Evening star., 1952-04-30
Financial Problems
Said 10 Bar France
From European Army
By Dorothy Thompson

France will really make the neceS-
sary contribution to the European
Army is anybody's guess. The
problem is largely financial.
Everybody with whom I have
talked here agrees that Gen. Els
enhower has really helped create
"a new French martial spirit. The
generation which got into the
second World War had, on the
whole, held the military in con-
tempt, and after defeat there was
widespread doubt of the capacity
of the French soldier. Gen. Eisen-
hover is a remarkable restorer of
military amour propre. A friend
who is familiar with SHAPE told
me, HE treats a French lieuten-
ant as though he were an Ameri-
can lieutenant-or, perhaps, an
American captain.
The problem. however. is where
to find the money for the French
contribution to the European
army and how to sell the idea
to the French people and Assem-
bly, to the point where they will
vote the necessary funds.
AS far as the French people are
concerned, Americans should bear
in mind that 1881 was the first
year in which the supply of con-
sumers' goods reached the level of
1929-the prewar year that began
the worldwide depression. There
after, there was a steady and con-
tinuous depression, never so acute
as the American collapse, but
wearing. Things began to pick up
in 1938-and then came the war,
in 1889.
Production Higher.
Production figures didn't tell
the whole story. French produc-
tion is above the French level for
1929 and 1888. However, until the
past years, it has not been going
to satisfy peoples needs, but into
capital investments and exports.
Shortages of consumers goods
foster profiteering and exacerbate
social tensions. With enough of
them the French have been hap
pier. gayer. and better natured.
This is obvious to the most casual
visitor who has not been here for
three years. Now the demands of
the state, including rearmament,
threaten to knock this condition
in the head.
Nobody believes taxes can be
raised. The question is whether
more can be collected, for tax eva
sion is widespread. But the fol-
lowing facts stare the French ir
the face:
Cd Seven years after the war
the reconstruction of the damaged
war areas is not one-f1fth com.
pleted. Factories and roads have
been repaired or rebuilt. but moi
dwellings. (Actually, West Ger
many since the war has built sever
times the dwellings that France
has, and twice as many as Great
Britain.) The budget for such re-
construction equals the total o.
civil administration-around 50(
billion francs. E@
CO France is engaged in ar
endless war in Indo-China, which
has cost practically all the money
France has received from Marshall
Aid.
90 The French nationalized in
dustries ttwo-fifths of all basif
industries) are an enormous bur.
den on the treasury. Theoretical
Ily, of course, socialiZed industries
not operated under the profit
system" should return money te
the treasury, and alleviate taxes
Actually they are not self-sup-
porting. The taxpayer has to put
up funds for the new investments
which they continually need. The
French state is fabulously rich ir
booked assets, but the people are
kept poor maintaining these as
sets. Yet the Socialists, who neec
to be kept within the coalition II
the government is to stay in pow.
er, will not vote to return then
to private hands that will beal
the risks and raise the capital.
Heavy Financial Responsibilities.
M. Pinay is regarded by many
as financial genius and some
times compared to Poincare, who
saved the franc and. pulled France
out of the financial doldrums in
the twenties, following the first
World War.
But even if Pinay is as able a
man as Poincare-as he may be
the situation is not analogous.
When Poincare came in, post
war reconstruction had been COM
pleted; the Moroccan War that
followed World War I had been