Imperial Valley press., 1941-10-28
German Demand on
France Puts Petain
Regime in Danger
By HARRISON SALISBURY
United Press Staff Correspondent

Onlteu freSS Sta11 correspondent
Marshal Henri Philippe Petain's
future as chief of the French state
is at stake in a deepening economic
crisis resulting from French col
laboration" with Germany.
This picture was provided by au-
thentic advices reaching the United
Press Tuesday from sources on the
European continent.
According to this information,
French industry, commerce ami ag-
riculture has been geared so COM
pletely to the Reich war mac'
that little more collaboration" can
be expected except some arrange
ment to allow France. as we'll .
Germany to benefit from the new
Set-up. So far, France has receive
virtually no benefits.
With minor exceptions. the infor-
nation reported, those French in
duStrieS which are Workine pr
working for German account. Mean
time, German agents continue 10
Scour both occupied and unoccupied
France for food supplies and raw
materials, shipping such vast quaint
tiles that France faces a winter of
unparalleled suffering.
CRISES PROVOKED
Economic repercuSSionS of these
developments. the adviceS said. may
! prove extreme in the next few
months. particularly if the Ger
mans continue to manipulate the
flow of raw materials to French
industry, artifically provoking in
dustrial crises to back their de-
lnands to the Vichy government.
Petain, himself, it was said re-
CARDS the situation as explosive. A
combination Of food riots and un-
employment this winter. it was said,
might we'll bring down the whole
Vichy regime. including Petain.
The situation has been so deli
cate it was added, that Petain has
heSitated to try the temper of
French labor by introducing his
medieval guild system under a new
labor statute-part of the "revolu-
ton" by which Petain hopes to re-
turn to France something of con-
ditions which existed under the last
Bourbon monarchS.
PENALTIES REMAIN
The Germans are biting off huge
chunks of French industry. IN
spite of year of dickering, there
has been no reduction in the daily
charge Of 100000, 900 Franc troughly
about $4,000 900 assessed by Ger
many as occupation charges.
Through use of huge balances
piled up in the Bank of France to
her credit. the Germans have in
directly obtained virtual control of
French finance. They have bought
outright about 20 per cent of
French heavy industry They now
own or have large Stockholdings in
more than 200 of the top French
industrial ConcernS-steel. coal, rub
ber, textiles and fabricating indus
tries.
The Germans buy vast quantities
i'll the open market and requisition
even more supplies, The Germans
are estimated to have acquired at
least half the meat supplies avail
able in the occupied zone. The dis
position of meat animals sold at
: the recent Saint Lo stock fair is
believed typical. The Germans ac-
quired 1887 of 2,878 head of beef,
IT'S of 5,435 head of calves, 6l of
2,127 sheep and 684 of 1886 pics
roughly half the beef and nigs,
leaving the bulk of the calves nnd
sheep to the French.
The Germans are said already
to have drained almost all surplus
horses from France and are threat
ening to requisition the rest They
have shipped 5000 horses from
Brittany alone.