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December 19, 1960
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FORM NO. c RI MAY 1949 COUNTRY France SUBJECT - 25X1A ApprergiSgrCRInse WI% CIA-RDP83-00415R006900230002 CENTRAL INTELLIGENCE AGENCY REPORT NO. INFORMATION REPORT CD NO. Transmittal of Publications 25X1A PLACE ACQUIRED DATE DISTR. 19 December 1950 NO, OF PAGES 1 NO. OF ENCLS. 2 (51 pages) (LISTED BELOW) DATE OF INFO A.,,moittregm VA 1.1 * .Y I. W. ??1JC 1?N ? HI ??' ? 25X1A SUPPLEMENT TC25X1A REPORT NO. WW WM. go ? SOURCE The attached publications, Macnens and Commerce in France, are being sent to you for your information and retention: Attachments: Macnens - 10 November 1950 (11 pages) Commerce in France - 15 September 1950 (40 pages) lit3-11117Mis is a...1g. ApproveV C0k or Release 2001/09/10 : CIA-RDP83-01?atiumEa00,02-8 ?L 4,,r-vice for news and trade papers, published weekly in Paris Frankfurt and Berlin ACNENS John Mac Nair's European News Service 25X1A 14 Paris 10 .:ovaabo!r 19f.;0 FRANKFURT room 117, Industrie Bldg, PARISm 6 56 rue du Fe. St Honore VIII .*T61. ANJou 19-00 52fTrLunusstrasse Tel. 3.2438 "Philipwhit Paris' "Whitcomb Presscenter Frankfurt" BERLIN room A 207. U.S. News Bldg. Argentiniache Alice Zehlendorf Tel. 80.40.16 "Whitcomb Presscenter Berlin tPYRGHT What Do They Mean bv "Tou-(,oiloan Amy" ? ? ? -0 1 Germany 1950 2osemb1es a rov of Fifteen p 3 Make Your Own Cements ? n 4 30 '11;11 ? P 5 HAY_ P.4.?Y;Y:. P 5 European Jigsaw P 6 -German steel output -The new Polish Zloty -The international organization of white collar 1,,orers -Tho Food and A7ricu1ture Organization -A change in tbo French protectorate over Morocco. ...Lost of. the 1,3 Gernan atudonts -13 German Thaiinc crews -The Gorman votor,s o)inion on re-armamont -Sub ti rTbr.nrr 6CM-Vor--6. r oi=d-ed: e7S-Iii6:-13W?-.Tii.j.17..ils-Fir-laT -'66-FiqaTtWa?fo- Ma mono (if written by Whitcomb it may e by-lined 'by Philip W. Ahitcorf our special European Coes,.)endentl, if Preferred) and payment made at usual rates, at the beginning of the month following publication, to an Amorican ;cross Co office for credit of Account 711, American :Clcoross Co Frankfurt el.r:t Zone." S-oecials must be ordered from tMacnonst Paris or FrainlTfurt of-fco fc*Tritl.-7, an:A trarviraioopri..ind,icrAecl._.. ?hat_De_They Mean by 'European Arme? by Philip W. '..hitcomb (Macn en s . - It is easier to see what the talkers and planners of Europe and the United atates do not moan by the alcpression "'Auropean Army" than to be .sure of '(rhat they do mean, They do not moan a repetition of anti-Napoleonic combination or even of SHAEV. Nearly all of the multiple military-%lliances of the last two centuries have produced conflicts and bitterness aLlost as serious ir their offocts as the evils ezainst which the alliance was oriinally directed. nven during the SHARP 1,)eriod there were unhappy tolisions and outright disobedience. Details of some of the incidents which involved Marshal Montgomery have been published; of other incidents the full facts have nem: been made 10 Nove= pre ApoverRelease 2001/09/10 .,?PIAFRDP83-00/ESTRiente02-8 p 1 - Appprovecl-for Release 2001/09/10 : CI Imovm4 (1Lobo(li.T.Me 11,,I.,.Gonoval Do Gaul to the 07:1,licit -?orerS_of (.7roneralnhower rocordod in the Paris ovoniuv np; nowy>aper Lo Londe, a cou-uo of 7oo,rs, afto to,.e.end oftne ? ? Most tixopeans and soto Anoricann have 'been invoiyed in tese tonsiens to soch an e;:.tont that fewiftheal in using the term 'illure.oean AZ-lcry mean one of those coAbiations so well1:ne7q :),Jto1:7 in v,nich each country retains its indopondence . and,?without sayi so, rosorves In its own thol:L7hts the riht to - - disobey at_ny?-meint. . . The recent damnd b7 the French Prime. Mininter,.for tho.incomoratio-A of German .units, not too laro sic,) in a 7017.-opcan.Army, vas evidently political in its 7urposo and not based en the rocomvaendations of French Jar Ministry. No detafls wol-e_given as to ho'q the 2uropoan Army an a whole was to bo forad. If. the French. Pr.ime iAnisterls state- ment woro interpreted litorany it would mean that anew hind of ara7 .Mri at least from to 7)01nt o'f view .- would be formed, in 'Thich the citizons of different ceuntrics wealid bo in much the SaTme relation to each othe as are the citizens of the different -states of the United nates In the American Army. It in il7orobaile that such was Mr. Pleven lo oinal intention; other indloations are that ho meant at first that FrenCh, Italian, 3olgian, liollandish, and 'perhap6,Dritish divisions under the cImaand of Divisional Comuanders of the same nationality shouid. each include ono or more small German units liut the fact that the German Prime Ministor, Dr. Adonauor, has re-lied with a clear statement on the sam subject suTTosts that the first, and mco lo7,ica1, interpretation of the French proposal may adually 'income ada,lted, Adenauoris statement wan ty-)icaI of the traditional Gorman attitude as much as it was of his own or n? character, reflecting as it did an emphasis on dinity and pr:stigo before all other oonsidorations. . "If the Federal..aepublic is to 21ate troops at -the disposal ot an American-34ro:2ean Army," Dr. Adenauer said, "there must be a basis of coplote equality between the Gorman troops and all other troops. We will under no conditions share in such an army e::.eopt on that basis of equality." In mport of the idea that nothing resembling a separate army will be accepted as the German contribu- tion, two. facto have been cited ro-oeatedly in recent discussions. The first is that after _each of uovoral wars the German rpvernments of the. day have. solemnly assured the world that they would never again bocoe 'involved in what .could be re3arded as agrToosion. or acts Of rdlitary cononest. yet acts -which,. other countries have regarded as.agonSivolloriod in each. case. The second fact cited is that in the last tar() wa:;2EI the C7rerman. roncraJ. L;taff, and Ger-man generals on b.1.,7.1vc.ifJ, thouh a%Yoarontly boling.vi0;o;7y in their hands on $(\r5anl ccasicn ended in surrender or ow:4tulation.. It seoin4 10 No.v0113.1),8.iikpri.kyoM For Release 2001/09/V) -RDP 2001/09/10 : CIA-RDP93- . . _ unlilz*lY.that 'Icopean countrionA t 'ilh.olo_wculd. care. to errupt . their?safetT.to_of'ficers.,:iith rocord/ bo7ever.brillint_may be tho la:cat.ono f:07 tho other hand no .ZUrel,,2ean.7ill.queStion the bravery and the erficioncy of the Gerr4an?.:77r:i-vt6 Selier, )1.on-colssioned,efficer,:er effiee's up to 6ttlinr:;.lic division .1vel. In Korea, oven thoil...r0a firri;few ..:Aonths of .th. . . . . .?docTor...o.t.io7.1,!.2, of frr)--,A0 _ . . . . : . . 7,.7,la.r.s.te a de can The success or the eor,113:J.ned er)eratien tho corlbnaton was not a very Iliac ono in the at acton, is :.,)neeura-,inm r:Atroeans to .hope that act 1)0305110 a reality, Should no Counter- Mj,nter Pleven and Pine Einistor Adenauor brinc5 i.6;_oc:ft, the ,;(...utiori may be an army as truly SI;d; os arry io Ai riean, ?4? /1??? 4,1 .41 4 40 ? a Doy or li'...ifteon Ly Nandc,11 FOSS (Macnons) ' Munich, Vevember.. Two opposing thoughts dominate the political thinkin!7 of the man in tho German street today. The contradictions in those two linos of thourA.1t make oiItica1 talk oven, less than usually clear. The:first thought . perhaps botter described ap.a.MaSP pf Peolinm . is that .the ordinary man doe6 not want to get back into uniforn in any kind of a revived. German army. To borrow a3'.a.15hic street o=onsion, "his ..nose is full." of milita- rism; he doosnii: w771.nt-ati- noro. Thc,:(7) is a .strango.kind..of. irony in the fact. that the Socord:ZoIld. and the erfOrtP of the Allies since thb.wa. hav so ofti7nIy ,.:les)c;:coyer1 the love of Military, pomp that. now, who:D. :Ja.P.7 liLe to coo a (1.r.12n. army as part or2.'Urol.)0's defense rellIctance on the part of tbose who must fill 17,].:10 Tho second mass of tanmled feelings revolves arol;n0, the paral7zing rear that the 'Jet may have arakenod to tbe OV1O .6.r.,nor too late, v,Cho lie,)orts from Koroa of feeble Amerims can m(1 od ITation rosJ.;Aanco ar.;ainst tho North Korean Commnists has .conVThcod r1cr7 flat a sf711-11r attack from eastern Gprman7 would be eo.uafly suoonprul in mr_orrilnnj_ng all or nest of western Germany. And the orainar4T linows of no rc7_1 rear!on why the eastern part should not try ameL ;]cycAo soon day. The com7llicated Analyses of Soviet ,autTsiats inner difficul4es and 01 the learned writing about how ..311.saia is not yet ready P.nd cannot bo :fleaj:_y for about trro years .to 0,o7Le leave reador .-;'d rs 6)Ay no6s that there iS .Z,,ttMe rf:t?.7, .r.)()aeb caid lii ),.:JL1 done to correct .LKis weakness ft.t O No7rY.liber 19F") Approved For Release 2001/09/1q : CIA- E0 For'Reiease 2001/09/10 : CIA-RDP83004 111110, the ordinary oitiz,on of wentern Gorlany fino.o damandinri that somebody do soAothing to mond tho do1701100L) and in the oamo broatidoclaring that ho 11,rsonally, doos not want to don a uniforM Somo, obsorvers attribute thin con- tradiction to tho fact that Germany is not a sov,)reiln nation. or noo than fivo years now thoro have boon restrictions imosod by the on dormn Political docisions. And -hilo no ono soriously quens the necessity of Allied controls on the remainn of Ilitlerts .oich, it is nevortheloss true that a SOn30 of daaocrtic nJP-ollstbility doe;, not 'row whilo someono olso to makini); the doci- Pieno, 'Germany is like a boy of IS or 13 oar) win.so1P-detdruination and at the eare.time ha..Tyy to shove ?all d.l161.7:1,t.and 0:it'6Onsive decisions off on to father. And like boys t4f1, Wantin!i; 'to bo supllortod and ,irotectod.bUt not wantin!7; to ? be 1LaIt0d in his 6JOi.oeo. by Iho 'idea that ilfathor knows boat." Bope- oiall:y when he. Sobs -father getting Putbed around ? in a yilinor hra'A beeauso father forget to hoop his knuOi:le duotorol=dy, ? 1140110W taal:o Your Own Commont PoUr cr.)onin7,s- for dovor quipstori offerod by John Maellair In twolvp of 0:16 20 countrios renorted on in the ":!eekly Bulletin ?of the International Conioderation of free trade unions for 22 se,-.) 50 there ,:,.ore official domands for waro ineroases. O000 "Dlr dear comrade Maurice Tborez? sufforingl has had to interrupt hi 9 .or several days' (Humanito? French Communist daily, 220,000, p 1 11 oot 50) O 0 0 0 The loadinr, article on p 1 of Humnpit4, French Commaist daily, IT Oct 5o, Woit.W007 down with thj dirty war," This pago carried the now that out of 5,000 aoldiors and GOO civilians who thould have arrivckl after tho r9troA from the Indochinese frontior attacked by Communist: only ldo survivors apnoared. O 0 0 0 A return to tho 1915 Euronoan stool Iroulpinc, with Lorraine, Saar, ?Lux7:,ourg, and 'Ruhr stool under a Unitod Control, together with Delijian stool,' as provided by the Schuman-Monnot plan, is a pre- requi;i:ito to the organization of 10 German infantry divisions, accord- tc a French Govornmont official viow. A second prerequisite, in lc 0inIon 6r the aamo authorities is that Prench military strength, blV:1 in ottomont and in numbers of mon must be hopt well ahead of i.hL,ec? r ---- " - 1 0 O000 IESTRICTED 10 1TovombA5pi.64A, For Release 2001/09140V8A-RDP93-00415R006900230002-9 P Artproved For Release 2001/09/10 : CIA-RDP83-00415R006900230002-8 "S?_,Thov. Say quotations nrow OD wIlat RESTRICTED are thinking "The real tra of modern marrialte is tat tho movont the man allows his wifo to filch his suorierity from him he loses his W.f.. rospoct; and from that -aamont no zarriago can be said to be at an enda J.S. Chamonix, Franco, in a 1J)ttor to the Paris Daily Mail. O000 "The Americans boliovo that onlr the officors of to old Wohrmacht can orgaw.zo European armies for the attack against the East". - (Pierre Courtado, Editorialist of BUmanito, French Communist official daily, 220,000 ciro.) o 0 0 0 "If Mr. ChurChillis aevice had boon tal7on 5 yit[nns ago we should have been that much further forward, and in this vital matter of European defense., time is not on our sido." Brigadier General G.J. 5myth, V.C., M.C., British Lombor of Parliament. O 0 0 0 "I know it is hard to bailey.? that the commuilists are as stpA as they sem, but in fact their stupidity in pant belief. They havo nothing in their favour but ruthlessnoss and Woctorn foars. This is not enough ?.unless the Wost continues to bo afraid." -- Dr. Ernst flouter, Mayor of Berlin to Edward Crankshaw, nov 150. O000 MAP DIAnY 27 October - 7 November 1950 27 oot 50 Fnch conscrip_tAon. Prolonged from 12 months to 10 months; exceptions formorly amounted to about 72,000 each year now cancelled. Of the oxcoptions 56,000 had boon for rvanny reasons, 16,000 for occunational reasons. Another 02,000 were refused each year, on the average as unfit. 20 oet 50 Count Gerhart lchwerin resigned as .;ocurity Advisor to rilmo VinIstWr gd-onavior of the Bonn Govormont; resigna- tion bad boon roquoctod on grounds that 5chworin had made militaristic pro )osals which ho had no authority to make, for the formation of cfmleto Gorman divisions. 5 nov 50 Rooimontal co that; teams_ may he suggested to French and 0 1676711EX?eib:ralialY authorities as a solution of the rronch -001itical domand for a mixed European army without largo national units. 7 nov 50 Siro lios for tho U.S. Axially in EUranp. will soon be delivered In paif through to FrenchATIET1lic ports of Bordeaux and La Panic?, as was IlrovisJ.onally arranged last year. French F-,)rojLp Office sz.ys that no American soldiers will be allowed to tako in the policing of such movements APPKVecMcfriRefiaa-tb 2001/09/00.1CIAARDPS, ofk, 4i :41 1002-8 10 Novombor 1950. V 134 p5 Approved For Release 2001/09/10 : CIA-RDP83-00415R006900230002-8 *IpelecenjAnApg ilfSTRICTE0 by PhiIipW, *leitea,eb. ppyrIp.n steal autvit is running at nearly 14 m tons -mer year end will robabJy b'S.7-W:Mgrsteadily in connection uith rearmament proeraiirees of Atlantic Pact nations. nritish steel cee-eorte in the nub!: in 1945 tee or three Aonths after the end of the fie)rtine eaid that little effort. would then be required to enable Germany to e)reduce 16 m tons a year from O000 A eha a in the Prmlph rrotootorato over Morocco SOMAS inevitable and was proSalitTrOde145derinr; nti'posti-OP-Vbe io c nt visit of the Sultan of , ?recce to President Auriol of Prance. Tho Protectorate was established in 1912 by a treaty to which United States wao not a party. In its broad lines th: French po3it-J.(1a is that liorocco should become a demecratic state, indeeemdept, but lin ed to the leeench Union, preforably as a =ether. Tho attitude of the -present .3ultan is eft:ea to be based on the idea that bo should be a elorsonal ruler. Tho idea of -versenal rule, aflelied at ?)rosent, for exan.-)1e, in Trans- jordania, is said by the Jultan's eup,orters to be Ilore euitod to Mohamaedan rays of thought. 0000 The 11014. Polish Zloty is to be based on 0.222160 emes of fine gold aild the value is supposed to be equal to that of 100 zlotys in use earlier in '50; date of channo-ovor, 50 oct 50 to 0 nov 50, O000 The international organization of rhite-collar workers is to be 9.1mprove4" by a oonference under the aus,pj.cos of International Federal of 55 Trade Unions, in Bruesols earlier in '51. O000 Most of the 46 German students, with an everaeo aeo of 15, who sleent a year in the United States in homoe chonen by the Drothren Service, aereed on their return to Gormany that American schools 7ere like life or play, and not like German schools. O000 /5 German whaline crere forbidden by Potsdam to sail under the Gerian flag, loft kiel on 20 oct 50 on whalers bearing the Panama flag. O o 0 0 The rood and Agriculture orlanization of the UN will have its permanent headquarters in :tome. O 0 0 0 ?The Ge!,:plan voter's oninion on re-armament began to be talked tout c GOrMan :00iffiCalrEarera *do not welcome sug,Tentions that particular subjects should be referred to the ,ublic by moans of refer- andum and in fact it is imerolx,ble that much could be learned through such votes. The German citizen likos to believe that ho is deity; his duty by being loyal to one party and to the decisions of that party's committee, regardless of the fact that these committees are in effect self-eoeson end not tIncler no control of the voter at large in any way. Nevertheless this ifloa of findine out what the nubile wants in re- armament beeamo jmereasenely nopular throueheut October. It gave lenders a way of escapine from the consequences of their 'Irevious rigid declara- tions, Th.CARPirteSKATtRielfatetaMigoirkW :43A-RERMID415.1a0Cift900600.1124clint3 of seitable verdine ane III0OG advisors do not agree that it cu? to leave tbo wording of such a question to the politicians. IlEgaillififtil Published weekly by, and world copyrighted by, founded 1932 DA AtermEctISRelease 2001/09/1 (John MacNair's European News Service) SKIMIRIALPHABETICAL Bureau 6 : 56, Faubourg St-Honor?Paris(8e Tel.: ANJ 19-00 Poste 6 ESTHICT I h. M Bureau 117 : 52, Taunusstrasse, Frankfurt-s-Mal I Tel. : 3-2438 ? igs Leeci 25X1A 483 ERUSEi:E ED II CT F*11 09t0i)er 0,; CO Aluminium houses for Pakisten ordered from the Aluminium Union td., Nngl, will be shipped to Karzehi in oct '500 ustralla needs television equipment, which is not made loally sufficient uantity. A television network is to be established oon. apaajaelaLJELtzmi (3 to 4 hp) are selling n quantities to mantifecturers and merchants, who use hem to generate emergency electricity for shops and olrooms, os small art in Sen Salvador's cement imports (30,894 tons in '49) from Belgium ? r,883 tons, Denmark 7,002 tons, Sweden 5,716 tons, SA 4,326 tons and Italy 3,711 tons, disproves the dee that US products are always priveleged in entral America. tat oi extraction in Br 1 by the Industrial Company of Bituminous ocks has begun at Pindamonhagebe (Sao-Paulo). teresting by-products are s 32,000 cubic meters t gas per day, 500 tons per day of benzine exchloride, an insecticide used extensively by offee plAnters. ritpin kap4ot planned co_al esports to both Sweden and Denmark for the 3rd arter of '50 by 2501000 tons and may curtail other xport orders, to have enough to supply home needs. e present stock is 1.3 million tons in oct '49 t was 16 million tons. A total of 690,000 workers ow employed in British mines is less that that t190. dies coke outpq is increaseft by 1000 tons per da by a new Indian Iron s Steel Co. installation at, Hirepur. Aluminium AA 41u5.01 tile CON' 10.29 11 oct 50 Nustralia 483.02 rile POW 15.09 11 oct 50 Ument 403.03 rile CON 20.81 11 oct 50 1!;lbemicals A 1,04 tile HE 10.08 11 act 50 oal 3405 ?Ile RAW 31.83 11 oct 50 .06 le AW 31.99 11 oct 50 rren Controls for Americans (declaration of holdings) en are no Unger required t French ports, nor when exchanging foreign Currency lo 30.51 r francs. 50,000 fra may now be taken out of France. 11 oct 50 REST RIOTED HOW TO USE SA VOIR-ALPHABET/CAL ? Subscribers receive 2 copies. First copy: Pile chronologically, latest copy on top. Previous items on same subject may be referred to after the word!' See " in right hand margin. Second copy: Clip into paragraphs and file by subject according " icy"" sliAppievisdtkniciRtgene 01041Ef91113 t5thlt-1401*32iffiglthbalotig N-Tes. "THE WORLD'S MOST CONVENIENTNEWS SERVICE" Approved For elease 2001/09/10 : ' 483 3.3. October 3.950 import more s workers? ckthing cotton and woolen yarn and clothing, ties, jute bags, butter cheese and, dried vegetables, as a step against inflation, and to bon exports on some products on which a shortage in Prance ,Would, increase home prices : cotton yarn, scrap metal and paper pulp. France suspended duties 1 oct 50 on Cotton cloth, cotton, wool, jute, hard fiber yarn, jute bags, tires and jhoes. , 4 ALWest-derlaiaq4lrekil agreeMent provides for the exchange . 175 million worth of goods 15er year German medhinery, edtomobiles, road making equipment, serving machines, tools and textiles for , Brazil's coffee, wool tobacco) raw cotton and hides. _ , An Anglo-German trade pact 1 oct 50 by which Britain opens to West Germany ..01, her open general licence list and Germany offers 6 p free trade on foodstuffs, ran materials and many ) manufactured goods is expected to double German ye trade with tritain and colonies. Both countries have widened their import quotaa. Mat to Buy -in' Prance, 'Row to sell in ttA": this is ,the title and subject of a new monthly sypplement to be published With Commerce in France. nleich supplement will include full technical details on formalities Of licenses and customs, on methods of fibance, on transportations, and on merdhan- ' dizing. A different industry will be dealt with each month& tfs exports to Communist' areas 1,6se from $9 million in , oun '50 to $11.6 million . in jul 150. The Monthly average for jan-jun 050 was $7.9 million. US imports from these countries rose from $11.1 million in jun '50 to $12.5 million in jul - '50. The jul, 050 average is 37 % above the '49 month- ly average. ' A ocmeact garage for ,small cars, is a light metal case which fits exactly around' the car. It is lined with isothermic material and has meta wheel-guides on the floor which enable the der to enter the garage easily. Then the driver Oen step out through a side door placed exactly out- side the cat door. A French patent has been granted. Series': manufacture has not yet begun. A different 'model' will be made for each type of small French cars ?_4?i t tithelivid continue o e an4 Include trade with , - - e ta'et 2 -'664 d with other O an S areas Tres,. ,4e with the _East Zone was spspended tsst recently re loet? A. nevi"1 an - - year -agreement with Poland permits the Dewed. A ( con t ' d) ...* - . ?... ".Approved For Release 2001/09110,..-?C14-.RID.P-83.-00415R0069 ?? Eximport A 433.08 file INT 50.82 11 oct 50 glci1122211, SA -4-81.09 file DTP 80.84 11 oct 50 Exim ort SA 0 file INT 80.83 11 oct 50 ntimpo rt SA 4.1l file 14T 50.72 11 oct 50 Eximport ? 2 file LIT 90.81 11 oct 50 0 A43.l3 file AUT 30.02 oct 50 file 3.4 IJT 80.84 11 Oct 50 Approved For Release 2001/09/10: ClArRDPV-Q0415RQ06900230002-8 StillICTEI 483 11 October 1950 exchange of 273 m marks worth of goods -- over Mo in -- The agreement with Egypt was renewed for a non- disclosed amount. West Germany's adverse trade runs far beyond what the country could endure if it dit not have ECA and other American assistance; the jul trade deficit was 463 m and aug A28 m. German manufacturers, exporters and importers in general dislike the trade agreement system on the ground that though it permits the import and export of certain kinds of goods, it gives no guarantee whatever that these goods can either be sold or bought. On this point it differs sharply from the Schacht system. Particular complaintehave been made in the last few months regarding the "possie bilities" of the import of cotton under agreements with some South American countries; the trade believes that no cotton will arrives or very little. Irtk's plans for indUstry expansion includes a petrole- um refinery) a bottle and glass manufacture, a brewery, a flour milling estab- lishment, a general spinning mill and a jute-weaving factcry. Present ineUstry includes 2 cotton ginning mills, 8 spinning and weaving mills, 2 oil factories, 4 shoe factories, 5 match factories, 1 noodle and ma- caroni factory, 1 brewery and 1 cement plant. There_ are 20 19rick and tile plants, 4 tanneries, 6 flour mills, 6 soap factories and another in construction. Germany's iron-ore imports in '50 will be 4,6 million tons, of which 3.5 million will be from Sweden. Other suppliers are Spain, grezil and Canada* Germany's iron-ore output averages 650,000 tons per year with 27 % iron. gless.,_ele....setiLeszepzim, about 34,000 tons of it, and 2,300 tons of US electrolytic copper, which other countries are appar- ently unable to supply. No European offers have come through recent international auctions. on ess of internal combustion motor manufacturers :be held in Paris 8-12 may '51 coinciding with the Paris reir has been organized by the Syndicat des Construe- teurs de Moteurs a CeMbuetion Interne, Afterward, con- gress delegates will visit French plants similar to their own and will make personal =fleets. Reports will be made from all West European countries and from USA, where Diesel-electrie developments are of greet interest. Address inquiries to the Syndicat des Constructeurs de Moteurs a Combustion Interne, 11 eve Hoche, Paris 8 Irak S477483.15 file SEL 10679 11 oct 50 5A 483.16 see SA 482.16 file RAW 11.94 ? II oct 50 Iron BA 783.17 file RAW 11.86 11 oct 50 Motors SA 483,18 file SEL 20,02 I/ oct 50 RESTRICTED Approved For Release 2001/09/10 : CIA-RDP83-0(1415R006900230002-8 For Release 2001/09/10 : CIA-RDP83-08415R006900230002-8 iitTRICTED 483 11.oct 1950 Chtles exports of plywood, chiefly to Britain and to Argentina averge 4,200 tons per Year. Britain bought all of Chile's plywood surplus in jan-apr '50, Rayon manufacture is,paining in Australia: a Victoria province factory to dye and print fabrics will begin production in 2 years; a weaving mill at Launceston, Tasmania! another at Sale, Victoria are in process of construction. The first expansion of Poland's steel output set by planners at 4.6 million tons in /55 will be the immediate building of steelmills at Nowahuta, and the modern- ization of existing mills. 1 new sugar refineries in Germany representing an in- vestment of 45 mil- lion marks, partly by beet-raisers, partly by tCA will be built in Schleswig-liolstein, Lower Saxony and on the Main. They will reduce West-Germany's sugar shortage -- imports are now 450,000 tons of raw sugar out of the 750,000 tons per year consumption. West- Germany beet acreage has been raised from 30,000 to 180,000 hectares. 2.7 million worth of British-made toys were shipped to all world markets from 1 Jon 50 to 1 sep 50. la 1 million more toy exports are expected for Oct and nov /50. Most favored in foreign markets now are non-mechanical toys al 1 million worth) mechanical t 575,000; dolls and ,soft toys Z 353,000; pl,stic toys Z 290,000; and paper toys Z 85,000. Australia is the best customer(Z 1 million) with USA next (Z. 282,700). French ready made clothing for popular sale in retail shops was exhibited by men- bers of the Union of French Clothing Manufacturers 3:." their third annual exposition, Paris, 11-17 oct 50. Every type of garment was shown including a range si- milar to that offered by the haute couture of Paris though of course at far lower prices. Some exhibitors claimed that they could undersell similar lines in USA with designs that would be regarded by American women as new and distinctive. The postwar development in ready-made clothing in France is paralleled in the same lines in Germany, where before the war several houses specializing in rapid production had based their lines on Paris designs and sold in large quantities in USA. RESTRICTED Approved For Release 2001/09/10 : CIA-RDP83-00415R006900230002-8 Plywood SA 483,19 file RAW 20.8( 11 oct 5( flay on A 83.20 see SA 471.19 file TEX 05.06 11 oct 50 Steel SA 483.21 file RAW 11.16 11 oct 50 Sugar SA 483.22 fAle 1'00 10.34 11 oct 50 Toys SA 483.23 file SPO 10.83 11 oct 50 Textile SA 483.24 file TEX 30.02 11 oct 50 ase 2001/09/10: - 83-0 006900230002-8 IICTE machine 11 october 1950 the RS-7 - which takes all yarn-wool, mixed, cotton and rayon is now manufactured in series by Von Derschan, Oberkassel, Germany. 20,000 meshes per minute is its Boal speed. Circular knitted goods, stockings and underwear are seamless, ilautaliaa44.2z4coor.,:a are valued at ZIA 30 million per year. To increase home tobacco output, now valued at only ZA 4 million per year, the Agricultural Dept is backing extensive trial plantations on the tablelands of New South Wales, near the Queensland border. 2 reasons, for,ITS travel in Europe. are given by the ECA travel development section:- (1) 15 million US families have income bet* ween 1S3,000 and 461000 per year; (2) 30 million US citizens are European - born or childten of persons born in Europe. Advertising to prospective tourists was not seriously undestood'by par- countries. They had spent during '50 only 2 million dollars in attempt to persuade Americans to visit Europe; during the same period individual states of the United States had spent Z30 million to encourage taittists to visit them. One single city, Miami, spent as much in /50 as did the en- tire ERP area together. VeneoleWp textile output has been increased by over 6 million yards of cotton piece goods and 700 tons of yarns per year, now prom duced by a new 9,500 spindle and 200 loam spin- ning, and weaving mill at Boleita. Up priority on purchase of 1st quality Australian wool ' is said to have been granted at the recent London conference in return for a US guarantee to Australia of a minimum price fixed for several years, and US assurance to UK that British provisions will not be compromised. A US-Australian agreement provides for an increase of Auetralian yarn exports to Britain. Oct ,050 London auction prices dropped from 5 to 20 % below those of aug /50. ifillICTER Textiles tA 483.25 see SA 4/;2.25 file TEX 39.34 11 oct 50 Tobacco tA:483.26 see SA 482.32 file POO 50.89 11 oct 50 Travel SA 483.27 file TEA 00.61 11 oct 50 Venezuela SA file X 90.89 11 oct 50 Wool g1783.29 file MX 12.71 11 act 50 Approved For Release 2001/09/10 : CIA-RDP83-00415R006900230002-8 CPYRGHT Approved For Release 2001/09/10 : CIA-RDP83-00415R006900230002-8 A meeican C ',umber of When you travel by S ADEN A, Belgian Airlines, you not only gain considerable time, but you profit as well by these advantages offred our passengers: ? connections assured towards EUROPE, SOUTH AFRICA BELGIAN CONGO, PALESTINE, and NORTH AMERICA. definite scat reservations (at no extra charge) reduced formalities meals with service on board at no extra charge your luggage is well guarded for you NO HIDDEN CHARGES INFORMATIOIsi : SABENA 37 rue Caumartin ,.;_? PARIS 9 ? OPEra 28.40 AND ALL TRAVEL AGENCIES WILLYS SEE AND TRY THE NEW MODELS jeep' 5tathAT Of0# jeepster Distributor for France S. 0. F. I. A. ommerce In France ficotl Monad, Bulletin .1o, Metul,ers , A venue Ge ors,- 17, loris - But oi NH bureau and Adoert;s;ns.: - AN./ foot The Month in neo-Airwriean Trude 1.) p. Plot) 25X1A WISE C.1, PITA INV EST AI ENT, based on principles .painfolly 4,V ()kV(' by producers, traders and financiers &Hiring countless centuries, has been believed b3,/ this Chamber attiring its fifty' -years at the focal point of Eraneo-Anierican trade to be an essential key to economic progress. Because of this belief we giVe nearly half of this issue to concise explanations of how the k(I ill Bank ? which, with its partner the International 'thnielary Fluid, is, now hold/rag in Paris, its fifth annual meeting ? is applying business principles in lending money to the world. 'the explanaiion begins on pag:e 20 NEW S20,000 NI EXPENSE, foreed on USA by defence oblig- ations, will be met from current revenue without additional government 41(4(4.4. Secretary Snyder told pressmen iii aris. Explanation on 28 FIttN(I)-ITALIAN TARIFF. UNION is to be approached slowly and (.antimisly with compluzi, abolition of tariffs foreseen after six Years h-oni ratifieation. See pae THE -10 to 30 ()/c WOOL PIIICE RISE for Australian and New Zealand clips brings doubt to the French wool trade regarding retail sales next winter and spring, with fears that consiiin,a;r demand will shift to rotton D i 4 . etails on 8 FIXING OF EIRENCII Vv HEAT PRICES by the gov et-unwell has been brought on because of the importance of bread to French diet and because many rental and other payments are pi gged to the wheat price. hill details on p..e..c DROP IN FRENCH BUYING POWER, from investment aspect, has continued since for gold and dividends; and since I I for iotal issued banknotes. Analysis on ........ page 34 71 AVENUE DES TOP*Ved For Release 20041/def101itiA&Pth-Otlingkithtbki0i6OCW-8/Hige PAWLS 17 GAT AAM 81-66 Automobile Show, Stand 50 Builders o altal Mt &A-RV 3Piii 55? WPM?of adverttsements 2 YEARS IN FRANCE.. FRIGIDAIRE A.C-DELCO G.M-DIESEL CADILLAC BUICK OLDSMOBILE PONTIAC CHEVROLET VAUXHALL BEDFORD OPEL GENERAL MOTORS (FRANCE) 56 A 60 AVENUE LOUIS ROCI E GENNEVILLIERS (SEINE) TEL: GRE: 34-50 RETAIL SHOW ROOM .46 RUE LA BOETIE - PARIS 8' - TEL: BAL: 34 80 Pealers /nail principal cities of France Approved For Release 2001/09/10 : CIA-RDP83-00415R006900230002-8 Approved For Release 2001/09/10 : CIA-RDP83-00415R006900230002-8 Wages and Labor 403 British labor disputes. were settiea by agreement reached threugh, or with the aid of, the Ministry of Labor's conciliation system during '49 -- year in which 4,500,000 changed jobs or began work for the first time. Half of another 100 voluntary arbitration cases finally reached the Ministry's courts, and 247 dases were appealed to the National Arbitration Council. Joint consultation ,> is accepted in principle by most firms in 54 industries. Brit Min Lab rep '49 Stationery Off 4 sh, ; Tim ion p 2,4 sep 50) Fore will pay $50 m per year more under a new contract d 7trp 50) with United Auto Workers, giving 110,000 employees n 19.4 cent per flour wage- pension increase. Base pay will change, with cost of living index, one cent per hour up or down witi, each 1.14 point change in Labor Statistics Bureau index. Pensions will be $125 per month instead of $100, this including all receipts from government social security. immediate pay increase is 13 cents per hour for skilled workers, cents for others, with an additional 4 cents to be added each year for four years. (nP ii NYHT p 1 5 sep 50) US lobs increased and workless fell at the beginning of aug '50, total at work rising to over 62 in (3. 4 of a million more than previous record) and unemployed dropping from 3.2 m to 2 m. (Fig p 5 5 sep 50) Chrysler voluntarily raised pa/ at the end of aug '50. Some observers claimed this encouraged General Electric workers to prepare to strike, made trouble at Ford's, and forced Packard to raise pay. About 200,000 important workers were out by the beginning of sep 50, with more trouble possible on railways. (Macnens 4 sep 50) Administrator's Notebooh. The Chamber's Directors. Cost Reduction Methods._ os Is F.5 Prices Furopean Economic C:ooperation Exchange ERP This Month Vxplained 1 or Membrus.. Vxport - Import 12, 39 1 8 6 17 20 s Fairs 1 This is to assurG that loans will be used for productive purposes. Before a loan is granted there must be a clear agreement as to types of goods and services, and uses to which those goods axid eervices are to be put. The specific project approach has been criticised on the :tiumotion that the Bank examines particular projects in, isolation, without reference to their relation to over-all development needs. The Bank does precisely the opposite. Its iecks to determine what the investment priorities are, and Lhen to adapt its assistance to meet priority needs. The Bank encourages its member countries to formulate long-term develop- went programs and is assisting several of them in this respect. Ir the Bank were to make loans for unspecified purposes or vogue programs not worked out in specific projects, there would be danger that the Bank's resources be used for projects economically or technically unsound or of low priority or for economically unjustified consumer goods imports. Experience of projects presented to the Bank has shown that this danger is ) no means hypothetical. The proposal has been advanced that the Bank should make loans :K general development purposes. ? It is difficult to discuss this proposal without a more precise definition- If ail that is meant is that the Bank should not confine its assistance to individual projects but should finance groups of inter-related projects, the proposal merely reflects existing Jorik policy.. The Bank prefers to base its financing on a national. development program properly worked out in terms of the proieets by which the objectives are to be attained- 4Iernbers are asked to 'phone news and suggestions to A NJ 19.O() post 6. o'i31.11ERCE i.v FILLN (Approved Pdt Releate '2001/09/10 : CIA-BDP83-004ARO But the proposal has a different aspect if it is intended to urge that loans should be made for programs consisting only of general aspirations. Such programs provide no adequate basis for judging whether investment will be translated into the concrete substance of development. Determination .of Projects to SeLleinanceu - Since the avail- able resources of every country, including capacity to borrow abroad, are limited, Bank financing must be devoted to under- takings which contribute most to strengthening the economy of the country. The Bank investigates the over-all economic position to determine what should be -LLie goals of investment program and to gauge the relative prodTctivity of the various projects by the extent of their contritution to those goals. There is no single test by which the relative urgency and productivity of various alternative projects can be judged. The situation in each country must be considered on its own merits. There the project is intended to he self-liquidating interms of local currency, the Bank wilt wish to satisfy itself, that the enterprise is soundly conceived to achieve that objective. Relative profitability of different projects will rarely be a proper test of their reintive contribution to a country's development. In many caeus, certain basic invest- ments in public utilities, transport and ports, reclamation and irrigation, workers' housing and similar projects will be required before other investments in more immediately profita- ble activities can be undertaken. The indirect Penfits attri- butable to these basic investments may i.e very great even though the direct earnings of the acttvities, at least in the short run, are not high or may even be non-existent. The Bank recognizes that by financing ene investment project it may release resources already availapie to the borrower for some other activity, but it does not regard this as relieving it from the obligation of satisfying itself that the projects it finances are technically sound and of a high priority nature. it may be hoped that underdeveloped countries may thereby become more familiar with the Bank'e methods and criteria and so tend to apply the same standards to investment projects financed from their own resources, its may prove to be a valuable by-product of the Bank's technique. loans for Local Currency Expenditures - The Bank's Articles of Agreement make a distinction betwein two types of foreign exchange expenditure which may be incurred in the execution of an investment project; one, the direct cost of imported equip- ment or services used on the project; the other, the indirect foreign exchange expenditure on labor or domestically produced equipment will usually give rise to increased demand for imported consumer goods or raw mater. nin. The Articles contemplate that the Bank should normally make loans to meet y -uu.------ The most useful news is often foaled in the advertisements. Approved For Release 2001/09/10 : CIA-RDP83-00415R00690023 TiL OREATEST OFACTURERS 01 IRK RESISTANCE MACHINES 4915, West 67 lh Street CHICAGO (ILLINOIS) VVashIng to n New..York - Detroit ? Los Angeles Buenos?Ayre', Rio-,:te?Janultur. A. Charles-Fourier PARIS (13') ruxottes Amsterdam - Oslo t9ckho1ni Copenhague Tui in -,Madrid ,41,000?0.00000110.1 APV a cl KS Birrlingh Ii Manchester 4YdneY" Cssajcc, etc.. W. W 1 Pi G App 1E /Aroved For Release/2004/09/10 CIA-RDP/3/4)0411R1()900250002-8 JOHNSTON established 1875 Rae ? d'Eughien PARIS (10?) ? Phone : PRO. 23-31 GENERAL SHIPPING FORWARDING INSURANCE AGENTS rREIGHT BROKERS EXPORT PAS:KERS PASSENGER AGENTS FOR ALL FIRST CLASS LINES OF STEAMERS AND AIRWAY LINES Agencies Throughout The World Fast and Reliable Service 0 TO IN LUXURY BUS Jointly with C.E.A. very Friday 1s-111 ONTREUX 7.900 frs Every Monday PARIS MONTI1EIA ROME 25.400 frs NORD1SK VOYAGES , t-liAmP3EleraS.E5.PAPIS ?TFL ELY 0(.. in-04 21 At all tourist agents SCAND1NArlit by sLIIVIEBUSSs leave every tuesday, thurseltry and satfirday PARIS-00I'ENHAGEN SWEDEN the first type of foreign expenditure; they permit loans for the latter type in exceptional circumstances. ? This second type of loan is often referred to as a loan to meet local currency expenditures although, strictly speaking, it is a loan in Foreign exchange needed because of foreign exchange require- ments indirectly resulting from expenditure in local currency. lt has often been argued that, to the extent that local expen- eture on investment projects gives rise to additional demand. For imports of consumer goods or raw materials, there can be no logical reason for making this expenditure less eligible for ho-ins than the direct foreign expenditure required for the import of capital equipment. But the Bank is in agreement with the view that many countries, particularly the less developed ones, need to take more effective measures to channel their limited domestic savings into the most productive investment projects. it feels that it should assist these countries to defray the local currency part of their investment programs from their own resources. it has, for example, recently assisted the Government of El Salvador in the flotation of dmestic bonds by the Rio Lempa Commission in connection with lbe Bank's loan to the Commission. A country may be in position where its domestic savings are reasonably fully employed in productive investment and where the most advantageous additional investment would be in such projects as roads, irrigation or housing which call principally for expenditure in domestic currency. Provided such invest- ment is in line with the natural growth of the country, the Bank believes that a loan for local expenditures to tide the country over a period of expansion without inflation would generally be justifiable. Cu other words, the Bank regards the local ,gurrency provision of its charter not as an encumbrance but as a signal of the need for inquiry and justification whenever application is Mad.0 for a local. currency loan. There is nothing in the provision to prevent such an application being approved if the circumstances warrant it. The general policy of the Bank is not to finance the whole cost of any undertaking, because it believes that its fr:orrowere best interests are served if they have a financial stake for their investment projects. The Bank's policy is that local expenditures may be financed if the following conditions are satisfied: (1) the project is of such urgency that the country's ability to undertake foreign borrowing is better utilized in this project tlein in financing the direct foreign exchange costs of alternate projects; (2) the local currency costs of the project cannot reasonably be met out of available domestic resources; and (3) it is apparent that, unless foreign exchange is made available for the import of consumer goods or raw materials, local currency hev to sources cited at end of each paragraph on page 3, roved For Release 2001/09/10 : CIA-RDP83-00415R006900230002-8 .11 E 'E I,' It I (1 Approve0f,or,Releese,2901/09/10 : CIA-RDP83-00415 oxpenditures involved in the project w II lead Lo inflationary pressures. the Character of Bank Investigation lthough procedures uecessarily vary from case to cn:aJ, ito )iAllk has developed a eneral pattern of handling loan reqpt Normally, it prefers to hold informal exploratory di ,,assions with pros- pective borrowers before any rOPMli luau request. is filed. Those discussions enable the Bank to ;R:tA cmtne whether the projects are of a type which the Fiant can consleer and what kinds of information it will neon. t. t prcspective borrower a member government the Bank require: at, tiiis stage an )ddication by the Government that wl L uarantee a loan for the project. The actual process of investigat states, which may proceed more ur ta a general examination of the e determine: (1) the amount of add. on us ally falls into two C, acurrently. The first onomv oi the country to 10MAJ external debt the country can afford and the rate at whIcn L con absorb such debt; the general priority of the projAcA 1 roil. inc standpoint of tneir contribution to the country's deaiupweht; and (3) the appropriateness of the governmu nwro cc alemic wd financial policies to further the developneni. pro This first stage frequently i's c i i. nI study ut the country's agricultural, industrial and w.inerl resources; its manpower, transport and power sitaolub.; the state of its external trade and balance of paymew,s, :bnd thu condition of its Internal finances, particularly it ba position. If such an inventigation na the Bank, the inquiry will normaIiy ,c occuring in the interim. After ti a able at, its home office, the Bank ::Lmte mission to examine conditions Jai tbo ut and currency already been made by nfined to developments tne information avail- always dispatches a 4iiirv itself. On the basis of the mission's repurc oae Bank s usually able to form a provisional judgement as to tne amount of additional foreign debt the country can safely -i two ;111(i effectively use and also as to the projects most sita e los financing. The Bank then proceeds in the second phase of it, investigation wilha detailed examination of these projects. Staff engineers or outside engineering consultants make a i,horough technical examination of any important -echlii.eai problems invoved. At Least part of the technical investiga-ulon must usually be conducted in the field. if the inves[lgations result in a favorable report on the project, .:orwal negotiations for a loan are begun. As the Bank's mom or :iouhtries have gained tyrcaCer familiarity with the provision of the Bank's loan and guarantee agreements; it has often been pos'sibie to complete the formal negotiations quite quickly. RD 1...'TE STA 11,08.13,..0116 NEW I! A v R law YORK n ghtry gallings of the ft U ?JAN1A A RONIA , 7 , ue de Ri)eroy 1Or one . lrftu 72.81 gien4s ouse Itrentlyers are asked to 'phone news mut sngpestnans it) ANI 19.00 post 6. 723 SeYei'll' Ave. Approved For Release 2001/09/10 : CIA-RDP83-00415R006900230002:48 ew York 19 ted For RelesiiaCtOitiOtiiic?E RUST' NIPANY W YORK NEW TO LONDON AR IS -BRUSSELS Capital Funds 373.969.698 ? Par 4, Plate of CC : Caii*aritir ARNE Shotgun - WITH FIXED BARRELS' AND AUTOMATIC EIECTOIIB, never gets out of order, has all11,3t0nIshing penetration, does not klek n 13MM Of Its Ilstt weight. Its IsCwerfni ejector extracts even swollen deformed badry- lilting re-capped cartridges. THH WINNER OF VIE GREAT PIGEON ,l0TS AT MONTE-CARLO, -IlOYA-X, 'VICHY, etc. The right hang shell, cau6Preeibd the end or after the first fir n9 ct itself. The itnthrefre4barrlefeti.hand stlerl .stays in in the world all the fields - Luc. ,, . s_, in honor. - ----1 shotgun is loved, ,..,_ cryuss_ se ppreciatect, in u e _ CATALOGUE