Evening star. [volume] (Washington, D.C.) 1854-1972, 1947-07-20
By S. Berocho
North American Newspaper Alliance

North AmeFicon Newspaper Afionee
+ PARIS, July 19.--In spite of the
fact that Paris accepts the principle
of Europe's economic interdepend-
ence, France has her own plan as
to how this should be brought
about. While the nations may be
in perfect agreement on the neces-
sity of economic collaboration, they
might not be, when 1t comes to
the manner of application. and this
disagreement may arise precisely
between France and Great Britain
with regard to Germany's partici-
patton.
The Importance of Frances share
in European, economic recovery will
depend on the Germans role.
French industrial production is In
competition with German produc-
ton. And one of Frances prin-
cipal fears is that the Marshall
Plan might be instrumental in the
reconstruction of German economy.
Conflict Seen I'm Policies.
In his Harvard speech, Secretary
of State Marshall invited Europe
to elaborate a plan for maximum
utilization of the common resources
of all countries. In this way, 1t
was thought, the aid demanded OF
the United States would be reduced
to a minimum. However, the con-
siderable industrial potential of Ger
many is one of the principal ele-
ments of Europe's resources. There
fore, will not the doctrine set forth
at Harvard work out for the bene-
fit of this German industrial po-
tential?
At Yalta as we'll as at Potsdam
the reduction of the German in
dustrial potential was considered
conditional for its disarmament.
How are we to reconcile the contra
dictory premises advanced at Pots
dam and at Harvard? A solution,
not detrimental to French economy
has to be found for this problem be-
fore any other.
There are two ways to use the
German equipment: The first is to
employ it on the spot and the second
is to dismantle a large portion Of
it to allow for use in other countries.
BY right Of reparations, France Is
entitled to a certain number OF
German factories.
However, the reparation agree
ments seem to be suspended for the
time being because the Americans
interpret the current diplomatic
situation as exempting them from
their previous commitments and
allowing them to reconsider the
future of German economy. This
is very grave, from the point Of
view of French economy, which
today is concerned with re-equip-
ment and modernization. Is 1t not
possible that the restoration Of the
prewar pace in certain German in
dustries might mean fewer dollars
for France, in order to restrain the
development of those very same
industries in France. This question
is on the lips of even those French
deputies who are entirely sympa-
thetic to Gen. Marshalls initiative.
Steel Industry Cited.
The most characteristic example
is quite obviously that of the steel
industry. The question has already
arisen Of whether French iron ore
should be converted into iron and
steel in the blast furnaces of the
Ruhr, or if, on the contrary, Ger
man coal should be sent to France
to convert the mineral riches OF
Lorraine into metal ingots. The
more German coal Is diverted into
German industry, the less France
will get.
In fact it comes to this: The
prospective negotiations for the
establishment Of a European system
Of economic cooperation will boil
down to a choice between France