GRAVE SITUATION

Pahiatua Herald, Volume XXXIX, Issue 11831, 22 August 1931, Page 6

GRAVE SITUATION

BRITISH POLITICS BALDWIN HURRYING HOME. ■(Received 10.5 a.m.) United Press Assn —By Electric Telegraph—Copyright. LONDON, August 21. It is understood that the Trades Union Congress to-day told the Government it preferred tariffs to a reduction of unemployment benefits. Conservatives view the situation as ‘ the gravest, ’ and are preparing for a possible change of administration. In response to an urgent telegram Mr Baldwin left Aix Les Bains for London. GOVERNMENT MAY FALL. CRITICAL DELIBERATIONS. LONDON, August 21. The position late to-night remained critical. The Government .still refrains from making a statement. Cabinet sat continuously until four o’clock. The Big Five then summoned the Conservatives and Liberals. The Trade Union Congress Council announced the , decision to refer the Government’s proposal to a full Congres at Bristol on 7th September. This amounts to a Volte face, because the Trades Union Council is well aware of the necessity for urgent action. The Trades Union Council rejected proposals for economies, unemployment insurance, and also salary reductions. It is learned that Cabinet, which has again been pressed by banks, has decided to repudiate the Trades Union Council and proceed with the plan for drastic economies. Revenue tariff was definitely ruled out. The Conservatives and Liberals told the Big Five that the proposals were useless. They demanded greater economies and less .taxes. Cabinet will therefore probably have to re-arrange the entire proposals. There' is still the possibility - of the Government falling.