TENSE SITUATION

Hokitika Guardian, 31 May 1935, Page 6

TENSE SITUATION

FRENCH 'FINANCIAL CRISIS.

SCENES IN THE CHAMBER,

(United Press Association—By Electric Telegraph—Copyright).

(Received this day at 12 noon)

PARIS, May 30

M. Flandin dailntlessly faced tiie Chamber, though one of his first duties \vas to announce the resignation of the Finance Minister, M. Uermaine Mattin. “I have provisionally accepted this, dnd have assumed the ministry myself,’' declared M. Flandin. The debate opened on a move hopeful note, owing to the staunchness of the Radicals wlio refused, by 36 votes to 21, to condemn M. Flandin unheard. M. B'arety, rapporteur of the finance committee, announced France’s edonomio activity was stationary, or was weakening. There was a budgetary deficit of £280,000,000. Thp Treasury had -duly £204,000,000 available for 1935. M. Reynaud, a 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 the speculators, aud declared speculation would never beat the franc as long as Frenchmen did not run away from .their own currency. He added if the Chamber declared approval of devaluation, he would give way, but jf, on the contrary, he was to defend France, h e must have powers to create a psychological shock to enable the recovery of confidence. . ivi. .Flandin spoke for seventy minutes.

The Chamber adjourned to allow the groups to consider the situation. An all-night sitting i s 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, oollapsed, and was taken home. Radical Socialists met and sealed the fate of the Government by deciding to vote against it. though aware that if the Chamber did not grant M. Flandin Cabinet plenary powers, it would have to grant them to his successor.

The only hope is that the hostile vote may not be recorded in the Chamber in the same proportion.

FRENCH GOVERNMENT RESIGNS.

M. FLANDIN’S 80-VOTE DEFEAT.

(Received this day at 1.30 p.ra.) PARIS, May 30. M. Flandin was defeated by about eighty votes. / The Government- has resigned.