MR. LANG'S DILEMMA.

New Zealand Herald, Volume LXVIII, Issue 20929, 20 July 1931, Page 9

MR. LANG'S DILEMMA.

NEEDED FINANCIAL AID. COMMONWEALTH'S TERMS. DRASTIC NATURE STRESSED. PUBLIC SERVICE SALARIES. By Telegraph—Press Association—Copyright. (Received July 19, 5.5 p.m.) SYDNEY. July 19.

The Canberra correspondent of the Sydney Sun says it is understood that the terms under which the Commonwealth Government and the Loan Council might agree to assist Mr. Lang include drastic guarantees that the amounts of interest duo to the Commonwealth by the New South Wales Government will be paid, that the Lang plan will be abandoned in part and that no .State taxation measure will be introduced which would dry up the field of Federal taxation in New South Wales. The Federal Government's issue of Treasury bills for this purpose would be contingent upon the consent of the Loan Council, a meeting of which is almost impossible before Thursday. The Federal Cabinet will not approve of any but the most urgent assistance being given to New South Wales without the authority of Parliament, the temper of which at present is said to bo opposed to giving Mr. Lang special help. Mr. Scullin already is facing charges from both sides that the Government has been too lenient with 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 that no steps should be taken to keep him in office. If Federal help is not provided by Thursday, well informed people express the opinion that there is little hope of the New South Wales public service salaries and wages being paid in full. Mr. Lang may ration the available funds and withhold payment from the higher paid State officials.