CHANCELLOR’S RESIGNATION

Press, Volume XCVII, Issue 28480, 9 January 1958, Page 9

CHANCELLOR’S RESIGNATION

Division Of Opinion (N.Z. Press Association—Copyright) LONDON, January 7. The Prime Minister (Mr Macmillan) has left Mr R. A. Butler, his deputy—and erstwhile rival for his post—in charge of the Government while he is on his 30,000-mile tour which will take him to India, Pakistan, Ceylon, New Zealand, Australia and Singapore. The newspapers and the public were today strongly divided in their views on the Government crisis. “The Times” gave powerful backing to Mr Thorneycroft, charging the Prime Minister with failing to support “his courageous Chancellor” in his battle for Britain’s economic security. Others such as the Conservative “Daily Telegraph,” said the resignation was “misjudged” and would have deplorable effects.

The leaders of the Labour Parliamentary Opposition tonight decided to press for the Government resignations to be debated as soon as Parliament reassembles on January 21. The party’s “shadow cabinet”

announced this in a statement after a meeting at the House of Commons.

The statement said: “The resignation of the Chancellor of the Exchequer, with the other two Treasury Ministers, is a grave and unprecedented event. “Following, as it does, upon the resignation of other important Ministers within the last 12 months, it provides further unmistakable evidence of the progressive distintegration of the Government. •

“The plain fact is that the Government is no longer able to give the country the coherent and purposive leadership which is so urgently needed. “Parliament will certainly expect a full account of the circumstances leading to this latest crisis and of its bearing upon the Government's economic and social policy.” Conservative Ministers and members of Parliament tonight attacked or supported the Ministerial on public platforms throughout the country. The majority of the comment was critical of Mr Thorneycroft and his two Treasury aides, but there was sufficient support for them to indicate a sharp division in the party on the issue. One junior Minister, Mr Harmar Nicholls, said all the Cabinet and the three “rebels” should have their . heads knocked together. Mr Nicholls, Parliamentary Secretary to the Ministry of Works, said the resignations were unnecessary. The Minister of Power, Lord Mills, said in a statfement that the “application of the rigid formula insisted upon by the Chancellor at short notice would have taken us beyond what the rest of us thought practical and so, to the regret of all, we had to part company.” Lord Hailsham, chairman of the Conservative Party, said in a television interview that he did not think there would be a large body of opposition. He thought that . when the Cabinet’s decision had been explained rationally, it would be accepted. The “Daily Mail” quoted an interview with Mr Birch, in which the former Economic Secretary to the Treasury said: “We‘ resigned because we put the strength of the pound first. We nailed our colours to the mast and were prepared to see the pound through its troubles even J if this involyed doing unpopular things. Our colleagues agreed but were not prepared to back us.” Mr Birch was also quoted as saying that “basically, the Prime Minister was not behind the Chancellor. He wasn’t prepared to face the consequences of being tough.”

Civil Servants Wait LONDON, January 7. The trade union leaders of 650.000 civil servants today decided to postpone protest action against the Government’s "get tough” campaign over Civil Service pay, it was reported today. They agreed instead to adopt a waiting policy, in view of Mr Peter Thorneycroft’s resignation as Chancellor of the Exchequer. Mr Thorneycroft had ruled that cuts must be made in Government departments to offset the cost of pay awards. Duke. Of Kent To Learn Riding LONDON, January 7. The 22-year-old Duke of Kent, whp is assistant adjutant of the Royal Scots Greys—a cavalry regiment—is to take a six-week riding course, it was announced tonight. The Duke, who is seventh in line to the Throne, and hollds the rank of lieutenant in the Greys, has had less riding experience than any other members of the Royal Family.