FRENCH POLITICS

Hokitika Guardian, 12 July 1926, Page 3

FRENCH POLITICS

'[Australian & N.Z. Cable Association.] PARIS, July ,10. The Chamber of Deputies voted confidence in the Government, the vote being as follows:—For the Government 4, against 247. s,, Before the vote Caillaux declared that a “Washington debt agreement, and also foreign loans, were necessary to France’s financial restoration. He explained that the extraordinary powers which the Government required did not imply the imposition of taxes without the consent of Parliament, hut merely simplified and accelerated the procedure. M. Caillaux is flying to Ixuidon on Monday, to pursue the debt convcrsnwith Mr Churchill. Following on the Chamber’s vote k “Le Temps” states: M. Caillaux proposes to introduce immediately a bill containing only one clause, substantially authorising the Government to take, by decree, all the neeessary measures to maintain the equilbrium of the budget and the stabilisation of the franc. An annexe to the bill contains a list of measures which it is proposed to enforce. i

FATE OF THE FRANC. PARIS, July 0

v The fate of two Governments is in the balance, and it is agreed to-day’s debate will be decisive. In the opinion of the Socialist plan, the capital levy ceased to count. After Caillaux’s speech, it was estimated the Government can rely on 230 votes, but a dubious factor is the attitude of the moderates under Marin, who has not yet participated in the debate. Meantime francs in London, are rather better, 187/37 and Belgians 199/25.

FRENCH MAJORITY. (Received this day at 10.15 a.m.) LONDON, July 10. The “Observer’s” Paris, correspondent states though tho majority was narrow, tho confidence will enable Callaiux to negotiate for ameliorated term in Washington and London for the debt settlement, but the Government is still without tlio Chamber's sanction of tho powers it is seeking for financial reforms by decree. The correspondent emphasises the confidence vote authorises tho Government to attempt a scheme of monetary stabilisation. From this viewpoint it may bo described as the most important financial decision since the war, perhaps tho most important for a century, for it means an effort to create a new franc. Despite thq vote, the. franc to-dav depreciated to 188. M. Caillaux is expected to fly to London to meet Mr Chamberlain ou Monday.