France: Paris-Milan Express

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Even as Charles de Gaulle called again last week for a "European Europe," a sizable piece of French industry slipped into the American orbit with his approval. Persuaded finally that ailing Machines Bull could boost its share of the computer market's sales and cut its losses only with proffered American help, De Gaulle reversed an earlier veto and allowed General Electric to come in and take what amounts to a controlling interest. Last week, after three months of negotiations, the terms and the extent of G.E.'s investment—$43 million—were agreed on.

For this sum, which will come from G.E. revenues abroad to avoid strain on the U.S. balance of payments, G.E. gets a 49% interest in Machines Bull's research and manufacturing facilities and 51% of its sales company. Most important, G.E. obtains a secure European base from which to battle comfortably ensconced IBM for a continental computer market expected to reach $3 billion in sales by 1970. No sooner had the French discussions ended last week than G.E. executives moved on to Milan to extend that base. Italy's Olivetti, which makes small computers and office machines and is also having difficulties, is anxious for the same sort of help. Preparing to extend it, G.E. seemed likely to accomplish more by its two bits of bargaining than it had managed in two years of independent marketing in Europe.