BRITISH CRISIS.

Star (Christchurch), Volume XLIV, Issue 201, 25 August 1931, Page 7

BRITISH CRISIS.

Co-operation to Deal with National Needs. NOT ORDINARY COALITION. (Continued from page 1.) United Press Assn. —By Electric Telegraph—Copyright. (Received August 25, 12.30 p.m.) LONDON, August 24. An official communique states that the Prime Minister’s consultations with Mr Stanley Baldwin, Mr Samuel and Mr Philip Snowden have made considerable progress regarding the members of the Ministry, the specific object of which will be to deal with the existing national emergency. There will not be a coalition in the usual sense, but the Government is co-operating for this one purpose, • after which the parties will resume their respective positions. It is expected that Parliament will be summoned on September 8, when proposals will be submitted for a very large reduction of expenditure and for provision on an equitable basis for the further funds required to finance the Budget as the commerce and well-being not only of the British nation, but also of a large part of the civilised world is built up and rests on the well founded confidence in sterling. The new Government will take whatever steps are deemed necessary to maintain that confidence. It is believed that Mr MacDonald is not likely to have the support of mpre than forty Labour members of the House of Commons, while more than 200 will remain with Mr Henderson. There is little doubt that the full Conservative strength is behind the National administration and also the great majority of the Liberals. With the unanimous support of the Liberals and Conservatives the National Cabinet would have a clear majority of forty, even if the whole rank and file of Labour went into opposition.

CABINET FORECAST.

France Hopes for Return of Conservatives. “ FAILURE OF SOCIALISM.” (Received August 25, 12.50 p.m.) LONDON, August 24. The diplomatic correspondent of the “ Daily Express ” forecasts that the National Cabinet will be as follows:—i Mr Philip Snowden, Chancellor of the Exchequer; Mr J. H. Thomas, Dominions; Baron Sankey* Lord Chancellor; Mr Stanley Baldwin. Lord Privy Seal and Leader of the House of Commons; the Rt Hon Neville Chamberlain. Health: Sir Samuel Hoare, India; Lord Hailsham, President of the Council; Mr A. M. Samuel, Home Secretary; Sir Philip Cunliffe-Lister, Board of Trade. “ Many important posts will be filled by ministers without cabinet rank, for instance, Sir Austen Chamberlain as Foreign Secretary, Lord Percy in charge of education, and Sir W. A. Jowitt as Attorney-General. European opinion is unanimous that it is a makeshift Government. The Paris correspondent of the “ Morning Post ” says that it is impossible to escape the impression in official quarters that a return of the Conservatives is the event most looked forward to. The Labour Party’s habit of treating France as an obstacle to all progress has antagonised Frenchmen of almost every political colour. Comment from Germany shows that the public realises that the English crisis is intimately linked with Germany, England’s difficulties having partly arisen from Germany. The Press sees in Mr MacDonald’s resignation further evidence of the failure of Socialism to deal with Europe’s economic crisis. In business circles, the Government’s resignation is considered to foreshadow all round wages cuts and increased British export competition.

MAY PULL THROUGH.

General Smuts Advocates Prompt Action. BREAKDOWN MAY HAPPEN. (Received Auust 25, 12.50 p.m.) LONDON, August 24. General Smuts, interviewed on his arrival in England, said: “In some ways the present situation in Britain is as dangerous as during the Great War. It may ultimately demand the same spirit of national and personal sacrifice. Some people are still oppressed with thought of another war, but I am more impressed with the possibility of a financial and economic breakdown which may possibly endanger the whole structure of European civilisation. President Hoover has given a fine lead. If this is boldly followed while yet there is time, Europe may pull through.”

MR FORBES’S VIEW

Political Leaders have Shown Great Patriotism. (Special to the "Star.”) WELLINGTON, August 25. The dramatic political development in Great Britain is the main topic of discussion in the Parliamentary lobbies to-day, and many members are speculating as to the possible effect a British coalition will have on the trend of events in New Zealand. It is argued by some members that an excellent lead has been set the New Zealand Labour Party to consider seriously the question of joining a National Government, if the inter-party conference is at all unanimous on that issue. Party leaders interviewed this morn-, ing were disinclined to comment on the effect the altered situation in the United Kingdom would have on New Zealand politics, but Mr Forbes had a few observations to make in praise of the stand taken by the Conservative and Labour leaders. “ The first thing that strikes one in connection with the development in Great Britain,” said Mr Forbes, “ is the patriotism that Mr Baldwin, head of the very strong Opposition party, has shown in accepting office under Mr MacDonald and Mr MacDonald is to be commended for taking a course which undoubtedly is in the interests of the Empire. It indicates that when the necessities of the country call these men are prepared to sink their personal and their party ambitions and with such a spirit in evidence one feels more

hopeful of the future concerning affairs irt Great Britain. " There is no doubt that the Old Country has her difficulties and these are becoming greater. We in New Zealand are very closely concerned with the prosperity and well-being of Great Britain, because that is the market for our products and if anything goes wrong with our principal customer it must react upon us here. The knowledge that her parliamentarians have set out for the stabilisation of their political situation augurs well for action concerning industrial and commercial problems. The question of Imperial preference will now come into greater prominence than ever before, and will assuredly receive more serious consideration than has been devoted to this important subject in the past.”