Shake-Up

Prime Minister Harold Macmillan has a reputation for being unflappable. But ambitious young Tory backbenchers have long complained that he is not ruthless enough in cutting away political liabilities and making room on his Cabinet team for new faces. Harold Macmillan last week again proved that he can be both flappable and ruthless. In a move that shook Britain, he summarily fired seven members of his 21-man Cabinet and reshuffled twice as many portfolios. Inevitably, the press called him "Mac the Knife."

Macmillan's action was triggered by last week's by-election at North-East Leicester, where the Conservative candidate ran a poor third with 6,578 votes, beaten not only by the victorious Laborite (11,274) but also by the upstart Liberal (9,326), who was making his party's first bid for the seat in twelve years. For several months, Macmillan has been going down to his ministerial estate at Chequers to brood in solitude over the long succession of by-elections in which Conservatives suffered severe setbacks. Day after the North-East Leicester election, Macmillan spent eight hours in his office at Admiralty House conferring with his ministers. Those being fired were in and out quickly; those being promoted stayed a bit longer.

Delphic Utterance. The most important head to roll was that of Selwyn Lloyd, who as Chancellor of the Exchequer has administered the government's vastly unpopular, anti-inflationary "pay pause," designed to hold down wages and prices. When he was bluntly informed of his dismissal after five years as a loyal Macmillan ally, Lloyd acidly wrote the Prime Minister: "I realize the policies with which I've been associated have been unpopular. On the other hand, I believe they have been right ... I know you are well aware that the growth of public expenditure should not outstrip our resources."

Macmillan answered: "You can rest assured that we intend to continue on the path that you have prepared," a Delphic utterance that seemed to leave open the possibility of a change of direction. In Lloyd's place, Macmillan named Reginald Maudling, 45, who as head of the Colonial Office has been the latest servant to preside over the projected liquidation of the Queen's empire (Kenya. Uganda, the West Indies). He has great ability, but usually fails to work hard in fields that do not interest him; economics interests him very much. The big question: whether, through Maudling, Macmillan intends to scrap Selwyn Lloyd's line and move toward inflation ("reflation." as it is currently known in Britain); or whether, in the midst of the crucial negotiations for Britain's entry into the Common Market, he will try to keep to his anti-inflationary policies, merely putting a more amiable and popular man in charge.

The Little List. Among the other axed Cabinet members:

>Defense Minister Harold Watkinson, who has been accused of fatally weakening Britain's armed forces (conscription ended during his tenure of office). His successor: Peter Thorneycroft, 52, former Chancellor of the Exchequer and Minister of Aviation, an urbane, acerbic politician who likes to be called a "Tory" because the word is "short, sharp and abusive." -- Lord Chancellor Viscount Kilmuir, 62, who for seven years presided over the judiciary. Successor: Sir Reginald Manningham-Buller, Attorney-General, widely nicknamed "Reggie Bullying-Manner." -- Sir David Eccles. 57, Education Minister, a publicity-conscious politician who tried to cope with Britain's teacher shortage. Successor: Sir Edward Boyle, 38, who at 27 was Britain's youngest M.P. and is touted as a political comer. > Dr. Charles Hill, 58. Minister of Housing. Successor: Sir Keith Joseph, a member of Lloyd's and Minister of State at the Board of Trade. He is one of the few Tory Jews in Parliament.

Stand or Fall. Chief gainer in the Cabinet shuffle is dependable, tough-minded Richard Austen Butler, 59, promoted from the Home Ministry to the newly created post of First Secretary of State, becoming, in effect, heir apparent to Macmillan. But the fact that Macmillan has named "Rab" Butler to the No. 2 Cabinet post does not mean necessarily that he will ever obtain No. 1 Since he is now even more closely tied to the Prime Minister and his policies. Butler's political fortunes largely depend on Macmillan's remaining more or less successfully in office. The vacant Home Ministry went to Henry Brooke, the abstemious former Paymaster General who once called himself the "most hated man in England" after pushing through a bill raising rents for 800,000 citizens.

Four important Cabinet ministers remained firmly in place. Edward Heath is still Lord Privy Seal in charge of Common Market negotiations; the Colonial Office has been put under the able administration of Duncan Sandys, who already heads Commonwealth Relations; and Lord Home continues as the Foreign Secretary. One surprise to outsiders was the survival of Iain Macleod as party chairman because he is widely blamed for the Tories' repeated defeats. Macmillan feels that this criticism is unfair, that Macleod deserves more time to show what he can do.

After this radical operation, Harold Macmillan more than ever will have to stand or fall by the success of his administration. The new Cabinet certainly improves the government's "image," but many critics feel that the new faces are mostly familiar Establishment types, and that, for instance, any practical business talent is lacking among them. The Conservative Daily Telegraph optimistically announced: "The government has a fresher and stronger look." Opposition leaders were derisive. Labor's Hugh Gaitskell called the Cabinet shake-up "a political massacre which can only be interpreted as a gigantic admission of failure." Joseph Grimond, chief of the renascent Liberals, declared: "After twelve years in office, it is too late for the Tories to try and put a new face on their administration."

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