Devaluation

BONN--Devaluation of the French franc appeared almost certain early Friday morning.

The "Group of Ten"--central bankers and finance ministers from the world's wealthiest Western nations--met here until 3 a.m. local time to decide what conditions to attach to a massive credit program to aid the franc.

Discussion reportedly centered on two proposals: a 10 per cent devaluation of the franc coupled with a $3 billion loan to France, or a 15 per cent devaluation with a $2 billion loan.

The larger devaluation would give a greater boost to the French export trade, thus reducing the need for credit to support the franc.

Another feature of both devaluation plans is that West Germany--France's principal trading partner--would put a tax on its exports and reduce its tax on imports. This would decrease France's recent trade deficit with Germany--one of the main causes of the present weakness of the franc.