FRED RETRENCHMENT PLAN CAUSES DOWNFALL OF THE TENTH CABINET SINCE THE WAR

Grey River Argus, 30 August 1948, Page 5

FRED RETRENCHMENT PLAN CAUSES DOWNFALL OF THE TENTH CABINET SINCE THE WAR

DE GAULLE’S BID FOR A GENERAL ELECTION " LONDON, August 28. The French Government of M. Marie has resigned, owing to the Socialist members of the Cabinet opposing the economy measures of M. Reynaud, Finance Minister. The Socialists especially opposed measures for economy in the civil service, among whose members they have many supporters. President Aurial is anxious for a new Government immedi ately in view of international and internal difficulties. Among possible s leaders mentioned are M. MendesFrance and’ the ex-Prime Minister, M. Schuman, who has been latterly Foreign Minister.

Tenth Government To Fall Since The War (Rec. 8.30) LONDON, Aug. 28 M. Maries Monthold French Cabinet fell after four meetings being in twenty-four hours, at which the members struggled to agree over the Finance Minister, M. Reynaud’s proposed financial reforms. These included an upward revision of the food prices, and an “axeing” of the civil service. M. Marie, in a statement, said he had resigned because certain differences within the Cabinet “could not be eliminated, although agreement had been reached at an earlier phase of the discussions.” Observers believe that with the fall of the tenth Government since the liberation of France, the country now faces her most severest post-war political test. It is being asked: Who is there left for President Auriol to choose as M. Marie’s successor. Speculation has arisen about the possibility of the Assembly being dissolved, and general elections being held. This is just what General De Gaulle has been urging for months 1 It is understood that the Government fell because M. Reynaud could not accept a new high, level for wages which Popular Republican and Socialist Ministers demanded.

Socialists Criticised For Breaking up Cabinet WAGES QUESTION (Received August 29, 9.40 p.m.) LONDON, August 28. The French Radicals bitterly resent the Socialist Party’s action in breaking up M. Maries Cabinet. The Radical Minister of Education in M. Marie’s Cabinet, M. Yvon Delbos, said - “We shall not forget the attitude of the Socialist .Ministers We shall not agree to join any interim Government or any Government .oi reconciliation.” . If the Radicals maintain this attitude, the formation of a Third Force” Government with a majority in the Assembly, will be impossible. The Associated Press correspondent at Paris says: The Socialists explained that they had brought about the Cabinet crisis “to avoid encouraging workers to strike action, which would fatally have been exploited by the Communists for political ends.” The Socialists also said that they found M. Reynaud’s proposal to raise wages by ten per cdnt. was not sufficient to cover the cost of living, which had risen sixteen per cent. New Cabinet Urgently Wanted (Received August 29, 10.30 p.m.) LONDON, August 28. Reuter’s correspondent at Paris says: Well-informed F’rench political circles understand that President Auriol is anxious to form a new Government with the utmost urgency, not only because of the need for France’s voice in the international negotiations regarding Germany, but also because of France’s home problems, which require the quickest possible solution. It is believed that M. Auriol hopes that a Premier-desig-nate will present himself before the National Assembly on Tuesday. The British United Press correspondent at Paris says: President Auriol met party representatives within a few hours of the Marie Government’s fall in a bid quickly to resolve France's new crisis. Political writers believe M. Auriol may try to persuade M. Ramadier to form a new Government. Reuter’s Paris correspondent says:’ Paris evening newspapers express widely differing views as to the future Premier. Names that are most frequently mentioned are the Radical Socialist, M. Pierre Mendes-France; the Popular Republican, M. Schumann, and M. Ramadier. It is agreed however, that it will be very difficult for any of these candidates to get the necessary majority.

Hint of Another Centre' Coalition (Rec. 9.10). LONDON, August 29. The correspondent of the Associated Press in Paris says: Political speculation centres on M. Mendes-France as M. Marie’s likely successor, although the return M. Schuman is not discounted. M. Mendes-France would have to cement a Coalition Government among the leaders of the various political creeds, which compose the Centre Group, and who stand between the Communists and General de Gaulle’s followers. It is generally assumed neither the De Gaullists nor the- Communists stand a chance of getting a foothold in such a coalition. M. Mendes-France is an advocate of currency reform as being the only road to France’s economic salvation. It is considered that he is one of few leaders who would be able to strike a balance between Right Wing liberalism and the Socialists’ demands for State controls.

REYNAUD PREDICTS MONETARY REFORM Reuter’s Paris correspondent says: M. Reynaud, in an interview after the Government’s fall, said ''that any raising nf France’s wages level would endanger the French export drive. He added! “France will next year will import cotton, wool, leather, rubber, and everything else indispensable to her industries. I had this, in mind constantly when I refused to increase wages beyond what would be necessary for the rise in the prices of agricultural products and certain, other prices. Thus, I chose the only possible way of saving France. Monetary reform will now be delayed, but the time is bound to come when a new spirit of economy and initiative will save France by ensuring her economic independence”. A British United Press correspondent at Paris says: M. Reynaud disclosed that, among his monetary reform plans was one under which all . business would have been done temporarily on a gold franc basis until the value of the paper franc had been stabilised. M. Reynaud added that he had planned to 1 cut the military expenditure by about fifty-eight millions sterling. DE GAULLE IN BACKGROUND “Political observers are more and more inclined to ask,” says the correspondent, “whether this crisis does not imply the impossibility of any man, or any Party, forming a Cabinet that would be able to secure a stable majority in the French Assembly. There is the possibility. of the National Assembly recognising there is such a deadlock, and of its voting for its own dissolution, and for a consequent general election. . The correspondent says: “There is the fear of General De Gaulle ‘sweeping the board’ if there is a general election. That fear would be the main factor in preventing such an Assembly decision for an election.” , Reuter's Paris correspondent says: “It is learned that the Popular Republican Group considered that a Socialist should try to form a new Cabinet, since the Socialists have brought about the fall of the last two Cabinets. De Gaulle May Demand General Elections (Received August 29, 10.5 p.m.) LONDON, August 28. The British United Press correspondent at Paris says: The associates of General De Gaulle said that General De Gaulle, spurred by the downfall of M. Marie’s Government, would unleash, shortly, an all-out campaign for his return to power. They added that General De Gaulle is convinced 'that now is the time to make a bid. They expected that ,he would issue a statement denouncing the present regime, and demanding the dissolution of the national Assembly and the holding of general elections.