A BOMBSHELL

New Zealand Times, Volume XLVI, Issue 10613, 11 June 1920, Page 5

A BOMBSHELL

FEDERAL, CABiHET SPLIT RESIGNATION OF MR W..A. WATTVARIOUS CONJECTURES. By Telegraph—Press Assn.—Copyright Australian and N.Z. Cable Association. LONDON, June 9. . The Australian Press learns that a high Anglo-Australian authority suggests that the reason for Mr Watt’s resignation will possibly be found in disagreement concerning the recovery ot Australia’s share of the Gorman indemnities. It is understood'N that the,. Commonwealth wanned ’’ to liquidate Australia’s indebtedness to the Imperial, Government" by hypothecating the Australian share- of , the german indemnity. ’ 'The’lmperial Government pointed out that Germany’s payments would probably be indefinitely remote, and insisted that Australia should shoulder her responsibilities irrespective of Germany. The informant suggested that Mr Wat: ■ assented to this agreement, but hii colleagues dissented. It is rumoured that there is a possibility of Mr ‘Watt' abandoning politics for business. City circles greatly regret Air Watt’s resignation. Bankers, financiers, and business men have been greatly impressed by him, both on this and on his pro vious visit, and consider that it wifi be a serious loss to Australia if a man of such outstanding ability retires from politics. There is general disappointment that Air Watt resigned beloro he had an opportunity of expressing Tus views regarding Australia’s finances, as he intended. THE WOOL VERSION. (Received June 10, 7.35 p.m.) LONDON, June 9. Another well-informed Anglo-Austra» lian authority,' while not prepared to discredit "a disagreement concerning the indemnity, stated emphatically that the immediate , cause of the ~ disagrecjnent, between. Sir Watt aud Slr Hughes related to wool profits. Air Watt brought to England a complete scheme sanctioned by the Commonwealth Cabinet for the collection, and allocation of wool profits. In. connection noth the Commonwealth's financial obligations in London Sir Watt carried through successful negotiations with the Imperial Government and informed Air Hughes, who thereupon proposed modifications. Mr Watt refused to re-opea negotiations. Sir Hughes replied that Cabinet insisted. Sir Watt then cabled that, having apparently forfeited the confidence of his colleagues, he felt compelled fo resign. FEDERAL AHNISTERS ASTONISHED. 'MR HUGHES AWAITS OFFICIAL ADVICE. By Telegraph—Press Assn. —Copyright SYDNEY,, June 10. Mb W. , SI. Hughes, interviewed at W-agga, disclaims ail knowledge of Air -Watt’s resignation or the reasons fur it. The newspaper report fairly flabbergasted him. as, Sir, Watt had even boasted of the extended powers conferred ■ on, him. Sir Hughes is awaiting official advice. He added tbattl tho hews would hot affect his country hoit.day. •••... > Several Slinisteps who were interviewed expressed surprise and astonishment at tho report, and are entirely in the dark. In some quarters it is suggested 'thalc there is friction between Sir'Hughes and Sir Watt. Others attribute the action. to the recent Federal salaries grab, over which xhcro is much heart-burning throughout VicM* Watt’s decision accentuates tho Government’s difficulty occasioned by tho voiding of, the Ballarat election. GENERAL ELECTION PREDICTED. - 7 DISPUTE' OVER EXECUTIVE POWERS. (Received Juno 10, 10.25 p.m.) . .- A - .- AIELBOURNE, June 10.

In view .of Mr Watt’s resignation the opinion l is .current in political circles that a general election will be held shortly. It'is'now announced that the resignation was due to a difference with Mr Hughes as to the extent of executive powers, Mr Watt claiming a free hand, which Cabinet was not prepared to concede.