Finance Minister Warns That France Must Export or Die

Otago Daily Times, Issue 26846, 10 August 1948, Page 5

Finance Minister Warns That France Must Export or Die

New Zealand Press Association—Copyright. Rec. 10 p.m. PARIS, Aug. 9. The Minister of Finance, M. ( Paul Reynaud, told the National Assembly that he would resign if the assembly did not give him the special powers he is seeking. He said that if the assembly refused them “I shall return to my seat as deputy without animosity, but certainly not without anxiety.”

M. Reynaud said France must imitate the English—export or die. France had to develop trade with India, Australia and South Africa, he added. Contrary to what had been said in the debate, he thought there was every chance of doing so, France and Europe had to go over to mass production as that was the

only way to raise the standard of living of the masses. A complete reform of the complicated and laborious French taxation system became urgent and essential. He said there was a Budget deficit of £115,000,000 and a Treasury deficit of the same amount. He added that the Budget and Treasury deficits in 1949 would be between £810,000,000 and £920,000,000 if no action was taken.

The Treasury at present had only £81.000,000 at the Bank of France, but M. Reynaud said he was prepared to take the risk and not ask for an increase in the maximum advance the bank was allowed to make to the Stale provided the powers he sought were granted. “ What we need is courage. Let it not be said that the Assembly lacks courage.” The Moderates and Radicals loudly applauded the speech, but the Socialist benches received it rather coolly. A vote on the Bill is expected this evening.

The Times correspondent in Paris says the first reactions in the National Assembly confirm the impression given during the Cabinet discussions that the Bill is a distasteful necessity alien to the spirit if not to the letter of the Constitution. No one except the Communists seriously argues that the present Assembly with its existing procedure can legislate fast, enough, consistently enough, or efficiently enough to carry out indispensable financial and economic measures. It is certain, therefore, that the majority are prepared to grant the Government the means in some form or other to make up for the Assembly’s deficiency and at the same time lighten its burden. .

Observers say the Assembly’s failure to agree on the Bill would precipitate a new Cabinet crisis’, which might lead to a general election. Already several committees of the National Assembly, including the Military, Labour, and Industrial Production Committees, have attacked the Government’s plans. The committees sought to remove their deDartments from “ rule by decree ” as soon as the session opened.