Evening star., 1951-01-28

increasing needs of Frances peo-
pie in this direction.
Despite the great increase in
industrial production, much of
which has gone for repair of war
damage as well as revival of for
elgn trade, there is a serious dis
parity between French prices and
wages. The index of French re-
tail prices stands today at 2,23O,
based on prewar 100, rejecting
not only the great decline in the
value of the franc but also the
raging imitation.
The wage index, however,
stands at 1850 on the same basis.
Which means that while prices in
francs have risen more than %
times since 1899, wages have in
creased only 10 times. In other
words. the French standard of liv-
ing has been cut to less than one
half what it was in 1889.
The Frenchman, earning less
than half what he did in 1899
also is saddled with a rate of tax
alton which makes American taxes
look like featherweight. Evasion
OF French income taxes is notori-
GUS, of course, but the income tax
is not the chief source of French
revenue. which is derived mainly
from indirect, hidden taxes which
no Frenchman can escape.
That S brief summary of the
economic picture into which the
Soviet menace in Europe has in
troduced the new and well-nigh
disastrous element of need to re-
arm in company with the II other
members of the Atlantic alliance
against Communist aggression.
France did not hesitate to ad-
here to the Atlantic alliance when
1T was concluded in 1949. Nor
did she hesitate to commit her
self to rearmament when the At
lantic defense plans were made
France now has $4,000 men in
her armed forces, 100000 of them
fighting In Indo-China.
Has the Manpower
France maintains seven di-
visions in continental Europe and
two more, besides non n-divisionalI
contlngents, in North Africa. Of
the seven in France five are we'll
equipped and combat-ready. Two
others are not completely
equipped France has committed
herself to raise three more di-
visions on the continent of Europe
by the end of this year.
French officials make no denial
OF the claim. frequently heard,
that she could. if she wanted, raise
scores of divisions, as she did in
World War II, in support of the
Western defense effort. They
concede readily that France has
the manpower for a full-f1edged
mobilization. What she does not
have, and what she cannot get in
the immediate future by her own
effort, is the equipment for such
an army.
Premier Pleven comes to Wash
ington reinforced by passage in
Parliament of a defense and re-
armament budget for 1941 which
totals TAO billion francs (more
than 50 billion. This is almost
double the 338 billion francs pro-
Vlded for 1949 and more than a
IS per cent increase over the 42O
billion francs spent in 1850.
OF the 800 billion francs added
to the defense budget this year
all but about so billion will have
to be raised by taxation, which
means the already onerous burden
of indirect taxes will be made
much sitter and it is these indi-
rect taxes-on such things as pur-
chases of d long list of commodi-
ties-whicf hit the little man
hardest.
The so billion francs can be
raised by new governmental loans
but the frugal Frenchman's dis
position to put his money into
fixed value securities is almost nil
in the face of fresh inf1ationary
threats and uncertainty over the
future value of the franc.
Given a shaky economic situa-
ton to start with and the addi-
ton of great new weight in cost
i OF rearmament, the French gov
eminent now has to deal with a
serious added complication which
threatens to rob the French re-
armament budget of a large part
of the additional strength which
it could throw into Western Eu-
rope defense.
This new factor is the sky
rocketing of raw material prices in
world markets and the necessity
OF paying vastly increased prices
not only for the things which go
into military equipment but also
into many of the. things which the
civilian wants to buy.
In the last two months the in
deX of French wholesale prices
(See PLEVEN, Page C-5D