France To End Agreement On Ties With Monaco

Press, Volume CI, Issue 29799, 16 April 1962, Page 10

France To End Agreement On Ties With Monaco

(N.Z.P.A .-Reuter —Copyright)

PARIS, April 15. The French Government has given notice to terminate the agreement which governs relations between France and the municipality of Monaco on Customs, taxes. Post Office services, power supplies, and other matters. The Government spokesman (Mr Louis Terrenoire) told reporters after a Cabinet meeting that the notice to terminate the agreementdrawn up in December, 1951 —would become effective in six months. Observers understood that failing a new agreement being made, France would treat the principality as any other foreign country, imposing Customs duties, passport control, and other measures. France's dispute with

Prince Rainier of Monaco stems from the desire of the French authorities to modify, or do away with, tax exemption privileges which the citizens of Monaco and firms registered in the principality enjoy in comparison with French citizens and French businesses. In a recent newspaper interview. Prince Rainier was reported as saying that he was ready to come to a new arrangement with France, but he added: “We shall never accept the French tax system. The tax-free privilege is directly linked with our independence.” A “pocket crisis” between France and Monaco arose in January when Prince Rainier summarily dismissed his Minister of State “loaned” by France, after a quarrel over financial differences with the French Government French Government sources said the dismissal was considered an “affront.”

Talks between France and Monaco broke down a week ago and were suspended indefinitely.