1938-05-05 — Page 7

THE CHINA MAIL, MAY 5, 1938.

STABILISATION OF FRANC New Agreement With Britain And United States

Rate Likely To Show Further Devaluation

Paris, To-day.

The Premier, M. Edouard Daladier, in a broadcast

-NEW RATE-

OF FRANC

Paris, To-day. According to "Le Matin," the value of the franc will be fixed by decree between 175 to 180 to the pound sterling.-Reuter.

last night, announced that the franc is to be CABINET

stabilised. He made no mention of the rate.

M. Daladier said that stabilisation would be carried DISCUSSIONS

out in agreement with London and Washing- ton at a rate at which the franc would be safe against attack.

Although

Paris, To-day. по official com-

NERVOUSNESS ON EXCHANGE MARKET

London, To-day. Unconfirmed rumours of im- pending franc devaluation and the realignment of certain other major currencies, induced considerable nervousness on the exchange mar- ket yesterday afternoon.

The dollar and. the majority of European currencies encountered heavy selling pressure.

other hand,

On the

bullion

The Premier's broadcast alluded at the outset to munique has been issued about the settlement of labour disputes and big strikes Council of the Ministers suddenly through the goodwill of employers and work- convened yesterday, it is stated in £1,000,000 worth of gold was ac-

ers.

franc on a basis where it He said the second problem was, the external, and arose from the divi- could effectively be defended.

sions in Europe which instead of uniting were ceaselessly arming.

NEW RATE TO-DAY

merchants reported a keen de- mand for gold.

It is estimated that nearly political circles as certain that the quired by the Continent since the new finance decrees and the gen-official price fixing at prices up eral financial situation of France to 139/72d. per fine ounce. → were the subjects of the discussion.

Reuter.

1.

This decision was taken within Painting a "grave situation the framework of the three-power which could not be allowed to con-currency agreement to which the about the renewed decline of the remained Franc in relation to the pound! tinue," M. Daladier said: "I want French

The Cabinet is deeply concerned UNEXPECTED

Government

to tell the country the truth, whichĮ closely attached. is that our economy is hard sit.

GRIM PICTURE

sterling, the rate of exchange hav- CABINET

M. Daladier intimated that he would (Thursday), and it would not be superseded.

fix the new rate to-day ing touched 168.10 yesterday.

In another quarter conjecture is MEETING

busy as to reason for two conversa-

Paris, To-day.

In conclusion he urged that the tions of the French Ambassador in "Legitimate profits will tend to

invest-Washington, Count St. Quentin,

The unexpected meeting of the disappear in a short time, unem-country's savings could be

ed in national currency without with the Secretary of the Treasury, the state ployment is increasing,

ex Cabinet. yesterday morning is of our trade balance is impoverish-fear of new devaluation but rather Mr. Henry Morgenthau, and ing us, our production figures are counting on the possible increased presses the belief that these were understood to have discussed the

a humiliation for the French peo- ple, our economy is drained of its lifeblood, the State budget is in- evitably unbalanced, Treasury needs are a drain on national sav-

value of the franc.-Reuter.

AGREEMENT

for the purpose of devising methods

of preventing unscrupulous specu- tripartite monetary agréement.`

It is believed that modification lation in francs and closer colla- boration of the three signatories of of the agreement was discussed, Washington, To-day.

the Anglo-Franco-American curand if the conversations of the The Secretary of Treasury, Mr. ings, the lowering of public credit Henry Morgenthau, yesterday stat-rency agreement. Trans-Ocean. British and French Ambassadors is drying up private credit and ised that the United States, Britain menacing the credit of our curand France had agreed to continue the tripartite monetary agreement. M. Daladier emphasised the-Reuter. necessity of fixing

rency.

""

a monetary

level which would finally shelter

Paris, To-day.

new

It is understood that the the franc from attacks launched rate of the franc will be between against it for several years, and he 177 and 178 to the pound sterling. had therefore decided to stabilise-Reuter.

French Concession's Advantage Over International Settlement

London, To-day.

The reason why the Chinese customs service was allowed to operate normally in the French Con- cession at Shanghai and not in the Internation- al Settlement, was because the French Conces- sion was solely under French control, said Mr. R. A. Butler, Under-Secretary of Foreign Affairs, and the armed forces of other nations were not permitted to exercise authority therein.

Mr. Butler was replying to a

question by

Commander- A

Marsden (Conservative, Chertsey) AMERICA AGREES

Washington, Today,

Commander: Marsden asked if the Minister was fully aware that owing to Japanese control of the

After making the announcement Customs, quantities of Japanese goods were entering the Settlement that the United States, Britain and duty free to the detriment of Bri- France had decided to continue the tripartite monetary agreement, the tish trade.

He asked the Under-Secretary if Secretary of Treasury, Mr. Henry he would not take some more Morgenthau, said "We feel that what the French Treasury proposes determined attitude.

Mr. Butler: "That is not the to do, comes within the spirit of the tripartite agreement."Reuter. question on the paper."-Reuter,

E

at present being held in Wash- ington conclude satisfactorily, a national defence Woo Wah, aged 33, was admitted big French to the Queen Mary Hospital yes-loan will be launched-simultane- terday. He was knocked down by ously with a declaration by the motor car No 3602 in Connaught 'signatories of the tripartite agree-

ment. Reuter. Road Central,

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