Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-06-01

between France and other ma
tions within the North Atlantic
Alliance.
The hope is that Gen. de
Gaulle will use his strongman
position to reform Frances un-
stable parliamentary system,
solve the Algerian problem and
do all this without endanger-
ing the pattern Of French
American British cooperation
within the framework of NATO.
The impact Of the French
crisis and Gen. de Gaulle's pol
icies on the future Of the At
~lantic alliance and Western re-
lations with Russia probably
will dominate talks scheduled
here soon between American
and West German leaders and
then between President Eisen-
hover and British Prime Min
lister Macmillan.
Heuss Due Here
German President Theodor
Heuss is due here Wednesday.
accompanied by Foreign Minis
ter Heinrich Won Brentano.
Next week end Prime Minis
ter Macmillan will come for
round of talks on negotiations
with Russia for a summit con-
ference, on sharing United
States atomic weapons secrets
with Britain and on proposed
negotiations with Russia on
suSpending nuclear tests. All
these questions will have to be
considered in the uncertain
light of future French policies,
Evidence of how potentially
dangerous the situation is was
found today in dispatches from
Europe TO the effect that
Frances economy is bordering
on bankruptcy. These reports
took State Department officials
by surprise and some felt the
situation could not be that bad.
French diplomats, however,
confirmed that the hopes held
for Frances financial recovery
last January have not been
realized. In January the United
States Joined European allies
and international agencies in
arranging credits and assistance
valued at more than $685. mil
lion. That was supposed to get
the French economy back on
its feet, but evidently it has
failed.
Immediate Result
The immediate result of this
failure, it was agreed here,
would be to cause France to
cut back on its cooperation
with other Western allies-no-
tably West Germany, Italy,
Belgium, the Netherlands and
Luxembourg-in creating a.
tariff-free common market in
Europe at the heart of the Eu-
ropean free trade area.
A French reversion to eco
nomic nationalism could be a
deadly blow to hopes for a
tighter indignation of the nom
Communist countries of Europe
in all fields, but particularly
economic. Many American Off
cialS are convinced that the
future political organization,
and indeed the peace of Europe,
will be largely determined by
this effort toward indignation,
with a declining emphasis on
nationaliStic interests.
The coincidence of the A.
nancial squeeze and the politi-
cal crisis is extremely unfortu-
nate. So far as Washington
can judge, the combined effect
is toward a resurgent French
nationaliSm.
The hope here is that Gen.
de Gaulle will use his prestige
to put through constitutional
reforms which would strength
en- the executive side of the
French government and limit
the powers of Parliament to
Illustrate executive action.
United States OFFICIALS hope
also that he will seek an end
to the Algerian rebellion, per-
haps through some kind of
French union formula.
Authorities Insure
However, United States au-
th0rltleS are insure now QUICK
ly or decisively he will act, par
tlcularly on the Algerian situa-
ton where his backing among
inSurgent military leaders and
the French population gave him
his initial boost toward power.
Far more worrisome as an
allied problem is the financial
situation which is related to
the Algerian problem and, in
fact. largely created by it.
France has been using close
to half a million troops and a
billion dollars a year to carry
on the Algerian war. This is
cutting the French contribu-
ton to NATO defenses to a
minimum.
Apart from this threat to
allied harmony and western