LEFT TO FACE FACTS

Evening Post, Volume CXIII, Issue 26, 1 February 1932, Page 7

LEFT TO FACE FACTS

COMMONWEALTH REPLY,

NO SERIOUS EFFORT MADE

TO HONOUR OBLIGATIONS

United Press Association—By Electric Tel«-

graph—Copyright.

MELBOURNE, 31st January. When the Premiers met to-day, the Prime Minister (Mr. J. A. Lyons) announced that the Federal Government had "been forced to the conclusion that Mr. J. T. Lang will ignore any undertaking that he has given whenever it suits him, so long as the Commonwealth is prepared to shoulder the responsibilities of the Government of New South Wales. In. these circumstances it is for the Government of that State itself to face the difficulties which by its own action it has created."

Thus tha> Commonwealfh Government will not provide the £.500,000 required by New South Wales to meet its oversea, interest, and Mr. Lang must taka the full responsibility if the State defaults on Monday, when £958,000 is duo in London.

Mr. Lyons's announcement followed a meeting of the Federal Cabinet this morning, when the view taken was that thj position created by Mr. Lang's demand yesterday for an advance was bound to recur, and that the only way to meet it was by immediate drastic action. The Commonwealth Government was not prepared to support any proposal in the Loan Council to render further assistance to New South Wales.

It was considered that Mr. Lau^; had made no serious attempt to honour his obligations under the Premiers' Plan, and had broken his undertakings to meet his own commitments or reduce the State expenditure.

Mr. Lyons said that the. action taken was in the interest of the credit of the Commonwealth and States, and he did not fear any wrong construction beinjf placed upon it abroad.