DRAMATIC DAY

Taranaki Daily News, 22 August 1931, Page 9

DRAMATIC DAY

BRITISH BUDGET CRISIS

NEGOTIATIONS BY PARTIES

‘GOVERNMENT IN BALANCE’

MR. MACDONALD’S BAD DAY

TRADE UNIONS’ ATTITUDE

By Telegraph—Press Assn. —Copyright. Rec. 10.30 p.m. London, Aug. 21.

“It was the most dramatic day in politics since the war,” says the Daily Mail in reference to the British economy negotiations. "The Government’s fate hung in the balance at midnight, when it was clear that the determined Opposition might succeed to power. It was equally evident the Conservatives were not anxious for office, preferring to retain the Labour Government instead of inheriting the difficulties. It remains to be seen whether Mr. MacDonald will prefer a dramatic stroke. If he resigns the Conservatives will be compelled to take up the Government or face an immediate election’*

It ib generally agreed that the Government experienced a bad day and had to face candid criticism from friends and opponents in the Trade Union General Council, which eat in continuous session for nine hours.

The Daily Express says Mr. MacDonald gave the joint meeting only an outline of the Government’s proposals. A Trade Union representative who was present said afterwards that these were no different .from what he had read in the papers. There was no mention of a tariff until someone inquired about it. The reply was; “The tariffs are in the air. We have not made a decision yet.” Mr. Snowden is pessimistic and refused to disclose the details of his taxation plans, hut it is understood dole economies are the chief; cause of difference between the trade unions and the Cabinet.

The Daily Mail says the Trade Union Council bluntly told the Government that its proposals were not acceptable. “Although the Government has approached balancing the Budget in the right spirit it : unfortunate the day has ended without a sign of a definite time-table for the next few hours,”'says the Times in a leader emphasising the urgent necessity for action owing to the financial situation deteriorating hourly. “Until there is 'some dramatic proof that the extravagance policy will be reversed, delay will cause a renewal of the nervousness of the world. The antidote must be administered within a few hours.”

The Cabinet meeting concluded tonight and the Economy Committee then received a Trade Union Congress delegation.

Political circles are of the opinion that the chief Conservative objection to the Government’s proposals is the weakness of the economy eide, while the Cabinet itself is sharply divided as regards ways and'means bf- economy. The question of co-operation between the three parties is still in the balance until it is certain the Government will go further in the direction of economies.

PARTIES’ LEADERS CONFER.

OFFICIAL STATEMENT ISSUED.

British Wireless. Rugby, Aug. 20. . The Cabinet, after five hours’ discussion of plans for balancing the Budget, adjourned at 10.30 last night. The Ministers will reassemble to-night to receive the report of the Prime Minister

on a series of important conferences which are being held. A further Cabinet meeting will be held to-morrow. To-day’s meetings began with an in-ter-party conference at Downing Street. The Prime Minister and the Chancellor of the Exchequer met members of the Conservative and Liberal parties. The

Conservatives were represented by Mr. Neville Chamberlain-and Sir Samuel Hoare; the Liberals present were Sir Herbert Samuel and Sir Donald Maclean. When they withdrew the consultative committee was received. This committee was formed to serve as a link while Parliament was in session between the

Cabinet and the rank and tile of the party. The general council of the Trades Union Congress met at 2 o’clock, followed an hour later by a joint meeting between the council and the national ex-

ecutive of the Labour Party. The statement issued after the meeting recorded:— “The Prime Minister and Chancellor of the Exchequer briefly reviewed the

national financial emergency and indicated the principle underlying the proposals the Government had under consideration with a view to balancing the Budget. At ti.e conclusion of the joint meeting the national executive resumed its session and gave consideration to the situation as presented by Ministers to the joint meeting. After statements by Messrs. A. Henderson and J. RC’lynes it was agreed to leave the position with the Government.” The Government’s statement was considered later by the general council of the Trades Union Congress, - and the views of the council are being communicated to the Cabinet to-night. Referring' to tire inter-party conferenee, Sir Samuel Hoare stated in an interview that they had a preliminary interchange of opinions in a free, frank

and informal talk. They had figures submitted by the Government. Although they surveyed a very wide field, they had not yet a comprehensive solution of the crisis, which demanded econsmy and presupposed sacrifices by all classes. Sir Samuel added that since the conference he and Mr. Chamberlain had been in communication with Mr. Stanley Baldwin, who was at Aix-les-Baines. They consulted their other colleagues. The Conservatives were most anxious to co-operate in the national emergency. A further inter-party conference would be held to-morrow.