SECRET WELL KEPT.

Auckland Star, Volume L, Issue 199, 22 August 1919, Page 5

SECRET WELL KEPT.

[REASONS FOR DISSOLUTION. TWO IMPORTANT FACTORS. ACCEPTANCE Or A CRUISER. NATIONALISATION OF COAL. BIG PROBLEMS AHEAD. (By Telegraph.—Special to "Star."V WELLINGTON, this day. To-niglit's development in tine National Government was a well-kept secret, one morning paper only publishing a hint of the possibility of the part,}" tiruce ending before the session, a 'hint which t.he evening paper here quite ignored, though at 5 p-m., following the Cabinet luncheon to Admiral Lord Jellicoe, Sir Joseph Ward proceeded to Government House and handed this resignation to the Governor-General.

While those in touch with Ministers realised that the twio sections in Cabinet were definitely lining up, it was generally expected that the session would open with the National Government on the Treasury benches. It was also understood that the Financial Statement was well forward, a large amount of references to Departmental matters being ready for the printer, while a number of Government bills were printed, bearing tihe names of Ministers who, during tonight's development, will not be in the Government when the House meets. TWO IMPORTANT FACTORS. The question naturally suggests itself, whait was the reason precipitating the dissolution of the partnership only a week before the session? Two important factors are prominent. First, the Prime Minister' 6 acceptance of a cruisex from the Home authorities. This, I understand, was done without the concurrence of Sir Joseph Ward, who knew only after the cruiser -had been definitely accepted, though Mr. Massey maintains this involves no de-paxture from the arrangement under wihic.h f»ie tiny warship Philomel was maintained in New Zealand waters out of the Dominion's £ 100,000 annual navy subsidy. There is the opposite view that a modern cruiser, with its expensive upkeep, is a direct adoption of the principle of a local navy.

Nationalisation of coal mines is the second differing principle. Sir Joseph Ward favours the plan, but it is significant that Cabinet's reply .to tbe Alliance of Labour request on this line contains no reference to such an important suggestion.

These differences suggest that the Reform portion of the National Government was stretching the terms of the truce beyond breaking point, and forcing the Liberals to refuse the responsibility of meeting the House with such a joint programme. FUTURE DEVELOPMENTS, So far only Sir Joheph Wards resignation .has bean tendered, but I understand the Hons. Mac Donald, Russell, Hanan and "Wilford will resign to-day ( Friday}. The 'task before the Premier is to reorganise the Ministry before .the meeting of Parliament. He will consult ihis own party on Wednesday. Dissolution of the National truce means a reduction in the number of Ministers, it being understood that Cabinet will now revert to the peace footing of ten paid ministers, plus a representative of the native race. BIG PROBLEMS AHEAD. The Reform party will frame a Legislative programme, and ask the House to carry essential legislation arising out of the war, such as continuation of the moratorium. It also has the duty of framing a .scheme of war gratuities" for

The Reform party will frame a Legislative programme, and ask the House to carry essential legislation arising out of the war, such as continuation of the moratorium. It also has the duty of framing a scheme of war gratuities" for the Expeditionary Force, which has not 'been pint through Cabinet under the National Government regime. Repatriation, finance, the war loan, and taxation are other big problems left for the party Cabinet, which now takes controL OTHER RESIGNATIONS TO-DAY, {By Telegraph.—Press Association.) WELLINGTON, this day. The rest of the Liberal members of the Ministry will follow Sir Joseph Ward's example and resign. The Hons MatDonald and Wilford will tender their resignations to-day. The Hon. G. W. Russell has several important matters tio clean- up which will take him till Monday.