BRITISH CRISIS

Hokitika Guardian, 28 August 1931, Page 5

BRITISH CRISIS

MINISTERIAL STATEMENT

. (United Press Association—By Electric V* I'elegr* ph—Copyright).

LONDON, August 26,

The Secretary for War in tile new Government is Lord Crewe (Liberal).

It is assumed that the law. officers in the late Government, Sir William oowiLC, Atiorney General, and Sii Stafford Cripps, Solicitor-General, will continue to serve.

K - The Minister of the new. Government held the hirst meeting at 10, Downing Street. The Prime Minister presided. The meeting lasted about y an hour, and at the conclusion, L'abijj’ 2 ' net held its first meeting and at once \ got to close quarters with the pro- ■ blems, Several very small committees were appointed to ueal with various aspects of the proposals for effecting economies, and for raising new revenue. which are to be laid before an , emergency meeting of Parliament next month. It is unlikely that further details of the Government scheme for balancing the Budget will be revealed until Parliament meets, but it is known the proposal for a reduction by 10 per cent, in unemployment insurance benefit, apart from allowances for children, will figure ‘in the pro-

gramme, and that a conversion ' loan

that will effect a Big saving on charges \ js contemplated when circumstances are favourable,

■k. Meanwhile, the transference of responsibility to the new Government is beiing effected with the minimum interference, There will be continuity of policy on all major questions. With regard to India in particular, tWI position is unchanged.

Public appreciation of • the ;part played by the King in the crisis was shown by the great crowd at the railway station and the warmth of the cheers as the train departed for Scotland.

Having had a very strenuous few days, the Prime Minister is hoping to be able to leave London to-morrow for Lossiemouth.

Mr Malcolm MacDonald, member of the House of Commons, has decided to i support his father. \ v 'Meetings of the three political parrS A. /ties are fixed for Friday. It is anti- / cipated that the action of their leaders in joining me National /Government will be unanimously endorsed by the Conservative and Liberal parties.

THE BANKERS’ REACTION. LONDON, August .26. A notable feature of the i financial markets, to-day, attributed to the formation of the new Government and , Mr MacDonald’s, was the t strength of the pound sterling, which particularly in relation to the dollar and franc, here as well as in (Belgium, 'Holl&ndj Italy and SwiteerThe simultaneous movement is ' regarded as striking icvidefice of the return of eanfldeiise abroad lit Britain's financial position, Mr MacDonald received the follow-, ing telegram from Dr Bruening: "Kindly accept sincerest wishes for . full success of the high and important task which you are assuming in the inh- ueicsts ot your great country.” Mr (MacDonald sent his thanks.

EIGHTY MILLION LOAN. & 4 "‘ ... LOAD ON, August 27. The “Financial News’’ mentions a rumour that Britain is negotiating a long term loan of approximately eighty millions in the United States at four and a half per cent. NEW CABINET AT WORK. LONDON, August 27. The signs of the political crisis are diminishing. The new Cabinet have settled down to their task. Little is likely to! be heard from them until the meeting of Parliament next month.

LABOUR’S RESOLUTION. LONDON*. August:26. The .General:,-.Council of the Trades ' Union Congress and the National Executive of the Labour Party, held a joint meeting, at which four ex-M»nis-ters, Messrs Henderson, Clynes, Lansbury and Morrison were present, and \ \ spoke. It was announced that the % following resolution was passed : / { § ~ r ‘The joint meeting having consideri'/' vd the position created by the formation of the new Government is” unanimously of the opinion' that it should be vigorously opposed- in Parliament, and by the movement throughout the country. It approves the action taken by Ministers in the late Government , in declining to render support to the new administration, and recommends >- the Parliamentary Labour Party to constitute itself the official Parliapji mentary Opposition.”

A “TIMES” ATTACK. I LONDON, August 27. The “Times,”, -in a pleading article says: “The Labour Movement shows itself to be out of touch with reality. '•(lts recoil from the National Government was partly and spasmodically instructive, due to cultivated fear of capitalism and partly to a party manoeuvre to prevent a great cleavage. The politicians associated therewith, - decided that A cleavage in the State srAv was preferable to a cleavage in the .. party. Mr MacDonald has exploded the ‘vyi myth that international finances was villain of the plot. His letter to the Labour members discloses how nearly a disaster threatened a large part of jr.i world. The necessary sacrifices j ■*' ,1 demanded far eless than inflation. The f*' people, arid not the Labour Executive, V fh® final court of appeal.”