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III. ESTABLISHMENT OF THE TECHNICAL ASSISTANCE PROGRAMS
A.
Convincing National Leaders of Government, Industry, and Labor
3.01
With the completion of Europe's preoccupation with reconstruction in the immediate post-war
years there was little or no European governmental policy concern with productivity advancement as a means
for further national increases in production, wages, and living standards. An exception was Jean Monet, head
of the French Commissariat au Plan (commission for the reconstruction and modernization of French
industry). His war years in the U.S. had made him aware of the higher productivity levels there than those
prevailing in France and of the higher American consumption and standard of living.
3.02
Beginning in 1946, within the Commissariat he organized a succession of committees including
economists, statisticians and engineers to analyze the differences in French and American productivity, but the
committee reports did not formulate or result in action programs.
3.03
During the same period in the U.K., there was no response in senior governmental or industry
circles to the 1943 and 1946 pioneering statistical reports of L. Rostas of the British Board of Trade on the
differentials in productivity between industries in the U.K, Germany and the U.S. during the previous
decades.4
3.04
Statistical studies of the Productivity and Technological Development Branch of the U.S.
Bureau of Labor Statistics (BLS) confirmed the work of Rostas. The U.S. Secretary of Labor recognized that
existing differences in productivity would hinder further European recovery and improvements in living
standards, to the point that political stability might be jeopardized.
3.05
With the concurrence of Paul Hoffman, Director of the Marshall Plan, an initial survey of
representative sectors of British and French industry was conducted by the BLS in mid-1948. Representatives
of British and French industry and government were present during the surveys of 24 companies including 25
plants in England and 16 in France, and a total of 51 production facilities.
3.06
The sector surveys were conducted with the benefit of BLS background experience of some
3000 plant surveys made annually in the U.S. and the preparation of comprehensive industry and product
productivity studies over a period of years.
3.07
The sector survey report conclusions, requested by U.K. officials, stated that in mass
production industries the differences in efficiency between plants in the U.K. and the U.S. were so great and
4/
L. Rostas, "Industrial Production, Productivity, and Distribution in Britain, Germany and the United
States," Journal of the Royal Economic Society, April 1943, and National Institute of Economic and
Social Research, Comparative Productivity in British and American Industry, Cambridge University
Press, 1948.
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"ocrText": "- 10 -\nIII. ESTABLISHMENT OF THE TECHNICAL ASSISTANCE PROGRAMS\nA.\nConvincing National Leaders of Government, Industry, and Labor\n3.01\nWith the completion of Europe's preoccupation with reconstruction in the immediate post-war\nyears there was little or no European governmental policy concern with productivity advancement as a means\nfor further national increases in production, wages, and living standards. An exception was Jean Monet, head\nof the French Commissariat au Plan (commission for the reconstruction and modernization of French\nindustry). His war years in the U.S. had made him aware of the higher productivity levels there than those\nprevailing in France and of the higher American consumption and standard of living.\n3.02\nBeginning in 1946, within the Commissariat he organized a succession of committees including\neconomists, statisticians and engineers to analyze the differences in French and American productivity, but the\ncommittee reports did not formulate or result in action programs.\n3.03\nDuring the same period in the U.K., there was no response in senior governmental or industry\ncircles to the 1943 and 1946 pioneering statistical reports of L. Rostas of the British Board of Trade on the\ndifferentials in productivity between industries in the U.K, Germany and the U.S. during the previous\ndecades.4\n3.04\nStatistical studies of the Productivity and Technological Development Branch of the U.S.\nBureau of Labor Statistics (BLS) confirmed the work of Rostas. The U.S. Secretary of Labor recognized that\nexisting differences in productivity would hinder further European recovery and improvements in living\nstandards, to the point that political stability might be jeopardized.\n3.05\nWith the concurrence of Paul Hoffman, Director of the Marshall Plan, an initial survey of\nrepresentative sectors of British and French industry was conducted by the BLS in mid-1948. Representatives\nof British and French industry and government were present during the surveys of 24 companies including 25\nplants in England and 16 in France, and a total of 51 production facilities.\n3.06\nThe sector surveys were conducted with the benefit of BLS background experience of some\n3000 plant surveys made annually in the U.S. and the preparation of comprehensive industry and product\nproductivity studies over a period of years.\n3.07\nThe sector survey report conclusions, requested by U.K. officials, stated that in mass\nproduction industries the differences in efficiency between plants in the U.K. and the U.S. were so great and\n4/\nL. Rostas, \"Industrial Production, Productivity, and Distribution in Britain, Germany and the United\nStates,\" Journal of the Royal Economic Society, April 1943, and National Institute of Economic and\nSocial Research, Comparative Productivity in British and American Industry, Cambridge University\nPress, 1948."
}