“Almost Unfriendly Act”— FRENCH CRITICISM OF ACTION BY BRITAIN: FRANC DEVALUED

Greymouth Evening Star, 20 September 1949, Page 5

“Almost Unfriendly Act”— FRENCH CRITICISM OF ACTION BY BRITAIN: FRANC DEVALUED

PARIS, September 19 (Rec. 2.50 p.m.).—M. Paul Reynaud, former French Finance Minister and war-time Premier, today assailed Britain’s devaluation as almost an unfriendly act towards France. M. Reynaud, who is now chairman of the European Consultative Assembly’s Economic Committee, bitterly criticised the British Government for devaluing its currency without consulting its partners in the European Council.

“I consider that this attitude of our British friends is not only hardly friendly, . but also shows lack of solidarity,” he said. . The franc was devalued tonight from 330 to the dollar to 350. The rate for sterling- was fixed at 980 francs, compared with 1097. According to a Pretoria message, General Smuts said today that South Africa’s decision to revalue her pound might produce inflation if profits and' wages were not kept m check. He approved the decision of the Malan Government to devalue, but said all the good would be undone if the high nominal pric’es for South African exports were allowed to cause inflation. 7 A Salisbury (Southern Rhodesia) message says that the Department of Trade and Industrial Development has issued a standstill order on all licences for imports from the hard currency areas. This will remain in force until the implications of the devaluation of the pound can be examined. ' Sweden tonight devalued the crown, fixing the new exchange rate at 5.18 crowns to the dollar. The old rate was 3.60 crowns .to the dollar. Before devaluation the Swedish crown was the only currency that stood higher in its relation to the dollar than it did before the war. The Bank of Finland announced that the Finnish mark has been revalued to 70.5 per cent, of its former value in relation to the dollar. The rate' of .the pound sterling would remain the same.

The Ceylon rupee has been de-

valued to 4.75 rupees to the dollar. The Pakistan Cabinet is considering the effects of devaluation on the country’s economy. A Government spokesman said the British decision had faced Pakistan with a ticklish issue. \ In’Poland the exchange rates are at present unfixed. Meanwhile British tourists are flocking to the official tourist agency changing travellers’ cheques at the old rate.