MR HUGHES AND MR WATT

Otago Daily Times, Issue 17974, 29 June 1920, Page 2

MR HUGHES AND MR WATT

QUARREL MAY HAVE GRAVE POLITICAL RESULTS.

(Fkom Oob Own Cobeespondent.)

. SYDNEY, Juno 15. In© sudden and unexpected resignation of Watt from tho Federal Ministry—which is the political sensation of the day—is likely to have far-roaching and important results. The public> statement which Mr Hughes will mako in the course of the next few days will probably show that tho immediate cause of the Treasurer's resignation has to do with tho sale of the commonwealth wool clip last year. The whole of the production of wool in Australia was pooled in the last year or two of tho waj, and, during the absence of Mr Hughes at tho Peace Confer once, was sold by Mr Watt (Acting Prime Minister) to the British Governmont. Mr Hughes, on returning to Australia, sharply criticised the terms of the sale; and since then, as it was seen that the sale was practically a gift of some scores of millions of pounds to tho British Ixovemment, Mr Hughes has been bitterly outspoken. On each occasion Mr Watt has do him eat his words and declare that he (Mr Watt) did what seemed best at tho time; but there has been evidence of strain between the two of them recently. But, with that given in, there was closer co-operation and friendship between Mr Hughes and Mr Watt than between Mr Uughes and any other Minister. When Mr ■Hughes came back, he declared, in the Melbourne Town Hall, when thanking. Mr VVatt for having "played the game" while he was. away, that Mr Watt might have for what it is worth" his friendship for all time. Following on that, Mr Hughes lias undoubtedly been, working in close consultafaon with Mr Watt, while practically ignoring other members of his Cabinet. But, ivith all that given in, it has been obvious' to those with a view b&lvind the scenes that the break-up of the Nationalist Oabrnet was bound to cam© sooner or later. JL he two elements—Labour and LiberalOonservative—in the Cabinet have never been really welded. The "Big Four" of M?uJr Hu ? h s?' , Watt - Senator Millen, and Sir Joseph Coofe—and the two latter have never tried to disguise their hostihty to Mr Hughes. The Hughes-Watt friendship held the two parties together: and, sinoe this has apparently ended in a reverberating smash, there must bo important devebpments. Mr Hughes will prolir w% row the blame for the trouble upon Mr Watt, and charge him with deserting his post at a most critical time; and Mr Watt's reply may give tho signal for hostilities between the Hughes followers and the old Liberals.

Mr Hughes, in conversation witrf hia friends, always insists that he is as good a. Labour man as ever ho was, and that, if he is with the Liberals, he is not of them. It is .behoved that ho still hopes to lead Australian Labour—although Labour, officially at any rate, is bitterly antagonistic to him