WAR FRONT: France Gone

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This week, with 14% of its $5,495,602,517-a-year export-import trade already interdicted by World War II, with the rich Mediterranean area newly cut off (see p. 78), U. S. business awoke to a new loss —another 4%. The word was spoken by a tired, broken-voiced old man: "It is with a heavy heart that I tell you today that we must stop the fight." France was gone.

In the eight months ending April 30, France had sent $39,949,838 worth of goods to U. S. buyers, a variegated group of nonessentials, ranging from hides and cheeses to perfumes, wines and cigaret paper. But France was the No. 2 U. S. customer in Europe (after the United Kingdom). In the same eight months she bought $161,871,138 worth of steel, airplanes, munitions, oil, other U. S. goods. With her Ally she had placed around $1,600,000,000 worth of war orders and in many a French-endowed U. S. factory, workmen were busy on the supplies she will not now need.

To U. S. businessmen the economic consequences of France's surrender were shrouded in bewilderment. Would Britain take over torpedoes built for French battlecraft, shells for French guns?

Quick to act, as France went down, was Franklin D. Roosevelt. As he has done for other Nazi-stricken countries, he issued an order freezing French capital and credits in this country, a total including gold and securities of well over $1,000,000,000. But powerless was any U. S. authority to protect U. S. investments in France, estimated at $150,000,000.