DISSATISFACTION IN FRANCE ABOUT CHANGE IN STERLING

Greymouth Evening Star, 22 September 1949, Page 6

DISSATISFACTION IN FRANCE ABOUT CHANGE IN STERLING

PARIS, Sept. 20.—The French Minister of Finance (M. Manrice Petsche) said tonight that- the revaluation of the French 'franc had been decided on to meet British export competition in foreign markets. There had been no valid reason for changing the free market rate'of 330 francs to the dollar, other than that the maintenance of that rate would have handicapped France in her dealings with the sterling area and in countries where she competed with sterling area goods, added M. Petsche. French newspapers today criticised Britain for not consulting France about the devaluation of sterling. The Right Wing "newspaper L’Epdque said: “Sterling had to be adjusted, but may we be forgiven for not . having supposed, at a time when European co-operation was being lauded daily, that the devaluation of the £ would come from a premeditated decision on which European . nations would just have to align themselves as quickly as possible?” The moderate newspaper, Parisien Libre, commented: “The . consequences of the devaluation of the franc raise serious political problems, as it is said that the French monetary transaction is a first step so that France may play her part in European economic restoration. Participation implies wage and price freezing, but in present circumstances neither the trade unions nor the Socialist Party nor the Popular Republican Party would accept wage freezing.” The Leftist newspaper* Franc Tireur, urged the Government to take the necessary decisions immediately so that the workers would not be sacrificed again in international speculation. '