FEDERAL MINISTRY

Dominion, Volume 13, Issue 220, 11 June 1920, Page 7

FEDERAL MINISTRY

MR. WATT'S RESIGNATION

PREMIER NOT OFFICIALS ADVISED - GOVERNMENT'S DIFFICULTY ACCENTUATED By Telegraph—Preßs Association-Copyrigt Sydney, June 10. Mr. W. M. Hughes, interviewed a Wagga, disclaims all knowledge of Mi Watfs resignation or the reasons fo it. The newspaper report fairly flabbei gastod him, as Mr. Watt had eve: boasted of the extended powers con fared on him. Mr. Hughes is await ing official advice. He added that th news would not affect his country holi oaySeveral Ministers who were interview ed expressed surprise and astonishmen ; at the report, and are entirely in th dark. In some quarters it is suggests that there is friction between Mr Hughes and Mr. Watt. Others attri buto the action to the recent Fedora Ealaries grab, over which there is mucl heart-burning throughout Victoria. Mr "Waffs decision accentuates the Govern Kent's difficulty occasioned by the void ing of the Ballarat election.—Press Assn ' RESIGNATION REGRETTED IN LONDOI SUGGESTIONS REGARDING THE CAUSE. London, Juno 9. The Australian Press, laorns that t high Anglo-Australian authority suggests that the reason for Mr. Watt's re signation will possibly be found in dis agreement concerning the recovery oi Australia's share of the German indemnities, it is understood that Hho Commonwealth wanted to " liquidate Australia's indebtedness to tlie Imperial Government, by hypotaecating the Austra lian share of the German indemnity. The Imperial Government pointed oul that Germany's payments would probably be indefinitely remote, and .insisted that Australia should shoulder hei responsibilities irrespective of Germany, The informant tuggested that Mr. Watl assented to this arrangement, but 'his colleagues dissented. x It is rumoured that there is a posst . bility of Mr. Watt abandoning politics for business. City circles greatly regret -Mr. Watt's resignation. Bankers, financiers, and business men havo been greatly impressed by him, both on this and on his previous visit, and consider that it will be a serious loss to Australia . if a man of such outstanding ability retires from politics. There is general disappointment that Mr. Watt 'resigned before he had an opportunity of expressing his views regarding Aus. tralia's finances, as he intended,—Aub.N.Z. Cable Assn. DISPUTE OVER WOOL PROFITS? London, June 9. It is understood that tfio dispute arose over wool Mr. Hughes desiring Mr. Watt to secure, modifications in tho agreement reached by Mr. Watt with tfie Imperial Government—Aus.-N.Z. Cable Assn. ■- I . FINANCIAL NEGOTIATIONS REOPENING OBJECTED TO BY TREASURER. (R-ec. June 10, 7.35, p.m.) London, June 9. ■ Xnothev well-informed Anglo-Austra-lian authority, while 'not prepared to discredit the opinion that disagreement arose concerning the indemnity, stated emphatically that the immediate cause of the disagreement between.Mr. Watt and Mr. Hughes related to the wool profits. Mr. Watt brought to England a, .complete scheme* sanctioned by tie Commonwealth Cabinet for the collection and) allocation of the wool profits. In connection with the Commonwealth's financial obligations in London Mr. Watt carried through successful negotiations with the Imperial Government and informed Mr. Hughes, who thereupon proposed modifications. Mr. Watt refused to reopen negotiations. Mr. , Hughes replied that' Cabinet insisted. Mr. Watt then cabled that, having apparegly forfeited the confidence of his colleagues, he felt compelled to resign,— Aus.-N.Z. Cable Assn* GENERAL ELECTION PROBABLE ME. WATT REFUSED A FREE HAND. (Rec. June 10,. 10.35 p.m.) Melbourne, June 10. In view of Mr. Watfs resignation,' the opinion is current in political circles that a general election will bo he.'d ehortly. It is -now announced that the resignation was due to a difference with Mr. Hughes as to the extent of his executlvo powers, Mr. Watt claiming a free hand, which Cabinet was not prepared to concede.—Press Agini