Evening star., 1948-01-26
Britain Intends
To Keep Pound
Up, Criipps Says
Doubts Necessity
Of Following Fronee
In DevaIuotion
BY the Assoeioied Press

LONDON, Jan. 26.-Sir Staf-l
ford Cripps declared today that
Britain does not contemplate
devaluing the pound despite
Erench action in cutting the
value of the franc.
I'VE do not believe that this will
be rendered necessary or advisable"
the Chancellor of the EXchequer
told the House of Commons.
Earlier, government securities had
dipped on the Stock Exchange, re-
fecting investors fears that
Frances action will damage the
pound sterling.
France had overridden, objections
of both Britain and the interna-
tional monetary fund in reValulng
her money. The devaluation gave
French manufacturers chance to
cut their prices as much as one-half
in world markets and consequently
threatened British markets abroad.
Sir Stafford did not disclose what
steps would be taken to protect the
pound. q
Consulting With French.
Consultations are continuing with
the French, he disclosed.
I'm any action that We are COM
PEELED to take" he declared, I'VE
shall, of course, exercise the greatest
care not to add to the difficulties
of our French friends more than
might prove absolutely inevitable"
Sir Stafford pointed out that
Britain is responsible to the whole
of the sterling area for measures to
be taken.
I'VE must, therefore, maintain
our freedom to take any action
which may be found necessary" he
asserted.
In Paris Premier Schuman de-
clared that without devaluation of
the franc, France faced economic
ruin and widespread unemploy-,-
ment.
Approval by Few Votes Seen.
More and more deputies. mean
while, expressed disapproval of the
monetary operations and dismay
that they were carried out despite
strong opposition from Britain and
the international Monetary Fund.
Mr.. Schuman was asking the Ma
tional Assembly to authorize crea-
ton of a free money market and
permit the free movement of gold
in France
The devaluation does not require
parliamentary approval as it was
done by cabinet decree.
Despite protests in Parliament,
veteran political observers believed
the cabinet would gain approval of
its two measures with majority of
a few votes.
The devaluation amounts to
about A per cent for French eX-
porters. They now will get many
more francs for their dollars than
they have been getting.
Free Market Open to Tourists.
Up to midnight the franc was
officially quoted at 119 to 81. The
new rate is 214 to 81, but exporters
will be able to realize even more
than that. They will trade half
their, dollars at the 214-1 rate, and
the other half at a newly created
free market, currently around 337
francs to the dollar.
This free market also will be open
to tourists. France hopes this action
and the benefits to exports will
bring here more dollars for pur-
chase of essential goods abroad
The object is to attain French re-
covery before prices rise too much
at home, as they are bound to do.
The Paris stock market as whole
was calm today. French govern
ment bonds, gold and free cur
rencies showed declines. Many
French industrial and international
stocks were higher.
In London Sir Stafford said the
Anglo-French differences on cur
rency devaluation would not en-
danger Western European co-opera-
ton, called for last week by Foreign
Secretary Bevin.
Desire to Cooperate.
.~ This difference of view he
declared, will not have any effect
whatsoever on our sincere and
earnest desire to cooperate with
the government of France to the
fullest extent in the economic as
we'll as in the political field"
Investors rushed to get into
(See LONDON, Page A-5)
IN Al a.