FEDERAL BOMBSHELL

Hokitika Guardian, 10 June 1920, Page 3

FEDERAL BOMBSHELL

AUBTJIALIAN iV Jf.Z CABtE ASSOCIATION]

MR HUGHES SURPRISED. (Received this day at 10.85 a.in.) SYDNEY, June 10.

Mr Hughes nterviewed at Wagga, disclaims all knowledge of Mr Watt’s resignation, or reasons for it. T]ie newspaper report fairly astoundpd him, as Mr Watt had even boasted of the extended powers conferred op him. Mr Hughes is awaiting official advice. He added that the news would not affect his country holidays. Several Ministers interviewed expressed surprise and astonishment. They were entirely in the dark.

Some quarters suggest friction between Mr Hughes and Mr Watt. Others attribute the action to the recent Federal salaries grab, over which there is much heart-burning throughout

Victoria. Mr Watt’s decision accentuates the Government’s difficulty occassioned by" the voiding of tho Ballarat election,

MR WATT’S RESIGNATION. {Received this day at 12.25 D.rn) ). LONDON, June 1). It is rumoured that there is a possiblity of Mr Watt abandoning politics for business. City circles greatly regret Mr Watt’s resignations. Bankers, financiers and business men have been greatly impressed with him, both on this and a previous visit. They consider it will be a serious loss to Aus--1 tralia if a man of such outstanding abilities retires from politics. General disap. pointment is expressed that Mr Watt resigned before he had an opportunity of expressing his views regarding Australia’s finances,, as lie intended to do. The Australian press learns that a high Anglo-Australian authority suggests the reason, for the resignation may possibly be found in a disagreement concerning the recovery of Australia’s share of the German indemnity. It is under, stood the Commonwealth wanted to liquidate Australia’s indebtedness to the Imperial Government by hypothecating Australia’s indemnity. The Imperial Government pointed out that Germany’s payments would probably be indefinitely, remote and insisted that Australia should shoulder her responsibilty irrespective of Germany. .The informant suggested that Mr Watt assented to_ this” arrangement, but Iris colleagues dissented! Later, it is understood, 4 ’ dispute arose over tile wool profits, Mr Hughes desiring Mr Watt to secure a modifications in the agreement reached by Mr Watt wifh the Imperial au- ■ thorities.