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JECRIT
Both the MRP and the Communists may be expected to remain firm
partisans of proportional representation, which has been most profitable
for them.
A likely compromise would retain proportional representation for
party tickets on a departmental level (as in the elections of October 1945
and June 1946) but permit the voter to modify the order of candidates
within a party list. The Communist-supported proposal to combine
departmental remainders in order to elect candidates from a national
list nominated by central party organizations is unlikely to be success-
fully revived.
C. THE ECONOMIC SITUATION. France's recovery from the war
and the German occupation has been more rapid than that of any other
continental European country with the exception of Norway and Den-
mark. Industrial production had increased from 30 percent of 1938 at
the beginning of 1945 to 75 percent in March of this year. As yet, how-
ever, this has not meant an appreciable amelioration of the average
French family's standard of living.
The main physical bottleneck to increasing industrial output has
been and will continue for the remaining months of 1946 to be the supply
of energy, principally coal. Realizing this, the French have devoted
special attention to stimulating domestic coal production, which in
January of this year surpassed the prewar rate. This achievement, un-
equaled elsewhere in Europe, resulted from the energy and initiative
with which the Government has attacked the problem and the coopera-
tion it has received from labor. On the other hand, coal imports, on which
France normally relied for about 35 percent of its consumption, are still
substantially below prewar levels. (They fell sharply in May as a result
of the coal strike in the United States.) If imports from the US and
Germany are maintained, the general level of industrial output can be
expected to rise, approaching the 1938 rate by the end of this year. At
that time the supply of energy will cease to be the bottleneck to increased
output, and the general supply of manpower and its productivity will
become important determinants of the level of economic activity.
The flow of consumer goods to the domestic market has lagged far
behind the overall increase in imports and industrial output. This is
RECORDS SERVICE*
to be accounted for by the fact that much of the increase of economic
is
activity has occurred in the early stages of production: in mining, in
the production of steel, and in the processing of cotton and wool. By the
end of the year, however, output of consumer goods will be close to that
of 1938. It will still, of course, be insufficient to satisfy the large demand,
which is swollen over and above normal current requirements by the
non-replacement of stocks of goods during the past seven years. In ad-
dition, food availabilities remain at a low level (although this year the
crop promises to be large), and food distribution has been notably
defective.
Since liberation prices have continued to rise faster than wages, with
consequent reduction of labor's real income. Nevertheless organized labor
20
ECTET
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"ocrText": "JECRIT\nBoth the MRP and the Communists may be expected to remain firm\npartisans of proportional representation, which has been most profitable\nfor them.\nA likely compromise would retain proportional representation for\nparty tickets on a departmental level (as in the elections of October 1945\nand June 1946) but permit the voter to modify the order of candidates\nwithin a party list. The Communist-supported proposal to combine\ndepartmental remainders in order to elect candidates from a national\nlist nominated by central party organizations is unlikely to be success-\nfully revived.\nC. THE ECONOMIC SITUATION. France's recovery from the war\nand the German occupation has been more rapid than that of any other\ncontinental European country with the exception of Norway and Den-\nmark. Industrial production had increased from 30 percent of 1938 at\nthe beginning of 1945 to 75 percent in March of this year. As yet, how-\never, this has not meant an appreciable amelioration of the average\nFrench family's standard of living.\nThe main physical bottleneck to increasing industrial output has\nbeen and will continue for the remaining months of 1946 to be the supply\nof energy, principally coal. Realizing this, the French have devoted\nspecial attention to stimulating domestic coal production, which in\nJanuary of this year surpassed the prewar rate. This achievement, un-\nequaled elsewhere in Europe, resulted from the energy and initiative\nwith which the Government has attacked the problem and the coopera-\ntion it has received from labor. On the other hand, coal imports, on which\nFrance normally relied for about 35 percent of its consumption, are still\nsubstantially below prewar levels. (They fell sharply in May as a result\nof the coal strike in the United States.) If imports from the US and\nGermany are maintained, the general level of industrial output can be\nexpected to rise, approaching the 1938 rate by the end of this year. At\nthat time the supply of energy will cease to be the bottleneck to increased\noutput, and the general supply of manpower and its productivity will\nbecome important determinants of the level of economic activity.\nThe flow of consumer goods to the domestic market has lagged far\nbehind the overall increase in imports and industrial output. This is\nRECORDS SERVICE*\nto be accounted for by the fact that much of the increase of economic\nis\nactivity has occurred in the early stages of production: in mining, in\nthe production of steel, and in the processing of cotton and wool. By the\nend of the year, however, output of consumer goods will be close to that\nof 1938. It will still, of course, be insufficient to satisfy the large demand,\nwhich is swollen over and above normal current requirements by the\nnon-replacement of stocks of goods during the past seven years. In ad-\ndition, food availabilities remain at a low level (although this year the\ncrop promises to be large), and food distribution has been notably\ndefective.\nSince liberation prices have continued to rise faster than wages, with\nconsequent reduction of labor's real income. Nevertheless organized labor\n20\nECTET"
}