FRENCH SCANDAL

Southland Times, Issue 22217, 9 January 1934, Page 5

FRENCH SCANDAL

THE BAYONNE AFFAIR

CABINET MINISTER INVOLVED

REFUSAL TO RESIGN

(United Press Assn—Telegraph Copyright.) (Rec. 7.0 p.m.) London, January 7. The Paris correspondent of the newspaper People describes Stavisky s amours with the wives of prominent politicians, stating that he induced them to persuade their husbands to help him. The correspondent says he has a bad criminal record. He is the naturalized son of Polish parents. A message from Paris says that Joseph Garat, a member of Parliament and Mayor of Bayonne, who is also chairman of the Bayonne municipal pawnbroking establishment which, it was alleged, issued £6,000,000 of fraudulent bonds, has been arrested. It is alleged that he visited various insurance companies in the hope of dissuading them from pressing for redemption of the bonds. M. Dalimier, now Minister for the Colonies, to-day further conferred with the Prime Minister and persisted in his refusal to resign, contending that his letter in reference to Bayonne bonds was written in good faith. Unless M. Dalimier changes his mind the Ministry is expected to resign on Monday and be reconstituted without M. Dalimier. The newspaper Liberate asserts tha. other members of Cabinet are involved in the scandal. The chief of the Paris Police. M. Chiappe, has been recalled from a holiday in Italy. Stavisky remains elusive. The police have gone on several wild goose chases.

A previous message stated: The Bayonne affair is becoming the greatest politico-financial scandal since Panama, half a century ago. The newspapers are attacking the Government to such an extent that it is believed that M. Chautemps (Prime Minister) has decided to confront M. Dalimier with a dilemma. Either he goes or the Government resigns. 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.