NEW CABINET

Otago Daily Times, Issue 23225, 24 June 1937, Page 11

NEW CABINET

THE CRISIS IN FRANCE M. CHAUTEMPS AS PREMIER SUPPORT OF SOCIALIST PARTY (United Pres? Association) (By Electric Telegraph -Copyright) PARIS, June 22. M. Chautemps has formed a Cabinet, including M. Blum, M. Sarraut, M. Delbos, M. Daladier, M. Bonnet, and other members of the previous Ministry.

Trades unionists have not expressed hostility towards M. Chautemps.

Before forming his Cabinet, M. Chautemps was assured of the support of the Socialists, the largest party in the Chamber of Deputies. M. Chautemps’s Cabinet was pre* sented to President Lebrun, and then held its first meeting.

M. Chautemps, in an interview with the correspondent of the Daily Telegraph, said: “I have formed a Ministry of Republican unity to establish financial reconstruction with the help of M. Bonnet, now Ambassador at Washington, who is returning on Tuesday, when the Government will meet the Chamber.”

The Cabinet consists of 13 Radicals, 12 Socialists, 3 members of the Socialist Union and 2 Independent Lefts. »

M. Chautemps is expected to adhere to the main lines of M. Blum s policy, with less extreme plenary powers of law for dealing with the finances and the exchange.

M. BLUM’S RESIGNATION

HISTORY OF THE CRISIS THE SENATE’S OPPOSITION The latest crisis in French politics arose last week when it was reported that the Government had decided to stake its life on a Bill demanding full powers to deal with the financial situation. The Prime Minister, M. Leon Blum, put the issue simply: “Either you vote for me or for the banks.” M. Blum’s financial proposals included a tax on dividends above 6 per cent. Limited companies were to be obliged gradually to invest their legal reserves in Government securities. The legal reserve was to be fixed at 10 per cent, of the reserve capital. The incidence of income tax would be changed and steps taken to speed up payments of direct taxes.

With the support of the Communists, who earlier had decided to abstain from voting, the Government Bill was accepted by the Chamber of Deputies by 346 votes to 247, and the battle was transferred to the C pn n+p LIMITING TOWERS The Finance Committee of the Senate adopted a Bill limiting the Government’s plenary powers to deal with the financial crisis and refusing to allow the Government to control exchanges and the free circulation of gold in France or the transfer of capital securities to foreign countries. The Senate’s Bill also forbade forced loans and conversions and modification of relations between the State and the Bank of France, and required the Government to submit Orders-in-Council to Parliament for ratification. Features of M. Blum’s Cabinet were its size, its inclusion of three women, and its unusual portfolios. It was the biggest French Cabinet to date when firmed. There were 35 Ministers, of whom 20 were Socialists, 11 Radical-Socialists, one dissident Communist, and the three women, who were not members of Parliament. M. BLUM’S CABINET The principal members of the Cabinet and their offices were:— Prime Minister (without portfolio).- -M. Blum. Ministers of State.—MM. Chautemps, Violette and Paul Faure. Deputy Prime Minister and Minister of Defence.—M. Daladier.

Foreign Affairs.—M. Yvon Delbos. Air.—M. Pierre Cot. Finance.—M. Auriol. Marine. —M. Duparc. Justice.—M. Rucart. Interior.—M. Salengro. Colonies. —M. Moulet.

The state of the parties in the Chamber of Deputies is as follows: Right, 122, Centre, 116. Left; Radicals, 116; Socialist Union, 36; Socialists, 146; Dissident Communists, 10; Communists. 72. The parties of the Left—Radicals, Socialists and Communists—are associated in the Popular Front and muster 330 of the 618 seats in the Chamber.