Telegram from Sir Stafford Cripps [Lord Privy Seal] (India) to WSC regarding the latest situation in India: states that Congress seems certain to refuse proposals and that the Moslem League and other sections of opinion will do likewise; comments on "almost unanimous" protest against the complete retention of control over defence by the British Government; comments on low morale and the growth of anti-British feeling and unrest; comments on the importance of getting Indian leaders involved in the war effort and relates the text of an explanatory letter sent to the main Indian community; asks for full authority to negotiate an adjustment subject to the agreement of the Commander- in-Chief [General Sir Archibald Wavell] and Viceroy [and Governor-General, 2nd Lord Linlithgow, earlier Lord Hopetoun].