Evening star., 1949-04-17
I French Plane Plants
To Be Shut or Returned
To Private Ownership.
by the Associoted Press

BY the Assoeioted Press
PARIS, April 16.-The French
cabinet has decided seven gov
ernment-owned aviation factories
should be closed or returned to
private management to cut losses
under Frances naturalization
program.
That would leave IT plane
plants in government hands.
The decision was made this
week despite bitter dissent from
Socialists. who are represented in
the cabinet, and Communists. who
are not. Both leftists and right
lists interpreted the measure as
a step backward for socialism.
1t came after year in which
rightists gained and leftists lost
strength in three nationwide
elections. The voting in these
elections-for town and city off,
cials, for local legislatures and
for the Council of the Republic,
the weak upper house of Parlia-
ment-did not directly affect the
makeup of the government.
Rightists Grow Stronger.
Key political posts are still held
by Socialists and Catholic Popu-
lar Republicans (MRP). who back
government ownership. But Radi-
cal Socialists and other advocates
of free enterprise have strength
ened their hold on ministries deal
ing with finance, economic
affairs, commerce, reconstruction
and city planning.
The first big French industry
to come under government owner
ship was the railroads. This was
done before World War II, due
partly to the work of Henri
Queuille.
Mr.. Queuille, now Premier, is
a Radical Socialist with little en-
thusiasm for extending nationali-
zation. He was not running things
Immediately after the liberation,
when the state took over coal,
electric power, gas, banking, in
surance and most of the aircraft
industry in quick succession.
Gen. Charles de Gaulle was in
power then. with a cabinet that
included Communists. 1t left to
private business only aviation mo-
tor building, with about 10 per
cent of the country's potential
production, and four plane con-
struction firms, which could make
about Is per cent of the planes.
Payroll Down to $4,000.
Under Communist Air Minister
Charles Tillon, the governments
five motor plants and 10 plane
factories employed as many as
100000 men. Auti Communists
charged that big proportion OF
them was unnecessary.
The payroll is now down to
about $4,000, with another cut OF
5000 to 10000 in prospect.
In the first seven months OF
1948, the motor factories alone
lost 913,0O0,o00 francs (about
$4,000, ,000). The other plants also
lost heavily, but their figures are
not available. The losses, on a
rising scale, had to be paid by the
French taxpayer.
Defenders of the nationalized
aircraft plants argue they have
not had a fair chance in a normal
economy. They point out, for in
stance, that heavy fines levied
against manufacturers who worked
for the Germans were, charged
against the factories. And, with
all its financial troubles, the state
now practically the sole buyer
of planes-is as much as two years
behind in paying its bills.
Communists Blame U. S.
The Communists say it is all the
fault of the United States.
If French aircraft production is
to be reduced. the party organ
L'Humanite charges, it is because
American manufacturers want to
export to France.
Opponents of government own
ership argue that the factories
have too many useless employees,
left over from the days of Com
munist leadership. that the wages
are too high and the work in
efficient.
Whichever is right. the govern
ment has decided to cut its losses.
The plan must still be drawn
into a formal bill and presented
to Parliament when it returns May
II from its spring vacation. 1t
will certainly be violently debated
and perhaps amended.
Some Conservatives would like
to give private capital a chance
to invest in the aircraft factories.
This was done last year with Air
France. the official airline, but
experts say 1t is still too early to
tell whether the experiment is a
success.
Republicans Nominate