FRENCH CRISIS.

Auckland Star, Volume LXV, Issue 6, 8 January 1934, Page 7

FRENCH CRISIS.

Bayonne Scandal Invades

Politics,

MINISTER ASKED .TO RESIGN.

LOXDON, January 7,

A message from Paris says the Bayonno Municipal • Bank affair is becoming the greatest political and financial scandal since that of the Panama Canal half a century ago. The newspapers are attacking the Government to such an extent that it is believed the Prime Minister, M. Chautemps, has decided to confront M. Dalimier, who was Minister of Justice in the last Cabinet, with the dilemma that either he goes or the Government resigns. The whereabouts of the wanted Russian financier Stavisky, are still a mystery. The Minister of Justice, M. Reynaldi, has returned from a holiday and is taking personal charge of the case, which has become known as the "French Kreuger case." Stavisky's wife has been located in a small furnished flat in Paris, where she is living with her three young children. The police searched her apartments and seized many documents. They found a large quantity of jewels and a sum of £500. The Paris correspondent of the "Daily Telegraph" has confirmed the news "that before the general election Stavisky was one of the most liberal supporters of the funds of the RadicalSocialist party now in office. The Russian called upon M. Chautemps on December 23, and also upon other prominent people, but was told everywhere he could not be received. Apparently he realised his danger and returned to his apartments and went thence to an aerodrome, where the police noticed his departure and reported it to the Ministry of the Interior. The question is now asked why Stavisky was allowed to escape. It is regarded as probable that the affair will have serious political repercussions. A message from Paris states that M. Chautemps has decided to open an administrative inquiry to ascertain whether there was any neglect or misdemeanour in connection with the Bayonne frauds. • "Lβ Matin" states that M. Chautemps has demanded the resignation of M. Dalimier, who, as Minister of Justice in the last Cabinet, recommended the selling of bonds. M. Dalimier has refused to resign, so M. Chautemps now is considering the collective . resignation of the entire Cabinet. It is believed that the President, M. Lebrun, would accept the resignation, and that M. Chautemps then would reconstruct the Ministry without M. Dalimier before the Chamber meets on Tuesday.

The "Sunday Times" says it is estimated that M. Stavisky secured £35,000,000 from investors in his various schemes. One British bank is said to have invested £300,000.