FRENCH CABINET DEFEATED.

Press, Volume LXVIII, Issue 20730, 15 December 1932, Page 9

FRENCH CABINET DEFEATED.

-—* WAR DEBTS ISSUE. jfffi PAYMENT PROPOSAL i REJECTED. RIOTOUS SCENES IN PARIS . ■ ♦ STREETS. rr.ISS ASSOCIATION—UV EIXCTJHO • {CB Teß jeueosapk—corvsiGHT.) (B«eived December 11th, 8.30 p.m.) PARIS, December 14. After a lively debate in the Jz: b chamber of Deputies on the debts question and on the deAtan of M. Herriot to pay Trance's instalment to the United fitstcs with the addition of rethe Premier's proposal ro defeated by 402 votes to 187. jj[B Government lias resigned. The Chamber of Deputies was still *t four o'clock in the morning, *v, o JJ, Herriot rose to make his Ijjl appeal to the Deputies to accept tie Government's decision to pay the Tsiiid States, with reservations. One of the most telling speeches durdebate was that of a Conservative Deputy, who emphasised tho point jjat a creditor who, by his own action, pjereated a debtor from fulfilling his jg—geraent thereby lost his right to tact execution of that engagement, ttii allusion to President Hoover's 'm in declaring the moratorium, deprived Trance of her credit on CfcfJßsay and thereby of the means to My her own debts, was greeted with a OTS tioo by three-quarters of the Deputies. M. Chauvin, defending the Governasßt, asked what the British people W&d to-morrow w lien they were that France was paying neither die United States nor Great Britain. Wu it certain that England would denothing fromk France? - $L Herriot declared that if France di 4 sot pay the United States Great Britain could not long continue to pay without asking France to pay her.

"America's Double Policy." The Deputies loudly applauded allegation! of America's double policy, which •was stated to consist of intervening in Europe when America's interests in Europe required her to do so, and then -.ritltdrawing when she encountered disagreeable responsibility. Many speakers alleged that tha real motive behind the Hoover moratorium was the interests of private American creditors, ■whose money was locked up in Germany. Speaker after speaker argued that debt payments were no longer morally justified since they were no longer covered by Germany. Jf, gprrjot s proposal to pay with reser'fations was defeated by 402 votes . tf Isl. Tke "Government has resigned, i An earlier message from Paris stated tin the defeat of M. Herriot's Government was merely a matter of hours. The ffjMQiCQ Foreign Affairs Commit«s' vute to reject any form of payjaeat in December sealed his fate, and I>eht Commission passed the death 'TECtesee after hearing from M. Herown lips the text of his AmeriXoff. Even his own radicals vM&I vote against him. M. Louis Stria, ,eader of the Eight, opened the r hwiai(lm<nt in the Chamber with a against payment. y Police Quell Eiots. -i'jfWle dramatic scenes were in profijpi:inside the Chamber of Deputies jjng th« war debts debate, equally fipfing events were proceeding out- ■ Mounted and foot police guarded approaches to the Chamber while of Royalists and others jlemon&s close as possible, shouting: jfltt * ee#| for America." I Inert were several clashes between ■4i »lies and the rioters. The latter flnr paving-stones at tram ears, tore T*Uiogs protecting trees in the Snjiirji, and used them as weapons. itpTtaliee charged, a score of people ttjured and hundreds were ar- | jjfflir veterans marched to the Statue sjwpfge Washington and laid a wreath Vrat*9 inscription protesting against payment. | HERRIOT'S HEROIC FIGHT. f|pJ£®S SIGNATURE IN THE J«n! BALANCE. jljtjftiTed December loth, 1.45 a.m.) S& LONDON, December 14. ||||k Chamber rose at 6 a.m. and will when a new Government is Ipipl. M. Herriot and the other Cabhanded th&ir resignaLebrun, who, at 0 a.m., com[Mml consultations for the formation Cabinet. fought heroically, less to ' sH®'® than to endeavour ftfgW* y?»Bea oa the right path and H I Frilling the contract with K ! Ha eloquently claimed B. I Was at stake in the debate Hi signature. *|||,FAYMIWT TO'PAY. ■llll*®* Decembcr 14th > ILIS H LONDON, December 14. ■j jS I Wfrflspofident of the British S jSP |Nss at Paris says that M. Her--15 unouneed that his defeated ■ would not make the debt ■ America to-morrow. »|WIUM TO DEFAULT. PAYMENT UNLIKELY. December 13, has announced that the the December instalwould be £435,000, was capacity to pay, but W>der the Lausanne deprived her of espeptial HBaHjEjajj jjajTmcnt on Thursday was jHHHn |MWB»ge states that PoHB[|[|M||H»* en t is £860,000, is HHRte America. |HH||KF

A COMPLICATED SITUATION. j AMERICAN OPINION. BRITAIN PRAISED FOR HER HONESTY. (Received December 14th, 10.30 p.m.) NEW YORK, December 14. Tho lateness of the news from Paris M. Herriot's decisive defeat "has prevented official comment, although in tho light of tha previous Administration's interpretation, the situation is regarded as being further complicated. The "Now York Herald-Tribune," in a. leading article, praises Great Britain's latest Note. The paper says: "Tiie long debate with Great Britain is over and the payment discussions have ended in a fashion which we are confident will in the long run count heavily for mutual understanding and friendship between the two great Eng-lish-speaking nations. We welcome it and congratulate the spokesmen of both Governments. "The result is that English credit stands in American eyes at the high point,_ :it which it has been Great Britain's tradition and boast. The consequence in this country, in our opinion, is certain. Sentiment will be strong for leniency and generosity towards a debtor so careful of her honour.'"' THE LAUSANNE AGREEMENT. RELATION TO WAR DEBTS. Mil CHAMBERLAIN EXPLAINS. (BKlTian OFFICIAL WIRELESS.) RUGBY, December 13. A statement regarding war debt payments and their relation to the Lausanne agreement was made in the House of Commons by tho Chancellor of the Exchequer (Mr Neville Chamberlain). Ho was asked by Mr Winston Churchill for an assurance that tho Government would in no circumstances consent to preferential discrimination by France and Italy in favour of their war debt payments to the United States, as against their payments of similar debts due to Great Britain, and whether he would demand equality and simultaneity of treatment for Great Britain from these two countries, in order to prevent all payments by all countries to the United States on December 15th being made at tho sole expense of Great Britain. Replying, Mr Chamberlain said the letter " which he addressed to the French Minister for Finance at Lausanne in July, 1932, had stated that the British Government would have been glad, if it had been possible, to cancel the French war debt as part of an allround cancellation, but in the actual circumstances it could not enter into any definite commitments modifying the existing war debt funding agreement. Suspension of Annuities. They agreed, however, that the annuities due under the agreement should be suspended until the coming into, force of the Lausanne agreement, or until it was decided not to ratify that agreement. The British earnestly trusted that an examination of the whole question of war debts in relation to world recovery, to which the United States had agreed, would result in a settlement which would enable the Lausanne agreements to bo ratified. In the meantime, the British Government considered it of the utmost importance that no decision should be taken at present which might make impossible the ratification of the Lausanne agreement. Consequently suspension of reparations and war debts would remain in force, but all tho rights of the British Government under existing agreements would be integrally reserved. Answering a question as to whether France had agreed to pay Great Britain £W 000,000 a year irrespective of payments from Germany, the Chancellor of the Exchequer said that the agreement with France provided that the payments were due to Great Britain, quite irrespective of any payments received from GermHe added: "We are entitled, and we intend if we are so able, to make a separate settlement with the United States." BRITAIN'S POSITION explained. FURTHER NOTE TO UNITED STATES. •.JIWIIfsH OFFICIAL "WIRELBSS.") RUGBY, December 13. Following the Cabinet meeting this morning, a Note was 'addressed , to the United States explaining that it was not the intention of the British Note of Sunday to touch upon any matter affecting the constitutional position of the United States Government. It should therefore be read solely aa rplatine to the British Government's own position, which had been taken after mature consideration —namely, that the Government was prepared to make the payment on Thursday in the light of the considerations set out m Sunday's Note, and must reserve the right to revert to these considerations in the late examination, to which the United States Government had agreed, of the whole question. PRESIDENT HOOVER. IMPEACHMENT MOVE THROWN OUT. WASHINGTON, December 13, The House of Representatives by a vote of 361 to 8 to-day rejected a move by Mr T. L. McFndden (Republican, Pennsylvania) for the impeachment ot President Hoover on the ground lhat he betrayed his country m the war debts moratorium. Mr McFadden said that the I resident had usurped the powers of Concroi in proclaiming the Debts Moratorium He contended that this action had led to the present situation, involving the United States and its fnrpieri debtors. Mr McFadden has long been a foe nf t ha Administration. The Pennsylvania Republicans in the House later demanded his resignation as secretary tbeir delegation.

INSTALMENT DUE TO-DAY. FURTHER NEGOTIATIONS UNLIKELY. RECEPTION OF BRITISH NOTE. (Received December 14th, 7 p.m.) WASHINGTON, December 13. Great Britain's new Note was received to-day. Referring to the communication, Mr 11. L. Stimson (United States Secretary of State) said: "Negotiations with tho British Government are closed so far as the December payment is concerned. I do not anticipate that a reply will be necessary to to-day's Note." Meauwhile, officials have expressed considerable concern at the decision of the Belgian Cabinet to make default and at the precarious position of the Herriot Cabinet, which many feared would not weather to-night's debate in the Chamber, admitting that the fall of the Cabinet would further complicate the situation. lioutino debt Note answers were delivered to tho Belgian Ambassador and to tho Czechoslovakian Minister in the same phraseology. They refused suspension of the current payments. No Quarrel with Britain's Aim. The British Note explained that the British Government, in Sunday's Note, had intended to explain the circumstances whereon it was decided to make payment and had not intended "to touch upon any matter affecting the constitutional position of the United States." The Note asserted that Great Britain "must reserve the right to recur" to those considerations which she had set forth.

There is no quarrel here with this aim. The Administration does not believe that the claim to be made later will prove a complicated one, because so many larger questions will be at issue in revision. Negotiations are now generally regarded as a matter, so far as Great Britain is concerned, for Mr Franklin Roosevelt. It is not believed that negotiations for revision can possibly be started before March 4th. President Hoover is proparing a special Congressional foreign affairs Note and is now awaiting possible defaults to frame the communication. He is ignoring M. Ilerriot's attacks in the Chamber of Doputios, apparently considering that they were uttered more for local consumption 111 France than for foreign ears. It is conceded that the possibility of default by other countries besides Belgium would break "the united front" but not contribute to an easy approach to the problem of revision. Impeachment Resolution. What hitherto had been a sporadic debate on the debt question in Congress took a dramatic turn when Mr T. L. McFadden (Republican), introducing the Hoover impeachment resolution, specifically charged him with "high crimes and misdemeanours," chiefly in connexion with the war debts arrangements. President Hoover was also charged with appointing Mr A. W. Mellon Ambassador to Groat Britain while Jie was under a resolution charging impeachment. Mr McFadden denounced President Hoover's handling of the bonus army, a charge which was probably responsible for six votes for his resolution. Speaking in Albany, Mr Franklin Roosevelt took the occasion of categorically denying a reported interview with the London "Daily Express," saying that he t would urge the waiving of debt interest when he was inaugurated. He denounced the interview as "made out of white cloth," and he said that it was very embarrassing. THE STERLING RATE. NEW YOKK, December IS. Advancing after an early decline, the pound closed 1J cents higher at 3.27f dollars for cable transfer. GERMAN COMMUNISTS. POLICE RAID HEADQUARTERS OF SOCIETY. (U2UTED PRKS:: ASSOCIATION —BY fcHCTBIC .TBI/EGBAPH— COPTBIGHT.) (Received December 14th, 11.45 p.m.) MUNICH, December 14. Following numerous robberies of guns and ammunition 31 Communists in various towns in Southern Bavaria were arrested. The police raided the headquarters of an organisation called the "Bed Fighting Society" and discovered plans for a revolution involving the whole of Germany. RIOTS IN JOHORE. PROTEST AGAINST ALIENS BILL. (Eeceived December 14th, 11.45 p.m.) SINGAPOEE, December 14. A message states that Communists rioted at the village of Kulai_ (Johore) iagainst the Aliens Bill, restricting immigration. The police fired and one man was killed. Attempted demonstrations at (Singapore were prevented.