"VICIOUS LIES."

Auckland Star, Volume LXIII, Issue 27, 2 February 1932, Page 7

"VICIOUS LIES."

MR. LANG'S DEFENCE STATEMENTS DENIED. Tense Atmosphere At Premiers' Conference. N.S.W. AGAIN DEFAULTS. (United P.A.—Electric Telejrraph—Copyright) (Received 11 a.m.) MELBOURNE, this day. The tenseness of the atmosphere when the Premiers' Conference resumed its sittings yesterday was not improved when Mr. J. T. Lang announced that he proposed at a later stage to make a prepared statement in reply to what he described as the "vicicus lies" contained in the statement of the Commonwealth Government's policy regarding New South Wales. Mr. Lang declared that ho had only promised to pay £459,703 in interest, conditionally on the Loan Council making a further £500,000 available to meet New South Wales overseas debts. He added that the New South Wales deficit was only half as much again as that allowed by the Premiers' plan, Queensland's would be twice as much. West Australia's was as big as New South Wales in proportion, and Tasmania's was nearly double. In reply, Mr. Lyons denied Mr. Lang's statement, contending tliat Mr. Lang's promise was not a conditional one. He was reluctant to believe that Mr. Lang made his present statement (seriously. Mr. Lang had definitely undertaken to pay the full amount into the Commonwealth Bank on Saturday. "There can be no misunderstanding," added the Prime Minister. The Loan Council decided to authorise the issue of £440,000 Treasury bills to assist the' Governments of West Australia and Tasmania. Mr. Lang opposed help for these States on the ground that if two States were assisted all should be. At one period during the temporary absence of the Prime Minister, Mr. J. A. Lyons, the chair was taken by Mr. Lang, as the representative of the senior State. He was attended hy Mr. J. Lamaro, New South Wales AttorneyGeneral, and Mr. Clarke, Crown solicitor. Queensland Hopeless. The position of the States which have exceeded the deficits permitted under the Premiers' plan was minutely discussed. I Mr. S. M. Bruce, Assistant Federal Treasurer, remarked that Queensland's deficit seemed to be the most hopeless of all. Eventually all the Treasurers were asked to give an undertaking to the conference that they would adhere rigidly to the Premiers' plan. This will entail further cuts in expenditure in all the States concerned. The Commonwealth Bank has indicated that this is necessary so that by the end of the financial year the various Governments may come within the limits of the deficits allowed under the Premiers' plan. Neither the Loan Council nor the New South Wales Government paid the £900,000 interest due by New South Wales to overseas bondholders to-day. Thus default occurs.