FRENCH CABINET FALLS AS RESULT OF STERLING DEVALUATION AND WAGE DEMANDS TO MEET PRICE RISES

Grey River Argus, 7 October 1949, Page 5

FRENCH CABINET FALLS AS RESULT OF STERLING DEVALUATION AND WAGE DEMANDS TO MEET PRICE RISES

(Received. 11.5*0 p.m.) LONDON, October 6 Though not at first accepted, the resignation of the French Government has been tendered and will take effect.

PARIS, October 5.

The French Premier, Dr. Queuille, tendered his resignation to-day but it has not yet been accepted. He told President Auriol that the Cabinet has failed to agree on a wages and prices policy. An official communique said that as a result of persistent disagreement within the Government on salaries and prices, Dr. Queuille has decided to abandon his attempts to settle the problem of raising abnormally low salaries.

President Auriol, who has been holidaying in the country, returned to Paris and received Dr. Queuille’s resignation.

Dr. Queuille’s Coalition Government, which took office nearly 13 months ago, has had the longest reign of any of the eight post-war French Governments. When i,t was established, observers predicted that it would last only a few days. , It was later announced that Dr. Queuille this afternoon offered his resignation to the President but M. Auriol prevailed upon him to wait until noon tomorrow before making his resignation definite. President Auriol hopes to off Dr. Queuille until Parliament meets on Saturday. It has been called 10 days earlier than expected. Dr. Queuille said President Auriol at first refused to accept his resignation, but Dr. Queuille told the President he could not do otherwise because of the disagreements inside the Cabinet. , .

The Cabinet split found three Ministers out of the country. The Foreign Minister, M. Schuman, and the Defence Minister, M. Ramadier, are in the United States and the Minister of the Interior, M. Moch, is in Rome.

If Dr. Queuille’s resignation is accepted tomorrow, Government business will be carried on by a '‘caretaker” Government. (Rec. 9.0). PARIS, October 6. The radical former Minister of Finance, M. Rene Mayer, was to-day mentioned as a possible successor to Dr Queuille by the conservative newspaper, Figaro. The Figaro said: Dr Queuille’s resignation was the result of Trade Union pressure. “The Government had to bow to irresponsible bodies”. Meanwhile strike demonstrations supporting claims for wage increases Sterling Policy Held Responsible For Fall Of French Cabinet A BY BRITISH TORY PRESS (Rec. 10.50) i LONDON’, Oct. 6 Most sections of the British press have expressed regret at the resignation of the French Prime Minister, Dr Henri Queuille. Some say that Britain has partly been to blame for Dr Queuille’s fall, because of the manner in which she has devalued sterling. The Times says: The French Government is virtually, out of office, and a long crisis, which began a fortnight ago, and which was precipitated by, but not caused by, the devaluation which started in London, is now moving towards a climax. Dr Queuille’s resignation, after over a year of patient service to the French republic will be widely regretted.” The "Yorkshire Post” says: “The French Government has fallen as the victim of the inept and the unneighbourly way in which the British Government chose to devalue the pound.” The “Daily Mail” says: The resignation of Dr Queuille was largely due to the devaluation of sterling, about which France was not consulted. Dr Queuille has been gravely embarrassed by the consequent rise in prices. The “Daily Telegraph” says: “There can be no doubt that the French Government is the first international casualty that has been caused by the devaluation of the pound, or, rather, by the manner that that operation was effected.” currencFquestions U.S.A. Against Lifting Gold Value WASHINGTON, Oct. 4. The Secretary of the Treasury, Mr John Snyder, tonight re-emphasised his stand against raising the price of gold. "We in the Treasury have no intention of raising the gold price,” he told pressmen. Asked if he was going to proclaim the United States back on a domestic gold standard, Mr Snyder replied: “I have given that no consideration at all.” He added he had no information about a London report that big international capitalist groups were now buying gold at prices up to 42 dollars per ounce in the belief that the dollar would eventually be devalued against, gold. (Rec 9.15) WASHINGTON, Oct. 6. A statement issued after Mr John Snyder’s, said the United States had an, obligation to the International Monetary Fund not to buy gold for more or sell gold for less than 35 dollars an ounce, as long as the pai value of the dollar declared ’o the fund, remained unchanged. Even without the legal obligation to tho International Monetary Fund., there were important consider*!! ions of policy which ,in effect, circumscribed the discretion of the Secretary of lhe Treasury to change the price of gold.

The policy of the United States on gold had been directed' primarily to maintaining a stable relation between gold and the dollar, since 1934. The United States had firmly adhered to the requirements of an International gold bullion standard. She had done

so by buying and selling gold freely at the fixed price of 35 dollars on ounce in transactions with foreign Governments, and central for all legitimate monetary purposes. '

BRITISH TRADES UNION LEADERS DISCUSS DEVALUATION

LONDON, Oct 5.

British Trades Union leaders today held their third conference since sterling was devalued. They again postponed their decision on their attitude to the new economic situation. No formal statement of policy on behalf of the 8,000,000-strong Trade Union Congress is expected before the end of the month. France. The Making of Currency Decisions CANBERRA, October 6. Asked by Mr J. T. Lang (Independent) in the House of Representatives yesterday afternoon, whether the decision by the British Government to devalue sterling had been withheld from the Australian Government for one month, the Prime Minister (Mr Chifley) said: “I have no knowledge of when the decision was made. I should imagine that the question of devaluation was not given to a wide circle of the Brtiish Cabinet as a leakage would have enabled speculators to make thousands of pounds. "So far as I know, the New Zealand decision on currency was made by two men. “I cannot imagine any Government particularly one in the position of the British Government, which could have been in a serious financial plight, allowing such a decision to be spread over a wide field.”