HONOURING AGREEMENT

Hawera Star, Volume L, 28 August 1930, Page 5

HONOURING AGREEMENT

AUSTRALIAN PREMIERS’ TERMS Tf.TVPT.~y TO ULTIMATUM. NO REPUDIATION OF DEBTS. 'United Press Assignation—By Electric Telegrap** Copyright). SYDNEY, Aug. 27. "If the Labour movement throughout .Australia endorses the war debts repudiation ultimatum of the New' South Wales militants last night, a breach between the Labour Party' and its Federal leader is inevitable," says the Sydney "Sun." "Mr Scullin’s last recorded speech before sailing for London contained this statement: ‘Repudiation suggests a default that would be calamitous to the whole structure of the present system and would throw nearly a million people out of work. Such a suggestion could not be tolerated.’ " Mr J. E. Fenton, acting-Prime Minister, to-dav said: "We have no intention of "repudiating the agreement reached at the Melbourne conference of Premiers on finance. My Government has concurred in the conference resolutions and we shall at . all costs stand by that agreement." The acting-Primc Minister added that the repudiation resolutions could not be taken seriously as they emanated from a coterie of irresponsibles, but he deprecated the action of newspaper correspondents in cabling them to London. Such action would seriously' prejudice Australia’s credit abroad.

OPINIONS IN LONDON. POLITICAL CRISIS REARED. LONDON, Aug. 26. The New South Wales Trade Union Council’s resolutions in favour of the repudiation of war debts and for a moratorium which have been cabled from Australia have had an unfortunate effect, causing a balanced morning newspaper like the "Daily Telegraph" to feature the message under doublecolumn headings. Then the paper gives the terms of the resolutions. The whole is calculated to give unwarranted importance to the matter. Commenting editorially' on the New' South Wales Labourites’ motion in favour of the repudiation of war debts, the "Daily Telegraph" declares: "If Mr Scullin’s majority in the House of Representatives renounces his leadership a grave political crisis might arise. As for the demand for repudiation this is too shameful to be taken more seriously than as an emotional symptom. But the violence of reaction to proposals involving a sacrifice cannot be regarded without anxiety by debenture holders." A well-informed authority in close touch with Australian financial circles states: "Consideration has been given to the whole question of short-term indebtedness. It was felt in view' of the existing conditions on the money market that a renewal issue would be advantageous. The prestige of Australian obligations has been markedly enhanced by the resolutions passed at the meeting of the Premiers’ Conference last week. ‘ ‘ The result of this, together with the credits pooling scheme, must be a revival of confidence in the Australian situation. Generally' this is already' manifest in a marked improvement in the prices of Australian stocks. ’ ’ • C ANNOT BE ENTERTAINED.” FEDERAL TREASURER’S ASSURANCE. Received 11.45 a.m. to-day. SYDNEY. Aug. 28. The ‘‘Herald” says that the Long faction in the Australian Laibour partyfears that the talk of repudiation, of war debts and of the financial agreement may adversely affect the party’s prospects at the State elections. Its efforts to secure the rejection of the Labour committee’s' demand threaten to cause a split in the State Labour movement. The acting-Federa 1 Treasurer, Air. Lyons, speaking, at Burnie, said the suggestion for repudiation of debts roiTld not be entertained for a moment.