PRESS VIEWS DIFFER

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

PRESS VIEWS DIFFER

tN.Z. Press Association.—Copyright i LONDON, January 7. British morning newspapers were sharply divided today over the resignation last night of the Chancellor of the Exchequer (Mr Peter Thorneycroft) and his top aides, in protest against rising Government expenditure. While a number of newspapers considered that the sum of £5O million —the total increase proposed—was too small to warrant the resignations, others applauded Mr Thorneycroft for defending his principles. Most newspapers welcomed the statement by the new Chancellor (Mr Heathcoat Amory) that the change meant "no change in the Government economic or financial policy.”

The “Manchester Guardian” said: “The loss of Mr Thorneycroft matters less than the possible loss of confidence in sterling.” “The Times” said: “The Government will have to show by their further actions that there is not really the weakening of purpose that many, people will be inclined to infer.” The “Financial Times” said; “The sum of £5O million—if it were in fact this alone—seems small to set beside the shock to the sterling system which the resignations could involve.” “To suppose that Mr Thorneycroft should have done otherwise than he has is to neglect the evidence of the supporting resignations,” the “Liverpool Daily Post” said. “Fiscal Purity”

The “Daily Express” said: "The people will feel, as the Cabinet felt, that this was carrying fiscal purity to excessive lengths.”

On Mr Macmillan’s intention to set out as on his Commonwealth tour, the “Daily Express” said: “It should be read all over the world not simply as a proof that the Prime Minister is a man of iron nerves, but also that he leaves Britain set on a sound course and in the right hands.’”

Conservatives Angry

(Rec. 10 p.m.) LONDON, Jan. 7. The feeling among many Government supporters was anger that Mr Thorneycroft had chosen to base his stand on principle on a case representing an increase of only about a hundredth part of Britain’s annual Budget. Conservatives were angered lest Mr Thorneycroft’s action should add to their difficulty in correct ing the recent swing away from the Government which persisted in a series of by-elections throughout last year.

The Leader of the Labour Party (Mr Gaitskell) said today that the resignations showed that the Government was “visibly crumbling.” “The Prime Minister sets out today on an important Common wealth mission, but leaves behind him a confused Cabinet and a divided party,” he said. "Surely the time has come for a change.’’