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Page 1: (c) crown copyright Catalogue Reference:CAB/23/75 Image ...filestore.nationalarchives.gov.uk/pdfs/small/cab-23-75-cc-22-33-22.pdf · Item 2. - ANGLO-SOVIET RELATIONS. (Reference Cabinet

(c) crown copyright

Catalogue Reference:CAB/23/75 Image Reference:0022

Page 2: (c) crown copyright Catalogue Reference:CAB/23/75 Image ...filestore.nationalarchives.gov.uk/pdfs/small/cab-23-75-cc-22-33-22.pdf · Item 2. - ANGLO-SOVIET RELATIONS. (Reference Cabinet

DOCUMENT IS THE PROPERTY OP HIS BRITANNIC MAJESTY^ GOVERNMENT)".

COPY NO. ZZ

C A B I N E T SS ( 33) .

Meet ing of the Cabinet to be he ld at 10 Downing S t r e e t , S .W.1 , on WEDNESDAY, March 29th,

1933, a t 11,0 a.m.

AGENDA.

1. REDUCTION AND LIMITATION OP ARMAMENTS: THE ROME AND PARIS CONVERSATIONS. - I f r e q u i r e d .

(Re f e rence Cabinet 2 0 ( 3 3 ) , Conclusion 1 0 ) .

2 . ANGLO-SOVIET RELATIONS. - I f r e q u i r e d .

(Re f e r ence Cabinet 2 1 ( 3 3 ) , Conclusion 1 ) .

3 * JAPANESE COMPETITION IN THE TEXTILE TRADE.

(Re f e r ence Cabinet 2 0 ( 3 3 ) , Conclusion 8 ) .

Memorandum by the P res iden t of the Board o f T rade .

( C P . 55 (33) - a l r eady c i r c u l a t e d ) .

Memorandum by the Sec re ta ry of S ta te f o r the C o l o n i e s .

( C P . 54 (33 ) - a l r eady c i r c u l a t e d ) .

4 . THE SITUATION IN MALTA.

(Re f e r ence Cabinet 6 8 ( 3 2 ) , Conclusion 2 ) .

5. MALAYA.

Note by the Secre ta ry o f State f o r the C o l o n i e s , cove r ing Report by S i r Samuel W i l son .

( C P . 81 (33 ) - a l r eady c i r c u l a t e d ) .

6. PROPOSED MEMORIAL TO THE LATE LORD OXFORD AND ASQUITH.

(Re f e r ence Cabinet 6 4 ( 3 2 ) , Conclusion 1 ) .

Quest ion t o be r a i s ed by the Prime M i n i s t e r .

- 1 ­

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7. EDUCATIONAL ECONOMIES AND THE PAY OF NEW ENTRANTS TO THE TEACHING PROFESSION.

(Re fe rence Cabinet 6 1 ( 3 1 ) , Conclusion 1 ) .

Memorandum by the P r e s i den t o f the Board o f Educat ion .

(C .B . 76 (33 ) - a l r e a d y c i r c u l a t e d ) .

Memorandum by the Sec r e t a r y of S ta te f o r Sco t l and .

( C P . 80 (33 ) - a l r eady c i r c u l a t e d ) .

Memorandum by the Chance l lor o f the Exchequer. ( C P . 82 (33 ) - a l r eady c i r c u l a t e d ) .

8 . MILK INDUSTRY: REPORT OF RE-ORGANISATION COMMISSION.

Memorandum by the M i n i s t e r o f A g r i c u l t u r e and F i s h e r i e s .

( C P . 83 (33 ) - a l r eady c i r c u l a t e d ) .

9 . ROAD TRAFFIC ACT,, 1930: EXTENT OF APPLICATION OF SECTTON 116 RELATING TO COMPENSATION.

^Reference Cabinet 1 5 ( 3 3 ) , Conclusion 6 ) .

Memorandum by the M i n i s t e r o f T ranspo r t . ( C P . 75 (33 ) - a l r e ady c i r c u l a t e d )

10. CONCLUSIONS OF HOME AFFAIRS COMMITTEE *

H*A,C. 4th Conc lus ions (33 ) - t o toe c i r c u l a t e d ) .

( i ) T eache rs ' (Superannuation) B i l l .

Memorandum by the P r e s i d en t o f the Board o f Educat ion , c o v e r i n g d r a f t B i l l .

(H .A . 9 (33 ) - a l r eady c i r c u l a t e d ) .

( i i ) Educat ion ( N e c e s s i t y o f Schoo ls ) B i l l .

Memorandum by the P r es iden t o f the Board o f Educat ion , c o v e r i ng d r a f t B i l l .

(H.Aa 10(33) - a l r e ady c i r c u l a t e d ) .

1 1 . PRIVATE MEMBERS' BILLS.

For F r i d a y , March 31s t .

1. H o t e l s and Restaurants B i l l (Mr . Bracewe l l Smith) ( C o n s e r v a t i v e ) ) .

Memorandum by the Sec r e t a r y o f S ta te f o r Home A f f a i r s .

( C P . 77 (33 ) - a l r eady c i r c u l a t e d ) .

2 , S laughter o f Animals B i l l ( L i e u t . - C o l o n e l T . C M o o r e ) ( C o n s e r v a t i v e ) ) .

( S i gned ) M.P.A, HANKEY, Sec re ta ry t o the Cab ine t .

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COPY NO. S 22

C A B I N E T S3 ( 3 3 ) .

Meet ing o f the Cabinet to be he ld at 10 Downing S t r e e t , S.W.1, on WEDNESDAY,

March 29th, 1933, a t 11.0 a,m.

ADDENDUM to AGENDA.

Item 2. - ANGLO-SOVIET RELATIONS.

(Re fe rence Cabinet 2 1 ( 3 3 ) , Conclusion 1 ) .

Add the f o l l o w i n g Pape rs , a l s o d e l e t e the words

" I f r e q u i r e d " , under t h i s I t e m : -

Dra f t Russian Goods ( Import P r o h i b i t i o n ) B i l l .

Note by the P res iden t of the Board o f T rade , c o v e r i n g d r a f t B i l l .

( C P . 85 (33) - t o be c i r c u l a t e d ) .

P r o h i b i t i o n o f Russian Imports : P o s s i b l e e f f e c t s upon United Kingdom i n t e r e s t s .

Memorandum by the P r e s i den t o f the Board o f T rade .

( C P . 86 (53 ) - t o he c i r c u l a t e d ) .

(S i gned ) M.P.A. HANKEY,

Sec re ta ry to the Cab ine t .

[Whitehall Gardens, S .W.1;

28th March, 1933.

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j U c j E T.. COPY NO.

C A B I N E T 22 ( 3 3 ) .

Meet ing o f the Cabinet to be h e l d a t 10 Downing S t r e e t , S .W.1, on WEDNESDAY,

March 29th, 1933, a t 11,0 a.m.

FURTHER ADDENDUM TO THE AGENDA.

The f o l l o w i n g Paper w i l l a l s o be cons idered a t

the above m e e t i n g : -

Memorandum by the Home S e c r e t a r y . ( C P . 60(33) - a l r eady c i r c u l a t e d ) .

N o t e : - Owing to the c a n c e l l a t i o n o f the meet ing o f

the Cabinet arranged £or 8.30 t h i s even ing ,

the number o f Wednesday's meet ing w i l l now become

Cabinet 22 ( 3 3 ) .

( S i gned ) M.P.A. HANKEY,

Sec r e t a r y t o the Cab ine t .

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DOCUMENT IS THE PROPERTY OP HIS BRITANNIC MAJESTIES GOVERNMENT)

COPY NO.

C A B I N E T 22 (55 )

CONCLUSIONS of a Meet ing o f the Cabinet he ld at 10 Downing S t r e e t . S .W.1, on WEDNESDAY,

March 29th, 1933, at 11,0 a.m.

PRESENT: -

The R igh t Hon. J . Ramsay MacDonald, M .P . , Prime M i n i s t e r .

i l l Right Hon. Stanley Baldwin, M . P . , lord Pres ident of the Counci l ,

i l l Right Hon. Sir John Gilmour, B t . , D . S . O . , B P . , Secre tary o f S ta t e f o r time A f f a i r s .

IfffRight Hon. Ifhe Viscount H a i l sham, Secretary of S ta te f o r War.

hfjRight Hon. Sir Samuel Hoare, B t . , G . B .E . ,

H M . G . , M . P . , S e c r e t a r y of State f o r I n d i a .

he Right Hon. Sir Ph i l i p C u n l i f f e - L i s t e r ,

Hfe.E.,M'.C. ,M .P . , Sec r e t a r y [ of State f o r the C o l o n i e s . B B the Right Hon. K Sir Godfrey C o l l i n s , K .B .E . , j C.M.G.,M.P., S e c r e t a r y o f I State f o r Sco t l and .

Che Right Hon. ^ ^ l t e r Runciman, M . P . . i President of the Board o f j Trade.

he ,Right Hon. Lord I rw in , K.G. ,G .C . S. I . , G .C . I .E . , P r e s i d en t o f the Board of Educat ion .

N . Right Hon. Sir Henry B e t t e r t o n , B t . ,

i C.B.E. ,M.P. , M i n i s t e r of Labour.

( I n the C h a i r ) .

The Right Hon. N e v i l l e Chamberlain, M .P . , Chance l lor of the Exchequer.

The R ight Hon. The Viscount Sankey, G .B .E . , Lord Chance l l o r .

The Right Hon. S i r John Simon, G . C . S . I . , K.C.V.O. ,O..B.E. ,K .C . ,M .P . , Sec re ta ry of S ta te f o r Fo re i gn A f f a i r s .

The R ight Hon. J .H . Thomas, M .P . , Sec r e t a r y o f State f o r Dominion A f f a i r s

The Most Hon. The Marquess o f Londonderry, K .G . ,M .V .O . , S e c r e t a r y ' o f S ta te f o r A i r .

The R ight Hon. S i r Edward H i l t o n Young, G . B . E . , D . S . O . , D . S . C . , M . P . , M i n i s t e r o f Hea l th .

The Right Hon. S i r Bo l t on Ey r e s -Monse l l , G .B .B . .M .P . , F i r s t Lord of the Admira l ty .

Major The Right Hon. Wa l t e r E l l i o t , M . C . M . P . , M i n i s t e r o f A g r i c u l t u r e and F i s h e r i e s .

Major The Right Hon. W. Ormsby-Gore, M .P . , F i r s t Commissioner of Works.

olonel Sir M.P.A. Hankey, G .C .B . ,G .C .M.G. , Secre tary .

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LOUS

fterenoe: IB,met *JI

olusxon

1. The Cabinet had b e f o r e them a Most Secre t

Memorandum by the Home Secre tary (G .P . -60 ( 3 3 ) )

c i r c u l a t i n g f o r t h e i r c o n s i d e r a t i o n c e r t a i n proposals

submit ted by Lord Trenchard f o r the re fo rm o f the

M e t r o p o l i t a n P o l i c e Force , d i r e c t e d p a r t l y to changes

i n a d m i n i s t r a t i o n and p a r t l y to changes o f o r gan i sa ­

t i o n . The Home Secre tary t rus t ed that the Cabinet

would dec ide i n favour o f these r e f o rms , and at the

end o f h i s Memorandum descr ibed the course o f events

which would make i t p o s s i b l e f o r an announcement o f

the schemes f o r the r e f o rm o f the Me t r opo l i t an P o l i c e

to be made s h o r t l y a f t e r the Easter Rec e s s .

The Prime M in i s t e r expressed h i s r e g r e t that i t

had not been p o s s i b l e t o arrange f o r a Meet ing o f

the Cabinet t o take th i s i tem on the prev ious a f t e r ­

noon or e v en ing .

The Home Secre tary made a statement i n exp lana t i on

o f the p r o p o s a l s .

The p r i n c i p a l doubts expressed as to the proposals

we re , - that the P o l i c e Force has a v e r y h igh

r e p u t a t i o n w i th the genera l p u b l i c ; that i n these

c ircumstances i t would be d i f f i c u l t t o conv ince

Par l iament o f the need f o r such d r a s t i c reforms a t

the present t i m e , the more so as a good dea l o f

d i s c r e t i o n would have t o be observed by the Government

speake r s : tha t the nature o f the scheme l en t i t s e l f

t o m i s r e p r e s e n t a t i o n ; ' f o r example, i t would be s t a t ed

that i t i n v o l v e d m i l i t a r i s a t i o n o f the P o l i c e Force

and the r e s e r v a t i o n o f the best posts f o r a p r i v i l e g e d

c l a s s . In p a r t i c u l a r , i t was urged tha t i n any

pub l i shed r e p o r t such phrases as the "educated c l a s s "

or " o f f i c e r c l a s s " should be a vo i d ed , a l though there

was no o b j e c t i o n t o an i n d i c a t i o n tha t i t was d e s i r ab l e

t o in t roduce graduates o f a U n i v e r s i t y i n t o the

P o l i c e Force . ..,V

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The Cabinet were informed that the Commissioner o f

the Me t r opo l i t an P o l i c e was about t o submit h i s

Annu.al Report t o the Home S e c r e t a r y , whose present

i n t e n t i o n was t o p r in t and c i r c u l a t e i t on the Thursday

b e f o r e the House of Commons r o s e . During the Recess

Members would have an opportuni ty t o study the Repor t ,

i n which a t t e n t i o n would be drawn to c e r t a i n o f the

de f e c t s mentioned in the Papers b e f o r e the Cab ine t .

The Press a l s o , no doubt, would g i v e the matter a

good dea l o f p u b l i c i t y , and the Home Secre tary would

see the appropr ia t e Par l iamentary Committee as soon

as the House met . Pub l i c op in ion hav ing thus been

e n l i g h t e n e d , the necessary l e g i s l a t i o n would be i n t r o ­

duced. ^his programme, however, did not a l t o g e t h e r

commend i t s e l f t o the Cab ine t . I t was suggested that

i t might be b e t t e r i f the Home Secre tary pub l i shed

the Report by the Commissioner of P o l i c e a f t e r the

Pas t e r Recess , when members o f the Government were in

pe r sona l contact w i th the House o f Commons . Shor t l y

a f t e r the p u b l i c a t i o n o f the Report a day could be

g i v en t o Debate , when the Home Secre tary would have

an oppor tun i ty s t i l l fu r the r to en l i gh t en pub l i c

op in i on and thus to avo id m is r epresen ta t i ons .

In t h i s connect ion the Home Secre tary informed

the Cabinet that h i s genera l idea was t o impress on

the House o f Commons that the new forms o f crime that

had r e c e n t l y appeared r e q u i r e d new methods f o r t h e i r

d e t e c t i o n and p r e v e n t i o n ; tha t at present the re was

no General S t a f f and no prompt In format ion Se rv i c e a t

Scot land Ya rd , and that t h i s n e c e s s i t a t e d personnel

o f a h i g h e r standard o f educat ion than at p r e s e n t .

At a l a t e r s tage o f h i s speech he would c a l l a t t e n t i o n

t o some o f the f a c t o r s mentioned in the Commissioner's

Report which m i l i t a t e d aga ins t d i s c i p l i n e .

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The Cabinet were reminded tha t the re form of the

M e t r o p o l i t a n P o l i c e Force would be a task o f g r e a t

d i f f i c u l t y f o r an ordinary Par ty Government. I f i t

were not undertaken by the N a t i o n a l Government i t

might be delayed i n d e f i n i t e l y . The post of Commissioner

o f P o l i c e was occupied by a man of outstanding q u a l i t i e s ,

and, w i th h i s Report b e f o r e them, the N a t i o n a l Government

could not a f f o r d t o n e g l e c t the ques t ion o f r e f o rm .

There was v e r y genera l agreement

tha t pub l i c op in i on would have t o be i n s t ruc t ed ve ry

c a r e f u l l y as t o the need o f new methods. I t was

sugge s t ed , f o r example, that i t might not be necessary

t o d i s c l o s e a l l the d e t a i l s of the scheme at once .

The Cabinet agreed —

( a ) To approve g e n e r a l l y the proposa ls submitted by the Home Secre tary in C P .-60 ( 3 3 ) :

( b ) That a Cabinet Committee, composed as f o l l ows -

The Lord P r e s i den t o f the Counc i l , The Secre ta ry o f S ta t e f o r War, The Secre tary o f S t a t e f o r Dominion

A f f a i r s ­

should be appointed t o consult w i th the Home Sec re ta ry on the p u b l i c a t i o n of the Annual Report o f the Commissioner of the M e t r o p o l i t a n P o l i c e .

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RUSSIA.

inglo-SovIet delations .

lowest o f Br i t i sh Subjects .

Draft Russian Goods (Import -Prohibition) B i l l .

ffossible Effects upon Ifnited Kingdom -interests .

(Previous Reference: fabinet 21 . (33) , Con­idusion 1 & Appendix . )

FLU.

2 . The Cabinet had b e f o r e them the f o l l o w i n g

Memoranda by the P res iden t o f the Board of ^ r a d e : ­

C .P . -85 ( 3 3 ) , c o v e r i n g the d ra f t Russian Goods ( import P r o h i b i t i o n ) B i l l i

C ,P .-86 ( 3 3 ) , c o v e r i n g a Memorandum prepared in the Board o f Trade show­ing the p o s s i b l e e f f e c t s upon United Kingdom i n t e r e s t s o f the p r o h i b i t i o n o f Russian impor t s .

The Sec re ta ry o f S ta te f o r Fo re i gn A f f a i r s

communicated t o the Cabinet the in format ion contained

i n the l a t e s t te legrams from Moscow, When S i r E, Ovey

had attempted t o inform M. L i t v i n o f f that a B i l l had

been d r a f t e d and would be disct issed by the Cabinet

next day, M, L i t v i n o f f had s t a t e d that he was not in

the s l i g h t e s t degree i n t e r e s t e d in what happened at

the B r i t i s h Cabinet and had in t imated that he did not

w i sh t o hear any more . The Ambassador, however , had

succeeded in s t a t i n g tha t these powers would be taken

unless he was in a p o s i t i o n t o t e l l His Ma j e s t y ' s

Government b e f o r e the Gabinet Meet ing that the t r i a l

o f the B r i t i s h p r i sone rs would not take p l a c e .

M. L i t v i n o f f had r e fused t o l i s t e n t o the terms o f

the B i l l . Only at a l a t e r s t a g e o f the conve rsa t i on

had the Ambassador beenab le t o r e f e r t o the announce­

ment which i t was proposed t o make i n Par l iament on

March 30th . Other in f o rmat i on i n d i c a t e d the

p r o b a b i l i t y that a t r i a l would take p l a c e .

On the who l e , the Cabinet i n c l i n e d t o the v iew

tha t the announcement o f t h e B i l l was not l i k e l y t o

d e t e r the Russian Sov i e t Government from proceeding

w i t h the t r i a l . On the o ther hand, they had t o take

i n t o account that the Ambassador had n o t i f i e d

M, L i t v i n o f f o f the ' i n t e n t i o n t o in t roduce a B i l l .

Not t o announce i t s i n t r o d u c t i o n , t h e r e f o r e , would

p l a c e the Ambassador i n a v e r y embarrassing p o s i t i o n .

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The Cabinet were not unmindful of the se r i ous

e f f e c t s upon United Kingdom i n t e r e s t s o f p r o h i b i t i o n

o f Russian impor ts , as s e t f o r th i n C.P . -86 ( S 3 ) .

They r e a l i s e d , however, tha t the B i l l was only an

Enabl ing B i l l and tha t even a f t e r i t had been enacted

the Government would not be compel led t o e x e r c i s e

t h e i r powers . In order t o enable them l a t e r on, i f

necessa ry , to r e s i s t pressure t o do s o , i t was

g e n e r a l l y agreed that in the announcement o f the

Government's i n t en t i ons i t should be i n d i c a t e d that

the ques t i on whether those powers would be e x e r c i s ed

would depend on the t reatment accorded t o the B r i t i s h

p r i sone rs in Russ i a .

The Cabinet agreed —

( a ) That on the f o l l o w i n g day, Thursday, March 30th, the Prime M i n i s t e r should, g i v e n o t i c e o f the Government's i n t e n ­t i o n t o pass a B i l l b e f o r e Easter c o n f e r r i n g powers f o r the p r o h i b i t i o n o f Russian impor t s :

( b ) That the Prime M i n i s t e r should see the Par l iamentary Secre ta ry t o the Treasury w i th a v i ew t o pass ing the B i l l i n the House o f Commons through a l l i t s s tages in a s i n g l e day:

( c ) That the Chance l l o r o f the Exchequer should confer w i th the P r es iden t of the Board o f Trade as t o a proposa l he had in mind, f o r us ing the proceeds o f l i c e n s e d imports t o recompense the c r e d i t o r s i n t h i s country o f the Russian S o v i e t Government.

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J E DISARMAMENT ^ F E R P N C E -

Visit to geneva.. Rome

g d Paris .

State of

(Previous Reference: Cabinet 20 (33), Con-Lusion 10 . )

3 . The Secre tary o f S ta te f o r Fore ign A f f a i r s

s a i d that he had nothing t o add t o the va r i ous r epo r t s

o f conversa t i ons that the Prime M i n i s t e r and h imse l f

had had w i th f o r e i g n r e p r e s e n t a t i v e s during t h e i r

r e c e n t v i s i t s to Geneva, Rome and P a r i s , He would

i n v i t e the a t t en t i on ' of h i s co l l eagues ' i n p a r t i c u l a r

t o h i s conversat ions w i t h D r . Benes, M . T i t u l e s c u

and D r . P o t i c h .

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(previous Reference: Cabinet SO (33), Con­elusion 8 .

4 . The Cabinet aga in had b e f o r e them the f o l l o w i n g

document? on the sub jec t o f Japanese Compet i t ion in

the T e x t i l e T r a d e , which were summarised i n the

Conclusions of the Cabinet he ld on March 8th (Cabinet

15 ( 3 3 ) , Conclus ion 3 ) : -

The P r e s i den t o f the Board o f Trade informed the

Cabinet tha t the s i t u a t i o n had become much more acute

s i n c e the sub jec t was l a s t d i s cussed . A Deputa t ion

from the Manchester Chamber o f Commerce had informed

him that they wanted a r e -open ing of the T r ea t y p o s i t i o n

w i t h Japan. For the immediate p resent h i s sugges t i on

was t o withdraw the West A f r i c a n and West Ind ian

Co lon ies from the Anglo-Japanese Commercial T rea ty

i n o rde r that they might be ab l e t o w i thho ld most­

f a vou r ed -na t i on treatment in fu ture from Japan.. Thflt

would c l e a r the ground so f a r as Lancashire was

concerned, but compe t i t i on was now spread ing t o a

w ide range o f o ther goods . The very low wages paid

i n Japan, coupled w i th the low v a l u e of the y en ,

made i t imposs ib l e f o r t h i s country t o compete . The

p o s i t i o n had passed beyond that o f a sporad ic a t t a ck

by business men on the t rade of another country and

was approaching a n a t i o n a l movement by Japan t o capture

the markets o f As ia and beyond t h a t c o n t i n e n t . He

hoped e v e n t u a l l y t o a r r i v e at a p o s i t i o n where c a r t e l

arrangements might be d iscussed w i th the Japanese,

but t h i s must be preceded by a c t i o n such as he had

p roposed .

The Sec re ta ry o f S ta t e f o r the Co lon ies informed

the Cabinet tha t the West A f r i c a n and West Ind ian

Co lon i es were ready and anxious f o r the proposed

- 7 ­

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withdrawal o f the Anglo-Japanese Commercial T r e a t y ,

He had r e c e i v e d in fo rmat ion from a prominent

Lancashire business man who had discussed the

ques t i on w i th M. Matsuoka. ^he l a t t e r had sa id tha t

the proper way to handle the ques t ion was by means

o f a c a r t e l , though he thought the present moment

inoppor tune .

The Secre tary o f S ta te f o r Ind ia read t o the

Cabinet a t e l eg ram from the Government o f India

p r e s s ing f o r the immediate denunciat ion o f the Indo-

Japanese Commercial Convent ion o f 1904. He was

w i l l i n g t o do h is bes t t o arrange that Ind ia should

march in s t ep w i th the United Kingdom Government, but

po in t ed out tha t the Ind ian p o s i t i o n was r e a l l y an

independent one and was governed by a d i f f e r e n t

T r ea t y .

The Prime M in i s t e r r ead to the Cabinet t e l eg ram

No . 76, from Tokyo, dated March 13th, which had

a r r i v e d during h i s absence abroad w i th the Fore ign

S e c r e t a r y , This i n d i c a t e d that denunc iat ion o f the

T r ea t y by the West A f r i c a n Co lon i es a lone should not

provoke undue resentment i n Japan so long as i t was

c l e a r l y d i s s o c i a t e d from anyth ing i n the nature o f

sanc t ions . ^he Ambassador did not e n t i r e l y exclude

the p o s s i b i l i t y o f a l i m i t e d c a r t e l arrangement betveen

the Un i ted Kingdom and Japanese c o t t o n i n t e r e s t s , and.

thought th i s should be t r i e d . I f denunciat ion was

dec ided on he asked a u t h o r i t y t o make f u l l and

f r i e n d l y v e r b a l exp lanat i ons at the M in i s t r y of

F o r e i g n A f f a i r s .

The Cabinet were reminded tha t t h i s was the p o s s i b l e

opening o f a v e ry s e r i ous q u e s t i o n , namely, a s t r u g g l e

between East and West a r i s i n g out o f the g r ea t d i f f e r ­

ence between t h e i r r e s p e c t i v e standards o f l i v i n g .

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( a ) To approve g ene ra l l y the p o l i c y o f tak ing s t e p s , on beha l f of the Co lon ies i n West A f r i c a and the West I n d i e s , t o withdraw from the Anglo-Japanese Commercial T r e a t y , i n order that they should, be in a p o s i t i o n t o w i thho ld mos t - favoured­na t i on treatment in future from Japan, sub jec t t o ­

( b ) That the Secre ta ry o f S ta te f o r Fo re i gn A f f a i r s ' sugges t ion should be adopted tha t he should see the Japanese Ambassador as soon as p o s s i b l e and warn him that s e v e r a l o f h i s co l l eagues ( v i z . , the P r es iden t o f the Board o f Trade and the Secre tary o f S ta te f o r the C o l o n i e s ) were concerned at the v e r y se r i ous ex tent of Japanese commercial c o m p e t i t i o n . He should add a l s o that the Government o f Ind ia had s i m i l a r p r eoccupa t i ons . In r a i s i n g the ques t i on he should make c l e a r that i t was t o t a l l y d isconnected from any p o l i t i c a l issue such as those that had a r i s en at Geneva and was a pure ly commercial d i f f i ­c u l t y , He should i nd i ca t e g e n e r a l l y the course which His Ma j e s t y ' s Government proposed t o t ake , as s e t f o r t h above in ( a ) : but should po in t out tha t 12 months would e lapse b e f o r e the wi thdrawal of c e r t a i n Co lon ies from the Convention would take e f f e c t . In the circumstances he should i n v i t e the Ambassador t o v i s i t the P r e s i d en t o f the Board o f T rade , who would be ab le t o g i v e him a l l i n f o rmat i on and discuss the matter i n d e t a i l . In a d d i t i o n , he should n o t i f y the B r i t i s h Ambassador in ^okyo:

fc) That the Sec re ta ry o f S ta t e f o r India should be au tho r i s ed t o approve the r eques t o f the Government o f India t o denounce the Indo-Japanese Convent ion o f 19 04, but the Cabinet took note tha t the Secre tary o f S ta t e f o r Ind ia would not take a c t i o n u n t i l a f t e r the conversat ions r e f e r r e d t o above in ( b ) , and that Ind ia would keep i n s t ep w i th the United Kingdom so far as the separa te nature of t h e i r d i f f i c u l t y w i th Japan rendered f eas i b l e .

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5. The Cabinet took note that the Se c r e t a r y o f

S ta te f o r the Co l on i e s , a f t e r c o n s u l t a t i o n w i t h the

Sec r e t a r y of S ta te f o r Fore i gn A f f a i r s , had dec ided

tha t the moment was inopportune f o r c a r r y ing out the

p o l i c y approved by the Cabinet a t the meet ing r e f e r r e d

t o I n the margin.

I I

H

I

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M 3 S

6. The Cabinet had b e f o r e them a Memorandum by

the Secre tary of S ta te f o r the Colonies (C . P . - 81 ( 3 3 ) )

c i r c u l a t i n g the Report of S i r Samuel W i l son , the

Permanent Under-Secretary o f S ta te f o r the Co l on i e s ,

on h i s r e c en t v i s i t t o Malaya w i th a v iew to d iscuss ing

w i th the High Commissioner, the Malay Rulers and the

l eaders o f pub l i c op in ion the proposa ls which had

been made to d e c e n t r a l i s e c e r t a i n pub l i c s e r v i c e s

i n the Federated Malay States . The Secre tary o f State

agreed w i th the l i n e of p o l i c y advocated by S i r Samuel

W i l son , and unless he found s t rong r eac t i ons in

Malaya which might l ead him to r e cons ide r t h i s view­

he proposed t o adopt g e n e r a l l y the recommendations

in the R e p o r t ,

The Sec r e ta ry of S ta te f o r I nd i a sa id he could

see no o b j e c t i o n from the po in t o f v iew of Ind ia to

the proposa l s i n C P . 8 1 ( 3 3 ) , but he warned the Cabinet

tha t i f the proposa ls had a bad r e c e p t i o n in Ind ia

I t might be necessary f o r him to make r ep resen ta t i ons

to the Sec r e ta ry o f S ta te f o r the C o l o n i e s .

The Cabinet approved the proposa ls of the Sec r e ta ry o f S ta te f o r the Co lon ies as set f o r t h i n C P . 8 1 ( 3 3 ) .

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POSED 7. The Prime M i n i s t e r Informed the Cabinet that (OPJAL TO

LATE he had now completed h i s n e g o t i a t i o n s w i th the l a t e OXFORD

ASQU1TH, Lord Ox f o rd ' s f ami l y on the d e t a i l s of the memorial

t o the l a t e Lord Oxford and Asqui th i n Westminster ^previous Ifference: Abbey. There would be a token vo te o f £100 which Satinet 6 4 ( 5 2 ) , Conclusion 1) . he understood would cover the c o s t . He asked f o r

lf.R.3,2 (4*) 1- a u t h o r i t y f o r the i n t r o d u c t i o n of the R e s o l u t i o n i n

both Houses o f Par l iament b e f o r e E a s t e r . I f t h i s

were approved he would communicate w i th the P a r l i a ­

mentary Secre ta ry to the Treasury , and would arrange

f o r him t o inform the Sec r e t a r y o f S ta te f o r War, as

Leader o f the House of Lo rds , o f what had been

a r ranged .

The Cabinet approved the Prime M I n i s t e r v s p r oposa l .

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/EDUCATION 8 . The Cabinet postponed f o r a week cons ide ra t i on BhOHOMlES,

of Memoranda tha t had been c i r c u l a t e d on the sub jec t

Rrevious of Educat iona l Economies and the Pay of new Entrants Reference: Ifabinet 61 to the Teaching P r o f e s s i o n .

C o nB D * : Bus Ion 1 ) .

I -m

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IHE TEACHERS 9 . The Cabinet had under, c ons ide ra t i on aISUPERANNUA-Memorandum by the P r es iden t o f the Board o f Education llON) BILL.

(H .A . - 9 ( 3 3 ) ) c ove r ing the d ra f t Teachers (Superannua-I previous I Reference: t i o n ) B i l l , t oge the r w i th the f o l l o w i n g recommendation ? Cabinet 16 1(28), Con- o f the Committee o f Home A f f a i r s thereon ( H . A . C . 4th Iclusion 14 . )

Conclusions ( 3 3 ) , Minute 1) : -

To au tho r i s e the i n t r o d u c t i o n i n the House o f Commons o f the Teachers (Superannuation) B i l l i n the form of the d ra f t annexed, t o H.A.-9 ( 3 3 ) , sub jec t t o any d r a f t i n g or o ther minor a l t e r a ­t i ons which may be found necessary or d e s i r a b l e .

The Cabinet approved the proposa ls o f the Committee o f Home A f f a i r s , as se t f o r t h above .

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10. The Cabinet had under c ons i d e ra t i on a Memo­

randum by the P res ident o f the Board o f Education

(H .A . -10 ( 3 3 ) ) cover ing the d ra f t Education (Ne c e s s i t y

o f Schoo ls ) B i l l , t o ge the r w i th the f o l l o w i n g

recommendation o f the Committee of Home A f f a i r s

thereon (H .A .G , 4th Conclusions ( 3 3 ) , Minute 2 ) : -

To author i se the i n t r oduc t i on in the House o f Lords o f the Education ( N e c e s s i t y o f Schoo ls ) B i l l i n the form of the d ra f t annexed t o H.A.-10 ( 3 3 ) , subject t o any d r a f t i n g or o ther minor a l t e r a t i o n s which may be found necessary or d e s i r a b l e .

The Cabinet approved the recommendation o f the Committee of Home A f f a i r s , as se t f o r t h above .

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(AGRICULTURAL POLICY.

"he Milk Industry.

Report o f Milk Re­organisation Commission.

/previous Reference : Cabinet 18 (33), Con­elusion 6 % Appendix,)

1 1 . The Cabinet had b e f o r e them a Memorandum by

the M i n i s t e r of A g r i c u l t u r e and F i s h e r i e s ( C P . - 8 3

( 3 3 ) ) on the sub jec t o f the Mi lk I n d u s t r y . A f t e r

r e v i e w i n g a l l the circumstances in the l i g h t o f

the recommendations conta ined in the Report o f the

Mi lk Re - o r gan i sa t i on Commission, the M i n i s t e r

reached the f o l l o w i n g o o n e l u s i o n : ­

"So fa r as the mi lk market ing scheme under the 19 31 A g r i c u l t u r a l " Market ing Act recommended by the Commission i s " concerned, t h i s i s f o l l o w i n g the s t a tu t o r y p rocedure . As regards the es tab l i shment o f a dairymen's board and a j o i n t c o u n c i l , I ask f o r au tho r i t y t o announce tha t the Government i s not prepared as at present adv i sed t o in t roduce fu r the r new l e g i s l a t i o n t o s e t up a s t a t u t o r y d i s t r i b u t o r s ' o r g a n i s a t i o n as recom­mended by the M i lk Commission. I n e f f e c t , however , the i n t e n t i o n s o f the Commission as to c o n s u l t a t i o n between d i s t r i b u t o r s , manufacturers and producers b e f o r e f i x i n g mi lk p r i c e s , w i th or without a r b i t r a t i o n by persons nominated by the Government, can^ i f d e s i r e d , l a r g e l y be secured under l e g i s l a t i o n a l ready be f o r e P a r l i a m e n t " ,

The Cabinet approved the proposa l o f the M i n i s t e r o f A g r i c u l t u r e and F i s h e r i e s , as se t f o r t h In C P . 8 3 ( 3 3 ) , and quoted above .

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THE ROAD 'RAPPTO ACT, 1950.

Extent o f Application if Sect ion 116 r e l a t i n g o Compensa­ion.

Previous Reference: Cabinet 15 (33 ) , 0 on­olusion 6, )

i /,,\

12. The Cabinet had b e f o r e them a Memorandum by

the M i n i s t e r o f Transport ^C-,P,-75 ( 3 3 ) ) on the

ex tent o f the a p p l i c a t i o n o f S e c t i on 116 of the

Road T r a f f i c A c t , 1930, r e l a t i n g t o compensation.

At the Meet ing mentioned in the margin the M i n i s t e r

had undertaken t o cons ider the p o s s i b i l i t y o f i n s e r t ­

ing a p r o v i s i o n in the proposed B i l l which would

have the e f f e c t o f imposing upon the Loca l Author i t y

concerned an o b l i g a t i o n t o pay any o f i t s employees

a f f e c t e d by agreements entered i n t o under Sect ion 105

o f the Act the same compensation which any such

employees would be e n t i t l e d t o o b t a i n from the Road

Fund under Sec t i on 116 as i t now s t ands . I t was

c l e a r t ha t i t was not the i n t e n t i o n o f Par l i ament ,

when the Road T r a f f i c B i l l was under c o n s i d e r a t i o n ,

t o impose such a l i a b i l i t y upon Loca l A u t h o r i t i e s ,

and the M i n i s t e r o f Transport had come to the conc lu ­

s i o n that the ex tens ion o f the scope o f the B i l l

would be bo th i n e f f e c t i v e and anomalous . He t h e r e f o r e

asked au tho r i t y t o proceed w i th the B i l l as o r i g i n a l l y

p roposed .

The Cabinet approved the p roposa l o f the M i n i s t e r o f Transport i n C P . 75 (33) as summarised above .

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THE RECENTAIR DISASTER.

13. The Sec r e ta ry o f S ta t e f o r A i r r epo r t ed that

he had noth ing to add t o in f o rmat i on pub l i shed i n

the Press on the d i s a s t e r to the Imper i a l Airways

L i n e r , C i t y of L i v e r p o o l , on the p r ev i ous day. The Cabinet approved the proposa l of the S e c r e t a r y o f S ta t e f o r A i r t h a t , In r e p l y i n g t o a p r i v a t e N o t i c e Quest ion that a f t e rnoon , he should avo id committing h imse l f t o a pub l i c enqu i ry , and take no d e c i s i o n u n t i l f u r the r in fo rmat i on was a v a i l a b l e .

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14. The Cabinet had b e f o r e them a Memorandum by

the Home Secre tary (C .P . - 77 ( 3 3 ) ) on the sub jec t

o f the Hote ls and Restaurants B i l l , t o be i n t r o ­

duced in the House o f Commons by a P r i v a t e Member

on F r i day , March 31s t , The B i l l purported t o g i v e

e f f e c t to c e r t a i n recommendations o f the Royal

Commission on L i c ens ing i n regard t o the e s t a b l i s h ­

ment o f h o t e l s and restat i rants as s p e c i a l c l asses

o f l i c e n s e d p r em i s e s . The Home Secre tary an t i c i pa t ed

that the "Bi l l would be supported by the genera l

f e e l i n g of the House, and suggested that i t should

be g i v en a f r e e v o t e and that the a t t i t v ide o f the

Government spokesman should be t o express approva l

o f the p r i n c i p l e o f the B i l l , wh i l e making i t

c l ea^ tha t i t s acceptance by the Government would

be c o n d i t i o n a l on cons iderab l e amendment o f v a r i ous

p r o v i s i o n s ,

The Cabinet were reminded that on the 30th

November the Prime M i n i s t e r had suggested that the

Government should adopt not r i g i d l y but so f a r as

might prove p r a c t i c a b l e the f o l l o w i n g procedure i n

d e a l i n g w i th P r i v a t e Members' B i l l s :

( a ) As a g ene ra l r u l e , where p r a c t i c a b l e , M i n i s t e r s should abs ta in from making statements of Government P o l i c y on. P r i v a t e Members' B i l l s :

( b ) That when M i n i s t e r s d i d speak on beha l f of the Government on P r i v a t e Members' B i l l s they must be v e r y c a r e fu l not to promise f a c i l i t i e s .

I n these c ircumstances the Home Sec re ta ry s t a t ed

that he proposed t o l eave the B i l l t o the House o f

Commons, but tha t i f a speech had t o be made on

beha l f o f the Government i t would be on the l i n e s

suggested in C P . 7 7 ( 3 3 ) , as summarised above .

The Cabinet approved t h i s p r oposa l .

- 1 9 ­

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FUTURE MEETING 15 . The Cabinet agreed that t h e i r next OF CABINET.

r e g u l a r week ly meet ing should be he ld on

Wednesday n e x t , A p r i l 5 th , 1933, a t 11.0 a.m.

2 Wh i t eha l l Gardens, S .W.1 .

29th March, 1933.