CABINET RESIGNS

New Zealand Herald, Volume LXXV, Issue 22984, 11 March 1938, Page 9

CABINET RESIGNS

CRISIS IN FRANCE

NATIONAL DEFENCE LOAN-

SPECIAL POWER REFUSED DECISION OF MINISTRY By Telegraph—Press Association —Copyright (Received March 10, 11.45 p.m.) LONDON, March 10 The Prime Minister of France, M. Cliautemps, has resigned. The Paris correspondent of the Times stated earlier that, after a meeting of the Cabinet lasting for three and a-half hours, M. Cliautemps' Ministry decided to meet the Chamber of Deputies, record its views in a declaration and resign. The reason for the resignation is the refusal of the Socialists and Communists to grant special powerß to ensure the success of the national defence loan.

This is the second time this year that M. Camille Chautemps, the Radical Socialist Prime Minister of France, has resigned. The last occasion was on June 14, and followed the resignation from the Cabinet of the Socialist Ministers.

That crisis followed negotiations for the framing of a new labour code, which it was sought to formulate owing to a wave of labour disputes endangering the prosperity and security of the country. M. Blum attempted without success to form a new Cabinet, and on January 18 M. Chautemps ' returned again as leader. M. Chautemps has been Prime Minister four times —first ia 1930,' when his term of office lasted only 24 hours; secondly, in 1934, when his Government was overthrown by the Stavisky scandal; again in 1937; and once more in January, 1938. PUBLIC UNREST GROWING CRISIS NOT UNDERSTOOD DEPRECIATION OF FRANC PARIS, March 9

The Socialists have refused to grant the Prime Minister. M. Chautflmps, plenary powers over finance, and the resignation of his Cabinet is regarded as certain. r Unrest is growing, but the public cannot understand why the crisis has arisen. The Government had not resigned to-night. M. Chautemps will meet the Chamber of Deputies to-morrow morning, when the possibility of the Cabinet resignation will be discussed. The franc has depreciated further to the record low point of 157J to the pound sterling. A message from London states that the British United Press says that M. Chautemps told the Socialist leader, 3M. Serol, that he intends to resign.