CABINET FALL EXPECTED

Hawera Star, Volume LI, 25 August 1931, Page 5

CABINET FALL EXPECTED

ACUTE PARTY DIFFERENCES

REDUCTION OF SERVICES

OPPOSITION TO ECONOMY

LONDON, Ana. :24. in view oi the> acute Known to prevail in the Cabinet there u as an expectation in Condon throughout the clay that Mr. MacDonald would compelled to resign. .■summing up the position at midnight the "Daily Telegraph 1 anu "l/aiiy Herald” agreed that at least seven Ministers are prepared to iesign rather than accept a programme which the Trades Union Council opposes. These are Messrs. .Henderson, ilrahain, dynes, Tom Johnson, GieenvvOtHi, i.ansoury and Adamson.

w lieu .Mr. MacDonald lert Downing .Street to .see tbe iving Jus emotion was oDvaoti'S. In the car going; to the iiuate lie was seen to take fit ns nat and bury hut face in ins tiaun.s. i lie final blow to Mr. .MacDonald s authority was the realisation that the oioerals' obpection to the Cabinet scheme were now just as strong as those of the Conservatives. Indeed, the views of the Opposition parties narmonised to an unexpected extent, chiefly owing to the stubborn resistance *of seven Ministers to a drastic reduction in the cost of unemployment insurance. The necessity for a reduction was the greater because it s believed that the unemployment total will be more than three millions when the winter comets. Though the Cabinet was obviously tottering to its fall, the actual resignation had not been deckled when the i.eaclers who had called in Downing .Street* dispersed and, anxious and tired out, Mr. MacDonald went to hed at 12.15.

The decision not to issue a statement followed the arrival ol Mr. Baldwin, Sir Herbert Samuel and other members of the Opposition ill Downing Street, and is interpreted t.o mean that the formation of a National Government was at least discussed, therefore Mr. MacDonald s lesignation is contemplated after a Cabinet meeting at midday* on Monday. It is” officially stated from Downing Street that on Mr. MacDonald’s advice his Majesty asked Mr. liachvm and Sir Herbert Samuel to see him. be cause he wished to hear from them the position of the respective parties. It iis understood that these audiences had no relation to any possibility of the Government’s resignation. Mr. MacDonald explained to his Majesty ,he situation according to his own Im•ressions, and suggested that, the JJp position leaders should have a similar port unity.

TRADE UNION PREDICTION

PRIME MINISTERS MANNER

CONGRESS LEADER’S OBJECTION

LONDON, Aug. 24. The Trade Union Council’s belief is that the revised Government proposals will widen the cleavage and that even if the Government succeeds in forcing the cuts in the social services through Parliament it will he forced to resign the day after the Economy Bill received Roval assent. “We also objected to Mr MacDonald’s airv, off-hand manner with us,” added a Trade Union Congress lender. “This Government was elected by a class to defend a class, and at the first big test it runs to make terms with other parties.” The “Chicago Tribune” published a cablegram dated London, Monday, saying: "“Britain will ha a new Government to-day. The King will call upon Mr Baldwin to form a new administration to carry out stringent measures of economy, wJiicli tilie licihour Government dared not inflict against its own ranks.” The Tribune’s” informant charges France with withdrawing gold from London at a terrific rate —a total of £300,000,000 in the past fortnight.