BRITISH CRISIS

Taranaki Daily News, 24 August 1931, Page 9

BRITISH CRISIS

KING RETURNS TO LONDON GOVERNMENT’S PREDICAMENT RECASTING OF THE BUDGET CONSERVATIVES ’ DEMANDS ECONOMY TO MEET DEFICIT By Telegraph—Press Assn.—Copyright. Rec. 11.30 p.m. London, Aug. 23. In view of the political crisis the King returned to London from Balmoral to-day. Crowds cheered His Majesty on his arrival at Euston station and again as he drove to the palace gates. Mr. Ramsay MacDonald arrived at the palace at 10.30.

A large crowd broke loose and surged round Mr. MacDonald as he left, the Palace after an hour’s audience with the King. Apparently he was cheerful. Mr. Stanley Baldwin and the principal Conservatives met this morning and the Liberal “Shadow Cabinet” will meet this afternoon.

The Cabinet met at 9.3 d yesterday and adjourned for luncheon at 12.10. Immediately afterwards Mr, McDonald requested the Opposition leaders to visit Downing Street. Mr. Neville Chamberlain, Sir Samuel Hoare, Sir Donald Maclean and Sir Herbert Samuel arrived within a few minutes to interview Messrs MacDonald and Snowden.

An official statement was issued later stating that the Cabinet had been putting the finishing touches on a scheme which, it was believed, would meet the situation. They would meet to hear the results to-morrow.

The Daily Mail says the Government has ordered the suspension of all War Office works and services at home and abroad, resulting in a saving of £2,000,000 to £4,000,000. It is understood similar instructions will be issued by the Admiralty, Air Force and Office of Works.

The whole Press agrees that the situation is most critical and that the Government’s position last night was precarious.

According to the Da-’y Herald the Conservatives are demanding that 75 per cent, of the Budget deficit shall be met by economies and only 25 per cent, by taxation. The Times says 30 membe. s of the London Common Council petitioned the Lord Mayor to convene the corporation to appeal to Mr. MacDonald to relieve the distressed stale of the people and restore international confidence. The National Chamber of Trade, including 100,000 traders, has addressed Mr. MacDonald, Mr. Snov.den and the Opposition leaders demanding real economy.