FINANCIAL AID TO FRANCE

Press, Volume LXXXIV, Issue 25609, 25 September 1948, Page 7

FINANCIAL AID TO FRANCE

BLOCKED AMERICAN CREDITS FREED

USE OF MARSHALL PLAN FUNDS

(Rec. 7 p.m.) LONDON, Sept. 23. Messages from Paris say that the Economic Co-operation Administrator (Mr Paul Hoffman) has agreed to release blocked American credits to France amounting to 125,000,000,000 francs. This concession will greatly strengthen the financial position of the new French Government and provide it with reserves with which to grant the French workers wage increases and take other measures.

It is expected that the money will be released in regular instalments beginning immediately. The first instalment, which is expected to total 30.000.000,000 francs, will enable the French Treasury to meet its current obligations and to proceed with its plans to modernise and re-equip French industry.

Reuter’s correspondent in Paris says: “It is understood that the French Government is drawing up a plan for the use of Marshall aid funds which it hopes will bloster its ‘save the franc’ programme and quell labour unrest. “An Economic Co-operation Administration spokesman said that the plan would ask for approval for a detailed list of projects on which France wants to spend the French currency she has built up against the dollar aid received from the United States.’’ The Economic Co-operation Administration to-day authorised Britain to buy 11,500,000 dollars’ worth of aluminium from Canada with Marshal Plan funds. The authorisation followed Britain’s announcement of a redoubling of her production and the reports’that Sir Stafford Cripps had discussed with the Canadian Government long-term arrangements for the procurement of strategic materials. The Organisation for European Economic Co-operation has stated that the Western European countries taking part in the Marshall Plan can reach economic equilibrium by 1952-53 only if they make substantial structural changes in their economies. The statement asks the participating countries to supply data for a four-year plan for Western Europe. It emphasises the need for a considerable increase of production in the participating countries and their overseas territories,

and a more intensive use of the resources at their command. The United States has requested Britain and France to stop the dismantling in their zones of Germany of all plants of the type which may eventually be included in the final plan for curtailment of reparations shipments, which is now being drawn up by Mr Paul Hoffman. It is not known whether Britain and France intend to comply with the request. Both countries have previously objected to Mr Hoffman’s proposals.