AMORY NAMED SUCCESSOR

Press, Volume XCVII, Issue 28479, 8 January 1958, Page 9

AMORY NAMED SUCCESSOR

Reasons For Resignation

(Rec. 7 pun.) LONDON, Jan. 6.

A few minutes after the announcement of Mr Thorneycroft’s resignation it was announced that his successor would be Mr Heathcote Amory, the Minister of Agriculture. Mr John Hare, formerly Secretary of State for War. will succeed Mr Amory as Minister of Agriculture.

Mr Christopher Soames. Financial Secretary to the Admiralty.

will take Mr Hare’s place as Secretary of State for War. Mr Jocelyn Simon, Under-Secre-tary at the Home Office, will succeed Mr Enoch Powell as Financial Secretary to the Treasury. No new appointment is being made rs Economic Secretary to the Treasury.

Mr Amory said the change of Chancellor would mean “no change in the Government’s economic or financial policy.’’

Mr Thorneycroft’s Letter

Mr Thorneycroft, tendering his resignation, wrote to the Prime Minister: *

“I am not prepared to approve the estimates for the Government’s current expenditure next year at a total higher than the sum which will be spent this year. “Your proposed departure from this country on January 7 has made it essential that a decision on principle on this matter be taken now. It is clear that in this proposal I have not your support or that of a number of our colleagues.

“In the circumstances and since the level of Government expenditure is central to my responsibilities as Chancellor of the Exchequer, resignation is the only course open to me.” “In the sterling crisis last summer restriction was placed in money terms upon the level of public investment and of bank advances.

“The Government itself must, in my view, accept the same measure of financial discipline as it seeks to impose upon others,’’ Mr Thorneycroft said.

“I recognise that in order to achieve my aim some combination of politically unpopular and popular courses would have been necessary.

“I, nevertheless, regard the limitation of Government expenditure as a prerequisite to the stability of the £, the stabilisation of prices, and the prestige and standing of our country in the world.’’

Mr Macmillan said last flight that it was necessary to put on record that, throughout the 12 months in which the present Government had been in office, the Chancellor had had the full support of the Cabinet in the financial and economic policies which they had worked out together. “When, only a few days ago, estimates were out before us, the Cabinet decided to pursue by every possible means the policy of keeping Government expenditure substantially the same as last year.’’ Mr Macmillan, in a letter which replied to Mr Thorneycroft’s resignation said: “We were faced initially with estimates which, as they were the first presented, were considerably higher. “Many of these increases were unavoidable, partly because of the larger number of children at school, the expansion of secondary and university education and partly because provision had to be made for an increasing number of old persons. “Nevertheless, as a result of our work together, the Cabinet was able to reduce the excess to something less than 1 per cent, of the current Government expenditure.

“Moreover, we agreed to review our policy during the coming year in order to provide a greater measure of control in the expenditure in a certain section of the civil side, which can only be dealt with as a longer term problem. “No Difference’* “I therefore cannot accept that there was any difference of principle between the rest of the Cabinet and yourself,” Mr Macmillan said. “A resignation is always a

difficult decision. It is in my view, justified only on matters of principle. “I must add that your resgination at the present time cannot help to sustain, and may damage, the interests which we have all been trying to preserve.” It was learned later at No. 10 Downing Street, that the Pay-master-General (Mr Reginald Maudling) will in future assist the Chancellor of the Exchequer over a whole range of economic matters in addition to his duties in connexion with the European Free Trade Area.

Members of Parliament, it is thought, would assert that tonight’s news will detract from Mr Macmillan’s prestige and give the impression that the political situation in Britain is unsteady Mr Nigel Birch said last night; "Other Ministers at the Treasury and I have thought it right to resign because we doubted whether it would be possible to be safe and secure at home and abroad and to stop rising prices unless Government expenditure was cut down.

"This would certainly have involved some rough times, but we believed it was essential to do this.’’