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THIS DOCUMENT IS T H E PROPERTY OP H I S BRITANNIC M A J E S T V S GOVERNMENT % 0 7

Printed for the War Cabinet. February 1940.

S E C R E T . Copy No . 4 ^

W . M . (40)

42nd Conclusions.

TO B E K E P T U N D E R L O C K A N D K E Y .

I t is reques ted t ha t special ca re may be taken to ensure the secreoy of this document .

W A R C A B I N E T 42 (40) .

CONCLUSIONS of a Meeting of the War Cabinet held at 1 0 Downing Street, S.W. 1 , on Thursday, February 1 5 , 1 9 4 0 , at 1 1 - 3 0 A.M.

P r e s e n t :

The R i g h t H o n . N E V I L L E CHAMBERLAIN, M . P , P r i m e Min i s t e r (in the Chair). The R i g h t H o n . V I S C O U N T H A L I F A X , The R i g h t Hon. S i r S A M U E L H O A R E ,

Secre ta ry of S t a t e for Fore ign B t , M . P , Lord P r i v y Seal. Affairs.

A d m i r a l of the Fleet the R i g h t H o n . The R i g h t Hon . S i r KLNGSLEY W O O D , L O R D C H A T E I E L D , Min i s t e r for Co- M . P , Secretary of S t a t e for A i r . o rd ina t ion of Defence.

T h e R i g h t Hon . L O R D H A N K E Y , Min i s t e r w i thou t Por t fo l io .

The following were also presen t :

T h e R i g h t H o n . S i r J O H N A N D E R S O N , The R i g h t Hon . M A L C O L M M A C D O N A L D , M . P , Sec re ta ry of S t a t e for the M . P , Secretary of S ta t e for the H o m e D e p a r t m e n t - and Min i s t e r of Colonies (Items 1 and 2). H o m e Secur i ty .

The R i g h t H o n . E R N E S T B R O W N M . P , S i r H O R A C E J . W I L S O N , P e r m a n e n t Min i s t e r of L a b o u r and National. Secre tary to the Treasury . Service (Item 3 ) .

Genera l S i r W . E D M U N D I R O N S I D E , V ice -Admi ra l T. S. V. P H I L L I P S , Chief of the I m p e r i a l Genera l Staff D e p u t y Chief of Nava l Staff (Items 5 (Items 5-9). and 6 ) .

Secretariat. Si r E D W A R D B R I D G E S . Mr . F . H E M M I N G . Mr . W. D . W I L K I N S O N . W i n g Commander W . E L L I O T . Mr . G. N . F L E M M I N G .

[ 2 0 8 4 1 ]

W A R C A B I N E T 42 ( 4 0 ) .

Minute No.

1

CONTENTS.

Subject. W e s t Ind i e s : R e p o r t of Royal Commission

Publication of recommendations. Short-term relief programme. Announcement of the Governments intention

of the recommendations.

. . .

to act in the spirit

Page 331

2 The Colonial E m p i r e : S ta tement of Pol icy onment a n d W e l f a r e and on Colonial Research

Development and welfare. Research. Mandated territories.

Develop­ . . . . . . 332

3 Liability of British subjects in France

Great Britain.

Compulsory M i l i t a r y Service and French citizens in

334

4 The A i r S i t u a t i o n . . . 335

5 The Nava l S i t ua t i onSearch for German merchant vessels. Shipping losses. U-boat sunk: U-boat sunk on the 12th February.

335

6 T h e M i l i t a r y S i t u a t i o nWestern front. Finland. .

336

7 Ass is tance to F in l andSupplv of aircraft. Pilots." Field guns and ammunition. Railway difficulties. Approach to France.

336

8 I t a l yEconomic relations.

­ . . . . . . 338

9 I t a l yInternal situation.

. . . . . . . . . . . . 338

West Indies: Report of Royal Commission. Publication of recommenda­tions. (Previous Eef erence: W.M. (40) 27th Conclusions, Minute 2.)

Short-term relief programme.

1. The W a r Cabinet had before them a Memorandum by the Secre tary of S ta t e for the Colonies ( W . P . (G.) (40) 45) covering a summary of the recommendat ions of the West I n d i a Royal Commission.

The Secretary of State for the Colonies recalled t h a t on the occasion refer red to in the marg in the W a r Cabinet had decided to wi thhold approva l to the publ ica t ion of the R e p o r t ; a n d h a d inv i ted h i m to communicate th is decision to Lord Moyne a n d to the Governors of the W e s t I n d i a n Colonies.

T h e members of the Commission had been d isappoin ted a t the W a r C a b i n e f s decision, a n d disagreed w i t h it. Provided , however, t h a t they were not associated w i t h the decision, they were wi l l ing to help the Government , and had agreed to p r epa re a s ta tement of the i r Recommendat ions which could be published on the Commiss ion^ own au thor i ty .

The Secre tary of S t a t e proposed tha t the Command P a p e r should consist of th i s Summary , plus the names and terms of reference of the Commission, the i r i t inerary , and a le t ter from himself to the Commission on the subject of the non-publ ica t ion of the body of the i r Repor t . The case for publ i sh ing the Commiss ion^ recommendat ions was, he thought , overwhelming. I f accompanied by an announcement of the remedial measures to be taken, i t would go fa r to allay the suspicions to which the non­appea rance of the body of the Repor t would inevitably give r ise.

The Prime Minister sa id t ha t he found no th ing in the summary to which the W a r Cabine t need take exception. The summary would, he thought , be generally accepted as ample evidence of the comprehensive way in which the Commission h a d invest igated the social, educat ional , economic, ag r i cu l tu ra l and other problems of the I s l ands . The Commissioners would cer ta inly not be open to the reproach of t imid i ty . They need not fear t h a t thei r work would suffer in the publ ic es t imat ion by reason of the non-publ ica t ion of the body of t he i r Repor t . There was general agreement w i t h th i s view.

The Secretary of State for the Colonies said t h a t he h a d considered w h a t exp lana t ion should be given for non-publ ica t ion of the body of the Repor t . I t seemed the best solution to give no reason a t a l l in public. Pr iva te ly , however, the press migh t be told t h a t whi le we would not have objected to- the Repor t if t aken as a whole, t he use by the enemy of selected ex t rac t s migh t have been d a m a g i n g to us.

Genera l agreement w a s expressed wi th th i s view. The Colonial Secretary said tha t , as he envisaged the s i t ua t ion

af te r the publ ica t ion of these documents, the G o v e r n m e n t s cr i t ics would po in t to the fact t h a t they contained no promise of any immedia te relief to the W e s t Ind ies . Something in the n a t u r e of a. shor t - te rm jjolicy Avas obviously needed. H e had reached agree­ment w i t h the T reasu ry (who had been very helpful in this ma t t e r ) on a shor t - te rm plan by which a sum of £350,000 Avould be made immedia te ly avai lable for relief a n d unemployment works in the var ious W e s t I n d i a n I s l ands .

As r ega rds the announcement of th i s short- term plan, he h a d considered the des i rabi l i ty of inse r t ing a passage in the W h i t e P a p e r on Colonial Development, immediate ly af ter p a r a g r a p h 1. B u t he t hough t t h a t the shor t - term plan, if i t found a place in the W h i t e P a p e r , m igh t have the appea rance of a pan ic measure , or a bribe. Accordingly, he proposed tha t , on the 20th F e b r u a r y (the da t e on which the tAvo Command P a p e r s Avere publ ished in London) , the W e s t I n d i a n Governors should be au thor i sed to announce separately, each in his own Colony, the al locat ion of a specific sum for shor t - term purposes.

[20841] B 2

A nnouncement of the Govern­ment ' s intention to act in the spirit of the Royal Commission's recommenda­tions.

The Colonial Empire: State­ment of Policy on Development and Welfare and on Colonial Research. (Previous Reference: W.M. (40) 27th Conclusions, Minute 2.)

Development and welfare.

I n discussion genera l agreement w a s expressed w i t h the Colonial Secre ta ry ' s shor t - te rm p lan . I t w a s felt, however, t h a t a shor t passage should be in t roduced a t the end of p a r a g r a p h 1 to exp la in t h a t a sum w a s being made immedia te ly avai lable , as a first i n s t a lmen t of the long- term policy.

A t t e n t i o n w a s d r a w n to p a r a g r a p h 1 of the W h i t e P a p e r on Colonial Development , in which i t was s t a t ed t h a t whi le the Government canno t commit themselves now to accept p a r t i c u l a r proposals , they a r e anxious to act as ear ly a s possible in the sp i r i t of t he recommenda t ions of the Royal Commission as a whole.

The Secretary of State for the Colonies t h o u g h t i t impossible w i t h o u t more t ime for examina t ion to go fu r the r a t t he moment. Th i s passage itself would be definitely r ea s su r ing to the W e s t Ind ie s , as it i nd ica ted t h a t the Commiss ion^ development a n d welfare recommendat ions in respect of the W e s t Ind ies , cos t ing some £1,400,000 pe r annum, would find the i r place w i t h i n t he f ramework of the new comprehensive proposa ls for Colonial development.

T h e W a r C a b i n e t ­

(i) A u t h o r i s e d the Secre tary of S ta t e for the Colonies to a r r a n g e for the publ icat ion, as a W h i t e P a p e r on the 20th Feb rua ry , of the Recommendat ions of the W e s t I n d i a Royal Commission, in the form annexed to h i s M e m o r a n d u m W . P . (G.) (40) 45. together w i t h su i table in t roduc to ry mat te r ,

(ii) Agreed t h a t no reason should be given publicly for the non-publ ica t ion of the r ema inde r of the R e p o r t of the Royal Commission,

(iii) I n v i t e d the Secre tary of S t a t e for the Colonies to a d d to p a r a g r a p h 1 of the d ra f t s ta tement of policy on Colonial Development a n d Welfare a n d on Colonial Research (see M i n u t e 2) a s ta tement in general t e rms of the G o v e r n m e n t s in ten t ion to t ake ear ly act ion to give some measure of immedia te ass is tance to the W e s t I n d i a n Colonies.

2. The W a r Cabinet h a d before them a M e m o r a n d u m by the Secre tary of S t a t e for the Colonies, to which was a t t a ched a d r a f t s ta tement of policy on Colonial Development a n d W e l f a r e a n d on Colonial Resea rch ( W . P . (G.) (40) 44).

The Secretary of State for the Colonies sa id t h a t the recommen­da t ions of the W e s t I n d i a Royal Commission included proposals for an expend i tu r e of some £1,400,000 per a n n u m from the Exchequer , in o rder to enable the W e s t I n d i a n Colonies to reach a reasonable s t a n d a r d of Government and social services. Condi t ions the re were probably worse t h a n in any o ther p a r t of the E m p i r e , p a r t l y because, w i t h t he exception of T r i n i d a d , they h a d no m i n e r a l resources a n d prac t ica l ly no secondary indus t r i e s a n d were t h u s en t i re ly dependen t upon a g r i c u l t u r e ; and p a r t l y because t he i r popu l a t i on was relat ively sophis t ica ted and therefore expected social services of a f a i r ly h igh order. B u t condi t ions were bad in some of the other Colonies also, and, generally speaking , they h a d no t sufficient f inancial resources to provide themselves w i t h the services which were r equ i r ed by present day s t a n d a r d s .

A survey in the Colonial Office of the needs of the E m p i r e general ly h a d led h im to propose t h a t the Exchequer should find u p to £ 5 million per a n n u m in order to enable the Colonies to b r i n g the i r services u p to a reasonable s t a n d a r d , (This figure included £1,400,000 for t he W e s t Indies . ) I f th is were agreed, new legisla­t ion would be necessary. The exis t ing Colonial Development F u n d w a s l imi ted to £1,000.000 per annum, and was also res t r ic ted in i t s

Eesearch.

Mandatedterritories.

scope, as expla ined in his M e m o r a n d u m . H e therefore proposed t h a t the ex i s t ing Colonial Development F u n d should be abolished a n d t h a t provis ion should be made for a new vote for Colonial Development and Wel fa re u p to £5,000,000 per a n n u m for the next ten years . Respons ib i l i ty for m a k i n g the. new g r a n t s would rest w i t h the Sec re ta ry of S t a t e a n d the Chancellor of the Exchequer , bu t a new Advisory Commit tee would be set up on which he would propose to increase the official element to roughly half the membersh ip .

j j e p r 0 p 0 s e ( j j j n add i t ion , a s epa ra t e vote of £500,000 a year for Colonial Resea rch and a Colonial Research Advisory Commit tee to advise as to the expend i tu r e of th is sum. A g a i n , the Secre tary of S t a t e a n d the Chancel lor of t he Exchequer would be responsible for the ac tua l al location, b u t he w a s anx ious to get advice t h r o u g h the Commit tee from the best scientific m i n d s in the country .

Discussion ensued whe the r a n advisory body of d i s t ingu ished scient is ts would be best sui ted to advise on the disposi t ion of a fund of th i s cha rac te r . W o u l d scient is ts have sufficient exper ience of condi t ions in the Colonies to enable them to consider compet ing c la ims? Scientific specia l is ts were p e r h a p s a p t to t ake a n a r r o w view of claims outs ide the i r own p a r t i c u l a r field.

The Secretary of State for the Colonies sa id t h a t he contem­p l a t ed t h a t full r epor t s a n d in format ion as to the work being­ca r r i ed out in the Colonies would come before the Advisory Commit tee , a n d also t h a t they should be in touch w i t h exper t opinion in t h i s country, e.g., t h r o u g h the M i n i s t r y of A g r i c u l t u r e and F i sher ies a n d the D e p a r t m e n t of Scientific a n d I n d u s t r i a l Research. They would be free to spend p a r t of thei r funds on research work in t h i s count ry if they t h o u g h t fit. There would be an official element on the Commit tee , e.g., the A g r i c u l t u r a l a n d Medical Adv i se r s of the Colonial Office, a n d he b a d in mind to suggest someone wi th w i d e Colonial exper ience as Cha i rman . For example, he m i g h t propose the a p p o i n t m e n t of L o r d Ha i l ey as C h a i r m a n both of the Resea rch Adviso ry Commit tee and of the Development and W e l f a r e Advi so ry Commit tee .

The re was genera l ag reement wi th ' the view t h a t i t was i m p o r t a n t t h a t the re should be a s t rong non-special is t element on the Resea rch Adviso ry Commit tee and t h a t the C h a i r m a n , in p a r t i c u l a r , should be a m a n of broad experience. I t was also urged t h a t the Commit tee should be encouraged to concent ra te on the ma jo r problems involved (e.g., those in which the b igger research u n d e r t a k i n g s a r e in teres ted) , a n d not to become involved in minor a d m i n i s t r a t i v e deta i l .

The Minister without Portfolio sa id t h a t the publ ica t ion of the proposed s ta tement of policy would be extremely valuable in

connection w i t h the act iv i t ies of the M a n d a t e s Commission of the L e a g u e of Na t ions .

The Prime Minister sugges ted tha t , if i t w a s contempla ted t h a t m a n d a t e d t e r r i to r i e s should p a r t i c i p a t e in the proposed Exchequer g r a n t s on the same basis as Colonial t e r r i to r ies , i t was­very desirable to make a more conspicuous s ta tement to th i s effect t han the pas s ing reference conta ined in p a r a g r a p h (3) of the s t a t emen t a s d ra f t ed .

The Secretary of State for the Colonies said t h a t h i s proposal was t h a t the m a n d a t e d t e r r i to r i e s should not be excluded from the proposed schemes, though they would not necessari ly be t r ea t ed on exact ly the same basis as the Colonies. There would, for example, be no d i s t inc t ion between T a n g a n y i k a and Kenya , but i t m i g h t be necessary to make some d is t inc t ion in the case of a Class A m a n d a t e such as Pa le s t ine , where the J e w i s h community, a t any ra te , was B 3 [20841]

Compulsory Military Service. (Previous Reference: W.M. (39) 119th Conclusions, Minute 1.) Liability of British subjects in Prance and French citizens in Great Britain.

re la t ively weal thy. H e hoped, however, t h a t the proposed fund would be used to assist A r a b a g r i c u l t u r a l development in Pa le s t ine .

The re w a s genera l ag reement t h a t M a n d a t e d Te r r i t o r i e s should be t r e a t e d as on the same basis as Colonies in th i s mat te r , a n d t h a t i t w a s desirable t h a t th i s fact should be emphas ised in the W h i t e P a p e r .

The Secretary of State for the Colonies under took to inser t a p a r a g r a p h in the d r a f t s t a t emen t on these l ines.

The Lord Privy Seal d rew a t t en t ion to p a r a g r a p h 15 of the d r a f t s ta tement , in wh ich reference was made to the need for co-operat ion w i t h the local Colonial au thor i t i es , and po in ted out t h a t in ce r ta in cases the local legis la tures would probably oppose reforms.

The Secretary of State for the Colonies sa id t ha t care would be taken to see t h a t the proposed g r a n t s d id not merely relieve the Colonial Governments of the i r responsib i l i t ies ; they would, in fact, be given only on condi t ion t h a t the Colonial Governments ca r r i ed out the i r share of the work. H e agreed t h a t it would be wise to include in the p a r a g r a p h in quest ion a reference to the " r e s p o n s i b i l i t i e s " of the local legis la tures as well as to the i r " r i g h t s a n d p r iv i l eges . "

The Minister without Portfolio sa id tha t , in the absence of the Secre ta ry of S ta te for Dominion Affairs, he would be seeing the Domin ion H i g h Commissioners, and asked if there would be any objection to his in fo rming them, as a m a t t e r of courtesy, of the G o v e r n m e n t s proposal .

The Secretary of State for the Colonies sa id t h a t he saw no objection and t h a t he would be g lad to d r a f t a s t a tement in convenient form for th i s purpose. H e thought , however, t h a t it would suffice if they were informed on the ensu ing day.

The view was general ly expressed t h a t the proposals in the d r a f t s t a tement represented a very i m p o r t a n t a n d desirable develop­ment in B r i t i s h Colonial policy.

The W a r C a b i n e t -Au tho r i s ed the Secretary of S ta t e for the Colonies to issue as a W h i t e P a p e r on the 20th Feb rua ry the s t a t emen t of policy on Colonial Development and We l f a r e a n d on Colonial Research in the form annexed to his Memo­r a n d u m W . P . (G.) (40) 44, subject to i t s amendmen t to meet the po in t s made in the discussion (see also M i n u t e 1).

3. T h e W a r Cabine t h a d before them a J o i n t M e m o r a n d u m by t h e Secre ta ry of S t a t e for Fore ign Affairs and the Min i s t e r of L a b o u r a n d Na t iona l Service ( W . P . (G.) (40) 43) as to the l iabi l i ty for compulsory mi l i t a ry service of B r i t i s h subjects in F rance , a n d of F r e n c h ci t izens in G r e a t B r i t a i n .

The Minister of Labour said t h a t p a r a g r a p h 3 (2) of the M e m o r a n d u m had or ig ina l ly been d ra f t ed on the basis of the issue of a s e p a r a t e P roc l ama t ion for each age g roup to be called u p . W e were now following the p lan of proc la iming, several age g roups a t a t ime. Th i s p a r a g r a p h h a d therefore been amended to refer specifically to the da te on which the men in quest ion would be " r equ i r ed to r eg i s t e r , " if they were res iden t in G r e a t B r i t a i n .

The Air Situation. (Previous Preference: W.M. (40) 41st -Conclusions, Minute 1.)

The Naval Situation. (Previous Eef erence: W.M. (40) 41st Concl visions, Minute 2.) Search for German merchant vessels. Shipping losses.

U-boat sunk.

U-boat sunk on 12th February. (Previous Eef erence: W.M. (40) 40th Conclusions, Minute 3.)

335 W . M . 4 2 (40) .

The schedule of Reserved Occupat ions would a p p l y both t o —

(i) B r i t i s h subjects who r e t u r n e d to th i s count ry in p u r s u a n c e of the Agreement ,

(ii) F r e n c h subjects who elected to r emain in th i s count ry . The nex t s tep would be the con t inuance of negot ia t ions w i t h the

F rench Government , and, if these were successful, P a r l i a m e n t would be asked to pass the necessary legislat ion, as in the G r e a t W a r .

The W a r C a b i n e t -A p p r o v e d the proposals of the Secre tary of S t a t e for Fore ign Affairs a n d the Min i s t e r of L a b o u r a n d N a t i o n a l

. Service, as set out in t he i r M e m o r a n d u m W . P . (G.) (40) 43.

4. The Secretary of State for Air sa id t h a t Bomber Command h a d ca r r i ed out a sweep over the N o r t h Sea. b u t no enemy vessels h a d been s ighted.

A reconnaissance had been ca r r ied out over Borkum, J u i s t a n d Nordeney, but no enemy w a r s h i p s or submar ines h a d been seen. I ce condi t ions ex tended about five miles out to sea.

The re had been no enemy a i r ac t iv i ty off the B r i t i s h Isles. Seventy- two fighter pa t ro l s h a d been despa tched d u r i n g the day, involving 204 a i r c r a f t . The usua l pa t ro l s h a d been flown by Coas ta l Command .

The re was no ac t iv i ty to r epor t from the B r i t i s h a i r forces in France .

The W a r Cabinet took note of th is s ta tement .

5. The Deputy Chief of Naval Staff gave the W a r Cabine t ce r t a in deta i ls r e g a r d i n g the p resen t movements of the H o m e Fleet .

The h u n t for the r ema in ing four merchan t sh ips which h a d left V igo had cont inued d u r i n g the previous day w i t h o u t resul t .

The B r i t i s h Sultan Star (12,000 tons), c a r r y i n g a n i m p o r t a n t cargo of meat, had been torpedoed Sou th-Wes t of L a n d ' s E n d on the previous af ternoon. Being a fas t l iner she h a d not been in convoy, and was the first fas t ship which h a d been torpedoed.

Th ree destroyers , who were w i t h i n 30 miles, h a d a r r i v e d on the scene and rescued the crew. These destroyers had ob ta ined a contact close to the Sultan Star j u s t a f t e r she h a d sunk, a n d h a d a t t acked . The U-boa t h a d been seen to break surface a n d then d i s a p p e a r in such a manne r a s to give reason for bel ieving t h a t she h a d been sunk.

The Br i t i sh t anke r Imperial Transport h a d been torpedoed 150 miles Wes t -nor th -wes t of the B u t t of Lewis on the a f t e rnoon of the 11th F e b r u a r y . H e r bow h a d been blown off, bu t she w a s st i l l able to s team 4 knots . She was being escorted home by a destroyer .

Divers h a d a r r i ved a t the Clyde to examine the U-boa t wh ich h a d been sunk there .

/

The MilitarySituation. w a s

6. The n o t h i n g

Chief of to repor t

the Imperial General Staff from the W e s t e r n Fron t .

sa id t h a t t he re

(Previous Reference: W.M. (40) 41st Conclusions, Minute 3.) Western Front.

Finland. The F i n n s h a d acknowledged losing cer ta in posi t ions in the Summa area . They were holding the i r own Nor th of L a k e Ladoga . I n Cen t r a l F in l and they had succeeded in w i p i n g out ano the r Russ ian ba t ta l ion .

The genera l s i tua t ion was repor ted to be stable. T h o u g h t h e F i n n s were t i red, there was no quest ion of the i r being exhaus ted . The real reason for the seeming setback which they were now suffering w a s the i r lack of ammuni t ion for field guns . T h i s imposed very severe res t r ic t ions on expendi tu re a n d mean t t h a t they h a d to forego any th ing but the most profitable t a rge t s . They were ou t ranged by an overwhelming concentra t ion of some 600 R u s s i a n guns, but for all t ha t the i r casualt ies had not been serious. By contrast , the Russ ians had lost some 80,000 to 90,000 kil led, a n d the i r morale was deplorable.

The W a r Cabinet took note of the above s ta tement .

Assistance to 7. The Secretary of State far- Air informed the W a r Cab ine t Finland. t ha t the final p r e p a r a t i o n of 12 short-nosed Blenheims was be ing (Previous completed, and t h a t these would be ready to be flown to F i n l a n d Reference: in ten days ' t ime. W.M. (40) 41st Conclusions, Minute 5.) Supply of aircraft. Pilots. I n t h i s connection the Secretary of S ta te for A i r ra i sed t he

quest ion whether the W a r Cabinet would see any objection to these a i r c r a f t being flown to F i n l a n d by volunteer R . A . F . crews who would r emain there to fight aga ins t the Russ ians . F rom the o p e r a t i o n a l po in t of view t h e oppo r tun i t y of fighting in F i n l a n d would g ive R . A . F . pi lots a n d crews valuable t r a i n i n g and experience. T h e r e would be no lack of volunteers. They would have to res ign the i r commissions, and special considerat ion would have to be given to such ma t t e r s as thei r pay, non-effective benefits, a n d subsequent re-employment in th is country. Some 24 volunteers migh t go to F i n l a n d w i t h the 12 Blenheims, but th i s in i t i a l s tep migh t involve us in fu r the r commitments , by way of re inforcements . Con t ingen t s of volunteers might , w i t h advan tage , be sent ou t for p r e - a r r anged per iods a n d be relieved by succeeding cont ingents , on the l ines which h a d been prac t i sed by the Germans and I t a l i a n s in Spa in .

The Secretary of State for Foreign Affairs s aw no object ion from the poli t ical point of view, provided the personnel were represented as volunteers. The only objections he saw were the difficulties which migh t be raised by Sweden a n d the embar rassment which m i g h t be caused if Br i t i sh crews were t aken p r i sone r by the Russ ians . If, however, the W a r Cabinet were p r e p a r e d to agree to volunteer a i r crews proceeding to F in l and , m i g h t the re not be even grea te r advan tage in sending B r i t i s h personnel w i t h the H u r r i c a n e s which were about to go to F i n l a n d ?

Field guns and ammunition.

Eail way difficulties.

Approach to France.

The Lord Privy Seal considered t h a t the despa tch of B r i t i s h flying personnel to F i n l a n d would probably produce resu l t s ou t of all p r o p o r t i o n to the i r numbers , a n d lie w a s therefore s t rongly in favour of the i r going. Genera l agreement was expressed w i t h th is v iew provided tha t i t w a s admin i s t r a t ive ly prac t icable .

The Chief of the Imperial General Staff sa id t h a t orders h a d been given for the immed ia t e w i t h d r a w a l of 30 field guns from reserve for despa tch to F i n l a n d in accordance wi th the decision taken by the W a r Cab ine t on the previous day. In reply to the P r i m e Min i s t e r , the Chief of the I m p e r i a l Genera l Staff under took to r e p o r t full de ta i l s to the W a r Cabine t on the following day as to the da t e when these g u n s and the a m m u n i t i o n for them would leave.

Genera l G a m e l i n ' s reply to a suggest ion t ha t field guns m i g h t be m a d e avai lable from F r a n c e h a d not been favourable. The exp lana t ion , possibly, w a s t h a t the French h a d sent all available su rp lus guns to the B a l k a n s and, hav ing r e g a r d to the ten add i t i ona l Div is ions which they were in process of forming, were unable to s p a r e any for F in l and .

Meanwhi le , the 24 field howitzers , each w i t h 2,000 rounds , a l r eady despatched from this country, h a d now a r r ived in F in l and . They should short ly be in act ion and should go fa r to improve the s i tua t ion .

R a i l w a y delays in Sweden has been p a r t l y due to the moving of two Swedish Divis ions n o r t h w a r d s to Boden. T h e posit ion should improve as a resul t of the despatch of seven r a i lway exper t s f rom th i s c o u n t r y — t w o to Sweden and five to Torneo, where they were s t r a i g h t e n i n g out a considerable confusion of wagons , in close co-operat ion wi th the F i n n i s h staff.

The Lord Privy Seal t hough t i t i m p o r t a n t t h a t our t r a n s p o r t a ­t ion expe r t s should have a rea l knowledge of the Swedish r a i lway system, and be of such s t a n d i n g as to be able to ta lk on level te rms to the h ighe r Swedish r a i l w a y au thor i t i es .

The Prime Minister sa id t h a t he had seen the F i n n i s h Min i s te r on the previous day and. h a d helped to reassure him. M. Gr ipenbe rg h a d asked whe ther we could, not intercede w i t h the F rench . I n view of Genera l GamelhVs reply to the appea l of the Chief of the I m p e r i a l Genera l Staff, be (the P r i m e Min i s t e r ) t hough t i t m i g h t be o p p o r t u n e for h im to make a personal appea l to M. Da lad ie r . H e could say t h a t the B r i t i s h Government h a d considered i t w o r t h Avhile to make considerable sacrifices on behalf of the F i n n s ; a n d he could ask whe the r the French could no t see t he i r w a y to m a k i n g s imi la r sacrifices, pa r t i cu l a r ly in r e g a r d to the possible release of field guns, of which, the F inns h a d such g rea t need.

The W a r Cab ine t—

(i.) Author i sed the Secre tary of S t a t e for Air if, on fu r ther inves t iga t ion , a workable scheme could be devised, to a r r a n g e for a l imi ted number of R . A . F . flying personnel to proceed to F in land , in the guise of volunteers, for the purpose of fighting aga ins t R u s s i a ; such personnel to proceed w i t h the Blenhe im a i r c r a f t (or possibly w i t h the H u r r i c a n e a i r c r a f t ) which were short ly to be sent to P in l and .

(ii) I nv i t ed the P r i m e Min i s t e r to address a personal appea l to M. D a l a d i e r to release field guns and a m m u n i t i o n for F in l and .

(iii) I nv i t ed the Chief of the I m p e r i a l Genera l Staff to r epo r t to the W a r Cabine t a t thei r mee t ing on the following­day deta i l s r e g a r d i n g the despa tch to F i n l a n d of the 30 field gUns and 30,000 rounds of ammuni t i on .

Italy. Economic relations. (Previous Reference: W.M. (40) 41st Conclusions, Minute 6.)

Italy. Internal situation. (Previous Reference: W.M. (40) 35th Conclusions, Minute 7.)

8. The Secretary of State for Foreign Affairs s a id t h a t t he la tes t t e legrams from H i s M a j e s t y ' s Ambassador , Rome (Nos. 126, 127 and 128, da ted the 14th Februa ry , 1940), suggested t ha t the prospects of ob ta in ing the proposed T r a d e Agreemen t h a d become more unfavourable . I n an in te rv iew on the 13th February , 1940, Count C iano h a d sa id t h a t the Duce felt su re t h a t H i s Ma jes ty ' s Government would u n d e r s t a n d t h a t in view of his special re la t ions w i t h Germany, he could not honourably pe rmi t the sale t o us or to F r a n c e of guns, a n t i - a i r c r a f t guns, explosives a n d o ther weapons of des t ruct ion. In the same conversat ion Count Ciano h a d aga in asked about German sea-borne coal; was any d a t e fixed for i ts s toppage 1 S i r Pe rcy L o r a i n e h a d replied, not to h i s knowledge ; he supposed t h a t no ac t ion would be taken unt i l the M a s t e r of the Rolls h a d reached London a n d repor ted to the W a r Cabinet . H e imagined, however, t h a t i t was qui te likely t h a t seizures would begin in the following week. Count Ciano h a d then sa id : " A s soon as t h a t ? " To which S i r Percy Lora ine h a d contented himself w i t h r ep ly ing t h a t the o r ig ina l da t e of enforcement h a d been mid-December last . A s to Count C iano ' s s ta tement t h a t I t a l y w a s now rea rming , S i r P e r c y Lora ine had told h im tha t if, as w a s probable, she was unable to obtain the necessary r a w mate r i a l s outs ide t he s te r l ing area , she would have to come to us to obta in them. I f she sought such assis tance, he (Sir Pe rcy Loraine) t h o u g h t t h a t any Br i t i sh Government would inqu i r e aga ins t whom the a r m a m e n t s t h u s created were to be used, and would ask for gua ran t ee s a g a i n s t the i r being used aga ins t u s or our All ies . The I t a l i a n Government could therefore be unde r no i l lusions as to the n a t u r e of the s i tua t ion created by S ignor Musso l in i ' s veto.

The Prime Minister sa id t h a t there were many forces in I t a l y anx ious to secure the proposed T r a d e Agreement w i t h us . H e felt, therefore , t ha t , if we d id not act too hurr iedly , there was a good chance t h a t I t a l i a n policy m i g h t develop in the d i rec t ion t h a t w e desired.

The W a r Cabine t took note of the above s ta tement .

9. The Secretary of State for Foreign Affairs gave the W a r Cabine t ce r t a in in format ion r ega rd ing the in t e rna l s i tua t ion in I t a ly . T h i s in fo rmat ion is recorded in the Sec re t a ry ' s S t a n d a r d F i l e of W a r Cabine t Conclusions.

The W a r Cabine t took note of the s t a t emen t by t he Secre ta ry of S t a t e for Fore ign Affairs.

Richmond Terrace, S.W. 1, February 15, 1940.