ASSUMED CONDITIONS

Evening Post, Volume CXII, Issue 17, 20 July 1931, Page 9

ASSUMED CONDITIONS

DRASTIC GUARANTEES

CHARGE OF LENIENCY,

SYDNEY, 19th July.' The terms under which tho Commonwealth Government and the Loan Council might agree to assist Mr. Lang, Premier of New South Wales, include drastic guarantees . that tho amounts of interest due to the Commonwealth by tho New South Wales Government be paid, that the Lang plan be abandoned in part, and that no State taxation measure be introduced that would dry up the field of Federal taxation in New South Wales, states tho Canberra correspondent of tho ''Sun." The Federal Government's issue of Treasury bills for this purpose is con : tirigent upon the consent of the Loan Council, a meeting of which is almost impossible before Thursday. The Federal Cabinet does not approve of any but the most urgent assistance to .New South Wales without the authority of Parliament, the temper of which at present is said to be averse to giving Mr. Lang special help. Mr. Seullin is already facing charges from both sides that the Government has been over-lenient to New South Wales. The feeling of many members is crystallised into the view that even if the cost is a temporary financial crisis of the first magnitude in New South Wales there should be no further concessions to Mr. Lang and no steps should be taken to keep him in office. I If Federal help is not provided by Thursday^ well-informed people are of opinion that there is little hope of New South Wales Public Service salaries and wages being paid in full. Mr. Lang may ration tho available funds and withhold payment from, the higher paid State officials.