FRENCH ARMS SPENDING

Press, Volume LXXXIX, Issue 27191, 7 November 1953, Page 7

FRENCH ARMS SPENDING

Cut Of 10 Per Cent. In Budget (N.Z. Press Association—Copyright) (Rec. 7 p.m.) PARIS, November 5. France’s military budget for next year will be cut by 10 per cent, on this year’s, the Finance Minister (Mr Edgar Faure) confirmed today. He told the National Assembly that military spending would be limited to 1,110,000,000,000 francs (£1,140,000,000), but the civil budget of 1,609,000,000,000 francs (£1,652,000,000) would represent a slight increase. The figures announced ‘were the final ones accepted by the Government.

Mr Faure said that in drawing up the Budget the Government was guided by three principles: (1) To - increase capital investment relative to non-productive expenditure. *

(2) To maintain total revenue without increasing taxation. (3) To reduce the Budget deficit to an economically justifiable amount. “Prices Too High” Prices were too high, not only for the purchasing power of the French working class, but also in relation to foreign competitors, he said. Mr Faure said the reduction in the military estimates was made possible by additional United States aid to Indo-Chiha of 385,000,000 dollars (about £138,000,000). Mr Faure added that if the 1954 deficit could be limited to 650,000,000,000 francs as he proposed, economies totalling 30,000,000,000 francs (about £30,600,000) in the civil Budget would have to be agreed to by the Assembly within the next three months.

Calling upon Parliament to pass the Budget before the end of the year, Mr Faure said any attempt 'to increase the deficit beyond the total allowed for by the Government might be fatal. Next year’s revenue estimates were based on the assumption that national production would be increased by 3 per cent.