FRANCE NEARS BUDGET CRISIS RENAUD’S THREAT

Grey River Argus, 10 August 1948, Page 5

FRANCE NEARS BUDGET CRISIS RENAUD’S THREAT

UNLESS VOTED EXTRA POWERS ■ (Received August 9, at 8.45 p.m.) PARIS, August 9. M. Reynaud. Finance Minister in the new French Cabinet, addressed the National Assembly on his Bill to give him special powers for national economic recovery for 12 or 18 months without Parliamentary interference. He said he would resign if not given the full powers he asked.

After the Assembly’s debate opened on Sunday morning, the Communists moved a motion to reject the demand of M. Reynaud for special powers to restore the national economy. The Assembly rejected the motion by a majority of 185 —by 386 to 201, some of the De Gaullist members voted for the motion along with the Communists. In his address, M. Reynaud told the National Assembly that he would resign if the Assembly did not give him the special powers he was seeking. He said that if the Assembly should refuse the powers, “I shall return to my seat as a Deputy without any animosity, but certainly not without anxiety.” M. Reynaud said: “France must imitate the English. She must export or die.” He declared that France had to develop a trade with India, with Australia and with South Africa. Contrary to what had been said in the debate, he thought that there was every chance of doing so. He continued that France and Europe had to go over to mass production, as that was the only way to raise the standard of living of the masses. The complete reform of the complicated and laborious French system of taxation had, become urgent and essential, he said. There ’was a budget deficit equal to one hundred and fifteen millions sterling. There also was a deficit in the French Treasury of the same amount. He added that the French Budget' and Treasury deficits for the year '1949 would 'be between eight hundred and ten millions sterling and nine hundred and twenty millions sterling Ilf no action were now taken. The Treasury, at present, had only eighty-one millions sterling at the Bank of France. “But, said M. Reynaud, he was prepared to take the risk' and not ask for an increase in the maximum advance which the Bank of France was allowed to make to the State, provided that the powers which he sought were granted. He added: “What we need is courage. Let it not be said that the Assembly lacks courage.” The Moderates and the Radicals loudly applauded the speech. The Socialist Party benches received the speech rather cooly. A vote on the Bill is expected this, evening. “The Times’s” Paris correspondent says: “The first reactions in the National Assembly confirm an impression, given during Cabinet discussions, that this Bill is a distasteful necessity, as it is alien to the spirit,

if not to the letter, of the new Constitution. No one, except the Communists, seriously argues that the present Assembly, with its existing procedure, can legislate fast enough, or consistently enough, or efficiently enough, to carry out indispensable certain, therefore, that a majority is financial economic measures. It is prepared to grant the Government the means, in some form or other, to make up for the Assembly’s deficiency, and. at the same time, to lighten its burden.” GOVERNMENT'S FATE AT STAKE A Compromise Expected (Received August 9, 10.10 p.m.) LONDON, August 9. The debate in the French National Assembly on the special financial powers for which M. Reynaud is asking may decide the fate of M. Marie’s fortnight-old Coalition Government. Reuter’s Paris correspondent points out that M. Reynaud is “one of the key men in M. Marie’s Cabinet, and that his resignation would bring down the whole Government.” Observers felt that when the debate was resumed on Monday, some compromise will be found to save the Government’s life. Left Wing Deputies, in the debate on Sunday night, had protested that the proposed special powers constituted a threat to the Assembly’s sovereignty, and was a temptation to dictatorial abuses. The “Daily Telegraph’s” Paris correspondent said: M. Reynaud resented modification which the Assembly Finance Commission had introduced into his demands before approving of them. He is ready to accept some compromises, but he has decided to stand or fall on the tax issue, on which he is adamant.” Other observers said that a failure to agree on the Bill might mean a general election. Several Assembly committees, including the military, labour and industrial production committees, earlier attacked the Government’s plans. The committees sought to remove their departments from ‘‘rule by decree” as soon as the session opened. The Finance Committee modified the draft of the Bill, which no longer mentions longer working hours or of the promotion of European economic integration by French initiative. M. Reynaud rejected the Finance Commission’s amendments to the Bill saying he would not continue with the task unless granted the powers he seeks.