§ Mr. Attlee(by Private Notice) asked the Chancellor of the Exchequer whether he can make any statement as to the monetary measures announced by the French Government yesterday?
§ The Chancellor of the Exchequer (Sir John Simon)In the French Chamber yesterday M. Chautemps' Government announced their intention of asking for drastic powers to deal with the financial situation, and I understand that the French Parliament is dealing with this demand to-day. The present position, therefore, is that the French Government are asking for such powers, but until they have both obtained them and decided on the action to take under them it is not possible to state the details of their plans. It is generally recognised that the readjustment of the franc in September, 1936, was not entirely successful in re-establishing a lasting equilibrium between the economic system of France and those of the United States and Great Britain such as is the underlying object of the Tripartite Agreement. I understand that the measures now contemplated by the French Government, which involve the removal of the upper and lower gold limits now prescribed for the franc, are addressed to adjusting this situation.
I have been assured, however, by the French Government that it is not their object to seek any exchange advantage from this adjustment and that they are anxious to continue close co-operation with the Governments of the United States and the United Kingdom. This is also the strong desire of His Majesty's Government, and I shall continue to be in close touch with the French Minister of Finance and the Secretary of the United States Treasury with this object in view.
§ Mr. ThorneDoes not the right hon. Gentleman think that the French Government are a bit too late, and that they ought to have taken steps earlier to prevent the money being spirited away?