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Catalogue Reference:CAB/23/82 Image Reference:0019 pnOTTMENT IS THE PROPERTY OP HIS BRITANNIC MAJESTY^ GOVERNMENT).

0 R J J . COPY NO.

CABINET 51 (55) .

Meeting of the Caoinet to he held at No. 10, Downing Street, S.T.I., on WEDNESDAY, 4th DECEMBER, 1935, at 11.0 a.m.

A G E N D A.

1' FOREIGN AFFAIRS - (if required).

2 * GERMAN RE-ARMAMENT.

(Reference Cabinet 15 (35)).

Note by the Secretary of State for Foreign Affairs, covering despatches from H.M. Ambassador in Berlin. CP. 217 (35) - already circulated.

3, GOVERNMENT BUSINESS: LEGISLATIVE PROGRAMME FOR THE 1955-1956 SESSION.

(Reference Cabinet 36 (34) Conclusion 12).

Eleventh Conclusions (35) of Home Affairs Committee covering classified list of proposed Government Bills - already circulated.

4 * ATLANTIC AIR ROUTE.

(Reference Cabinet 47 (35) Conclusion 7).

Memorandum by the Secretary of State for Air. CP. 222 (35) - to be circulated.

5 * AIR NAVIGATION BILL.

(Reference Cabinet 30 (34) Conclusion 5).

Memorandum by the Secretary of State for Air. CP. 211 (35) - already circulated.

6. UNEMPLOYMENT ASSISTANCE (TEMPORARY PROVISIONS) TNC 57 3ILL. (Reference Cabinet 48 (35) Conclusion 12).

Memorandum by the Minister., of Health, covering draft Bill. CP. 223 (35) - already circulated. 7. UNEMPLOYMENT INSURANCE FOR AGRICULTURE.

(Reference Cabinet 27 (35) Conclusion 7) .

Memorandum by the Minister of Labour. CoP. 221 (35) - already circulated.

8. CROWN LANDS BILL. (Reference Cabinet 55 (33) Conclusion 7).

Memorandum by the Minister of Agriculture and Fisheries. CP. 224 (35; - already circulated.

9' Dh\iiI'hhLLJ^HculhLETffE..: RETENTION OF CABINET PAPERS BY MINISTERS ON LEAVING OFFICE.

(Reference Cabinet 11 (34) Conclusion 5).

Note by the Secretary. CP. 218 (35) - already circulated.

10. MEMORIAL TO THE LATE ADMIRAL OF THE FLEET EARL JELLICOE.

Question to be raised by the First Lord of the Admiralty.

11. COLONIAL GOVERNORS 1 PENSIONS.

(Reference Cabinet 38 (35) Conclusion 8).

Memorandum by the Secretary of State for the Colonies, covering draft Bill. CP. 215 (35) - circulated herewith. rmuruexiaxx Lrarucno , o-. n-.-jr.-j

2nd December, 1935. 7. UNEMPLOYMENT INSURANCE FOR AGRICULTURE,

(Reference Cabinet 27 (35) Conclusion 7).

Memorandum by the Minister of Labour. Cop. 221 (35) - already circulated.

8. CROWN LANDS BILL.

(Reference Cabinet 55 (33) Conclusion 7).

Memorandum by the Minister of Agriculture and Fisheries. CP. 224 (35) - already circulated.

9. CABINET PROCEDURE: RETENTION OF CABINET PAPERS BY MINISTERS ON LEAVING OFFICE.

(Reference Cabinet 11 (34) Conclusion 5).

Note by the Secretary. CP. 218 (35) - already circulated.

(Signed) M.P.A. HANKEY,

Secretary to the Cabinet.

V/hi teha 11 Gardens , 3. ,7.1. ,

2nd December, 1935. ,^p^nnfIMENT IS THE PROPERTY OP HIS BRITANNIC MAJESTY'S GOVERNMENT).

ISJ-CJO-^' CQPY NO. CABINET 51 (35).

CONCLUSIONS of a Meeting of the Cabinet held at 10, Downing Street, S.W.I., on WEDNESDAY, 4th DECEMBER, 1935, at 11 a.m.

PRESENT:

The Right Hon. Stanley Baldwin, M.P., Prime Minister. (in the Chair).

Ifhe Right Hon. The Right Hon. J. Ramsay MacDonald, , M.P., Lord President of the Council. Chancellor of the Exchequer. fThe Right Hon. The Right Hon. The Viscount Hailsham, Sir John Simon, G.C,S.I.,K.C.V.O Lord Chancellor. 0.* B. E. , K. C. , M.P. , Secretary of State for Home Affairs.

[The Right Hon. The Right Hon. Sir Samuel Hoare, Bt., G.C.S.I., The Viscount Halifax, K.G., G.B.E. , C.M.G. , M.P. , Secretary CCS.I. , G.C.I.E. , of State for Foreign Affairs. Lord Privy Seal.

JThe Right Hon. The Right Hon. A. Duff Cooper, D.S.O., M.P., Malcolm MacDonald, Secretary of State for War. Secretary of State for Dominion Affairs.

I The Right Hon. The Most Hon. The Viscount Swinton, G.B.E., The Marquess of Zetland, M.C., Secretary of State for G.C.S.I., G.C.I.E., Secretary Air. of State for India.

[The Right Hon. The Right Hon. Sir Godfrey Collins, K.B.E., J.H. Thomas, M.P., C.M.G. , M.P. , Secretary of Secretary of State for the State for Scotland. Colonies.

The Right Hon. The Right Hon. Walter Runciman, M.P., The Viscount Monsell, G.B.E., President of the Board of Trade. First Lord of the Admiralty.

The Right Hon. The Right Hon. Anthony Eden, M.C.. M.P., Lord Eustace Percy, M.P., Minister for League of Nations Minister without Portfolio. Affairs.

The Right Hon. The Right Hon. Walter Elliot, M.C., M.P., Oliver Stanley, M.C, M.P., Minister for Agriculture and President of the Board of Fisheries. Education.

The Right Hon. The Right Hon. Sir Kingsley Wood, M.P., Ernest Brown, M.O., M.P., M Minister of Health. Minister of Labour.

The Right Hon. W. Ormsby-Gore, M.P., First Commissioner of Works.. 1. The Minister for League of Nations Affairs drew

the attention of the Cabinet to Article XVI, paragraph

*f the Covenant of the League of Nations, as follows "The Members of the League agree, further, that they will mutually support one another in the financial and economic measures which are taken under this Article, in order to minimise the loss and inconvenience resulting from the above measures aimed, at one of their number by the covenant-breaking State "

A Committee had been set up at Geneva to consider the

application of this paragraph to the present dispute,

but so far we had avoided, any commitments thereunder.

Certain countries, however, were being very hard hit;

for example, Yugo-Slavia to SO per cent, of her trade,

and Roumania to a considerable extent. With the

co-operation of the Board of Trade, to which he

expressed his thanks, conversations had taken place with representatives of Yugo-Slavia, and certain

proposals (with which he need not trouble the Cabinet in detail) had been made for rendering assistance.

He asked, therefore, for authority in principle to

sanction such proposals as the Foreign Office, Board

of Trade and Ministry of Agriculture and Fisheries might agree. It had to be borne in mind that

assistance to foreign countries might strengthen demands from our own nationals. That, however, was a

different aspect of the question. Approval to the

present proposal was very important to our foreign policy, as it would come under the very Article of the

Covenant under which we were appealing to certain

Mediterranean countries, including Yugo-Slavia, for military co-operation.

The President of the Board of Trade reported, that

the Ministry of Agriculture and Fisheries was affected

almost more than his Department, as the proposed Chickens . The proposed facilities to Yugo-Slavia

-were not large compared with our owrn total turn-over, hut would apparently help the Yugo-Slavs . Unfortu­ nately it might give rise to claims from elsewhere.

The Minister of Agriculture and. Fisheries reported that the quantities involved were not large enough to break our own market, but would, undoubtedly create some difficulties. For example, there might be trouble with the Dominions about the admission of eggs from Yugo-Slavia. There was also likely to be trouble with some of our own industries, e.g., the fishing industry, who would urge, if these concessions were given, that markets should be obtained for their produce elsewhere. However, he would not oppose the proposal provided it was understood that these difficulties would arise.

The Secretary of State for Foreign Affairs said we might be able to ask for counter-advantages in other countries.

The Minister for League of Nations Affairs pointed out that some countries were losing proportionately much more than others. This was especially the case with Yugo-Slavia.

The question was raised as to whether these concessions would he made i f the countries in question refused military co-operation.

The Secretary of State for Foreign Affairs suggested that this should be reserved until the occasion arose.

The Cabinet agreed —

To approve the principle of some assistance being given to countries such as Yugo-Slavia, whose trade was heavily hit by the application of sanctions, and. that details should, be left to the following Ministers:-

The Secretary of State for Foreign Affairs, The President of the Board of Trade, The Minister of Agriculture and Fisheries,. The Secretary of State for Dominion Affairs.

-S­ PARLIAMENTARY 2 . The Secretary of State for Foreign Affairs DERATE ON FOREIGN reminded the Cabinet that a Debate was to take place AFFAIRS. in the Rouse of Commons on Thursday, December 5th,

CHINA AND on Foreign Affairs, as part of the general Debate on JAPAN. the A.d.dress . In his speech he would, hs-ve to refer to (Previous Reference: China and Egypt . Cabinet 49 (35), Con­ As regards China he proposed to observe caution, elusion 4 .) F.K. 30(37) 13. as it was impossible to say much at the moment. EGYPT . As regards Egypt, he was in telegraphic communication

(Previous with the British Nigh Commissioner as to the tenor of Reference: Cabinet 49 his remarks . One point which he proposed to make (35), Con­ clusion 3 .) clear was that His Majesty's Government never put

a veto on the Egyptian Constitution.

The Cabinet approved the above. GERMANY. 3 . The Cabinet had before them a Note by the

Re-armament Secretary of State for Foreign Affairs (CP.-£17 (35)) of* circulating to his colleagues three recent Despatches

(Previous from Pis Majesty"s Ambassador at Berlin (Nos. 112 9, Reference: Cabinet, 1160 and 1178) on the re-armament of Germany and (35), Con- e-l-u-s-ion-9-T) German expansionist aims. In his view these Despatches

fully justified the warnings of the Foreign Office as

DEFENCE RB- to Germany's tremendous preparations, and he thought QNIREMPN^S . they would convince the Cabinet that there was no time (Previous Reference: to lose in the preparation and completion of our own Cabinet 45 (35), Con­ defensive arrangements, which were an essential elusion 7.) accompaniment, and, so far as possible, preliminary to

any agreement to discuss with the German Government

the changes which, in Blerr Hitler's words, were

almost certainly necessary to prevent "an explosion

in the future".

The Secretary of State for Foreign Affairs said

he had circulated the above Despatches as he was

impressed with the gravity of the situation, which

led him to urge the importance of pushing on with our

own Defence Programmes. He was somewhat depressed

at the slowness with which progress was being made,

as examplified by the case of the production of

anti-aircraft ammunition. If that were so in a

matter which had priority in a time of urgency, what

would be the position in the general re-conditloning

of the -Services? He made a suggestion that Lord.

Weir should be brought into any Committee that was

dealing with the subject as he was particularly useful

in getting over the difficulties made by contractors.

He could not urge on the Cabinet too strongly the

importance of pressing ahead with our own measures.

Germany, even if not completely ready, might easily

take some action if satisfied that the defences of

other countries were even further behindhand..

A The Secretary of State's remarks led to a

preliminary discussion on the subject, of Defence

Requirements. The Cabinet were informed that the

(Official) Defence Requirements Committee had

submitted a Report to the Prime Minister immediately

after the Election, and that this Report had been

circulated, only to the body that had started, the

Inquiry, namely, the Sub-Committee of the Committee

of Imperial Defence on Defence Policy and Require­ ments. Some discussion took place as to the

desirability of circulating this highly secret

Report to the Cabinet, the results of which are recorded in the Conclusions below.

On the question of seeking Lord Weir's co-operatio doubts were expressed as to whether he could he

asked to afford more help than he was already

giving. It was thought, however, that Lord Weir would, be willing to sit on any Committee, and if necessary he might perhaps be relieved of some of

the other voluntary work he was going for the

Government.

The Cabinet were informed that Lord tfeir had been consulted informally in connection with the

section of the Report of the Defence Requirements

Committee dealing with industrial mobilisation.

The Prime Minister said that, in view of its magnitude and the large issues raised, the Report

of the Defence Requirements Committee was not an

easy one to handle, and, having read It himself, he had arranged to discuss procedure at the week-end with the Secretary to the Cabinet, who had also

been Chairman of'the Defence Requirements Committee.

A suggestion was, made that,-in view of the

importance of this Report from the point of view of

Government Policy, the Prime Minister should himself preside over any Committee set up.

A suggestion was made that at a very early stage

the Ministerial Committee that was dealing with the

Report might select some items on which immediate

action could he taken without waiting for the eomple­

tion of its examination of the whole Report.

The Cabinet were warned that the industrial

activities connected with the re-conditioning of the

Forces would involve very delicate questions with labour. Even in connection with the Air Expansion

Scheme such questions had arisen with Trade Unions.

The Cabinet were reminded that when the public were asked to make sacrifices for re-conditioning our

Defence Forces and defences there would certainly be a demand for action in the direction of disarmament: for example, the conclusion of a Western Air Pact with a view to air disarmament, in this connection the Cabinet were informed that some time ago details had been works?out between the Secretary of State for

Foreign Affairs and the Secretary of State for Air for proceeding with the Air Pact, but the question had been held up first by the exigencies of French politics, and now was likely to be held up by the

Germans, who did not care to discuss these matters dxaring the present Italo-Abyssinlan dispute. The danger in this was that if the Germans reached a certain point in their Air expansion they would be unable to reduce owing to its effect on their industrial problem. They were already trying to sell

aircraft abroad.

The suggestion was made that His Majesty's

Ambassador in Berlin might be asked to ascertain

from Herr Hitler whether he was, creating his Air

Force on the basis of the exaggerated figure of

1,800 French aeroplanes which he had mentioned in his discussions with Sir John Simon in Berlin earlier in the year, or on the lower figure of 1,000 aeroplanes mentioned in the Report of a. Committee of the French

Chamber as the present French aim.

The Secretary of State for Foreign Affairs reported

that he was drafting a Despatch to His Majesty's

Ambassador in Berlin suggesting that he should see

Herr Hitler and discuss these matters with him. He was

drawing up a series of questions which the Ambassador might put to Herr Hitler, and would also instruct him

to enquire about the Air Pact.

The Cabinet agreed —

(a) mo take note of the Despatches from His Majesty's Ambassador in Berlin on the re-a.rms.ment of Germany and German expansionist aims, circulated with C.P.-217 (35):

(b) That, in view of its extreme secrecy, the Third Report of the Defence Requirements Committee should be circulated to the Cabinet when it was ready for consideration, but in the first instance its circulation should be limited to those Ministers to whom it would be referred for examination; and that the utmost care must be taken within each Government Department to limit its circulation and to ensure secrecy.

(c) That the Prime Minister should decide on the particular machinery for the consideration of the Report, including the proposal that Lord Weir should be associated either with its consideration or with the means for implementing it :

(d) That the Ministers appointed by the Prime Minister to consider the Report should have their attention drawn to the various suggestions recorded above (e.g., labour aspects and the possi­ bility of some immediate action):

(e) That the Secretary of-State for Foreign Affairs should give consideration to the proposals made in the course of the discussion for promoting (simultaneously with the re-conditioning of the Forces) steps in the direction of peace and disarmament. GOVERNMENT 4. The Cabinet had before them the 11th Conclusions BUSINESS . (35) of the Committee of Nome Affairs, covering Legislative Programme classified lists of proposed. Government Bills .(Appendix. for the The conclusions reached by the Committee of Home Session. Affairs were as follows

(Previous (l ) To recommend the Cabinet to adopt the Reference: following classification of the Pills Cabinet named in'Paper H.A.-30 (.35), on the (35), Con- understanding that it will be for the elusion 8.) Cabinet to determine the order of priority and relative importance of the Bills within each of the respective lists:­ L (A) Annual or Compulsory Bills.

(B) Urgent or Essential Bills and Orders in Council (other than those named in (A) above).

(C) Useful Bills, mainly non­ controversial *

(D) Other Bills not yet ready, or Bills required in certain events.

(E) Consolidation Bills.

(8) To recommend the Cabinet to authorise the immediate re-introduction of the Employment of women and. Young Persons Bill and the Hours of Employment (Conventions) Bill.

(3 ) To draw the attention of the Cabinet to:­ (i) the importance of obtaining a First Reading before Christmas, 1935-, in the case of as many as possible of the Bills mentioned in the Ring's Speech:

(ii) the question of the Bill to repeal the Malta Constitution. After the Lord Chancellor, as Chairman of the

Committee of Rome Affairs, had dravn attention to

certain features of the recommendations, the Cabinet

agreed. — M Employment of women and Young (a) To approve the recommendations of the Persons Bill, Committee of Rome Affairs: previous (b) That the Employment of Women and Young reference: Persons Bill should be introduced, in Cabinet 49 (35) the Rouse of Commons, and the Hours of Conclusion 14.) Employment (Conventions) Bill in the House of Lords: Hours of Employment f Convent ions) Bill * Previous Reference: Cabinet 49 (3^), Con- Qlusion 14.) The Malta (c) That, in view of the altered situa­ Const it ution tion in the Mediterranean, the Malta Bill­ Constitution Bill (which was reported to be in readiness for introduction) could be held over for the time being

(Previous Reference: Cabinet 41 (35), Con­ clusion 3 .)

( rjv ATLANT 10 5. The Cabinet had before them a Joint Memorandum AIR ROUTE. by the Chancellor of the Exchequer and the Secretary f previous of State for Air ' CP.-22.8 (35)) on the subject of Reference: Cabinet 4? the Atlantic Air Route, reporting that a British (35), Con­ jlusion 7.) Delega-tion had been in conference at Ottawa during

the past ten days with representatives of the Canadian,

Newfoundland and Irish Free State Governments, when

certain proposals were formulated to serve as the basis

of an agreement between the United Kingdom, Canadian

and. Irish Free State Delegations, whereby they might

present a. united front in their forthcoming discussions

at Washington. These proposals had been considered at

the draft stage by the Inter-Departmental Committee on

International Air Communications, and the United

Kingdom Delegation had been authorised, with the

approval of the Secretary of State for Air, to conclude

an agreement on the lines suggested, on the understand­

ing that it would be subject to the final approval of

the several Governments concerned,. A Report on the

position by the Committee was appended to the Memo­

randum, and, in the light of the observations set out

therein, the two Ministers sought. Cabinet approval for

the endorsement of the provisional agreement reached

at Ottawa. It was desirable that the United Kingdom

Delegation should be able to pursue their discussions

at Washington in the knowledge that the Ottawa agreement

had been approved .

The Secretary of State for Air reminded, the

Cabinet that at the Meeting referred to in the margn

he had been asked to arrange for a technical survey

of alternative bases for -aerodromes for the eastern

terminus of the Atlantic Air Route to be carried out

at once in the Irish Free State and Northern Ireland

respectively, and that he should keep in touch with the Prime Minister of Northern Ireland on the subject.

A technical survey had now been made by representa­ lives of the Air Ministry, in consultation with representatives of the Irish Free State and Northern

Ireland. The gist of the conclusions reached was that neither of the sites hitherto contemplated, namely, Galway and Lough Poyle, was suitable.

The most suitable sites were on the Shannon, in the

Irish Free State, and on Lough Neagh, in Northern

Ireland' but the former had the advantage of shortening the route by 80 miles . This answered a doubt expressed by Lord Craigavon, who, however, had made clear that he would not ask a Transatlantic airman to fly an extra unnecessary mile.

In the course of a short discussion it was mentioned that the agreement between the firms would be for 15 years, and that it was probable that the agreement between Governments would be for a longer duration, though nothing had been settled.

The Cabinet agreed —

(a) To give their approval for the endorsement of the provisional agreement reached at Ottawa, as recorder5 in CP.-822 (35):

(b) That the Secretary of State for Dominion Affairs should so inform the Delegation in Canada:

(c) That the Secretary of state for Air should be authorised t.n i nfn-rm Lord Craigavon of the. fptit? AIR 6. The Cabinet had before them a Memorandum by NAVIGATION ACT, 1920. the Secretary of State for Air (CP.-811 (35)) ashing

Bill to his colleagues to approve the principles of a Bill Amend and Supplement, which had been prepared for the purpose of amending

and supplementing in certain particulars the Air (Previous Reference: Navigation Act, 1920, and to authorise its reference Cabinet 30 (34), Con- to the Committee of Rome Affairs. For political elusion 5 .) reasons he thought it would be expedient to introduce

fblsdV, the Bill in the ^ouse of Commons .

In the course of a short discussion the

President of the Board of Trade mentioned that his

Department proposed to keep in touch with the insurance interests in connection with this Bill. The Cabinet approved the principles of the Air Navigation Bill and agreed that it should be referred to the Committee of Home Affairs, ^EMPLOYMENT 7. The Cabinet had before them a Joint Memorandum ASSISTANCE f mgMPORARY by the Minister of Health and the Secretary of State PROVIS TONS) (jib.3) BILL. for Scotland (CP.-223 (35)) covering a draft Bill

to authorise the continuance of grants to Public (Previous Reference: Assistance authorities on the present basis for a . Cabinet 48 (35), Con­ further period of six months pending the legislation clusion 12.) necessary to give effect to the Government"s decisions

F.R. b-^-fii) on Unemployment Assistance. As there would, be no

Meeting of the Committee of Nome Affairs before the

date on which the Money Resolution on which the Bill would be founded should be introduced, the two the Cabinet Ministers asked, with the Chancellor of the Exchequer*s agreement, to authorise the Bill without reference

to that Committee.

The Cabinet authorised the Minister of Health and the Secretary of State for Scotland to introduce the Money Resolution and the Unemployment Assistance (Temporary Provisions)

(No.3) Bill, submitted with C 0 P 0 223 (35), in the House of Commons without reference to the Committee of Home Affairs. I ttWEMFLOYMFNT 8. The Cabinet had before them a Memorandum by I INSURANCE FOR LGRICULTURF. the Minister of Labour (CP.-221 (35)) pointing out that it was most desirable, in accordance with the f previous Reference' policy already approved of extending Unemployment Cabinet 2 7 (35), Con­ Insurance to Agriculture, that unemployment benefit clusion 7.) should begin to be paid to agriculture by the early

winter of next year. For this purpose he asked

authority to have the details of a scheme of Unemploy­

ment Insurance for Agriculture further considered by

the Cabinet Committee so far as necessary, and to

submit a Rill as soon as possible to the Committee

of Home Affairs with a view to approval by the

Cabinet and introduction before the Christmas Recess-.

The Cabinet approved the proposals of the Minister of Labour as set forth above. itrg GROWN 9. The Cabinet had before them a Memorandum by RjlDS BILL the Minister of Agriculture and Fisheries (Commissioner

[Previous ( ex officio) of Crown Lands) (CP.-284 (35)) , seeking /Reference: I Cabinet 55 approval for the introduction of a Grown Lands Bill I (35), Con- I elusion 7.) at an early date to deal with a site adjoining Richmond Terrace in Whitehall, on which the Office of Works

proposed to erect an extension of the Headquarters of

the Metropolitan Police: to regularise certain transfers

of the management of portions of Regents Park from

the Commissioners of Crown Lands to the Commissioners

of Works: and to include various amendments of the

Crown Lands Acts which had been found to be desirable.

The Cabinet approved the proposals of the Minister of Agriculture and Fisheries as set forth in CP. 224 (35) and summarised above* CABINET PAPERS. 10. The Cabinet had before them a Most Secret Note

Retention of by the Secretary to the Cabinet (CP.-218 (35)) covering by Ministers on leaving a Report on the action taken by the Cabinet Office to Office . give effect to the Conclusion mentioned in the margin

(Previous respecting the retention by Ministers on leaving office Reference: Cabinet 11 of their Cabinet Papers. (34), Con­ elusion 5.) The Cabinet approved the Report by

, .s the Secretary to the Cabinet attached

F:K.5i*(U)lo t o c .p. 218 (35). EMORIAL TO THE 11. The Cahinet gave formal approval to the TATB ADMIRAL OP

^ 3 FLEET EARL First Lord of the Admiralty to make arrangements for ftLlCOE. a national memorial to the late Admiral of the Fleet previous Earl Jellicoe, the details of which had been approved Reference: Cabinet 11 (31) by the Ministers concerned. The First Lord was Conclusion IS). asked to keep in touch with the First Commissioner

of Works in the latter stages of the memorial

with a view to avoiding some difficulties

that had arisen in the case of the memorial to

Field Marshal Earl Haig. PENSIONS 12. The Cabinet had before them a Memorandum by the (GOVERNORS OP DOMINIONS Secretary of State for the Colonies (C.P.-215 (35)) ETC.) BILI seeking authority to re-introduce the Pensions

(Previous (Governors of Dominions etc.) Bill at the earliest Reference: Cabinet 38 possible date during the present Session. The Bill (35), Con­ clusion 8.) had already been read for the first time, but the

dissolution, of Parliament had rendered it impossible

to make further progress during last Session.

The Cabinet authorised the Secretary of State for the Colonies to re-introduce the pensions (Governors of Dominions etc.) Bill at the earliest possible date during the present Session.

2, V/hitehall Gardens, b,w. 1. ,

4th December, 1935. THIS DOCUMENT IS THE PROPERTY OF HIS BRITANNIC MAJESTVS GOVERNMENT ^ ^ g

Printed for the Cabinet. November 1935.

SECRET Copy No. i O H.A.C. 11th Conclusions (35).

CABINET.

COMMITTEE OP HOME AFFAIRS 11 (35).

CONCLUSIONS of a Meeting of the Committee held in Committee Room " A. House of Lords, on Thursday, November 28. 1935, at 5-30 P.M.

Present:

The Right Hon. VISCOUNT HAILSHAM, Lord Chancellor (in the Chair).

The Right Hon. Sir JOHN SIMON, The Right Hon. Sir GODFREY COLLINS, G.C.S.I., K.C.V.O., O.B.E., K.C., K.B.E., C.M.G., M.P., Secretary of M.P., Secretary of State for the State for Scotland. Home Department. The Right Hon. OLIVER STANLEY, M.C., The Right Hon. Sir H. KINGSLEY M.P., President of the Board of WOOD, M.P., Minister of Health. Education. Mr. W. S. MORRISON, M.C., K.C., M.P., The Right Hon. Sir THOMAS INSKIP, Financial Secretary to the Treasury. C.B.E., K.C., M.P., Attorney- General. Sir DONALD SOMERVELL, O.B.E., K.C., Captain the Right Hon. H. D. M.P., Solicitor-General. MARGESSON, M.C., M.P., Parlia­ mentary Secretary to the Treasury.

The following were also present:

The Most Hon. the MARQUESS OF The Right Hon. WALTER E. ELLIOT, ZETLAND, G.C.S.I., G.C.I.E., Secre- M.C., M.P., Minister of Agriculture tary of State for India. and Fisheries. Captain D. EUAN WALLACE, M.C., Mr. GEOFFREY LLOYD, M.P., Parlia- M.P., Secretary, Department of mentary Under-Secretary of State Overseas Trade. for the Home Department. Dr. E. L. BURGIN, M.P., Parliamentary Lieutenant-Colonel A. J. MUIRHEAD, Secretary, Board of Trade. M.C., M.P., Parliamentary Secretary, Ministry of Labour Sir MAURICE GWYER, K.C.B., K.C.S.I., Sir JOHN E. SHUCKBUKGH, K.C.M.G., K.C., First Parliamentary Counsel. C.B., Assistant Under-Secretary of State, Colonial Office. Mr. E. J. MAUDE, C.B., Deputy Secre- Mr. L. A. J. GRANVILLE RAM, CB.,. tary, Ministry of Health. Second Parliamentary Counsel. Mr. H. L. FRENCH, C.B., O.B.E., Second Mr. J. M. SPAIGHT, C.B.E., Principal Secretary, Ministry of Agriculture Assistant Secretary, Air Ministry. and Fisheries. [12404] 2

Mr. E. H. HILL, C.B., Principal Mr. S. P. Low, Solicitor, Board of Assistant Secretary, Ministry of Trade. Transport. Mr. A. D. STOCKS, C.B., O.B.E., Legal Mr. G. R. HILL, C.B., Parliamentary Adviser and Solicitor, Ministry of Counsel. Agriculture and Fisheries. Mr. J. A. STAINTON, Parliamentary Mr. H. C. GORDON, Assistant Secretary Counsel. War Office. Sir V. DAWSON, K.C.I.E., Assistant Mr. H. NAPIER, Principal Private Secretary, India Office. Secretary to the Postmaster-General. Mr. F. E. WATERS, Principal, General Mr. G. H. D. PRYOR, Principal, Mines Post Office. Department. Mr. A. E. ELLIS, Parliamentary Mr. J. ST. C. LINDSAY, Parliamentary Counsel. Counsel Office. Mr. J. ROWLATT, Parliamentary Mr. C. J. HARRIS, C.B.E., Private Counsel Office. Secretary to the Parliamentary Secretary to the Treasury.

Sir R. B. HOWORTH, K.C.M.G., C.B., Secretary.

Mr. W. D. WILKINSON, D.S.O., M.C., Assistant Secretary.

Legislative 1. THE Committee had before them a Note by the Secretary Programme for (Paper H.A. 30 (35) ) covering lists of Bills suggested by Depart­ the 1935-36 Session. ments for the Parliamentary Session 1935-36. The Committee adopted the provisional classification in H.A. 30 (35), subject to certain alterations and additions. In the course of discussion attention was drawn to the following matters : —

The Parliamentary Secretary to the Treasury emphasised the great importance of a First Reading being obtained before Christmas, 1935, in the case of as many as possible of the Bills mentioned in the King's Speech on the Opening of Parliament.

The Committee were informed by the Secretary of State for India that for technical reasons it was very desirable that the discussion of the Orders mentioned in List B (ii) should be opened in the House of Commons rather than in the House of Lords.

(Reference In view of the altered situation in the Mediterranean, the Cabinet 41 (35) Committee agreed to reserve for the Cabinet the question whether 3 -) the Bill to repeal the Malta Constitution should now be treated as an essential Bill, the early passage into law of which is urgently required.

The Home Secretary informed the Committee that he would withdraw the Factories Bill from the 1935-36 legislative programme on the understanding that time would be found for the Bill in the 1936-37 Session.

With reference to Cabinet 49 (35), Conclusion 14, the Committee agreed to recommend the Cabinet to authorise the immediate reintroduction of the Employment of Women and Young Persons Bill and the Hours of Employment (Conventions) Bill. The suggestion was made that certain Bills appeared suitable

for introduction by Private Members. The Committee's suggestions ( in regard to this point have been noted in the '' Remarks '' column of the attached A nnex. The Committee agreed— (a) To recommend the Cabinet to adopt the following classifica­ tion of the Bills named in Paper H.A. 30 (35), on the understanding that it will be for the Cabinet to determine the order of priority and relative importance of the Bills within each of the respective lists :— (A) Annual or Compulsory Bills. (B) Urgent or Essential Bills and Orders in Council (other than those named in (A) above). (C) Useful Bills, mainly non-controversial. (D) Other Bills not yet ready, or Bills required in certain events. (E) Consolidation Bills. (b) To recommend the Cabinet to authorise the immediate reintroduction of the Employment of Women and Young Persons Bill and the Hours of Employment (Conven­ tions) Bill. (c) To draw the attention of the Cabinet to— (i) The importance of obtaining a First Reading before Christmas, 1935, in the case of as many as possible of the Bills mentioned in the King's Speech, (ii) The question of the Bill to repeal the Malta Constitution.

2. The Committee had before them a Note (Paper HA. 31 Preparation of (35)) by the former Financial Secretary to the Treasury, covering Parliamentary a Treasury circular of the 3rd April, 1935, relating to the Blllf?' preparation of Parliamentary Bills. The Financial Secretary to the Treasury, after briefly summarising the contents of the circular, suggested that the Home Affairs Committee should draw the attention of Departments to it. The Committee agreed— To take note of the Memorandum by the Financial Secretary to the Treasury (Paper H.A. 31 (35)), covering the Treasury circular of the 3rd April, 1935, relating to the preparation of Parliamentary Bills, and to invite the attention of Departments to it.

3. In accordance with Cabinet 47 (35), Conclusion 8, the Government of Committee had under consideration a Memorandum by the Secretary India (Reprint­ of State for India (H.A. 29 (35)) covering the draft Government ins) BiIL of India (Reprinting) Bill, the object of which was to enable the Government of India Act to be divided into two portions, one relating to India and one to Burma. The opportunity had also been taken to correct a few misprints and minor drafting errors in the original Act. The above Cabinet Conclusion authorised the Secretary of State for India to proceed with the Bill in the form approved by the Committee of Home Affairs, without further sanction from the Cabinet. In pursuance of Cabinet 47 (35), Conclusion 8, the Committee agreed— To authorise the introduction forthwith in the House of Lords of the Government of India (Reprinting) Bill in the form of the draft annexed to Paper H.A. 29 (35), subject to any drafting or other minor alterations that might be found necessary or desirable.

2 Whitehall Gardens, S.W. 1, November 29, 1935.

[12404] 4

ANNEX.

1935-36 SESSION.

Legislative Programme.

(A)—ANNUAL OR COMPULSORY BILLS.

Department. Bill or Subject. Required by.

Treasury 1. Public Works Loans, 1935 Christmas 1935.

2. Expiring Laws Continuance, 1935 ... Christmas 1935.

3. Consolidated Fund March 1936.

4. Finance July 1936.

5. Appropriation ... July 1936.

6. Isle of Man Customs... August 1936.

7. Public Works Loans, 1936 July, or possibly Autumn, 1936. 8. Expiring Laws Continuance, 1936 ... Christmas 1936.

War Office and Air 9. Army and Air Force (Annual) 30th April, 1936. Ministry

(B)—URGENT OR ESSENTIAL BILLS (OTHER THAN THOSE NAMED IN LIST (A ) ).

B (i).—BILLS WHICH MUST BECOME LAW BY CERTAIN DATES.

(Bills of which the principles have received Cabinet approval.)

Treasury 1. Unemployment Assistance (Tem­ Christmas 1935. porary Provisions) (No. 2) (Con­ tinuation). (Cabinet approval in principle is implied by the existing temporary legislation—see Cabinet 19 (35) 10)

2. Railway Guarantee. (Approved for Christmas 1935. A King's introduction. Reference Cabinet Speech Bill. 49 (35) 6)

3. Northern Ireland Unemployment 31st March, 1936. Insurance Agreement. (Cabinet 41 (35) 5)

India Office 4. Bill to secure reprinting of the Christmas 1935. Government of India Act, 1935, as two: separate Acts, one relating to India and the other to Burma. (Cabinet 47 (35) 8)

Ministry of Agriculture 5. Sugar. (Cabinet 40 (35) 7) 31st March, 1936. and Fisheries Board of Trade 6. Tramp Shipping Subsidy. (Cabinet 31st March, 1936. 49 (35) 9) Department. Bill or Subject. Required by.

Air Ministry 7. Air Navigation... July 1936. A 'King's Speech Bill. India Office 8. East India Loans Christinas 1936.

Board of Trade 9. Bill to give effect to the Geneva 23rd December, 1936. Red Cross Convention, 1929 Might be introduced in the House of Lords. Further progress would depend on its proving uncontroversial. Ministry of Agriculture 10. Agricultural (Levy Subsidy).. 31st October, 1936, as and Fisheries regards the beef pro­ visions. 31st March, 1936, as regards the milk provisions; if the Bill as a whole cannot be passed by the earlier date, it will accordingly be necessary to pass certain milk provisions as a separate Bill. 11. Crown Lands ... March 1936. Hybrid Bill.

B (ii).—ORDERS IN COUNCIL, &C, INVOLVING PARLIAMENTARY APPROVAL (REQUIRED BY CERTAIN DATES TOWARDS BRINGING INTO OPERATION THE GOVERNMENT OF INDIA ACT, 1935).

The Act provides for a large number of matters of detail to be prescribed by Order in Council, and further provides (Section 309) that " . . . . the Secretary of State shall lay before Parliament the draft of any Order which it is proposed to recommend His Majesty to make in Council under any provision of this Act, and no further proceedings shall be taken in relation thereto except in pursuance of an address presented to His Majesty by both Houses of Parliament " The following is a table of the Orders in Council, and other action involving Parliamentary approval, required in anticipation of, or for the purpose of, bringing into operation Part III of the Act. The list contains nothing relating to Burma and its separation, except the monetary Order in Council and the Burma Trade Agreement, although nearly every item in the list has its corresponding Burma provision. It need not, however, be anticipated that the India Office's demands on Parliamentary time will be proportionately increased; in almost all cases it should be practicable for Parliament to consider the Indian and Burma Orders simultaneously. Matters on which considerable debate appears probable are indicated by an asterisk. The dates given for the various parts of the programme are based on the assumption that Provincial Autonomy is to begin early in 1937.

Required by Christinas, 1935. * Order or Orders in Council setting up Sind and Orissa as separate Provinces, with the necessary provision for their temporary administration until "Provincial Autonomy starts (Sections 46 and 289).

Required about April, 1936. * Order in Council fixing the date of the commencement of Part III. * The electoral Order in Council for the Provincial Legislatures (Sections 61 and 291, Schedules 5 and 6). * Order in Council prescribing Excluded and Partially Excluded Areas (Section 91). (To be laid before Parliament not later than the 2nd February, 1936.) Required by the end of July, 1936. Order in Council dealing with determination of allowances of all descriptions for Governor and Staff, and customs privileges tor Governors (Section 48, Schedule 3 (c/. Section 305)). * Draft of Instruments of Instructions to Governors (Section 53). Order in Council dealing with determination of date of separation of Aden and provision for its government (Sections 94 (2) and 288). Order in Council dealing with prescription of percentage of income-tax to be assigned to Provinces and States and of method of distribution (including fixing of the two "prescribed periods " under sub-section (2)) (Section 138). Order in Council dealing with prescription of amount of jute export duty to be assigned to Bengal (if in excess of 50 per cent.) (Section 140 (2)). Order in Council dealing with grants-in-aid to deficit Provinces (Section 142). 6

Required by the end of July, 1936—(continued). Order in Council dealing with relations between Indian and Burman monetary systems (Section 158). Order in Council dealing with provision for relief from Indian income-tax in respect of income taxed in Burma :(Section 159). * Order in Council dealing with Burma-Indian Trade Agreement (Section 160). Order in Council dealing with conditions of service, duties and powers of Auditor-General (Section 166 (2) and (3)). Order in Council dealing with duties of Home Auditor (Section 170 (3)). Order in Council dealing with modification and adaption of East India Loans Acts (Section 178 (2)). Order in Council dealing with salaries, allowances, leave and pensions of Federal Court Judges (Section 201). Order in Council dealing with fixing of maximum number of Judges (including Additional Judges) of each Provincial High Court (Section 220). Order in Council dealing with salaries, allowances, leave and pensions of Judges of High Courts (Section 221). Order in Council dealing with specification of Defence appointments to be made by , or in some other manner directed by the Crown (Section 233). Order in Council dealing with vesting in Commissioners of, and other arrangements connected with, Family Pension Funds (Section 273). Order in Council dealing with modification of Superannuation Acts and Rules in their application to Secretary of State's establishment (Section 281 (2)). Order in Council dealing with conditions as to commutation of India Office pensions (Section 281 (6)). Order in Council dealing with determination of proportion of India Office pensions to be paid from Federal revenues (Section 282). Order in Council dealing with adaptation of existing Indian laws and of existing Acts of Parliament (Sections 293 and 311 (5)).

B (iii).—OTHER ESSENTIAL BILLS.

(Bills of which the principles have received Cabinet approval.)

Department. Bill or Subject. - Remarks.

Colonial Office 1. Bill to repeal the Malta Constitu­ Further Cabinet considera­ tion. (Cabinet 41 (35) 3) tion required. Board of Trade 2. Cotton Spinning Industry. (Ap­ A King's Speech Bill. proved for re-introduction. Ref. : ' Cabinet 49 (35) 8) Board of Education 3. Education— A King's Speech Bill. (i) Raising the school age, with exemptions. (ii) Empowering Local Authorities to make building grants under conditions to volun­ tary schools. (Cabinet 49 (35) 11) Scottish Office 4. Education (Scotland). Raising the A King's Speech Bill. school age, with exemptions. (Cabinet 49 (35) 7) Ministry of Labour 5. Unemplovment Insurance for Agri­ A King's Speech Bill. ' culture". (Cabinet 27 (35) 7) Mines Department 6. Bill to deal with the unification of A King's Speech Bill. coal-mining royalties. (Cabinet 46 (35))

(Bills of which the principles have not received Cabinet approval.)

Mines Department 7.' Bill to deal with the position arising out of the ' Consett case Ministry of Agriculture 8. Tithe and Fisheries Ministry of Labour 9. Unemployment Assistance^ A King's Speech Bill.

* Time should also be allowed for a Resolution under Section 52 (4) of the Unemployment Act, 1934, approving draft Unemployment Assistance Regulations. (G)—Useful Bills, mainly Non-Controversial. (Bills of which the principles have received Cabinet approval.)

Department. Bill or Subject. Remarks.

Home Office 1. Petroleum (Transfer of Licences). (Cabinet 25 (35) 9) 2. Hydrogen Cyanide. (Cabinet 47 "(35) 10) 3. Employment of Women and Young Immediate reintroduction Persons. (Cabinet 49 (35) 14) recommended. 4. Hours of Employment (Conven- Immediate reintroduction fcions). (Cabinet 49 (35) 14) recommended. Scottish Office 5. Piers and Harbours (Scotland). (Cabinet 30 (34) 12) Colonial Office 6. Pensions (Governors of Dominions, Awaiting further Cabinet &c). (Cabinet 34 (35) 14) consideration. Board of Trade 7. "Weights and Measures. (Approved for re-introduction. Bef. : Cabi­ net 49 (35) 8) Ministry of Agriculture 8. Diseases of Fish. (Cabinet 3 (34) and -Fisheries, in con- 12) junction with Scottish Office

Ministry of Health 9. Antimony Ware. (Cabinet 7 (34) 7)

(Bills of which the principles have not received Cabinet approval.)

- Lord Chancellor ... 10. Land Begistration Ilome Office 1.1. Prevention of Crimes

12. Firearms (Amendment)

Scottish Office ...... 13. Sheep Stock Valuation (Scotland) ... Numbers 13 to 19 to pro­ ceed only if wholly 14. Public Becords (Scotland) uncontroversial. The Secretary of State for 1.5. Deer (Scotland) Scotland will consider whether these Bills are l(i. Land Settlement (Scotland) suitable for introduction by Private Members. 17. Local Authorities Expenses (Scot­ land) 18. Valuation (Scotland)

19. Police (Scotland)

Ministry of Agriculture 20. Regulation of Commons Might be suitable for and Fisheries introduction by a Private Member. 21. Bill to establish a .local authority A King's Speech Bill. midwifery service C-.R. SWSSiy. 22. Local Government and Other Officers' Superannuation . 23. Bill to regulate the advertisement of Might be suitable for patent medicines . - introduction by a Private Member. 24. Bill to carry out the recommenda­ tions of a Departmental Com­ mittee - on the composition and Ministry of Health description of food 25. London Bating

26. Private Street Works

27. Sites

General Post Office 8

(D)—Other Bills not yet ready, or Bills required in certain Events.

(Bills of which the principles have not received Cabinet approval.)

Department. j Bill or Subject. Remarks.

Treasury 1. Savings Banks

2. Bill dealing with the finance of certain public works, &c. 3. Bill dealing with industrial assurance

4. Bill dealing with insurance on the lives of children under ten Board of Trade ... 5. Bill for regulating iron and steel Early in 1936, unless it is imports found possible to iii­ corporate the necessary provisions in the Finance Bill. 6. Trade Marks and Industrial Property ",/9, 30 (Ji) J Ministry of Agriculture 7. Agricultural Marketing (Miscel­ and Fis^ v ies laneous Provisions) 8. Rabbits Might be suitable for introduction by a Private Member. 9. Sea Fisheries Regulation

Ministry of Transport 10. Highway Administration (Trunk Roads) 11. Bill to amend the Temporary In­ crease of Charges Act 12. Bill dealing with the Railway Freight Rebate Fund

(E)—Consolidation Bills.

(Bills of which the principles have not received Cabinet approval.)

Home Office 1. Coinage Offences

2. Firearms Consolidation will be essential after the Fire­

- arms (Amendment) Bill mentioned in List (C) has passed, and before it comes into force. Scottish Office 3. Children and Young Persons (Scot­ land) 4. Private Legislation Procedure

Ministry of Health 5. "National Health Insurance

6. Widows', Orphans'* and Old Age Contributory Pensions 7. Old Age Pensions

; ;J i " ' ...'v . ; ,.'^-"' ' *' -'':,--'' "' ' 8. Housing

9. Public Health (consolidation with amendment) Air Ministry 10. Air Navigation

O