NO CABINET

Southland Times, Issue 25305, 7 June 1935, Page 7

NO CABINET

FRENCH IMPASSE A CRITICAL SITUATION LAVAL LACKS SUPPORT SOCIALISTS’ MANIFESTO (United Press Assn.—Telegraph Copyright.) (Rec. 8.40 p.m.) Paris, June 6. The process of sifting ex-members of Cabinet for a possible new leader continues, while the situation becomes more critical, M. Jeanneney, President of the Senate, having excused himself for health reasons. . ,M. Laval abandoned his attempt to form a Cabinet because the Radicals would not agree by a sufficient majority to support his proposal to limit plenary powers to defence and the franc. President Lebrun then consulted M. Herriot, who departed to sound the Radicals, declaring that he was only on the threshold of his task. Failure in his quest proved the truth of his observation. . , , The Socialists in the meantime issued a manifesto condemning plenary powers and demanding the nationalization of key industries and possibly of the Bank of France, the dissolution of semi-military leagues, and the dissolution of the Chamber with a view to an election on the basis of proportional representation. The Radicals, whose objective is a Radical-Socialist Left Cartel Government, but whose Left Wing, under M. Daladier, revolted against M. Herriot, met and considered the manifesto. The Cartel combination appears to be condemned before trial. Left groups having found many Socialist points unacceptable. This led to an impasse which seems to clear the path for the Corsican, M. Pietri, a former Minister for Marine and Finance, who is the latest to accept an invitation to form a Cabinet. He also demands plenary powers, but is unlikely to complete his consultations before Friday. He will, if successful, be Prime Minister and Minister of Finance. The police dispersed a royalist demonstration and arrested eight persons. A gang of unknown men smashed the windows of the Petit Journal, which champions devaluation, and also attacked the Masonic headquarters. SHORTAGE OF FUNDS PLIGHT OF FRENCH TREASURY. DEMONSTRATIONS IN PARIS. (United Press Assn.—Telegraph Copyright.) (Rec. 7.0 p.m.) London, June 6. The Paris correspondent of the Daily Herald says that M. Flannery, Governor of the Bank of France, in an inj terview with M. Laval said that only if the new Government was prepared to adopt a programme of drastic economies would the bank rediscount Treasury bills due on June 15. The Treasury $ would then be empty, financial panic would ensue and it would be clear to the public that the Government was responsible for the disaster. 'When the Radicals learned of the ultimatum and gathered that M. Laval s only chance to form a Government was to accede to the bank’s demands, they refused their support. M. Laval s reply was: "Tell President Lebrun that I am unable to form a Cabinet.” In the meantime the parties of the Left, ranging from Radicals to Communists, also .became aware of the issue between the bank and ParliaCoiumns of motor cars filled with ex-soldiers of the Fiery Cross organization, which is a Fascist body, are en route to the capital from Cambrai and other places with the intention of demonstrating to-day. The police fear clashes. , Mobs paraded the boulevards shouting “Down with Parliament!" “To the gallows with Deputies!” There were frequent clashes with the police before thev were dispersed. The Paris correspondent of the Daily Mail says the Treasury lacks ready money, yet the Government must secure’ £200,000,000 before January 1, 1936, for urgent expenditure. Moreover, heavy commitments for June lo must be faced during the next few days, and in this connection M. Laval consulted financial experts. The City editor of the Daily Telegraph says that the operations of the British Exchange Fund again checked a relapse in the franc, the fund stepping in when it fell to 758 and restoring it to 75 5-16, but the franc for delivery in three months was quoted at 79.