FRANCE: Upswing for the Franc

The French franc was on a bobsled run, and the French government seemed powerless to stop it. It had skidded down to a low of 460 to the dollar.

Two weeks ago, Premier René Pleven proclaimed austerity for France, and a Slash in imports of U.S. coal, ore and raw materials, in an effort to brake the run. But devaluation rumors had French capital badly scared.

Last week, after a five-hour cabinet meeting, Pleven had good news to announce: the U.S. had granted France $600 million emergency aid—$200 million for direct economic aid, $400 million to maintain U.S. troops stationed in France and to equip U.S. armed forces from French industry.

France would still have to increase its taxes and cut its public works spending to meet its budget. But the dollar pinch was over, and imports could be resumed. At week's end the franc was on the upswing: 438 to the dollar.