FRENCH CABINET SPLIT ON WAGES AND MAY GO OUT

Grey River Argus, 29 September 1949, Page 5

FRENCH CABINET SPLIT ON WAGES AND MAY GO OUT

(N.Z.P.A.—REUTER CABLE) (Rec. 9.55). PARIS, September 28. France’s year-old coalition Cabinet is facing its gravest crises as the result of organised labour being in revolt against the Government’s policy of freezing wages. M. Auriol, President of the Republic, returned to Paris overnight from his country residence to preside at a Cabinet meeting 'O-day. This followed late night talks by the Ministers in an attempt to break a deadlock between the Ministers supporting higher wages and those favouring “resistance to inflationary pressure”. Failing an agreement, it was believed that the Government might resign. The radical Premier, M. Queuille, backed by the Right Wing Finance Minister, M. Petsche, is against any immediate wage boost. Both believe that prices can be held in spite of the recent devaluation. They are opposed within the Cabinet by the Socialists and the Popular Republicans, who consider that a limited wage concession is unavoidable, at least to the lowest paid workers. The French Metal Workers’ Union announced yesterday that it would stage a 24-hour warning if the Government did not readjust wages and prices as a result of devaluation. French Regard Devaluation As Monetary War PARIS, Sept. 27 A usually reliable source said that the Finance Minister, M. .Maurice Petsche, told the Cabinet that sterling devaluation was a declaration of a “genuine monetary war” by Britain. The Cabinet discussions also included the problems that would follow devaluation of the deutschmark. French industry would be vitally concerned if the deutschmark were greatly devalued, because German prices would under-cut the French on the world markets. The French Cabinet met for three hours in Paris to-day in an attempt to work out a wage and price policy which will appease restless labour. It was generally agreed that dissension in the Cabinet over the wage issue has endangered Dr Queuille’s year-old Cabinet. However, the Premier won a political victory to-day when the officers of the Lower House voted down by 15 to six a Communist demand that Parliament be convened immediately to debate the recent franc and pound devaluations.