THE PROPOSALS IN WRITING.

Press, Volume LI, Issue 15313, 29 July 1915, Page 6

THE PROPOSALS IN WRITING.

PRDIE MINISTER TO LEADER OF THE OPPOSITION. Copies of the following correspondence were supplied to tuo Press representatives by-Sir Joseph Ward at midnight :— Primo Minister's Office, Wellington, July 27th, 1015. Dear Sir Joseph,— Referring to our conversation of yesterday, and to the proposal . to form a National Government to carry on the business of the country until the termination of the war, I havo decided, on behalf of tho Government Party, to submit tho following proposals lor your consideration: — 1. Tho proportion irom each side of tho House in tho National Ministry to bo as follows:—From tho Government side, six mombcrs, including tho member of tho Executive representing the Native race, who will hold Cabinet rank; from the Opposition side, live members. 2. Myself to be Primo Minister, and also to take tjic portfolio of Defence and the Hon. Mr Allen lo hoUl tho portfolio of Finance. 3. We cannot see our way to accept your suggestion that there should bo five mombcrs from each side without the Prime Minister possessing a easting vote or without, tho representative of the Native race being allowed to exercise a vote. \. There are several details which it i 3 necessary to mention at present, but in the event of a by-election during the period of the National Government, the practice, followed in Britain should he followed in New Zealand, viz., that tho vacant seat should go to a representative selected by the party to which the former member be'onqod. and that both parties shou ! d <oin in supporting tho candidate as T am. vri".rs sincerely. (Signed) W. F. MASSEY. LEADER OF OPPOSITION'S REPLY. Leader of Opposition's Office, Wellington, July 28th, 101.5. Dear Mr Massey.,— I beg to acknowledge receipt of your letter of the 27tii instant, which 1 received after the House rose last U'lglit. Regarding your proposals for the formation of a National Cabinet to carry on tho business of the country until tho termination oi the war, permit mc io remind you that your lira: proposal to mc was that a National Cabinet should bo formed in the following pronoition: — From the Government Party, six; from the Onnosition Party, three. This pronosaf 1 submitted to a meeting of the Onnosition Party held on July Gth, and" it was rejected as .an unfair proposal, seeing the parties in the House were practically equal in numbers. I was authorised to submit to you an alternative proposal which was unanimously agreed to, the full resolution of' the caucus, which was duly handed to you. bema as follows: "'That Mr Massey be informed that the Opposition considers his offer of constituting a National Cabinet with six Government members and three Opposition members unfair, seeing tho Opposition is practically equal to the Government P.irt.v. in point or numbers. The Opposition is desirous of assisting the Government m war matters and as an alternative to Mr Massev's proposal su-r-'osts that such asM-itsince cuuld be bettor rend-red n the rowers of tho Oofenee Committee wcrs extendi dunn- the war in connexion therewith to cnabl* the Administration to more effectually deal with the present crisis. The. Op- ! po-ition Party were of the opinion i that tho extension of the powers and

functions of the Secret Defence Committee so as to cover administration would meet thfs position, leaving the { Government of the day in possession • of its full constitutional responsibili- j ties as regards policy and administra- ; tive acts, apart from those connected j with the war." j After consideration of this pro- ; posal, your next suggestion to mc was j a National Cabinet, fixed upon the i basis of five Government members to j four Opposition members, the rcpre- \ sentative of tho Maori race in ad.ii- | tion remaining a member of the j Executive. ] A meeting of the Opposition Party was duly convened by mo en July . 21st. the result be-inc: the adoption j of the following resolution:— j '"That the Opposition, whi'o desir- j ous of rendering every possible assistance in connexion with the war. j as is evident by the facilities extend- j od by the Government for the passage j of their legislation, firds that- some of the difficulties in the wnv of the formation of a National Cabir-et which presented themselves when the ques- ! tinn was last I h-;<\- b-en accentuated since that time. We believe the best interests cf the Dominion can be served by the Government giving elf eel to our previous! suggestion, namely, that they should j call" to their assistance (without Mini-teriai status) tho services of the f:vo Opposiion members of the Secret Defence Committee who are desirous and willin'i. on behalf of the Opposition, to help in deforce administra--tion in any wav in which their serI vices may be available/ This resolution I harried to yon, and your letter of the 27th inst., which I am now reviowiim. is the answer. j Your latest proposal, contained in j the loiter to which 1 am now re- j ferriu-i. sets out that a National ■ Cabinet should comprise six members ! from the Government I'arty and five from the Opposition Parly, and this . proposal'is als„ open to most serious j objections: In our conversations I j indicated to you that the proposed ! National Cabinet, if constituted, j should be for the currency of the war j and for war purposes only, and that all contentious legislation should be ; avoided, with the exception that 1 sin;- \ gestod the passintr of legislation this session to deal with the cost of livins, j and legislation dealing with ar.oma- I lies that exist in the Legislative Council Act, 1014, in regard to its operation after January next. The elimination of ell contentions legislation with the two exceptions to which I havo referred would make tho Cabinet for the tim? being nonparty, and it would be able to devote itself unitedly to the country's solo interests from a war and financial standpoint. It must not be forgotten that mostimportant- taxation proposals are imminent —taxation rendered necessary . by the war and pensions expenditure, and also owing to tho serious condition of the finances of tho Dominion. Therefore, it is impossible for tho Opposition to commit themselves to tho proposals for a National Cabinet with a pre-existent majority on tho Government sido. This majority of one could insist upon taxation proposals which might be at varianco with principles and pledges which the Opposition hold and had given to tho country. On the other hand, if a National Cabinet with equal representation and equal responsibilities were established for war and financial- purposes, to hold office during th© currency of tho war, taxation proposals would be considered and dealt with by a. nonparty Cabinet, consisting of an equal number from each side of -the House. This would ensure practical unanimity to taxation proposals, as tho equal , division would enforce the need of concession on each side. Thus the' possibility of deadlocks would be avoided, and the best and truest interests of tho country would be upheld during this time of unprecedented crisis. In my opinion such a Cabinet would bo a step of tho very greatest importance. It would b3 the strongest "course for cither political party to adopt, not only in the interests of New Zealand, but in the interests of the Empire. T hold that' neither party should, under a National Cabinet, be in a position to dominate tho other in matters arising out of and connected with the war, but that the Cabinet should be so constituted that its members would unitedly support each other. In conversation I pointed out to you that it would be practically certain, were the minority defeated in Cabinet on any important question, such as war taxation, they would bo compelled to leave the Cabinet, and a condition even worse than now- exists would be set up. I cannot place myself, or ask thos3 associated with mc to place themselves, in a position which may lead to such a state of affaire. . ' .. With reference to Paragraph 4 ot your letter, you may remember that 1 pointed out to you it would ho necessary with a National Cabinet that there should bo no contests for Ly-eleetions. and that if a vacancy occurred in the ranks of any of tho parties tho nominee of the particular party concerned should receive tho united support of the other parties. Such a condition is naturally essential to anything in tho shape of. a National Cabinet. I do not wish to discuss at tnis point all tho clauses of your letter in detail. Regarding Clause *-2, howover, which stipulates thai, you are to bo Prime Minister and hold the portfolio of Defence, and that k_-o Hon. Mr Allen is to hold the portfolio of Finance. I wish to say that I am not desirous of having a seat in a National Cabinet, and I so expressed myself to you. Recognising the gravity cf the situation, I was prepared to subordinate my personal inclinations, mid to agree to you being Prime Minister, conditional on"my retirement after the conclusion of the war. but to seriously suggest a National Cabinet and tlicn make the stipulations contained -in your letter, as to the two portfolios mentioned, makes it appear that you and voiir party desire all tho 'power and prestige attaching to a strong Government during a grave war crisis, while at the same time reiving upon and expecting the Opposition to accent full rcsponsibiiity with a-minority'of members in tho Cabinet holding portfolios which have no direct connexion either with the war or the financial position of the country. In plain terms, if the Government Party retain the Prime. Ministership an:! al«o tho important portfolios of Finance and Defence, it is difficult to see why the assistance of the 'Opposition is asked in a National Cabinet during the war and for war purposes. 1 remain. Your* (Shrricd) J.G. WARD. MR. MASSEY'S FINAL LETTER. The following is the reply sent be tho Primo Minister to the Leader of the Opposition to-nigat: — 23th July. 1915. Dear Sir Josepn,—Raying to your letter of to-day's oale. and refeiring to the subject oi a National Cabinet, I think yon wid aumit that I have been honestly anxious to arrange for a strong Government to cany on the business o' l!l « country during tho war peiioti; and to enable New Zealand to do its duty in assisting the Empire during a time iof crisis'. Uufortunatc.y. difficulties

havo arisen which neither you nor I ha'-o been able to overcome. Vim refer to my first proposal of fix Government members and throo Opposition members in » Cabinet of * . ir,no a> being uniatr. but so,far as 1 can recollect, up to that time no '" substantial body «it public opinion , had suggested a larger proportion, ami it siioujd bo rouiemt'ered tha' this proposal meant ask'.ng several of tr.y colleagues to make great tsaeii. li-eos. it meant asking them to rotiro tYo.n ii<enouryble positions and to. repur.uo ti-.eniseives li-om the comi';mos with whom tuev had worked for many \ear.-. 1 must say. however, that each and every Minister expressed hmiseh' as uiiiing t 0 place his resignation in my hands and abide ioyaiiy by my revision. You next surest that the Opposition is prav.ii(a!ly oi-.ui to the Government party m point of utimbers. Tiie relative strength of parties is 41 to 30, but it seer.-.* to mc there is another way of looking at this matter, and it is this: mat if tho mombeis of a National Cabino; ch<i?on from both sides are to be in propcition to the number of members behind them, they sliotild be in . - propoif.on to tho number of mom- * hers iipo:i the Government side or upon tho Opposition side. who would actual'y support tho no* Administration? This 1 d:d not even* propose, bemuse, from what 1 was i i.vn to uiuler.-uand. I felt certain that there was a very largo proportion of the Opposition members who would not under any circums n's- t to -••'inort a Na-" tional Government. But I certainly did suggest a proportion of five to four as a way out of the difficulty. Th; s you and your party decided that yon could not accept. Negotiations, however, still continued, and 1 think I am right in i saving that tho next suggestion come ; from yourself. It was that tbcra I should" be an equal r.umber of Euro* : uean members on each side, and tjut I 1, as Prime Minister, should possets I a deliberative and a castiiv vote. This ; I accepted upon tho undo standing | that the member of tho Executive rej presenting tho Native race should I be requested not to excrciso a vote ■ except on matters directly affecting ! his people. At this time matters. j looked favourable for the formation j of a National Cabinet, but when wo met again you withdrew this offer, and 1 put forward the six to fivo proposal, tho six members of Cabinet to include the Hon. Dr. Pomare, who - is not at present actually a member of tho Cabinet, but who is.a mem- , her of the Executive Council. "-" -r This arrangement, if it had been agreed to. would have given tho Opposition live European representative! • ' in the Lower House. The Government • '. would have had four European representatives in that Chamber, and -"• tho Hon. Dr. Pomaro, the Leader of tho Legislative Council retaining tho \« . position which he now occupies. I wa« .v;, prepared to stand by this proposal,; and there wero hopes that matters ; might have boon satisfactorily ar-, ranged on this basis. _ . . Regarding your suggestion that a. - non-party Cabinet, consisting of an t p equal number from each side of the House would niako deadlocks impossible I regret that lam unablo ta s . concur in the view that you have, expressed. .'/-,,..'' It seouis to mo that in a Cabinet ,; of fivo and five, as v result of its /-.< very composition, deadlocks would .; ': constantly arise, inasmuch.as upon,'-'-* every question upon which thero was. -", -' . an equal division, no effective dcci-, .'*; sion could bo arrived at. Further, - *" your proposal meant placing your .< •_ parity m precisely tho same position '>•■■/ as the Government* Par* \ which is a ( in the majority, and w.iiLst I om anxioua to avoid all party conflict at \.' r present and desire, if possible, to "»"? eecuro your co-operation, I consider pthat in any arrangement come to. the.!>-'. Government of tho day is entitled to \-' enjoy, at any rato nominally, a pre- „ *• pondoranco of power. \ c, v ' I agree with you that all contend"; ,*. tious legislation should bo avoided; during tho war period, and there ' ■<■ would bo no "difficulty on my part at»'.;< far as that condition was concerned", '*l. but there is ono suggestion in-joar ** letter which 1 think should nqt hire • ~ been made, and which is coataiawl in the following extract:— '/•' ' "To seriously suggest a National-'. Cabinet and then niako the stipula- , tions contained in your letter as'to • \*v tho two portfolios mentioned (De- .""" fence and Finance), makes it appear •; • that you and your party desiro all > '. tho power and prestige attaching to - - a strong Government during a grave * ,i war crisis, while, at mc same time ro- ■* lying upon and expecting tho Oppo- v< sition to accept full responsibility *.' with a minority of members in the Cabinet holding portfolios which have "J no direct connexion either with the ~ v ; war or the financial position of tho V country." When National Governments havo been formed in other countries—in Britain, for instance—the Leader of * the Government in power held the position of Prima Minister and the portfolios have been allotted by him '* probably after consultation with his. ,'.." colleagues, but in this country .the..--portfolios of Defence and Financeare„ ' ■ not by any means the only one* of importance. As a matter of faes the *"- ~, Legislature has indicated by girinß,--a salary of £300 per annum more tot-' the Minister of Railways than to other Ministers except the Prow Minister that it regards the portfolio ,"r of_ Railways as next in important-*, v \ iiiid more important than the port". , lolios of Defence and Finance. Thero.. .*'_ , are a number of other important?- - l portfolios, as you know. Mich as Post * - and Telegraphs. LaiuL. PuelicJloalth. Education, Agriculture, La- . hour. Public Works, etc. "-" I might remind you also that when " =*- the British National Government was __.*■ formed only n short time ap;o, thf-'----proportion of members of the dv- .. • ferent parties was twelve Government and nine Opposition, including one for Lab-aitr. but not counting the Secretary of State for War, who be- £ longs to* neither narty and-is admit- . ted-v not'a politician. v f "observe that in one place yon_ refer to what you cali "tho serious condition of the- finances of the Dominion." I am hapny to be able to that, a nan- from the war ex- s penditurc and the treneral_ effect or the war, tho financial position of toe . country was never more satisfaetorr. As I hnve said. I have made a siiifrro ntfemr,*- to provide arrtmrt a sorious difF.-n'tv durinc a Titi o al \ peT-'od. I b-vo deT lf . what T to b- mv p'nin duty to t T -e FTinsm ;.-'] the* eonnirv. and although my offo«-ts have it ii< eoiKotinC to mc to know that I hnve been sunportod in a most penerou*. and Inval sn'rir by mv ofd'eaTiies. s">d by th« j)!(.»'iiM-s nf'i-r Tvnr+v. my Potion, hpvo been or whether h* v -r. been w-oic the people-of the count-y mnd jud^e. I regain, Yfiir<; K-nrore'r. (S'cnod) W."f. MvccpY. In reply to the letter, dated Jul>* received by Sir Joseph Ward frop thy Prime Minister, at midnicht. »» Joseph Ward has sent a ren'y. but l' i« too late for telegraphing tonight. CABINET RECONSTRUCTION PROBABLE. CsrECiAL to "the miss") WELLINGTON, Ju'y 23.. It is reported that .Mr I>. H. Guthrie '•• will bo appointed to til; the vacancy in j the Cabinet caused by the- it-tn einent o[ Mv F. M. U. Fisher: also that Mr .Massey will probably become Minister of DeVcnec and Mr Alien will resume the Finance portfolio. " It is also stated that two additional Ministers may be appointed after too - end of the session.