FRENCH MINISTRY DESIGNS OFFICE.

Auckland Star, Volume LXVIII, Issue 146, 22 June 1937, Page 7

FRENCH MINISTRY DESIGNS OFFICE.

. | FINANCE CRISIS, i

Senate Refuses to Accept

Blum Proposals

PROBABLE SUCCESSORS

Cnited Press Association.—Copyright,

(Received 10.30 a.m.)

PARIS, June 21

The French Oovernment under M. Blum has resigned. M. Lebrun, President, has asked the RadicalSocialists' leader, M. C'hautemps, to form a Ministry. M. C'hautemps has reserved his reply until lie consults his supporters. M. Blum will attempt to reconstruct the Popular l'ront with RadicalSocialists predominant. If he fails, M. Herriot and M. Daladier may be summoned. M. Blum agreed to use all his influence while the negotiations are proceeding to avert a general strike and financial disorder when the markets open. M. Lebrun seeks to give the new Ministry a tilt towards the Left-Centre, thus making it more independent of the Communists to win the confidence of investors.

The Berlin Press considers that M. Blum's resignation was long overdue. Deadlock With Senate. The Senate met at 11.30 p.m. and considered the Government's demand for special financial powers which the Chamber of Deputies had already conceded but on which a compromise measure had been drafted in order to meet the Senate's objections.

After the Minister of Finance, M. Auriol, and M. Blum had pleaded the Government's viewpoint, the Senate rejected M. Perrier's pro-Government amendment of its own proposal by 160 votes to 112, and then rejected the text of the compromise by 168 votes to 96. The Senate finally voted for its own bill giving the Government only partial powers.

The decision of the Senate was announced at 2.25 a.m. to-day. M. Blum called on the President, 11. Lebrun, who accepted the Cabinet's resignation and immediately embarked upon the formation of a new Ministry.

In the meanwhile the Chamber had resumed its sitting. M. Herriot announced that the Government had no further communication to make, whereupon the Chamber adjourned.

It is believed that M. Sarraut. M. Chautemps, M. Daladier or M. Herriot may become Prime Minister. M. Blum, it is thought, will continue as a Minister of State, M. Daladier as Minister of Defence, and M. Delbos as Foreign Minister.

M. Lebrun announced that he intended to find a Prime Minister by noon. However, elsewhere it is predicted that no solution is likely for two or three da vs.

M. Blum issued a statement saying lie decided to resign when he saw it was impossible to overcome the Senate's opposition. He appeals to members of the Popular Front throughout France to maintain complete calm, saying it is essential that the transference of power should be done calmly and pacifically.

CHAUTEMPS MINISTRY?

CABINET REPORTED COMPLETE

(Received 2 p.m.)

LONDON, June 21

The British United Press says it is understood that M. Chautemps has completed a Cabinet and will see M. Lebrun later in the day.