Giscard forces rally to close ranks against Mitterrand

Press, 14 May 1981, Page 6

Giscard forces rally to close ranks against Mitterrand

NZPA-Reuter Paris Leaders of France’s Centre- Right parliamentary majority have moved to head off disarray in their ranks before the socialist Presi-dent-elect. Francois Mitterrand. holds elections . next month.

Mr Mitterrand has promised to call elections by July 1 in the hope of winning a Left-wing majority to ease the passage of his* socialist programme through Parliament.

His clear victory over President Valery Giscard d’Estaing on. Sunday appeared certain to lead to fierce infighting among the Centre-Right parties which form the ruling coalition.

Since his defeat. Mr Giscard has made scathing attacks on the neo-Gaullist R.P.R. Party leader. Jacques Chirac, who stood against him in last month's firstround poll.

The President's camp said tha Mr Chirac, who once served Mr Giscard as. Prime Minister, caused the defeat by breaking ranks and then only half-heartedly supporting the President in the final run-off on Sunday.

Mr Mitterrand's election and the prospect of the socialist programme taking force sent panic through the Paris stock and money markets yesterday for the second day running. The franc plummeted to a

10-year low on Monday and staved down vesterdav.

Stock prices continued a dramatic decline on the Bourse, trading starting 45 minutes late because of the disorder and at the end of the day only 104 French stocks but of 200 had been quoted.

The bitter rivalry, which has surfaced between Mr Giscard and his former ally, Mr Chirac, could spoil the Centre-Right candidates’ electoral chances and clinch victory for the Left. But majority parliamentary leaders for the R.P.R. and the Giscardian U.D.F. Party called their members together in separate meetings yesterday to order unity in the election battle.

Roger Chinaud. president of the U.D.F.. said later: "What has happened is history. The important point now is to return the present majority in the election and not let personal rivalries wreck our chances.” Mr Mitterrand will need a solid majority in the 491-seat Parliament to pass his socialist programme, which calls for nationalising 11 industrial giants, State control of all banks and reducing the working week from 40 to 35 hours.

Socialist sources said the two-round election would probably be called for June 21 and 28. Mr Mitterrand is due to take office between May 24 and 26.