FRENCH POLITICS

Hokitika Guardian, 10 July 1926, Page 3

FRENCH POLITICS

| Australian & N.Z. Cable Association.] FRANCE’S DEBT. LONDON, July 9. The “Moi'ning Post’s” diplomatic nor respondent says: “Negotiations for the funding of France's debt to / England are being carried on by Air tV. Churchill (Chancellor of the ExV chequer), and M. Pouyanne (the French Financial Adviser) in London. They are progressing favourably. They are on the basis of Af. Caillaux’s preliminary agreement in August for annual payments of 12J millions sterling by France to Britain. * M. Peret, when- Finance later on accepted the principle of M. Caillaux’s agreements so that the present conversations are cjiiclly eoncerned with the technical details. Before tho end of the month, AT. Caillaux ■ should be in. a position to come to \ London to sign an agreement.

FRANC SLUAIPS FURTHER. PAIUS, July 8. ConsideralJfe excitement has been caused in financial circles here owing to a further heavy fall in the exchange value of the French franc to 193 to the pound sterling. The new crash is reported to he due to an adverse balance sheet published , by tlie Bank of France, showing that the Government, is withirj dangerous , proximity of the fatal figure, which will end all borrowing from the Bank and is also within twenty millions sterling of the limit to which it is possible to go without further Parliamentary sainrtion of more currency inflation. PARIS, July 8. The fall of the franc reflects the uncertainty of the political situation. The latest development of the situation is a decision by the Republican Democratic Union, a party commanding one hundred and four votes in the Chamber, to oppose the Government’s financial programme, on the ground that it is insufficient to moot tiro present crisis.