DESAI’S EXIT ALMOST CERTAIN

NEW DELHI, July 18 (PTI, UNI)—The exit of Mr. Morarji Desai from the Union Cabinet became almost certain tonight after the PM, Mrs. Indira Gandhi, declined to accept the advice of her senior party colleagues to restore the Finance Portfolio to the Deputy PM. A one-hour meeting between the PM and Mr. Desai this morning and a brief talk which the Congress President, Mr. Nijalingappa, had with Mrs. Gandhi in the evening failed to bring about the much hoped for compromise aimed at averting a major crisis in the Congress and the Union Government. Mrs. Gandhi’s acceptance of Mr. Desai’s resignation is now considered a mere formality barring a last-minute effort to retrieve the situation proposed to be made by Mr. Kamraj in a meeting with the PM tomorrow. Although it became fairly clear after Mr. Desai’s talks with Mrs. Gandhi that the PM was reluctant to revise her decision, hopes of a settlement were being entertained by Mr. Nijalingappa.

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