M. CAILLAUX'S TASK.

Auckland Star, Volume LVI, Issue 112, 14 May 1925, Page 7

M. CAILLAUX'S TASK.

THE FINANCES OF FRANCE. TAXATION TO BE HEAVIER. TARTS. May 1.1. The Minister of Finance, M. Caillaux, in an address to the Finance Commission of the Chamber of Deputies, outlined his proposed reforms to cover the Budget deficit of _3R.000.00n. M. Caillaux announced that he proposed to increase taxation by 3.500,000.000 francs in order that the whole of tho permanent expenses under the Budget might l>e covered. He also proposed to establish a national bank of reinsurance to which all the insurance companies would be obliged to bring at least 50 nor cent of their premiums. This would ensure to tho State a proportion j nf the profits upon insurance, which was virtually a monopoly. The taxes would include an increase in tobacco dutiea and a tax on refined petrol. The income tax did not appear capable of being increased, but it would be collected under more stringent conditions. The now taxes could not take effect in 1025. Therefore the Treasury must meet t'ue State's demands this year. There was a total French debt of 130.000.000.000 francs in the form of short term engagements. This was a grave danger. The roroints under the Dawes scheme, amounting to 1 ,-40,000.000, francs, would not benefit the Treasury as they were allocated to the liberated regions. M. Caillaux added that he also proposed to earmark a proportion of the receipts from the Dawes scheme for a reduction of the French debts to Britain and America. — (A. and N.Z. Cable.) HEAVY TAX PROPOSALS. (Received 2 p.m.l PARIS, May 13. ' M. Caillaux informed the Chamber of! Deputies that he proposes to impose 3.500.000,000 francs fresh taxation.— ('<Sun.''l PEACE IN EUROPE. PARIS. May 13. > The French viewpoint of Germany's guarantee pact proposals has been embodied in a preliminary draft Note to Germany. This has been handed to the British and Belgian Governments. A summary published states that the Note is profoundly pacific. It emphasises the willingness of France to cooperate with Germany in attaining supplementary guarantees of peace, provided that the present treaties and conventions are not weakened, and that the rights and interests of the Central Euro- | pcan States are not impaired.—Reuter