Evening star., 1954-10-17

PARIS.-Buried deep under the
news Of the London Conference and
its aftermath, small item appeared
in all French newspapers the other
day. 1t concerned a series of new
government regulations on the pro-
duction of sugar beets. For many
Frenchmen, it was among the most
significant moves made by the
French government since Pierre
MendeS- France took over the Office
of Premier last June II.
Politicians had not tampered with
the sugar-beet subsidy since long
before the war, when law had been
passed compelling the. government
to buy all excess production OF alco-
hol turned out by growers of sugar.
beets, potatoes and grapes. The idea
at the time, it seems, was to "har-
monize" the efforts Of the various
producers and reduce competition
between them.
To make things even more har-
monious. the state offered prices for
this surplus alcohol ranging up to
more than three times the price on
the world market. National assem-
blymen from rural constituencies
could hardly have been more pop
ular.
Alcohol Surplus
Naturally enough, the beet farm
ers knew a good thing when they
saw it. And naturally enough, it
wasn't long before the French gov
ernment was up to its ears in al
cohol.
In 1852 the government found it
self saddled with los million gallons
at price of $1O8 million. OF this. it
managed to sell about half, for a
total of $48 million. The bill to the
taxpayers: $50 million.
Over the last few years, some $145
million have gone down the same
drain. Today, with full two-year
supply of alcohol in government
tanks, the farmers are back in the
fields, taking in new bumper crop
of sugar beets.
From their point of view, the
series of government DEGREES pub
lished last week undoubtedly came
as a grievous blow. For the rest Of
the country, they came as a clear
promise that the fantasy was at an
end and that the long-Standing pol
icy of government financing for use
less production at uneconomic prices
was drawing to close.
This year, two-thirds Of the beet
crop will go into sugar production.
To increase domestic consumption
of sugar, a new government program
has been launched to distribute
sweetened milk in all schools.
AS a first step toward soaking up
the 1872 million gallons of alcohol
presently on hand (Which, Incl
dentally, is undrinkable) plans are
under way to make it into salable
gasoline substitute.
In coming years. beet growers will
gradually but firmly be induced to
try their hand at growing some-
thing more useful.
This is small first step, but it
sets the tone for the French Pre-
mier's efforts to revive his country s
economy. This is the greatest chal-
lenge he has faced so far-greater
than either the Indo- China riddle
or the European defense problem. At
the same time, it is unquestionably
the project nearest to his heart.
Above all else. Pierre Mendes-
France is an economist. In his
dream of rebuilding France as q
great European power, the revival
of Frances archaic economy is the
one really indispensable first step.
1t is not merely the yen of an eco
nomic theorist to try out his ideas.
Two, Fundamentals
Behind every move that Mr.. Men,
des-France has made SO far two
fundamental ideas-one might call
them obsessions-have dictated his
policy:
. Militarily. politically and eco
IL
to earth. The illusions, which both
France and it's allies have cherished
so long, must be dispelled. Pride
and promises, says the Premier, are
the evils which had brought France
to the verge Of national and inter-
national bankruptcy.
. In order to survive, France must
compete. To compete, the French
economy must improve and expand.
The competition is not limited to
struggle within the Western eco
nomic system. AS Mendes-France
sees it, the greater challenge to
Frances survival comes from the
other side of the Iron Curtain and
the new emphasis on improved liv-
ing standards within the Com
munist orbit. French Reds are eager
to show what they can do with the
French economy, too.
This, in the view Of the present
French government. represents q
greater peril to France than the
threat of direct military action by
the Communist side and colors the
whole approach to military and
economic policy.
These two needs-realism and
NEUTRALITY-SUSPICIOUS. presented
to the National Assembly last
August.