair p'mme. P.L. 
India think Libya shd. be treated as whole:  & 2 countries be  
 
 
independent as early as possible. P.M. 
Give Doms. one week to comment. E.B. 
Smuts agrees. R.S.C. 
Para. 13 stands, whatever may happen.  This wd. help us to get trade in 
 
 
this area. A.B. 
If we have mil. bases we can't dissociate ourselves fr. social & 
 
 
economic condns of inhabitants. 
 
 
If we do, we have to spend more later. 
 
Support F.O. view on this, as against Ty. who take a short-term view. 

 
G.H. 
Support F.O. 


Agreed.  & consultn with Doms. 

                                                  [Exit C.O.S.  N. & Dugdale. 

                                                  [Enter  Oliver.  N. Edwds. 
 

## 5. Postponement Of Municipal Elections

 J.W. 
Less diffy. in Scotland.  But support memo. because risk of strike. G.H.O. 
As in memo.  Need to safeguard risk of strike - hence O. in C.  
 
 
proposal. 
 
Legn needed at once. 
 
Provn in 3rd schedule of 1933 Act.  To meet that, legn shd. provide  
 
 
that notice be given as soon as practicable after election. P.M. 
Why not foreseen?  Overtime abolished in August. 
 
Where is printing done? H.M. 
All over the country:  but S.O. makes contracts. P.M. 
Don't you want flexibility - need all the elections be p'poned. 
 
 
Uniform delay of 5 days mightn't meet the case in all areas. 
 
 
Why not empower l.a. to p'pone. for a period not exceeding  
 
 
x days. J.W. 
That is what I am suggesting for Scotland. A.B. 
V. diff. Parly. situation. 
 
What defence - v. argument tht. our democracy can't work in time. 
 
Any priority for this printing. 
 
Principle that elections shall be held on same day. P.M. 
Why can't it be printed? O. 
Because usually done in over-time hours.  No powers over printers. T.W. 
No overtime rule has created a new situation. E.B. 
Why weren't contracts w'drawn to Ldn., where no elections? H.M. 
Cdn't we improvise - { re-distribute printing orders. 

                { duplicate vice print. 

                { Order requiring priority. 

                { Consult Printers Union. 
 
Think further thght. shd. be given to these possibilities. 
 
 
Agreed:  H.M. to go into this, with a view to avoiding legn. 


[Exit  N. Edwards. 

 

## 6. Reciprocal Abolition Of Visas.

| E.B.                                       | Serious diff                                                      |
|--------------------------------------------|-------------------------------------------------------------------|
| ies                                        |                                                                   |
| in W. Europe.  Brake on movement.          |                                                                   |
|                                            | D.p. argument.  Doesn't arise.                                    |
|                                            | Want power to open disc                                           |
| ns                                         |                                                                   |
| - France, Holl., Belg. - then Scandinavia. |                                                                   |
|                                            | Tourist traffic:  we are losing on balance.                       |
|                                            | Want peoples of W. Europe to mix.                                 |
|                                            | Future - hope to get ppts issued thro' M/Labour offices.          |
|                                            |                                                                   |
| P.M.                                       | No restriction on tourists.  Decided only not to encourage.       |
|                                            |                                                                   |
| R.S.C.                                     | Cab. ruling not carried out.  c.f. last sentence of H.O. memo.    |
|                                            | But the rest                                                      |
| ns                                         |                                                                   |
| cd. be raised now.                         |                                                                   |
|                                            |                                                                   |
| P.M.                                       | Visa's - we previously thought it shd. be p'poned.  Think         |
|                                            |                                                                   |
|                                            |                                                                   |
| R.S.C.                                     | Strict exam                                                       |
| n                                          |                                                                   |
| at ports will be far worse than visas.     |                                                                   |
|                                            |                                                                   |
| G.H.O.                                     | The trouble is not undesirables but visitors intending residence. |
|                                            | Visa abolition will mean stricter control at ports.               |
|                                            |                                                                   |
| R.S.C.                                     | Favour abolition if port control is no more strict than pre-war.  |
|                                            |                                                                   |
| H.M.                                       | Save to the extent that Europe's conditions are unsettled.        |
|                                            |                                                                   |
|                                            |                                                                   |

 
 
C.M. 84(46).  
 
 
3rd October, 1946. 

| 1.                                         | Parliament.                       |
|--------------------------------------------|-----------------------------------|
| [Enter.  W.W.                              |                                   |
|                                            |                                   |
| H.M.                                       | Tues:                             |
|                                            | Mon:                              |
|                                            | Wed:                              |
| rd                                         |                                   |
| R. M/Ag.  Scotland watching.               |                                   |
|                                            |                                   |
|                                            | Thurs:                            |
|                                            | Frid:                             |
|                                            |                                   |
| R.S.C.                                     | India?                            |
|                                            |                                   |
| W.W.                                       | Oppos                             |
| n                                          |                                   |
| agree to defer, pending developmts.  Good. |                                   |
|                                            |                                   |
| J.                                         | H/L.  Tues/Wed:  2                |
| nd                                         |                                   |
| Rdg.  Nat. Health Bill.                    |                                   |
|                                            |                                   |
| A.                                         | Shall complete business in month. |
|                                            |                                   |

## 2. Returning Ministers.

 P.M. 
Welcomed J.L., A. and G.A.I. A. 
Attitude of Canadians. J. 
Pendg. case to Privy Council on ques. wtr. Canada can abolish appeal 
 
 
to Privy Council.  Likely to be decided tht. they can.  Then we  
 
 
put it on Canada to suggest what shd. be done. A. 
Fr. Canada will want to keep it. 

## 3. Enquiry Into Press.

 H.M. 
N.U.J. originated demand & feel strongly  a) reporters expected to 
 
 
write to order, even falsifying facts.  b) growth of groups subject 
 
 
to control of one man. 
 
 
Intrusion of views into news (part of (a)). 
 
Labour M.P.'s have tabled Motion - strongly supported. 
 
Problem:  functioning of Press in free democr. society.  As strong a  
 
 
case for enquiry into that as into B.B.C., which we have 
 
 
conceded. 
 
R. Commn might recommend legn.  Recognise diffy. of that.  But we 
 
 
cd. consider when Rpt. received. 

 
Judge - or ex-Judge or Sc. Judge - wd. be helpful:  give appearance 

|     |
|-----|
| ce  |
| .   |

 
P.Q. to P.M. for Tuesday (Marples). 
 

|                                                               | P.M.                                                                   | Feel gt. diffy.  The more R.C. brght. out evils, greater pressure for     |
|---------------------------------------------------------------|------------------------------------------------------------------------|---------------------------------------------------------------------------|
|                                                               |                                                                        | Govt. to act.  And how cd. we curb, esp. chains groups etc.               |
|                                                               |                                                                        | What help to expose evils, if result is demand for impossible             |
|                                                               |                                                                        | action.                                                                   |
|                                                               |                                                                        |                                                                           |
| R.S.C.                                                        | Dangerous to embark on enquiry w'out policy of own.  Launch this       |                                                                           |
|                                                               |                                                                        | enquiry & don't know how you can deal with results.                       |
|                                                               | Better have Cttee of Cab. to consider what policy we cd. adopt if      |                                                                           |
|                                                               |                                                                        | these facts were disclosed.                                               |
|                                                               |                                                                        |                                                                           |
| A.B.                                                          | Even so, favour enquiry.  Resultg. agit                                |                                                                           |
| n                                                             |                                                                        |                                                                           |
| wd. inspire solution.                                         |                                                                        |                                                                           |
|                                                               | Evil situation already exists - morale being weakened by daily diet of |                                                                           |
|                                                               |                                                                        | lies & half truths.  Inducing atmosphere of pessimism & daily             |
|                                                               |                                                                        | denigration.                                                              |
|                                                               | Vast area of corruption - salaries of columnists & expenses.           |                                                                           |
|                                                               |                                                                        | Newspaper spends only 12½ % of expend                                     |
| re                                                            |                                                                        |                                                                           |
| on editorial staff.                                           |                                                                        |                                                                           |
|                                                               | Proprietors aren't newspaper men.                                      |                                                                           |
|                                                               | D. Mail:  compens                                                      |                                                                           |
| n                                                             |                                                                        |                                                                           |
| paid on change of executives - mainly out of                  |                                                                        |                                                                           |
|                                                               |                                                                        | E.P.T.                                                                    |
|                                                               | During Squatting - Ev. Standard story re export of prefabs.            |                                                                           |
|                                                               | Must find out who owns newspp. - who the nominees represent etc.       |                                                                           |
|                                                               |                                                                        |                                                                           |
| R.S.C.                                                        | All this depends on wtr. we have any remedy to apply.                  |                                                                           |
|                                                               |                                                                        |                                                                           |
| T.W.                                                          | a) Wd. enquiry draw out the disgraceful points mentioned by A.B.?      |                                                                           |
|                                                               |                                                                        | Doubt it.                                                                 |
|                                                               |                                                                        |                                                                           |
| J.                                                            | I doubt that.  May get a whitewash.  We shall then look foolish.       |                                                                           |
|                                                               | Short of hostile x                                                     |                                                                           |
| mn                                                            |                                                                        |                                                                           |
| ,  doubt if facts will come out.  Witnesses will              |                                                                        |                                                                           |
|                                                               |                                                                        | be squared.                                                               |
|                                                               |                                                                        |                                                                           |
| G.A.I.                                                        | If we drop this now, and N.U.J. carry their resol                      |                                                                           |
| n                                                             |                                                                        |                                                                           |
| at T.U.C., what then?                                         |                                                                        |                                                                           |
|                                                               | Surely Govt. can't admit they have no remedy.                          |                                                                           |
|                                                               | Northcliffe was the first to draw attent                               |                                                                           |
| n                                                             |                                                                        |                                                                           |
| to danger of monopoly in                                      |                                                                        |                                                                           |
|                                                               |                                                                        | Press.  Get hold of his pamphlet.                                         |
|                                                               | Strong demand in U.S. for more inform                                  |                                                                           |
| n                                                             |                                                                        |                                                                           |
| re U.K.                                                       |                                                                        |                                                                           |
|                                                               |                                                                        |                                                                           |
| P.M.                                                          | But what remedy?                                                       |                                                                           |
|                                                               | Can you have Freedom of Press w'out Freedom to Lie?                    |                                                                           |
|                                                               |                                                                        |                                                                           |
| A.B.                                                          | Right to lie is democratic right:  but public have right to ascertain  |                                                                           |
|                                                               |                                                                        | wtr. speaker is a liar.                                                   |
|                                                               |                                                                        |                                                                           |
| E.Sh.                                                         | Only way to counter a lie is to emphasise truth.                       |                                                                           |
|                                                               | Why are N.U.J. so keen?  Because they fear monopolies, as threat to    |                                                                           |
|                                                               |                                                                        | empl                                                                      |
| t                                                             |                                                                        |                                                                           |
| .  Their right course is direct action.  If they are too weak |                                                                        |                                                                           |
|                                                               |                                                                        | to do so, R. Comm                                                         |
| n                                                             |                                                                        |                                                                           |
| won't help them.                                              |                                                                        |                                                                           |
|                                                               | Right line is to see tht. pp. which do support us get help & inform    |                                                                           |
| n                                                             |                                                                        |                                                                           |
| :                                                             |                                                                        |                                                                           |
|                                                               |                                                                        | and to see we are in pos                                                  |
| n                                                             |                                                                        |                                                                           |
| to counter lies in newspp.  Our Party                         |                                                                        |                                                                           |
|                                                               |                                                                        | propaganda isn't good enough:  & doubt if Govt. prop. is either.          |
|       | P.M.                                                               | How do you prevent a group getting power - or a paper distorting    |
|-------|--------------------------------------------------------------------|---------------------------------------------------------------------|
|       |                                                                    | the news.                                                           |
|       |                                                                    |                                                                     |
| A.    | a) Doubt if we cd. get the facts.                                  |                                                                     |
|       | b) Don't see how you cd. prevent a man from lying.                 |                                                                     |
|       | Reluctant to start this w'out knowing what we cd. do.              |                                                                     |
|       | Wd. prefer to approach this fr. angle of improving machinery for   |                                                                     |
|       |                                                                    | putting our                                                         |
| case. |                                                                    |                                                                     |
|       |                                                                    |                                                                     |
| P.M.  | Suppose we find K. group controls 100 newspp.  How cd. you         |                                                                     |
|       |                                                                    | check that?                                                         |
|       |                                                                    |                                                                     |
| A.B.  | Ascending scale of taxation on advertising revenue.                |                                                                     |
|       |                                                                    |                                                                     |
| P.M.  | That wd. hit independent equally with chain newspp.                |                                                                     |
|       | Problem = check multiple ownership.                                |                                                                     |
|       |                                                                    |                                                                     |
| A.B.  | Increased newsprint has gone into advertising vice news.           |                                                                     |
|       |                                                                    |                                                                     |
| P.M.  | Only new factor is increase in control by one man.  Tell me how we |                                                                     |
|       |                                                                    | cd. deal with that.                                                 |

 J. 
Nominee shareholders - you cd. deal with generally. 
 

| R.S.C.                          | That is covered by Cohen Report.                                      |
|---------------------------------|-----------------------------------------------------------------------|
|                                 |                                                                       |
| H.M.                            | The nub of the whole case of N.U.J. - reporters can't tell the truth. |
|                                 | New idea tht. you mustn't appoint a R. Comm                           |
| n                               |                                                                       |
| unless you know the             |                                                                       |
|                                 |                                                                       |
|                                 | P.E.P. have made a report on this.                                    |
|                                 | Reform newspp. or debunk them.  Let public know the truth.            |
|                                 | Strong feeling in Party & movement.                                   |
|                                 |                                                                       |
| P.M.                            | May have to hold enquiry now you've gone so far.                      |
|                                 | But consequences worry me.                                            |
|                                 | "Daily pessimism."  Alternative - directions what they are to say?    |
|                                 |                                                                       |
| A.B.                            | D. Mirror circulation 3½ m.  Maint                                    |
| d                               |                                                                       |
| its independence because shares |                                                                       |
|                                 |                                                                       |
|                                 |                                                                       |
|                                 |                                                                       |
|                                 |                                                                       |
| P.M.                            | Risk of being driven into Govt. control.                              |
|                                 |                                                                       |
| E.Sh.                           | Any other form of enquiry better.  Select Cttee?                      |

 

| H.M.                           | Too political.    |
|--------------------------------|-------------------|
|                                |                   |
| R.S.C.                         | Powers to get ev  |
| ce                             |                   |
| on oath.  Only by T. of E. (Ev |                   |
| ce                             |                   |
| ) Act.                         |                   |
|                                |                   |
| A.B.                                        | Believe a R. Comm                                                         |
|---------------------------------------------|---------------------------------------------------------------------------|
| n                                           |                                                                           |
| can take ev                                 |                                                                           |
| ce                                          |                                                                           |
| on oath.  This shd. be looked into.         |                                                                           |
|                                             |                                                                           |
| P.M.                                        | T. of r.  How to secure freedom (i.e. fr. control of interests as well as |
|                                             |                                                                           |
|                                             |                                                                           |
| A.B.                                        | Cd. J., R.S.C. & H.M. consider t. of r. & make recomm                     |
| ns                                          |                                                                           |
| .                                           |                                                                           |
|                                             |                                                                           |
| J.                                          | I will, if asked, try to get a Judge.  I have, however, ascertained tht.  |
|                                             |                                                                           |
| ask for a Judge.  Must be kept free fr. any |                                                                           |
|                                             |                                                                           |
|                                             |                                                                           |
|                                             | Wd. prefer Sir H. Hetherington.  General support for that.                |
|                                             |                                                                           |
| H.M.                                        | Names shd. be scrutinised by Cab. - or at least P.M.                      |
|                                             |                                                                           |
| J.                                          | Cd. we reserve final decision until we see t. of r. and names and         |
|                                             |                                                                           |
|                                             |                                                                           |
|                                             |                                                                           |
|                                             |                                                                           |
|                                             |                                                                           |
|                                             |                                                                           |
| c                                           |                                                                           |
| Neil.                                       |                                                                           |

## 4. Indian Food Requirements.

 J.S. 
Gave U.K. stock position and U.S. shipping prospects. P.M. 
Is this continuing need?  If we gave now, wd. we have to give again 
 
 
next year. R.S.C. 
Understood this was tempy failure in allotted supplies because of  
 
 
shipping strike. 
 
H.M. 
If so, it shd. be on loan. 
 
But wd. this cure trouble.  Wd. still have 233.000 t. deficiency.  Shd. 
 
 
we therefore start diverting.  Early experience was tht. diversions 
 
 
made U.S. believe U.K. had more than enough. 
 
Stressed M/F. argument v. maintaing. bread rationing here because 
 
 
shortage abroad. 
 
 
Fear help fr. us will increase reluctance of India to practice 
 
 
self-help. R.S.C. 
Case for loan, to meet gap due to specific cause, to tide over to 1947. 
 
Pol. position in India is now v. favourable.  Dangerous to damage that. J.S. 
No prospects of repayment. 
 
We haven't got anything fr. any source but Canada. 
 
Diversion for B. territory in S.E.A. (87.000 t) must have priority over 
 
 
this. 
 
 
How can I go on pressing Canada for the extra 40 m. bushels if I 
 
 
show I can spare this for India. 
|        | R.S.C.                                                               | State in India shd. make it clear tht. isn't a case of our being able to do    |
|--------|----------------------------------------------------------------------|--------------------------------------------------------------------------------|
|        |                                                                      | w'out it.                                                                      |
|        |                                                                      |                                                                                |
| J.S.   | Stocks now  }  729  wheat  +  248 flour at present.                  |                                                                                |
|        | in U.K.    }  737      ..     +  300    ..    at 1/11.               |                                                                                |
|        | Loss now of 100.000 t. might well mean that we shdn't get our stocks |                                                                                |
|        |                                                                      | above danger level all thro' winter.                                           |
|        |                                                                      |                                                                                |
| G.A.I. | More seaman's strike to come in Canada.                              |                                                                                |

 

| J.S.    | Canadian p'mme is lagging now - 113.000 t. down in Sept.    |
|---------|-------------------------------------------------------------|
|         |                                                             |
| R.S.C.  | Yet we added 100.000 t. in Sept.                            |

 

|    | J.S.                                      | But this is the stock bldg. season - before St. Lawrence closes in     |
|----|-------------------------------------------|------------------------------------------------------------------------|
|    |                                           | mid-Nov.                                                               |
|    | This time in 1945 stocks were 50% higher. |                                                                        |

 

B. 
P'mme is lagging because congestion in St. Lawrence. 

 

| E.Sh.           | Cd. the diversion be a loan v. expect                                    |
|-----------------|--------------------------------------------------------------------------|
| n               |                                                                          |
| from Argentine. |                                                                          |
|                 |                                                                          |
| J.S.            | Fear that Argentine wd. then cancel export licences:  either India's     |
|                 |                                                                          |
|                 | There are chances of swops - e.g. Can. barley via U.S. ports - against   |
|                 |                                                                          |
|                 |                                                                          |
|                 |                                                                          |
| G.H.            | S.E.A. territories worse than India:  no stocks at all:  living hand-to- |
|                 |                                                                          |
|                 | (regular source of supply) until Dec.  Ration 6½ or 7:  and India        |
|                 |                                                                          |
|                 |                                                                          |
| J.S.            | We have done much to help India:  cd. do more with detailed swops:       |
|                 |                                                                          |
|                 |                                                                          |
| P.M.            | 100.000 t. diversion can't be auth                                       |
| d               |                                                                          |
| .               |                                                                          |
|                 |                                                                          |
| P.L.            | Can we then get ships to lift the maize fr. the Argentine.               |
|                 |                                                                          |
| B.              | Yes.  Priority to Indian loadings can be given.                          |
|                 |                                                                          |
| J.S.            | If S.E.A. is to have priority:  I will try swops on barley & maize:  but |
|                 |                                                                          |
|                 |                                                                          |
| A.              | Open diversion wd. have bad effect in Canada.                            |
|                 |                                                                          |
|                 |                                                                          |
|                 |                                                                          |
|                 |                                                                          |

## 5. Japanese Merchant Ship-Building.

 

| P.M.                                                               | Summarised history.  Issue narrowed down to size of ship.              |
|--------------------------------------------------------------------|------------------------------------------------------------------------|
|                                                                    |                                                                        |
| H.M                                                                |                                                                        |
| c                                                                  |                                                                        |
| N.                                                                 | E.B. has re-considered & remains of same opinion.  Consequences        |
|                                                                    |                                                                        |
| n                                                                  |                                                                        |
| wd. be …                                                           |                                                                        |
|                                                                    | This wd. mean deficit area.                                            |
|                                                                    | Increased competition in textiles.                                     |
|                                                                    | Political animosity in Japan.                                          |
|                                                                    |                                                                        |
| R.S.C.                                                             | This is an attempt to give B. shipping preferential pos                |
| n                                                                  |                                                                        |
| over all                                                           |                                                                        |
|                                                                    |                                                                        |
|                                                                    | Thought we were cutting down only qua security.  Can't take into       |
|                                                                    |                                                                        |
|                                                                    |                                                                        |
|                                                                    |                                                                        |
| H.M.                                                               | Ty. not disturbed at latest proposal.  They want to improve J. balance |
|                                                                    |                                                                        |
| y                                                                  |                                                                        |
| .                                                                  |                                                                        |
|                                                                    | Cd. Japs run chartered ships vice                                      |
| bldg. them.                                                        |                                                                        |
|                                                                    | Agree our argument must rest on security grounds.                      |
|                                                                    |                                                                        |
| Edw.                                                               | Adm                                                                    |
| y                                                                  |                                                                        |
| case:  if we allow the larger type of vessel, they can transfer to |                                                                        |
|                                                                    |                                                                        |
|                                                                    |                                                                        |
|                                                                    |                                                                        |
| P.M.                                                               | Either you control or not.  If you do, you can prevent switch to war   |
|                                                                    |                                                                        |
|                                                                    |                                                                        |
|                                                                    |                                                                        |
| E.Sh.               a) Depends what you mean by "warship".         |                                                                        |
|                                                                    | You can construct a merchant ship wh. can be used as a warship.        |

                        b) Told tht. w'in 2 yrs. there will be a slump in B-ship building.  The less 
 
competition fr. Japan the better.  Why not restrict them to coastal. 

 R.S.C. 
That (b) is my real ground of objection. B. 
I support this primarily on security grounds.  Our own experience 
 
 
shows tht. ship-bldg. capacity is most important security 
 
 
guarantee for an island. 
 
 
Rapid conversion to warship-bldg. 
 
On b) there will be a serious contraction of B. bldg.  If J. competition 
 
 
then comes in, posn will be serious. A. 
Doms. have bn. consulted.  Austr. & N.Z. favour 2.000 on security  
 
 
grounds. 
 
 
S. Africa not keen, tho' favour some limitn for a period. T.W. 
How long can we hold down J. to these levels - on security or 
 
 
commercial grds. 
 

H.M. 
This is Allied policy - not B. alone. 
 
As the case can rest purely on security & Doms. favour it, we shd. 
 
 
support the memo. 
 
R.S.C. 
Remember this will damage our other industries. A.B. 
Surely Germany has taught us tht. we can't establish our prosperity 
 
 
by ruining our enemies.  Support R.S.C.  Only cure is to ensure 
 
 
prosperity of  J. not it's impoverishment. 
 
Security:  proper method is inspectn at "finishing" end.  Weapons  
 
 
can't then be made.  Anyhow next war is always waged with  
 
 
new weapons. 
 
P.M. 
Prime need is to decide what we are going to do with Japan. 
 
This is particular example of policy of destroying war potential.  Can't 
 
 
destroy it all. 
 
J. as an island can't live w'out merchant navy. 
 
U.S. support this - they are threatened more than we. P.L. 
Agreed with P.M. & A.B. J. 
Support memo. if limited to term of years.  Then we are with Doms. G.H. 
Agreed. J.J.L. 
Attempt to suppress J. will drive them to work thro' China. A.B. 
Period of years - this is the time when they are no danger. E.Sh. 
Why not let J. begin with coastal trade. P.M. 
Because she is an island:  needs more than coastal. J.W.     } 
Supported P.M. 
T.W.    } G.A.I.  } 
 
 
Agreed:  balance of opinion v. Admy. & M/T. 
 
                                                   [Exit  Barnes & Edwards.  J.J.L. 
 

## 6. International Employment Policy.

 H.M. 
Only issue for Cabinet is in para. 2 of covering memo. 

|                                     |                                                                      | Read telegram from P.J.  Dangerous views.  Won't pursue that now    |
|-------------------------------------|----------------------------------------------------------------------|---------------------------------------------------------------------|
|                                     |                                                                      | because C/E. made the appointment and isn't here.                   |
|                                     | Only ques. is wtr. internat                                          |                                                                     |
| l                                   |                                                                      |                                                                     |
| instit                              |                                                                      |                                                                     |
| ns                                  |                                                                      |                                                                     |
| like the Bank shd. play their part. |                                                                      |                                                                     |
|                                     |                                                                      |                                                                     |
| P.M.                                | Need for small group of Ministers to watch this while Conference is  |                                                                     |
|                                     |                                                                      | on.                                                                 |
| E.B.                                | Want our people to play down national action:  stress international. |                                                                     |

 R.S.C. 
Must deal with both.  Internatl ideas must be translated into national 
 
 
policies. 
 
And U.S. won't be represented. G.A.I. 
I.L.O. is considering this ques.  They shd. be brought in:  they may 
 
 
be useful. 

C.M. 85(46).  
 
 
10th October, 1946. 
1. 
Paratroopers in Malaya.                        [Enter  Bellenger & W.W. B. 
Statement to-day.  J.A.G. advise procdgs. can't stand:   & I'm 
 
 
quashing convictions. 
 
 
In view of misdirectn of evce of accused:  irregularities 
 
 
prejudicing accused. 
 
 
Trial as a whole unsatisf. 
[Exit  Bellenger. 
2. 
Parliament. 
 
H.M. 
Business for the week. J. 
Nuremburg Judgmt. - to be publd as Cmd. Paper. 
3. 
King's Speech Committee. P.M. 
Announced membership. 
[Exit  W.W. 
4. 
Palestine. P.M. 
Take note only.  Discuss when E.B. available. 

5. 
South West Africa. 

 
P.M. 
As in brief. A. 
S.A. will strongly resist independent U.N. enquiry & will expect our  
 
 
support. 
 
Earlier Cab. formula will, they think, reflect on them. 
 
Asked Hailey (out there) for his view:  he has no doubt (i) fair  
 
 
explann given  (ii) opinion of natives freely given  
 
 
(iii) consultns were in accord with normal tribal practice. 
 
Enquiry made was as good as any you will get. 
 
If we don't support them, they will assume we doubt their bona fides. 
 
Will gravely prejudice our relations with S. Africa. P.M. 
Not a ques. wtr. we think this fairly done - ques. of precedent for  
 
 
action elsewhere.  Will mean we must accept enquiry done by  
 
 
other people's local officials. 
McN. 
Fair chance Smuts will lose this at Assembly. 
 
Para. 7. goes beyond support at Assembly.  Such a statement wd. go  
 
 
far qua precedent.  At least say we will await what evce is submd  
 
 
in Assembly Debate. P.M. 
Parallel case.  P.M. of a Balkan State:  we believe it to be all crooked: 
 
 
USSR. say it's all properly done:  we shd. then have to accept it. 
 
We are satisf. if the methods adopted prove agreeable to U.N.  But  
 
 
can we run ahead of that and say we are satisf. now
. 
 
Wd. be diff. if some disinterested persons had been there. 
 
Stupid of Smuts not to have done so. C.J. 
Also form of ques. was unfortunate.  Alternative govt. by another 
 
 
Power. 
 
 
That wasn't the issue. 
 
Public endorsement of Smuts appln now wd. embarrass us  i) in considn
 
 
of our own agreemts. in U.N.  ii) in controversies in Kenya etc.,  
 
 
where local Europ. opposed our trusteeship proposals. A. 
This is diff. Mandate - territory was to be treated as integral part of 
 
 
Union. P.M. 
Same as Austr. & N.Z. Mandates (C.) A. 
Suppose we defer expressing a view - we'll have to decide then. P.M. 
Cd. we not support Smuts appln if
 U.N. satisfied with methods used. 
 
Read out formula provided by R.S.C.  Confidence in S. Afr. intentns
 
 
tho' for U.N. to say wtr. they are satisfied that it is enough. C.J. 
Try to persuade Smuts to p'pone.  M'while Trust. machinery wd. be 
 
 
establd:  and we might get somewhere on ques. of citizenship. 
 
Needn't come to Assembly.  Can carry on pro tem. under mandate. 
 
 
This wd. ease tension among Africans. A. 
He has given notice.  He dared w'draw it - for fear of Malan etc. 
 
He will go on - & we shall have offended him to no purpose.   Agreed. 
 
No hope of getting him to p'pone. 
P.M. 
Get P.Q. p'poned.         Agreed. C.J. 
Still leaves the embarrassmt. for us in negotiating our Trust.  
 
 
agreements at U.N. P.M. 
This formula leaves it to U.N. 
 
Talk to Smuts when he arrives.  (Agreed.) about the line we may have  
 
 
to take in discns at U.N.  See wtr. R.S.C. formula wd. meet him. 
 
 
McN. 
Find out, too, what Smuts will do if defeated in U.N. 

## 6. Nuremberg Sentences.

 P.M. 
Telegram re Nuremburg sentences. 
 
Jodl wants to be shot vice hanged.  U.S. & Fr. favour it.  Others  
 
 
opposed. 
 
Need we intervene?  Can we allow it to be settled by C. Council. P.M. 
Von Papen:  wants to return to place where arrested.  Then he will be 
 
interned under Cat. 2. - for wh. maximum penalties not yet  
 
 
prescribed. H.M. 
Why not let him go to B. Zone and get interned?  Good for him. 
 
R.S.C. 
What alternative? J. 
Don't appear to try again a man whom the court has acquitted. A.B. 
   ..          ..     ..  be giving him sanctuary. P.M. 
Instruct not to admit to B. Zone. 

## 7. Importation Of Danish Meat.

 T.W. 
View of my vet. staff v. strong.  All our experience indicates there is 
 
ground for apprehensions - details of outbreaks in Denmark. 
 
 
Not enough to stop imports if outbrk. occurs - damage wd. then 
 
 
be done.  We shd. lose our herds & our milk. 
 
Ton for ton D. meat no more dangerous than Argentine.  But door to 
 
 
Europe wd. be open with what consequences?   
 
A. 
Might backslide.  Our reputn for pedigree stock might suffer. P.M. 
Denmark gets on well enough with f. & m. T.W. 
Pedigree stock.  U.S. restrict admn even now to cattle wh. has bn. 
 
 
in quarantine for 6 wks. in Canada. 
 
For Cab. to decide wtr. need for meat is so great as to over-ride this  
 
risk. 
 
L.P. Cttee seemed on this occasion to be biased v. the vets!  Wished  
 
therefore to be sure Cab. agreed to run this risk. 
 
If U.S. zone wants meat from us, cdn't Danish meat go there? 
 
Are we re-exporting any foreign meat? P.M. 
Can't Denmark take precautions wh. we have insisted on in Argentine. 
 
 
The Dan. adminn is better surely? T.W. 
They wd. do their best.  But opens another source. 
 
| J.S.                                                    | Danes willing to accept all the conditions wh. we impose on Argentine   |
|---------------------------------------------------------|-------------------------------------------------------------------------|
|                                                         | U.S. Zone point.  We haven't agreed to make the loan:  & won't unless   |
|                                                         | they assure us of repaymt. of 30,000 t. wh. we lent last year.          |
|                                                         |                                                                         |
| A.                                                      | Ev                                                                      |
| ce                                                      |                                                                         |
| that f. & m. is spread by imported meat is v. doubtful. |                                                                         |
|                                                         | Care & admin                                                            |
| n                                                       |                                                                         |
| of Danes much better than in Argentine.                 |                                                                         |
|                                                         | Balance in favour of the meat.                                          |
|                                                         |                                                                         |
| J.W.                                                    | Support the case put by T.W.                                            |
|                                                         |                                                                         |
|                                                         |                                                                         |
| E.Sh.                                                   | Then may we take firm decision on extra meat for miners.                |
|                                                         |                                                                         |
| J.S.                                                    | I am ready to go ahead.                                                 |
|                                                         |                                                                         |
| P.M.                                                    | Wait until I have received T.U.C. deput                                 |
| n                                                       |                                                                         |
| ?                                                       |                                                                         |
|                                                         |                                                                         |
| E.Sh.                                                   | T.U.C. have agreed.  They are coming to you only on procedure.          |
|                                                         |                                                                         |
| P.M.                                                    | Decide:  but p'pone announcement until after T.U.C. deput               |
| n                                                       |                                                                         |
| - if                                                    |                                                                         |
|                                                         |                                                                         |
|                                                         |                                                                         |
|                                                         |                                                                         |
|                                                         |                                                                         |

 

## 8. A) Mr Churchill'S Book.

 P.M. 
E.B. had said publn wd. be awkward at the moment.  But publn won't 
 
 
be for 2-3 years. 
 
Objns to earlier applns taken on basis of damaging confl. relations: 
 
 
secrecy of documents:  foreign relations. A. 
Considered from angle of Doms.  Told tht. his telegrams to Dom: 
 
 
Ministers were frank & aggressive.  E.g. to Curtin.  W.S.C.  
 
 
plan is to give his text and only gist of reply.  Dom. Ministers 
 
 
wd. object.  Can't let him publish w'out consent of Dom. Govt. 
 
 
concerned - either his message or the reply. R.S.C. 
Not for them to consent to his message.  That is for us to censor, at 
 
 
the 2nd stage when he submits his book, on grounds of inter-Dom. 
 
 
relations. 
 
McN. 
W.S.C. evidently envisages this procedure. 


Agree with the general line. 
 
McN. 
No interim publn? P.M. 
No. 
 

                        b) 
Sherwood's Life of Harry Hopkins. 
 

| P.M.                                                  | Appl                                       |
|-------------------------------------------------------|--------------------------------------------|
| n                                                     |                                            |
| for leave to publish documents produced to Hopkins by |                                            |
|                                                       |                                            |
|                                                       | Have exam                                  |
| d                                                     |                                            |
| documents - no obj                                    |                                            |
| n                                                     |                                            |
| involved.                                             |                                            |
|                                                       | Suggest we agree so far as concerns H.M.G. |


## 1. U.S. And Canadian Dry Cargo Shipping.

 B. 
Dilemma:  U.S. Govt. may be forced to w'draw ships on  
 
 
charter (3 m. tons to us). 
 
Deficiency:  4-5 m. tons due to war:  bridged by b.b.  
 
 
chartering 1 m. fr. Canada & 2.8 fr. U.S.A. plus voyage 
 
 
chartering 50/60 U.S. ships. 
 
Ask therefore for authy to purchase 75 U.S. ships (750.000 t) - 
 
 
so as to sweeten U.S. to continue chartering remainder. 
 
75 Liberty ships cd. be re-sold to U.S. (? Br.) owners hereafter. 
 
Later ques:  shall we be forced to buy the ships we voyage- 
 
 
charter?  Effects on B. ship bldg.  We are aiming at  
 
 
stabilising it at 90.000 men over 10 years.  If we're forced to 
 
 
buy the extra 50/60 ships it will depress B. bldg. 
 
 
Shan't therefore consider that unless forced to it.  Want authy
 
 
then to assure builders & owners tht. they will be taken off 
 
 
market after 4/5 years if they then threaten B. bldg. 
 
Finance not serious factor - represents what we wd. pay in hire over 
 
 
3 years. P.M. 
All based on assumptns re import/export p'mmes.  Any allowance  
 
 
made for revival of carrying trade? B. 
Our bldg. p'mme wd. meet that.  Fear it mayn't materialise. H.D. 
Procedure - brght up as isolated case:  not thro' Exchange Requiremts. 
 
 
Cttee. tho' they were asked to do so.  Will M/T. chase his 
 
 
officials? 
 
But on merits  a)  we must buy the 75 ships on private account.  Dollar 

          cost will write off in 2 yrs. & ships will last longer. 

     b)  we must have 35 Baltic coasters. 

     c)  addl. purchases of Govt a/c:  I can't agree yet 

          because data not supplied to Ty. B. 
Don't need decision on c) now, but thought it right to inform Cabinet. H.M. 
Hurcomb shd. not be hustled by U.S. into buying more than U.K. 
 
 
needs. G.H. 
Concerned only with effect on B. bldg.  Hope M/T. will keep in touch 
 
 
with Shipbldg. Advisory Cttee on this because t. of r. include  
 
 
effects on future bldg. A.B. 
Abnormal rates of freight shown by these calculns re capital cost  
 
 
written off in 2 yrs.  Timber prices to be raised because freight 
 
 
rates.  Shdn't whole ques. of freights be examined? 
 

B. 
That's why we may have to buy c).  But if we do, we damage B. bldg. P.M. 
Let M/T. put in a memo. on freight rates. 
 
G.A.I. 
Para. 12.  B. bldg. replacing obsolete ships.  Avoid shortage of work in 
 
 
our yards at time of next election. E.Sh. 
Memo. based on assumptn tht. U.S. & Canada will demand re-delivery. 
 
 
What evidce? B. 
My own impression fr. U.S. Govt. E.Sh. 
Cab. considered purchase before & were against it.  Aren't U.S. 
 
 
pushing this too hard.  They're getting high freight rates.  Why 
 
 
shd. they want to sell, except to be rid of old junk.  Our owners 
 
 
so regard it.  They will then ask us for scrap & build policy. H.D. 
On facts as now it's good business.  How cd. we control the high 
 
 
rates. 


Agreed on a) and b) 

                 c) reserved for discn with Ty. 


M/T. to submit mema on  { freight rates 

                                        {  age of B. mercantile marine 

                                        {  revival of carrying trade. 

                                [Exit  Barnes & Hall.   Enter  Wilson. 
 
2. 
International Commodity Policy. R.S.C. 
Want same line on F.A.O. and I.T.O.  This accords with earlier decns. 

 
P.M. 
One doubt:  helping countries with less purchasing powers - cost to  
 
 
fall on producers with no contn fr. importing countries.  Will they 
 
 
accept that. R.S.C. 
It's all for benefit of producers - they shd. carry it. P.M. 
Mayn't you have to make concession on that? R.S.C. 
Yes:  but we start as in memo. P.M. 
Not too flat-footed. 
 
the benefit of others.  Can't accept any further commitment for
H.D. 
Can't have burden accepted w'out reference back.  B. use of dollars for  


improvident good nature expendre. R.S.C. 
Add:  no concession on this w'out reference back. J.S. 
Price differential v. diff because concealed. 
| H.M.                                                    | Agree with memo.                                                          |
|---------------------------------------------------------|---------------------------------------------------------------------------|
|                                                         |                                                                           |
| T.W.                                                    | So do we.                                                                 |
|                                                         |                                                                           |
|                                                         |                                                                           |
|                                                         |                                                                           |
| 3.                                                      | Excavators.                                                               |
|                                                         | [Exit  M                                                                  |
| c                                                       |                                                                           |
| neil.                                                   |                                                                           |
|                                                         |                                                                           |
| R.S.C.                                                  | Decisions by Coal Cttee held to cover order of excavator for Finnish      |
|                                                         |                                                                           |
|                                                         |                                                                           |
|                                                         |                                                                           |
|                                                         | Will Cab. decide wtr. requisitioning powers of this kind cover goods      |
|                                                         |                                                                           |
|                                                         |                                                                           |
| E.Sh.                                                   | Quoted Coal Cttee decision.  B/T. represented at the mtg.                 |
|                                                         | This excavator is being delivered now                                     |
| to a pit:  will be erected in                           |                                                                           |
|                                                         |                                                                           |
|                                                         | It gives only 50 yds. of the 500 priority.  Will yield 40.000 t. of       |
|                                                         |                                                                           |
|                                                         | Want to increase open-cast yield because drop in mined coal prod          |
| n                                                       |                                                                           |
| .                                                       |                                                                           |
|                                                         |                                                                           |
|                                                         |                                                                           |
|                                                         |                                                                           |
|                                                         | Priority is or isn't priority.  Can't have exceptions.                    |
|                                                         |                                                                           |
| P.M.                                                    | What sequence of events?                                                  |
|                                                         |                                                                           |
| R.S.C.                                                  | They ordered this some time before 1/8.  They built special ship to       |
|                                                         |                                                                           |
|                                                         | Thought alloc                                                             |
| n                                                       |                                                                           |
| wdn't apply to such orders. - property of foreign Govt. |                                                                           |
|                                                         |                                                                           |
| E.Sh.                                                   | My file goes back to Dec. 1945.  Corr                                     |
| ce                                                      |                                                                           |
| with Stokes M.P.                                        |                                                                           |
|                                                         |                                                                           |
| P.M.                                                    | Were you contemplating requisitioning it there?  Not until August.        |
|                                                         |                                                                           |
| A.B.                                                    | E.Sh. has had v. generous treatment over excavators.                      |
|                                                         | Set 40.000 t. of coal v. 200.000 standards of timber.  Timber wins!       |
|                                                         |                                                                           |
| E.Sh.                                                   | 15/8. Minute:  shows we cleared this with other Dpts.  F.O., B/T. and     |
|                                                         |                                                                           |
|                                                         |                                                                           |
| H.M.                                                    | L.P. Cttee 27/9 were concerned with new prod                              |
| n                                                       |                                                                           |
| on 1947.                                                |                                                                           |
|                                                         | Clear tht. on 1/8 Coal Cttee hadn't in mind this export machine.          |
|                                                         |                                                                           |
|                                                         | Cab. cd. also help to enforce L.P. Cttee decision of 27/9 re              |
|                                                         |                                                                           |
|                                                         |                                                                           |
| P.M.                                                    | I will send strong note to Serv. Dpts.  A more legitimate spoil for E.Sh. |
|                                                         |                                                                           |

P.M. 
In future - no absolute priority anyway except by Cab. 
 
L.P. to allocate. 
 
This excavator must go to Finland. 


[Exit  Wilson. 
 
4. 
Parliament. A. 
When can I get Coinage Bill? H.D. 
Probably after Friday next. 
5. 
China:  Request for Arms. 
 
P.M. 
Telegram fr. E.B.  Arms for China - to attack Communists. 

 
E.B. recommd refusal of request. 

 
I have informed him I agree. 

## 1. Parliament.

 
Business for week. 

## 2. Paris Peace Conference.

 P.M. 
Welcomed E.B. on return fr. Paris. E.B. 
Conference of polemics not Peace. 
 
Diffy. thro' attendce of Press at all mtgs incldg. Sub-Commns. 
 
 
Prevented any tentative suggns:  led to spkg. to Press vice 
 
 
Conference:  hardened lines of division betwn. blocs. 
 
Diffy. goes back to D.P.M. - Evatt's views.  I decided to raise it 
 
 
with Ministers on C.F.M. but Evatt had sent message to Byrnes 
 
 
in advance & he sprung it at C.F.M. mtg.  I had to support it.  
 
 
Sympathise however with Molotov.  We agreed Moscow tht. 
 
 
Conf. wd. be held when drafts ready.  We have never got the 
 
 
atmosphere right since.  Followed by row in Security Council 
 
 
over veto re Franco.  That was transferred back to Paris - 
 
 
& 2 wks' wrangle over procedure.  Private mtg. of 4 = my  
 
 
resoln on method of reportg. by Commns to Plenary was  
 
 
accepted - on the 2/3rds & simple majority point. 
 
Later, when here ill, feared Confce was getting into disrepute. 
 
 
Returned (prematurely):  seized on M. King's idea of periodical 
 
 
mtgs of the 4:  they responded to this:  agreed as to when we 
 
 
were commd to support C.F.M. recommns & when we cd. take 
 
 
another line.  Progress thro' mtgs of Deputies. 
 
Out of hand again when I came back to Ldn.  On my return, got them 
 
 
to accept time-table to finish by 15/10. 
 
Attitude of Doms.  Evatt tabled 75 amendmts:  no consultn with us: 
 
 
then left. 

 
 
They complain when we do somethg. they

 don't like - but  

 
 
never consult us when they differ.  Must raise this at mtg. of  
 
 
D.P.M.  A.V.A. got them workg. Together thro' officials - Beasley  
 
 
was specially helpful. 
 
 
Smuts was diff. over Ital. Colonies, wh. he wanted decided now. 
 
 
Later he recognised we had bn. right in counselling delay. 
 
Gt. problem was Trieste.  With Danzig in our minds, we proposed 
 
 
Govr. shd. have strong reserve powers mainly for public order. 
 
 
Denounced by M. as B. colonial system.  Then put in 2 more  
 
 
drafts, alternatives.  That ran into trouble with U.S. & France. 
 
 
Other drafts then threatened.  Ultimately one draft & one 
 
 
Russian.  B. compromise incorporatg. some features of others 
 
 
succeeded. 

|             |
|-------------|
| n           |
| .  May have |

 
 
to give somethg. more to Yugosl. e.g. Pola, not Gorizia. 

|                                                   |                                                                       | Agreement betwn. Italy & Austria = one of best events during      |
|---------------------------------------------------|-----------------------------------------------------------------------|-------------------------------------------------------------------|
|                                                   |                                                                       | conference.  So with Trieste - if Yugosl. & Italy can agree on a  |
|                                                   |                                                                       | settlement I won't insist on ours.                                |
|                                                   | Full written report on Conference is in prep                          |                                                                   |
| n                                                 |                                                                       |                                                                   |
| .                                                 |                                                                       |                                                                   |
|                                                   | Another most acute problem is Danube.  Won't be settled on M/T.       |                                                                   |
|                                                   |                                                                       | principle of limiting cabotage to country of origin.  But believe |
|                                                   |                                                                       | some solution may be found on other lines.                        |
|                                                   | Oil - first mention of it aroused hostility of whole Conference.  Oil |                                                                   |
|                                                   |                                                                       | cos. v. unpopular.  Not one U.S. delegate wd. spk. in my support. |
|                                                   |                                                                       | Will continue to seek some solution - M/F & P. have good case, -  |
|                                                   |                                                                       | but can't be optimistic.                                          |
|                                                   | Believe the 2/3                                                       |                                                                   |
| rds                                               |                                                                       |                                                                   |
| decisions will mostly be accepted.  Some majority |                                                                       |                                                                   |
|                                                   |                                                                       | views may have some weight.  Danube may get solved.               |
|                                                   | Diffy = we've begun with periphery & G. & Japan loom in b'ground.     |                                                                   |
|                                                   | Tactics:  not replying to abuse & getting on with work in             |                                                                   |
|                                                   |                                                                       | Sub-Comm                                                          |
| ns                                                |                                                                       |                                                                   |
| - have strengthened our pos                       |                                                                       |                                                                   |
| n                                                 |                                                                       |                                                                   |
| & won us                                          |                                                                       |                                                                   |
|                                                   |                                                                       | compliments even fr. Russians.                                    |
|                                                   | Overshadowing conference is atomic bomb - how it will be used -       |                                                                   |
|                                                   |                                                                       | long-range bombers.  Fear overhangs all Delegations.  Statesmen   |
|                                                   |                                                                       | must overcome that, by devising Peace tht. will make atomic       |
|                                                   |                                                                       | bomb unnecessary.                                                 |
|                                                   |                                                                       |                                                                   |
| P.M.                                              | Thanks to E.B. & to A.V.A. for their work in Paris.                   |                                                                   |
|                                                   |                                                                       |                                                                   |
| E.B.                                              | F.O. staff.  Sub-Comm                                                 |                                                                   |
| ns                                                |                                                                       |                                                                   |
| in public.  Some new entrants did v. well         |                                                                       |                                                                   |
|                                                   |                                                                       | in this.                                                          |
|                                                   |                                                                       |                                                                   |
| A.V.A.                                            | Serious side of R. attitude - shown thro' contacts with staffs.       |                                                                   |
|                                                   |                                                                       | E.g. C.R.A. must be a Fascist because rode in carriage with       |
|                                                   |                                                                       | W.S.C.                                                            |
|                                                   |                                                                       |                                                                   |

3. 
Administration of Wales & Monmouthshire. 

 H.M. 
As in memo.  If approved, motion cd. be shown to-day to G. & 
 
 
Mainwaring. W.W. 
Chair agrees tht. this formula wd. allow of debate on S of S. A.B. 
Can't find in Wales any real support for this.  Fear Welsh M.P.'s 
 
 
have fallen into mere demagogy - helped by Grenfell's 
 
 
disgruntlement. 
 
 
This is now supported by W. Mail. 
 
 
Can't we lever the Labour members out of this unwelcome 
 
 
coalition. H.D. 
Main T.U. offls. are sound on this.  Guide some of this into Reg. 
 
 
Councils where T.U. more hard than at Westminster.   [Exit  C.E. P.M. 
Remember second point - fear of economic depression. 
 
Welsh Day in H/C. - speakers? 
|                                   | H.M.                                                            | A.B. shd. reply to debate.  Opening speech J. Griffiths?  My own     |
|-----------------------------------|-----------------------------------------------------------------|----------------------------------------------------------------------|
|                                   |                                                                 | fear is tht. Welsh M.P.'s might say he has no Dpl. influence or      |
|                                   |                                                                 | concern.                                                             |
|                                   |                                                                 | Alternatives:  P.M. or R.S.C. (because industrial & economic         |
|                                   |                                                                 |                                                                      |
|                                   |                                                                 |                                                                      |
|                                   |                                                                 |                                                                      |
| H.D.                              | Key-point = fear of unemployment.  Thus, stress economic side.  |                                                                      |
|                                   |                                                                 | R.S.C. most effective cont                                           |
| n                                 |                                                                 |                                                                      |
| - let him tackle it primarily fr. |                                                                 |                                                                      |
|                                   |                                                                 | economic angle & get that emphasised at outset.                      |
|                                   |                                                                 |                                                                      |
|                                   |                                                                 |                                                                      |
|                                   |                                                                 |                                                                      |
|                                   |                                                                 |                                                                      |
| H.D.                              | Points on W. Paper.  Procedure for re-examination?              |                                                                      |
|                                   |                                                                 |                                                                      |
| H.M.                              | Ty. prepared it:  & we discussed at L.P. Cttee last week.       |                                                                      |
|                                   | Put your points to Ty. officials referring to H.M. if required. |                                                                      |
|                                   |                                                                 |                                                                      |
|                                   |                                                                 |                                                                      |

## 4. Enquiry Into The Press.

 H.M. 
Recalled previous discussion.  Summarised memo. 
 
T. of r.  Amendment as noted in ms. on my copy - appd. 
 
Membership.  We excluded  { members of Parlt. 

                           {  practising journalists. 
 
Powers.  Addnl recommn:  announce tht. Govt. reserve the right, 
 
 
if it became necessary, to apply Trib. of Evidence Act. 1921. 
 
Names - gave supplementary informn. P.M. 
Views on main issue? 
 
R.S.C. 
Still believe not right moment:  no idea how we wd. handle it:  wd.  
 
 
like poss. action to be considered first. J. 
Agreed.  Danger of flop, if they find nothing. H.D. 
RSC.'s argument goes too far - why appoint any R. Commn.  Believe 
 
 
such an enquiry wd. be useful - Commn might invent a policy. 
 
This ought to be altered.  We are too busy to invent a policy.  Let us 
 
 
devolve it on Commn.  Also value m'while in exposing the 
 
 
racket. A.B. 
Examn of t. of r. confirms my earlier view. 
 
Mistake not to go on now, after publicity given. 
 
Time for us to go over to offensive.  Newspp. have created climate 
 
 
of public opinion unfavourable to us.  Agencies at disposal of  
 
 
Govt. are v. few.  If we do nothing, we shall have to invent other 
 
 
means of getting offl. Govt. statements across to the public. 
 
As State increasingly intervenes in econ. affairs - & long-term plans  
|                                      |                                                                        | involve short-term deprivations - increasingly nec. for State to be    |
|--------------------------------------|------------------------------------------------------------------------|------------------------------------------------------------------------|
|                                      |                                                                        | enabled to get public ear.                                             |
|                                      |                                                                        |                                                                        |
| E.W.                                 | Need for realism.  Freedom of Press being used to create bogey wh. is  |                                                                        |
|                                      |                                                                        | screen for handful of rich men opposed to our economic policy.         |
|                                      |                                                                        | They are ruthless.  Seen how this was done in U.S. - strike of         |
|                                      |                                                                        | newsboys v. New Deal.                                                  |
|                                      | Best weapon = facts.  We want free Press:  don't threaten it.          |                                                                        |
|                                      | Ques:  can the evidence be secured to prove monopoly control & link    |                                                                        |
|                                      |                                                                        | with the individuals I have in mind.                                   |
|                                      |                                                                        |                                                                        |
| G.A.I.                               | Support enquiry.  Concerned re                                         |                                                                        |
| provincial Press, whose independence |                                                                        |                                                                        |
|                                      |                                                                        | is being undermined by monopolists.  cf. Bristol re-action:            |
|                                      |                                                                        | started a new paper when monopoly bought up the old.                   |
|                                      | The nationals are now invading Scotland.                               |                                                                        |
|                                      | Mere elucidation of facts will be of value - will show Press lords are |                                                                        |
|                                      |                                                                        | limiting freedom of Press.                                             |
|                                      |                                                                        |                                                                        |
| E.B.                                 | I agreed with R.S.C. - not the time.  Esp. if no leg                   |                                                                        |
| n                                    |                                                                        |                                                                        |
| is intended.                         |                                                                        |                                                                        |
|                                      |                                                                        | What is purpose?  Ascertain ownership?  Can be done by                 |
|                                      |                                                                        | enquiry at Somerset House.  Transpt. House cd. do it as Party          |
|                                      |                                                                        | propaganda.                                                            |
|                                      | But if State intervenes, where do you get?  Trust deed of D. Herald.   |                                                                        |
|                                      |                                                                        | Who directs Reynolds?                                                  |
|                                      | Are we going in for a State newspaper?                                 |                                                                        |
|                                      | This is a matter for the Party not Govt.                               |                                                                        |
|                                      | Will be misunderstood abroad.                                          |                                                                        |
|                                      | Do we intend exposure with no subseqn. leg                             |                                                                        |
| n                                    |                                                                        |                                                                        |
| ?  Who will face leg                 |                                                                        |                                                                        |
| n                                    |                                                                        |                                                                        |
| ?                                    |                                                                        |                                                                        |
|                                      | What is purpose of R. Comm                                             |                                                                        |
| n                                    |                                                                        |                                                                        |
| ?                                    |                                                                        |                                                                        |
|                                      | Won't protect journalists.                                             |                                                                        |
|                                      | On experience of D. Herald, diffy. was to get Labour view presented as |                                                                        |
|                                      |                                                                        | we wanted when journalists were given independence.                    |
|                                      | Why do this?  We've won the election w'out Press.  Public was          |                                                                        |
|                                      |                                                                        | influenced more by speeches than by newspapers.                        |
|                                      | Reuters - in Coalition Govt.  I advocated getting B.B.C. to run world  |                                                                        |
|                                      |                                                                        | agency & develop that instead of sponsoring Reuters.  Ownership        |
|                                      |                                                                        | of Reuters is worst example of monopoly.                               |
|                                      | Enquiry may do more harm than good unless we are going to reform it.   |                                                                        |
|                                      |                                                                        |                                                                        |
| P.M.                                 | The more you expose the evils, the more you will be pressed to         |                                                                        |
|                                      |                                                                        | produce yr. remedy.  This means a) Govt. newsp. or b) control          |
|                                      |                                                                        | wh. wd. be said to limit Freedom of Press.  What alternative will      |
|                                      |                                                                        | R. Comm                                                                |
| n                                    |                                                                        |                                                                        |
| produce?                             |                                                                        |                                                                        |
|                                      |                                                                        |                                                                        |
| T.W.                                 | No practical remedy likely to be found.                                |                                                                        |
|                                      | Monopolistic tendency is however, dangerous.  Wd. be advantage to      |                                                                        |
|                                      |                                                                        |                                                                        |
|                                      |                                                                        | bring out the consequences of this.  Wd. prefer to have it             |
|                                      |                                                                        | restricted to monopoly point. - omit ref                               |
| ce                                   |                                                                        |                                                                        |
| to financial structure.              |                                                                        |                                                                        |
|                                      |                                                                        |                                                                        |
|                                                          | A.V.A.                                                                 | Have bn. away - don't know what N.U.J. case is.  Their remedy is    |
|----------------------------------------------------------|------------------------------------------------------------------------|---------------------------------------------------------------------|
|                                                          |                                                                        | thro' T.U. methods.                                                 |
|                                                          | Inform                                                                 |                                                                     |
| n                                                        |                                                                        |                                                                     |
| re ownership is available now.  15/= book by P.E.P.  The |                                                                        |                                                                     |
|                                                          |                                                                        | Labour Party can use & exploit that.                                |
|                                                          | Pol. re-actions will be damaging.  Appt                                |                                                                     |
| mt                                                       |                                                                        |                                                                     |
| of some R. Comm                                          |                                                                        |                                                                     |
| ns                                                       |                                                                        |                                                                     |
| has                                                      |                                                                        |                                                                     |
|                                                          |                                                                        | re-acted on apptg. Govts.  e.g. 1924 Comm                           |
| n                                                        |                                                                        |                                                                     |
| on Food Prices.                                          |                                                                        |                                                                     |
|                                                          |                                                                        | If we enquire & can't cure, it is us who will suffer.               |
|                                                          | U.S. views on our leaning to Moscow.  Won't help that to interfere     |                                                                     |
|                                                          |                                                                        | as Govt. with this.                                                 |
|                                                          |                                                                        |                                                                     |
| P.L.                                                     | Against.  Don't see what fresh facts you will elicit.  Unwise to start |                                                                     |
|                                                          |                                                                        | unless we have some idea what cd. be done.                          |
|                                                          |                                                                        |                                                                     |
| E.Sh.                                                    | Disturbed by arguments against.  "No R. Comm                           |                                                                     |
| n                                                        |                                                                        |                                                                     |
| unless solution                                          |                                                                        |                                                                     |
|                                                          |                                                                        | known"  "T.U. action by N.U.J."  "Transpt. House shd.               |
|                                                          |                                                                        | do this."                                                           |
|                                                          | We aim at freedom of Press.  There is none.  What do we mean? -        |                                                                     |
|                                                          |                                                                        | that a reputable journalist shd. be free to express his opinions:   |
|                                                          |                                                                        | that news be objectively presented.  They cd. get more of that      |
|                                                          |                                                                        | if facts disclosed.                                                 |
|                                                          | On balance, I'm in favour.                                             |                                                                     |
|                                                          |                                                                        |                                                                     |
| A.G.                                                     | Don't like this.  But imp                                              |                                                                     |
| n                                                        |                                                                        |                                                                     |
| created tht. we are going to do something.               |                                                                        |                                                                     |
|                                                          |                                                                        | Bad effect if we now w'draw.  Victory for Press Lords.  We've       |
|                                                          |                                                                        | gone too far to w'draw.                                             |
|                                                          |                                                                        |                                                                     |
| A.                                                       | Have already supported R.S.C.                                          |                                                                     |
|                                                          | Against it on merits.                                                  |                                                                     |
|                                                          | Must go on with this if comm                                           |                                                                     |
| d                                                        |                                                                        |                                                                     |
| to it.                                                   |                                                                        |                                                                     |
|                                                          |                                                                        |                                                                     |
| C.J.                                                     | On balance, case for enquiry hasn't bn. made out.                      |                                                                     |
|                                                          | We shd. be harmed because said to be interfering with freedom of       |                                                                     |
|                                                          |                                                                        | Press.                                                              |
|                                                          | Enquiry wd. show Press of Left (progressive Press) is no freer.        |                                                                     |
|                                                          | On balance, I'm against it.                                            |                                                                     |
|                                                          |                                                                        |                                                                     |
| W.W.                                                     | Both sides of H.C. expect a Debate.  No promise made of enquiry -      |                                                                     |
|                                                          |                                                                        | but expect                                                          |
| n                                                        |                                                                        |                                                                     |
| of opportunity to explore in debate.                     |                                                                        |                                                                     |
|                                                          | Labour Party - feeling in favour of enquiry, esp. into monopolistic    |                                                                     |
|                                                          |                                                                        | tendencies esp. in provincial newspp.                               |

 R.S.C. 
Cd. we have a debate - & consider our attitude in light of debate. E.B. 
That was old method, surely.  Debate before Govt. made up mind. A.B. 
In Private Members' time. R.S.C. 
Cd. be on adjournment. 

 H.D. 
Or Motion, in names of Labour back-benchers. H.M. 
There is one on the Paper.  Read it out. 
 
In B.B.C. debate I said demand for enquiry merits considn. 
 
We cd. let that Motion be debated.  a) majority of our Party wd.  
 
 
support it.  b) Coalition Govt. liked to find out what H/C. felt. 
 
 
That often led Govt. into trouble. - & that was a Coalition Govt. A.B. 
Don't want Motion directing Govt.             }  General agreement with 
 
"Draw attentn to public alarm ……."          }  that view. R.S.C. 
Much less objn to action based on carried Motion in H/C. H.D. 
Govt. spokesman can limit himself to promising considn. 
 
H.M. 
Don't like that.  If we know in advance Parly. Party will support. 
 
 
Govt. shd. take definite line in Debate. 
 
Govt. interests.  Press depress.  Prosperity campaign - no co-operation. 
 
B'book intervention.  Rigging the news. 
 
Want it spot-lighted.  Above Party.  Health of the Press as a national 
 
 
institution. 
 
The Press Lords are frightened. 
 
Intellectual level of our people is higher than Press suggests. A.V.A. 
In reply a) conduct of owners.  Action whether combine or  


individual wd. be the same.  Moral conduct. 

   b) emphasise monopoly - & you'll have to say why you don't 


deal with restrictive practices generally. 

   c) This is pre-eminently a H/C. matter (if put on natl. level) 


not Govt. matter. P.M. 
Have a debate.  Let Govt. speak last.  But Govt. spokesman then to  
 
 
take a line. 
 
Names:  Small no. commandg. confidence. 

    This list is not impressive. 

    Shd. include retired men with pract. experce. 

## 1. Gift From South Africa.

 P.M. 
Gold token representg. £1 m. - gift from people of S. Africa to  
 
 
people of U.K. 
 
Remarkable tribute. 

2. 
South-West Africa. 

 A. 
Recalled earlier discussion.  Quoted formula. 
 
Smuts strongly objects to last part of formula.  I agree with him. 
 
 
Indicates indecision as to our line in U.N. - are we going to 
 
 
support them at U.N. or not?  I recommend we do. 
 
Risk of re-action on us.  We might have to submit to independ.  
 
 
enquiry e.g. in Tanganyika or Austr. mandates. 
 
We shall lose nil. by supportg. our best friends.  Bad effect if we don't. P.M. 
Mandates Commn no longer exists.  Respons. with mandatory.  Not 
 
 
U.S. suggn:  & doubtful if U.N. have a locus in this.  We handed
 
 
therefore an appln to U.N. but a notification.  S.A. will resent 


over Trans-Jordan w'out enquiry of inhabitants.  If raised, 
 
 
acrimonious debate. 
 
Hailey satisfied with method of enquiry. 
 
Diff. for us to vote v. S. Africa in this. 
 
Recognise however tht. if there is a vote in U.N. it will be against 
 
 
B. Comm. A. 
Yes:  & Smuts will then carry on. 
 
E.B. 
Baltic States - there was plebiscite conducted unilaterally. H.D. 
To what extent does U.N. inherit mandates rights of L/N. C.J. 
Nothing legal:  mandatories to carry on "until other arrangemts. made". 
 
S. Afr. have said they wd. bring this to notice of U.N. A.B. 
Legal rights of U.N. irrelevant.  Ques:  is this right:  shd. we support it 
 
 
merely because S.A. is member of B. Commonwealth. T.W. 
Geogr. link.  Are we satisf. tht. S. Afr. have taken only practical steps 

they cd. have taken?  If so, can we do other than support? E.B. 
Was mistake to bring this up now.  T. Council not establd - no rules 
 
 
etc.  Will lead to acrimonious debate & will put us in awkward  
 
 
posn. 
|                                                   | A.                                                                     | He only intends to notify.  But can't prevent debate.  And expects     |
|---------------------------------------------------|------------------------------------------------------------------------|------------------------------------------------------------------------|
|                                                   |                                                                        | adverse vote.  He won't take it off Agenda because of his              |
|                                                   |                                                                        | domestic politics.                                                     |
|                                                   |                                                                        |                                                                        |
| E.Sh.                                             | He asks for our support.  We shd. give it because of Comm. solidarity, |                                                                        |
|                                                   | irrespective of merits.  Must take long view.                          |                                                                        |
|                                                   |                                                                        |                                                                        |
| C.J.                                              | Commonw. won't be united.  N.Z. led opposition previously to           |                                                                        |
|                                                   |                                                                        | proposal of incorp                                                     |
| n                                                 |                                                                        |                                                                        |
| .                                                 |                                                                        |                                                                        |
|                                                   |                                                                        |                                                                        |
| (A.                                               | He won't now.)                                                         |                                                                        |
|                                                   |                                                                        |                                                                        |
| C.J.                                              | In our trust negot                                                     |                                                                        |
| ns                                                |                                                                        |                                                                        |
| we shall be embarrassed by support of this.  Will |                                                                        |                                                                        |
|                                                   | Smuts declare tht. he will continue in acc. with principles of         |                                                                        |
|                                                   |                                                                        | mandate itself?                                                        |
|                                                   |                                                                        |                                                                        |
| (A.                                               | Yes:  he will do that.)                                                |                                                                        |
|                                                   |                                                                        |                                                                        |
| E.B.                                              | Annexations - by U.S.S.R. in Poland - also China.                      |                                                                        |
|                                                   |                                                                        |                                                                        |
| H.D.                                              | Main point = don't school ma'am Smuts in public, for sake of           |                                                                        |
|                                                   |                                                                        | pedantry.  Mustn't get in pos                                          |
| n                                                 |                                                                        |                                                                        |
| of voting v. him.                                 |                                                                        |                                                                        |
|                                                   |                                                                        |                                                                        |
| C.J.                                              | We have agreed to inspection.  A's point on Tanganyika won't arise.    |                                                                        |
|                                                   | We're safeguarded - right of veto on transfer to trusteeship.          |                                                                        |
|                                                   |                                                                        |                                                                        |
| J.                                                | Must support Smuts.                                                    |                                                                        |
|                                                   |                                                                        |                                                                        |
| A.B.                                              | We must soon establ. some internat                                     |                                                                        |
| l                                                 |                                                                        |                                                                        |
| principles to which we will stand.                |                                                                        |                                                                        |
|                                                   |                                                                        | Otherwise we are in a swither of expediencies.                         |
|                                                   |                                                                        | E.g. that wishes of inhabitants be ascertained by means                |
|                                                   |                                                                        | acceptable to international opinion.                                   |
|                                                   |                                                                        |                                                                        |
| E.Sh.                                             | B. Comm. is a reality.  Internationalism & intern. co-op               |                                                                        |
| n                                                 |                                                                        |                                                                        |
| is in                                             |                                                                        |                                                                        |
|                                                   |                                                                        | speculative pos                                                        |
| n                                                 |                                                                        |                                                                        |
| .                                                 |                                                                        |                                                                        |
|                                                   |                                                                        |                                                                        |
| P.M.                                              | General view:  support Smuts.  We can omit final part of formula       |                                                                        |
|                                                   |                                                                        |                                                                        |
| n                                                 |                                                                        |                                                                        |
| ,                                                 |                                                                        |                                                                        |
|                                                   |                                                                        |                                                                        |
|                                                   |                                                                        |                                                                        |
| E.B.                                              | Authorise me to support Smuts at U.N. - subject to prior consult       |                                                                        |
| n                                                 |                                                                        |                                                                        |
| with                                              |                                                                        |                                                                        |
|                                                   |                                                                        | Doms. as a whole.  There are similar territories in Samoa &            |
|                                                   |                                                                        | Manns.                                                                 |
|                                                   |                                                                        |                                                                        |
| R.S.C.                                            | Is it necessary to "support" a notification?                           |                                                                        |
|                                                   |                                                                        |                                                                        |
| E.B.                                              | I can oppose sugg                                                      |                                                                        |
| n                                                 |                                                                        |                                                                        |
| of addl. machinery - if it's made - because       |                                                                        |                                                                        |
|                                                   |                                                                        | T. Council rules not made.                                             |
|                                                   |                                                                        |                                                                        |
| P.M.                                              | What about the P.Q.?  Read draft answer.                               |                                                                        |

E.B. 
"S. Afr. Govt. is right in notifying U.N. before takg. action." 

 P.M. 
No. 

 
Leave draft answer as now - but omit reference to supporting the  

|     |     | S.A. case & include reference to Hailey's view.    |
|-----|-----|----------------------------------------------------|

 
1. 
India. 
 

| P.M.    | Read terms of proposed message to Viceroy - congrats. on form   |
|---------|-----------------------------------------------------------------|
| n       |                                                                 |
|         |                                                                 |
|         |                                                                 |
|         |                                                                 |

 
2. 
Parliament. 

 H.M. 
Business for the week.          [Exit  W.W.  Enter G.T. & F.W.B. & O.S. 

 
 
3. 
Germany. 

 E.B. 
H.M.'s memo. covered in principle:  & H.D.'s met:  by my memo. 
 
Haven't considered J.S.'s. 
 
Hampered in B. Zone -  
 
 
a) 
by R. refusal to treat G. as economic whole.  They have  


taken heavily fr. current prodn & will continue up to 



$10 billions 
 
 
b) 
U.S. policy was pastoralising (Morgenthan) until  

|                                  |     |     | Stuttgart speech.  They supported R. & Fr. case - to point    |
|----------------------------------|-----|-----|---------------------------------------------------------------|
|                                  |     |     | of reducing steel prod                                        |
| n                                |     |     |                                                               |
| to 5.8 m. tons.  And during Loan |     |     |                                                               |



talks, cdn't oppose them too strongly. 
 
 
c) 
Fr. policy - detach Ruhr:  & decline any agreement w'out 


prior consent to that.  Now generally realised our policy on 


that was correct. 
 
 
d) 
At outset, I took the line - let's get in & put the Zone on  


self-supportg. basis.  Was told this wd. spell disaster for 


W. Europe.  Looking back, not sure it was right to let this 


political considn outweigh the economic arguments.  I refer 


to coal exports fr. Ruhr. 
 
Looking back it's obvious this policy wd. rundown economy of  

|     |                                                                        |
|-----|------------------------------------------------------------------------|
|     | In Paris, at CFM time, tried to get B. Zone on self-supportg. basis.   |
|     | Fr. then wdn't play because of c) above.  Then announced tht., failing |

 
agreemt. to treat G. as a whole, we shd. be forced to make our Zone 
 
self-supporting.  Next Day, U.S. agreed we cdn't be expected to go on 

 
making contn at £80-100 m. p.a.  They forced us to 5.8 m. - but all 

 
experience has shown we were right on APW Cttee in our figure of 
 
11 m.  Molotov then said they wd. accept increase of level of  
 
industry - but subject to unacceptable condns. 
 
 
U.S. proposal to merge Zones.  We knew it wd. cost us more for 
 
 
a time.  When estimates worked out, figure was larger than 

|                                                    |     | assumed.  Conference held in Paris - after long disc   |
|----------------------------------------------------|-----|--------------------------------------------------------|
| ns                                                 |     |                                                        |
| have now                                           |     |                                                        |
|                                                    |     | subm                                                   |
| d                                                  |     |                                                        |
| memo.  Before this was completed I had seen Byrnes |     |                                                        |

 
 
(before Stuttgart speech) & asked wtr. this meant he wd.  
 
 
overthrow Morgenthau policy.  He said yes - with Truman's 
 
 
authy.  Later saw him & took him thro' all points in my memo. 
 
 
Asked H.D. to raise it in W'ton:  viz., division betwn. U.S. & 
 
 
U.K.  H.D. suggd to Snyder 411.  Not a hostile reception. 
 
Must tackle Ruhr comprehensively & quickly.  Vital thing = cut out 
 
 
bottle-necks.  Asked Berlin to give me list of priority needs 
 
 
(given coal) for machinery etc. - with view to getting it from  
 
 
U.S. on loan.  Even 50/100,000 t. of steel wd. help to break down 
 
 
bottle-necks.  This wd. remove diffies over U.S. appropriations. 
 
Another diffy - Fr. elections, wh. prevented us from making big cut in 
 
 
coal exports before Nov.  Have told Bidault we will do what we 
 
 
can up to Nov. - but tht. after that we must take the pledge.  Fr. 
 
 
might be helped with coal fr. S. Africa.  U.S. can't help because 
 
 
of high price & shipping in winter. 
 
German exports.  In Coalition days we went too quickly along line - 
 
 
ruin G.'s export trade & clip her wings.  cf. H.M.'s memo.  To 
 
 
save our money we shall have to allow her some (less important) 
 
 
exports. 
 
Housing.  A v. gt. problem in B. Zone.  Due to diffy. of coal & labour. 
 
Definite decision needed on ownership of industry - if we are to get 
 
 
good will of G. workers.  Believe we must come down firmly 
 
 
(to-morrow) in favour of policy of socialisation - particularly  
 
 
of heavy industries.                            [Agreed. 
 
 
Can't hope to withstand growth of Communism unless we  
 
 
support social democrats.  (Christian democrats have no solid 
 
 
econ. foundation:  mainly anti-Communist like MRP. in France.) 

|                             | Constitutional development - going fwd. on sound lines.                |
|-----------------------------|------------------------------------------------------------------------|
|                             | This memo. outlines a policy - proposes early disc                     |
| n                           |                                                                        |
| in U.S.A.                   |                                                                        |
|                             |                                                                        |
|                             |                                                                        |
|                             |                                                                        |
| P.M.                        | How much do you propose to say in H/C. to-morrow?                      |
|                             |                                                                        |
| E.B.                        | Most of it.                                                            |
|                             |                                                                        |
| H.D.                        | Tired of cost to B. taxpayer.  £120 m. = 1/= in £ on income tax.       |
|                             |                                                                        |
|                             | Have we extracted enough in exports?  e.g. timber.                     |
|                             | Not only a ques. of money.  $160 million in food for Germany - & that  |
|                             |                                                                        |
|                             | Discussed with Clayton & Snyder.  They are sympathetic.  Want sharp    |
|                             |                                                                        |
| n                           |                                                                        |
| not rejected.  That         |                                                                        |
|                             |                                                                        |
| n                           |                                                                        |
| .  Promised to consider it. |                                                                        |
|                             | £250 m. more in 3 years - capital investment required.  So far, a dole |
|                             |                                                                        |
|                             |                                                                        |
|                             |                                                                        |
| n                           |                                                                        |
| Conf                        |                                                                        |
| n                           |                                                                        |
| .  If they                  |                                                                        |
|                             |                                                                        |
|                             |                                                                        |
|                             | Don't expect to get back the £80 m.                                    |

 
Broad agreement with E.B.'s memo. - subject to above. 
 
Hope additional points in my memo. may also be considered. 
 
Clayton believes G. cd. export more if control lifted from innocuous 
 
 
products like toys, textiles etc.  This cd. be examined as part of  
 
 
H.M.'s memo. H.M. 
Broad agreemt. with E.B.'s memo. 
 
Diffy:  when do we get a return on this huge investment.  If it's  

|     |     | 5 years, will G. be so independent by then tht. we can't control    |
|-----|-----|---------------------------------------------------------------------|

 
 
re-payment. 
 
Socialisation.  Not merely taking over by C-in-C. - but a deliberate 
 
 
policy of ownership by German State subject to international 
 
 
control.  
 
 
E.B. assenting - good:  puts H.M.G. on the Left, where we shd. 
 
 
be.  Shd. like to see with it a promise of early action to that end. 
 
 
With economic unity of G. secured later, we cdn't do it so easily. R.S.C. 
Agree with general policy. 
 
Only doubts are on manner of implementing it.  We shd. do it in way 
 
 
that helps us most.  E.g.  a) if we supply G. with up-to-date U.S. 
 
 
machinery why not send our surplus machine tools to G. & get  
 
 
the new U.S. ones into U.K.?  b) Destination of G. exports.  Two 
 
 
plans.  First, let them go free.  Second, take them ourselves & 
 
 
export ours in lieu.  B. purchasing agency in G., with authy to 
 
 
order £10 m. - so far less than £50.000 placed - thus, plenty of 
 
 
room!  What if R. doesn't agree to our condns re unity.  We want 
 
 
them to continue exporting to E. Europe - wd. suit us better & is  
 
 
the natural flow of trade. 
 
Awkwardness of bldg. up Germany.  E.g. G. housing:  needs G.  

|                                                    |                                                                       | timber:  & we shan't get it.  Must balance needs of U.K. v.        |
|----------------------------------------------------|-----------------------------------------------------------------------|--------------------------------------------------------------------|
|                                                    |                                                                       | Germany in these matters.  Need for careful study.                 |
|                                                    | Reparations machinery.  Memo. for O.R.C. (not taken).  Position is    |                                                                    |
|                                                    |                                                                       | desperate.                                                         |
|                                                    |                                                                       | Must take a firm line - even tho' amount is smaller because        |
|                                                    |                                                                       | decision to increase level of G. industry.                         |
|                                                    |                                                                       |                                                                    |
| A.V.A.                                             | Socialisation.  Will be asked under what conditions?  Plebiscite?     |                                                                    |
|                                                    |                                                                       | Unilateral action of C-in-C.?  We shd. be clear on that, before we |
|                                                    |                                                                       | announce.                                                          |
|                                                    | Investment up to £250 m.  Believe it may be more than that.  Before   |                                                                    |
|                                                    |                                                                       | we negotiate in U.S., be sure we've put it high enough.            |
|                                                    |                                                                       | Is it essential to do it by straight advances from U.K. & U.S.?    |
|                                                    |                                                                       | Cdn't it be done by international means - e.g. the Bank?           |
|                                                    |                                                                       |                                                                    |
| P.M.                                               | Be sure which leg you stand on.  Take care of criticism - bleeding B. |                                                                    |
|                                                    |                                                                       | taxpayer to save Germany.                                          |
|                                                    |                                                                       |                                                                    |
| E.Sh.                                              | Don't make a 2                                                        |                                                                    |
| nd                                                 |                                                                       |                                                                    |
| mistake in policy (cf. E.B.'s (d)).  Gt. care now. |                                                                       |                                                                    |
|                                                    |                                                                       | The pol. arguments then outweighed the economic.                   |
|                                                    |                                                                       | This is most important memo. we have had.                          |

 
 
Says - R. shd. implement Potsdam.  This is unrealistic.  If we 
 
 
face fact we shan't get economic unity, then it's a new situation. 
 
Decide which leg you stand on. 
 
Level of industry plan has never worked. 
 
What is the problem of Germany?  Coal: wh. is fundamental to all G. 
 
 
recovery. 
 
 
Current cut in exports doesn't help. 
 
 
Report of Expert Cttee (Annex).  Conclns are most unrealistic - 
 
 
because you can't get more food, houses, miners.  Right solution: 
 
 
plough back coal into G. industry. 
 
Exports.  Can't understand what exports are intended.  Timber & 
 
 
machine tools are all you can get, I think.  Machinery for repns
 
 
will impede recovery. 
 
Socialisation.  T.U. leaders in G. aren't satisfied with people running  
 
 
G. industry or with denazification measures.  Who will run socialised 
 
 
industry?  We can't spare experts.  Germans will have to do it -  
 
 
will have to be organn for it. 
 
L.P.'s memo. - long-term policy only:  no immediate benefits can 
 
 
accrue. 
 
H.D.'s memo.  Do you really think U.S. will pay 4/5ths & leave you 
 
 
to call the tune? 
 
 
They will dictate the policy. 
 
Proposal:  Make serious effort to get coal prodn right & plough the  
 
 
coal back into G. industry.  End Br. military control over 
 
 
economic affairs.  Civil adminn with max. freedom to Germans. 

 J.B.H. 
De-nazification.  Based on 3 mine managers' advice - of whom 2 were 
 
 
Nazi's. 

 
"Mil. control."  It isn't so.  Cecil Weir controls it.  And it is our policy 
 
 
to give G. more share in adminn. 
 
On the memo.  Choice a) Quit  b) Self-contained with dollars for 
 
 
exports  c) fusion of U.K. & U.S. Zones subject to conditions. 
 
 
i) Revision of level/industry  ii) coal revival & retention 

|                                       |                                                                    | iii) U.S. share in cost.  iv) pooling of all resources incldg. wheat.    |
|---------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------------|
|                                       |                                                                    | Cd. get agreement in Berlin cd. we get it in W'ton.                      |
|                                       | Socialisation.  Final draft slides over consequences of favourable |                                                                          |
|                                       |                                                                    | financial agreemt. with U.S. - they wd. try to call the tune.            |
|                                       |                                                                    | I wd. advocate flat decl                                                 |
| n                                     |                                                                    |                                                                          |
| of policy & burn bridges.             |                                                                    |                                                                          |
|                                       | SPD.     900.000  }  Results of Elections in Berlin.               |                                                                          |
|                                       |                                                                    | 400.000  }                                                               |
|                                       | Chr.D.  300.000  }                                                 |                                                                          |
|                                       | But remember CDU. are in majority in our Zones.  (B. & U.S.)       |                                                                          |
|                                       | Exports.  Low level due to limit                                   |                                                                          |
| ns                                    |                                                                    |                                                                          |
| (because of foreign policy) on        |                                                                    |                                                                          |
|                                       |                                                                    | coal & food.                                                             |
|                                       | Imports of raw materials as well as food required.                 |                                                                          |
|                                       | Rep                                                                |                                                                          |
| ns                                    |                                                                    |                                                                          |
| policy will also have to be reviewed. |                                                                    |                                                                          |
|                                       |                                                                    |                                                                          |
| J.W.                                  | Genl. support of memo.                                             |                                                                          |
|                                       | Get steel out of G. but only in conformity with B. steel policy.   |                                                                          |
|                                       | Reparations machinery - urgently needed for defence work.          |                                                                          |
|                                                                |                                                                         | Deliveries stopped by U.S. action v. Russia.  Clay's policy.                               |
|----------------------------------------------------------------|-------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|
|                                                                |                                                                         | E.B. willing to go on delivering fr. B. Zone to U.K. on the g.t.                           |
|                                                                | Dangers of allowing G. industry to get modern equipment while           |                                                                                            |
|                                                                |                                                                         | ours is old.  The whole development of G. export p'mme must be                             |
|                                                                |                                                                         | watched qua war potential.                                                                 |
|                                                                |                                                                         |                                                                                            |
| E.B.                                                           | There is our expenditure in G. not partly for our security & our trade. |                                                                                            |
|                                                                | If lim                                                                  |                                                                                            |
| ns                                                             |                                                                         |                                                                                            |
| imposed by M/S. & B/T. in our interest, then I can't be blamed |                                                                         |                                                                                            |
|                                                                |                                                                         | for the whole of the expense.  And beware of inconsistency.                                |
|                                                                | Also how much does Ty. gain by p.o.w. labour?  We are charging          |                                                                                            |
|                                                                |                                                                         | reparations labour in Russia v. R. reparations account.                                    |
|                                                                | Want both points analysed before this comes up at C.F.M.                |                                                                                            |
|                                                                | Also economic value to G. of bldg. up export conn                       |                                                                                            |
| ns                                                             |                                                                         |                                                                                            |
| before we were                                                 |                                                                         |                                                                                            |
|                                                                |                                                                         | exporting.                                                                                 |
|                                                                |                                                                         | Shdn't cost of preventing that be also offset?                                             |
|                                                                | Will B/T. and M/S. tell me what G. can export w'out harm to U.K.        |                                                                                            |
|                                                                |                                                                         | interests.                                                                                 |
|                                                                |                                                                         |                                                                                            |
| P.M.                                                           | This = short term side of H.M's memo.                                   |                                                                                            |
|                                                                |                                                                         |                                                                                            |
| P.L.                                                           | In 1919 vast reparations proposed - & in the end we lost by it.         |                                                                                            |
|                                                                | This time - attemptg. to destroy war potential & restoring economy.     |                                                                                            |
|                                                                |                                                                         | Believe we must emphasise second point.  We must get G. on                                 |
|                                                                |                                                                         | her feet.  Are we prepared to do that?  If not, she will be a                              |
|                                                                |                                                                         | charge on us for ever.                                                                     |
|                                                                |                                                                         |                                                                                            |
| J.S.                                                           | As in memo.  Include among rep                                          |                                                                                            |
| ns                                                             |                                                                         |                                                                                            |
| to U.S. Govt. pooling of food                                  |                                                                         |                                                                                            |
|                                                                |                                                                         | supplies for the 2 Zones.  They will try to ride out on long-term                          |
|                                                                |                                                                         | Can. contract.  But in fact no help fr. there.                                             |
|                                                                |                                                                         |                                                                                            |
| E.B.                                                           | Agreed.  Let M/F. give me facts & I'll take it up at once in            |                                                                                            |
|                                                                |                                                                         | W'ton.                                                                             Agreed. |
|                                                                |                                                                         |                                                                                            |
| H.M.                                                           | Quoted fr. agreed statement at end of his W'ton disc                    |                                                                                            |
| ns                                                             |                                                                         |                                                                                            |
| .  Endorsed                                                    |                                                                         |                                                                                            |
|                                                                |                                                                         | common ration standards in 2 Zones.  This alloc                                            |
| n                                                              |                                                                         |                                                                                            |
| is                                                             |                                                                         |                                                                                            |
|                                                                |                                                                         | inconsistent with the principles then agreed & announced.                                  |
|                                                                |                                                                         |                                                                                            |
| P.M.                                                           | Agreement with general conclusions in memo?                             |                                                                                            |
|                                                                |                                                                         |                                                                                            |
| T.W.                                                           | Socialisation - steel.  What Opp                                        |                                                                                            |
| n                                                              |                                                                         |                                                                                            |
| re-action to announcement, when it                             |                                                                         |                                                                                            |
|                                                                |                                                                         | is known we have had to p'pone it here?                                                    |
|                                                                |                                                                         |                                                                                            |
| E.B.                                                           | I wd. put it tht. G.'s war potential founded on Ruhr industrialists.    |                                                                                            |
|                                                                |                                                                         | We have vested them in C-in-C.  We can't go on holding it.                                 |
|                                                                |                                                                         | Can't give it back.  Shall give it to German people?                                       |
|                                                                |                                                                         |                                                                                            |
| P.M.                                                           | Is there agreement with general conclusions?                            |                                                                                            |
|                                                                | E.Sh. points.  We accept pos                                            |                                                                                            |
| n                                                              |                                                                         |                                                                                            |
| tht. coal is vital.  And after Fr.                             |                                                                         |                                                                                            |
|                                                                |                                                                         | elections we shall plough coal back into G. industry.                                      |
|                                                                |                                                                         |                                                                                            |

P.M. 
L.P.'s memo.  Was proposing new Cttee on Overseas Ec. Policy. 
 
 
Cdn't that do it? 
 
Get this examined by officials first.  Then to Cab. thro' O.E.C.  Agreed 
 
 
4. 
Timber from Germany. 
[Enter A.B. P.M. 
Will H.D. examine this with Lenanton & J.B.H.? H.M. 
A.B., E.Sh. and Barnes are claimants. P.M. 
Diff. of opinion re facts. 
 
Is everything possible being done - and what more wd. be possible? 
 
Concentrate on that. E.B. 
Housing in Germany.  Cd. Services give return of available Nissen  
 
 
huts? J.B.H. 
We are enquiring of W.O. already. 
 
Timber: can't do more than a bit extra.  Unless 50.000 Br. troops cd. be 
 
 
transferred to timber from training. F.W.B. 
V. diff.  We shan't be able to spare the men. 
 
If Cttee try to get at the facts, let me refute H.D.'s statement. 

## 1. Amendment Of Parliament Act

 
P.M. 
P'pone - to come up in good time before end of next Session. 
 A.                    Concludg. words of my memo. 

 P.M. 
Yes:  Appd. 
2. 

## King'S Speeches.

 
H.M. 
Thanks to L.Ch.      Prorogation Speech P.M. 
"It is a source of gratificn - Chairman for the coming year."  Para. 4. of 
Prorogation. R.S.C. 
Para. 5  Brazil not worth mentioning.  Subst. "various countries". H.D. 
Argentine is worth mentioning. E.B. 
Mention of that alone will cause diffies with other countries. eg. Spain. P.M. 
Agreed:  various countries. J.B.H. 
Para. 6  "civil & military authies vice Forces of occupn. 
 
 
"U.S. Allies" vice "American Allies". 
 

| A.V.A.    | Para. 9.  Shd. cover Australian forces.  ? "B. Commonwealth Forces".    |
|-----------|-------------------------------------------------------------------------|
|           |                                                                         |
|           |                                                                         |

 
 
Para. 10.  Omit "incumbers of". 
 
 
Para 14. Island?   
 

|     |     |     | Agreed  stet.    |
|-----|-----|-----|------------------|

 C.J. 
Reference to Palestine?  I wd. prefer not.  But had a reference to Conference. P.M. 
If anything, shd. say more.  Ernest attempt, in conjn with U.S. 
 
Wd. prefer to say nothing at all. 



Agreed:  nil. 

 R.S.C. 
Para. 19.  Final words don't reflect actual t. of r.  Blurs distincn with Prodn 
Adv. Council.  "on wages & other matters of common interest…" G.A.I. 
No.  Wages are excluded. 
 

P.M. 
Stop at "interest". R.S.C. 
Prodn Council. 
 
P.M. 
Stop at workers. 
 
 
Agreed. H.M. 
Para. 24. - Session vice "year" 
 
Para. 32 insert overseas before telegraph. 

## Opening Speech

 
P.M. 
Para. 8.  Doesn't say what it is about.  Add "policy for the future Govt. of 
India". 
 
 
Agreed. H.M. 
"As the nec. prelim. to " 
 
 
Agreed. E.B. 
Avoid "my Col. peoples" R.S.C. 
"In the terries for wh. my Govt. is response. overseas…" H.M. 
Para. 16.  omit "bulk of"?  "those who need it most have first claim on new 
accommn". 
 
 
Agreed. 
 
H.M. 
Para. 15 will need reconsidn. 
 
Para. 19.  "nationalise".  It will be "regionalisation".  "Bring under national 
ownership & control". 
 
 
Agreed. 
 
 
Agreed:  subject to verbal amendments appd. by H.M. 
3. 

## Legislative Programme.

 H.M. 
Began on basis of Cab. prov. p'mme for draftsman.  Found it too heavy. 
 
 
Want to relieve burden:  to end Session in August. 
 
Even this wd. be heavy P'mme.  Ready to defend Part VI. 
 
Thanks to Murrie. 
 

| A.G.                                                  |
|-------------------------------------------------------|
| n                                                     |
| now.  But if we are to                                |
| have balanced 3                                       |
| rd                                                    |
| Session, we shd. start in Oct.  Evens out work betwn. |
| H/L. and H/C.  Shd. aim at this.                      |

 
Wd. also even out the Cttee work. 

 W.W. 
Supported this.  Will depend, however, entirely on how many Bills we get 
before Xmas.  We are on basis of 2 Cttees a week:  don't want to increase that.  Trouble = major Bills will be late.  But reducg. Xmas vacation & addg. a week in Aug. 

 P.M. 
Bills must be ready in Oct. 

 A.B. 
Serious to drop some of these Bills.  Wd. prefer therefore to have Oct. 
Session this year tho'agree in principle. 
a) Radio-active Substances - desired by many Dpts.  Referred to 
alarming letter fr. R. Carling.  Want leave to introduce earlier, in H/Lds:  only 16 clauses. 
b) R. + Valuation.  I don't press. 
c) Cd. p'pone Block Grants, tho' with gt. diffies. 
d) 
Press Poor Law Bill.  Chaos will be unmanageable if not passed by 
1.1.48.  Won't be able to resist some reform in care of children - Curtis Rpt. - cd. be handled in this Bill.  We must put behind us all 
legn on assistance & get down to prodn.  A large Bill (80 clauses) 
but non-controversial in the main. 

 W.W. 
First order for 3rd Session - law by Feb. '48.?   

 A.B. 
Not enough time. 

 

| H.M.                                                                 |
|----------------------------------------------------------------------|
| Trouble in Cttee.  Even when passed, will take 12 mos. to introduce. |
| Wdn't pass until Nov.  In 3                                          |
| rd                                                                   |
| Session cd. pass by Feb. '48.  Only a few                            |
| months' diff                                                         |
| ce                                                                   |
| .                                                                    |

 
Had to add Electricity.  If you add, you must subtract. 

 J.G. 
Dangerous if N.I. Scheme begins before Poor Law adjusted.  Bodies going 
out become irresponsible.  L.A.'s likely to raise scales - & cause gt. diffy. when we take over, nationally.  Don't want any gap. P.M. 
What is state of readiness of these Bills? 
 
Some are small - e.g. Ag. Wages.  } 
 
Three are Scottish                           } Not so much time in Cttee. 
 
 
H.M. 
Radio-active Substce - hope to get fairly early.
 
On actual days this P'mme leaves no margin. 
 
No room for emergencies. P.M. 
Is there room for Poor Law. A.B. 
Yes:  if you have an autumn Session. 

 
Can you resist legn on care of children. H.M. 
Yes. 
 
E.Sh. 
"Working House too hard".  Our supporters will demand legn. H.M. 
In June/July they were worn out.  Even in 1st- Session. P.M. 
Not all the Ministers or the Members.  We did more when Party was only 
40. A.B. 
Why not announce it:  use it as leverage.  May have to drop somethg. 
 
Will cost Ty. much if not passed. 
 
H.D. 
On priorities:  I put the socialising measures first.  Don't drop anything. A.B. 
Why not add it. E.W. 
Curtis Rpt. needs ventiln.  Don't think that is urgent.  Support Poor Law 
point, however. A.G. 
Importce of 3rd - 5th Sessions. H.D. 
 Promote it to V? A.G. 
If it's a major Bill, shd. be in K's Speech. H.D. 
Needn't be in the Speech. H.M. 
O.K.  So long as no claim on draftsman. 
 
 
Agreed:  put it last in Part V. 


R. Active Substances may pass. 

[Enter  C.O.S. 

## 4. Permanent Scheme Of National Service.

 
[N.B. left W.S.M. to take the Minute] 

## 1. Food Supplies

 
J.S. 
Warning.  Deteriorations due largely to U.S. policy - more irresponsible & 
isolationist. 
 
 
Exports going to countries of their preference. 
 
 
Wheat - another memo. next week.  1.8 wheat equivalent last year: 
1M. to-day. 
 
 
We want from U.S. 800.000 t out of their total export of ? 200m tons. 
Can. & Arg. so uncertain we must get assurance of something fr. U.S. 
 
Need also for agreement on rice price:  & means of getting it fr. Siam. 
 
Meat & bacon rations can't be m'tained w'out U.S. help. 
 
Unless we get U.S. help our food situation in '47 will be worse than any year 
during the war. 
 
Wheat & fats:  meat & bacon:  rice - grand remonstrance to U.S. at high 
level after their elections.  E.B. to head it off with Byrnes:  then conference, which I wd. have to attend. 
 
 
Can't be done by officials for only argument we have is effects on their 
for. policy.  I might go over in mid-Nov. P.M. 
I.E.F.C.? J.S. 
Doing less & less - and U.S. takg. no notice of it.  Adopting a unilateral 
policy.  We face a break-down in international machinery. P.M. 
Situation changes so quickly.  Thought our long-term contract with Canada 
covered us. J.S. 
No:  it is well below our needs.  160 m.  bushels imports won't keep us.  
More than our pre-war imports fr. Canada:  but less than our total imports.  Can. supply:  can't ship it in short-term:  in summer '47 no assurance of addl. 40m bushels for which we have asked.  4.32 in tons = 160m. bushels. H.M. 
Selfish policy of U.S.A.  unilateral redn of extraction rate.  Extravagant use 
of fats, linseed oil. R.S.C. 
Possible misunderstanding in State Dpt. re wheat contract with Canada - 
that it covers more than our pre-war total imports. J.S. 
There is hostility to that contract:  hence readiness to misunderstand. 
 
 
Need for clearer understanding with U.S. T.W. 
We suffer fr. decision not to publish figures. 
 
We must soon tell the world the truth - & shame the U.S. P.M. 
Winter sowing in Europe? J.S. 
Don't know:  no reason why they shdn't continue their recovery. 
|                                                                           | Will it be wise to approach U.S. for sake of U.K. alone.  Might court rebuff.    |
|---------------------------------------------------------------------------|----------------------------------------------------------------------------------|
|                                                                           |                                                                                  |
| A.B.                                                                      | Supported proposal for publ                                                      |
| n                                                                         |                                                                                  |
| of full figures.  Turn the heat on that way.                              |                                                                                  |
|                                                                           |                                                                                  |
|                                                                           |                                                                                  |
| E.Sh                                                                      | Para. 6 - supplies to U.S. Zone of G. ? unnecessary.                             |
|                                                                           | Agree must approach U.S.  But consider also alternative sources.  E.g. more      |
| prod                                                                      |                                                                                  |
| n                                                                         |                                                                                  |
| in U.K.:  Denmark & Doms. & Colonies.                                     |                                                                                  |
|                                                                           |                                                                                  |
| T.W.                                                                      | Can't produce any more in U.K. to come in before next August.                    |
|                                                                           |                                                                                  |
| P.M.                                                                      | No publicity before Elections.                                                   |
|                                                                           | Face them then with world position - not U.K. alone.  We cd. feed U.K. if        |
| we ignored dependencies - 1.8 m tons required for them.                   |                                                                                  |
|                                                                           |                                                                                  |
| E.B.                                                                      | Intended to approach U.S. on diff. basis.                                        |
|                                                                           | They are big country:  no central admin                                          |
| n                                                                         |                                                                                  |
| like ours:  food contract then has                                        |                                                                                  |
| broken down. Must recognise those facts.  But they are concerned (esp.    |                                                                                  |
| thro' War Dpt.) fr. another angle.  [Have asked M/F. for statement of     |                                                                                  |
| our requirements:  what we can get fr. elsewhere.]  Viz., troubles in Far |                                                                                  |
| East.  I wd. put India's claim on that basis - not charity - but their    |                                                                                  |
| strategic interests.  Repeated [ ]:  also what is needed for India.       |                                                                                  |
|                                                                           |                                                                                  |
|                                                                           | I will talk to Byrnes - & exploit C.C.O.S. angle.  Don't go to Truman.  Try      |
| to get some simple principles estable                                     |                                                                                  |
| d                                                                         |                                                                                  |
| . & they can be carried down to                                           |                                                                                  |
| Dpts.                                                                     |                                                                                  |
|                                                                           | Alternative sources - e.g. development of mutton supplies from Iraq & Arab       |
| countries.                                                                |                                                                                  |
|                                                                           |                                                                                  |
| J.S.                                                                      | I will give you a note, for talk to Arabs in U.S.                                |
|                                                                           | U.S. response to me will be - what use have you made of B. Empire.  E.g.         |
| fats:  we cd. have bn. self-sufficient if we had developed Africa.        |                                                                                  |
|                                                                           | I will talk in U.S.  But don't say I'm going to raise it.                        |
|                                                                           | Keep Germany out of food controversy.  Keep it separate.  Put Germany            |
| point on basis of requirements to get the G. economy going.               |                                                                                  |
|                                                                           | Give me a brief on Can. contract:  so that I can pos. bring M. King into this.   |
| Stalin spoke to Jackson re another internat                               |                                                                                  |
| l                                                                         |                                                                                  |
| organ                                                                     |                                                                                  |
| n                                                                         |                                                                                  |
| to carry on work of                                                       |                                                                                  |
| U.N.R.R.A.  My belief is tht. its now balance/paymts issue.  No           |                                                                                  |
| shortage in Czech. or Poland.  Maize shortage in Rumania:   but R.        |                                                                                  |
| won't come into trade agreemt.  Why shd. we pay for international         |                                                                                  |
| charity for people who won't come in to the economic club.  I've          |                                                                                  |
| therefore told N.B. to resist any such pressure for another U.N.R.R.A.    |                                                                                  |
|                                                                           |                                                                                  |
| C.J.                                                                      | Food prod                                                                        |
| n                                                                         |                                                                                  |
| in Colonies.  Action being taken.  Lack of consumer goods.                |                                                                                  |
|                                                                           |                                                                                  |
|                                                                           |                                                                                  |
| J.S.                                                                      | I will give E.B. a brief for his approach to Byrnes.                             |
| a) what we want from U.S.  I can give that briefly. But                   |                                                                                  |
| b) he wants to put the overall world picture.  That can't be short.       |                                                                                  |
|                                                                           | That approach will be private & personal.                                        |
|                                                                           | Later an open conference with U.S. Dpts. will be required - at end           |
|---------------------------------------------------------------------------|------------------------------------------------------------------------------|
| November.                                                                 |                                                                              |
|                                                                           |                                                                              |
| P.L.                                                                      | Despatch of telegrams to U.S. on                                             |
|                                                                           |                                                                              |
|                                                                           |                                                                              |
|                                                                           | Can't b) go off?                                                             |
|                                                                           |                                                                              |
| J.S.                                                                      | More effective to rely on E.B.'s approach.  No good makg. in advance this    |
| bite over India etc.,  I wd. suspend b).  India separately represented in |                                                                              |
| W'ton.                                                                    |                                                                              |
|                                                                           |                                                                              |
| approach.                                                                 |                                                                              |
|                                                                           |                                                                              |
| A.V.A.                                                                    | Publication of facts.  We must keep our own people informed.  The longer     |
| you delay, the heavier the pol. attack on controls, Govt. buying etc.     |                                                                              |
|                                                                           |                                                                              |
|                                                                           |                                                                              |
| A.                                                                        | Can prepare & w'hold until after U.S. elects. But publish then.  "Why are we |
| worse off than in war?"  We must answer that.                             |                                                                              |
|                                                                           | Big effort on alternative sources.                                           |
|                                                                           |                                                                              |
| E.B.                                                                      | I don't object:  only asked no publicity for my approach to Byrnes.          |
|                                                                           |                                                                              |
| R.S.C.                                                                    | But publ                                                                     |
| n                                                                         |                                                                              |
| of facts will reflect on U.S.                                             |                                                                              |
|                                                                           |                                                                              |
| E.B.                                                                      | Doesn't matter if you don't attack U.S.                                      |
|                                                                           |                                                                              |
| J.S.                                                                      | Publc                                                                        |
| n                                                                         |                                                                              |
| of our wheat stocks?                                                      |                                                                              |
|                                                                           |                                                                              |
| H.M.                                                                      | We must get conscience of U.S. public stirred & shamed somehow.  Maybe       |
| not by offl. publ                                                         |                                                                              |
| n                                                                         |                                                                              |
| :  but at least by not officially suppressing inform                      |                                                                              |
| n.                                                                        |                                                                              |
|                                                                           |                                                                              |
| E.Sh                                                                      | Is that a good start for E.B.'s approach?                                    |
|                                                                           |                                                                              |
| E.B.                                                                      | Shortages in parts of U.S. because of faulty distribution.                   |
|                                                                           | Danger of driving U.S. back into isolation.                                  |
|                                                                           |                                                                              |
| P.M.                                                                      | Statement cd. be made in Debate or Address.                                  |
|                                                                           |                                                                              |
|                                                                           |                                                                              |
|                                                                           |                                                                              |
|                                                                           |                                                                              |
| J.S.                                                                      | What about conf                                                              |
| ce                                                                        |                                                                              |
| in Nov?                                                                   |                                                                              |
|                                                                           |                                                                              |
| P.M.                                                                      | P'pone until we know result of E.B.'s preliminary approach.                  |
|                                                                           |                                                                              |

 

## Indian Food Supplies

 P.L. 
As in memo.  Warning. 

 

| J.S.                                                         |
|--------------------------------------------------------------|
| n                                                            |
| but failure to ship.  Nothg.                                 |
| therefore we can ask U.S. except can you settle your strike? |

 

| P.M.           | Method:  best to leave invitation to Indian Deleg   |
|----------------|-----------------------------------------------------|
| n              |                                                     |
| in supporting? |                                                     |
|                |                                                     |
| J.S.           | Yes:  better for them & us.                         |

 PL. 
At least can we let B. Amb. have the facts.   
 

P.M. 
No objn  to that. 

 

| A.B.                            |
|---------------------------------|
| ns                              |
| are rising &                    |
| their prod                      |
| n                               |
| isn't.  Grave threat to future. |



[Exit Barnes & Hynd 
 
2. Palestine Conference. 
 

| E.B.                                                                    | Was hoping for better situation with Jews.  Prospects damaged by Truman's    |
|-------------------------------------------------------------------------|------------------------------------------------------------------------------|
| last statement.  Better if this cd. be handled by State Dept. not White |                                                                              |
| House.                                                                  |                                                                              |
|                                                                         | Believe Anglo. U.S. experts rpt. wd. have provided a basis for transition    |
| period.                                                                 |                                                                              |
|                                                                         |                                                                              |

 
Talks in Paris.  Smuts using his influence - with Jews. 

|                                                                       | Byrnes told me, day before I left Paris, tht. Silver has asked if problem cd.    |
|-----------------------------------------------------------------------|----------------------------------------------------------------------------------|
| be transferred to State Dpt. & convers                                |                                                                                  |
| n                                                                     |                                                                                  |
| held with me in N. York after                                         |                                                                                  |
| the elections.  I said tht. failing early settlement, we shd. have to |                                                                                  |
| surrender mandate.                                                    |                                                                                  |
|                                                                       | Jews in other Arab Countries are v. scared for their skins.  Whatever Jewish     |
| Agency may say.  Have urged Arab State to restrain their peoples.     |                                                                                  |
|                                                                       | Disc                                                                             |
| ns                                                                    |                                                                                  |
| with Egypt nearing an end.  Has a large bearing - strategic &         |                                                                                  |
| political.                                                            |                                                                                  |
|                                                                       | Byrnes willing to have frank disc                                                |
| ns                                                                    |                                                                                  |
| with me after 10/11.  Rpts in Times                                   |                                                                                  |
| 24/10 tht. Goldman etc., wd. like to see me in U.S.                   |                                                                                  |
|                                                                       | Suggest no action - save informal convers                                        |
| ns                                                                    |                                                                                  |
| as proposed.  By me in U.S. &                                         |                                                                                  |
| by C.J. and P.M. in Ldn.                                              |                                                                                  |

 
Failg. any development before Dec. we must then decide either 

a) to impose some solution, even v. violence: or b) to surrender mandate. 

c) Suggested to me that solution cd. be found by Partition giving the 
Arab community to Transjordan. 

|                 |
|-----------------|
| popular in U.N. |

 
Have urged on U.S. tht. diffy. is made worse by their failure to admit d.p.'s 
to U.S. 

|                                                                          | Believe they are now seekg. inter Party agreement to leg                      |
|--------------------------------------------------------------------------|-------------------------------------------------------------------------------|
| n                                                                        |                                                                               |
| to extend the                                                            |                                                                               |
| quota.                                                                   |                                                                               |
|                                                                          | If passed, that wd. help.  But Brynes will then press for contrib             |
| n                                                                        |                                                                               |
| . by B.                                                                  |                                                                               |
| Comm.  And we've got no change from our Doms or Col. - save a few        |                                                                               |
| Poles for Canada.                                                        |                                                                               |
|                                                                          | Discussions have done good.  Good feeling - ! Arabs.                          |
|                                                                          |                                                                               |
|                                                                          |                                                                               |
|                                                                          |                                                                               |
|                                                                          |                                                                               |
| C.J.                                                                     | Agency talks re public order.  Jews wanted us to talk on immigration:  we     |
| had to say no concession either on size of quota or releases fr. Cyprus. |                                                                               |
|                                                                          | Law & Order.  Not for bargaining.  But gesture fr. Jews wd. help.  Believe    |
| there prob. will be decl                                                 |                                                                               |
| n                                                                        |                                                                               |
| re terrorism which will enable us to release                             |                                                                               |
| detained leaders.  Wd. help to rally moderate opinion.                   |                                                                               |
|                                                                          | Steps taken to review cases of Arabs now detained.                            |
|                                                                          | Hope Agency may be more co-operative with Palestine administration.           |
|                                                                          |                                                                               |
| A.B.                                                                     | Not satisfied re our objections are.  What will be E.B.'s goal in talking to  |
| Byr.                                                                     |                                                                               |
|                                                                          | We as Party have declared in favour of Jewish Home.                           |
|                                                                          |                                                                               |
| influence unless we give them somethg. more.  Arabs object to J.         |                                                                               |
| majority.  Conflict of 2 nights.                                         |                                                                               |
|                                                                          | My inform                                                                     |
| n                                                                        |                                                                               |
| = elements in Arab world who wd. support Partition if we                 |                                                                               |
| imposed it.                                                              |                                                                               |
|                                                                          | Any further disc                                                              |
| ns                                                                       |                                                                               |
| shd. be on basis of Partition.                                           |                                                                               |
|                                                                          |                                                                               |
| E.Sh.                                                                    | Whatever we do, we shdn't abandon Mandate.  Wd. be confession of              |
| weakness:  wd. wreck our pos                                             |                                                                               |
| n                                                                        |                                                                               |
| in M/E.                                                                  |                                                                               |
|                                                                          | Believe Partition is only solution.  And we shall have to impose it.          |
|                                                                          |                                                                               |
| E.B.                                                                     | Maybe:  but C.O.S. say we can't impose solution opposed by both sides.        |
|                                                                          | Arab disquiet - disorder in Iraq - letting R. into Mosul oil.  What about all |
| that?                                                                    |                                                                               |
|                                                                          | Prefer to play it slow.  Settlement with Egypt wd. make a big difference.     |
|                                                                          |                                                                               |
| H.D.                                                                     | Partition is a possibility on Agenda.  I believe it's only solution.          |
|                                                                          |                                                                               |
| E.B.                                                                     | Restraint shown by Jewish M.P.'s in F. Affairs Debate - Govt. supporters.     |
|                                                                          |                                                                               |

 
3. Indian Complaint v. South Africa at U.N.
 

 P.M. 
Summarised issues in 2 memo. 
 
Can't take P.L. negative line - amount to walking out of U.N. R.S.C. 
Choice of evils. 
 

A.V.A. 
Favour (b) on p.2 of E.B.'s memo.  Least evil. H.M. 
Fundamental ques. shd. U.N. interfere with internal matters.  They wd. never 
intervene in Soviet sphere of influence. C.J. 
Indians in Kenya will arise soon.  Support E.B. A. 
Support E.B.  If this issue is discussed, it won't stop here. H.D. 
Support idea of U.N. not trying to fly before it can walk. R.S.C. 
Tell India in advance what line we are going to take.  See Mr Pandit. 


Agree. P.L. 
Stress paras. 3 & 5 of my memo. 
 
 
Agreed. 
 [Exit A.B. 

## 4. Economic Co-Operation With Western Europe.

 E.B. 
P'pone until after French Elections. 

## 1. Egypt

| P.M.                                                                   | Talks with Sidki Pasha - leak is unfortunate for both.  I cdn't in my    |
|------------------------------------------------------------------------|--------------------------------------------------------------------------|
| statement tell the whole story.  Hope this won't impair prospects, wh. |                                                                          |
| looked good, of agreement.                                             |                                                                          |
|                                                                        | Long controversy over Sudan:  overcome for years by saying no change in  |
| status quo.  Now Egyptians want a decl                                 |                                                                          |
| n                                                                      |                                                                          |
| tht. sovereignty is Egypt.  On                                         |                                                                          |
| exam                                                                   |                                                                          |
| n                                                                      |                                                                          |
| no doubt that juridically it is so.  Can't deny it.  Only  hope is to  |                                                                          |
| couple it with assurances about Sudanese havg. opportunity to          |                                                                          |
| determine own future.                                                  |                                                                          |

 
 
2. Food:  Supplies from U.S.A.

| P.M.                                                | U.S. breakg. or terminatg. food contracts with us?                      |
|-----------------------------------------------------|-------------------------------------------------------------------------|
|                                                     |                                                                         |
| J.S.                                                | Yes:  known it was coming.  We shall have to go into open market.  Less |
| food & higher price.  Foreshadowed in my last memo. |                                                                         |

## 3. International Control Of The Ruhr.

 P.M.      } 
Summarised issues put fwd. in memo. 
H.McN. } 
R.S.C. Do we go ahead at once with appointmt of trustees? J.B.H. 
Nominated Govt. of Westph. Will be consulted re trustees.   Then a further 
agreement with elected Govt. of Land after the elections. H.McN. 
We wdn't go ahead w'out talking to Germans & U.S.  But cd. then proceed, 
reprtg. intentions to Control Council;  not seek consent of Council. J.B.H. 
Trustee idea.  Value & psych. gesture to Germans, who suspect our intentns 
about leavg. indies with G.  Cd. meet that by announcg. intentn to hand 
over to G. people & are discussing with Zonal Council means of holding them. 
 
 
In any event, against selectg. individuals as trustees.  Wd. prefer to 
entrust to a body incldg. T.U. repves. H.M. 
A body of public persons of standing, likely to be included in G. Govt.  And 
leave them responsible for apptg. management etc. J.B.H. 
Announce to Zonal body:  tell them to work out plan & recommend trustees. P.M. 
Memo. says nominated Govt. of the Land will appoint trustees. J.B.H. 
I make my suggn because I prefer the industries to be entrusted to a central 
Govt. 
 
 
Hence I prefer puttg. it to Zonal authy. 

 P.M. 
That is an advisory body only.  And you are jumping the issue in paras. 13-
14. 
 
R.S.C. 
Raised the legal posn of ownership.  Need to ensure tht. when German law 
reviews on establmt of a G. Govt., previous owner can't claim any 
property in these industries. P.M. 
Yes:  but that is a matter for the Peace Treaty. H.McN. 
We can transfer ownership now by provisional charter to be confirmed by 
Peace Treaty. 
 
R.S.C. 
Need for careful scrutiny of legal position. P.M. 
Need for clear statement of legal position - F.O. to prepare it, in consultn 
with L.O.'s, for informn of Cabinet. P.M. 
Use of Zonal Adv. Council.  Inadvisable.  Wd. lean twds. central Govt. 
 
 
Only Govt. now existg. is Land Govt.  Shd. do it thro' that Govt. R.S.C. 
Ownership with Trustees.  Operation by Land Govt.? H.McN. 
Apptmt of Trustees wd. be subject to our approval. P.M. 
Trustees apptd after consultn with Land Govt.? H.McN. 
U.S. pt. of view - easier for them if presented as coming from Germans 
themselves. 
 

| E.Sh.                                                                   | Proposal in para. 15 for observers.  Will this help?  U.S. don't want          |
|-------------------------------------------------------------------------|--------------------------------------------------------------------------------|
| socialisation.  French want separation of Ruhr.  Their presence wd. be  |                                                                                |
| embarrassing.  And how cd. we justify excludg. Russia?                  |                                                                                |
|                                                                         | Second ques. - who will determine policy?  C-in-C or Trustees?  And if         |
| former, will be interfered with by Control Council?                     |                                                                                |
|                                                                         |                                                                                |
| R.S.C.                                                                  | C-in-C. will direct the policy, wherever the ownership lies.  This is true for |
| all G. industries & econ life in B. Zone.  Why associate rep            |                                                                                |
| ves                                                                     |                                                                                |
| as in 15                                                                |                                                                                |
| only for these socialised industries, & not for the rest.               |                                                                                |
|                                                                         |                                                                                |
| H.McN.                                                                  | Want France in because interests mainly in R. heavy ind                        |
| ies                                                                     |                                                                                |
| Other W. Europ.                                                         |                                                                                |
| Govts. in consequence.  U.S. because a) fusion of Zones  b) need for    |                                                                                |
| U.S. capital.                                                           |                                                                                |
|                                                                         |                                                                                |
| H.M.                                                                    | a) U.S. = capitalist.  b) another grievance for Russia.  Their behaviour in    |
| their Zone entitles us to take unilateral action:  but once we bring in |                                                                                |
| other Allies we can't justify exclusion of Russia.                      |                                                                                |
|                                                                         |                                                                                |
| J.B.H.                                                                  | We have Fr. liaison officers, as observers, in Ruhr - to watch prod            |
| n                                                                       |                                                                                |
| & alloc                                                                 |                                                                                |
| n                                                                       |                                                                                |
|                                                                         |                                                                                |
| of coal.  F.O. presumably have nothg. more in mind.                     |                                                                                | P.M. 
Para. 15 means much more than that. A.V.A. 
Cd. Ty. B/T. and M/F & P. consult with F.O. on this at official level. H.McN. 
Para. 15 may be hangover fr. 1st scheme, which is discussed with W. Europ. 
Govts.  Remember, too, we are asking U.S. to put up 4/5
th of the capital 
required for the 2 Zones. P.M. 
The 2nd plan isn't international.  Para. 15 is not consistent. A.B. 
Danger of alienating R. for the sake of U.S. financial support.  This wd. be a 
gratuitous affront to Russia. 
 
P.M. 
Further examinn             { a) legal position - L.O.'s 
 
in light of Cabinet's       { b) apptmt of trustees & degree of their control. 
 
discussion, of                 { c) para. 15 observes. 
 
Discussion with officials. A.V.A. 
Include considn of 
a) selection of Trustees.  Avoidance of Nazis. b) U.S. are not re-acting strongly against socialisation. 
 
 
Agreed:  Endorse Recommendation 1. 

              Officials to discuss points raised in discussion. 

              E.B. to be warned Cab. feeling strongly against para. 15 


[Exit  J.B.H., O.S. and 

        H.McN. 
 
4. Ireland

 H.M. 
Gave account of his conversations with de Valera. A. 
Earlier memo. advising encouragemt. of friendly relations with Eire, quietly.  
That policy has bn. successful. They have bn. eased into Dom. talks e.g. on economic ques.  Glad when H.M. suggested this visit. 
 
Partition.  Remember de V. is in diffies (esp. in U.S.) because of action 
during war. 
 
 
Wants a point at wh. to keep his case before his friends.  That's why 
(partly) he is trying, to raise Partition.  Our policy shd. be to have it alone. C.E. 
No likelihood of any softening of Ulster's attitude. 
                  x/ If Ulster ask for conscription, we shall be in this issue because of de. V.'s 
likely re-action. 
 
Diffies for us over Tory Protestant ascendancy in Ulster. 
 
Endorse A's policy.  But shall soon be faced with x/. 
 

A.B. 
Protection in Eire has created in Dublin etc., vested interest in maintaing. 
Partition. 


On x/. agreed. Limit Bill to G.B. & so inform Basil Brooke. 
 

## 1.     Parliament

 

| H.M.                                |
|-------------------------------------|
|                                     |
|                                     |
| 2.     National Health Service Bill |

 

| A.B.                                                         | Lords Amendments.  Some harmless, & can be accepted w'out doing any    |
|--------------------------------------------------------------|------------------------------------------------------------------------|
| damage to Bill.                                              |                                                                        |
|                                                              | 3 wrecking amendmts.                                                   |
| a) Met Boros. Upsets scheme & wd, enrage boros' outside Ldn. |                                                                        |
| b)                                                           | Salaries of doctors - eliminatg. possibility of remuneration by        |
| salary.                                                      |                                                                        |
| c) Cecil's amendment re                                      |                                                                        |
| treatment of deaf:  nonsense to particularise                |                                                                        |
| in machinery Bill.                                           |                                                                        |
|                                                              | Bound therefore to resist these three amendments.                      |
|                                                              |                                                                        |
| A.                                                           | Cranb. expects a) & b) to be thrown out by H/Commons.                  |
|                                                              | On c) point is prot                                                    |
| n                                                            |                                                                        |
| of public from quack remedies.  To be taken to-day.          |                                                                        |
| There will be some fuss & it may be carried v. us.           |                                                                        |
|                                                              |                                                                        |
| A.B.                                                         | Have arranged for Horder to speak v. it.                               |
|                                                              |                                                                        |
| A.                                                           | Good:  have also a pledge from M/H:  to provide recognised machine as  |
| "appliance" under the Act when passed.                       |                                                                        |

 
3.     Parliament: Legislative Programme.

| A.B.                                  | Pressure for new leg                                                   |
|---------------------------------------|------------------------------------------------------------------------|
| n                                     |                                                                        |
| . - cf. birth certs. in Times to-day. |                                                                        |
|                                       | Ministers will be asked by P.Q. when                                   |
| leg                                   |                                                                        |
| n                                     |                                                                        |
| will be taken.                        |                                                                        |
|                                       | Will P.M. make statemt. early in Session tht. p'mme is full?           |
|                                       |                                                                        |
| P.M.                                  | Will arise in Debate on Address - H.M. or I can make such a statement. |
|                                       |                                                                        |
|                                       |                                                                        |

## 4.     Mining Of Destroyers In Corfu Channel.


                                   [Enter C.O.S., G.H., F.B., de Fritas, J.W. 
G.H. 
Read from brief. 
 
Consultns with F.O. not complete. C.N.S. 
Intern. w'way joining 2 seas:  legal posn is clear, even tho' less than 3 miles 
wide. 
 
 
Important for small craft:  we have habitually used it. 
 
 
Swept originally early in '44 - to clear known mine-fields, it follows 
closely Albanian coast.  Intern. Mini Clearance Bd. issues periodically 
Med. Route Instns and a chart, giving details of channel:  20 copies go 
to Alb. Govt. who have had many earlier opporties of raising objn. 

 
No proof Albanians laid the mines.  By Fr. statement to U.N. looks as tho' 
they did.  If we recover a mine on sweeping, we get proof. A.B. 
Why shd. we sweep it alone if other Govts. agree. C.N.S. 
C-in-C Med. has a force together.  We told him not to use G.K. sweepers 
because of the tension. 
 
 
Discussion suspended - for F.O. views to be obtained. 
5.     National Service. P.M. 
Record decision that Bill shd. not apply to N. Ireland. 
 
 
Agreed. 
C.P. (46) 380  Para. 8. P.M. 
a) discussed already. 
 
b) care required in selection of Apprentices and Students. G.A.I. 
We have put in hand arrangements to test tht. apprenticeship is bona fide. C.E. 
Need to ensure they start to learn at outset - will shorten apprenticeship. G.A.I. 
Can get co-opn thro' Joint Adv. Council (new). P.M. 
Will need a tight system in Bill. 
 
G.A.I. 
Average period now 5 yrs.  May get it down to 4. E.W. 
M/Ed. want to be associated with schemes for youngsters in Services.    } P.M. 
Not relevant here:  but shd. be taken up & referred higher (?A.V.A.) if   } 
diffies. 
                                   } A. 
7 years goes v. high.  Cd. it be reduced? R.S.C. 
Med. Students. G.A.I. 
21 industrial:  25 students? P.M. 
Politically v. dangerous. 

 A.B. 
Have we decided on 11/2 vice 1 year?  The extra 1/2  year will increase 
controversy. 
 
 
That is where the effective criticism will come. 

 P.M. 
Criticism anyhow.  Criterion shd. be efficiency.  We concluded 11/2 
necessary to get an effective system. 
 
H.D. 
Flexible & defensible.  Carry on at 11/2 as now, with power to reduce when 
circs. warrant it. 
 
 
Agreed 11/2 years. 
(c) Refresher Training R.S.C. 
Shd. be shorter period. 
 
P.M. 
3 weeks:  & not necessarily every year, part soon after original service C.A.S. 
Want one stat. requiremt. applic. to all Services.  But in practice we shall 
vary, even w'in a Service.  Wd. like a maximum, with liberty to adjust administratively. E.Sh. 
Flexibility on time or season  e.g. miners & farmers. F.B. 
Cd. be adjusted.  Liaison with civil Dpts. A.B. 
This on top of holidays will involve services w'drawal from prodn. R.S.C. 
50.000 man years is my estimate. C.A.S. 
Tradesmen workg. in their trades in Civil life needn't be called up for as 
long as air-crew. 
 
P.M. 
This means you can't calculate loss to prodn. A.V.A. 
Won't begin to be effective until 1952. 
 
 
Accept principle of refresher training = & flexibility.  Work  

        out detailed scheme.  Perhaps Maximum over the 51/2 years. 
 

## (D) Medically Unfit.

 P.M. 
On M/L memo. - how do you select from Grade III? G.A.I. 
Obligation if services can use the man. R.S.C. 
But how choose between Jones & Smith? P.M. 
Total exemptn based on failure to employ in Services. G.A.I. 
Easier to omit Grade III:  but thought Def. Cttee wanted to include as many 
as possible. A.B. 
Advantages of incldg III - avoids getting cream into Services. P.M. 
Why add some we never called up in war. 
 
 
Agreed:  call up only Grades I & II.  Make II easier. 
 
      (e) Conscientious Objectors. P.M. 
Can't let a c.o. stay in own job, even if its agriculture.  Must go to another 
job. A.V.A. 
Goes:  can you make it tighter than in war. 
 
R.S.C. 
No:  leave it as now - its well understood. P.M. 
Disagreed:  not same as in war.  Can't in peace have him in same job. 
 
 
Can't, of 2, take one & have another. R.S.C. 
Don't exclude that
 possibility.  Leave discretion to Tribunal.  Or put him 
subject to M/L direction. A.B. 
Must move the c.o. from his own job - even if you left him in own craft. H.D. 
Power of M/L direction shd. cover it. 
 
 
Agreed. 
(f)  Women P.M. 
No conscription for women. 


Agreed. P.M. 
Announcement.  I will outline scheme in Debate on Address.  Making it 
clear not commd on detail. H.M. 
W. Paper either now (for talk on Address) or on introdn of Bill. P.M. 
The latter. 
 
The Bill - responsibility with M/L and M/D. 
 
 
Agreed. C.E. 
Training of men for Civil Defence. 

 
[Enter H.McN. 
P.M. 
Will be kept in mind. 

## 4. (Contd) Mining Of Destroyers In Corfu Channel.

 H.McN. 
Albania cd. ask for it to go on Assembly Agenda.  Tho' we wd. prefer Sec. 
Council.  In either event our pol. case wd. be damaged if we first went ahead with sweeping w'out askg. Albania. C.N.S. 
They have no sweepers. H.McN. 
They cd. ask someone (eg Yugoslavs) to do it for them. A.V.A. 
F.O. suggn cuts across internatl organn for sweeping.  R. are repd there. 
 
P.M. 
Med. Minesweepg. Bd. decision 2 days ago.  Can we ascertain whr. R. repve 
was present. A.V.A. 
Delay will reduce chance of P.M. 
I wd. like E.B.'s views.  Delay action m'while:  & find out if R. was present 
on Bd. & what line he took. 
 
 
Agreed:  decision to be left to P.M., with A.V.A. & G.H. 


[Enter Barnes & J.B.H. 

                                        [Exit C.O.S., de Fr., F.B., G.H., J.W. 

## 6.     United Kingdom Bread Supplies.

 P.M. 
Does this memo. take sufft. a/c of Cab.'s decision of last week re general 
approach. 
 
J.S. 
Yes:  not inconsistent. H.McN. 
Separate approach as in 4 wd. prejudice any subseqn. approach re world as a 
whole & esp. for B. Zone.  If we had got the 860.000 T. we shd. be asked to contribute out of that. 
 

| J.S.                                                                   | We put whole picture before them.  But we shd. emphasise tht. - quite apart    |
|------------------------------------------------------------------------|--------------------------------------------------------------------------------|
| fr. B. Zone, where all we want of them is pooling - if we are to avoid |                                                                                |
| reducing bread ration we must have wheat fr. U.K.  Want auth           |                                                                                |
| ty                                                                     |                                                                                |
| to put                                                                 |                                                                                |
| U.K. demand on 1                                                       |                                                                                |
| st                                                                     |                                                                                |
| priority.                                                              |                                                                                |
|                                                                        |                                                                                |
| H.McN.                                                                 | If we get agreemt. on 700.000 t. w'out agreemt. re Germany, we are no          |
| further  whole case shd. be argued as one.                             |                                                                                |
|                                                                        |                                                                                |
| J.B.H.                                                                 | Read telegram fr. Berlin on conversations with Clay on pooling.                |
|                                                                        | 1.3 m. tons fr. Canada not allocated.  Canada won't let their wheat go to G.   |
| U.S. believe pressure must be put on U.K. to force Canadian wheat to   |                                                                                |
| G. - wh. Canada want to use for re-entry to commercial markets.        |                                                                                | J.S. 
Canada's supply is limited, whatever the availabilities. Wd. be madness to 
divert to G. any of what they can ship. 
 
The view reflected in this telegram is what we must fight in Washington. P.L. 
Don't overlook India.  Shippings slipping.  Hope E.B. is going to present the 
whole picture. & as soon as possible. P.M. 
That is agreed. J.S. 
Yes:  but hope we won't put India & Germany before U.K. 

 

| R.S.C.    | Let E.B. have some discretion how he puts his case.        |
|-----------|------------------------------------------------------------|
|           |                                                            |
| P.M.      | Don't let us go over ground of last Thursday's discussion. |

 

J.B.H. 
Is recommendn 14 (ii) accepted? 

 

| P.M.                                                            | Yes.  Was agreed that 2 Zones be pooled.  That relieved us of supplying out    |
|-----------------------------------------------------------------|--------------------------------------------------------------------------------|
| of U.K. stocks.  We must have a firm decision on this & make it |                                                                                |
| known to U.S.                                                   |                                                                                |
|                                                                 |                                                                                |
| H.McN.                                                          | Is it reasonable for Cab. to decide that 836.000 t. must go to U.K. when they  |
| don't know what total available will be.                        |                                                                                |
|                                                                 |                                                                                |
| J.B.H.                                                          | 836.000 is figure req                                                          |
| d                                                               |                                                                                |
| to abolish bread rationing by 1                                 |                                                                                |
| st                                                              |                                                                                |
| Sept.  We are askg.                                             |                                                                                |
| U.S. to guarantee that.                                         |                                                                                |
|                                                                 |                                                                                |
| H.McN.                                                          | Can Cab. be asked to review later, 14 (ii), if need arises?                    |
|                                                                 |                                                                                |
| P.M.                                                            | Cab. like the Ritz is open to all (Ministers).                                 |
|                                                                 |                                                                                |
| A.                                                              | India:  must do more to help themselves.  We are diverting to India Aust.      |
| wheat that might come to us.                                    |                                                                                |
|                                                                 |                                                                                |
| J.S.                                                            | Austr. want to re-enter U.K. market.  It is for consid                         |
| n                                                               |                                                                                |
| whr we shdn't allow                                             |                                                                                |
| some - and let India draw pro tauts on Argentine U.S. etc.      |                                                                                |
|                                                                 |                                                                                |
|                                                                 |                                                                                |
| P.M.                                                            | Agree long-term.  Diversion made only because short haul.                      |
|                                                                 | Switch back, partially, as soon as cond                                        |
| ns                                                              |                                                                                |
| permit.                                                         |                                                                                |
|                                                                 |                                                                                |
| J.B.H.                                                          | Germany.  B. Zone: deficit 90.000 at end of Oct (? Nov).                       |
|                                                                 |                                                                                |
|                                                                 |                                                                                |
| P.M.                                                            | We can't avoid line suggd in 14 (ii).                                          |
|                                                                 |                                                                                |
| J.S.                                                            | May Control Ofl. be instructed to join with M/F in attacking U.S.              |
|                                                                 |                                                                                |

H.M. 
And instruct C.C. tht. we can't provide & they must make that clear to their 
U.S. colleagues. 
Rec. 14 (v) J.S. 
If this memo. approved, I will consider how scheme can be improved. P.M. 
Wait until we have proposals. R.S.C. 
Make it quite clear that rationing will continue. 


[Exit J.B.H. 
 
7.     Groundnuts in Central Africa. C.J. 
Heavy capital outlay - wd. need more examn - but some start must be made 
at once if any early benefit to be got. 
 
Scheme wd. start under M/F. - w'out using funds of Col. Development 
Fund. Contemplate early establmt of Corpn:  then share with Col. 
Govts.:  eventually pass over whole thing to Col. Govts. 
 
Figures based on v. conservative estimates. 
 
Propose to start only in Tanganyika.  Capital wd. go largely in clearing bush 
buying plant & equipment, bldgs. J.S. 
Need more urgent since U.S. de-controlled fats.  60% of present ration 
comes fr. Empire:  must increase it & quickly. 
 
Recognise I shan't get any excavators etc. for U.K.  Can improvise with 
surplus vehicles etc. H.D. 
Support in principle mainly because of switch to sterling sources of supply. 
 
Agree to £3m. on condn a) M/F run it, not C.O.  b) U.K. get the fats, not a 
pool. E.Sh. 
This really can't be done w'out plant.  M/F say 100 crawler tractors. And 
they say you can get them in Africa.  Why weren't we told.  We wd. 
have liked them. J.S. 
We aren't expectg. any from open-cast coal.  We think we can do somethg. 
with improvised machinery.  If we can't, the project fails. H.M. 
Cdn't we have a quick report in 2 wks. 

 J.S. 
a) then short-term 1948 crop wd. be missed. 
 
b) 2 wks is too short for the long-term scheme. 
 
 
Agreed: on understanding tht. it doesn't involve upsetting other  

             appd schemes for which special types of tractors are 

             required. A.V.A. 
Cd. we have a rpt. on fats in interim - 2 years. 

 R.S.C. 

Comes up every month in L.P. Cttee.  Let A.V.A. see L.P. pp. 

## 1. U.N. Indian Complaint V. S. Africa

 
A. 
Art. 2(7) of Charter - "essentially". 
 
S.A. law on land acquisn:  Smuts says "domestic jurisdn ":  A.G. queries that 
because of "essentially".  Smut says, then let it go to Internatl Court. 
 
If we agree this is not "domestic", we shall be opening door to scrutiny 
anywhere in Empire - v. dangerous door for us. 
 
Nothing will please India short of support of their case on merits. 
 
If we hesitate, we shall give offence to Dutch nationalists in S. Africa. P.M. 
Right line to take to support reference to Court. 
 
S.G. 
Off hand opinion - this is w'in words about domestic jurisdn. J. 
I wd. have thought so too. 
 
Canada is deporting C. born Japanese - Privy Council have upheld their 
right to do so. 
 
Strongly support our line 
a) m'tain it's w'in 2 (7) b) if disputed refer to Court. P.L. 
R.S.C. asked for legal issue to be brght to Cab. 
 
A.G. thinks our legal ground isn't sound - & we'll be beaten on it. 
 
India will take our attitude v. much amiss.  If we're defeated on it, it will be. 
v. bad for us. 
 
Second ques:  Indians who aren't S. A. nationals are also affected by the 
legn. 
 
 
They are the concern of the Indian Govt. 
 
A.B. 
Legn discriminating r. one class of citizen is surely a matter for internatl 
concern. 
 
Cabinet are abandoning their internationalism. H.McN. 
Intern. Court doesn't make law, only interprets.  Doubt if this shd. go to 
Court until Human Rights are defined. S.G. 
A.G.'s point is apparently inconsistency betwn. 2(7) and 55 of the Charter. H.D. 
This ques. shd. be kept out of U.N.O. C.J. 
Agreed.  In Col. territories there are groups wh. can't be integrated fully into 
life of community.  It isn't a ques. of discriminatory legn. 
 
Let interpret n of 2 (7) go to Internatl Court. A.B. 
Agree that ques. of interpretn of 2(7) shd. go to Internatl Court. P.M.  
{We must argue that this is domestic jurisdn
                        {We must support reference of this, if disputed, to Intern. Court.  


    Agreed  
        
(P.L dissenting)       Tell our Delegn what wd. be the repercussions on India & Empire of 
opp. Line. 

## 2. War Crimes:  Trial Of German Industrialists.

 

| P.M.                                                                | German industr. not put on trial at Nuremberg.  Ques:  shd. they be tried    |
|---------------------------------------------------------------------|------------------------------------------------------------------------------|
| subseqn. by Zonal trials.  Our view was against.  U.S. have however |                                                                              |
| started such a trial in U.S. Zone & asked us to hand over ½ doz.    |                                                                              |
| industrialists now in our Zone.                                     |                                                                              |
|                                                                     | Danger:  if we concede this demand, we may have to surrender, on demand,     |
| to other Zones - on ground that we aren't trying them ourselves.    |                                                                              |

 J. 
We are  bound by Treaty to hand over unless we are going to try ourselves. 

|               |
|---------------|
| prob. acquit! |

 J.S. 
Surrender them - on pooling basis. A.V.A. 
Risk of demand from Soviet Zone - for S.P.D.  T.U. leaders. J. 
Then we can try them. P.M. 
That wd. be discriminatg. between U.S. and Soviet justice. 
 
We cd. denounce the agreement.  But wd. be said we favoured industrialists. 
                     x/ Agree to hand these over.  But don't make a decision now that we will in no 
circs. hold trials in B. Zone.  Try to bring these trials to an end. 
 
 
Agreed at as x/. 
3. India:  Proposed Question in H/Lords.
 

| P.L.                                                                   | As in Minute to P.M.  Private Notice Ques. for Tues. by Ld. Salisbury - not    |
|------------------------------------------------------------------------|--------------------------------------------------------------------------------|
| dissuaded by letter wh. I wrote to him.                                |                                                                                |
|                                                                        | Disc                                                                           |
| ns                                                                     |                                                                                |
| have bn. lengthy - not all written - 3 sided - many demands put fwd.   |                                                                                |
| by all 3 wh. they later had to modify or w'draw.  V. undesirable to    |                                                                                |
| publish all that.  But some publ                                       |                                                                                |
| d                                                                      |                                                                                |
| already in India - e.g. betwn Jinnnah                                  |                                                                                |
| & Congress:  Viceroy & Jinnah.  Diff. for us to w'hold that here.  But |                                                                                |
| if confined to that, wh. is incomplete, demand for full publ           |                                                                                |
| n                                                                      |                                                                                |
| will be                                                                |                                                                                |
| stimulated.                                                            |                                                                                |
|                                                                        | Motion for Papers in H/Lds.  Awkward if it's carried.                          |
|                                                                        | Cd. say to-morrow we wd. consider: but that wd. only p'pone the issue.         |
|                                                                        |                                                                                |
| A.V.A.                                                                 | We can't refuse statement re riots:  how far B. troops used.  But r Form       |
| n                                                                      |                                                                                |
| of                                                                     |                                                                                |
| Coalition Govt. in India:  same diff                                   |                                                                                |
| ies                                                                    |                                                                                |
| as might be encountered in                                             |                                                                                |
| formg. Coalition Govt. here:  v. good reason surely r. publishing such |                                                                                |
| proceedings.  The publ                                                 |                                                                                |
| ns                                                                     |                                                                                |
| made there are matters for Parties there.                              |                                                                                | P.M. 
What if they carry a Motion for Papers? J. 
No one knows what happens! 
 
Believe they will take it - if we put the issue on A.V.A.'s line. 
 
 
Agreed. 

 
4. 

## Palestine

 C.J. 
Nothing to add to memo. 
 
Diff. to continue to detain indefinitely.  Agency anxious to creep back into 
co-opn of some kind:  we want to rally moderate J. opinion behind 
Agency. 
 
Resoln passed not all we cd. wish:  but courageous:  supported by speech of 
leaders in Pal. 
 
This is favourable moment for us to contribute to restorn of order.  Risk tht. 
further opportunity mayn't arise. 
 
H. Comms. agrees. 

 
Arabs wd. also be released. 
 

|     |
|-----|
|     |
| 5.  |

## Import Programme, 1947

 H.M. 
Introduced memo.:  stressed para. 3. P.M. 
£17M of films - tho' no suppl. food & no abolishing of petrol rationing. M. 
Films better value than food, throughout the country. 
 
H.M. 
Not enough B. films to fill the gap.  That was B/T. argument.  M/H. suggd in 
earlier discussion change the films once, vice twice, a week. A.B. 
The point was that you wdn't save money - because payment is on basis of 
%age of cinema takings.  Unless you changed that structure, you wdn't save dollars. P.M. 
Let R.S.C. give me a report later. H.D. 
The outlook is ugly.  Threatens real trouble in 1949, if not earlier.  We 
shan't be able to pay our way w'out swinge- ing cuts - & wd. be hooted off the stage. 
 
Recommns  


i) import p'mme as in para. 18 of App. B. with £10M. more for 
food. 
 
Wd. have liked to meet E.Sh. over petrol rationing.  Can't afford it. 


ii) export target at 150% of 1938. 
 
Export drive done well, but v. precarious 
a) supply of material to maintain it. 

prices':   how long will a sellers' market hold. 
b) 
iii) study proposals in para. 12., subject to addn (v) in covering 
memo. 
 
Total picture:  we are buying too much from & not selling enough to N. 
America, Sweden and Argentine.  Gave figures in support. 
 
And fr. July '47 sterling will be convertible for current transactions - & 
Europ. currencies won't be.  This means a deficit with these countries, to be met in gold & dollars.  & surpluses with e.g. France wh. will be recognised only as sterling credit. 
 
Must therefore be more direction of export & import trade.  viz. recommns in 
para. 21.  
 
High level overseas expenditure, mil. & political.  As a whole, its too high. 
Competition with imports. 
 
M. 
This is agreed memo.  Followg. comments are by of gloss - 
a) deliberate direction of exports wd. be retrograde.  We cd. however, 
guide them to hard currency countries.  Some exports to soft countries will bring dividends later. 
b) want import of goods in return for exports.  Can't do it by barter. 
Must be thro' financial control. 
c) Wd. it be prudent temporarily to raise external value of £1. H.D. 
We are strongly against it. P.M. 
Hunt that have bi-laterally. M. 
d) Is tourist expenditure more than we can afford?  £75 p. head as cpd. with 
8d p. head on films. H.D. 
Heavy pressure on me to go above £75.  Believe this compromise is about 
right pro tem.  Will watch it. J. 
Suggest the public shd. know the facts.  The broad picture. J.S. 
Prodn value of food imports. E.Sh. 
Not as depressing as H.D. suggests. 
 
Vital issue.  External posn must be split in 2:  sterling & dollars.   Only the 
2nd is diff:  & tht. high prices in U.S. followg. decontrol. 
 
U.S. prices may crack.  That reduced the gloom. 

|                                                                   | Overseas expenditure. £320M:  and £175M for 1947.                        |
|-------------------------------------------------------------------|--------------------------------------------------------------------------|
|                                                                   |                                                                          |
| H.D.                                                              | And '47 will be higher.                                                  |
|                                                                   |                                                                          |
| E.Sh.                                                             |                                                                          |
| re                                                                |                                                                          |
| to be considered in rel                                           |                                                                          |
| n                                                                 |                                                                          |
| to total.  In G.                                                  |                                                                          |
| $160 M are being spent.  I only asked for 33M same in Malaya etc. |                                                                          |
| That exp                                                          |                                                                          |
| re                                                                |                                                                          |
| will diminish - & with it the dollar burden w'in it.              |                                                                          |
|                                                                   | Invisible exports.  For '46 £95M: for '47 £85M.  Why?                    |
|                                                                   | Now derived mainly from shipping.  Wd. have thought they might increase. |

 
The picture is not therefore so gloomy.  On P.7 (para. 6) we shall have 
£1.500M available to us by end /46. 
 
Petrol. 


i) considerable evasion. Can't tighten up the adminn.  Can't 
sustain morality of the scheme.  The rot may spread throughout the control system as a whole. 
 
 
30 M dollars isn't large in this context - you cd. find it by economies 
of dollar expendre in B. Zone. 


ii) Last time it wasn't dollars, it was tyres. 


No trouble here on tyres:  any longer. 


iii) wdn't object to increase in price.  Tho' wdn't earn any 
dollars. 
 
P.M. 
Don't overlook amount of our petrol exports. E.Sh. 
It's our largest export at present.  M/E petrol goes to Doms., F/East etc. & 
earns many dollars. 
 
Austr. are now going to abolish rationing.  Ask for another 10M galls. 
 
 
But even if they can't get it, they will take a chance on it. A. 
S. Africa can afford dollar petrol. H.M. 
Why not leave petrol pro tem.  But re-examine in light of para. 21 enquiry, 
esp. 21 (iv).  Shdn't take long. P.M. 
True that p. rationing is workg. badly & rot may spread.  The sooner we can 
end it the better. A.B. 
Suppose scheme deteriorates, when will you reach the $30m.? H.D. 
Never.  For this is a firm p'mme for petrol imports. 
 
 
Approve p'mme as it stands. 


[Exit J.W. Marquand. 
     
 
6. Exchange Control Bill. H.D. 
As in memo. 
 
My answer to S.G. is:  this went uncriticised when operated under D.R. 
during the war. S.G. 
Nothing to add to memo. 
 
Thought I shd. draw attentn to stringency:  but agree nothg. less wd. do what 
is needed.  As in last para. of memo. 

 P.M. 
Wd. H.D. see legal experts on Opposn. H.D. 
No:  I wd. rather fight it. 
 
| C.E.                                                      | Courts may be unwilling to enforce some of these provisions - I said this at    |
|-----------------------------------------------------------|---------------------------------------------------------------------------------|
| L.P. Cttee:  but now w'draw it.                           |                                                                                 |
|                                                           |                                                                                 |
| J.                                                        | This is the most drastic Bill ever introduced in peace.  But if you agree to    |
| reveal the situation wh. it is designed to melt, v. well. |                                                                                 |
|                                                           | Advisory Council, on workg. of scheme, in Coal Bill & another.  Some            |
| analogous procedure wd. help.                             |                                                                                 |
|                                                           |                                                                                 |
| H.D.                                                      | Will consider that - as concession by amendment.                                |
|                                                           |                                                                                 |
| A.B.                                                      | Popular wicket for H.D. here.                                                   |
|                                                           | But precede this Bill with publicity for Item 5.                                |
|                                                           |                                                                                 |
| P.L.                                                      | Make it clear these powers are workg. to-day.                                   |
|                                                           |                                                                                 |
| A.                                                        | Reserve some concessions for H/Lds.  Don't give them all away in H/C.           |

 

| H.McN.     | Will H.D. send advance inform   |
|------------|---------------------------------|
| n          |                                 |
| to Snyder? |                                 |
|            |                                 |
| H.D.       | Arranged.                       |
|            |                                 |
| H.McN.     | Brief for B.I.S.                |
|            |                                 |
| H.D.       | Yes.                            |
|            |                                 |
|            |                                 |
|            |                                 |

 
7. 

## Elections:  Re-Distribution Of Seats.

 

| C.E.       | If approved, I wd. communicate with Boundary Comm   |
|------------|-----------------------------------------------------|
| ns         |                                                     |
| & hold up. |                                                     |
|            |                                                     |
| P.M.       | No announcement until Debate on Address.            |
|            |                                                     |
|            |                                                     |

 
8. 

## Remembrance Day Ceremony: Cenotaph.

 

| C.E.              | Important occasion.  New inscript                                   |
|-------------------|---------------------------------------------------------------------|
| n                 |                                                                     |
| will be unveiled. |                                                                     |
|                   |                                                                     |
| P.M.              | Hope as many as possible will attend.  De Freitas to represent N.B. |

 

## 1. Food Situation In Germany.

 
H.D. 
Stated position in B. Zone.  J.B.H. subsequently supplemented this. J.S. 
Immediate need = disabuse U.S. mind on Canadian position.  Their 
shipments to U.K. are slipping. P.M. 
We must press U.S. - thro' E.B.  Also must see what guidance we can give 
to U.K. Press. H.D. 
No real risk of public disorder. 
 
A.B. 
Statement by B. official in G. tht. there wd. be diversion fr. U.K. J.B.H. 
Direction issued after last mtg. of Cabinet.  Sh-D. will look into this on 
return. H.D. 
Cdn't we educate the U.S. authies in G. re Canada. Sh.D. 
H'to we haven't known the facts.  Clear it in U.S. first, for it is thence it 
came. J.S. 
I will communicate facts to C-in-C thro' Control Office. 
 
 
Cabinet took note. 


[Exit J.B.H. & Sh.  

        Douglas. 


[Enter Listowel. 

## 2. International Organisations.

 H.M. 
Confusion of these organisations - 
 
 
a) need of adequate Secretariat. 
 
 
b) trying to do too much.  Must get some priorities observed. 
 
F.A.D. for practical purposes haven't got beyond Hot Springs. P.M. 
Endorsed this view.  Time when I found so many Ministers away.  
Interviewed to prevent Ministers going to U.N.E.S.C.O. - & Tories criticised that! 
 
Summarised agencies estabd or proposed - let alone the Commns. 
 
If you group together, it means U.S.  V. heavy financial burden. A.B. 
Fault lay, not in establishg. these, but in associatg. them with U.N. 
 
Much to be said for internatl agencies at functional level viz. not with U.N. 
when they become playground for international politicians. 
 
Don't undervalue internatl mtgs. of technical experts. 
 
| H.McN.                                                                  | H.M. makes 2 pts.  On a) I strongly agree.  Want E.B. to say at U.N. it shd.    |
|-------------------------------------------------------------------------|---------------------------------------------------------------------------------|
| be limited.  Also want to support permission to appoint appt            |                                                                                 |
| mt                                                                      |                                                                                 |
| of                                                                      |                                                                                 |
| Deputy Secretary Genl.  Also warning tht. we are going to put in        |                                                                                 |
| memo. suggesting means of improvg. Secretariat.                         |                                                                                 |
|                                                                         | On siting, Cab. did discuss in Nov. & didn't dissent fr. grouping.  Common      |
| services:  Ministers may cover more than one mtg.  Wd. ask at least for |                                                                                 |
| delay on decision v. grouping.                                          |                                                                                 |
|                                                                         | Finance. Costly.  But while it's them U.S. will carry big share - at present    |
| 49% because dollar cost.                                                |                                                                                 |
|                                                                         | True we haven't bn. successful in promoting centralisation.                     |
|                                                                         |                                                                                 |
| P.M.                                                                    | Review in light of developmts. since Nov.                                       |
|                                                                         | Too much in U.S. hands:  may emphasise breach betw. E. & West.                  |
|                                                                         | Danger of not internat                                                          |
| l                                                                       |                                                                                 |
| but under Eagles wing.                                                  |                                                                                 |
|                                                                         | These are arguments for some agencies in Europe.                                |
|                                                                         |                                                                                 |
| H.D.                                                                    | Always advocated U.N. in U.S. because m'taining U.S. interest.                  |
|                                                                         | Doesn't follow everything shd. be there.                                        |
|                                                                         | No need for absolute principles.                                                |
|                                                                         | Each case on merits.  Strong case for having I.T.D. out of U.S. - to avoid      |
| comm. policy being discussed near U.S. pressure groups.                 |                                                                                 |
|                                                                         | Want P.I.C.A.O. in Montreal - to secure Canadian interest.                      |
|                                                                         | Bank & Fund:  glad they are in W'ton. because Bank must raise dollars in        |
| N. Yk.                                                                  |                                                                                 |
|                                                                         |                                                                                 |
| ce                                                                      |                                                                                 |
| until Sept. & they                                                      |                                                                                 |
| will then come to Ldn.                                                  |                                                                                 |
|                                                                         | Endorse McN.'s point on finance.                                                |
|                                                                         | Cd. we review the agencies & see which cd. be clipped.  I wd. support           |
| murder of F.A.O. - now that U.S. won't play.                            |                                                                                 |
|                                                                         |                                                                                 |
| J.S.                                                                    | Short of world buffer stocks, F.A.O., is no practical use.                      |
|                                                                         |                                                                                 |
| A.B.                                                                    | Discussed with Can. M.H. y'day siting of W.H.O.  I favour not in U.S.  For      |
| we are aiming at post. grad. schools in Ldn. - as centre for the world. |                                                                                 |
|                                                                         | Can M/H. favoured Geneva.  That wd. be preferable to U.S.                       |
|                                                                         |                                                                                 |
| H.M.                                                                    | Siting implies a H.Q. staff.  Not merely conferences.                           |
|                                                                         |                                                                                 |
| L.                                                                      | Want U.P.U. & I.T.U. to remain at Berne.                                        |
| a) don't want political atmosphere.                                     |                                                                                 |
| b) fear U.S. pressure groups - commercial.                              |                                                                                 |
| c) want liaison with U.N.                                               |                                                                                 |
|                                                                         |                                                                                 |
|                                                                         |                                                                                 |
| G.A.I.                                                                  | I.L.D. want to leave U.S.  Haven't reached a decision finally.  Reason:         |
| losing support of smaller countries.  Their next conf                   |                                                                                 |
| ce                                                                      |                                                                                 |
| is to be at                                                             |                                                                                 |
| Geneva.                                                                 |                                                                                 |
|                                                                         |                                                                                 |
| A.                                                                      | Proliferation of Secretariats.  Description by Cockram.                         |
|                                                                         |                                                                                 |

P.M. 
Circulate it. 
 

| P.M.    |
|---------|
| U.S.    |

 
 
Certainly U.P.U. & I.T.U. shd. stay at Beruc. 
 
 
Secretariats shd. be reduced.  We shd. see report from Gladwyn Jebb:  
& take a line on this. 
 
 
I.O.C. to make a report on the Secretariat.  G.J.'s report as a basis & 
Cockrams:  working party under I.O.C. H.A.M. 
F.A.O. & I.T.O. shd. be together.  But I.T.O. shd. not be in U.S. 
 
 
Agreed. 

 
A.B. 
No steps to site W.H.O. (if any) in U.S.                              Agreed. 

 
No-one must advocate siting it in U.S.                                Agreed.  

          

                                                       [Exit L., H.McN., 

        H.A.M. 
3. Divorce. J. 
1) We must publish the Rpt. 
 
2) Are we to implement it? 

 
1945: 25.000 petns filed.  1946: 40,000 (estimated)  1947: 50,000. 

 
Compares with 800 when I was called to Bar! 
 
Can't cope with existg. Judge. power.  This plan wd. enlist help of C. Count 
Judges sitting for this purpose as High Ct.  Compromise.  But supported by Bar, Law Society, Co. Ct. Judges, Labour Legal & Parly. Group, Haldane Socy., L.C.J. (who wants to relieve K.B. Judges of this work).  Believe Archb. Cantuar will support.  Per contra, President of 
Divorce Ct. is strongly opposed.  He admits supernum. Judges regud:  
he wants 6, to do whole time what 60 Co. Ct. Judges wd. do in 10% of their time.  But a) don't think any Judge shd. work only on divorce.  b) 
Diffy. re accommn, lodging, marshals etc., avoided by using local Co. 
Ct. Judges.  c) Hope this = temporary problem.  3 yr. job:  what about pension at end?  President's scheme wd. involve using inferior Judge. 
 
 
My scheme is cheaper: involves no legisln. E.Sh. 
Underfunded cases only? J. 
Mainly - see para. 3. C.E. 
Support this as a compromise.  May develop into a Co. Ct. jurisdnn:  but 
only if experience supports that change. J. 
If it works, I shan't fill all accruing vacancies in Div. Div'n. 
 
 
Agreed.  Publish & implement. 

## 4. Exchange Control Bill.

 H.D. 
Publicity.  Shan't have opportunity until I speak in debate on Address.  Want 
to publish Bill before that. (Wed. next)  Can I speak early in the debate? 
 
 
Wd. like to publish Bill on Wed. & speak on Thurs. H.M. 
Premature.  Shan't have a plan until Monday.  The Opposn may table 
amendment. H.D. 
Then may I publish on Wed. & take a Press conference.  Spkg. when 
convenient in the debate. 

 
 
5. Princess Elizabeth:  Twenty first Birthday.

| P.M.                                                                  | Princess E. will soon become 21.  No precedent for Parly. action - resol   |
|-----------------------------------------------------------------------|----------------------------------------------------------------------------|
| n                                                                     |                                                                            |
| or                                                                    |                                                                            |
| present.   Suggest we don't go by precedent.  Sugg                    |                                                                            |
| n                                                                     |                                                                            |
| made by individual                                                    |                                                                            |
| of nation-wide Fund.                                                  |                                                                            |
|                                                                       |                                                                            |
| C.E.                                                                  | Heir comes of age at 18.  Can't we say it's all over?                      |
|                                                                       | General view of Cabinet:  against nation-wide Fund.                        |
|                                                                       |                                                                            |
| P.M.                                                                  | Is there a case for a present by the Cabinet?                              |
|                                                                       |                                                                            |
|                                                                       |                                                                            |
| n                                                                     |                                                                            |
| made a dinner at                                                      |                                                                            |
| No. 10, if b'day is to be celebrated.  But on 21/4 she will be out of |                                                                            |
| U.K.                                                                  |                                                                            |

 
6. 

## Relief For Salford.

 A.B. 
Floods at Salford.  £200.000 damage to property etc. 
 
Shdn't we have an enquiry into Funds.  e.g. Lord Mayor's Fund etc. P.M. 
Not wise to appear to be pinching charitable funds etc. 
 
Wait until it's raised by Private Members. A.B. 
Can I inspire that? 


## 1. Parliament

|      |                                                 |                         |     |                      |
|------|-------------------------------------------------|-------------------------|-----|----------------------|
|      |                                                 | Business for next week. |     |                      |
|      |                                                 |                         |     |                      |
| P.M. | P.Q. by Edelman.  Read draft answer.  Approved. |                         |     |                      |
|      |                                                 |                         |     |                      |
|      |                                                 |                         |     | [Enter: H.McN., O.S. |
|      |                                                 |                         |     | Stansgate            |

## 2. Egypt

 P.M. 
Seems that Sidky will accept proposals - possibly over week-end. 
 
Disclosures have, however, upset Sudan.  Govr. Genl. apptd by King/Egypt 
with our consent:  E. flag is flown: E. troops have bn. there.  But the 
adminn have played down E. counn so much tht. Sudanese will be 
shocked by Protocol.  Trouble expected:  administrators (Sud. & Br.) may resign: may be bloodshed. 
 
Letter fr. Govr. Genl. who is distressed over it. 
 
Telegram 2079 to E.B.  Reply to this read to Cabinet. (1613 Washington) 
 
Govr. Genl. has v. gt. influence in Sudan.  But they are not susceptible to 
argument over Egypt. 
 
Letter from Govr. Genl. to P.M. of 10/11 read to Cabinet. 
 
"Enforce the Protocol".  Nothing to enforce, save law & order, which isn't in 
the Protocol. S. 
Deprecate debate in H/C. to-day on Egypt. 
 
Egypt Parlt. meets to-day.  King will spk. re Treaty.  To-morrow, day of 
Prayer, Priests will speak of it.  Sat/Sunday the Delegation are expected to confirm.  If we get thro' to Monday, we are home. P.M. 
Have kept A.E. informed.  He will say no more than "no change in 
sovereignty or adminn". & we will say "that is so." O.S. 
A.E. on 2nd thoughts has decided to say nothing requiring an answer. H.M. 
Pity to flout the Sudanese, who like us, for the sake of the Egyptians, who 
don't. 

 R.S.C. 
Cd. we get some Sudanese leaders over here?  Talk to them & sooth them. H.McN. 
Can't announce such an invitation before Eg. crisis is over. R.S.C. 
Get the invitn in train., before an explosion occurs in Sudan. 
 
 
Agreed:  subject is timing. A.V.A. 
Send to Govr. Genl. our 4 points. P.M. 
Agreed:  separate letter. 

 R.S.C. 
Another letter to Govr. Genl. which can be shown to leading Sudanese - 
 
 
indicatg. tht. H.M.G. have considered his is repns & their posn is 
safeguarded. O.S. 
In train. for E.B.'s signature. P.M. 
Must go off. at once - I will sign. 


[Exit: Stansgate, 

         H.McN., O.S. 


[Enter: Wilmot & 

            Barnes. 
3. 

Transport Bill. J. 
Clause 18. If Co. exhausts assets by unauthd dividend, what happens to 
compensn. 
 

|          |
|----------|
| n        |
| w'drawn. |

 
Clause 22. Agreed. 
 

| R.S.C.}                                       | Clause 28. Some prov   |
|-----------------------------------------------|------------------------|
| n                                             |                        |
| is requ                                       |                        |
| d                                             |                        |
| to authorise paymt. into court: interpleader: |                        |
| J.       }                                    |                        |

 

|      |                |     |
|------|----------------|-----|
|      |                |     |
| H.D. | Clauses 83/85. |     |

 

|     |     |     | Agreed.    |
|-----|-----|-----|------------|

 
Clause 90. 

|             |                                                                            |
|-------------|----------------------------------------------------------------------------|
|             |                                                                            |
| B.          | Clause 97. No chance of getting views of Rly. Unions.  T.U.C. consent will |
| cover that? |                                                                            |
|             |                                                                            |
| H.M.        | Yes.                                                                       |
|             |                                                                            |
| P.M.        | Compensation terms.  Leave to H.D. to settle:  not for Cabinet.            |

 

| H.D.       |
|------------|
| stop that. |

 

| B.    |
|-------|
|       |

H.D. 
Public statement in H/Commons. 
 
"In Bill promised in speech it is intended to make proposals provision to 
H/C as follows…" 
 
P.L. 
Action re Local Loans has given trouble to trustees.  They will also be 
troubled by this. Drop in income from e.g. rlwy Debs.  This is unavoidable.  But don't add to that major grievance by being under generous as well. H.D. 
I take that point. 
 
 
Agreed: statement shd. be made. 
Para. 3 of memo. H.M. 
Para. 3 (a) - approved. 
 
 
Para. 3 (b) - Hotels etc., shd. be divorced from rlway management.  Good 
question to make special provision for appointment of Hotels Executive as soon as may be. P.M. 
Cd. it be empowered to run hotels etc., at Civil airports? B. 
Only if rlways have that power already. P.M. 
Consider that. R.S.C. 
Can restaurant car service be run separately from rlway operation? B. 
No reason against it. A.B. 
Why put this in Bill?  Better to preserve flexibility.  This is a machinery Bill 
- preserve administration elbow-room. B. 
I wd. have preferred to keep myself free. H.D. 
The other 3 are mentioned:  if so, better name the 4th. A. 
Cl. 5(3) gives power to establish another.  Askg. for Parly. trouble to include 
specific reference:  catering etc. H.M. 
Want to be sure that hotels won't be under the Rlway Executive. A.B. 
Don't mention any of the Executives. P.M. 
They you give no picture of the organisation. R.S.C. 
Will M/T. consult B/T. (tourism) re personnel? 
 
 
Yes.  Para. 3(b) approved. H.M. 
Para. 3 (c) W. Elliot is running the idea that Sc. industries shd. be separately 
organised on nationalisation.  Don't want to give cause for complaint 

by Sc. nationalists & semi-nationalists.  Wrong to have separate Sc. Advisory Cttees.  Hence compromise proposed in Para. 3 (c). J.W. 
Bill makes no provision for devolution in Scotland.  
 
 
a) Shd. provide for a Scottish Divn of each Executive. 
 
 
b) Shd. be a Scottish Advisory Council appointed by me & M/T. 
jointly.  Chairman a member of B. Transport Commn. 
 
 
c) Scottish rpves on Board of Commn & Executives. 
 
 
d) a co-ordinating Commn (?) 
 
Natn of transport in H. Islands.  Raised at mtg. in April.  No powers in fact 
included in Bill. 

 
{Exit W.W. 
 
B. 
This wd. mean re-casting whole Bill.  England isn't mentioned in Bill. 
Transport spans nationalist frontiers.  No interference with existg. 
office organisation.  You will have repve. institns in Scotland wh. you 
haven't now.  We shall take over rlway interest in steamer services to Islands. P.M. 
Steamer services outside scope of Bill. 
 
 
Agreed. B. 
Bound to be at least 2 Divns. in Scotland: and in Wales. (N. & S.) 
 
Grouping must follow economic not national boundaries. A. 
Support general idea of J.W.'s proposals. 
 
Separate adminve organn for Scotland is admittedly necessary.  Then say so 
in Bill.  We had to give way on Civil Aviation Bill.  Can't ignore the nationalist sentiment.  Don't know what form it shd. take; but there 
shd. be some concession. P.M. 
Formula of Para. 3(c) but adding "England". 
 
Otherwise, you imply this is a purely English Bill. 
 
Divisions will be made no doubt, but on functional basis. R.S.C. 
In Cl. 3(i) for "G.B." substitute "England, Scotland 7Wales". E.Sh. 
Won't satisfy the nationalist demand. H.M. 
On 2nd Rdg.  Minister cd. explain regional set-up in Scotland & Wales - 
consultg. sys. on terms of statement. P.M. 
In Cl. 6. use the phrase "take a/c of repn of various parts of U.K." 
 
 
Plus the proposal for Cl. 3. 
 
 
Don't want Para. 3(c) proposal because implies this is an English Bill. H.D. 
Make the Cl. 3 alteration:  & reserve further concessions for Cttee. 
 
 
Agreed:  consider what alteration to make on that basis. 

Transport Charges. 

 H.M. 
Whole structure of ratio for rlways in confusion because of bargains, statutes 
etc.  And road rates are chaotic.  There must be some new statement of 
general doctrine.  This - the principles.  Commn, with Advisory Cttee, 
will propose principles to Minister, who will submit to Parlt. in an order requiring aff. resolution.  This must be confined to general 
principles.  Order will require Commn to fix actual ration & will 
appoint Tribunal as appeal tribunal. 
 
Complex:  but much history back of this.  Also vast public monopoly: must 
be safeguards. R.S.C. 
Shd. there be any principles at all?  Tendency for 50yrs. to get away fr. 
principles (e.g. undue preference) in rlway rates.  Main princ. = charge 
on cost or what traffic will bear.  First wd. mean higher freights for 
coal & steel.  On 2nd basis you are in sphere of political considns. e.g. 
preferences to exports, agric. products (always given h'to).  These ques. are nothg. to do with rlway rates.  How lay down such principles in advance, when entering a planned economy.  Better leave it all at large - subject to appeal on particular rate when fixed. P.M. 
Then, if no principles, on what do you base an appeal? 
 
B. 
State monopoly - must review rate structure:  must announce some form, 
rules, principles - at least on 1st  round.  Commn must pay its way:  can't 
therefore revise rates until establd & know where they are:  then they 
must review existg. rate structure:  Minister wd. exercise supervision 
thro' power of direction.  The Advisory Cttee apply a critical eye to results.  Then criteria for charges will stand for years. R.S.C. 
That is the trouble.  Too rigid. H.M. 
Political considns - yes, but political pressures. R.S.C. 
Transport rates affect whole set up of industry.  These organns can't look at 
rates fr. angle of national economy:  their concern is to make the rlways pay. 

 A.V.A. 
No Parly. share in rate fixing. 
 
Don't hamstring this machinery with Parly. control. H.M. 
If Commn is to operate in acc. with a planned economy, who will give 
directions. R.S.C. 
No genl. code of principle to guide Rlway Rates Tribunal. 

 B. 
Surely with public monopoly you can't get away with existg. ch. 
 
 
[Part here not heard] 
 
R.S.C. 
Argued in favour of system of R. R. Tribunal.  Risk of driving everyone into 
exceptional charges. 
th of workers.  Danger of upsetting its economics. B. 
Represents 1/6 R.S.C. 
Leave it all to Tribunal to work it out on common law basis. P.M. 
Alternative:  Commn acts on some principles formulated in light of 
Ministerial directions:  Tribunal hears appeals. A.V.A. 
Prefer procedure on lines of 1921 Act. 
 
 
R.S.C., H.D., H.M. 


Agreed  
 P.M.  S.O.C. Cttee + {A.V.A. to consider 

                                                { Jowitt. 
 
4. 

## Winter Fuel Supplies For Industry.

 E.Sh. 
Cd. present alternative scheme:  for considn on Tuesday. H.M. 
Wd. you not consult R.S.C. E.Sh. 
No. 


[Exit J.W. & Barnes. 
 
5. 
Licensing of Civic Restaurants. H.M. 
These are family restaurants.  Licensing wd. alter character.  Wd. it be wiser 
to wait & see how they develop? J.S. 
Local option.  Make it possible.  Don't handicap their development as v. 
competitors. 
 
 
Memo. approved. 
 

## 1. Anglo. Egyptian Treaty

| H.McN.                                                         | Deleg                                                                |
|----------------------------------------------------------------|----------------------------------------------------------------------|
| n                                                              |                                                                      |
| informed:  broken up w'out decision:  atmosphere unfavourable. |                                                                      |
|                                                                | Sidky will now put it to C/Ministers & to Parlt. in 5 Session.       |
|                                                                | G. Genl. Sudan will return Thurs.  Sudan. Delegation to come to Ldn. |
|                                                                | Always thought Deleg                                                 |
| n                                                              |                                                                      |
| wd. be close thing.                                            |                                                                      |
|                                                                |                                                                      |
| 2.                                                             |                                                                      |

Spain 

 
Draft resolution proposed by E. B. (Tel. 1694) from N. York) read to 
Cabinet. 
 
H.McN. 
Discussed with Doms. & some W. Powers. 
 
More drastic resolutions will be put in by others.  But likely that ours will 
command majority support. T.W. 
What will be effect re fertilisers, steel, etc. H.McN. 
This resloln doesn't involve econ. sanctions.  Any resolution calling for 
sanctions wd. be advisory only. H.M. 
Cd. final para. be softened? 
 
 
General view - no. 
 
E.B.'s proposal approved. 
 
3. 

Indians in South Africa. 

 
A. 
Summarised telegram 1668. 
 
My view - S. African legn is not in conflict with human rights. 
 
Accept last para. 
 
 
{ Position noted. 


{ Delegation to be instructed - as on last sentence of telegr. 
 
4. 

Germany. 

 P.M. 
Arrangements in Germany.  Asked E.B. for views on Resident Minister. 
 
Mention because Cab. are disturbed. 


[Exit H.McN. & O.S. 
 
5. 

Parliament:  Debate on Address. 

 H.D. 
On official Cons. amendmt. H.M. 
I will follow mover:  will B/T or C/E follow? 

 
P.M. 
H.D. to speak to-day on Conscription.  R.S.C. shd. spk. on the other. 
 

|                                                                         |                                                                                 |               | Agreed.           |
|-------------------------------------------------------------------------|---------------------------------------------------------------------------------|---------------|-------------------|
|                                                                         |                                                                                 |               |                   |
| H.M.                                                                    | Want to tell Parlt. there will be genl. econ. debate: & a White Paper (tho'     |               |                   |
| may be argument on form of W. Paper).                                   |                                                                                 |               |                   |
|                                                                         |                                                                                 |               |                   |
|                                                                         |                                                                                 |               | Generally agreed. |
|                                                                         |                                                                                 |               |                   |
| P.M.                                                                    | F. Aff. Debate.  Won't help our pos                                             |               |                   |
| n                                                                       |                                                                                 |               |                   |
| vis-à-vis U.S.A.                                                        |                                                                                 |               |                   |
|                                                                         | Party discipline:  must be handled at Party mtg.                                |               |                   |
|                                                                         | But P.P.S.'s mustn't do this.  Three are in it.  They shd. resign, if they want |               |                   |
| to do this.                                                             |                                                                                 |               |                   |
|                                                                         |                                                                                 |               |                   |
| A.B.                                                                    | There are precedents -  e.g. in Liberal Govt.                                   |               |                   |
|                                                                         | Depends whr. it is steady course of action over period.                         |               |                   |
|                                                                         | Enough to warn them. v. continuance.                                            |               |                   |
|                                                                         |                                                                                 |               |                   |
| P.M.                                                                    | Public exp                                                                      |               |                   |
| n                                                                       |                                                                                 |               |                   |
| of "no confidence" in Govt. is inappropriate to a P.P.S.                |                                                                                 |               |                   |
|                                                                         |                                                                                 |               |                   |
| A.B.                                                                    | Resignation of 5 P.P.S.'s wd. do more harm.                                     |               |                   |
|                                                                         | Best to play this down.  Much feeling in Party over foreign policy -            |               |                   |
| inevitable there shd. be some exp                                       |                                                                                 |               |                   |
| n                                                                       |                                                                                 |               |                   |
| of this.                                                                |                                                                                 |               |                   |
|                                                                         |                                                                                 |               |                   |
| E.Sh.                                                                   | In Coalition, tho' I criticised, I never added my name to amendment of          |               |                   |
| Address because involves public exp                                     |                                                                                 |               |                   |
| n                                                                       |                                                                                 |               |                   |
| of "no confidence".  But can't be                                       |                                                                                 |               |                   |
| disguised that there is uneasiness in Party over f. policy.  Diff. for  |                                                                                 |               |                   |
| members to refrain fr. expressg. their opinions tho' it shdn't have bn. |                                                                                 |               |                   |
| done by amendmt. of Address.  Members, havg. first exp                  |                                                                                 |               |                   |
| d                                                                       |                                                                                 |               |                   |
| their view at                                                           |                                                                                 |               |                   |
| Party mtg., have right to express views in H/C.  There are limits to    |                                                                                 |               |                   |
| extent to wh. pressed.                                                  |                                                                                 |               |                   |
|                                                                         | P.P.S. - accept pos                                                             |               |                   |
| n                                                                       |                                                                                 |               |                   |
| to assist Minister.  Must he resign if he disagrees with                |                                                                                 |               |                   |
| Govt. on matter wh. isn't Departmental to his Minister?                 |                                                                                 |               |                   |
|                                                                         | This sort of thing always reflects deep feeling.                                |               |                   |
|                                                                         | I have twice raised matters wh. I thght. v. important - over to Cab.:  other to |               |                   |
| P.M. who decided not to bring it to Cab.  Am still dissatisfied on 2    |                                                                                 |               |                   |
| nd                                                                      |                                                                                 |               |                   |
|                                                                         |                                                                                 |               |                   |
| ques. (M/East policy).  The other (Germany):  I'm sure I was right, as  |                                                                                 |               |                   |
| events have proved.  But Cab. thought pl. shd. outweigh economics       |                                                                                 |               |                   |
| cons                                                                    |                                                                                 |               |                   |
| ns                                                                      |                                                                                 |               |                   |
| .                                                                       |                                                                                 |               |                   |
|                                                                         | Cab. not fully appraised of cond                                                |               |                   |
| ns                                                                      |                                                                                 |               |                   |
| of strategy wh. may dictate f. policy.  Not                             |                                                                                 |               |                   |
| easy for us to raise ques. of f. policy at Cabinet.  Not much chance.   |                                                                                 |               |                   |
|                                                                         |                                                                                 | No genl. disc |                   |
| n                                                                       |                                                                                 |               |                   |
| of f. policy as a whole.                                                |                                                                                 |               |                   |
|                                                                         |                                                                                 |               |                   |
| P.M.                                                                    | We can have a genl. talk re f. policy.                                          |               |                   |
|                                                                         | But P.P.S. issue is narrower.  Can have dissenting view:  but another matter    |               |                   |
| to support amendment to Address.  At least they shd. first ask their    |                                                                                 |               |                   |
| Minister.                                                               |                                                                                 |               |                   |
|                                                                         |                                                                                 |               |                   |
| H.M.                                                                    | P.P.S. - no doubt re gravity.  Quin:  sack them at once, or warn them "not      |               |                   |
| again".                                                                 |                                                                                 |               |                   |

 
Govt. are collectively respons. for f. policy. 
 
If this amendmt. carried Govt. wd. fall - is therefore vote of censure. 
 
Another point - what does E.B. think of the Ministers whose P.P.S.'s do 
this? 
 
 
May not assume they have discussed with their Ministers?  Liable to 
cause lack of confidence between Ministers. 
 
This conduct can't continue.  Exaggerates impn of fission.   Only ques. to 
sack w'out warning - or warn. 
 

| R.S.C.                                          | Agree with H.M.  Only ques is whr. they are given a 2   |
|-------------------------------------------------|---------------------------------------------------------|
| nd                                              |                                                         |
| chance.  On the                                 |                                                         |
| whole, favour warning (by Ministers concerned). |                                                         |
|                                                 |                                                         |
| T.W.                                            | Agree.                                                  |

 

A.G. 
Position can't be ignored.  K. speech debate is special case. 

 
Believe many acted in ignorance.  Prefer therefore warning. 
 
 
Generally agreed:  warn P.P.S.'s - can't occur again - but don't 

                              sack them. H.M. 
Debate on Closed Shop (Tuesday).  Will G.A.I. say what line he will take? 
 
 
Political mistake to seem to be encouraging a tyrannical T.U. attitude. 
 

| A.                            | T.U.C. have thrice declared against closed shop policy.                        |
|-------------------------------|--------------------------------------------------------------------------------|
|                               | Debate in H/Lds. last week.  I criticised "closed shop" tactics on other side. |
| e.g. light castings industry. |                                                                                |

 T.W. 
Problems in mining industry.  Are technicians to be forced into N.U.M. 
 

G.A.I. 
Oppn trying to attack refusal of T.U.'s to work with break-away Unions. 

 
What is meant by "Closed Shop" - used to be "closed to T.U.C." 
 
Answer must depend on what line criticism takes. 
 

| E.Sh.                                                                   | L.a.'s passing resol                                                 |
|-------------------------------------------------------------------------|----------------------------------------------------------------------|
| ns                                                                      |                                                                      |
| v. employing anyone not belonging to Union's capable                    |                                                                      |
| of affiliation to T.U.C.  What about teachers?  Issue will be raised in |                                                                      |
| debate.                                                                 |                                                                      |
|                                                                         |                                                                      |
| A.B.                                                                    | Avoid dif. statement on future policy - because many awkward ques.   |
|                                                                         |                                                                      |
| G.A.I.                                                                  | Will avoid l.a. ques.                                                |
|                                                                         | Govt. doesn't intend to dictate wh. Union a man shall belong to.     |
|                                                                         | Don't oppose workers workg. for 100% membership.                     |
|                                                                         |                                                                      |
| E.Sh.                                                                   | Be careful.  Snags.  Break-away Union; a no. of these wd. break T.U. |
| structure.                                                              |                                                                      |

 
C.M. 98(46).  

 
1. 
Indonesia:  Political Settlement. 
 
H.McN. 
Agreement reached in Batavia.  Not operative until endorsed by 
 
 
Govt. & prs. Parlt. 
 
 
Commrs. leavg. 22/11.  Hope signature by 2/12. 
 
 
Both sides complimentary to our good offices. P.M. 
Have sent message to Killearn.  Will also send to Inverchapel 
 
 
when its thro'. 
 
J.S. 
Want F.O. to tell me with whom to negotiate for food - want to  
 
 
jump in quickly. 
 
H.McN. 
Will inform M/F. 
 

## 2. Food:  Butter For Canada.

 A. 
As in memo.  Main issue for D.O. = reaction in Austr. & N.Z.  They 
 
 
have vol. rationed themselves for our sake - earlier trouble over  
 
 
diversion to U.S. Army.  But if we can square them, we hope 
 
 
M/F. will spare the butter for Canada.  We shd. have to consult 
 
 
the 3 High Commrs.  Can't do anything which wd. imperil our 
 
 
future supplies. P.M. 
Canada's 6oz.  No margarine? A. 
None. 
 
J.S. 
Our fat ration = 6. same as theirs.  But they have unlimited cooking  
 
 
fat, as cpd. with our 1 oz. 
 
Real danger = upsetting S. Doms.  And N.Z. also have an election on.
 
Doesn't in itself alter our rations:  only stocks.  But we are in no 
 
 
posn to make a flat refusal to Canada:  for they are supplying us  
 
so much with other foods.  They must get willing concurrence of 
 
Austr. & N.Z. but if they can get it I think we shd. give Canada 
 
what she wants in butter. E.Sh. 
Cdn't we get cooking fats fr. Canada as quid pro quo. 


[Enter J.B.H. & S.G. 
3. 
Socialisation of Ruhr Industries. P.M. 
3 points - as in brief. 

 

H.McN. 
Apologise that S.G. not consulted before printing. 

                       (a)  3 Stage Plan.  Buys time for consn of complex issues of ownership. 
 
 
Also plenty of time to work out adjustment to Stage C. 

 
S.G. 
Scheme shd. be satisf. qua law.  Custody won't involve trouble. 
 
 
Stage B. will involve practical rather than legal problems. 
 
 
Stage C.  How compel Land Govt. to pass this legisln - awkward 

 
 
to frame constitn so as to require this.  C-in-C. can control it, 
 
 
qua
 sovereign power, in Stages A. & B.  He will have to secure  
 
in B. effects for C. 
 

| R.S.C.                    | Custody plan gets over my immediate diff                           |
|---------------------------|--------------------------------------------------------------------|
| ies                       |                                                                    |
| .  Shall have to work out |                                                                    |
|                           | legal complexities before Stage B.                                 |
|                           |                                                                    |
| J.                        | No comment.  Cd. I be consulted on all these legal issues?         |
|                           |                                                                    |
| P.M.                      | Ld. Chanc. shd. be brought in;  on all such occasions.             |
|                           |                                                                    |
| E.Sh.                     | If control with C-in-C., only a limited power will rest in G. auth |
| y                         |                                                                    |
| .                         |                                                                    |
|                           |                                                                    |
|                           |                                                                    |

 

H.McN. 
Stage A:  no transfer of control.  Only political gesture - earnest of 
 
 
intentns. 
 
Also a first stage in a process declared as our policy. 

 

A.B. 
Importce of decln that industries aren't revertg. to private ownership. 

 

E.W. 
Who will see tht. custodians are type of people we want to encourage? 

 

H.McN. 
F.O. & Control Office, with P.M. approval. 

 

H.M. 
Someone shd. go over from here who can advise C-in-C. 

 

| P.M.       | C-in-C. will act on instruct                               |
|------------|------------------------------------------------------------|
| ns         |                                                            |
| of H.M.G.  |                                                            |
|            | German auth                                                |
| y          |                                                            |
| recommends | :  C-in-C. appoints.                                       |
|            | Must be settled by someone going out from here & settling. |

 

                    (b)  Responsibility:  to Land Govt. or central Govt. 
 
H.McN. 
E.B. prefers Land Govt.  i) security:  in our control. 
 
 
ii) de-centralisation.  iii) Fr. makg. diffies over Ruhr.  Their case 
 
will be considered lost if this comes under central Govt. 


J.B.H. 
Interfce with G. economy gone far enough.  These are assets of G. 
 
 
economy as whole.  Too much for Land Govt.  Also prejudges  
 
 
issue wtr. there shall be any central Govt. 
 
Prefer therefore corporns responsible to Cttee of 3 Lander Govt. in 
 
 
the Zone. 
|                                                           | Consult                                                          |
|-----------------------------------------------------------|------------------------------------------------------------------|
| n                                                         |                                                                  |
| with N. Rh. - W. Govt. won't mean bringing G. politics in |                                                                  |
|                                                           |                                                                  |
|                                                           |                                                                  |
| P.M.                                                      | Your arguments look to central Govt.  Why not one-party Govt. in |
|                                                           |                                                                  |

 

|        | J.B.H.                               | One-party Govt. in only a Land is objectionable, as one-party Govt. in    |
|--------|--------------------------------------|---------------------------------------------------------------------------|
|        |                                      | centre wd. not be.  Can't allow one-party Govt. in small area to          |
|        |                                      | control so important an asset.                                            |
|        |                                      |                                                                           |
| R.S.C. | Won't be a central Govt. in Stage B. |                                                                           |

 
Final transfer of ownership not until Stage C. 

|                           | Only ques. for Stage B = whom you consult on appt                   |
|---------------------------|---------------------------------------------------------------------|
| mt                        |                                                                     |
| of                        |                                                                     |
|                           |                                                                     |
|                           |                                                                     |
| J.B.H.                    | More diff. to get on to national basis if you begin with Land Govt. |
|                           |                                                                     |
| R.S.C.                    | Second thoughts:  para. 9 indicates leg                             |
| n                         |                                                                     |
| in Stage B.  Cd. such leg |                                                                     |
| n                         |                                                                     |
| be                        |                                                                     |
|                           |                                                                     |
| y                         |                                                                     |
| than Land Govt.           |                                                                     |

 P.M. 
Consistent with our policy of encouraging de-centralisation. 

 E.Sh. 
Socialisation, to be a success, can't be compartmental - must be of 

 
 
interest to all inhabitants of B. Zone.  Peace potential of these 
 
 
indies to whole of B. Zone.  Consider economic implicns, as well 

|                                |                                                                       | as political.    |
|--------------------------------|-----------------------------------------------------------------------|------------------|
|                                | You can get all control thro' C-in-C.  Consult therefore as widely as |                  |
|                                |                                                                       | possible.        |
|                                |                                                                       |                  |
| P.M.                           | But scheme contemplates corp                                          |                  |
| ns                             |                                                                       |                  |
| est                            |                                                                       |                  |
| d                              |                                                                       |                  |
| by law.  If no more than       |                                                                       |                  |
|                                |                                                                       | consult          |
| n                              |                                                                       |                  |
| you don't pass beyond Stage A. |                                                                       |                  |

 

| R.S.C.                            | Ques:  what legal basis for corp   |
|-----------------------------------|------------------------------------|
| ns                                |                                    |
| in Stage B.  Crux is:  how do you |                                    |
|                                   |                                    |
|                                   |                                    |
|                                   |                                    |

 H.M. 
Why bother overmuch about compensating these owners. 

 R.S.C. 
Must say who will be respons. for paying compensn if any. H.M. 
No:  why not confiscate? A. 
Sympathy with widening it up to whole Zone.  But no Govt. can  
 
 
answer for whole Zone.  Why not create Zone Govt. 
 
H.McN. 
Some G. authy will have to handle G. claims.  No Zonal authy cd. 
 
 
protect custodians fr. actions. P.L. 
Are the industries all in one Land? 

McN. 
We so designed this Land.  Confiscation raises big issues.  If you do  
 
 
it, you will be presentg. big gift to corpn - cui bono. J.B.H. 
Compn - for many things incldg. war damage - will be problem for a 
 
 
German Govt.  Doesn't arise on this. 
 
McN. 
Why no Zonal Govt?  Because purely artificial military boundary. J.B.H. 
Wd. also prejudge ques. of central Govt. P.M. 
All the arguments in favour of widening up to Zone apply to  
 
 
widening it up to all Germany. 
 
Real ques. is can Land Govt. give legal existce to corpns w'out 
 
 
tying them eventually to Land.  If so, Stage B. falls down.  You 
 
 
are back on Stage A & have to abandon idea of transferring any  
 
 
responsibility to a German authy. 
 
Conceptn of memo. was to make Corpn respons. to a G. authy.  If no 
 
 
authy other than Land Govt. it can't work.  Either Land Govt. or  
 
 
C-in-C.  Stage B. is impossible unless you accept Land Govt. J. 
Can we get further now than Stage A. 
 
 
Agreed:  Stage A:  appoint custodians, after consultn with repves

                     of all Lander Govt. 

                     Appointment of custodians - by someone  

                     going out from here chosen in consultn with 

                     P.M.  He shd. report back to Cabinet. P.M. 
Cab. view = Land Govt. is not big enough orgn to wh. to entrust the 
 
 
Ruhr industries. 


Agreed:  Foreign Observers doesn't arise. 

|                        |     |     |                Memo. on a Zonal Govt.    |
|------------------------|-----|-----|------------------------------------------|
|                        |     |     | [Exeunt  M                               |
| c                      |     |     |                                          |
| N.  O.S.  S.G.  J.D.H. |     |     |                                          |
|                        |     |     | [Enter   G.T.  Barnes.  Leonard.         |
|                        |     |     |                                          |

## 4. Winter Fuel Supplies For Industry.

 E.Sh. 
Anxious to avoid public statement re coal.  Will cause disquiet. 
 
Official plan wd. involve public announcement. 
 
Allocations based on requirements:  can't revise them w'out  
 
 
announcement:  can, however, vary deliveries v. unchanged 
 
 
allocations.  Can tell firm you will get only 80% etc., of 
 
 
allocation for x months:  that is continn of normal procedure. 
 
Prefer cut of 10% vice
 12½ % in official plan. 
 
Electricity & gas.  My plan goes further than official's.  The danger is 
 
 
greater here.  My plan doesn't appear as a cut.  How will it 
 
 
operate?  By check on meters. 
 
Expect to save more than official plan wd. have saved. R.S.C. 
History.  E.Sh. said cuts requd & suggd consultn on means.  I said 
 
 
do this thro' N.P.A.C.I.  We did this.  Industry (& I) are  
|                                                            |                                                                       | insistent tht. cuts be so made tht. industry can plan ahead over    |
|------------------------------------------------------------|-----------------------------------------------------------------------|---------------------------------------------------------------------|
|                                                            |                                                                       | winter.  Otherwise chaos.  Present system:  allocations on          |
|                                                            |                                                                       | screened requirements - desirable maximum.  Deliveries do run       |
|                                                            |                                                                       | below alloc                                                         |
| ns                                                         |                                                                       |                                                                     |
| - in Midlands 36% below.  E.Sh. wants cuts on              |                                                                       |                                                                     |
|                                                            |                                                                       | those deliveries, which are below alloc                             |
| ns                                                         |                                                                       |                                                                     |
| & uncertain.  Must have                                    |                                                                       |                                                                     |
|                                                            |                                                                       | a scheme wh. will tell industries what they will get.  Publicity is |
|                                                            |                                                                       | therefore necessary.  No pool for hard cases - unless you have      |
|                                                            |                                                                       | the 12 ½% cut of official plan.  That was valuable feature of       |
|                                                            |                                                                       | official plan.                                                      |
|                                                            |                                                                       | Officials' plan was sensible because of  i) publicity  ii) pool.    |
|                                                            | Gas & electricity.  Can't assume industry will be static as measured  |                                                                     |
|                                                            |                                                                       | by Nov.  Think of new firms startg. e.g. in developmt. areas:  on   |
|                                                            |                                                                       | rising prod                                                         |
| n                                                          |                                                                       |                                                                     |
| curve.  We don't think you can clamp down on basis         |                                                                       |                                                                     |
|                                                            |                                                                       | of Nov. figures.  Scheme adopted in war was to direct red           |
| n                                                          |                                                                       |                                                                     |
| below                                                      |                                                                       |                                                                     |
|                                                            |                                                                       | what they wd. have consumed.  Tried in W/England in war - got       |
|                                                            |                                                                       | 98% response.                                                       |
|                                                            |                                                                       | I prefer the official plan.                                         |
|                                                            | To get good-will of industry, we must in any event consult again with |                                                                     |
|                                                            |                                                                       | N.P.A.C.I. if we are to modify scheme discussed with them.          |
|                                                            |                                                                       |                                                                     |
| M/S.                                                       | We concur with R.S.C.                                                 |                                                                     |
|                                                            | Gas & electricity:  official plan.  Rest on consumer's estimate.  We  |                                                                     |
|                                                            |                                                                       | prefer then M/F. & P. scheme.  Save tht. we doubt if Nov. is best   |
|                                                            |                                                                       | criterion.  Suggest prov                                            |
| n                                                          |                                                                       |                                                                     |
| Dec. 45 - Mar. 46. etc., (not understood).                 |                                                                       |                                                                     |
|                                                            |                                                                       |                                                                     |
| Barnes.                                                    | No "breakdown" in transport, as stated in E. Sh. memo.                |                                                                     |
|                                                            |                                                                       |                                                                     |
| G.T.                                                       | Claim for total exemption of bldg. materials industries.              |                                                                     |
|                                                            | Progress in prod                                                      |                                                                     |
| n                                                          |                                                                       |                                                                     |
| is slow:  will be stopped by 5% fuel cut.                  |                                                                       |                                                                     |
|                                                            | Sugg                                                                  |                                                                     |
| n                                                          |                                                                       |                                                                     |
| tht. 5% cut can be met by fuel economy is true of most ind |                                                                       |                                                                     |
| ies                                                        |                                                                       |                                                                     |
| .                                                          |                                                                       |                                                                     |
|                                                            |                                                                       | Can be met by cutting space-heating.  But doesn't apply to most     |
|                                                            |                                                                       | bldg. materials ind                                                 |
| ies                                                        |                                                                       |                                                                     |
| .                                                          |                                                                       |                                                                     |
|                                                            | All round 5% cut wd. have opp. effect to that desired.  Wd. produce   |                                                                     |
|                                                            |                                                                       | 7 times the effect in some brick-works than in another.  Also       |
|                                                            |                                                                       | glass:  can't cut 10% for technical reasons.                        |
|                                                            |                                                                       |                                                                     |
| H.D.                                                       | Need for quick action.  Too many words.                               |                                                                     |
|                                                            | Impressed by R.S.C.  Offl. plan concerted with T.U.C. & F.B.I.  Cd.   |                                                                     |
|                                                            |                                                                       | be adopted w'out delay.  The other plan wd. have to be              |
|                                                            |                                                                       | negotiated with N.P.A.C.I. - further delay.                         |
|                                                            | Keep it as elastic as possible.  New factories coming into prod       |                                                                     |
| n                                                          |                                                                       |                                                                     |
| .                                                          |                                                                       |                                                                     |
|                                                            |                                                                       |                                                                     |
| R.S.C.                                                     | That is point of 12½%.                                                |                                                                     |
|                                                            | Flexibility in case it does create unemployment.                      |                                                                     |
|                                                            |                                                                       |                                                                     |
| G.A.I.                                                     | Preference anyhow for developmt. areas.  In other areas prod          |                                                                     |
| n                                                          |                                                                       |                                                                     |
| cd.                                                        |                                                                       |                                                                     |
|                                                            |                                                                       | be re-arranged.  Set-back in d. areas wd. be disastrous.            |
|                                                            |                                                                       |                                                                     |
| H.M.                                                       | There was consult                                                     |                                                                     |
| n                                                          |                                                                       |                                                                     |
| with industry.                                             |                                                                       |                                                                     |
|                                                            | Against this, see some advantages in E.Sh. alternative.               |                                                                     |
|                 | Can't put another scheme into effect w'out consult                    |
|-----------------|-----------------------------------------------------------------------|
| n               |                                                                       |
| with N.P.A.C.I. |                                                                       |
|                 | Period for 9. & electricity:  Dec. - March better criterion than Nov. |

 
Steel:  M/S. shd. aim at more pig iron & less scrap, to economise coal. 
 
Subject to these reservations, prefer E.Sh. scheme. 

 A.B. 
Gloom in M/W. about this cut.  If applied to bldg. industries, there 
 
 
must be public announcement.  Effect of curtailing expansn in 
 
 
those indies will be disastrous.  Whole housing p'mme wd. have 
 
 
to be re-adjusted.  167.000 t. of coal involved.  Wd. cause  
 
 
unemplt in light castings, built up with so much difficulty. 
 
Exemption for bldg. indies.  Lay the cut on luxury prodn. R.S.C. 
That reflects on everything.  E.g. cuts in clothing ration:  less 
 
 
consumer goods. 
 
Only hope is to spread as widely as possible so as to make the cut as 
 
 
little as poss. on each. T.W. 
Ag. machinery.  Firms just coming into prodn.  If they are to be cut 
 
 
12½%, disastrous for agric. & exports. P.M. 
Distinguish betwn. manuf. by coal & use of coal for heating. 

 E.Sh.               a) Let me discuss my plan with N.P.A.C.I. 
                        b) Provn for appeal to Fuel Offr. e.g. by bldg. indies.  Provides elasticity 
 
 
as Officials' plan doesn't. 

|                                           | History.  Fuel Effic. Conf   |
|-------------------------------------------|------------------------------|
| n                                         |                              |
| asked for 10% vol. saving.  P.M. asked me |                              |
|                                           |                              |
| ns                                        |                              |
| .                                         |                              |
|                                           |                              |

 
 
Accepted with greatest reluctance.  Have always said I doubted 

|               |                                                                     | apprehensions re winter coal:  want therefore flexible plan.    |
|---------------|---------------------------------------------------------------------|-----------------------------------------------------------------|
|               | El. & gas:  I can save more by my plan.                             |                                                                 |
|               |                                                                     |                                                                 |
| P.M.          | How long wd. a) take?  Must be quick.                               |                                                                 |
|               | R.S.C. seeks elasticity via 12½% and pool.  E.Sh. relies on greater |                                                                 |
|               |                                                                     | prod                                                            |
| n             |                                                                     |                                                                 |
| .             |                                                                     |                                                                 |
|               |                                                                     |                                                                 |
| E.Sh.         | Make a pool:  you invite demands on it.                             |                                                                 |
|               |                                                                     | Agreed:  as at a) & b) in E.Sh. above.                          |
|               |                                                                     |                                                                 |
| H.M.          | Coal Production Publicity.  All agreed.  But Ty. say Coal Bd. shd.  |                                                                 |
|               |                                                                     | pay.  And they can't pay yet.  Can't we start:  & let finance   |
|               |                                                                     | be settled later.                                               |
|               |                                                                     |                                                                 |
| H.D.          | Won't be diff. over small sum until Coal Bd. establ                 |                                                                 |
| d             |                                                                     |                                                                 |
| .  So long as |                                                                     |                                                                 |
|               |                                                                     | understood Coal Bd. pays when establ                            |
| d             |                                                                     |                                                                 |
| .             |                                                                     |                                                                 |
|               |                                                                     |                                                                 |
|               |                                                                     |                                                                 |
|               |                                                                     |                                                                 |
|               |                                                                     |                                                                 |
|               |                                                                     |                                                                 |

5. 
Indian Services.  Compensation to Officers. 
 
 
Agreed - as in memo. 
1. 
Parliament. 

 H.M. 
Business for the week. 
 
Analysis of voting in F. Aff. debate. 

                                        [Exit. W.W.   Enter. Barnes, Bellenger. 
 

2. 
Admission of Poles to Civil Employment. 

 G.A.I. 
Object:  
canalise approaches to Unions. 
 
Rlways:  informed by Barnes to-day that he agrees to my handling it. 
 
Mines:  
reason - other indies reluctant because mines won't have 


them:  useful to say we are in negotiation. 
 
Agriculture:  not opposed in principle.  They say a) why us only 


b) employers' use of p.o.w. labour. 
 
Will negotiate thro' conciliation Dpt. of M/.Labour.  Only where 
 
 
Dpts. have failed. A.G. 
Supported. 
 
Has bn. sticking:  workg. better now:  this wd. improve matters. H.D. 
Supported.  Was consulted.  Glad to hear how well it's going. E.Sh. 
No objn. T.W. 
Hope M/L. will see agric. workers separately from employers. 

                                                 [Exit  Barnes & Bellinger. 
 
3. 
Palestine.

 

 C.J. 
Zionist Congress Bash December:  won't finish before Xmas:  new 
 
 
Executive & new mandate.  Until then, Executive can't spk. for  
 
their constituents. 
 
Genl. disposn for J. to creep in to Confce.  No guarantee, but probable - 
 
 
so long as no unfortunate incident in Pal. 
 
Most Arab Deleg. in N. York.  Convenient if 16/12 date cd. be put 
 
 
back. 
 
Pity situatn in Pal. deteriorates. 
 
E.B. wants initiative for p'ponement to come fr. Arabs. P.M. 
No inconvenience save to Pal. adminn - incldg. B. troops.  A big 
 
 
proviso! 
 
 
But wisest course is to accept p'ponement. 


Agreed. 
 
4. 
Use of Veto in Security Council. P.M. 
Summarised telegrams. 
 
McN. 
Resoln fr. Cuba - special confce to discuss veto.  Shd. have to vote v. 
 
that. 
 
Request fr. Australia - might get round that. R.S.C. 
Leave E.B. with greatest poss. latitude. P.M. 
Impression of easing up by MOI. 
 
 
Approve line taken by E.B. with latitude in negotiation. 

                                                  [Enter.  J.B.H.  Listowel. 

5. 
Gift Food Parcels for Overseas. 

 
J.S. 
Recommend this because we can give no really effective supplies of  
 
 
food from Govt. sources! 
 
Political feeling strongly in favour. J.B.H. 
Supported.  We allow parcels from U.S. into B. Zone. 
 
Don't wish it limited to parcels for named individuals.  Wdn't get to 
 
 
most deserving cases.  Effect wd. be better if distribn handled in 
 
 
G. thro' Save Europe Now Fund. L. 
Para. 6.  P.O. can't enforce these condns.  Is it proposed tht. M/F.  
 
 
offices shd. do it? J.S. 
Will consult on this. R.S.C. 
No one but M/F. cd. police this. L. 
Para. 9.  I cd
 have this done before Xmas if Cab. so desire. 
 
P.M. 
On principle I have opposed because giving U.S. impn we had plenty 
 
 
food:  clear now that U.S. know our posn. 
 
 
because pressure on weak-minded B. people.  Now w'draw that objn. R.S.C. 
Allow soap.  Tho' not a rationed food.              Agreed. 
 
McN. 
In Press accouncemt. make it clear that it's for all Europe. H.D. 
Supported this. J.S. 
This is understood:  it's all overseas parcels. P.L. 
On personal or impersonal - can it be both? J.S. 
Want some discretion to settle details in inter-Departmental  
 
 
discussion. 


Agreed - early statement. 
 

 
6. 
Germany. P.M. 
Read telegram re pooling of food supplies with U.S. Zone. 
 
Assurance of food supplies if we can settle fusion of Zones. 

 J.S. 
And Clay authd to pool 50.000 t. at once, of supplies already there. 

## 1. Civil Service Staffs.

 P.M. 

Announced Cttee. 

## 2. Germany:  Fusion Of British & U.S. Zones.

 H.D. 
As fr. brief.  Trouble is tht. bulk of the £125 m. wd. have to come fr. 
 
dollar sources. 

|     |     | It equals $500 millions over 3 years = 5 months' drawing of     |
|-----|-----|-----------------------------------------------------------------|

 
 
U.S. loan. 
 
U.S. offer to swop Zones and go to 65:35.  Agree with E.B. this is 
 
 
politically impossible & dangerous economically.  Reject 
 
 
that, as well as paras. 3-5 of brief. 
 
Conclude:  no alternative but to accept 50:50.  But conditions. 
 
 
a) Keep down dollar cost to us to 300 millions.  By buying as 
 
 
much as poss. from soft currency countries.  Not much scope 
 
 
for this in near future:  but shd. open up in 2nd & 3rd years of 
 
 
period - e.g. food from E. Europe in return for G. exports wh. 
 
 
flow more naturally in that direction. 
 
Stopped at end of para. 9 of  brief. 
 
Discussed with Waley, hot from U.S.  This is my recommn:  as in 
 
 
para. 10. 
 
P.M.            | This won't affect our policy re Ruhr industries? 
                    | 
H.D.          x| Presume E.B. has made that clear, in conversns with U.S. 
                    | 
J.B.H.          | 50:50 basis gives us better moral ground for m'taining that policy. 
 P.M. 

This is right.  U.S. have whip-hand because they have the food:  we 
 
 
can't get it fr. anywhere else. 

 

| H.D.                                                | Not in 1947.                                                   |
|-----------------------------------------------------|----------------------------------------------------------------|
|                                                     |                                                                |
| J.                                                  | What return on this investment and when?  E.g. timber.         |
|                                                     |                                                                |
| H.D.                                                | Timber turns on physical resources, not financial.             |
|                                                     |                                                                |
| A.                                                  | U.S. Loan was for our needs.  This is additional.  Cd. this be |
|                                                     |                                                                |
|                                                     |                                                                |
| H.D.                                                | Non-starter in U.S. politically, since Election.               |
|                                                     |                                                                |
| J.S.                                                | Additional cond                                                |
| n                                                   |                                                                |
| tht. on fusion procurement of food for 2 Zones shd. |                                                                |
|                                                     |                                                                |
|                                                     |                                                                |
| H.D.                                                   | Agree:  this shd. be added.                                            |
|--------------------------------------------------------|------------------------------------------------------------------------|
|                                                        |                                                                        |
| J.B.H.                                                 | For how long:  for we want to switch supply of food to easy-currency   |
|                                                        |                                                                        |
|                                                        |                                                                        |
| H.D.                                                   | Relate wording to "such procurement as may be requ                     |
| d                                                      |                                                                        |
| fr. U.S.                                               |                                                                        |
|                                                        |                                                                        |
|                                                        |                                                                        |
| M                                                      |                                                                        |
| c                                                      |                                                                        |
| N.                                                     | We agree H.D.'s qualifications.                                        |
|                                                        | On x/ above, quoted telegram showing E.B. had J.B.H. point in mind.    |
|                                                        | Welcome review after 12 months.                                        |
|                                                        |                                                                        |
| H.M.                                                   | U.S. "political diff                                                   |
| ies                                                    |                                                                        |
| ".  What about ours?  And U.S. have no                 |                                                                        |
|                                                        |                                                                        |
| y                                                      |                                                                        |
| , as we have, in supplying the Zones.                  |                                                                        |
|                                                        | May be right, however, tht. Congress won't go beyond 50:50.            |
|                                                        |                                                                        |
|                                                        | But cond                                                               |
| ns                                                     |                                                                        |
| of our agreement shd. be clear.  a) food supply (as in |                                                                        |
|                                                        |                                                                        |
|                                                        |                                                                        |
|                                                        |                                                                        |
|                                                        |                                                                        |
| n                                                      |                                                                        |
| loan to be repaid by G. goods &                        |                                                                        |
|                                                        |                                                                        |
|                                                        |                                                                        |
| R.S.C.                                                 | If these cond                                                          |
| ns                                                     |                                                                        |
| aren't accepted, what do we do?  That shd. be made     |                                                                        |
|                                                        |                                                                        |
|                                                        |                                                                        |
| P.M.                                                   | Agreed.  Give E.B. our stipulations:  ask E.B. how many he can get:    |
|                                                        |                                                                        |
|                                                        |                                                                        |
| E.Sh.                                                  | What is meant by fusion?                                               |
|                                                        |                                                                        |
| M                                                      |                                                                        |
| c                                                      |                                                                        |
| N.                                                     | External matters - procurement, export-import p'mme - wd. be           |
|                                                        |                                                                        |
| n                                                      |                                                                        |
| of each                                                |                                                                        |
|                                                        |                                                                        |
|                                                        |                                                                        |
| E.Sh.                                                  | This wd. give U.S. a say in cost of admin                              |
| n                                                      |                                                                        |
| .  If so, how prevent their                            |                                                                        |
|                                                        |                                                                        |
|                                                        | I regard this as further U.S. blackmail.  We shd. look further ahead.  |
|                                                        |                                                                        |
|                                                        |                                                                        |
|                                                        |                                                                        |
| n                                                      |                                                                        |
| will improve.                                          |                                                                        |
|                                                        |                                                                        |
|                                                        | To extent tht. G. exports are increased, our expenditure on imports is |
|                                                        |                                                                        |
|                                                        |                                                                        |
| H.D.                                                   | My estimates are of net                                                |
| costs & assume some increase in G. exports.            |                                                                        |
|                                                        | This also is why we are assuming subsidy will continue only for        |
|                                                        |                                                                        |
|                                                        | All the offsets have bn. taken into a/c.                               |
|                                                        |                                                                        |
E.Sh. 
I wd. prefer to pursue isolationist policy & take a chance on it. 

 

R.S.C. 
Tapering off cost on fusion policy - thro' rehabilitation of G. industry. 

 

|    | P.M.    | What will happen in G. while we are taking a chance?  Where will     |
|----|---------|----------------------------------------------------------------------|
|    |         | supplies come from.                                                  |

 

| E.Sh.    | Food will be better in 12 months.    |
|----------|--------------------------------------|
|          |                                      |
| P.M.     | What happens m'while?                |

 

E.Sh. 
What assurance of U.S. food under this scheme? 

 

| H.D.    | Remember that we are now paying 53:47.                             |
|---------|--------------------------------------------------------------------|
|         |                                                                    |
| E.W.    | Does fusion mean joint economic admin                              |
| n       |                                                                    |
| .       |                                                                    |
|         |                                                                    |
| H.D.    | Fusion is to be a gradual affair - beginning with export-import    |
|         |                                                                    |
|         |                                                                    |
| n       |                                                                    |
| .       |                                                                    |
|         |                                                                    |
| P.M.    | This plan is alternative to 4 Power working for single economic G. |

 

McN. 
No thought h'to (in conversns with U.S.)  of anything but external 
 
 
affairs. J.B.H. 
Bi-zonal Boards, in Germany, on executive business only  [Enter A.B. 
 
 
of ports, telegraphs etc. 
 
McN. 
Re interference with Ruhr:  this illustrated by Byrnes offering a  
 
 
higher price on a swop of Zones:  was prepared to pay more 
 
 
to get control of Ruhr. H.D. 
Tel. 1886.  Para. 2. is the relevant passage. 
 
Makes it clear that U.S. realise tht., if they don't swop, they can't 
 
 
get control over industrial policy in B. Zone. 


Agreed:  inform E.B. - report back if he can't get  

              agreement to all our conditions. 


[Exit J.B.H. 

 
3. 
India.  Constituent Assembly. 

 P.M. 
Put the short issue. P.L. 
The main diffy. between Parties = procedure for constituent assembly. 
 
 
Explained the views on this of the 2 Parties & attitude of H.M.G. 
 
 
Moslems:   majority vote in each section. 
 
 
Congress:   decide Province by Province. 
 
Tho' it may seem a technical point, its consequences are v. important. 
 
Viceroy agrees that repves shd. be invited to London. 
|                     | Want time to consider his draft statement.                         |
|---------------------|--------------------------------------------------------------------|
|                     | Situation v. grave.                                                |
|                     |                                                                    |
| R.S.C.              | Agree this is only chance.  We must take it, as only means of      |
|                     |                                                                    |
|                     | Time is v. short.  Must so arrange tht. they cd. get back by 9/12, |
|                     |                                                                    |
| here to p'ponement. |                                                                    |
|                     |                                                                    |
| P.L.                | Can Assembly meet on 9/12.                                         |
|                     |                                                                    |
| P.M.                | Say nothing at this stage to suggest p'ponement.                   |
|                     |                                                                    |
| A.                  | Some ground to think a) they'll come                               |
|                     |                                                                    |
|                     |                                                                    |
|                     |                                                                    |
| P.M.                | Must we ask Sikh.  Won't it lead to others?                        |
|                     |                                                                    |
| R.S.C.              | Cd. discriminate.  Prefer to ask a Sikh.                           |
|                     |                                                                    |

 

## 4. Labour Party Meeting.

 P.M. 
Cab. Ministers to attend Party mtg. on Thursday at 10.a.m. 

## 5. Fuel Supplies For Industry.

 E.Sh. 
Have met N.P.A.C.I.  Considered ques. of announcement.  Will send 
 
 
notice to all firms consuming more than 100.000 t.p.a.  Also 
 
 
agreed on gas & electricity method. 
 
Need for haste:  may I settle with B/T. vice reporting back to Cabinet. P.M. 
We were to consider in light of report. R.S.C. 
Have had no report on this. P.M. 
Must be mtg. of Ministers concerned.  In default of agreement 
 
 
report to Cab. on Thursday. 

## 1.     Parliament

H.M.               a) Business for the week. b) Ministerial statements after Questions. R.S.C. 
Does this apply to long answers to P.Q.'s, given at end? H.M. 
Yes - in lesser degree. P.M. 
Also use device of circulatg. in Offl. Rpt. 
 
H.M. 
Answerg. P.Q.'s not reached, at end. H.D. 
Statements shd. be shorter, too. P.M. 
I will circulate a memo.                    Agreed. J.S. 
I must make warng. statement on food next week. 

      [Exit  W.W. 

 
2. 
Palestine. 

 P.M. 
Put issue as in telegram & draft reply. 
 
Movement twds. Partition as only practical solution.  But fatal to 
 
 
commit ourselves before Confce. A.B. 
Does para. 3 assume no initiative from us? P.M. 
No.  We realise we may have to impose a solution.  But needn't say so  
 
 
now. H.D. 
Internatl. Cttee of L. Party Exec. last week:  strongly urged somethg. 
 
 
shd. be said to secure satisf. issue at Zionist Congress.  If we cd. 
 
 
indicate we were ready to consider Partition, it wd. help to get 
 
 
good result at Congress. R.S.C. 
This is Silver's point over again. C.J. 
Fatal if Govt. were commd at all at this stage. 
 
Good will increased on J. side by various means.  Shd. do no more. E.Sh. 
Secrecy cdn't be m'tained if we indicated our views. 
 
My Dpt. v. anxious re oil posn - affected by any soln of Pal. problem. 
 
 
Important not to offend Arabs:  wd. make our oil posn precarious.
 
Partition as a solution must be allowed to emerge from Conference. P.M. 
Also, on Partition, mandate wd. have to come up to U.N.O. C.J. 
Only requests made to C.O. for action to ease Congress are  
 
 
a) camps in Pal. for illegal immigrants  b) transfer of G. land 
 
 
to Jews. 


Draft Telegram approved. 


[Enter  Barnes. 
 

## 3. Shipping:  Inter-Governmental Organisation.

 B. 
As in memo. 
 
McN. 
We want latitude on text.  Agree in principle. 
 
G.A.I.           x/ Cab. views on dupln of internatl agencies. 
 
Overlap with I.L.O.  Para. 5., for example. 
 
Want M/L. brght in on any interdepl discn of revised draft. E.Sh. 
Endorsed x/. 
 
Substance.  Competn of U.S. merchant navy.  Much more expensive  
 
than B.  Under internatl agency U.S. will force us to raise our 
 
 
wage standards unnecessarily - & reduce our competitive power.
 
Para. 5 on discrimination is bunkum.  Can't avoid it. 
 
Indian views.  They will use Lascars at low pay & compete. 
 
Need to ensure B. shipping isn't hamstrung.  No future for it if we tie 
 
ourselves up in internatl obligns. A. 
Supported. 
 
Diffies in Trade talks with Doms. over use of "discrimination". 
 
Take care we're not hamstrung. 
 
Favours given by N.Z. are discrimination. 
 
R.S.C. 
Won't stop discrimination by having no internatl body to discuss it. 
 
Much more hamstrung if we don't try to get these practices stopped. 
 
This body won't deal with wages. A.B.              y/ Any attempt made to weight B. wages to take a/c of our social 
 
 
services? R.S.C. 
Also subsidies which are in relief of wages. P.M. 
Do I.L.O. consider such points? G.A.I. 
Not hitherto. H.M. 
Siting of organn.  Avoid any commitment to U.S. site. B. 
These points shd. have bn. raised when Cab. discussed earlier mema. 

 
But misunderstandg.  This is devised to avoid complicated machinery 
 
under Ec. & Social Council, & to get it preserved to maritime 
 
nations. 
 
 
Prefer agency under influence of important maritime nations. 
 
U.K. didn't promote this.  But subjects bound to come w'in ambit 
 
 
of U.N.  If so, this is best type of machinery:  & will suit U.K. 
 
M/L. points.  These are techn. ques's. for shipping conferences. 
 
E.Sh.   ..        This is not likely to harm U.K. interests.  We stand to 

|     |     | gain fr. abolition of restrictive & discriminatory practices.  We    |
|-----|-----|----------------------------------------------------------------------|

 
 
got Indian request rejected - for freedom to make discrimination. 

 P.M. 
Departmental objns cd. have bn. cleared on I.O.C. 
 
H.M. 
Want it considered wtr. this cd. be better done thro' Ec. & Soc. 
 
 
Council. R.S.C. 
Don't want this done by all nations.  Better to get it reserved to  
 
 
maritime nations. H.D. 
Wdn't U.N. machine be less expensive in staff? B. 
No.  This wd. only meet when it had to.  More flexible. P.M. 
cf.  Postal Union:  most economical. H.D. 
Make it condn tht. it has no office or full-time staff. 
 
McN. 
Convention does contemplate (Art. 12) Secretariat & Site. 
 
 
1. 
Approve in principle 
 
 
2. 
I.O.C. to consider relations with other agencies, staff etc. A.B. 
Want enquiry into y/. P.M. 
Take it up with M/Labour. 
 
 
3. 
No committal on text of Convention. 

 
 
4. 
Report back on 2. 

## Germany.  Financing Of British And U.S. Zones.

 A.B. 
Spoken to E.B. on telephone:  convinced he can get no more out 
 
 
of U.S:  wants Cab. decision by 1.p.m. New York time. 
 
 
Announcement in H/C. Tuesday - I can't give it because  
 
 
Indian talks. H.D. 
V. unsatisf.  As usual, pushed back by U.S. on Congress argument. 
 
 
Some concessions made:  particularly on Joint Agency working. 
 
 
Para. 8 of agreement (para. at end of p.8) goes some way to 
 
 
meet us. 
 
List on p.1 of C.P.438.  Para. (v) not sufficiently met. 

                   Para. (vii) rejected:  I attach importance to this. 
 
 
Para. 12 - review - is worthless. 
 
Concln:  unsatisf:  may be best we can get:  must leave discretion to  
 
 
E.B.:  but we must go on record - ? in personal lr. to Byrnes -  
 
 
makg. it clear tht. our ability to honour this depends on our dollar 
 
 
posn:  diffies of that explained:  and if we get into real trouble over 
 
 
dollars we may have to come out of this agreement. R.S.C. 
Unfortunate we can't get our reservations.  But alternative of going on 
 
 
alone will land us in worse diffies.  If Agency does its work well, 
 
 
may save much of the 500 m. expendre in dollars. A.V.A. 
E.B. has done well.  "Congress" argument is v. troublesome. 
 
Readiness to exchange Zones shows how dangerous U.S. posn was. 
 
Agree we shd. go on record. 
 
R.S.C. 
But not for publn to Congress. A.B. 
Who will run Ruhr industries - 2 C's-in-C:  Germans:  or who? 
 
E.B. says expedite socialisation. But joint econ. adminn as from 1.1.47.      
 
 
Can't U.S. then stop socialisation - unless more comes fr. 
 
 
Germans, which it can't. R.S.C. 
Nothg. in document which alters control in either Zone.  The joint 
 
 
economic machinery is only for pooling economic resources & 
 
 
supply. A.B. 
Is there nothing in this wh. will prevent us fr. going on with  
 
 
socialisation. 
 
If nothing, then add a note declaring our intentn of going on with it. 
 
Otherwise, nothing but misunderstanding or friction. E.Sh. 
Asked to decide fate of Europe by 1.p.m. 
 
Fusion of 2 Zones means tht. each Govt. will have some right, at some 
 
 
stage, to comment on adminn of other's Zone. 
|                                                 |                                                                        | Our policy was:  econ. integration of all G.  This, to some extent,     |
|-------------------------------------------------|------------------------------------------------------------------------|-------------------------------------------------------------------------|
|                                                 |                                                                        | closes the door to that.  The door is still open now.  This slams       |
|                                                 |                                                                        | it in R. face.                                                          |
|                                                 |                                                                        |                                                                         |
| A.V.A.                                          | Faces R. with fait accompli.                                           |                                                                         |
|                                                 |                                                                        |                                                                         |
| M                                               |                                                                        |                                                                         |
| c                                               |                                                                        |                                                                         |
| N.                                              | What about the preamble to the Agreement?                              |                                                                         |
|                                                 |                                                                        |                                                                         |
| E.Sh.                                           | Some of us objected to Loan because diff                               |                                                                         |
| ies                                             |                                                                        |                                                                         |
| :  told no alternative.                         |                                                                        |                                                                         |
|                                                 | Same again here.                                                       |                                                                         |
|                                                 | In the end we shall be completely under U.S. economic domination.      |                                                                         |
|                                                 | Acute problem = food.  That is costing dollars.  Don't believe that is |                                                                         |
|                                                 |                                                                        | more than short-term diff                                               |
| y                                               |                                                                        |                                                                         |
| :  prs. only 6 months.                          |                                                                        |                                                                         |
|                                                 | U.S. sooner or later must sell.  May have to cut prices.  Will then be |                                                                         |
|                                                 |                                                                        | able to get more food out of U.S.  U.S. must find markets.              |
|                                                 |                                                                        |                                                                         |
| P.M.                                            | How survive next 6 months?                                             |                                                                         |
|                                                 |                                                                        |                                                                         |
| E.Sh.                                           | We've done so up to now.  Is it sugg                                   |                                                                         |
| d                                               |                                                                        |                                                                         |
| tht. if we reject this U.S. will                |                                                                        |                                                                         |
|                                                 |                                                                        | cut off supplies?                                                       |
|                                                 |                                                                        |                                                                         |
| P.M.                                            | They mayn't say so:  they wd. do it.                                   |                                                                         |
|                                                 |                                                                        |                                                                         |
| E.Sh.                                           | Re-actions in H/C.  Will our supporters take this?                     |                                                                         |
|                                                 | If U.S. finance & German organ                                         |                                                                         |
| n                                               |                                                                        |                                                                         |
| gets going, formidable compet                   |                                                                        |                                                                         |
| n                                               |                                                                        |                                                                         |
|                                                 |                                                                        | to B. exports in a few yrs.  Better run our own show.                   |
|                                                 |                                                                        |                                                                         |
| A.                                              | Ruhr.  We can provoke move fr. G side.                                 |                                                                         |
|                                                 | Annual review.  Can't we have prov                                     |                                                                         |
| n                                               |                                                                        |                                                                         |
| to terminate after notice of                    |                                                                        |                                                                         |
|                                                 |                                                                        | x months if our dollar pos                                              |
| n                                               |                                                                        |                                                                         |
| becomes too severe?                             |                                                                        |                                                                         |
|                                                 | Don't agree with E.Sh.  Fusion shd. make it easier to reach agreemt.   |                                                                         |
|                                                 |                                                                        | with R. about G. being treated as a whole.  Shd. strengthen our         |
|                                                 |                                                                        | bargaining pos                                                          |
| n                                               |                                                                        |                                                                         |
| .                                               |                                                                        |                                                                         |
|                                                 |                                                                        |                                                                         |
| P.M.                                            | We are criticised re pos                                               |                                                                         |
| n                                               |                                                                        |                                                                         |
| in G.  Our defence:  bound by quadrip.          |                                                                        |                                                                         |
|                                                 |                                                                        | agreemt:  as can't get it treated as whole, have chosen 2               |
| nd                                              |                                                                        |                                                                         |
| altern.                                         |                                                                        |                                                                         |
|                                                 |                                                                        | of fusion with U.S. Zone.                                               |
|                                                 | What alternatives now.  Exchange & w'drawal are imposs.  Remains:      |                                                                         |
|                                                 |                                                                        | carry on alone.  Must consider immediate winter:  not 6 mos.            |
|                                                 |                                                                        | ahead.  Wd. like to go on alone, but haven't the resources.             |
|                                                 |                                                                        |                                                                         |
| J.B.H.                                          | Agree with E.Sh. on long-term.  But immed., we have no food after      |                                                                         |
|                                                 |                                                                        | end of Dec.  Rej                                                        |
| n                                               |                                                                        |                                                                         |
| of this plan wd. make U.S. v. reluctant to give |                                                                        |                                                                         |
|                                                 |                                                                        | us supplies.                                                            |
|                                                 |                                                                        |                                                                         |
| J.                                              | V. obscure draft. - particularly para. 12.                             |                                                                         |
|                                                 | But right to w'draw implied in para.12 of agreement.                   |                                                                         |
|                                                 |                                                                        |                                                                         |
| A.B.                                            | Partnership with U.S. means domination by U.S.  Because they have      |                                                                         |
|                                                 |                                                                        | the resources & we haven't.                                             |
|                                            | We shall have estranged E. Europe thereby.                                |
|--------------------------------------------|---------------------------------------------------------------------------|
|                                            | Alternative:  tell U.S. we sign on basis tht. it imposes no oblig         |
| ns                                         |                                                                           |
| on us                                      |                                                                           |
|                                            |                                                                           |
|                                            |                                                                           |
|                                            |                                                                           |
| n                                          |                                                                           |
| of this.                                   |                                                                           |
|                                            | Stop this U.S. blackmail.                                                 |
|                                            |                                                                           |
| P.M.                                       | We are in moneylenders' hands.  Face that.                                |
|                                            | Folly to suggest tht. we don't want U.S. collaboration in reconst         |
| n                                          |                                                                           |
| of                                         |                                                                           |
|                                            |                                                                           |
|                                            | State:  internal admin                                                    |
| n                                          |                                                                           |
| of industry in each Zone will remain under |                                                                           |
|                                            |                                                                           |
|                                            |                                                                           |
| M                                          |                                                                           |
| c                                          |                                                                           |
| N.                                         | My advisers confirm tht. this gives no power of veto to U.S. Govt. on     |
|                                            |                                                                           |
| n                                          |                                                                           |
| of B. Zone.                                |                                                                           |
|                                            |                                                                           |
| A.B.                                       | Pressed for statement to U.S. re                                          |
| Ruhr.                                      |                                                                           |
|                                            |                                                                           |
| P.M.                                       | Say to E.B.  Ques. in H/C.  We will reply:  a) we remain free to          |
|                                            |                                                                           |
|                                            |                                                                           |
|                                            |                                                                           |
|                                            |                                                                           |
| J.                                         | Suggested a formula.                                                      |
|                                            |                                                                           |
| R.S.C.                                     | Don't limit it to dollar resources.  The agreemt. must be ended if Fr. or |
|                                            |                                                                           |
|                                            |                                                                           |
| M                                          |                                                                           |
| c                                          |                                                                           |
| N.                                         | Cuts both ways.  Remember E.B's argument about U.S. revision of           |
|                                            |                                                                           |
|                                            |                                                                           |
| H.D.                                       | Yes:  para. 7 of 2150.                                                    |
|                                            |                                                                           |
| P.M.                                       | But it we are going to be better off in 12 mos. that doesn't apply.       |
|                                            |                                                                           |
| J.S.                                       | On food, seller's market may have ended in 12 mos.  Shd. have no          |
|                                            |                                                                           |
|                                            |                                                                           |
| H.D.                                       | Shd. still have to pay for it.                                            |
|                                            |                                                                           |
| H.M.                                       | Pros. and cons.  From brief.                                              |
|                                            | Ruhr:  let E.B. send a letter to Byrnes, both on this & on duration       |
|                                            |                                                                           |
|                                            | If this costs us more, we shd. say so in advance.                         |
|                                            |                                                                           |
| P.M.                                       | Propose letter to Byrnes saying what we shall say in H/C. on Ruhr &       |
|                                            |                                                                           |
|                                            |                                                                           |
| R.S.C.                                     | Put it to Byrnes in writing as notice of what we shall say.               |
|                                            |                                                                           |
|      | H.D.                                           | These are our views:  say so:  may or may not be raised in H/C.  Must     |
|------|------------------------------------------------|---------------------------------------------------------------------------|
|      |                                                | be able to say that we have told U.S.                                     |
|      |                                                |                                                                           |
|      |                                                |                                                                           |
|      |                                                |                                                                           |
|      | Announcement.                                  |                                                                           |
|      |                                                |                                                                           |
| P.M. | To be made after Ques. on 3/12.                |                                                                           |
|      | I can't do it because of Indian conversations. |                                                                           |
|      | Invite H.D. to do it.                          |                                                                           |
|      |                                                |                                                                           |
| H.D. | Only on basis of E.B.'s absence.               |                                                                           |
|      | No continuing commitment on me.                |                                                                           |
|      | Circulate Agreement as White Paper.            |                                                                           |
|      |                                                |                                                                           |
| A.   | Simultaneous announcemt. in H/Lds.             |                                                                           |
C.M. 103(46).  
 
 
5th December, 1946. 
1. 
Parliament. 
[Enter  W.W. H.M. 
Business for the week. H.M. 
Ministerial statements.  Bias against makg. them in "commercial" 
 
 
cases. E.Sh. released his coal for industry statement thro' Press. 
 
 
cdn't this Food statement go thro' Press, too? J.S. 
Agree in genl.  But this isn't a "commercial" statement - v. gt. public 
 
 
and Parly. interest.  Willing to p'pone until next week, if  
 
 
desired:  but want to make it in H/C. P.M. 
There is a case for doing this in H/C.         Agreed:  Do it to-day. 


Agreed:   Food Statement to be made. 

## 2. Burma.

 P.L. 
Delegn invited to come here.  Govr. says it wd. be welcomed. 
 
Propose statement in Parlt. to this effect.      Monday. 


Agreed. 
 

3. 
Agriculture Bill. 

 T.W. 
Discussed with repves of interested parties. 
 
Some oppn to powers of acquisn & terminn of tenancies.  This = policy. 
 
Co-Councils Assocn not v. pleased over small-holders' provisions. 
 
Consultn with Unions - 24:2 in favour of Bill. 
 
Thus, broad agreement with principles of Bill - tho' room for  
 
 
controversy on some points. 
 
Cl. 86 - para. 8(vii) of memo. - re power to sell land.  Will be used 
 
 
only in exceptional circs.  Will make small amendmt. to bring  
 
 
in reference to "national interest" to meet criticism by Addison. P.M. 
Small-holdings.  Uneconomic.  Shan't have to base prices on making 
 
 
them pay? T.W. 
I'm not in favour of it.  But some provn needed to meet demand for it. 
 
 
Minimum concession to strong feeling. 
 
 
We are increasg. maximum size. H.M. 
Composn of Co. Exec. Cttees.  Agree v. small vote against plan.  But 
 
 
Gooch spoke to me.  Need propns be stipulated in Bill:  if not, 
 
 
argument p'poned & flexibility secured. T.W. 
Negotiated at length.  Ag. workers haven't a case.  Provisions v.  
|                                 |                                                                        | owners v. drastic:  must have safeguard in Bill re compos       |
|---------------------------------|------------------------------------------------------------------------|-----------------------------------------------------------------|
| n                               |                                                                        |                                                                 |
|                                 |                                                                        | of Cttee.                                                       |
|                                 |                                                                        | I reserve my right to appoint 5 addl. members of my choice.     |
|                                 |                                                                        | Want to w'stand workers' pressure.                              |
|                                 |                                                                        |                                                                 |
| J.W.                            | Diff. for me - havg. obt                                               |                                                                 |
| d                               |                                                                        |                                                                 |
| agreement in Scotland - if prov |                                                                        |                                                                 |
| n                               |                                                                        |                                                                 |
| is changed.                     |                                                                        |                                                                 |
|                                 |                                                                        |                                                                 |
| n                               |                                                                        |                                                                 |
| of Cttees.                      |                                                                        |                                                                 |
|                                 |                                                                        |                                                                 |
| A.                              | Cl. 14.  Still not v. happy over form of Clause.  Cases not bad enough |                                                                 |
|                                 |                                                                        | for supervision order - has Minister enough power to prescribe. |
|                                 |                                                                        | T.W. says indirectly covered.                                   |
|                                 |                                                                        |                                                                 |
| J.W.                            | Cl. 30(3).  No penalty for landlord who doesn't proceed with declared  |                                                                 |
|                                 |                                                                        | purpose.                                                        |
|                                 |                                                                        |                                                                 |
| T.W.                            | We shd. have right to turn him off.  But will consider the point.      |                                                                 |

 

| C.E.                                                 | N.I. Govt. will promote Bill to bring their leg                          |
|------------------------------------------------------|--------------------------------------------------------------------------|
| n                                                    |                                                                          |
| into line with this.                                 |                                                                          |
|                                                      |                                                                          |
| T.W.                                                 | Cl. 4:  wide powers:  also cl. 7.  But essential to our policy.  Will be |
|                                                      |                                                                          |
|                                                      |                                                                          |
| H.D.                                                 | Oppos                                                                    |
| n                                                    |                                                                          |
| are weakening.  No fight e.g. over Exchange Control. |                                                                          |
|                                                      |                                                                          |
|                                                      |                                                                          |
|                                                      |                                                                          |
| c                                                    |                                                                          |
| N.                                                   |                                                                          |

4. 
Malayan Constitution. 

 A. 
As in memo. C.J. 
Malays won't accept "Malayan Union".  Federation of Malaya. 



Approved. 
5. 
Man Power:  Demobilisation. 
 

| G.A.I.    | P.M.'s statement not reaching the troops.   Radio?    |
|-----------|-------------------------------------------------------|
|           |                                                       |
| P.M.      | Did it.                                               |

 

| A.V.A.          | Let me have ev      |
|-----------------|---------------------|
| ce              |                     |
| & I'll enquire. |                     |
|                 |                     |
| H.M.            | Print & distribute. |

 

## 6. Parliamentary Labour Party Committees.

 R.S.C. 
Reports of Parly. Labour Party Cttees.  Films.  In Press before I see it. P.M. 
Always leak to Press first.  Shd. be taken up. A.V.A. 
Army Reform:  publn at once. H.M. 
Must be leaks.  Will look into it. P.M. 
Take it up with Liaison Cttee. 
C.M. 104(46).  
 
 
10th December, 1946. 

 
1. 
Egypt. 
 

| P.M.               | Resign                                                    |
|--------------------|-----------------------------------------------------------|
| n                  |                                                           |
| of Sidky.          |                                                           |
|                    |                                                           |
| M                  |                                                           |
| c                  |                                                           |
| N.                 | Saw Amb:  Nokrashi wd. sign treaty w'out discussg. interp |
| ns                 |                                                           |
| .                  |                                                           |
|                    |                                                           |
|                    |                                                           |
| P.M.               | Can't go on w'out satisf                                  |
| n                  |                                                           |
| on Sudan Protocol. |                                                           |
|                    |                                                           |
|                    |                                                           |

2. 
Persia. 

 E.Sh. 
Clash in Aberj.  Refce (viz. report) to Security Council - Byrnes in 
 
 
favour:  E.B. was against. 
 
 
We thght. E.B. right. 
 
McN. 
Believe Persians wd. have reported it anyhow. 
 
Council can't take any action:  issue still on Agenda:  cd. be argued 
 
 
Persia was under oblign to report change in situation. E.Sh. 
Trouble with R:  or Comm. dominn in Persia. 
 
Agree nothg. can be done about it now. 
 
We are in vulnerable posn in Persia. 
 
Preferred E.B.'s attitude to Byrnes'. A.V.A. 
Agree:  but in favour of Byrnes attitude, R. Amb. interview with 
 
 
P. Govt. were v. threatening. 

3. 
Spain. 

 H.M 
Thought U.K. were to initiate resoln.  See U.S. did so.  Why? 
 
McN. 
Thought on Sat. (conversn with E.B.) we were not going to support 
 
 
removal of Heads of Mission failing unanimity.  See, however, 
 
 
we have. P.M. 
Tactics on spot. 
 

 

## 4. Return To U.N. Of Numbers Of Troops.

 A.V.A. 
M. refusal of verification of home forces.  What line will F.O. now  
 
 
take?  Global figures only?  not detailed dispositions. 

 

McN. 
Thght. verification confined to armaments. 
 
U.S. declined to support us on census & we were defeated. 
 
We must make a return.  Form of it can be considered by experts. 


A.V.A. to take expert advice. 


[Enter  P.M.G. 
5. 
India. P.L. 
Reported conversations with Indian leaders. 
 
Re-affirmed our view of Cabinet Mission's statement. 
 
Constituent Assembly is being held.  Procedure we intended all along 
 
 
will be followed. 
 
P.M. 
Emerged tht. Congress wd. accept ruling by Federal Court.  We suggd
 
 
any contested point shd. be so decided.  Alternatives:  H.M.G. 
 
 
(they wd. resent):  Chairman of Assembly (unreliable):  
 
 
Fed. Court. 
 
Hung in balance because assumed collabn in Govt. wd. induce  
 
 
sensible attitude. 
 
Don't know wtr. we succeeded in impressing Indians with gravity. 
 
Statement in Parlt.  Opposn leaders ready to discuss in advance. 
                 x/ That might avoid debate - wh. wd. be inexpedient.  Suggest therefore 
discussion (informal) to-day & Statement on Wednesday. 
 
Nehru claims para. 15 governs other paras. we have interpreted. 
 
 
We dispute this. P.L. 
If Fed. Ct. decided against us, & we did not act on it (Jinnah wdn't), 
 
 
the Ct. wd. never give another decision on interpretn.  
 
 
V. awkward. A.B. 
Do they want to agree? P.M. 
Jinnah's line is going to make Pakistan inevitable.  It's shaping that  
 
 
way. A.V.A. 
Effect of P.M.'s allocution was good.  We must now see what happens. P.M. 
Warn Cab. tht. Assembly may get bit into teeth & do somethg.  
 
 
reckless. 
 
Believe they rely on B. Army to prevent things getting too bad.  Feel 
 
 
free therefore to be irresponsible. 
 
We may face a posn in wh. we must say we won't hold the ring any 
 
 
longer:  give notice of w'drawal on a given date. H.D. 
Supported v. bluntly. A.V.A. 
But we must then take a/c of - a) adequate provn of minorities in any 
 
 
constitn on wh. we hand over   b) Treaty governing transfer of  
 
 
Power. 
 

 
Remember - are Parlt. & people ready to agree to surrender  
 
 
minorities. 
 
 
Will it be regarded as policy of scuttle. 
 
A.B. 
We have got it across to India that we are sincere in desire that  
 
 
Indians shd. govern themselves.  The second thing is to get it 
 
 
equally clear that we are not going to be involved indefinitely 
 
 
in holding the ring & relieving Indians of ultimate responsibility 
 
 
for law & order & treatment of minorities. C.E. 
Cd. we get out militarily, if we were forced politically to w'draw. P.M. 
Plans have bn. prepared. 
 
E.W. 
Mil. apprecn of arms at disposal of Congress? P.M. 
No major armaments.  But many individual arms. A.V.A. 
Real ques. then wd. be attitude of Indian Army. E.Sh. 
Wd. w'drawal, in disorder, be politically practicable - even if  
 
 
militarily.  We can't escape our responsibility for m'taining 
 
 
order. P.M. 
Cdn't do it with B. troops alone - if Indian Army defected - nor the 
 
 
B. adminve machine either.  We cdn't run 15 yrs' of firm B. rule 
 
 
in India. 
 
Needs now a)  Keep calm. 

b)  don't remove fr. Indians responsibility to face realities. 

                  Agreed  as at x/. P.L. 
Jinnah's lunch party. P.M. 
I am invited too. 
 
Recommend we all decline. A.V.A. 
Last week we had social contacts with both sides.  The others can't  
 
 
return our hospitality.  We shd. decline this invitation. 


Agreed:  decline:  P.L. to explain frankly to Jinnah the 

                             reasons.  
 
6. 
Burma. 

 P.L. 
Statement extracted from us in 1931 that their claims to self-Govt. wd. 
 
 
rank not lower than those of India. 
 
D-Smith sided with old gang in Burma - brght. them all into  
 
 
Ex. Council:  headed by Aung Sang & his anti-Fascist League. 
 
Elections - can't be held in Burma as quickly as in India   [Exit C.E. 
 
 
because of war devastation.  April '47 = earliest practicable date. 
 
Because of the strike we had to allow Aung Sang prominent part in the 
|                            |                                                                          | Govt.  And he wants to expedite v. much our p'mme for p'gress      |
|----------------------------|--------------------------------------------------------------------------|--------------------------------------------------------------------|
|                            |                                                                          | twds. self-govt.                                                   |
|                            | Invitations to Delegation to come here.  Cond                            |                                                                    |
| ns                         |                                                                          |                                                                    |
| now demanded - most        |                                                                          |                                                                    |
|                            |                                                                          | important of these (for them & us) is "independence" w'out         |
|                            |                                                                          | intermediate stage of Dom. status then secession.   [Re-enter C.E. |
|                            | On merits I wd. be against making that declaration in advance.  Fear,    |                                                                    |
|                            |                                                                          | however, our military position in Burma doesn't allow us to take   |
|                            |                                                                          | a strong line.                                                     |
|                            |                                                                          | Effective strength of B. troops = 3.000 only.                      |
|                            |                                                                          | Can't face a show-down:  B. admin                                  |
| n                          |                                                                          |                                                                    |
| & Police are v. shaky.     |                                                                          |                                                                    |
|                            | Recommend therefore offering independence w'out first becoming a         |                                                                    |
|                            |                                                                          | Dominion.                                                          |
|                            | Recognise they may ask for even more when they come.                     |                                                                    |
|                            |                                                                          |                                                                    |
| P.M.                       | Differs from India because these are not elected leaders.                |                                                                    |
|                            | But course of events shown that support of Aung San. was right           |                                                                    |
|                            |                                                                          | course.  Pity it wasn't adopted earlier.                           |
|                            | Wd. go some way to get them over here.  Can't pretend they are           |                                                                    |
|                            |                                                                          | national Govt.  We have accepted pos                               |
| n                          |                                                                          |                                                                    |
| tht. Burma & India shd.    |                                                                          |                                                                    |
|                            |                                                                          | advance pari passu.                                                |
|                            | Believe it is realistic to make this declaration.                        |                                                                    |
|                            |                                                                          |                                                                    |
| H.M.                       | We are getting political reput                                           |                                                                    |
| n                          |                                                                          |                                                                    |
| for giving away B. Empire. |                                                                          |                                                                    |
|                            |                                                                          |                                                                    |
| A.B.                       | But long-term, we may get these countries closer to us after a taste     |                                                                    |
|                            |                                                                          | of independence.                                                   |
|                            |                                                                          |                                                                    |
| P.M.                       | Finance:  they haven't got it, as India has.                             |                                                                    |
|                            |                                                                          |                                                                    |
| H.D.                       | No further financial concessions, as contemplated in memo.               |                                                                    |
|                            | Overseas expenditure.                                                    |                                                                    |
|                            |                                                                          |                                                                    |
| P.L.                       | Latitude in spending, not more money.                                    |                                                                    |
|                            | And no assurance on this in advance.                                     |                                                                    |
|                            |                                                                          |                                                                    |
| A.                         | No evidence of their competence to govern Burma.  Hope we won't go       |                                                                    |
|                            |                                                                          | as far as this.                                                    |
|                            | Country is in state of roaring disorder.  A v. groggy lot.  Why not call |                                                                    |
|                            |                                                                          | their bluff?                                                       |
|                            |                                                                          |                                                                    |
| P.M.                       | The real incompetence was shown by previous Govt.                        |                                                                    |

 
C-J.            a) Due regard to posn of Shan States in any statement made. 
                   b) Repercussions on Ceylon & Malaya. 
Ceylon say their progress is slower because they have played the game. 
 
Malayan negotns are influenced by events in Indonesia & Burma. P.M. 
I accept a).  Karens also. A.V.A. 
Continuing weakening of communications will eventually threaten our 

|                                           |                                                           | security at home.  We are at cross-roads.      |
|-------------------------------------------|-----------------------------------------------------------|------------------------------------------------|
|                                           | Discuss with Oppos                                        |                                                |
| n                                         |                                                           |                                                |
| - who won't countenance going beyond Dom. |                                                           |                                                |
|                                           |                                                           | status.                                        |
|                                           |                                                           |                                                |
| P.M.                                      | I will inform - but not consult.                          |                                                |
|                                           |                                                           |                                                |
| A.                                        | Ceylon are readier for self. govt. than Burma.            |                                                |
|                                           | Shd. be chary of going further than statement re Ceylon.  |                                                |
|                                           |                                                           |                                                |
| J.                                        | A vague & general statement cast in futuro.               |                                                |
|                                           |                                                           |                                                |
| P.L.                                      | We can't take the possible consequences of standing firm. |                                                |
|                                           |                                                           |                                                |
| P.M.                                      | Re-affirm                                                 |                                                |
| n                                         |                                                           |                                                |
| of earlier statements re Burma.           |                                                           |                                                |
|                                           |                                                           | Prepare draft & submit to Cabinet on Thursday. |
|                                           |                                                           | (P.M. & P.L. to prepare in consult             |
| n                                         |                                                           |                                                |
| .)                                        |                                                           |                                                |


                                                [Exit  P.M.G. 

                                                         [Enter Bellenger, Hall, 

                                                          1st Sea Lord & Barnes. 
 
7. 
Palestine:  Arrest on High Seas. 

 H. 
As in memo. 
 
Diffies at Haifa increased as larger ships used in the traffic. 
 
Amendment:  at end of para. 5 insert:  "I am however prepd to instruct 
 
 
C. in C. tht. only in except. circs. may be interfere with ship of 
 
 
foreign flag unless Admy. notified 48 hours in advance."  To 
 
 
meet F.O. views. 
 
This only gives discretionary power. 
 
Not an easy task for R.N.  May affect only a few ships. 
 
A.V.A. 
Obliged to Admy. for proposed amendment. 
 
I was concerned in earlier discussions - insisted then tht. action be 
 
 
taken only at request of High Commr. or C-in-C. 
 
Original para. 5 wd. have laid v. heavy responsibility on junior 
 
 
officers esp. as some of the condns cdn't be ascertained until 
 
 
he had boarded. 
 
Still disturbed at loop-hole "exceptional circs." 
 
Risk of disaster in boarding.  What "exceptional circs." C.N.S. 
This = attempt to meet needs of C.O. & High Commr. 
 
Faster & bigger ships:  can't easily intercept w'in territorial waters. 
 
Also desire to divert to Cyprus. 
 
Read draft signal.  "Except. circs. wd. be inability to identify ship 
 
 
or strong suspicion that she is w'in para. 1." J. 
Not satisfy. this is w'in recognised principles of internatl law. 
 
Only analogy I can think of - rum-runners during Prohibn.  Our 
 
 
Admy. resisted search up to 12 mile limit. 
 
Right of search = entirely belligerent right. 
|                                                  |                                                                                    | Right of approach recognised for suspicion of slavery, piracy,    |
|--------------------------------------------------|------------------------------------------------------------------------------------|-------------------------------------------------------------------|
|                                                  |                                                                                    | improper use of flag.                                             |
|                                                  | Don't therefore readily assume this extension of the principle wd.                 |                                                                   |
|                                                  |                                                                                    | be acquiesced in by other nations.                                |
|                                                  | Oppenheim's rather obscure statement stands alone.                                 |                                                                   |
|                                                  |                                                                                    |                                                                   |
| M                                                |                                                                                    |                                                                   |
| c                                                |                                                                                    |                                                                   |
| N.                                               | Almost all cases F.O. & Admy. know most about ship   [Exit  C.E.                   |                                                                   |
|                                                  |                                                                                    | before she sails.                                                 |
|                                                  | Conceded "exceptional circs." for reasons given by Admy. - lack of                 |                                                                   |
|                                                  |                                                                                    | identific                                                         |
| n                                                |                                                                                    |                                                                   |
| :  week-ends etc.                                |                                                                                    |                                                                   |
|                                                  |                                                                                    |                                                                   |
| P.M.                                             | Will be taken up by U.S. Govt. and issue of international law will be              |                                                                   |
|                                                  |                                                                                    | raised.                                                           |
|                                                  |                                                                                    |                                                                   |
| A.B.                                             | Worried about c).  If it won't stop, do you fire on it?  Unilateral                |                                                                   |
|                                                  |                                                                                    | resumption of hostilities w'out consult                           |
| n                                                |                                                                                    |                                                                   |
| with Allies.                                     |                                                                                    |                                                                   |
|                                                  |                                                                                    |                                                                   |
| A.V.A.                                           | Always assumed for 12 mos. tht. enemy ship susceptible to                          |                                                                   |
|                                                  |                                                                                    | interference.                                                     |
|                                                  |                                                                                    |                                                                   |
| J.                                               | Our pronouncement in the 20's vis-à-vis U.S.A.                                     |                                                                   |
|                                                  | As a result internat                                                               |                                                                   |
| l                                                |                                                                                    |                                                                   |
| agreemt. in 1930 re-affirming territorial limit. |                                                                                    |                                                                   |
|                                                  |                                                                                    |                                                                   |
| P.M.                                             | We are standing on letter of internat                                              |                                                                   |
| l                                                |                                                                                    |                                                                   |
| law vis-à-vis Albania.                           |                                                                                    |                                                                   |
|                                                  |                                                                                    |                                                                   |
| C.N.S.                                           | Intern. law protects only ships carrying recognisable national flag = a).          |                                                                   |
|                                                  | Ship protected only when in control of a master.                             = b). |                                                                   |
|                                                  |                                                                                    | Agreed:  defer decision while Admy. & F.O. consult                |
|                                                  |                                                                                    |                                                                   |
|                                                  |                                                                                    |                                                                   |
|                                                  |                                                                                    |                                                                   |
|                                                  |                                                                                    |                                                                   |

## 8. Germany.  Coal Exports.

 J.B.H. 
E.C.O. meeting Thursday. 
 
Prodn up to 200.000 t. p.dieum as cpd. with 180.000 before increase in 
 
 
food rations. 
 
 
But deficit still of 3.9 on requirements of Zone. 
 
 
Also 240.000 t.p.m. requd from us for domestic coal.  In other  
 
 
Zones, but not ours, they have agreed to work extra shift to get. P.M. 
Shortfall of 2 m. tons from U.S.A.? J.B.H. 
Lag only now U.S. strike called off. A.B. 
Deficit is only small propn of prodn. 
 
Won't it remove incentive to G. if we allow G. to have all their prodn. E.Sh. 
But if they retained their whole prodn they wdn't have enough. 
McN. 
I accept recommns  a) and b). 
|                                                              |                                                                      | But c) shd. be deferred.  Report by experts is now completed & awaits    |
|--------------------------------------------------------------|----------------------------------------------------------------------|--------------------------------------------------------------------------|
|                                                              |                                                                      | consid                                                                   |
| n                                                            |                                                                      |                                                                          |
| by C.F.M.  Wd. be precipitate to take this bi-lateral        |                                                                      |                                                                          |
|                                                              |                                                                      | action.                                                                  |
|                                                              | Pol. consequences - not France alone.  Interested in their recovery. |                                                                          |
|                                                              |                                                                      |                                                                          |
| E.Sh.                                                        | Agree - shd. be content with a) and b).                              |                                                                          |
|                                                              | See what happens as result of that.                                  |                                                                          |
|                                                              |                                                                      |                                                                          |
| A.G.                                                         | Agreed.                                                              |                                                                          |
|                                                              |                                                                      |                                                                          |
| F.W.B.                                                       | Alloc                                                                |                                                                          |
| ns                                                           |                                                                      |                                                                          |
| to B. troops in Austria wdn't be affected?  Or B. Army staff |                                                                      |                                                                          |
|                                                              |                                                                      | in France.                                                               |
|                                                              |                                                                      | Latter wd. interfere with Medloc trains.                                 |
|                                                              |                                                                      |                                                                          |
|                                                              |                                                                      |                                                                          |
|                                                              |                                                                      |                                                                          |
|                                                              |                                                                      |                                                                          |

9. 
Royalist Yugoslavs in Germany. 

 J.B.H. 
Found that readiness to accept repatn is increased by moving the men 
 
 
& separating them from officers. 
[Exit  E.Sh. 
 
New plan offers chance of dispersal with less chance of trouble. 
 
Brought to Cab because some risk of resistance - particularly to  
 
 
segregation of senior officers. P.M. 
Why kept with Officers so long? J.B.H. 
They fought v. the Germans. 
 
McN. 
Political diffies with Slav. countries.  Hope tht. when off duty their 
 
 
arms will be given up.  Officers used to be not senior to Captain. 
 
 
Senior officers to be separated.  I have 50 visa's under the 
 
 
counter. H.D. 
We've bn. paying for these animals too long! 
 
Want consultn with Ty. on pay & condns of Watchmen's corps. 
 
Why weren't these men employed on timber-cutting? P.M. 
Why wasn't I told about them before. 
                   x/ Let Cab. have a report on all these pockets of odds & ends in Germany 
 
(? Austria, too). 


Agreed:  adopt this memo.  Captains & below. 

              P.M. to pursue x/ on Sargent's report. J.B.H. 
Can I bring the 86 top men to U.K.? P.M. 
No. 

 10. Sarawak. 

 
Agreed - keep Antony Brooke out. 
 

## 1. Parliament.                                                     [Mcn., J.B.H. And W.W.

 

| H.M.    |
|---------|
|         |
|         |

## 2. Socialisation Of Ruhr Industries.

 P.M. 
Selection of custodians by Minister wd. make too much of it - 
 
 
& nothing wd. follow. 
 
A.B. 
Suspicion in Party that we are being dragged at U.S. heels. 
 
Nec. to make it apparent that appln of these principles in Ruhr is 
 
 
being done by direct authy of Cab. - not junior Minister  
 
 
under F.O. (who have always to think of Byrnes'  
 
 
susceptibilities.) P.M. 
Point = had Germans to expect a lot & they will be disappointed. J.B.H. 
This was my view, before E.B.'s intervention.  Had intended to ask 
 
 
for delay - to discuss in G. powers of custodians, scope of  
 
 
natn (Cab. decn confined to Ruhr area), ultimate fate of  
 
 
industries (Land or central Govt.).  Don't want to talk to Land 
 
 
Govts. for publn before all these points cleared. 
 
 
Also advisable to await elections in March.  Want therefore to 
 
 
explore, in G., first:  & submit firm proposals to Cabinet. 
 
E.B. now endorses.  Save tht. I think we shd. tell U.S. before we 
 
 
tell Germans. E.Sh.          
 a) 
C-in-C. and E.B. don't want to rush the apptmt of custodians. 
 
Better wait & evolve future pattern, incldg. wtr. natn shd. go beyond 
 
 
Ruhr. 
                  
 b) 
Shdn't we tell U.S. of our intentns.   If we are resolved to go on with 
 
 
this, only courteous to tell them. R.S.C. 
Para. 3 of 7012.  We have
 told U.S. of our intentns. P.M. 
Some virtue in announcg. intentn to appoint custodians - & telling U.S. 
 
Don't get a Minister involved:  but do make a public announcement. A.B. 
Worried by language of C-in-C. in Argus 731. 
 
I want H.M.G. to be absolutely commd before U.S. are involved 
 
 
thro' fusion. E.Sh. 
Can't appoint custodians until clear what they are to do. 


|                        | P.M.                                                                   | J.B.H. to go over & report to us on whole ques.  You shdn't discuss    |
|------------------------|------------------------------------------------------------------------|------------------------------------------------------------------------|
|                        |                                                                        | with Lauder.                                                           |
|                        | Must be report on extent of nat                                        |                                                                        |
| n                      |                                                                        |                                                                        |
| .                      |                                                                        |                                                                        |
|                        |                                                                        |                                                                        |
| H.M. &                 | Severance.  Assumed wdn't be limited to Ruhr.                          |                                                                        |
| others.                |                                                                        |                                                                        |
|                        |                                                                        |                                                                        |
| P.M.                   | Two points  a) announcemt. of intent                                   |                                                                        |
| n                      |                                                                        |                                                                        |
| to appoint custodians. |                                                                        |                                                                        |
|                        |                                                                        |                                                                        |
| J.B.H.                 | Yes:  that I am going there to discuss with C.C. etc.  In Parlt. while |                                                                        |
|                        |                                                                        | I am out there.                                                        |
|                        |                                                                        |                                                                        |
| R.S.C.                 | Press announcemt. wd. suffice.                                         |                                                                        |
|                        | To follow H.D.'s statement on fusion:  to give effect to               |                                                                        |
|                        |                                                                        |                                                                        |
| P.M.                   | b)  Comm                                                               |                                                                        |
| n                      |                                                                        |                                                                        |
| to U.S.                |                                                                        |                                                                        |
|                        |                                                                        |                                                                        |
| H.D.                   | Follow E.B.'s advice:  don't do it.                                    |                                                                        |
|                        |                                                                        |                                                                        |
| J.B.H.                 | C-in-C. can tell them informally?                                      |                                                                        |
|                        |                                                                        |                                                                        |
| M                      |                                                                        |                                                                        |
| c                      |                                                                        |                                                                        |
| N.                     | Let U.S. in G. have press notice in advance, as matter of courtesy.    |                                                                        |
|                        |                                                                        |                                                                        |

## [Exit  J.B.H.


                              Enter  C.O.S.  Service Ministers. 
 
3. 
Burma.

 P.M. 
Views of C.O.S? C.N.S. 
Called on C.I.G.S for military.  Naval:  one cruiser. C.I.G.S. 
To assist release scheme, we agreed disperse Divn. in Malaya & 
 
 
take a risk in F/East. 
 
Forces to put down w'pread rebellion in Burma cdn't be supplied 
 
 
w'out slowing demob. 
 
3 Batts. Inf. cd. go fr. Singapore to Rangoon in 3 wks. w'out  
 
 
interference scheme.  No more unless B. troops taken fr. India. C.A.S. 
One Transpt. Squadron.  Cd. send 1 light bomber squadron & another 
 
 
transport sqn.  Support of troops only. C.I.G.S. 
The 3 Batts. wd. mean chance in H. Kong.   Prob. justifiable. 
 
No spare troops in Egypt.  Divn. moving up into Pal.  The rest = 
 
 
administrative troops. 
 
This informn re Burma is fr. pol. channels.  Nothg. from Genl. in 
 
 
Burma, who wd. have let me know if real trouble. 
P.M. 
We can take a chance on this. A. 
Self-apptd adventurers.  Don't therefore say we contemplate giving 
       Agreed. 
 
them extensive powers.  Para. 2. are we going to discuss this with 
 
 
these?  Omit [  ]. 
 
 
Para. 5.  These people aren't competent to discuss these issues. 
 
 
We will discuss those with respons. Govt. when apptd. P.M. 
We will discuss with them, incldg. wtr. they are competent. A. 
Don't say it in advance.  Call their bluff. P.L. 
They may call ours. P.M. 
This draft gives nothing away. 
 
H.M. 
Give Govt. para. 5 & tell him to use it only in need. P.M. 
Let C.I.G.S. H.D. 
Omit refce to finance in para. 3.  Don't put idea in his head. 
 
 
Agreed:  no reference to finance.  Omit [  ] fr. para. 7 

     Omit para. 5. 

     Amend para. 2. 
 
 
Re-draft & make it much shorter. C.N.S. 
Cruiser Jamaica left Rangoon this a.m.  Shd. she go back.  Or  
 
 
enough to keep cruiser w'in 3 days' steaming of R. P.M. 
Latter is enough. 
 
 
Agreed:  C.I.G.S. to secure rpt. from Genl. in Burma. P.L. 
P.Q. by Friburg re
 Parly. Delegn.  What answer? 
 
P.M. 
Bad moment for that.  Say not at this stage.  Will be considered at 
 
 
some future date.  Get him to p'pone if he will. 

## 4. Egypt:  Withdrawal Of Troops.

 P.M. 
Pressure for more speed. C.I.G.S. 
We are up to p'mme.  Shall be down to 
 
32.000 by ¼ next. 
 
B. troops not in evidence in Cairo 
 
King said he was pleased with our p'ess. H.D. 
Cd. I have analysis of 84.000. P.M. 
I will supply it. 
F.W.B. 
50.000 of them will go in 3 months. 
 
McN 
Divn. moving to Pal. (Item 3) is new = puts difft. complexion. 
 
P.o.w.'s reduction 2.500 a month to June then 5.000. 

 

|    | N.B.    | Share E.B.'s apprehensions.  But movemt. of stores must take time -    |
|----|---------|------------------------------------------------------------------------|
|    |         | if they go too fast will cost us more.                                 |

 P.M. 
Let Ty. consider wtr. poss. we are spendg. more in guarding than we 

|     |     | shd. in selling stores cheap.    |
|-----|-----|----------------------------------|

 
McN. 
P.o.w. - will be 12 months before they are cleared. 
 

F.W.B. 
Needed on accommn for B. troops.  Cheaper than local labour. 

 

N.B. 
6.000 redn in 2 recent weeks. 

 
C.I.G.S. 
Move p.o.w. quicker & troop run down will be slower. 

                                     [Exit  C.O.S. and Service Ministers 

                                      Enter  T.C.P., Wilmot, G.T. 
 
5. 
Town and Country Planning Bill. 

 S. 
15 schemes between Uthwatt & 1/4/44. considered & rejected. 
 
Oct. '45 we produced a 16th. 
 
Expounded latest scheme.  Discounting principle:  devised by 
 
 
Treasury. 

 

| P.M.                                    | Can it be defended in practice?                                      |
|-----------------------------------------|----------------------------------------------------------------------|
|                                         |                                                                      |
| S.                                      | Yes:  because longer ago it was bought the less developmt. value     |
|                                         |                                                                      |
|                                         |                                                                      |
| J.                                      | Better a bad Bill than none.                                         |
|                                         | Adopt my scheme:  delete Pt. IV of Bill:  give draftsman latitude to |
|                                         |                                                                      |
| ns                                      |                                                                      |
| & alternative can be quickly drafted.   |                                                                      |
|                                         | Understand case for compens                                          |
| g                                       |                                                                      |
| all - or none.  But this picks &        |                                                                      |
|                                         |                                                                      |
|                                         |                                                                      |
|                                         |                                                                      |
|                                         | Tom:                                                                 |
|                                         | Dick:                                                                |
|                                         |                                                                      |
| H.M.                                    | He bght. it.                                                         |
|                                         |                                                                      |
| J.                                      | Prs. for £500.  Not a paymt. of out-of-pockets.  Scheme is based on  |
|                                         |                                                                      |
|                                         | No precedent for different                                           |
| n                                       |                                                                      |
| acc. to wtr. a man bought or inherited. |                                                                      |
|                                         |                                                                      |
|                                         |                                                                      |
|                                         |                                                                      |
| n                                       |                                                                      |
| dependent on method of                  |                                                                      |
|                                         |                                                                      |
|                                         | Harry:                                                               |

 
 
what principle (land being worth the same)  do you pay ½ to man 
 
 
who bought in 1925 what you pay to man who bght. in '39. 
 
Alternative.  Take a figure (arbitrary it must be) & divide it fairly. 
 
 
Must be arbitrary because float discount wd. be arbitrary. 
 
 
Barlow said £400 m:  & that hasn't bn. criticised.  True it didn't 
 
 
include re-development.  Add £100 m. for that = £500 m.  But 
 
 
then compare 1947 with 1937 - bldg. costs more, development 
 
 
prospect less.  Then halve it - say £250 m.  Make it 400 if you 
 
 
like:  but distribute it fairly. H.M. 
Long considns - in Coalition & this Govt.  Round & round. 
 
Disagree with J. 
 
Tom inherited:  didn't earn it:  reason for getting less. 
 
P.M. 
Suppose brothers:  one left land, the other money to buy land. H.M. 
Touche.  But always will be anomalies. 
 
Wdn't do this with coal etc.  But land is diff. (sinful) - from Labour 
 
 
Party angle. 
 
We start fr. basis tht. ideally no compn for unearned increment.  We 
 
 
concede claim for hard cases.  Thus little or no compensn for man 
 
 
who had held land for long & hasn't developed.  Man who 
 
 
bought recently & paid full value has a claim for some paymt. 
 
Any Bill will be contentious.  Politically disadvantageous to defend 
 
 
our Bill because it corresponds with Coalition Plan.  Wdn't  
 
 
placate Oppn:   wd. irritate Govt. supporters. 
 
Can't have basis of compensn to Regns. 
 
J.'s scheme concedes compn on current market value - incldg.  
 
 
increment.  Politically diff. for us. 
 
5 year moratorium necessary on J.'s scheme because adminve task 
 
 
of assessing share of individual owners.   What consequence 
 
 
of such delay? 
 
 
M'while, complete uncertainty.  Development will be  

|                                  |                                                                      | discouraged.                                                      |
|----------------------------------|----------------------------------------------------------------------|-------------------------------------------------------------------|
|                                  |                                                                      | Economic stagnation.                                              |
|                                  | Re-drafting.  Don't believe scheme cd. be worked out in under 3 wks: |                                                                   |
|                                  |                                                                      | then drafting.  Believe 6-8 wks. taking a/c of Xmas.  This really |
|                                  |                                                                      | means no Bill this Session.  Even autumn session wdn't help       |
|                                  |                                                                      | because this wd. be in H/L. & H/C. wd. be idle.                   |
|                                  | Can't guarantee we shall avoid diff                                  |                                                                   |
| ies                              |                                                                      |                                                                   |
| whichever scheme we adopt.       |                                                                      |                                                                   |
|                                  |                                                                      | But believe less pol. trouble with S.'s scheme.  Ty. had a big    |
|                                  |                                                                      | share in evolving this.  Govt. Valuer prefers S.'s.               |
|                                  | Urge Cabinet to take the risk of endorsing S. & fight it through.    |                                                                   |
|                                  |                                                                      |                                                                   |
| P.M.                             | Wasn't here on 1/8.                                                  |                                                                   |
|                                  | Worried by acceptance of view tht. comp                              |                                                                   |
| n                                |                                                                      |                                                                   |
| can be related to moral act -    |                                                                      |                                                                   |
|                                  |                                                                      | purchase or inheritance.  Purchase may have bn. made by           |
|                                  |                                                                      | trustees.  This is old-fashioned Liberal distrust of land as cpd. |
|                                  |                                                                      | with industry.                                                    |
|                                  | Wd. prefer a principle - no comp                                     |                                                                   |
| n                                |                                                                      |                                                                   |
| : or fair shares:  but not this. |                                                                      |                                                                   | P.L. 
Agree with J.  Bill = indefensible.  Trustees with mortgages - other 
 
 
hard cases. 
 
R.S.C. 
Debate - global figure:  its distribution. 
 
The 2nd is the most diff. Parly. fight.  Can't justify inequity. 
 
Also afterwds. discontent fr. discrepancy in treatment.  No one will 
 
 
understand reasons.  Can't defend by refce to out-of-pockets, or  

merits.  Differn by passage of time! 
 
Can't treat property in land as difft. fr. other property. 
 
Popular investment with trustees, colleges etc.  This Bill will give 
 
 
them nothing:  & most to worst type of land speculators. 
 
E.Sh. 
J.'s scheme.  Global figure.  Mustn't you lay down principles on wh. 
 
it is to be distributed [& ascertained?].  c.f. instns to Tribunal 
 
 
on coal. 

 J. 
c.f. Rlway rating.  Evaluate tenant's fixtures:  but then apply - purely 
 
arbitrary fraction. 
 
Here if you ascertained total you wd. have to take an arbitrary 
 
 
fraction of it because of float. E.Sh. 
Uncertainty of scheme.  Pol. controversy over that? R.S.C. 
In either case you have to begin with current value - & ascertain that. 
 

A.B. 
Sub-Cttee have done much work on this. 

 
T.C.P. can't be blamed. 
 
Many of us were too busy to think about this as deeply as we should. 
I 
became doubtful at end.  Thght. we shd. limit ourselves in advance x/ 
 
to a total:  otherwise will grow as it goes thro' Parlt. 

|                                               | Agree no moral diff                                                   |
|-----------------------------------------------|-----------------------------------------------------------------------|
| ce                                            |                                                                       |
| betwn. land or other property.  c.f. unearned |                                                                       |
|                                               |                                                                       |
| nd                                            |                                                                       |
| hand cars.                                    |                                                                       |
|                                               | Repeated x/.  This is charm of J.'s scheme.  One claimant if he       |
|                                               |                                                                       |
|                                               | Put in a figure:  establish a Comm                                    |
| n                                             |                                                                       |
| to work out distribution:  power to           |                                                                       |
|                                               |                                                                       |
| n                                             |                                                                       |
| , later, regarding distrib                    |                                                                       |
| n                                             |                                                                       |
| .                                             |                                                                       |
|                                               | This is the Bill, of all, on which we shall have a show-down with     |
|                                               |                                                                       |
|                                               | Have therefore principles which can be defended.  And get it in early |
|                                               |                                                                       |
|                                               |                                                                       |
| A.                                            | Confirms my view tht. nat                                             |
| n                                             |                                                                       |
| was right remedy!                             |                                                                       |
|                                               | Must pay compens                                                      |
| n                                             |                                                                       |
| .                                             |                                                                       |
|                                               | Only principle = paymt. acc. to value.                                |
|                                               | Can't defend the discrimination proposed in Bill.  Support J.         |
|                                               |                                                                       |
|                                               | Global figure.  Arbitrary.  But you say at outset you aren't going to |
|                                               |                                                                       |
|                                               |                                                                       |
|                 |                                                                    |
|-----------------|--------------------------------------------------------------------|
| H.D.            | Must get this Bill.                                                |
|                 | Was ready to support S.                                            |
|                 | Trend of Cab. opinion is in favour of J.                           |
|                 | Then, let us see quickly wtr. Part IV can be drafted in time.      |
|                 |                                                                    |
| W.W.            | Shd. have bn. presented before Xmas.  2                            |
| nd              |                                                                    |
| Rdg. 22/23 Jan. |                                                                    |
|                 |                                                                    |
| H.M.            | J. said a week-end.  He must do it.  Submit to Cab. next Thursday. |
|                 |                                                                    |
| J.              | I will attempt this.                                               |

 

|           | S.    | Not merely drafting.  Must think what we are about.  Can't put in a    |
|-----------|-------|------------------------------------------------------------------------|
|           |       | figure until we know what classes are to get what prop                 |
| n         |       |                                                                        |
| of value. |       |                                                                        |

 
Depart fr. my scheme:  & you will lose the Bill for this Session. 
 

| J.               | Give me latitude - to follow A.B.'s proposal.    |
|------------------|--------------------------------------------------|
|                  |                                                  |
| S.               | But amount                                       |
| must be settled. |                                                  |

 

|    |    |    | H.D.    | It's up to J. to save the Bill.    |
|----|----|----|---------|------------------------------------|
|    |    |    |         | [Exit invitees.                    |

 

## 6. Clothing Ration.

 R.S.C. 
Must announce before Xmas. H.M. 
This misery on Xmas Eve? R.S.C. 
Must allocate by 1/1.  Will leak out. 


Deferred:  Monday at 11.a.m. 
 

1. 
Egypt. 
 

| O.S.                                                 | New P.M:  may enable us to escape deadlock on Treaty.    |
|------------------------------------------------------|----------------------------------------------------------|
|                                                      | Not comm                                                 |
| d                                                    |                                                          |
| himself so far.  Amb. going back to him in 2-3 days. |                                                          |

 
2. 
Wheat Supplies.

 J.S. 
Appln for 700.000 t. over crop year, made Sept., is dragging. -  
 
 
U.S. p'mme. 
 
Their p'mme announced for this quarter included nothing for us. 
 
Then found first quarter of '47 about to be publd with nothing for us. 
 
P.M. sanctioned by message of Thurs. to Cl. Anderson - threatening 
 
 
to come over in person.  Nuisance value. 
 
Telegrams from E.B.  Assurances all will be well.  Nothing definite. 
 
 
Cab. mtgs in W'ton on this Mon. & Tuesd. 
 
Latest from E.B. - p'pone my leaving for 24 hrs. 
 
Message from P.M. to President. 
 
I agree to p'pone 24 hrs.:  P.M. message to go:  can't assent to longer 
 
 
p'ponement. 
 
150.000 t. must arrive in U.K. by end/Jan.  Shipment to start at once. 
 
 
Otherwise cut in bread rationing. P.M. 
Byrnes says transport.  Is that so? J.S. 
True - overall:  but cd. give us ours
, at expense of other countries. H.M. 
Deadline - Wed. night.  Gives Byrnes a chance w'out crossing wires. 
 
P.M. 
Don't go until you know what happened at to-day's Cabinet. 
 
No message until we know that result. 
 
And even then a softer message than draft submd by J.S. 
 
 
Agreed:   await result of W'ton Cab. to-day. 

      if unfavourable P.M. to send message to Truman. 

      ..          ..           J.S. to leave on Wed. night. 

      (or when necessary to arrive Thursday) 

      P.M. to fix details.                                              [Exit  O.S. 

 
3. 
Clothes Rationing.
 

 R.S.C. 
a) home & export   b) division w'in exports. 
 
b) is less urgent.  Am ready to refer it to Cttee of officials to 
 
 
consider & report to Cab. if necessary. 

 

 
Main point.  Oct/Dec. '46  95.400 t. estimated.  90.000 realised 


       because cut hours. 

  Next period.  87.500 t. estimated because cut hours:  

       fuel:  low output months. 
 
Fixed:  industrial, Govt-supplies.  Leaves home (clothg. & household)  
 
 
& exports.  Can't reduce ration 1 yr. after war.  Will put sheets on 
 
 
ration = equivalent 1 coupon p. hd.  Thus increase of 2 wd. be  
 
 
v. little increase. 
 
Supplementaries = 8 p. head over population.  Harder cases. 
 
Propose to go to 32.  Hope 34 in Sept.  But only by reducg. exports. 
 
26.200 allocated:  22.000 realised:  last period.  Next propose 15.000. 
 
Want to announce 32 and
 cut in exports. 
 
P.M. 
Trickle policy for exports wasteful if no hope of keeping the markets. R.S.C. 
Reforms will take time:  will have big results in the end.  With 
 
 
man-power as now we cd. equal pre-war output, thro'  
 
 
modernisation. 
 
Redn of hours is unfortunate. G.A.I. 
Elsewhere hasn't reduced output. R.S.C. 
Hope it mayn't here.  But wage rates assume reduced output. 
 
Industry expects 6.3% reduction. H.M. 
Intolerable tht. industry shd. reduce hours w'out knowledge of Govt. G.A.I. 
5 day wk. brings women back into industry - cuts other way. E.W. 
Any unemployed women in Lancs? 
 
G.A.I. 
No. P.M. 
Pre-war consumption = coupon value. R.S.C. 
No.  And present sale of coupons shows it. A. 
Alarmed at condn of industry. R.S.C. 
Have you read anything about it - e.g. Working Party Rpt. 

 A.B. 
Action v. backward firms?  Can we preserve a non-poisonous attitude. 
 
 
Need for sense of service in people's mind.  Gt. responsibility 
 
 
of this industry - yet unilateral redn of working hours. R.S.C. 
And this was arranged on basis of no increase in output. E.Sh. 
But manning-up involves makg. industries more attractive.  And  
 
 
hours is one of means. 
 
| A.B.                                                                                 | Repercussions.  Other industries will do the same.                         |
|--------------------------------------------------------------------------------------|----------------------------------------------------------------------------|
|                                                                                      | Hence need of wages policy.                                                |
|                                                                                      |                                                                            |
| R.S.C.                                                                               | c.f. luxury part of trade:  2 wks holiday abroad.  Rayon:  37½ hrs. on     |
|                                                                                      |                                                                            |
|                                                                                      |                                                                            |
| E.Sh.                                                                                | Cut their raw materials.                                                   |
|                                                                                      |                                                                            |
| R.S.C.                                                                               | Spinning = v. badly led by old gentlemen.                                  |
|                                                                                      | Trying to get a yarn industry, includg. the younger men.                   |
|                                                                                      | But Unions are as bad - conservative, fragmented.                          |
|                                                                                      | All v. difficult.  Progress is slow.                                       |
|                                                                                      |                                                                            |
| P.M.                                                                                 | No notification to M/L or B/T. tht. hours were to be reduced?              |
|                                                                                      |                                                                            |
| G.A.I.                                                                               | No.                                                                        |
|                                                                                      | Remember man-power short overall by ½ million.  Scramble.                  |
|                                                                                      | Football pools - high wages & touting for labour from factories.           |
|                                                                                      |                                                                            |
| ns                                                                                   |                                                                            |
| for canvassers.                                                                      |                                                                            |
|                                                                                      | Women in textiles:  concentrate on local appeals in textile areas.         |
|                                                                                      |                                                                            |
|                                                                                      |                                                                            |
| R.S.C.                                                                               | Cotton Board have done that.                                               |
|                                                                                      |                                                                            |
| P.M.                                                                                 | Drawing off into unproductive emplt.                                       |
|                                                                                      |                                                                            |
| E.Sh.                                                                                | Against local appeals for cotton.  In Lancs. women equally wanted          |
|                                                                                      |                                                                            |
|                                                                                      |                                                                            |
| R.S.C.                                                                               | 300.000 more in engineering}  than pre-war.                                |
|                                                                                      | 150.000 less in cotton           }                                         |
|                                                                                      | Can't expand engineering any more if we are to have any consumer           |
|                                                                                      |                                                                            |
|                                                                                      | Must have balanced view of dist                                            |
| n                                                                                    |                                                                            |
| of our man power - can't go on                                                       |                                                                            |
|                                                                                      |                                                                            |
|                                                                                      |                                                                            |
| E.Sh.                                                                                | I agree:  consider over-all:  therefore don't take isolated decision       |
|                                                                                      |                                                                            |
|                                                                                      |                                                                            |
| P.M.         /x/ Let us see figures for flow of labour into unproductive industries? |                                                                            |
|                                                                                      |                                                                            |
| H.M.                                                                                 | Need M/L. facilitate f. pools in search for labour.                        |
|                                                                                      | Anyway time to stop the pools.                                             |
|                                                                                      |                                                                            |
| J.                                                                                   | Believe country wd. stand for it.                                          |
|                                                                                      |                                                                            |
| A.B.                                                                                 | a)                                                                         |
| n                                                                                    |                                                                            |
| of man power.                                                                        |                                                                            |
|                                                                                      | Sellers market:  no effective price control.  Industries can reduce hours. |

 
 
Cotton has done it.  Transport trying it.  If we make some indies

|     |     | more attractive, we must say tht. others are attractive enough.    |
|-----|-----|--------------------------------------------------------------------|

                   
b) 
If you have background on a) you might be able to tell the country. H.M. 
Will come up on Econ. Survey. 
 
P.M. 
Take it early in New Year. 
Cotton Exports. P.L. 
Burma not to be forgotten. 
 

|           | C.J.                                                                   | Cut in exports will have serious effects  a) our food  b) disturbance    |
|-----------|------------------------------------------------------------------------|--------------------------------------------------------------------------|
|           |                                                                        | in some overseas areas.                                                  |
|           |                                                                        |                                                                          |
| R.S.C.    | Won't come out in exports until June/Sept.                             |                                                                          |
|           | M'while may be somethg. out of Japan.  And more from India.            |                                                                          |
|           | 1.700 tons for export is all you'd get out of 30 vice  32.  Think some |                                                                          |
|           |                                                                        | relief is essential for home market.                                     |
|           |                                                                        |                                                                          |
| J.S.      | Can M/F. be rep                                                        |                                                                          |
| d         |                                                                        |                                                                          |
| on Cttee. |                                                                        |                                                                          |
|           |                                                                        |                                                                          |
| R.S.C.    | Yes.                                                                   |                                                                          |

 

| H.D.                                                    | Don't resist 32.                                                  |
|---------------------------------------------------------|-------------------------------------------------------------------|
|                                                         | Don't commit ourselves publicly to 34.                            |
|                                                         | Until industry has bucked up.                                     |
|                                                         | For export pos                                                    |
| n                                                       |                                                                   |
| is v. serious.  This is drift twds. rocks.  Whole of    |                                                                   |
|                                                         |                                                                   |
|                                                         | Totally dissent from proposals for de-control.  Canada:  dollars, |
|                                                         |                                                                   |
|                                                         |                                                                   |
| n                                                       |                                                                   |
| therefore and away from soft-currency countries outside |                                                                   |
|                                                         |                                                                   |
|                                                         | Latin America:  a good market:  hard currency food exporter.      |
|                                                         | What I want in alloc                                              |
| n                                                       |                                                                   |
| is 60% to Empire 40% hard currency                      |                                                                   |
|                                                         |                                                                   |

 

P.M. 
Don't be slap-dash.  What of rice in SEA. 

 

| R.S.C.    | And future of export trade.                                      |
|-----------|------------------------------------------------------------------|
|           |                                                                  |
| H.D.      | Restated broad principles.                                       |
|           | Have we done enough to get imports.  France e.g. shd. do better. |
|           |                                                                  |

 
 
tough. R.S.C. 
We have.  Plan might materialise in '48.  Now they have nothing. 
Domestic. 

 J.W. 
Separate domestic ration?  To ease housewives. R.S.C. 
Considered already & rejected. 
Cotton Industry. H.M. 
Govt. shd. have known this was happening. 
 
Hours reduced on basis of reduced output.  Then they ask for  
 
 
increase in price - & get 80% of it. 
 
This brings us up to ques. can we afford to be laissez faire. 
 
Diffy. in honouring coupons.  Tailors can't get cloth for suits. 
 
Despite the export arguments, public won't like 32 + sheets - 
 
 
especially before Xmas. 
 
What did we do for coal.  High-powered campaign to man it up. 
 
Cdn't more be done to put cotton on map. 
 
If we go to H/C. w'out a plan for cotton, we shall be in trouble. 
 
We've done somethg. with bldg. materials etc. 
 
Have we done enough to let public opinion get mobilised v. cotton 
 
 
includg. Trade Union. 
 
P'pone announcement until after 2/1.  M'while get a plan we can 
 
 
announce at same time.  Fr. Wms Cttee cd. look at it. 
 
M/L. shdn't generalise about effect of reduced hours on output. 
 
Announcemt. now means export story will be elicited by Parlt. A.V.A. 
Working Party Rpt.  Scheme announced - with subsidy etc. 
 
Short-term local appeals will cut across long-term plan. 
 
Care in handling long-term p'mme. 
 
New machinery for cotton will need all engineering labour available. 
 
On announcemt.:  let public know the facts.  tho' you cd. wait until 
 
 
after Xmas. 
 
Have drapery trade bn. consulted re working of a 32 basis with sheets. 
 
R.S.C. 
Sheets aren't free:  they have bn. sold additional to docket-holders. 
 
Timing:  Plans for yarn must be made by 1/1.  News will lead, anyway. 
 
Always announced previously in H/C. J. 
Industry shd. be assembled & told effect of reduced hours. R.S.C. 
Done so - 3 times. H.M. 
a) 
Cd. O.R. be made to stop f. pools.  J. to consider. 
 
b) 
Can Fr. Wms Cttee advise on publicity for campaign ….. 


Agreed:  Announce 32 in H/C. on Wednesday. 

              No public commitmt to 34 for next period. 

              Report fr. M/L. on flow to unprodive emplts: 

              a) above:  report from Steering Cttee early in 

              new Year:  also mid-week f'ball matches:  

              also b) above. 


Circulate a Friday p.m. b'cast on F.ball Pools. 

## 4. India.

 

| P.L.                                                    | Spkg. in H/Lds. to-day.                                               |
|---------------------------------------------------------|-----------------------------------------------------------------------|
|                                                         |                                                                       |
| A.V.A.                                                  | Concerned.  P'gress in Constit. Assembly:  not def. news.             |
|                                                         | Believe P.L. will be cross-examined to-day as I was by W.S.C.         |
|                                                         | Diff. to hold the position.                                           |
|                                                         | What is to be said of validity of this                                |
| Constituent Assembly.                                   |                                                                       |
|                                                         | And Nehru's speech?                                                   |
|                                                         |                                                                       |
| P.L.                                                    | Shall say this was reply to W.S.C.'s provocative speech in H/C.       |
|                                                         |                                                                       |
| R.S.C.                                                  | Private inform                                                        |
| n                                                       |                                                                       |
| from India.  Congress upset by ref                      |                                                                       |
| ce                                                      |                                                                       |
| to Fed. Ct.                                             |                                                                       |
|                                                         |                                                                       |
| n                                                       |                                                                       |
| tht. we proposed that.  Wd. help if we made it clear we |                                                                       |
|                                                         |                                                                       |
| n                                                       |                                                                       |
| .  Rach…. believes if we did we cd.                     |                                                                       |
|                                                         |                                                                       |
|                                                         | Cd. P.L. make it clear we stand by our interp                         |
| n                                                       |                                                                       |
| .  They can take it to                                  |                                                                       |
|                                                         |                                                                       |
|                                                         |                                                                       |
| P.L.                                                    | The Ct. have said they won't adjudicate unless parties say in advance |
|                                                         |                                                                       |
|                                                         |                                                                       |
|                                                         |                                                                       |
| R.S.C.                                                  | Second point by R.  Province shd. adopt the constitution & have       |
|                                                         |                                                                       |
|                                                         | We were not v. that:  only v?  [Province having right to opt out      |
|                                                         |                                                                       |
| n                                                       |                                                                       |
| ]                                                       |                                                                       |
|                                                         |                                                                       |
| A.V.A.                                                  | We've said we wdn't alter scheme of 16/5 save by agreemt. of both     |
|                                                         |                                                                       |
|                                                         |                                                                       |
|                                                         |                                                                       |
| R.S.C.                                                  | That's logical.  But this is our diffy - they are bargaining for pos  |
| n                                                       |                                                                       |
| .                                                       |                                                                       |

C.M. 107(46).  
 
 
19th December, 1946. 

1. 

Parliament. 

[Enter  W.W. 

 

H.M. 
Business for next week. 
 

 

## 2. Burma.

 P.M. 
Outlined situation of Burma in reln to Asia and India. 
 
Are we ready to stand firm.  Advised, if they don't come here for 
 
 
discns, there will be breakdown of Govt. & strikes - & situation in  
 
 
wh. we can govern only by troops.  Bulk of troops in Burma are  
 
 
Indian - whom we cdn't use.  B. troops:  2.000 in all, w'out  
 
 
adminve troops.  Despatch of a second B. Brigade wd. involve 
 
 
either w'drawal fr. India or retarding demobn. 
 
 
Cdn't hold all Burma:  cdn't do more than Rangoon & one or 
 
 
two key points.  Might in end have to face re-conquest of  
 
 
Burma:  2 Divns:  cdn't be found w'out weakening ourselves 
 
 
elsewhere. 
 
Aung San's draft statement.  Burma for Burmans - no repn for 
 
 
Europeans, posn of Indians not clear.  Also claim theirs shd. 
 
 
be recognised as constitutional Govt. - can't do that entirely until 
 
 
law amended. 
 
Summed up alternatives. 
 
Govr. believes Aung San etc., wd. wish to remain in Commonwealth. 
 
 
They need our help, financial & other, in reconstn. 
 
Strength of their posn for rebellion, short-term, because of need of 
 
 
their rice in S.E.A. 

 
Long-term they can't defend themselves v. Indian imperialism 

|         |                                                   |
|---------|---------------------------------------------------|
|         | C.I.G.S. & C.A.S. confirm can't fight w'out admin |
| ve      |                                                   |
| troops. |                                                   |

 
G.O.C. Burma has sent appreciation & agrees with Govr. 

|     |     | (C.M. 106(46)).    |
|-----|-----|--------------------|

 A.V.A. 
Govr's conversations with Aung San etc., have undermined our  

|        |                                                                       | earlier decision to give no assurances in advance.               |
|--------|-----------------------------------------------------------------------|------------------------------------------------------------------|
|        | Parallel statement to India.                                          |                                                                  |
|        |                                                                       |                                                                  |
| R.S.C. | Statement of 1931 re Burma:  prospects of Burma will not be           |                                                                  |
|        |                                                                       | prejudiced by its separation from India.  This gives a claim     |
|        |                                                                       | to parallel advance.                                             |
|        |                                                                       |                                                                  |
| J.S.   | Burma is vital for food, at present.  Can't face rebellion, which wd. |                                                                  |
|        |                                                                       | cut off food supplies.  Expect 1½ m. tons of rice from Burma     |
|        |                                                                       | next year.  That, with Siam, wd. affect whole world situation in |
|        |                                                                       | food - since rice re-acts on cereals.                            |
|                                                      | A.B.                                                                   | We have declared tht. Burma shall achieve self-govt. pari passer    |
|------------------------------------------------------|------------------------------------------------------------------------|---------------------------------------------------------------------|
|                                                      |                                                                        | with India.  Aren't going back on that.  Want therefore to find     |
|                                                      | means of dignified w'drawal.  Aung San is friendly to us: & all        |                                                                     |
|                                                      | he wants is re-declaration of earlier pledges.  Possibly in less       |                                                                     |
|                                                      |                                                                        | equivocal terms:  natural, with view to strengthening his pos       |
| n                                                    |                                                                        |                                                                     |
| .                                                    |                                                                        |                                                                     |
|                                                      |                                                                        | But if he is friendly, why not strengthen him?                      |
|                                                      | Alternative:  offend Aung San & drive Burma further Left:  & make      |                                                                     |
|                                                      | it more diff. for us to make dignified w'drawal.                       |                                                                     |
|                                                      |                                                                        |                                                                     |
| R.S.C.                                               | Difficult difference:  they are not rep                                |                                                                     |
| ve                                                   |                                                                        |                                                                     |
| Govt. as are India & want to                         |                                                                        |                                                                     |
|                                                      | be recognised as national Govt.                                        |                                                                     |
|                                                      |                                                                        |                                                                     |
| C.J.                                                 | Endorse P,M,'s views.                                                  |                                                                     |
|                                                      | Assume this is Burma proper & doesn't cover Shan States.               |                                                                     |
|                                                      | Repercussions in Ceylon.  Shall have to submit memo. on this.          |                                                                     |
|                                                      |                                                                        |                                                                     |
| P.M.                                                 | Ceylon, like India, has 2 communities.                                 |                                                                     |
|                                                      |                                                                        |                                                                     |
|                                                      | Agreed.                                                                | { Inform Opposition in advance.                                     |
|                                                      |                                                                        |                                                                     |
|                                                      |                                                                        | on I. & B. Cttee.                                                   |
|                                                      | Consultation with Opposition.                                          |                                                                     |
|                                                      |                                                                        |                                                                     |
| H.D.                                                 | Inform:  don't consult.                                                |                                                                     |
|                                                      |                                                                        |                                                                     |
| A.B.                                                 | Any consult                                                            |                                                                     |
| n                                                    |                                                                        |                                                                     |
| or talk:  may do more harm with Govt. back-benchers. |                                                                        |                                                                     |
|                                                      | Never bn. done until recently.                                         |                                                                     |
|                                                      |                                                                        |                                                                     |
| P.M.                                                 | No:  on defence especially, precedents going far back.  Give chance to |                                                                     |
|                                                      | warn them that saying this or that will affect national interests.     |                                                                     |
|                                                      | Give chance for responsible reply.                                     |                                                                     |
|                                                      | General agreement with this view.                                      |                                                                     |
|                                                      |                                                                        |                                                                     |

## 3. India:  Compensation For S. Of S. Services.

 P.M. 
Sending out Henderson & officials to discuss. 
 
Not matter for public statement. 

                                                [Enter  G.T. and L.S. 
4. 
Town and Country Planning Bill. J. 
Re-drafted.  This is agreed with Dpts. 
 
This involves delay because before scheme can be laid all  
 
 
valuations must be obtained first. P.M. 
Postpones our headaches.  Cl. 51 is v. vague …. such, such, such. 
 
This will be point of criticism. 
 
Also scheme, when it comes, must be approved & rejected as a whole.
 
 
| H.M.                                                  | That is inherent in the scheme, as I said last time.                   |
|-------------------------------------------------------|------------------------------------------------------------------------|
|                                                       | We are taking blank cheque - on principles, method, machinery etc.     |
|                                                       | Consider wtr. because this is money the aff. resol                     |
| n                                                     |                                                                        |
| shd. be H/C. only.                                    |                                                                        |
|                                                       |                                                                        |
| J.                                                    | Agreed:  no obj                                                        |
| n                                                     |                                                                        |
| .                                                     |                                                                        |
|                                                       |                                                                        |
| R.S.C.                                                | But H/Lds. delay over these Reg                                        |
| ns                                                    |                                                                        |
| wd. only p'pone payment for what                      |                                                                        |
|                                                       |                                                                        |
|                                                       |                                                                        |
| n                                                     |                                                                        |
| ?                                                     |                                                                        |
|                                                       |                                                                        |
| A.B.                                                  | Parlt. hasn't interested itself in distrib                             |
| n                                                     |                                                                        |
| of £66 m. to doctors.                                 |                                                                        |
|                                                       |                                                                        |
| P.M.                                                  | Not a parallel because B.M.A. (not Govt. as here) divides the global   |
|                                                       |                                                                        |
|                                                       |                                                                        |
| H.D.                                                  | Global sum.  Consulted T.C.P.  Can't arrive at a figure on detailed    |
|                                                       |                                                                        |
| n                                                     |                                                                        |
| .  "Think of a number."  We jointly recommend £300 m. |                                                                        |
|                                                       |                                                                        |
| n                                                     |                                                                        |
| ,  a) special paymts. in w. damage cases              |                                                                        |
|                                                       |                                                                        |
|                                                       | c) land dead ripe on introd                                            |
| n                                                     |                                                                        |
| of Bill - remove fr. comp                             |                                                                        |
| n                                                     |                                                                        |
| field if                                              |                                                                        |
|                                                       | developed w'in 5 years.                                                |
|                                                       | Payment (mainly) by Ty. stock.                                         |
|                                                       |                                                                        |
| P.M.                                                  | Shd. it be called "compensation"?                                      |
|                                                       |                                                                        |
| R.S.C.                                                | "Payment" wd. be better.      Agreed                                   |
| substitute "payment" in Bill.                         |                                                                        |
|                                                       |                                                                        |
| H.M.                                                  | Made the golf club point.  Why shd. they be paid?                      |
|                                                       |                                                                        |
| R.S.C.                                                | Might be taken for bldg.                                               |
|                                                       | £300 m.  If to be paid in Stock, shdn't it be so declared in Cl. 52.   |
|                                                       |                                                                        |
|                                                       |                                                                        |
| J.                                                    | Covered by Cl. 56(1).                                                  |
|                                                       |                                                                        |
| L.S.                                                  | Case rests on claim that this is ex gratia payment - not compensation. |
|                                                       | Believe it can be defended.                                            |
|                                                       |                                                                        |
| H.M.                                                  | Time limit w'in which payment must be settled?                         |
|                                                       |                                                                        |
| R.S.C.                                                | Interim payments cd. be provided for.                                  |
|                                                       |                                                                        |
| H.D.                                                  | Favoured 5 year limit.                                                 |
|                                                       |                                                                        |
| H.M.                                                  | Valuer must be asked if he cd. do it in the time.                      |
|                                                       |                                                                        |
| R.S.C.                                                | Can say "not for 5 years":  can't say "not more than 5 years".         |
|                                                       |                                                                        |
| H.D.                                                  | That was my point.                                                     |
|                                                       |                                                                        |
| H.M.                                  | Not mine.                                                               |
|---------------------------------------|-------------------------------------------------------------------------|
|                                       |                                                                         |
| J.                                    | "Payments shall be due 5 years after appt                               |
| d                                     |                                                                         |
| day."    }                            |                                                                         |
|                                       | If you can't do it, then amending leg                                   |
| n                                     |                                                                         |
| .                    }   Agreed.      |                                                                         |
|                                       |                                                                         |
|                                       |                                                                         |
| L.S.                                  | Co. Councils as planning auth                                           |
| ies                                   |                                                                         |
| shd. have power in last resort to buy |                                                                         |
|                                       |                                                                         |
| ee                                    |                                                                         |
| .                                     |                                                                         |
|                                       |                                                                         |
|                                       |                                                                         |
|                                       |                                                                         |
|                                       |                                                                         |
| 5.                                    | Electricity Bill.                                                       |
|                                       |                                                                         |
| P.M.                                  | (i)                                                                     |
|                                       |                                                                         |
| J.G.                                  | a)                                                                      |
|                                       |                                                                         |
| ve                                    |                                                                         |
| devolution to                         |                                                                         |
|                                       |                                                                         |
|                                       | b)                                                                      |
|                                       |                                                                         |
| E.Sh.                                 | Serves interest of people of N. Wales.                                  |
|                                       | Must get load right - balance urban & rural areas.                      |
|                                       | In S. Wales congestion - heavy load.  Also in N. Wales.  But in         |
|                                       |                                                                         |
|                                       | Technical:  systems must be linked & transm                             |
| n                                     |                                                                         |
| lines must run thro'                  |                                                                         |
|                                       |                                                                         |
|                                       |                                                                         |
|                                       | Follows earlier Rpts.                                                   |
|                                       |                                                                         |
| T.W.                                  | Don't divide urban & rural so as to rob rural of cheap electricity -    |
|                                       |                                                                         |
|                                       |                                                                         |
| A.B.                                  | No need for technical mutilation of current.  What we are discussing    |
|                                       |                                                                         |
| ve                                    |                                                                         |
| unit.                                 |                                                                         |
|                                       | c.f. hospitals:  Welsh Area tho' hpl. is natural outlet for N. Wales.   |
|                                       |                                                                         |
| E.Sh.                                 | Concession here wd. revive l.a. claim to separate adm                   |
| n                                     |                                                                         |
| for each                              |                                                                         |
|                                       |                                                                         |
|                                       | Effect of change wd. be to increase charges in Wales.                   |
|                                       | Wales as an entity for electricity is obviously wrong - &               |
|                                       |                                                                         |
|                                       |                                                                         |
| H.M.                                  | Wales as an entity wd. suffer on load factor.                           |
|                                       | Health Bill not fatal analogy.  The Advisory Cttee is linked to the Bd. |
|                                       |                                                                         |
|                                       | Cd. E.Sh. consider wtr. it is necessary to split Cardigan?              |
|                                       |                                                                         |

                 (ii) Area Boards:  Composition. 
 
  


E.Sh. 
Explained the compromise. 

 
H.M. 
I wd. have preferred fewer full-time members. 
 
But won't disturb the compromise. 
 
Amendment of Cl. 3(3). 


E.Sh. undertook to consider. J.             (iii) Appeal.

   Amendment of Cl. 27(3).     Approved. R.S.C. 
Cl. 1(6)(c).   Why? 
 

|        | E.Sh.                                                                | Considered in Cttee.  Thght. Coal Bd. might sell coal to Bd. at lower    |
|--------|----------------------------------------------------------------------|--------------------------------------------------------------------------|
|        |                                                                      | rate.  "Undue" shd. be safeguard.                                        |
|        |                                                                      |                                                                          |
| R.S.C. | May produce excessive rigidity.  May prejudice economic planning.    |                                                                          |
|        | May be desirable e.g. in developmt. areas.                           |                                                                          |
|        | "undue preference" has special meaning from Rlway Rates Tribunal.    |                                                                          |
|        |                                                                      |                                                                          |
| E.Sh.  | Trouble over this ques. on Coal Bill - incldg. fr. Govt. supporters. |                                                                          |

 

H.D. 
Omit now:  if pressed in Cttee we can consider what words to insert. 

 J. 
Say "unjustified" vice "undue"? 

 R.S.C. 
Leave it in & insert proviso safeguarding planning. 


Agreed:  E.Sh. to consider. E.Sh. 
Clause 21.  Electricity in relief of rates:  or surpluses ploughed back 
 
 
to reduce rates of electricity.  Second complain they shd. not 
 
 
suffer by comparison with first. 
 
Cttee struck it out. 
 
Shall have trouble in H/C.  Want some latitude. 
 
Transport Bill doesn't provide for it.  But can't be bound to apply 
 
 
same provns if circs. differ. 
 
Latitude:  prs. £½  m. total in extra compn. P.M. 
Strong objn to compensatg. first vice second. B. 
Another point:  if you provide here for capital paymts I may have to do 
 
so in Transport Bill. 
E.Sh. 
Clause 42.  Mtgs. with organns in industry (many, even in workers' 
 
 
side).  Workers have raised ques. of consultn with workers. 
 
In Coal Bill we've provided it at all levels;   & used "consultn." 
 
Here, followg. Transport Bill, we've said "discussion". 
 
Wd. like to use "consultn". 
|                          |                         | B.                                                           | What I've done is to distinguish language for a. welfare and b. wages.    |
|--------------------------|-------------------------|--------------------------------------------------------------|---------------------------------------------------------------------------|
|                          |                         |                                                              | Agreed - "consult                                                         |
| n"                       |                         |                                                              |                                                                           |
| in both Bills.           |                         |                                                              |                                                                           |
|                          |                         |                                                              |                                                                           |
| H.D.                     | Will E.Sh. look at prov |                                                              |                                                                           |
| n                        |                         |                                                              |                                                                           |
| requiring dissol         |                         |                                                              |                                                                           |
| n                        |                         |                                                              |                                                                           |
| of cos. at resting date. |                         |                                                              |                                                                           |
|                          |                         | Some have foreign assets.  Take a power to p'pone in special |                                                                           |
|                          |                         | cases.  As in Transpt. Bill.                                 |                                                                           |
|                          |                         |                                                              |                                                                           |
|                          |                         |                                                              |                                                                           |
| c                        |                         |                                                              |                                                                           |
| Neil                     |                         |                                                              |                                                                           |
|                          |                         |                                                              |                                                                           |

6. 
Shipping Policy. 

 P.M. 
Refer this to L.P. Cttee. 


Agreed. 

7. 
Palestine:  Arrest of Ships on High Seas. 

 H. 
Don't press it now. J. 
W.E.B. didn't say it was legal - only tht. this was best ground to  
 
 
defend it. C.J. 
Must accept this & try other means.  E.g. cuttg. off cash from U.S.A. 
 
 
E.B. has spoken to Byrnes.  Press Jews not to do it. 
 
No more pro tem.    

 

 P.M. 
Welcomed E.B. - from U.S.A. 


C.E. -     ..    hospital. 
 

 
India.

| P.M.                                                       | Memo. gives results of consult                                            |
|------------------------------------------------------------|---------------------------------------------------------------------------|
| ns                                                         |                                                                           |
| with W.                                                    |                                                                           |
|                                                            | Subject to hopes of Muslim collab                                         |
| n                                                          |                                                                           |
| in Constituent Assembly                                    |                                                                           |
|                                                            | But m'while B. admin                                                      |
| n                                                          |                                                                           |
| in India threatened with b'down.  Goes back                |                                                                           |
|                                                            |                                                                           |
| n                                                          |                                                                           |
| & beginning of Indianisation - handing over                |                                                                           |
|                                                            |                                                                           |
|                                                            |                                                                           |
|                                                            |                                                                           |
|                                                            |                                                                           |
|                                                            |                                                                           |
|                                                            |                                                                           |
| n                                                          |                                                                           |
| of Indian Army uncertain when communal diff                |                                                                           |
| ces                                                        |                                                                           |
| appear.                                                    |                                                                           |
|                                                            | Hence W.'s view = B. admin                                                |
| n                                                          |                                                                           |
| can't continue beyond March '48.                           |                                                                           |
|                                                            |                                                                           |
|                                                            |                                                                           |
|                                                            |                                                                           |
|                                                            |                                                                           |
|                                                            |                                                                           |
|                                                            | W. thinks too much in terms of phased military operation of w'drawal.     |
|                                                            | He also ignored our oblig                                                 |
| ns                                                         |                                                                           |
| under G. of India Act.                                     |                                                                           |
|                                                            | Concl                                                                     |
| n                                                          |                                                                           |
| :  statement in Parlt. as soon as clear tht. Muslims won't |                                                                           |
|                                                            |                                                                           |
|                                                            |                                                                           |
|                                                            | Diffies - a) Paramountcy.  Congress want surrender to G/India.  We        |
|                                                            |                                                                           |
|                                                            | A.V.A.'s alternative:  more elbow-room, but askg. Parlt. for blank        |
|                                                            |                                                                           |
|                                                            |                                                                           |
| n                                                          |                                                                           |
| in '47 if we aren't going to carry on.                     |                                                                           |
|                                                            |                                                                           |
|                                                            |                                                                           |
| P.L.                                                       | Provincial Services.  Major ones under S. of S. services.  Can't dispense |
|                                                            |                                                                           |
| n                                                          |                                                                           |
| .                                                          |                                                                           |
|                                                            |                                                                           |
| P.M.                                                       | Nos. aren't great - I.C.S. and Police.                                    |
|                                                            |                                                                           |
| P.L.                                                       | Total 2.000, 50% Indians.  500 I.C.S. and 500 Police =                    |
|                                                            |                                                                           |
|                                                            |                                                                           |
| R.S.C.                                                     | Vital need is to precipitate agreement.  A near & definite date is        |
|                                                            |                                                                           |
|                                                            |                                                                           |
|                                                            |                                                                           |
|                                                            |                                                                           |
|                                                                 |                                                                          | Share W.'s view tht. we can't for long deal with any major trouble in    |
|-----------------------------------------------------------------|--------------------------------------------------------------------------|--------------------------------------------------------------------------|
|                                                                 |                                                                          | India because of run-down of B. admin                                    |
| n                                                               |                                                                          |                                                                          |
| .                                                               |                                                                          |                                                                          |
|                                                                 |                                                                          |                                                                          |
| A.V.A.                                                          | Resolution of Parlt. required.  The more detail you include in yr.       |                                                                          |
|                                                                 |                                                                          | statement the more hampered you will be in handling fluid                |
|                                                                 |                                                                          | situation.                                                               |
|                                                                 | W.S.C.'s x-exam                                                          |                                                                          |
| n                                                               |                                                                          |                                                                          |
| on 14/12.  In para. 12 you commit us to view tht.               |                                                                          |                                                                          |
|                                                                 |                                                                          | Constituent Assembly work not valid if Muslims not included -            |
|                                                                 |                                                                          | that might produce early trouble in India because wd. encourage          |
|                                                                 |                                                                          | Muslims not to come in.  May therefore not secure our main               |
|                                                                 |                                                                          | object of promoting collaboration.                                       |
|                                                                 |                                                                          |                                                                          |
| A.B.                                                            | Genl. agreemt. in Cabinet re policy:  & fixing date as a lever.          |                                                                          |
|                                                                 | Concerned about the form.  This is historic act - & appears we are       |                                                                          |
|                                                                 |                                                                          | being forced into it.  In fact, failure to collaborate reflects on       |
|                                                                 |                                                                          | them:  credit to us.  Means they are too weak to take it:  not tht.      |
|                                                                 |                                                                          | we are to weak to hold it.                                               |
|                                                                 | Preamble therefore requ                                                  |                                                                          |
| d                                                               |                                                                          |                                                                          |
| - Indian policy - abrogation of imperialism.                    |                                                                          |                                                                          |
|                                                                 |                                                                          | Rest to be incidental.                                                   |
|                                                                 | This draft will invite criticism tht. we are liquidating Empire.         |                                                                          |
|                                                                 |                                                                          |                                                                          |
| A.                                                              | Wasn't wholly convinced by W.'s arguments.                               |                                                                          |
|                                                                 | He thght of it as military op                                            |                                                                          |
| n                                                               |                                                                          |                                                                          |
| of w'drawal - & overlooked political                            |                                                                          |                                                                          |
|                                                                 |                                                                          | consid                                                                   |
| ns                                                              |                                                                          |                                                                          |
| wh. we as Govt. must keep in mind.                              |                                                                          |                                                                          |
|                                                                 | These cons                                                               |                                                                          |
| ns                                                              |                                                                          |                                                                          |
| must govern us - a) we mustn't allow it to appear we are        |                                                                          |                                                                          |
|                                                                 |                                                                          | being pushed out.  Must get credit for our action.                       |
|                                                                 |                                                                          | b) Minorities.  How can we secure safeguards for them?                   |
|                                                                 |                                                                          | c) Shdn't commit ourselves to w'drawing March '48 whatever               |
|                                                                 |                                                                          | happens - even if India then in chaos.  c.f. My memo. to                 |
|                                                                 |                                                                          | I & B. Cttee.                                                            |
|                                                                 | On this account prefer A.V.A.'s alternative.                             |                                                                          |
|                                                                 |                                                                          |                                                                          |
| P.M.                                                            | Your (c) is contrary to whole basis of policy.                           |                                                                          |
|                                                                 | Must then re-create Services on basis of remaining.                      |                                                                          |
|                                                                 |                                                                          |                                                                          |
| T.W.                                                            | Para. 10.  Govt's in plural.  Wdn't this stiffen Muslims in holding out. |                                                                          |
|                                                                 |                                                                          |                                                                          |
| R.S.C.                                                          | Doesn't go beyond statement of Dec. 6                                    |                                                                          |
| th                                                              |                                                                          |                                                                          |
| .                                                               |                                                                          |                                                                          |
|                                                                 |                                                                          |                                                                          |
| E.W.                                                            | A.V.'s draft preferable because encouraging Hindus.                      |                                                                          |
|                                                                 |                                                                          |                                                                          |
| R.S.C.                                                          | My obj                                                                   |                                                                          |
| n                                                               |                                                                          |                                                                          |
| to A.V.'s draft is tht. Parlt. unlikely to give such latitude - |                                                                          |                                                                          |
|                                                                 |                                                                          | unprecedented form.                                                      |
|                                                                 | Statement + approval = vaguer & more likely to get by Parlt. than        |                                                                          |
|                                                                 |                                                                          | askg. Parlt. to tie themselves to specific resolution.                   |
|                                                                 |                                                                          |                                                                          |
| A.                                                              | My point c) wd. be met if made clear we shall hand over only to Govts.   |                                                                          |
|                                                                 |                                                                          |                                                                          |

 

|                                           | J.S.                                                                     | Detailed & specific form of P.M.'s likely to have greater impact in    |
|-------------------------------------------|--------------------------------------------------------------------------|------------------------------------------------------------------------|
|                                           |                                                                          | India & more likely therefore to bring Parties together.  Also to      |
|                                           |                                                                          | make for better rel                                                    |
| ns                                        |                                                                          |                                                                        |
| betwn. U.K. and Govts of India in future. |                                                                          |                                                                        |
|                                           | Wdn't it be well to make it at once.                                     |                                                                        |
|                                           |                                                                          |                                                                        |
| R.S.C.                                    | No.  Many members of Muslim League dissatisf                             |                                                                        |
| d                                         |                                                                          |                                                                        |
| with Jinnah's                             |                                                                          |                                                                        |
|                                           |                                                                          | attitude.                                                              |
|                                           | Worth waiting to see if they will come in.                               |                                                                        |
|                                           |                                                                          |                                                                        |
| A.B.                                      | Earlier publ                                                             |                                                                        |
| n                                         |                                                                          |                                                                        |
| wd. strengthen our pos                    |                                                                          |                                                                        |
| n                                         |                                                                          |                                                                        |
| .  Attempt to create unity to             |                                                                          |                                                                        |
|                                           |                                                                          | enable us to leave.                                                    |
|                                           |                                                                          |                                                                        |
| R.S.C.                                    | Can't do it until Parlt. meets.  And don't expect longer delay than that |                                                                        |
|                                           |                                                                          | on our proposal.                                                       |
|                                           |                                                                          |                                                                        |
| A.V.A.                                    | Various poss. developmts. in next few wks.                               |                                                                        |
|                                           |                                                                          |                                                                        |
| A.B.                                      | Is it necessary to wait for Parlt.  c.f. Treaties.  We shdn't lose the   |                                                                        |
|                                           |                                                                          | initiative.                                                            |
|                                           |                                                                          |                                                                        |
| H.M.                                      | Genl. agreemt. with P.M.'s memo.                                         |                                                                        |
|                                           | But is it wise to wait for break in India.                               |                                                                        |
|                                           | Statement shd. begin by re-capitulating B. attitude twds. India's        |                                                                        |
|                                           |                                                                          | development twds. self-govt. - bringing in earlier Govts. - time       |
|                                           |                                                                          | for action now arrived - indecision can't continue.  Must give         |
|                                           |                                                                          | definite date.  Cd. say, however, a) Indians must demonstrate          |
|                                           |                                                                          | their capacity to govern.  b) minorities must be safeguarded.  To      |
|                                           |                                                                          | meet 2 of A.'s point.  Then go on with specific points in P.M.'s       |
|                                           |                                                                          | Annex.                                                                 |
|                                           |                                                                          |                                                                        |
|                                           | A.V.'s alternative avoids no diff                                        |                                                                        |
| ies                                       |                                                                          |                                                                        |
| .  For mover of Resol                     |                                                                          |                                                                        |
| n                                         |                                                                          |                                                                        |
| wd. have to                               |                                                                          |                                                                        |
|                                           |                                                                          | be as specific as Annex.                                               |
|                                           | Earlier statement of these lines might help to avert a break in India.   |                                                                        |
|                                           |                                                                          | If the clash occurs, time will be requ                                 |
| d                                         |                                                                          |                                                                        |
| to overcome it.                           |                                                                          |                                                                        |
|                                           | Call the House earlier - for 2 days on India.                            |                                                                        |
|                                           | Motion approving statement shd., if possible, give some sanction for     |                                                                        |
|                                           |                                                                          | irregular                                                              |
| ies                                       |                                                                          |                                                                        |
| .                                         |                                                                          |                                                                        |
|                                           |                                                                          |                                                                        |
| P.M.                                      | Mustn't drive India out of Commonwealth by what is said.                 |                                                                        |
|                                           |                                                                          |                                                                        |
| J.                                        | Timing.  Repercussions on Burma, Palestine, Egypt.                       |                                                                        |
|                                           | Statement tht. we will hand over to "one or more" auth                   |                                                                        |
| ies                                       |                                                                          |                                                                        |
| might                                     |                                                                          |                                                                        |
|                                           |                                                                          | encourage both Parties to wait & see.  Pref. to limit this to          |
|                                           |                                                                          | saying time has come to hand over to Indians:  shall clear out by      |
|                                           |                                                                          | set date:  call on Indians to make ready to take on.  Reserve to a     |
|                                           |                                                                          | later statement to whom you will hand over.                            |
|                                           |                                                                          |                                                                        |
| E.B.                                      | This wd. involve liquid                                                  |                                                                        |
| n                                         |                                                                          |                                                                        |
| of B. Empire.                             |                                                                          |                                                                        |
|                                           | How cd. you hold M/East if you did this?                                 |                                                                        |
|                                           | Egypt is throwing over Treaty.                                           |                                                                        |
|                                                             | Bold statement in this form wd. do untold harm.                         |
|-------------------------------------------------------------|-------------------------------------------------------------------------|
|                                                             | Thought W. was too defeatist.                                           |
|                                                             | Present                                                                 |
| n                                                           |                                                                         |
| - agree with A.B. & H.M. re preamble etc.  Also call attent |                                                                         |
| n                                                           |                                                                         |
|                                                             |                                                                         |
| ns                                                          |                                                                         |
| as threat to world peace.  This wdn't help us if            |                                                                         |
|                                                             |                                                                         |
|                                                             | Paras. 5-6.  Once you fix the date you're comm                          |
| d                                                           |                                                                         |
| .  Prefer "necessary                                        |                                                                         |
|                                                             |                                                                         |
| y                                                           |                                                                         |
| who                                                         |                                                                         |
|                                                             |                                                                         |
|                                                             | Don't like references to "one or more" auth                             |
| ies                                                         |                                                                         |
| - encouragement to                                          |                                                                         |
|                                                             |                                                                         |
|                                                             |                                                                         |
|                                                             | March '48 is a v. early date.  Surely we can get people to go to India. |
|                                                             |                                                                         |
| st                                                          |                                                                         |
| 5 years.                                                    |                                                                         |
|                                                             | Egypt - we said 1949.  Yet for India we propose Mar. '48.               |
|                                                             | Re-actions on Malaya & Burma.                                           |
|                                                             | We are throwing away the Empire because of one man's pessimism.         |
|                                                             |                                                                         |
| P.M.                                                        | After consult                                                           |
| n                                                           |                                                                         |
| with his civil advisers.                                    |                                                                         |
|                                                             |                                                                         |
| E.B.                                                        | Why can't we keep dates in our own hands.                               |
|                                                             | Doubt competence of Indians to govern that great Sub-Continent.         |
|                                                             | Some parts of India may invite us to stay.                              |
|                                                             |                                                                         |
| P.M.                                                        | We haven't the power to rule India.                                     |
|                                                             | Can only rule thro' Indians.                                            |
|                                                             | So long as they think we'll stay, they won't collaborate.               |
|                                                             | Nothing new in statement tht. we're going to hand over to Indians.      |
|                                                             |                                                                         |
|                                                             |                                                                         |
| E.Sh.                                                       | Not certain tht. this decl                                              |
| n                                                           |                                                                         |
| will bring Parties together.                                |                                                                         |
|                                                             | If, on other hand, we say we aren't going until a Govt. arises to which |
|                                                             |                                                                         |
|                                                             | Was always our policy not to go until auth                              |
| y                                                           |                                                                         |
| to wh. we cd. hand over.                                    |                                                                         |
|                                                             |                                                                         |
|                                                             | Repercussions.  Shdn't hurry unduly our w'drawal.  This is scuttle      |

 
 
with no dignity. 
 
How will you hold India?  You cd. say the same about M/East.  You 
 
 
can't scuttle everywhere, w'out losing our standard of living. 

|                                              |
|----------------------------------------------|
| n                                            |
| :  surely we cd. provide them for 2/3 years. |

 H.M. 
Where from? R.S.C. 
If we made E.Sh. statement, all Govts. wd. resign in Indian Provinces. E.Sh. 
But how can we justify to world opinion leaving w'out seeing that 

|           |
|-----------|
| y         |
| is there. |

 

| R.S.C.                 | The object of this policy is to secure creation of best auth        |
|------------------------|---------------------------------------------------------------------|
| y                      |                                                                     |
| to hand                |                                                                     |
|                        |                                                                     |
|                        | Alternative:  degeneration into chaos.                              |
|                        | Too late to go back to autocratic rule.                             |
|                        |                                                                     |
| C.E.                   | After 200 years in India we must take some responsibility for cond  |
| n                      |                                                                     |
|                        |                                                                     |
|                        | But B. opinion won't tolerate re-mobilisation to hold India down.   |
|                        |                                                                     |
|                        | Some statement on these lines must be made:  and some date must     |
|                        |                                                                     |
|                        |                                                                     |
|                        |                                                                     |
| C.J.                   | Repercussions may be.  But our policy is declared & we can't go     |
|                        |                                                                     |
|                        | If so, alternatives:  linger on, in degenerating cond               |
| ns                     |                                                                     |
|                        |                                                                     |
|                        | Present                                                             |
| n                      |                                                                     |
| - as by A.B. & H.M.    |                                                                     |
|                        |                                                                     |
| A.G.                   | Support (on balance) P.M.'s recomm                                  |
| ns                     |                                                                     |
| .                      |                                                                     |
|                        |                                                                     |
| G.A.I.                 | Support P.M. - with modif                                           |
| ns                     |                                                                     |
| proposed by A.B & H.M. |                                                                     |
|                        | Will assist our man-power planning.                                 |
|                        |                                                                     |
| T.W.                   | Agreed.                                                             |
|                        |                                                                     |
| L.                     | Agreed.                                                             |
|                        | By-pass H/Lds.  Hence prefer P.M. method vice A.V.A.'s.             |
|                        |                                                                     |
| J.S.                   | Agreed.  No need to be unduly pessimistic re future.                |
|                        |                                                                     |
| A.                     | Bring Doms. into our confidence at early stage - after statement is |
|                        |                                                                     |
|                        |                                                                     |
| P.M.                   | Believe a) shd. be made in Parlt.  b) shd. await Muslim decision.   |
|                        |                                                                     |
|                        |                                                                     |
|                        |                                                                     |
|                        |                                                                     |
|                        |                                                                     |
|                        |                                                                     |
|                        |                                                                     |
|                        |                                                                     |