BIG SCANDAL

Southland Times, Issue 22216, 8 January 1934, Page 5

BIG SCANDAL

BAYONNE AFFAIR

GOVERNMENT’S DILEMMA

SERIOUS REPERCUSSIONS

LIKELY

(United Press Assn.—Telegraph Copyright.) (Rec. 7.30 p.m.) Paris, January 7. The Bayonne affair is becoming the greatest politico-financial scandal since the Panama scandal half a century ago. Newspapers are attacking the Government to such an extent that it is believed M. Chautemps has decided to confront M. Dalimier with the dilemma—either he goes or the Government resigns. Stavisky’s whereabouts are still a mystery. The Minister of Justice, M. Reynaldi, has returned from a holiday and is taking personal charge of the case, which has become known as the French “Kreuger” case. Stavisky’s wife has been located in a small furnished flat in Paris, where she is living with her three young children. The police searched the apartments and seized many documents, finding a large quantity of jewels and £5OO. The London Daily Telegraph’s Paris correspondent has confirmed that Stavisky before the general election was one of the most liberal supporters of the funds of the Radical Socialist party, now in office. He called upon M. Chautemps on October 23 and also other prominent people, but was told everywhere he could not be received. He apparently realized the danger and rturned to his apartments, thence to an aerodrome where the police noticed his departure and reported it to the Ministry of the Interior. The question is now asked why he was allowed to escape. It is regarded as probable that the affair will have serious political repercussions.

ADMINISTRATIVE INQUIRY

M. CHAUTEMPS’ ACTION.

(United Press Assn.—Telegraph Copyright.) (Rec. 11.25 p.m.) Paris, January 7. M. Chautemps has decided to open an administrative inquiry as to whether there has been any neglect or misdemeanous in connection with the Bayonne frauds.

Le aMtin states that M. Chautemps has demande dthe resignation of M. Dalimier who, as Minister in the former Cabinet, recommended selling the bonds. M. Dalimier is refusing and M. Chautemps is now considering the collective resignation of the whole Cabinet. It is believed M. Lebrun will accept. M. Chautemps will then reconstruct Cabinet without M. Dalimier before the Chamber meets on Tuesday. The Sunday Times says it is estimated that Stavisky secured £35,000,000 from investors in various schemes. A British bank said it invested £300,000.