THREAT TO AUSTRALIAN GOVERNMENT

Southland Times, Issue 23989, 2 December 1939, Page 5

THREAT TO AUSTRALIAN GOVERNMENT

CRISIS OVER RATES OF PAY FOR SOLDIERS -- ■ i FATE WILL REMAIN IN BALANCE UNTIL TUESDAY (United Press Association—Telegraph Copyright) (Received December 1, 9.40 p.m.) SYDNEY, December 1. ‘ The Canberra correspondent of The Sydney Morning Herald says that the stability of the Federal Government is threatened as a result of a crisis that has developed over the rates of pay of the military forces. After the Government had been threatened with summary defeat last night, dramatic efforts were made to reach a basis of compromise. When the meeting of Cabinet ended at midnight, however, it was unofficially stated that the Ministry had decided to continue to resist the demands that the rates should be increased. The threat of a premature election and the fate of the Government will remain in the balance until Tuesday, when it is expected that the political crisis will be revived. In the meantime the Government will have an opportunity to consider what compromise, if any, can be justifiably made to meet the demand of the Opposition for “nothing less than the basic wage for the soldier.” The Country Party will also have time to consider whether it will form a common front with Labour and demand a showdown. Sir Earl Page, the former Deputy-Prime Minister, during the debate urged the adoption of New Zealand rates for soldiers and their dependents. Members of the Second Australian Imperial Force while abroad will be paid in sterling and allowances and allotments to dependents in Australia will be paid in Australian money. This was announced by the Minister for the Army, Mr G. A. Street.