FRENCH RECONSTRUCTION

Otago Daily Times, Issue 18766, 20 January 1923, Page 10

FRENCH RECONSTRUCTION

A VAST ENTERPRISE. MERCANTILE SYNDICATES. (Fbom Oor Own Correspondent.) AUCKLAND, January 19. A defence of the Frencn policy ot reconstruction was made yesterday by M. Jean Gnauvel, of the French Foreign Office, in a lecture. ''Some people hod said that Franco spent money without counting it as reparation, thinking that it did not matter because Germany would pay, ’ At. Uhauvel remarked. ‘‘All the work of reconstruction has been eoiiduqter along very rational lines', ’ lie declared;‘'lnstead ot rebuilding old works with funds received trorii the Government, textile manufacturers hud formed a. kind ot syndicate to build large factories well situated lor the same amount of money, lliey had a much better organisation and were able to reduce to a minimum their cost of production by reducing their expenses. "There existed before the war in the oast, of France, in the region of Fourrnies. an ensemble of 25 firms representing 560,000 spinning machines, all at work. At the armistice period these factories were nothing but a heap of ruins. The manufacturers decided to pool their means and formed a vast joint stock company. They re-ostablishecl the less injured and the better situated works and specialised each factory in the production of different kinds of thread. At present seven factories are at work, representing 150,000 spinning machines.” Referring to the mines and metallurgical works of France on which a special effort had been made since the recovery of Al-sace-Lorraine, ho stated that they had become the most important factors of France’s prosperity in the future. The coal mines were in the north of France, and the ore deposits were in the east. During the war both these’regions -were occupied by German armies, and France's production of coal and steel were perforce reduced to a little over one-third of the pre-war production. It had been said that one of the biggest victories of-the war was won by the French metallurgists. Amid terrible difficulties, including the shortage of coal, ore, and labour, they had put down new works in other parts of France and started new production, and they worked for the French army. They supplied this and the Serbian army completely, and the Russian and Greek army partly, with rifles, machine guns, heavy guns, and ammunition. They supplied the American army- with all its light artillery, and an important number of big guns,'as'well as suppying the Italian tumv. After giving details of the reconstruction works, ho continued : "All the work on reparat ion we have done with our own money. The 1 Germans paid almost nothing of the money due for reparations. The French Government had to raise it all and to make a large appeal To the French public. The Government has to pay the interest on the money thus lent to it. This can only be done by increasing taxes . and impositions, or by borrowing now money to pay the interest on tho money already borrowed. By this you can judge that when Franco says that she needs the money Germany owes her. she has very good reasons to say so. (Applause.) Up till now France has spent £650,000,000 on her reparations. Jf you add to that sum the money spent on pensions to war orphans,- war widows, disabled men. etc., you will find that the total sum spent by France since tho war and as a result of the war aujouffis to about £1.600,000.000. ' France did not wait for German money to start the work of reconstruction, and she will continue.”-—(Ap-plause.) ‘