1.
GV PAN.. MONTE CARLO.
0.17

2.
GV SIGN "PRINCIPALITY OF MONACO".
0.20

3.
GV ROAD WHICH CROSSES FROM FRANCE TINTO MONACO.
0.23

4.
CU SIGN "MONACO" PAN TO TRAIN LEAVING STATION.
0.31

5.
GV MONACO STATION.
0.34

6.
GV MONACO GOVERNMENT BUILDINGS.
0.38

7.
CU SIGN "NATIONAL COUNCIL".
0.40

8.
GV TILT DOWN... CASINO.
0.43

9.
GV CASINO.
0.47

10.
GV POST OFFICE.
0.51

11.
SV TOBACCONIST SHOP.
0.54

12.
CU CIGARETTE PACKETS.
1.00

13.
SV MAN LOOKING AT PICTURE POSTCARDS.
1.02

14.
SCU PICTURES PRINCE RAINIER AND PRINCESS GRACE.
1.06

15.
GV STATUE OF MEMBER MONACO ROYAL FAMILY WITH PALACE IN B/G.
1.09

16.
LV PALACE.
1.12

17.
LV PALACE GUARDS.
1.16

18.
GV PAN... FROM GUNS TO VIEW OF HARBOUR.
1.20

19.
GV PAN.. HARBOUR.
1.26



Initials DD/S/MGT/LW



Script is copyright Reuters Limited. All rights reserved

Background: MONACO NATIONAL COUNCIL ASKED PRINCE RAINIER ON APR 12 TO SUMMON AN EMERGENCY SESSION OF PARLIAMENT ON APR 16 TO DISCUSS GENERAL DE GAULLE'S ENDING OF THE 10 YEAR OLD TREATY BETWEEN FRANCE AND THE TAX-FREE PRINCIPALITY. THE ENDING OF THE "GOOD-NEIGHBOUR" TREATY, ANNOUNCED THE DAY BEFORE, MEANS THAT UNLESS A NEW AGREEMENT IS SIGNED WITHIN SIX MONTHS, MONACO WILL BECOME A FOREIGN COUNTRY.

THE HARDEST BLOW TO PRINCE RAINIER'S TINY (HALF SQUARE MILE) MEDITERRANEAN STATE, WHICH IS ENTIRELY SURROUNDED BY FRENCH TERRITORY, IS THAT WITHOUT FRENCH SUPPORT, MONACO WOULD HAVE TO BECOME ECONOMICALLY SELF-SUPPORTING. THE ENDING OF THE TREATY ALSO MEANS THAT FRANCE WOULD SET UP CUSTOMS POSTS ON ALL ROADS INTO THE PRINCIPALITY, A DEMAND FOR MONACO PASSPORTS AND PAYMENT OF FRENCH INCOME TAX FOR ALL CITIZENS OF MONACO WORKING IN FRANCE. THE PRINCE FEELS THAT MONACO'S HUGE TOURIST INDUSTRY WOULD BE HIT BY THE RESTRICTIONS.

GENERAL DE GAULLE'S DECISION - WHICH ALSO INCLUDES A BAN ON ANYMORE FRENCHMEN WISHING TO EMIGRATE TO MONACO - IS HIS LATEST MOVE IN THE COLD-WAR TO FORCE PRINCE RAINIER AND THE 20,000 RESIDENTS OF MONACO TO PAY TAXES TO FRANCE. DESPITE BITTER OPPOSITION FROM MONACO, GENERAL DE GAULLE IS DETERMINED TO PUT AN END TO THE PRINCIPALITY'S TAX PRIVILEGES, WHICH ARE ATTRACTING NEW BUSINESS FIRMS FROM FRANCE AT THE RATE OF THREE A WEEK.