1 G.A. Street.

2 The memorandum is printed as an editorial attachment to this
Document. After it was considered by Cabinet the Prime Minister
minuted it as follows:

'All matters other than major matters of general policy to be
dealt with by War Cabinet Summaries of War Cabinet dealings to be
made by P.M. at full Cabinet meetings
Meetings of full Cabinet to be held at regular intervals not
always in Melbourne i.e. Sydney
or Canberra
Robert G Menzies 26/9/1939'.

Attachment

Cabinet Submission by Mr G.A. Street, Minister for Defence

MOST SECRET 28 August 1939

MACHINERY FOR HIGHER DIRECTION OF WAR

1. PREVIOUS CABINET APPROVAL
During the Imperial Conference, 1937, discussions were held in
London with Sir Thomas Inskip, Minister for Co-ordination of
Defence, and Sir Maurice Hankey, Secretary of the Committee of
Imperial Defence, on the machinery for Higher Direction of War,
and Cabinet decided in March, 1938, to adopt an organisation for
Higher Direction similar to that contemplated in the United
Kingdom, the latter being based on the experience of the Great
War. The following were approved by Cabinet in principle, and a
copy of the previous Cabinet Agenda is attached as Appendix 'A':-

(i) A War Cabinet for the direction of War Policy, the exact
constitution and functions to be submitted to Cabinet during the
Precautionary Stage of an emergency.

(ii) The Chiefs of Staff in their joint capacity as members of the
Defence Committee to continue as an advisory body to the War
Cabinet.

(iii) The Secretary, Department of Defence, by virtue of his
position as Secretary to the Council of Defence, to become
Secretary to the War Cabinet.

(iv) The decision in regard to new Departments to depend on the
scope and nature of the war effort required.

(v) The question of representation in any Imperial. war
organisation for higher direction to be noted as a matter for
consideration at the outset of a war.

2. WAR CABINET
It will be noted from Appendix 'A' that the previous submission to
Cabinet proposed that, in view of the size of the Cabinet in
Australia, a small War Cabinet should be constituted, to ensure
quick decisions and the vigorous prosecution of the War Policy. As
the Council of Defence is a purely advisory body, it could be
transformed by creating the War Cabinet from the Ministers on the
panel of the Council. According to the additional Departments
found necessary, the membership could be reviewed, or provision
made for co-opting other Ministers as required, the latter
depending on the subjects dealt with and the Departments
concerned. It is primarily a matter for the Prime Minister as to
when the step for the formation of the War Cabinet should be taken
and what its constitution should be.

3. CHIEFS OF STAFF COMMITTEE
It will be observed from Appendix 'A' that emphasis is laid on the
relationship between the Chiefs of Staff Committee on the one hand
and the War Cabinet on the other, and the general lines of
procedure that should be adopted. These may be summarised under
the headings of:-

(a) Consultation by the War Cabinet with the Chiefs of Staff
Committee in regard to operations.

(b) Attendance of the Chiefs of Staff at War Cabinet meetings
whenever matters concerning or affecting the Navy, Army or Air
Force are under discussion.

(c) The collective responsibility of the Chiefs of Staff.

4. WAR CABINET SECRETARIAT
Attached as Appendix 'B' is a chart of organisation proposed for
the War Cabinet Secretariat. It will be noted therefrom that
certain officers in key positions in the Secretariat of the
Defence Department and associated with the Council of Defence are
allotted to the general secretarial duties, and associated with
them are Liaison Officers from the other Commonwealth Departments.

AU Departments have an important part to play in co-operation with
the Navy, Army and Air Force.

It will also be noted from the chart that the officers for the
Secretariat of the Chiefs of Staff Committee are also drawn from
the Defence Secretariat, and the Service Assistant Secretaries to
the War Cabinet are also the joint Secretaries of the Chiefs of
Staff Committee. This forms an important link on the Service side
of these two bodies.

5. LOCATION OF MACHINERY FOR HIGHER DIRECTION
As it has not yet been possible to transfer the Defence Department
to Canberra, and as the Supply, Civil Aviation and Postal
Departments are also located in Melbourne, the following important
problems arise:-

(i) War Cabinet Meetings. If it were desired to hold these in
Canberra owing to the need for Ministers being continuously there
for Parliamentary sessions, General Cabinet meetings and
departmental purposes, it would be necessary for the Chiefs of
Staff and Secretary to travel to Canberra.

As the Chiefs of Staff would have to be in constant touch with
their Boards and the Secretary, it would be convenient for
meetings to be held in Melbourne when it is possible for Ministers
to be in that city.

(ii) Administrative Liaison with other Departments. It is
essential, in view of the location of the Defence Department in
Melbourne, for the Liaison Officers from Canberra Departments to
be located in Melbourne at the Secretariat of the Defence
Department for liaison and to handle matters of a joint relation
between the two Departments.

6. COMMUNICATION FACILITIES BETWEEN MELBOURNE, CANBERRA AND SYDNEY
Facilities for speedy and secret communication between Melbourne,
Canberra and Sydney are essential.

A teleprinter system has been installed between Victoria Barracks,
Melbourne, Defence Secretariat, Canberra, and the Prime Minister's
Department, Canberra. Approval was obtained at the time of the
last crisis for the installation of the telephonic speech
inversion system between Canberra, Melbourne and Sydney, but owing
to difficulties connected with perfecting the apparatus, the
necessary sets were not shipped from London until 26th August.

For transport of Ministers and senior officials between Canberra
and Melbourne, special flying arrangements might be necessary for
urgent movements which do not fit in with the timetable of the air
services. This could be decided by the demands of experience.

7. OFFICE ACCOMMODATION
Provision has been made, if required, for an office for meetings
of the War Cabinet on the Ministerial floor of the Defence
Secretariat at Victoria Barracks, Melbourne. Space for the Liaison
Officers from other Departments has been reserved in the new
building, the completion of which is being hastened.

8. NEW DEPARTMENTS
In Appendix 'A' it is provided that it is necessary to consider
early in the war whether separate Departments are to be formed for
any of the Services. Provision is also made in the War Book for
consideration of the necessity for separate Departments such as
National Service. The decision in all these cases will depend upon
the scope and nature of the war effort required.

(i) Ministerial Direction of Defence Department. The higher
administrative organisation of the Services in peace has been
based on the requirements for war, to ensure easy division of the
higher direction in an emergency, and to this end the Department
has been organised in the following form:-

Secretariat
Navy Branch
Army Branch
Air Force Branch.

The organisation of the Defence Department was reviewed by Sir
Maurice Hankey during his visit to Australia in 1934, and, subject
to the reconstitution of the Council of Defence, which was carried
out, he considered the unified Defence Department was, for a
Dominion, the ideal form of organisation. Such a Department has
not been practicable in Britain, owing to the size of the three
Services. Furthermore, to provide for the coordination which is
effected in Australia under the one Minister, the Minister for Co-
ordination of Defence was appointed some time ago.

The following conclusions in regard to higher administrative
direction are to be noted:-

(i) It is imperative in any changes in the Defence Organisation
for war purposes to provide for the vital aspect of co-ordination.

(ii) There are two alternatives in the maximum subdivision of the
Defence Department in war:-

Firstly-
(a) The War Cabinet and Secretariat for higher direction of
Policy.

(b) Separate Departments for the Navy, Army and Air Force, with a
Minister for each, and a Minister for Co-ordination; or
Secondly-
(c) The War Cabinet and Secretariat for higher direction of
Policy.

(d) Assistant Ministers to be appointed to administer each
Service, with co-ordination and Policy under the direction of the
Minister for Defence.

(iii) Subdivision can of course be carried out to a lesser degree
than in (b) or (d), provided of course that co-ordination is
ensured as in (a) and (c).

(iv) Any subdivision of the Defence Department for war hinges in
the first place on Ministerial direction-whether it should be two
or more Ministers with a Minister for Co-ordination or one
Minister for Defence with one or more Assistant Ministers.

Should any of the Services be entirely separated from the Defence
Department, it is important that the Permanent Head of the new
Department should be the Finance Member of the Board. The Finance
Member is the highest paid civil officer in the Service Branches,
and in Britain the Permanent Heads of the Admiralty, War Office
and Air Ministry are members of the respective Service Boards.

They are also the Accounting Officers appointed by the Treasury to
ensure financial order and regularity, and, by virtue of such
responsibility, appear before the Public Accounts Committee of the
House of Commons. Whilst our system is not exactly the same as
that of Britain, it is important for the Government to ensure, if
the existing responsibility of the Secretariat of the Defence
Department for financial review is removed, that the financial
control within any Service is reinforced as proposed.

If it should be decided to adopt the alternative course of
appointing additional Assistant Ministers, and this might be
preferable until it is seen how the situation develops, the
administration of the Services could proceed on the lines of
Boards dealing directly with Assistant Ministers on matters of
general administration but through the Secretariat on the more
important questions, including those of principle and policy, and
on matters of inter-Service relations, where coordinated action is
necessary.

(ii) Other Departments. The Australian proposals for the creation
of new Government Departments in time of war correspond in
principle to the system contemplated by the United Kingdom, but,
in the latter case, the number of new Departments is likely to be
large, owing to the magnitude of the effort in a major war and
problems peculiar to Great Britain. It is probable that new
Government Departments would be required in Britain for Man Power
(National Service), Blockade, Information, Shipping Control and
Food Control.

In regard to Australia, it might become necessary, should a grave
situation develop necessitating a general mobilisation under Part
IV of the Defence Act, to convert the Man Power Committee into a
Department of National Service. It would appear that in the
initial stages of a war it should be seen how the situation works
out, and the need for the creation of additional Departments for
all purposes can be determined in the light of experience.

9. EMPIRE WAR CABINET
As advised by Sir Maurice Hankey in Appendix 'A', the arrangements
for setting up an Imperial War Cabinet to co-ordinate the war
effort of the United Kingdom, the Dominions and India are less
definite than those for the higher control in the United Kingdom
or in Australia. This is necessarily the case unless and until the
Governments of the different members of the British Commonwealth
respectively decide as to the extent of their co-operation.

Sir Maurice Hankey advised that the arrangement under which the
High Commissioners of the Dominions attend meetings of the
Committee of Imperial Defence appears to lend itself to extension
from the outset of a major war in such manner and in such degree
as the Governments of the Dominions may themselves decide in each
case.

Sir Maurice Hankey has stated that the Australian plan of giving
consideration to the question at the outset of a war, or
preferably during the Precautionary Stage, appears to fit in well
with the arrangements in the United Kingdom. It is suggested
therefore, that until experience indicates the need for a further
change, the present status of the High Commissioner is adequate
for immediate purposes, and the practice of his attendance at
meetings of the Committee of Imperial Defence and direct
consultations with the Prime Minister of the United Kingdom are
sufficient.

10. SUMMARY
The following are the matters for consideration and decision in
the event of war arising:-

(i) War Cabinet. The need for creation and proposed constitution
are noted, the initiative in this matter to be taken by the Prime
Minister if and when he decides that action is necessary. (para.

2)
(ii) Chiefs of Staff Committee. Setting up the Committee in
accordance with the approval of [sic] principle and adoption of
the procedure outlined. (para. 3)
(iii) War Cabinet Secretariat. Endorsement in confirmation of
earlier approval in principle and approval of detailed
organisation as outlined in Appendix 'B'. (para. 4)
(iv) Location of Machinery for Higher Direction. The War Cabinet
Secretariat and Departmental Liaison Officers to be located at the
Defence Department, Melbourne, and the place of War Cabinet
meetings to be decided in the light of experience, but when
convenient to Ministers, meetings to be held in Melbourne. (para.

5)
(v) Communications between Melbourne, Canberra and Sydney.

Observations noted, and telephonic speech inversion system to be
installed as soon as equipment becomes available. (para. 6)
(vi) Office Accommodation. War Cabinet Secretariat and
Departmental Liaison Officers to be located at Victoria Barracks,
Melbourne. It is noted that a War Cabinet Room is also provided
there. (para. 7)
(vii) New Departments
(a) Defence Department. Principles governing the organisation and
higher direction of the Defence Department are noted, together
with the necessity for providing for the vital aspect of co-
ordination. These should be borne in mind in any changes from the
existing organisation.

(b) Other Departments. The need for the formation of new
Departments to be determined in the light of experience. (para. 8)
(viii) Empire War Cabinet. Until experience indicates the need for
a further change, the present status of the High Commissioner and
procedure in connection with his attendance at Committee of
Imperial Defence meetings and liaison with the Prime Minister of
the United Kingdom should be continued. (para. 9)

11. APPENDICES [1]

A. The Higher Direction of War-Australian Government Machinery.

Cabinet approval of 18th March, 1938.

B. Defence Secretariat Organisation for War.

C. Chart of Government Machinery for Higher Direction of War.

G.A. STREET

[AA:A2671,12/1939]

1 Not printed (on file AA:A2671, 12/1939).