Some Fear Money Crisis

Press, Volume CIX, Issue 31974, 29 April 1969, Page 15

Some Fear Money Crisis

f.N’.Z PA -Reuter—Copyright)

WASHINGTON, April 28. , World leaders were j today analysing the! political and financial repercussions of General de Gaulle’s resignation, fears centering on whether it would precipitate a new monetary crisis.

Most statesmen withheld immediate comment on the Paris drama which ended at midnight with General de| Gaulle announcing his resig- ; nation. But lights burned late ■ in chancelleries all over the; world as leaders and officials assessed the situation. in Washington. Britain's chancellor of the Exchequer, Mr Roy Jenkins, was having a round of talks with top American officials on international monetary problems with particular stress on the French franc.

Mr Jenkins arrived yesterday for financial talks. American sources said the prospects of renewed political instability creating a new crisis for the franc and threatening other world currencies bad to be taken into account.

But at least some American officials felt the franc was now so well protected by international support arrangements that it could withstand pressures against it Politically, officials said they could only wait and see whether President de Gaulle's successor changed France's veto on Britain's entry into the European Common Market, or its Middle East policy, which has been marked in the last year by friendly overtures to the Arabs and criticism of Israel.

, Administration officials expressed regret and concern | at the resignation which came at a time when Washington and Paris were beginning to come closer after several years of sharp differ-

ences on important world issues.

In London there was a feeling early today that General de Gaulle's resignation will inevitably upset international markets until the policy of his successor was known. But no violent fluctuations in the currency markets were expected immediately. In the long term, observers believe that General de Gaulle's defeat might do Britain's trading position a bit of good. Under almost any other French President, they feel, the e would be more hope for Britain being invited to join the European Common Market.

In Japan, first comments hinged on the financial repercussions of the Paris events. Japanese exchange banks decided to quote dollars as usual

but to give only nominal quotations for other currencies. The anticipation in I Tokyo was that there would! be a decline in the prices of ■ some currencies in overseas [financial centres when they [reopened later today. In Bonn, West German officials were shaken by the ; news that President de Gaulle had been defeated, the Associated Press reported. Mr Guenther Diehl, chief spokesman for the Bonn Government, said he hoped I France's inner stability and foreign policy effectiveness would not be damaged by the vote.

N.Z.P.A.-Reuter said the West German Government expressed its gratitude to General de Gaulle for strengthening French-German friendship.