RESIGNATION OF CHAUTEMPS

Southland Times, Issue 23408, 15 January 1938, Page 5

RESIGNATION OF CHAUTEMPS

Political Crisis In

France

DISORDER IN PARIS STREETS CONTINUED SLUMP OF THE FRANC (United Press Assn. —Telegraph Copyright) (Received January 14, 7.30 p.m-) PARIS, January 14. The Government has resigned owing to the resignation of the Socialist Ministers from the Cabinet. Crowds of strikers clashed with the police in the boulevards, while the Chamber of Deputies was engaged in a fierce debate on which hung the fate of M. Camille Chautemps’s Popular Front Government.

M. Chautemps appealed to the deputies for peace in industry and national unity. He sought a vote of confidence which would avert the Government s resignation.

M. Chautemps said: “Nothing justifies the anxiety which has been shown. The Budget is balanced and the Treasury is in a position to meet all obligations in the current quarter. The can on its resources to repay the London loan was, if anything, a sign of improvement in French credit, but other influences have been operating, including a recrudescence of social agitation and strikes in the public service and elsewhere.” , After M. Chautemps s speech the House adjourned for discussions between the parties. When it resumed M. Chautemps attempted to placate the Left groups, and then produced a Foreign News Agency message stating that a new Qommunist putsch was timed for this evening, when works would be closing. He declared that such false news from a foreign source could be struck at by the law. The matter had already been handed over to the police. EFFORT TO SAVE FRANC The Prime Minister and the Minister of Finance (M. Bonnet) had previously acquainted the Chamber with the political and financial situation and the grave repercussions on the exchange markets. Cabinet unanimously decided energetically to defend the franc and France’s financial position. It authoritized M. Chautemps to make a declaration in Parliament in order to associate Parliament and the nation in this effort at public salvation. M. Bonnet issued a statement that the Government had unanimously rejected exchange control and regarded a balanced Budget as more than ever indispensable. . It was reported that the Minister of Finance was unable to give much comfort to the Prime Minister, who in a long interview overnight suggested that M. Bonnet might resign after the Cabinet meeting. The bogy of exchange control was raising its head and M. Bonnet was known violently to oppose this panacea. The Paris correspondent of The Times says the flight of the franc continued unabated throughout the day, and although the Exchange Equalization Fund intervened extensively the sterling rate closed at 149.5 (151 after hours). The resignation of the government was the culmination of one of the most dramatic all-night sittings of deputies ever known. Until M. Chautemps rose to speak the ministry seemed assured of a new lease of life, but as the Prime Minister, strangely pale and exhausted, began to throw the responsibility for the crisis on his own followers, the chamber became astounded and bewildered as seldom before.

“Complete and shameful surrender to big business” was one deputy’s description of the speech. The Paris correspondent of The Manchester Guardian declares that M. Chautemps seemed to go out of his way to provoke the Socialists to render the continuance of the popular front impossible. He did not mention the refusal of employers’ federations to participate in drafting the new labour code which precipitated the immediate crisis or the determined campaign to overthrow the government by financial pressure. On the contrary he attacked the workers whereon he placed the sole blame.

At the conclusion of his speech the only question in the lobbies was: “Can the Socialists swallow this?” for it was obvious the Communists could not. Nevertheless the Socialists decided to support the government.

It was announced recently that £208,000,000 would be required for obligations to be met by the French Government this year, apart from the estimated deficit of £70,000,000 in the present Budget. On July 8 the President, M. Lebrun, signed new financial decrees Imposing a vigorous programme of extra taxation to bring in £80,000,000 to balance the Budget. These provided for a 30 per cent, increase in letter postage and telephone charges, and a 20 per cent, increase for tobacco and income tax. In the case of income tax the Increase was made retrospective to 1936. Customs, estate and stamp duties were increased, also gas, oil and petrol taxes. Rail fares were raised. The Prime Minister (M. Chautemps) broadcast an appeal to the country for a united effort to rid France of financial instability. "The effort you are called upon to make is a big one, but it is unavoidable,” he said. "We are sure that the nation will understand that this is its one way of salvation.”