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teristic of the US and the UK political systems and makes it very hard for a French
government to cope with a political or an economic crisis.
The physical and psychological damage caused by the war in France is much
greater than was at first realized. Political differences existing before the war were
intensified and embittered during the occupation, and a general decline in public
morality caused by the conflict is now reflected in a continuing decline in political
morality.
The French Communist Party has the largest representation in the National
Assembly-roughly 27%, exclusive of the minor parties which follow the Communist
line. The political power the Party held during the past two years has recently been
threatened as a result of the October municipal elections, largely fought on national
issues.
As a consequence of the elections, General De Gaulle and his group, the Rally of
the French People (RPF), emerged as a new and potent force in French politics. Pri-
marily because of its anti-Communist stand the RPF polled nearly 40 percent of the
vote, but its strength has come largely from defections from the Popular Republican
Movement (MRP), a center party, and not from the Left. It should be particularly
noted that a substantial portion of this vote was cast in protest and does not represent
a cohesive political force. In the municipal elections the Communists obtained about
30% of the vote. The Socialists, the third largest party, made slight gains. The effect
of this election may be further to divide the French Assembly and people into Left and
Right groups of more or less equal strength. In any event, the municipal elections have
not lessened the importance of effective action in the economic sphere which might
lessen the severity of the political crisis.
Whether General De Gaulle can achieve power and, if he does, will adopt the neces-
sary measures of stabilization and reform that the present Center coalition government
has planned, remains uncertain. He lacks experience in the field of economics. His
characteristic inflexibility and his sense of a "mission," furthermore suggest that he
might take an authoritarian rather than a democratic approach. The positive action of
the Schuman Government in dealing with the present strikes may have reduced the ap-
peal of De Gaulle as the only strong leader who could bring France out of economic and
political chaos.
4.
ECONOMIC SITUATION.
The recent strikes and work stoppages have posed immediate problems which
overshadow by their urgency the fundamental problem of long-term economic rehabili-
tation. The realization of the Monnet Plan has been pushed even further into the
future. The question now is whether the French politico-economic mechanism can be
repaired and made to operate until the European recovery program has had time to
take effect. In a moment of great crisis French political parties have temporarily set
aside their differences to combat Communism and to prevent national collapse. The
future of France depends on the ability of the non-Communists to continue cooperating
long enough to consolidate in the field of economics the victory they won in the field of
politics. The loss of production in November and December has accelerated inflation
and increased the public sense of insecurity about the whole future of the nation. The
3
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"ocrText": "TOP SECRET\nteristic of the US and the UK political systems and makes it very hard for a French\ngovernment to cope with a political or an economic crisis.\nThe physical and psychological damage caused by the war in France is much\ngreater than was at first realized. Political differences existing before the war were\nintensified and embittered during the occupation, and a general decline in public\nmorality caused by the conflict is now reflected in a continuing decline in political\nmorality.\nThe French Communist Party has the largest representation in the National\nAssembly-roughly 27%, exclusive of the minor parties which follow the Communist\nline. The political power the Party held during the past two years has recently been\nthreatened as a result of the October municipal elections, largely fought on national\nissues.\nAs a consequence of the elections, General De Gaulle and his group, the Rally of\nthe French People (RPF), emerged as a new and potent force in French politics. Pri-\nmarily because of its anti-Communist stand the RPF polled nearly 40 percent of the\nvote, but its strength has come largely from defections from the Popular Republican\nMovement (MRP), a center party, and not from the Left. It should be particularly\nnoted that a substantial portion of this vote was cast in protest and does not represent\na cohesive political force. In the municipal elections the Communists obtained about\n30% of the vote. The Socialists, the third largest party, made slight gains. The effect\nof this election may be further to divide the French Assembly and people into Left and\nRight groups of more or less equal strength. In any event, the municipal elections have\nnot lessened the importance of effective action in the economic sphere which might\nlessen the severity of the political crisis.\nWhether General De Gaulle can achieve power and, if he does, will adopt the neces-\nsary measures of stabilization and reform that the present Center coalition government\nhas planned, remains uncertain. He lacks experience in the field of economics. His\ncharacteristic inflexibility and his sense of a \"mission,\" furthermore suggest that he\nmight take an authoritarian rather than a democratic approach. The positive action of\nthe Schuman Government in dealing with the present strikes may have reduced the ap-\npeal of De Gaulle as the only strong leader who could bring France out of economic and\npolitical chaos.\n4.\nECONOMIC SITUATION.\nThe recent strikes and work stoppages have posed immediate problems which\novershadow by their urgency the fundamental problem of long-term economic rehabili-\ntation. The realization of the Monnet Plan has been pushed even further into the\nfuture. The question now is whether the French politico-economic mechanism can be\nrepaired and made to operate until the European recovery program has had time to\ntake effect. In a moment of great crisis French political parties have temporarily set\naside their differences to combat Communism and to prevent national collapse. The\nfuture of France depends on the ability of the non-Communists to continue cooperating\nlong enough to consolidate in the field of economics the victory they won in the field of\npolitics. The loss of production in November and December has accelerated inflation\nand increased the public sense of insecurity about the whole future of the nation. The\n3\nTOP SECRET"
}