NEW FRENCH CRISIS

Otago Witness, Issue 3775, 20 July 1926, Page 31

NEW FRENCH CRISIS

GOVERNMENT DEFEATED. M. BRIAND RESIGNS. PARIS, July 17 The Government was defeated by 290 votes to 243 on a motion of confidence, and M. Briand resigned. EARLIER MESSAGES. PARIS, July 16. The fall of the franc has attained an impetus which is increasingly hard to check. This is only explained by the nervousness due to the continued uncertainty regarding the political and financial situation. Parliament and the country are still in the dark as regards the details of M. Caillaux's financial proposals and the Treasury is practically empty. Meanwhile, the Government exists on the sufferance of 22 votes whose renewal depends on the adoption of its concrete programme. Furthermore the satisfaction with the AngloFrench debt agreement is mitigated by doubts whether Washington will follow London’s lead in the matter of a safeguard clause. The Chamber’s Finance Committee by 14 votes to 13 rejected the first clause of the Government’s financial proposals by which financial measures are taken by decree. The Bill consists of two clauses, the first authorising decrees and the second providing that these decrees shall be submitted to Parliament at the opening session m 1927. The committee’s rejection of the First knocks the bottom out of the whole Bill. The fate of the Government hangs on the general financial debate which begins in the Chamber to-morrow, when the Government will submit the Bill. THE FATEFUL DEBATE. PARIS, July 18. The Chamber was crowded for the fateful debate, in which the Finance Committee submitted a Bill definitely limiting the powers of M. Caillaux. The latter simultaneously submitted his own measure. M. Herriott opposed the Government and declared that if his prerogatives were diminished he would resign the presidency of the Chamber. He impassionedly appealed to “Messieurs !e Government” to co-operate with Parliament, and not to suppress it. M. Briaud, in a statement, said that Parliament would increase its reputation in the eyes of the country by sacrificing its prerogatives. The Opposition moved to discuss the Finance Committee’s Bill, which M. Briand* announced would be made a question of confidence. After the vote on the Bill M. Briand announced his intention to resign. Fear that France would be placed at the mercy of foreign banks with the Chamber helplessly gagged was mainly responsible for the Government’s downfall. A majority of the Deputies opposed the raising of credits abroad an also the Washington, if not the London, agreement Many Deputies jibbed, especially at the idea of entrusting M. Caillaux with dictatorial powers. In the course of the debate the Opposition quoted extracts from a treatise in favour of a dictatorship, which was discovered in war-time in a safe in Florence, and the authorship of which is attributed to M. Caillaux. Later M. Doumergue accepted the Government’s resignation. He is likely to summon M. Herriot, who leads the largest party in the Chamber. THE RATES OF EXCHANGE. LONDON, July 16. The French franc in London opened at 20i£. Later is reached 204£ and closed at 201 J. The Belgian franc is at 2055.