France will embark upon. a policy of economy by ruthlessly cutting down the expenditure of its Gorernment departments, according 8 communique issued following today's extraordinary Cabinet meeting at. President" Doumerguc's. summer residence at Rambozillet Castle.
Tt iz stated that the discus after dealing with certain questions, concentrated on next year's budzet.for which the claims of the various departments show an increase of six thousand million franes over the amount fixed for the current fiscal year, These it is Geclai yest be reduced sub stantially since any material "in crease of the budget would involve new taxation and would render musery the Government's present efforts to alleviate the existing te burden of taxation. It is under~ stond that the tuik of the denranded additional expenditure arises from the alleged requirements for purposes of national defence wherefore the press is rather sceptical regarding the Cabinet's eventi success in reducing the new budget demands in a really effective de-
Having dealt with the budget, the Cabiner council considered Foreign Minister Briand's report is Pan-Evrcpean Federation project and certain modifications of the plan which might be necessitated by the demands and proposals submitted by the Powers in their replies to M. Briand's memorandum. It is understood that a second memorandum comprising, those modifications and certain fare ther proposals will be submitted to the various governments interested in the scheme in the week.—Trans-Ocean Kuo Min, Paris, Aug. 12.
The Minister in charge of the Budget, M, Rambouillet, the possibility of maint Budget's equilibrium at of the Council of Ministers day.
After examining financial condi tions generally he stated that between 1926 and 1930 expenses had increased Ly 18,000,000,000 teanes. He added that the Budget for 1920 had increased by 6,000,000,000 francs compared with 1929, but the Rgures asked for in the Budget of 1931 would exceed by 6,000,000,000 those of the 1930 Budget.
Tt was pointed out that the of the National Debt absorbed AR per cent, of the revenue and that it would be impossible, with: cet new taxes and a loan, to cover As a consequence the Council unanimously decided to. re-exami the Budget figures asked for in 1931 in an endeavour to find some way of balancing revenue and exrediture—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.