ECONOMIC RECOVERY IN FRANCE.

Hawera Star, Volume XLVIII, 1 November 1924, Page 10

ECONOMIC RECOVERY IN FRANCE.

BRITISH; OFFICIAL REPORT. The belief, that France is trying to obtain from Germany a commercial treaty securing special treatment for Lorraine iron and products, and Alsace textiles, , together with, a measure of control over the Ruhr, lends special interest to the report by Mi’. J. R. Cahill. Commercial Coiiiiseildr to the British Embassy in Paris, issued by the Department of Overseas Trade. It is well known that France has I Worked very rapidly in restoring her devastated mines and factories, and that this reconstruction is virtually complete. For example, the- damaged or destroyed collieries in the warswept area, which yielded 1500 tons only in January, 1919, yielded last May over 1,260,000 tons. Further, the. .average monthly production of coal throughout the whole country has advanced from 3,918,000 tons in 1923 to about 4,765,000 tons during 'the first half of the current year. Coke is the fuel that France chiefly requires from the Ruhr, hut while she is anxious to make arrangements for a continuance of supplies at reasonable prices she has not neglected to extend her own output as far as possibe. In this she has succeeded to the extent that her production, is now about 5,000,000 tons annually, or nearly 2,ooo,ooo'tons more than in 1913. If, in addition to these augmented resources at home, she can ensure cheap supplies from the Ruhr for a prolonged period, her steel works, and with them her metallurgical and engineering industries generally, will maintain a very strong position. . . With regard to coal, it is not generally realised to What extent, France is likely to become a less important customer of Great Britain. ,The augmented yield of her own mines has been aided by the installation of the most i modern and efficient equipment, the utilisation of which will have a progressive effect on the yield. Mr. Cahill in his report estimates that home production will increase by ten million tons a .year. Simultaneously the need for foreign coal is being reduced by the extension of the use of hydro-electric energy for power, traction, lighting, and heating purposes. . In the French districts nearest to Britain water-power schemes are very numerous, whilst the ParisOrleans and Midi railway systems, which have been large consumers of British coal, will in two or three years’ time have completed the electrification of large sections. It will be seen, therefore, that if, coupled with a steady diminution in demand, British coal exporters have to face increased German competition, their prospects for retaining a very profitable outlet will not be bright.

If France obtains special treatment in Germany for a further period for the textiles which she sends thither from Alsace, it is likely that both Manchester and Bradford will be affected, because both the cotton and woollen sections of the French textile industry have developed greatly since the war. Exports of cotton fabrics were 44,700 tons, value 1,451,000,000 francs, in 1923, against 55,400 tons, value 385,000,000 francs, in 1913; and exports of woollen fabrics were 25,400 tons, value 1,330,000,000 francs, in 1923, against 23,400 tons, vakre 220,000,000 francs, in 1913. Alsace brought to the French cotton industry an addition of 1,900,000 spindles, 40,000 looms, and 156 printing machines, .and the total French production has now overtaken demand; export outlets are consequently keenly desired. ( In the woollen branches, Mr. Cahill says that the net result of the changes due to the war is that the industry has refitted its formerly existing or its newly built factories with the most modern machinery, has received the ac_ a million spindles and (000 looms from Alsace, lias seen theuprising of new factories, has increased its range of production, and accordingly emerges as a greater force and contmns greater potentialities in 1924 than in 1914.

So far as the present economic situation admits of definite conclusions of a permanent nature, Mr. Cahill’s view is that "Franco is strengthening her position as an exporter of raw material and of manufactured products; she is endeavouring with success to free herself from her dependence on foreign production for many raw materials for.

her agricultural industry, as well as for manufactured goodsj and her system of production hag developed as a whole as a result of modernisation of plant, greater size and combination of units, better competition of foreign trade, and improved organisation in the staple industries, in a way which has almost brought her abreast of the principal industrial and exporting nations.”