CLOSE STUDY.

Auckland Star, Volume LXII, Issue 194, 18 August 1931, Page 7

CLOSE STUDY.

BRITISH ECONOMIES.

Cabinet Committee Holds ThreeHour Sitting.

WAGE CUT RUMOURS DENIED.

(British Official Wireless.)

(Received 12 noon.)

RUGBY, August 17

The Cabinet sub-committee met this afternoon for three hours and continued the study of the economy projects before it.

A week of important political events began with, the return to London this morning of the Prime Minister, Mr. MacDonald, with Mr. Philip Snowden, Mr. Arthur Henderson, Mr. William Graham, President of the Board of Trade, and Mr. J. H. Thomas, Dominions Secretary, who form the Cabinet sub-committee.

Mr. Mac Donald will to-morrow continue the preparation of his proposals, and on Thursday the Ministers are to explain the financial position to the General Council of the Trade Union Congress and the executive of the Labour party, and they will probably also be in consultation with the leaders of the Conservative and Liberal parties.

The Prime Minister sa~- to an interviewer: "I want you to deny a printed statement that I, in company with Mr. Lloyd George and Mr. Baldwin, intend to issue a manifesto calling for a temporary all-round cut in wages and salaries.

"I am amazed that anyone should attempt to use the nation's difficulties to spread panic-stricken mischief of this kind. Th- statement is a sheer malicious invention.

"It is a prime mistake to confuse the need for balancing the Budget with talk of a reduction in wages. Instead of achieving national union, which is essential, it would make the industrial position worse."

The "Daily Herald" states that Mr. Mac Donald and his colleagues will stress this point of view to the members of the council of the Trades Union Congress and of the executive of the Labour party when they meet them on Thursday.