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Catalogue Reference:CAB/23/63 Image Reference:0004 (THIS DOCUMENT IS THE PROPERTY OF HIS BRITANNIC MAJESTY'S gMT ) oECRST.- C O M J:?o. / CABINET 4(50) eting of the Cabinet to be Held at No,10, Downing Street, S.W.1., on Wednesday, 22nd January, 1930, at 10,0 a.o.

1. PQRBIfiN AFFAIRS . If required.

2 ' ^VAL^CONSTRUCTION PROGRAMME, 1029,* (To be raised by the Prime Minister) .

3. SINGAPORE BABE * MALAY STATES CONTRIBUTION.

Memorandum by the First Lord of the Admiralty.

(CP. 20(30) - circulated herewith) .

4. UNEMPLOYMENT POLICY.. Memorandum by the . (CP.21 (30) - Circulated herewith)

TO TAKE NO 12! OF;­

5 * SPEECH TO BE ISLIYIERED. BY THE GOVERNOR. GENERAL OF INDIA AT THE OPENING OF THE INDIAN LEGISLATURE ON 25TH JANUARY/ 1930.. Memorandum by the Secretary Q.f State for India. (CP, 19(50) - Circulated herewith) C PRIVATE MEMBERS' BILLS. Friday,,, .24th January... 1. Blasphemy Laws (Am&v) 2nd Reading.

(Mrk Thurtle (LA)] 3-, Ho using: 2nd Reading, (Sir R. G-ower (C))

FridajyVi 51st January^. 3. Cahal Boats: 2nd Reading. (Mr, Gosling (LA)) 4. Blind Persons: 2nd Reading. (Mr, Groves (LA)).

(Sgd.) T* JONES,

Deputy Secretary, Cabinet, I, Whitehall Gardens, S.W.1, 20th January, 1930. (THIS-DOCUMEMT IS' THE PROPERTY OF HIS BRITANNIC MAJESTY.' S GOVERNMENT) . S E C R B T. Copy No. /*

CABINET 4(50). Meeting of the Cabinet held at 10, Downing Street, S.W.I. on Wednesday January 22nd, 1930, at 10 a,tn.

PRESENT: - The Right Hon. J. Ramsay MacDonald, M.P., Prime Minister. (In the Chair The Right Hon The Right Hon. Philip Snowdeni M.P., , M.P., Chancellor of the Secretary of fitate for Exche qn er. Foreign Affairs. The Right; Hon. The Right Hon. J.H. Thomas, M.P., Lord Passfield, Secretary Lord Privy Seal. of State for Dominion Affairs and Secretary of State for the Colonies. The Right Hon. The Right Hon. Lord Parmoor of Frleth, Lord Sankey, G.B.E.., K.C.V.O., K.C., Lord . President of the Council. The Right Hon. The Right Hon. J.R. Clynes, M.P., W. Wedgwood Benn, D.S.O.,. Secretary of State for D.F.C., M.P., Secretary of Home Affairs. State for India. The Right Hon.. Brig,-Gen, The Right Hon. , C.B.E., M.P*, Lord Thomson, C.B.E., D.S.O. Secretary of State for Secretary of State for War. Air. The Right Hon. The Right, Hon. , M.P., , M.P., Minister of Health. Minister 4f Labour. The Right Hon. The Right Hon. Noel , M.P., Sir Charles Trevelyan, BT-, Minister of Agriculture M.P., President of the and Fisheries.. Board of Education. The Right Hon. The Right Hon. William Graham, M.P., A.V. Alexander, M.P., President of the Board First Lord of the of Trade. Admiralty. The Right Hon. The Right Hon. , M.P.., , M. F., Secretary of State for First Commissioner of Scotland , Works.

Sir .M.P...A. Hanker, G..C..B., G.C.M..G. * * * * . ,.....Secretary. CABINET 1. The Prime Minister said, he hoped to be able to BUSINESS Cabinet DURING THE NAVAL CON- k-eep in touch with/business during the of PERENCE. the Naval Conference, but he asked the (Previous Chancellor of the Exchequer to assist him by keeping Reference: Cabinet 1 ­ a close watch on the business in general. (SO), Con­ elusion^.)

-1­ 2* The Prime Minister reported that he had received a letter from the First. Lord of the Admiralty, dated January 15, 1930, enclosing a Memorandum from the First Sea Lord setting forth the views of the Naval Lords of the Admiralty which they were anxious the Prime Minister should have before him In connection with the decision to be taken on the Navy Estimates for 1930. Extracts from the Memorandum were read to the Cabinet. The Cabinet took note of the letter and Memorandum, which it was decided should be attached as an Appendix to these Conclusions. THE SINGAPORE 3. The Cabinet had before them a Memorandum by the NAVAL BASE. — First Lord of the Admiralty (Paper CP.-20 (30)) on The Malay States' Contribution. the subject of the Malay States' contribution to the cost of the Singapore Naval Base. In this Memorandum (Previ cue Reference: it was pointed out that if the payment of the contri­ Cabinet 47 (29), Con­ bution during the next ten weeks, as proposed by the elusion 7.) High Commissioner for the Malay States, cannot be counted on, a supplementary Estimate for the Navy would be necessary. The deficit would have to be explained as resulting from the loss of the Malay money, and an embarrassing Debate on Singapore in the middle of the Naval Conference would probably result. On the other hand, a discussion in Malaya as to whether the consideration for the contribution has failed or no is only slightly less undesirable. The Memorandum contained the suggestion that a further telegram should be sent to the High Commissioner from the Colonial Office to the following effect:­ "Have referred your telegram of 1st January to His Majesty's Government, who think position cannot be fully understood. No decision has been taken affecting scope of scheme or date of completion. The precautionary slowing down of work pending Naval Conference can have no effect on that date. Decision to withhold contribution, therefore, appears premature unless it is precautionary on supposition that money would be lost in the event of results of Naval Conference leading to entire change of policy regarding Base. On this I am to assure you that His Majesty's Govern­ ment recognise that if scheme were abandoned or altered fundamentally contributions would have to be refunded or adjusted as mighrbe mutually agreed. In those circumstances it is thought no question of consultation ttith Rulers or Federal Council about present payment need arise. In opinion of His Majesty's Government it would be very undesirable for such a discussion on Base to arise in Malaya while Naval Conference is sitting and still more undesirable to have Parlia­ mentary Debate here as would be unavoidable if contribution actually budgeted for is not received" . -3­ After a short discussion the Cabinet agreed - That the Secretary of State for the Colonies should send a telegram to the High Commissioner of the Federated Malay States on the lines proposed by the Admiralty, accompanied, at his discretion, by a private tele­ gram . UNEMPLOYMENT 4. The Cabinet had before them a Memorandum by POLICY. the Lord Privy Seal (Paper CP.-21 (30)) on the (Previous subject of a speech he recently made at Reference: Cabinet 3 in which, after describing the general Unemployment (30), Con­ cltision 5.) Policy of the Government, he made an announcement as to the readiness of the City to consider sympathet­ ically the proposals that may be put for assisting the re-organisation of industry on sound lines. The Memorandum also contained particulars of the action the Lord Privy Seal is taking to follow up this pronouncement, and concluded by a statement that in certain quarters the over-riding cause of the rather sombre outlook in Employment is the fear that the Eudget may be an unfavourable one.

The Lord Privy Seal informed the Cabinet that since circulating his Memorandum he had been in touch with the Presidents of the principal Banks, four out of five of whom were supporting his policy. He communicated the names of a very strong Committee of Bankers which had been set up and which would assist him on the financial side, as well as of an equally strong Committee on the industrial side. Both Committees would meet twice a week. The Prime Minister instructed the Secretary to keep the Lord Privy Seal*s Memorandum on the Agenda, with a view to a discussion as soon as convenient. INDIA. 5. The Cabinet had before them the following Situation in. documents relating to the situation in India:- A Memorandum by the Secretary of State (Previous for India (Paper CP.-18 (30)) circu­ Reference: lating for the information of his Cabinet 3 colleagues a copy of a telegram from (30), Con­ the Government of India summarising elusion 7.) the political situation which "results from the meeting of the All-India National Congress held at Lahore at the end of December, and outlining the policy which they recommend should be pursued to deal with the violent move­ ments revolutionary activities and campaign of civil disobedience which they apprehend may result? also a copy of the reply which, after consult­ ing the Lord Chancellor and the President of the Board of Education, and obtaining the approval of the Prime Minister, the Secretary of State had despatched to the Government of India on the 17th January; as well as private telegrams to the Viceroy:

A Memorandum by the Secretary of State for India (Paper CP,-19 (30)) covering a copy of a speech to be delivered by the Governor-General of India on the 25th January, 1930, at the formal opening of the Indian Legislature, together with certain alterations which the Secretary of State had suggested. In this connec­ tlon the Secretary of State informed his colleagues that all his proposed amend­ ments had now been accepted by the Viceroy:

A Memorandum by the Secretary of State for India (Paper CP.-22 (30)) on the subject of the reaction of the Indian political situation on Indian Government securities, including the draft of a reply on the subject to a letter received froix Mr H.W.Holloway, of which a copy was also enclosed. In his draft letter the Secretary of State pointed out, inter alia, that His Majesty*s present Governmerit have no intention of allowing a state of things to arise in India In which repudiation of debt would become a practical possibility. While approving the general lines of the Governor- General' s speech, the Cabinet agreed — That the Secretary of State for India should confer with the Chancellor of the Exchequer in regard to the following points:­ (i) The following passage towards the end of the speech:­ "But it is no less my duty to make it plain that I shall not hesitate, if need he, to use whatever powers I or my Govern­ ment may command in the discharge of the responsibility imposed upon us for the effective preserv­ ation of law and order in India": (ii) The terms of the letter to be sent to Mr H.W,Holloway in regard to tne slump in Indian securities. BLASPHEMY LAWS. 6 . The Cabinet had before them a Bill to amend the Blasphemy Laws, to be introduced in the House of Commons by a Private Member on Friday, January 24th, 1930. The reported that he proposed to take a non-committal attitude in regard to this Bill.

-8­ HOUSING- 7. The Cabinet had before them the Housing Act, BILL. 1925, Amendment Bill, 1929, to be introduced in the (Previous House of Commons by a Private Member on Friday, Reference: Cabinet 2 January 24th, 1930. The object of this Pill is to (30), Con­ elusion 2.) make better provision for the improvement of unhealthy areas? to provide adequate compensation for business disturbance; and to make certain conse­ quential amendments to the Housing Act, 1925. The Minister of Health reported that the Bill was not a good one, and he would have to oppose some of Its provisions. THE CANAL 8. The Cabinet had before them a Bill to amend BOATS BILL. the Canal Boats Acts 1877 and 1884, to be introduced in the House of Commons by a Private Member on Friday, January 31, 1930. The Cabinet agreed to leave this question until the following- week.

/ THE BLIND 9. The attention of the Cabinet was drawn to the PERSONS BILL. Blind Persons Bill, to be Introduced by a Private (Previous Member in the House of Commons on January 31, 1930. Reference: Cabinet 24 No copy of the Bill was available. (28), Con­ elusion 10.) The Chancellor of the Exchequer reported that the Blind Persons Bill was open to strong objections from the financial point of view. THE GENERAL - 10. In view of the attitude of certain. Trade STOPPAGE OF 1926. Uniong towards the action taken by the Admiralty in The Position of accordance with the decision of the Cabinet in regard Established Admiralty to the position of Government employees who took Employees who took part. part .in the General Stoppage of 1926, the Cabinet agreed — (Previous Reference: That a Cabinet Committee, composed Cabinet 35 as follows — (29), Con­ cluslon 8.) The First Lord of the Admiralty (In the Chair), The First Commissioner of Works, The Financial Secretary to the Treasury — should review the question again and advise the Cabinet as to what should be their final attitude.

-12­ PROCEDURE OP 11. The Chancellor of the Exchequer reported that THE HOUSE OP COMMONS. a Private Member's Notice had been placed on the Order Paper in regard to the Sittings of Parliament. The proposal that the House should meet in the morning would be raised again, and the setting up of a Committee would be asked for. The Cabinet agreed — That the Government spokesman should not oppose the proposal for setting up a Committee. THE LONDON 12. A short discussion took place in regard to the NAVAL CCN- FERENCE. London Naval Conference. The Prime Minister reported that he was proceeding actively with the work of the (Previous Reference: Conference. The main difficulty was likely to arise Cabinet 1 (30), Con­ in connection with the Press. clusion 2.)

2, Whitehall Gardens. S.W.,1, , 1930. Lettor from the First Lord of the Admiralty to the Prims Minister.

15th January, 1930.

My Dear Prime Minister, I send you herewith a Memorandum which I have received from the First Sea Lord setting fcrth the views of my Uaval colleagues on the Board of Admiralty which they are very anxious that you should.-have before you in connection with the decision to be taken on the Wavy Estimates for 1930, Yours sincerely, (Signed) A.V. Alexander,

The Pit. Hon. 3. Ramsay MacDonald, M.P.

NAVAL CONSTRUCTION PROGRAMME 1929.

Re-port of Fighting Seryi.ces-Comm111ee.

MEMORANDUM BY THE FIRS T SEA LORD.

First^LordA The Naval Members of the Board of Admiralty understand that the Fighting Services Committee have decided to recommend to the Cabinet a drastic modification of the construction programme already presented to Parliament (Command 3283).

That programme made provision for the laying down during the 1929 financial year of ­ 3 Cruisers 1 Flotilla leadejr 8 Destroyers 6 Submarines 1 Netlayer and Target Towing Vessel 6 Sloops The Fighting Services Committee propose to the Cabinet that instead of the above the 1929 programme shall consist of ­ 1 Cruiser 1 Flotilla Leader 4 Destroyers 3 S ubmarines 4 Sloops.

In regard to this recommendation, the Naval Members of the 3oard of Admiralty deem it their duty to ask that the following representations may be put before the Prime Minister for communication to the Cabinet if he thinks proper.

CRUISERS. The question of adequate cruiser numbers is a vital one. Repeated investigations carried out and laid' before successive governments and Imperial Conferences have established the number of 70 cruisers as necessary for defending our sea communications in all parts of the world, the United States of America not being taken Into account as a possible enemy.

But our present number of cruisers is only 58, of which no fewer than 34 will reach the extreme age limit of 20 years and must pass out of service between now and 1940, so that merely on the basis of replacing losses, since it takes 3 years to build a cruiser, the programme years 1929 to 1936 inclusive ought to provide for 34 cruisers.

The Admiralty were requested, on the initiation of conversations in July last with the U.S.A., to give full consideration to the general peaceful international situation and to the great importance attached by the Prime Minister to the political effect of the Pact of Paris, the signing of which was to form the basis of the negotiations of tha Prime Minister. As a result, the Admiralty finally agreed that, twinng jnj^^^jAfiTrf^tijnrx^riri 1. the relevant poU-ti-cal.-factors, they could regard naval requirements , as satisfied for a limited period with a n-imber of 50 oruisars, provided proper provision was made in the meanwhile for the steady replacement of our war built cruisers which was an essential condition.

The Admiralty opinion was reported to the Dominions on the 15th September as follows ­ "in view of the general international position and the situation created by the Paris Pact, the Admiralty is satisfied that if agreement can be reached with the United States on the basis of present proposals, and the maintenance of the Washington ratios with other Powers, the security and interests of the British Empire are safe­ guarded and my technical and political advisers unanimously support the above proposals".

These proposals, reported to the Dominions and unanimously supported by the technical and political advisers of the Prime Minister, involved the completion of fourteen new cruisers by 1936, in replacement of eighteen wartime cruisers, and four ships of the "Effingham" Class. It was on this basis that the Washington conversations were initiated, and the Admiralty in accepting the number of 50 cruisers assumed that there would be no ­ question but that the necessary construction programmes of 2 cruisers in 1929 and 3 cruisers in 1930, 31, 32 and 33, would be authorised.

ISven so, it was recognised that there may be great difficulty in maintaining the total of 50 cruisers after 1936, in view of the fact that 14 cruisers will reach the extreme age limit between 1936 and 1940.

The Fighting Services Committee have, however, recommended to the Cabinet that the 1929 programme should be only 1 cruisersinstead of the "two necessary to comply with the Prime Minister1s policy at Washington.,

DLSTROZLRS. The position in regard to destroyers is certainly equally, if not more, unsatisfactory than, that In regard to cruisers.

The trend of negotiations has made it clear that the most we can hope for is an agreement as a total limitation figure of something "between 200,000 tons and 150,000 tons.. The latter figure indeed assumes such a low figure for, foreign submarine tonnage as to rule it out for practical purposes in view of the attitude of branee and Japan on the submarine guest ion..

On the 31st December, 1936, allowing for all approved programmes, our under-age destroyer tonnage will have shrunk to a figure of 38,581 tons. If, therefore, we assume agreement upon even the lowest possible figure of 150,000 tons, this means that In five programme years we ought to complete 111,419 tons of destroyers,, giving an annual programme of 22,300 tons.

Again, taking full account of the general situation, the Admiralty have suggested an annual programme of only 12,600 tons, approximately, giving us each year a new flotilla of 1 leader and 8 destroyers. :

- The Fighting Services Committee, however, recommend that the 1929 programme should make provision for only 7,000 tons approximately towards our deficit of 111,419 tons. This amount is entirely inadequate for defensive requirements, and places the British Empire in a position of considerable inferiority to Japan. is.'ith no further construction, Japan will have 72 under-age destroyers of a tonnage of 95,305 tons in 1936 as compared with our 35 destroyers of a tonnage of 45,581 tons.

In the foregoing remarks the Naval Members of the Board of Admiralty have endeavoured to draw attention to the serious situation that will result from the cancellation of the entire cruiser programme for 1928 and the suggested reduction in all types for 1929.

In their opinion, the inclusion of two cruisers and a complete flotilla of destroyers iQ the 1929 programme is a necessity for the maintenance of the Fleet at the lowest level considered either reasonable or safe, and whatever the result of the London Conference, that necessity will remain.

It Is understood from the report of the Fighting Services Committee that the Chancellor of the Exchequer only consented to the proposed skeleton 1929 programme on the understanding that there would be a further large reduction in Naval Estimates effected mainly by :­ (a) Suspending for 1930 the building up of the naval oil fuel reserve; (b) Cancelling the new flights required for the Fleet Air Arm both in 1929 and 1930. The Naval Members of the Board of Admiralty therefore deem it their duty to advise that a steady adherence to the policy of the Oil Fuel Reserve, as approved by the Committee of Imperial Defence, and an adequate development of the Fleet Air Arm, so as to keep our naval air strength comparable to that of other Powers, are both matters of urgent importance if the Fleet is to be capable of fulfilling its responsibilities in case of emergency.

(Signed) C.1L, Madden.

8th January, 1930.