FRENCH BUDGET DEFICIT

Greymouth Evening Star, 31 May 1935, Page 7

FRENCH BUDGET DEFICIT

OVER £2BO MILLIONS

FINANCE MINISTER RESIGNS

[BY CABLE —PBESS ASSN. —COPYRIGHT.] (Received May 31, 1 p.m.) . FARIS, May 30. M. Flandin dauntlessly faced the Chamber, though one of his first duties was to announce the resignation of the Finance Minister, M. Germain Martin. “I have provisionally accepted this, and have assumed the Ministry myself.” declared M. Flandin. The debate opened on a more hopeful note, owing to the staunchness of the Radicals, who refused, by 36 votes to 21, to condemn M. Flandin unheard. M. Barety, rapporteur for the Finance Committee, announced that* France’s economic activity was stationary, or was weakening. There was a Budgetary deficit of £280,000,000. The Treasury had only £204,000,000 available for 1935.

M. Reynaud, former Minister of Finance, evoked cheers ,when he urged the formation of a Ministry of all parties, as the sole hope of smashing speculation. Neo-Socialist and. Socialist speakers opposed 'the Government. Cheers echoed through the Chamber, as M. Flandin ascended the Tribune. He castigated speculators, and declared that speculation would never beat the franc, as long as .Frenchmen did not run away from their own currency. He added that if the Chamber declared its approval of devaluation, he would give way, but ,if, on x the contrary, he was to defend the franc, he must have powers to create a psychological shock, to enable the recovery of confidence. M. Flandin spoke for seventy minutes. The Chamber adjourned to allow the groups to consider the situation. An all-night sitting is expected. The dramatic quality of the situation was intensified, when M. Flandin, who appeared in the Chamber with his arm in splints, and a doctor in attendance, collapsed, and was taken home.- • ... Meanwhile, the Radical Socialists met and sealed the fate of the Government, bv deciding to vote against it, though aware that, if the Chamber ( did not grant M. Flandin and his Cabinet plenary powers, it would have to grant them to its successors. The only hope is that a hostile vote may not be recorded in the Chamber, in the same proportion.

• M. HERRIOT’S APPEAL. (Recd. Mav 31, 10.30 a.m.) PARIS, May 30. The Ascension Day holiday, causing the crowds to flock to sporting events, gave the country a respite from the franc crisis. Politicians, however, were in conference all the morning. The Left parties were unable to agree on a Coalition Government, including Socialists and Radicals. Following a vigorous speech by M. Herriot, who urged that unless they gave I M. Flandin full powers, they would be supporting devaluation, the parties decided to defer a decision whether to vote for or. against the Government until they heard M. Flandin’s speech. PREMIER’S ILLNESS (Recd. May 31. ~2 p.m.). PARIS. May 30. The Chamber, guarded by reinforcements of police and the usual scjuad of soldiers,, at 9.35 to-night, when it was announced that M. Flandin, who had been unconscious for twenty minutes, was not returning. He deputed M. Herriot to reply to the critics on his behalf. A mob of several hundreds in the Place De La Concorde, demonstrated against the legislators. The police dispersed them. GOVERNMENT RESIGNS.

(Recd. May 31, 2 p.m. PARIS, May 30. M. Flandin was defeated by about eighty votes. The Government has resigned.