France - The economy

RESTRICTED portN 0. EA-981 FILE CO' ?iU~ This report was prepared for use w nit available to others, the Bank assumes no responsibility to them for the accuracy or completeness of the information contained herein. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT THE ECONOMY OF FRANCE June 22, 1959 Department of Operations Europe, Africa and Australasia CURRENCY EQUIVALENTS Par value: U.S. $1 - 494 francs 1,000,000,000 francs - $2,024,000 TABLE OF CONTENTS Page No. BASIC DATA I. INTRODUCTION . . . . . . . . . . . . . . . . . . . . . 1 General Background . . . . . . . . . . . . . . . 1 ain Trends Since World War II . . . . . . . . . . . 1 Reconstruction and Modernization . . . . . . . 2 Investment in Eest of Franc Zone . . . . . . . . . 3 Military Expenditures . . . . . . . . . . . . . . 3 Public Finances and Balance of Payments . . . . . 4 II. THE FEENCH ECONOMY TODAY . . . . . . . . . . . . . . . 5 Population and Manpower . . . . . . . . . . . . . . 5 State Role in the Economy . . . . . . . . . . . . . 6 Sectors of the Economy . . . . . . . . . . . 7 Industry . . . . . . . . . . . . . . . . . 7 Energy . . . . . . . . . . . . . . . . . . . . . . 7 Agriculture . . . . . . . . . . . . . . . . . . . 9 Transportation . . . . . . . . . . . . . . . . . . 10 Construction . . . . . . . . 10 Internal Finance . . . . . . . . . . . . . . . . . . 11 Public Finance . . . . . . . . . . . . . . . . . . 11 Money and Credit . . . . . . . . . . . . . . . . . 13 Finance of Investment . . . . . . . . . . . . . . 14 External Accounts . . . . . . . . . . . . . . . . . 15 Franc Zone . . . . . . . . . . . . . . . . . . . . 15 Balance of Payments . . . . . . . . . . . . . . . 16 Foreign Trade . . . . . . . . . . . . . . . . . . 18 III. PROSPECTS . . . . . . . . . . . . . . . . . . . . . . 19 Stabilization Programs . . . . . . . . . . . . . . . 19 Economic Growth . . . . . . . . . . . . . . . . . . 21 Relations with Rest of Franc Zone . . * . . . . 21 France and European Integration . . . . . . . . . . 22 External Debt . . . . . . . . . . . . . . . . . . . 23 STATISTICAL TABLES EXTERNAL PUBLIC DEBT TABLES Basic Data - Metropolitan France Population: Total 44.7 million (March 31, 1959) Yearly rate of increase 0.7% Area: 213,000 square miles Gross National Product: 1958: 23.6 thousand billion francs ($54 billion at 420 francs per $) Annual Rate of Growth of Real GNP, 1950-58: 4% % of GNP 1958 Gross Investment 19 Exports of Goods and Services 15 Government Consumption of Goods and Services: Civil 7 Defense 7 Money Supply 30 External Trade: ExTorts Imports Value (1958) $5.1 billion $5.6 billion (equivalent) (equivalent) Composition: Food, beverages and tobacco 13 25 Fuels, raw materials 14 45 Semi-manufactures 27 14 Manufactures 46 16 100 100 Geographical Distribution: Franc zone countries 37 27 Continental EPU area 32 29 Sterling area 9 20 U.S. and Canada 7 11 Rest of world 15 13 100 100 Official Foreign Exchange Reserves, April 30, 1959: Gold and convertible currencies - $1.3 billion Public External Debt, December 31, 1958: Billon Ecuva.lent Dollars and Gold 2.3 European Currencies .6 2.9 FRANCE PRODUCTION INDEXES (1949 =100) 250 ERL 250 YEAR LY QUARTERLY 200 200 200 INDUSTRY EXCLUDING BUILDING FUEL AND POWER 150 150 100 100 BUILDING AND PUBLIC WORKS 50 ''50 '49 '50 '51 '52 '53 '54 '55 '56 '57 '58 1 II 1II IV l 11 lil IV 1958 1959 6/10/59 1505 IBRD - Economic Staff FRANCE SELECTED INDUSTRIAL PRODUCTS (MILLIONS OF METRIC TONS) 100 .200 20 COAL ALUMINUM (Primary) CRUDE STEEL* STOTALTAL 80-1 50 15TOA SAAR 60 100 10-- 40 >x FRANGE FRANCE 20 .050 5 *Includes ingots and castings 600-,r- - 60 1 15 -r, TEXTILES ELECTRICITY CEMENT TOTAL- (Millions of KWH) 500 -- ----50 - TOT AL 400 40- 300 30 200 20 5 CTfTON 100 -o 10 01NA 0 0 L-_j' tili 1ii1 '29'38'47 '50 '55 '58 '29'38'47 '50 '55 '58 '29'3847 '50 '55 '58 SELEGTED FOOD PRODUCTS 25--, r-- 3 250 CEREAL MEAT MILK AND WINE (Millions of metric tons) (Thousands of (Millions of hectoliters) 20 -- metric tons) 200 OTALmTOTAL | 5 OTHER 50-- TH RE R 5 TOTAL MILK PRODUCTION 0-100 --\, O 5 BEEF 50 0 WHE AND VEALWINE 0 0 - 0 i '' ' ' '34-38'47 '50 '55 '58 '34-38'47 '50 '55 '58 '34-38'47 '50 '55 '58 Av. AV. AV. 6/10/59 1506 IBRD- Economic Staff FRANCE BALANCE OF PAYMENTS - U ITAN FRANCE (BILLIONS OF U.S. DOLLARS) ALL 0 62 3 4 CURRENCIES AND SEHVICES RECEIPTS US I 1950 RENTS FOREIGN GOVERNMENT 195 PAYMENTS l954 RECEIPTS PAYMENTS RECEIPTS 1955 PAYMENTS 1954 RECEIPTS PAYMENTS 1957 RECEIPTS PAYMENTS RECEIPTS 1956 PAYMENTS RECEIPTS NET DEFICIT OF REST IMORS ND SERVICES OF FRANC ZONE U.S. DOLLAR O LO.I 2.0 19506 EP ACOUNTS ....... 1957 RECEIPTS PAYMENTS 1952 RECEIPTS PAYMENTS 954 RECEIPTS .:: ..-:- O REST PAYMENTS RECEIPTS . 1955 PAYMENTS 1955 RECEIPTS PAYMENTS RECEI PTS 192PAYMENTS 195RECEIPTS PAYMENTS 1507 IBRD- Economic Staff I. INTRODUCTION General Background 1. France is one of the countries in the world most favored by nature: as a Spanish saying elegantly puts it, "France is not a country but a garden". She has ample and fertile land and a temperate and varied climate well-suited to agriculture. She is much less densely populated than the other three large Western European countries. Well-provided with minerals, she is the world's third largest producer of iron ore and potash, the fifth largest producer of coal, and Western Europe's principal producer of bauxite. She is a large producer of hydro-power and is developing important discoveries of natural gas. She has good ports on the Atlantic, North Sea, Mediterranean and Phine and internal transport is facilitated by the river systems and generally favorable terrain. 2. During the thirty years or so preceding World War I, France became an important exporter of capital. In 1913, her foreign investments were 8-9 billion equivalent and she was the world's second largest creditor nation. 3. France suffered huge manpower losses and heavy destruction during World War I, and over two-thirds of her foreign investments were wiped out by repudiation, default or currency devaluations. Material recovery was rapid. After a few years of inflation, the franc was stabilized in 1926 and became one of the world's strongest currencies. French exports of capital were resumed and are estimated to have reached a cumulative total of around $4 billion by 1929 while gold holdings rose enormously. 4. The year 1929 marked a high point. Industrial output was over a third higher than 1913; the 1929 output level was not regained again until 1950. World depression and the devaluation of the major world currencies in the earl 1930's, which France refused to follow, put an abrupt end to the buoyancy of the French economy. The devaluations of 1936 to 1938 came too late to reverse the trend before the war. 5. France suffered great losses again during World War II; her popula- tion dropped from 42 million to 40.3 million and her fixed capital was severely impaired. Again, the bulk of the value of her foreign investment was lost. Main Trends Since World War II 6. Since World War II, France has made a record of impressive economic achievement which, however, has been obscured by a succession of financial crises. The latter have been due fundamentally to France's attempting more tasks than her governments were able to persuade the people to be willing to pay for immediately and directly. The result has been recurrent bouts of inflation. - 2- Reconstruction and Modernization 7. Under the leadership of the government's Plans de Iodernisation et d'Equipement, reconstruction and modernization were vigorously tackled and the general purpose of the Plans, to modernize the French economy and raise its productivity, is being largely realized. 8. By 1950, with the help of almost $5 billion of U.S. aid ($,2 billion loans, the rest grants) the gross national product had probably recovered to the 1929 volume. During 1950-1958, the real gross national product rose by 40% or by an average of 41% per annum - probably a faster rate of growth than France has ever known in any comparable period. And, virtually the whole of the increase in production during this period had to be won with- out an increase in total labor force. The population has increased by over 10% since World 'ar II but so far the increased number of children has meant only more mouths to feed, while the hands to work have, if anything, been fewer. 9. Growth of output has been particularly striking in industry. Between 1950 and 1958, industrial production increased by 75%, and in the last five years growth was more rapid than in any other major Western country, includ- ing Germany. As in most countries, the growth has been concentrated in the "new" industries (chemicals, petroleum, vehicles, rubber products, electricity) while traditional industries (coal, metals, textiles, building materials) showed only small gains. 10. Productivity per man-hour appeprs to have increased by over 50% during this period, i.e. more than in Germany and considerably more than in the United States and the United Kingdom. 11. The interest of business leaders in research and scientific manage- ment, whiph before the war was largely non-existent, has been growing rapidly in recent years. 12. However, it should also be remembered that, unlike most other European countries, France has maintained severe quantitative restric- tiors on imports of manufactures during most of this period. Between 1955 and 1958, when industrial production increased by 28%, the volume of exports of manufactures to foreign markets increased by less than 10% and the French share decreased in world exports of manufactures (including the exports to the franc zone). 13. French industry has enjoyed almost exclusive access to the markets of French overseas territories. These, in 1955-58, absorbed 38% of French exports of machinery and equipment and 55% of exports of manufactured con- sumer goods. Thus, while growing rapidly in this period, French industry remained largely isolated from world markets. - 3 - 14. Agricultural production recovered to its prewar level by 1950 and since then it is estimated to have risen by some 20%. The principal gains have been in livestock production. The area under cultivation has declined and the numbers employed in agriculture have decreased by 18%. Thus, tYere has been a considerable improvement in productivity in the postwar period. The revolutionary changes under way in agriculture are illustrated by these figures: the number of tractors has risen from 40,000 before the war to 625,000 in 1957/58, and the number of harvesting machines from 300 to 400,000. 15. Similar progress has been made in transport and communications - the railways have been extensively electrified and air travel has expanded spectacularly. 16. In brief: while the old France of small farms and small business, slow-changing and jealous of acquired privileged positions still exists, both alongside the old France and bursting through it, there is the new France of large-scale production, quick-moving, progressive and modern. Investment in Rest of Franc Zone 17. In addition to carrying on a very great effort of reconstruction and modernization at home, France also undertook a large program of economic development in her overseas possessions and territories associated with her. The total amount of investment in the rest of the franc zone since the war financed by French public funds by now has surpassed $5 billion equivalent - i.e. an amount about equal to two years' public investment in France. (This investment, speaking very broadly, has endowed the rest of the franc zone countries with an adequate or more than adequate infrastructure for some time to come. In most cases, the rest of the economy has not yet developed sufficiently to reap the full benefits of this infrastructure endowment.) 18. The French public expenditure in the rest of the franc zone has not been limited to investment pure and simple. The French government paid for the salaries of French administrators and a galaxy of common services and subsidized, in many instances, the ordinary current budget of the territories. The following is merely indicative of the impact of these expenditures on the French public finances: in 1957, French public transfers of funds to the rest of the franc zone, including only normal transfers to Algeria, were almost 900 million equivalent (at the 420 rate of exchange) or over 7% of French governmental expenditures. Military Expenditures 19. Since World War II, France has made a large defense effort and, in addition, has been engaged in active operations, first in Indo-China and then in Algeria. It is difficult to assess the real cost of these opera- tions and how much they may have added to what the defense expenditures would have been otherwise. Probably the major part of the burden of the latter part of the Indo-China war was taken by U.S. aid totaling around $2 billion, given to France at this time. 20. From 1950, when fighting had already begun in Indo-China, to 1957, when the Algerian war was in full swing, military expenditures in real terms about doubled. During the same period, military expenditures in- creased from 20% to 28% of total governmental expenditures. If one takes this additional 8% as being due to the Algerian war the cost amounted to 420 billion francs a year in 1957 or $1 billion equivalent - the estimate given by M. Faure, a recent Minister of Finance. Public Finances and Balance of Payments 21. The foregoing were then the major tasks undertaken by France since World War II. While great, they were not unbearable for an economy that is basically as rich and strong as that of France. Difficulties arose primarily when a need for adjustment to a suddenly increased burden pre- sented itself. The direct facing of the need for the imposition of addi- tional sacrifices was, as is true often elsewhere, put off as long as possible by resort to inflationary finance. 22, After several years of crisis to determine how the impact of the increased military expenditures of Indo-China and the Korean War period was to be shared out domestically with the support of U.S. aid, France entered a period of stability from 1952 through 1955. During these years public expenditures were financed without resort to the Banque de France, the price indices remained steady, and the improvement in the balance of payments made possible progressive steps towards trade liberalization. While U.S. aid in grants and loans totaled $1,700 million during the four years, 1952-1955, France succeeded in adding $1,200 million to her foreign exchange reserves. 23. In 1956, a. sharp increase in social and military expenditures coinciding with bad crops and a big drop in U.S. aid and expenditures in France precipitated another crisis of adjustment. Before this one was completed, the government had to resort to the Banque de France on a large scale, prices rose by 20%, the balance of payments deteriorated drastically with large losses of reserves in spite of the re-imposition of severe import restrictions and an international rescue operation, and the franc was devalued twice. - 5 - II. THE FRENCH ECONOMY TODAY Population and Mannower 24. The French population grew very little for nearly a century to the end of World War IT. Since then, with the help of generous family allow- ances and the security of full employment and a growing economy, it has been growing at around 0.7% per year - or faster than most of the rest of Western Europe. While the total population is now 3F million greater than in 1929, the economically active population is over 1 million smaller. With the gaps in the war generations, a decline in the number of women employed in agriculture and a prolongation of the school-leaving age, there are actually fewer workers today than 50 years ago. 25. The position would have been worse without immigration. Since the war over 800,000 Italians, Algerians, Spaniards, Germans, and others, in- cluding perhaps 50,000 French repatriated from Tunisia and Morocco, have joined the French labor force. The newcomers are now about 4% of the total. In addition, there is a large migration into France for seasonal employment not included in these figures. This imported labor has been of great help to the economy and provided an important element of flexibility: the bulk has gone to key sectors of the economy, thereby making possible the great postwar expansion of industry. When the growth of the economy slows, as it did last year, for example, the number of French unemployed remains insigni- ficant but immigration drops. The labor reserves of Metropolitan France are the under-employed of Italy, Algeria and Spain. 26. Probably one significant impact of the Algerian war has been on man- power. The number of men under arms, 800,000, is only 200,000 above what has been the normal size of the French armed forces for the last 50 years. However, the withdrawal of this 200,000 from the economy in 1956 contributed to the shortage of skilled labor which has existed most of the postwar period and which cannot be mitigated by immigrants who are mostly unskilled workers. 27. Because of the prolongation of schooling, the larger postwar generation will probably begin to swell the labor force only from 1965. The agricultural labor force is expected to decline by 400,000 from 1957 to 1961. This would merely help meet the increasing requirements of the non-agricultural sector during a period when there would still be no increase in the total labor force. Consequently, with the continuance of moderate growth over the next four or five years, new immigrants should continue to be needed. Beyond that, the increase in French labor force expected is moderate and should not be too difficult to absorb: some increase in the very low levels of unemployment and a drop in immigration are probably the most adverse consequences to expect. 28. In the meantime, with all its problems, the change from a static or even declining population during the inter-war years has helped introduce a dynamic element into the economy in raising investment requirements and in imparting a more optimistic cast to economic plans for the future. - 6 - State Role in the Economy 29. The French economy is a mixed public-private one with no clear-cut line between the two. Perhaps the most important tasks undertaken by the state are setting the growth goals for the economy, under the successive four-year plans of'MVodernization and Equipment", and taking measures towards their achievement. In part of the publicly-owned sectors the govern- ment provides the capital necessary. In the privately-owned sectors this is achieved by voluntary cooperation and governmental inducement. The private sectors are brought into the planning process and knowing what is planned for the rest of the economy are able to plan for a higher rate of growth for them- selves than prudence might otherwise have dictated. At the same time, the government can help influence investment decisions by its large voice in the disposition of investment funds and through its tax and other policies. 30. Ve are not in a position to comment on the net economic impact of the state role in the economy. On the whole, the modernization and equipment plans, as in the case of the Vanoni Plan in Italy, probably have contributed to making the French economy grow faster than it would have otherwise. 31. The nationalized or public sector, itself, now is relatively about as important as that in Italy or Austria. Official estimates are that state companies account for 70% of turnover in the energy sector, 59% in transport and communications, 36% in aircraft and automobile construction. State ownership includes the public utilities (post, telephone, telegraph, elec- tricity, gas, railways, the most important airline, the two most important shipping lines, radio, television), the tobacco and match monopoly, the major coal mines, potash mines, interests in petroleum, movies, airplane companies, and the Renault automobile plant. Public enterprises are domi- nant in finance. The government owns the Banque de France and the four largest deposit banks (Credit Lyonnais, Societe Generale, Comptoir National d'Escompte and Banque Nationale pour le Commerce et l'Industrie). There are a whole series of specialized public financial enterprises; in mortgage credit (Caisse Nationale et Caisses Pegionale de Credit Agricole), foreign trade finance (Banque Francaise du Commerce Exterieur). The government owns 34 insurance companies which handle a third to a half of the insurance busi- ness in France. It should be noted that government ownership does not necessarily mean government direction of policies and operations: manage- ment in financial institutions and concerns like the Renault plant has consid- erable independence, fully comparable to similar privately-owned companies. 32. State ownership of some economic enterprises dates back to the Ancien Regime when, for example, the existing china and tapestry enterprises of Sevres, Beauvais and Gobelins were created. After World War II there was a large extension of government ownership agreed to by all the main political parties. Since then perhaps the most important development has been in the field of oil and natural gas where companies, partly or wholly government- owned, are taking a leading part in exploration and exploitation in France and the Sahara. The present government has indicated a review may be con- templated of the government's participations in companies where it is in partnership with private capital. - 7 - Sectors of the Economy Industry 33. France is highly industrialized: industry (excluding construction) accounts for some 30% of employment and one-third of the national product and there is a wide range and diversity of products produced. The most important manufacturing industries are the metal-using industries, which account for about 40% of total manufacturing employment and output. Next in importance are textiles and clothing (22% of employment and 18% of out- put), chemicals, rubber and paper (9% and 12%) and food (11% and 8%). 34. Since the war there has been a great improvement in productivity in iron and steel and, in line with the change in demand, a shift to rolled, electrical and special steels, i.e. to more valuable products. Oil refining capacity, which was developed before the war by government initiative, has increased four-fold since 1938 and is completely up-to-date. Greattachnical improvements have also been made in industries such as automobiles (which surpassed 1 million units of output in 1958), aircraft and shipbuilding and chemicals. Thus, the neglect of the inter-war period has by now been made good. 35. French industry has access to ample domestic supplies of iron ore, bauxite, potash, salt, but depends on imports for all its requirements in rubber, raw cotton, most of its requirements in other vegetable fibers and raw wool, a large part of its requirements in lead, tin, zinc, copper and pulp wood. In 1955-57 industrial raw materials accounted for 29% of total imports, of which one-quarter came from the rest of the franc zone. 36. One of the major problems for French industry is the need to main- tain the quality and greatly increase the number of engineers, scientiste and technicians produced. The current four-year plan is making this one of its important goals. 37. The following table gives a quick summary of the energy position and prospects of Metropolitan France: - 8 - (In millions of tons of coal equivalent) 1961 Plan 1965 19-5 Objective Perspective Needs 120 142 165 Production in Metrooolitan France Coal and lignite 58 62 62-65 Firewood 4 3 3 Hydro-power 10 14 17 Nuclear energy - (0.2) 3 Natural gas (0.5) 6 9 Crude oil 2 3 3 74 88 97-100 Im-Ports Franc zone -4 17 40 Rest of world -g _72 120 142 165 38. There are several brief comments to be made on this table: coal is and is expected to remain the major domestic source of energy but only a small incroase in output is foreseen. Coal reserves are ample and should last about 150 years at current rates of output but most French coal seams are deep and difficult to mine, and the coal mines are likely therefore to encounter difficulties in the future in competition with other fuels. So far, however, the French mines have had less trouble than the Belgian and German mines. Hydro-power is expected to continue to grow, though by 1965 France may be nearing the end of the sites which can be exploited without appreciable increases in cost of production. Nuclear power is expected to begin during this period but still remains fairly unimportant. 39. The most significant new domestic development is the rapid expansion planned by the government-controlled companies for natural gas. This is to have a large impact in helping create new industrial centers in the agricul- tural southwest. 40. Overshadowing the natural gas in France is the discovery of oil in the last few years in the Sahara. Of the total imports of fuel, which cost around ( 600 million a year, over half has been crude oil from the Yiddle East. (The remainder consists mostly of coking coal and anthracite of which France has inadequate reserves and which are used mainly in the steel industry.) FRANCE NATURAL GAS PIPELINES -..a Completed - - - -Under construction Planned DUNKERQUE Fields LILLE 0 1/ CHERBOURG * ROUEN PARIS/ IPARIINANCY BREST (0 * STRASBOURG VIERZON NANTES O BOURGES DOLE *0 CHATEAUROUX 0 ,* CHALON s/SAONE MELLE 0 O LA ROCHELLE 0 MONTLUON 4* LYON LIMOGESO MONTALIEU ANGOUL0ME CLERMONT*FERRAND P110 NTAe St. ETIENNE *6 0 PERIGUEUX LE PEAGE GRENOBLE BORDEAUX LANq0N L--* LUSSAGNET BAYONNE MARSEJLLE TOULOUSE LACQ St. MARCET \ ....*,,,I*. This map does not show secondary branches which will carry natural gas to all major centers located near the main pipelines. JUNE 1959 IBRD-596 - 9 - 41. According to official estimates, French Saharan oil output is expected to grow from 0.4 million tons in 1958, 1.6 million tons in 1959, to 20 million tons in 1963 and to at least 30 million tons (40 million tons in coal equiva- lent) in 1965. This would about eliminate any non-franc oil imports. (One pipeline with eventual capacity of 14 million tons of oil a year is under construction from the central Algerian oil field, Hassi Messaoud, to the port of Bougie and is to be completed this summer. On another pipeline of similar ultimate capacity through Tunisia to evacuate the eastern Saharan oil, pipe-laying is to begin this summer.) 42. Consequently, while total imports of fuel are expected to grow, the imports from outside the franc zone are expected to drop, and to be largely restricted to coal. The foreign exchange cost of fuel imports by 1956, according to plan, could therefore drop to around %4300 million a year. Ariculture 43. While agriculture has lost the preponderant position which it occupied in the economy to around the first Vorld War, it is still relatively more im- portant than in the other major Western European countries outside of Italy. In the last few years agriculture (including forestry and fishing) has accounted for 26% of employment, 14% of the national product and 15% of exports. 44. Livestock and its products are over three-fifths of total agricultural output. There has been a great deal of progress in recent years in grassland managvement but an OEEC technical report estimated that the carrying capacity of French pastures could still be doubled applying known techniques. 45. The other two major products of French agriculture are wheat and wine. Wheat growing, mainly in the North, accounts for 10% of the total value of agricultural output. Yields are comparable with those of other efficient producers. 46. Vineyards account for 8 to 9% of the value of agricultural output. Quality and yields are probably the highest in the world but in recent years the industry has been beset by difficulties, having had to face large surpluses in some years and crop failures in others. 47. French agriculture is heavily protected and assisted by the govern- ment. Imports from foreign countries are subject to high tariffs, strict quotas and price equalization fees and most of the foodstuffs imported are state-traded. Export subsidization was extensive until recently. Prices of most farm products are regulated in some way at one or more points along the channels of distribution and several agencies have been set up for the handling of individual products. There are substantial tax concessions on farm machinery, fuel, fertilizers and feed. Most of the food subsidies were eliminated recently, however. - 10 - 4S. About three-fifths of farm credit is provided by a state-supported farm credit system. Other government programs for agriculture include the consoliCation of holdings, land reclamation and drainage, subsidized up- rooting of vines, piping of water to farms, rural electrification, housing, roads, etc. The French government, aside from subsidies, has been devoting proportionately about as much to the development of agriculture as other Western countries. TransDortation 49. France has a well-developed transportation system and excellent ports. War damage has been made good and modernization has greatly improved the efficiency of the system. 50. The railroads are the backbone of internal transport: they carry almost two-thirds of total inland traffic (in ton-kilometers). Postwar improvements include extensive electrification, the relaying of track, the acquisition of modern rolling stock and other equipment, and the abandonment of uneconomic lines. These improvements have made possible great economies in fuel and labor. 51. The road network is one of the most comprehensive in Europe, but is not well suited to heavy traffic. Attempts to reduce road competition for the benefit of the railroads do not appear to have been successful. The number of motor vehicles has probably doubled since the war and in relation to population is one of the highest in Europe. 52. The extensive network of waterways has received little investment for many years. The principal goods going by water are coal, petroleum, and buildi,Ig materials. In view of the importance of water transportation to the steel industry, major improvements in waterways are under considera- tion and t7e Moselle canal linking the North with the Ruhr is already under construction. Construction 53. Housing is still a sore spot. Rent control, which has been in exis- tence since 1914, has been not only an obstacle to badly needed expansion but has also discouraged adequate maintenance of existing houses. 54. Since 1953, the rate of construction of houses has been increasing steadily under the stimulus of government subsidies, credits and other benefits to contractors, compulsory housing construction for workers, exemption of new houses from rent control. In 1955, the target was fixed at 300,000 houses per annum. The total completed in 1957 was 274,000; in 1958, 290,000; and the forecast for 1959 is 300,000. The stabilization program of 1958-59 included measures to eliminate a large part of the remaining restrictive effect of rent control over a 2 to 9 year period. However, it is still likely that housing will remain a major headache for some years to come. One estimate suggests that the rate of 300,000 new lodgings per annum would have to be maintained for 20 to 30 years to meet all the housing needs of the population. - 11 - Internal Finance Public Finance 55. As in other countries the budget now is relatively much more important in the economy than prewar: expenditures are equal to around 21% of gross national product compared to around 12-15% before the war. Transfer payments through the social system equal an additional 9% of GNP so that about 30% of gross national expenditures pass through the government accounts. Since the government now assumes an active responsibility for the equipment and moderni- zation of the economy this affects both the budget and the credit policy of the central bank. The 1959 Initial Budget (in thousand billion francs) Ordinary Civil Expenditures Public Debt 0.5 Government services 1.3 Interventions in the economy 1.1 2.9 Military Expenditures Ordinary 1.0 Equipment, etc. 0.6 Pensios, etc. 0.2 1.8 Investments and Capital Expenditures hidaft Public works 0.1 lhvestt6nt Subveticns ahd participations 0.5 Payment for War Damages 0.2 0.8 Treasury - Outside of Budget Consolidation of loans for construction 0.2 Loans of Fund for Modernization & Equipment 0.3 Moderate Pent Housing Loans 0.2 0.7 Total Charges 6.2 Expected Receipts 5-6 Cash Deficit, "Impasse" 0.6 - 12 - 56. Perhaps one of the most significant points in the foregoing table is the relatively small amount needed for debt service since the burden of carrying the public debt has been cut by inflation. In 1929, for ex- ample, service on the public debt amounted to around 40% of total public expenditures compared to 8% budgeted for 1959. This does not, however, make any allowance for the fiscal exemptions given to holders of the pub- lic debt which have been very generous in recent years. The two major recent loans in 1952 and 1958, for example, were "index" loans with the value of amortization tied to the price quoted for the gold Napoleon on the Paris Bourse, and with interest payments receiving sweeping tax exemptions. These exemptions not only include the traditional exemption from the proportional tax on income from securities but also from the personal progressive surtax. This latter privilege for individuals in the higher surtax brackets makes the nominal interest rate of 3V1% equivalent to a return of around 11% on other investments. 57. The "interventions" cover a mixture of items: transfer payments (such as payments to veterans, war victims, family, maternity and old age assistance), economic subsidies, such as subsidies to agriculture, and railways. It is the declared policy of the present govern- ment to cut these as far as possible, particularly the latter category. The 1959 budget, in fact, represents a cut of some 70 billion francs over the 1958 figure. 58. The various investment and capital expenditure items listed above come to almost one-quarter of total expenditures. In general, over the last five or six years public funds made available for investment through the various Treasury accounts have been equivalent to around 25% of the total gross investment in Metropolitan France. The National Institute of Statistics and Economic Studies has estimated that the State directly or indirectly (through subventions in financing or grants) provokes around 60% of the total investment in the metropole. (The sector destination of the 1959 items is given in a table in the fppendix.) 59. France, in common with Italy, Spain and Portugal, continues to rely mostly on indirect taxes. The estimated yield from the different kinds of revenue in 1959 is as follows: Thousand billions of francs Taxes on: Consumption 3.3 Income 1.5 Capital 0.3 Other receipts (including fines) 0.4 Total 5.6 - 13 - 60. The government plans to introduce a comprehensive tax reform shortly. The Finance Minister's proposals include the replacement of the two existing income taxes (the proportional and progressive tax) by a single progressive tax to be levied, as much as possible, at the source, and the abolition of fiscal privileges of some industries and provision for temporarily accelerated amortization by industries that are particularly vulnerable to foreign competi- tion. 61. The current receipts of the central government normally exceed its current expenditures: in 1959, receipts are estimated at 5,600 billion francs and current expenditures at 4,700 billion. However, the total of investments and other capital items exceed the 7current surplus" and the Treasury has to find financing for the cash deficit remaining (or "impasse"). (The counter- part of U.S. aid was applied directly or indirectly to investment items. It was equivalent to 17% of total receipts, including counterpart, in 1949, dropped steadily to 3% in 1955, and has been negligible since 1957.) The "impasse" is partly financed from borrowing from the public and from funds under the control of the Treasury - the Treasury acts as cashier and bank for local governments, the savings bank system, the national railways, the postal checking system, the Credit National, etc. Any remainder must be financed in the last resort from the Banque de France (see table in Appendix). 62. The "impasse" was manageable, though not really comfortable, in 1954 and 1955 at around 600 billion francs and the Treasury was able to cut down unpaid claims against the government and the amount of credit it had out- standing from the central bank. The situation deteriorated in 1956 when expenditures jumped by 500 billion francs due to an increase in social bene- fits and military expenditures. The "impasse" exceeded 1,000 billion francs in 1956 and 1957. The Treasury succeeded in getting through 1956 with the help of a market issue but there had to be large-scale resort to the Banque de France for financing in 1957. The position was retrieved during 1958 and improved for 1959, as will be discussed below in the section on Stabilization Programs. Money and Credit 63. In France, as in Italy and Austria, the largest part of the banking system is publicly owned. 64. Around half of the total money supply is composed of currency and coinage. Expansion of ordinary bank lending thus can occur only with an equal expansion of currency issue by the Banque de France. In addition, there are a series of controls over bank credit including ceilings on rediscount facilities at the Banque de France, individual authorization of large bank credits by the control authorities, etc. Clearly the mone- tary authorities have effective control over the volume of credit made available to the non-governmental sector subject to two limitations: they cannot control the willingness of people and enterprises to hold cash balances which depends in large part on faith in the currency. Also, they have to take into account priorities granted by public policy. FRANCE WHOLESALE PRICES, COST OF LIVING, AND MONEY SUPPLY (INDEX, 1949=100) 350 350 QUARTERLY 300 30C MONEY SUPPLY 250 25C 200 20C COST OF LIVING (Paris) • •. 150 150 ..... 50 .-. -.....-....I5 "4WHOLESALE PRICäE 100 10C 50 ' ' ' ' ' ' ' ' ' ' ' ' 50 l 11 lit Iv l 11 111 iv l 11 111 Iv I l 1 11 I l 1 111 tv l 11 111 tv l 11 111 Iv 1 1l 111 Iv l 11 111 I iv l V 11 i 1 il11 Iv 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 FRANCS PER NAPOLEON (FREE MARKET RATE) (THOUSANDS OF FRANCS) 6 6 QUARTERLY 5 5 4 4 3 3 2 2 l t111 Ivl 11 11 ti l ' f f I i v IV IIl 111 iIV l 11 i1 IIV IIl 1111 IV I l li 1V Il 111 Iv I 11 Ill II l1l Iv I 1 111 IV 6/10/59 1949 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1504 IBRD- Economic Stoff - 14 - 65. Money supply increased at around 11% per year from 1952 through 1956: luckily, for most of the period this appears to have been a rate which did not exceed the increased need and desire of people and enterprises to hold larger cash balances. (By 1956, money supply was 33% of GNP compared to 41%, prewar.) The expansion in money supply resulted from the Banque de France's financing housing construction, mostly (and secondarily, the nationalized industries), and from the other banks keeping pace in financ- ing the growth of activity elsewhere in the economy (see Appendix table). Short-term interest rates were kept relatively low by the Banque de France encouraging the latter expansion. 66. The use of central bank credit creation to finance investment requires some explanation. Housing is mostly financed through medium-term loans from two public institutions, the Credit Foncier, which sells bonds to get its money, and the Caisse des Depots et Consignations which centralizes the sav- ings of the savings bank system. The need of the Treasury for money forced these institutions to lend to the Treasury and to get money for housing by rediscount at the Banque de France. 67. As a result of the 1957-1958 stabilization program, the use of the Banque de France for financing housing and the nationalized industries was reduced. Under the 1958-1959 program, this practice has been stopped. Finance of Investment 68. In financing investment in France the important sources in 1958 were: Self-finance 49% Government 23-o Medium-term banking credits 10% Capital market 92- Public specialized financing institutions 8% Total 100% 69. The government and the nationalized industries usually secure 40-50%o of the new capital raised by public issues. This is about the same propor- tion as prewar. Part of the present government's program is to reduce the demand of the government and its industries on the capital market to try to make it more important as a distributor of capital within the economy. The capital market is highly developed as an organization and has withstood surprisingly well the postwar inflation. In recent years, the volume of issues, while below the twenties, has been about as great as prewar. The main change has been a very large shift from fixed-interest securities to shares. - 15 - External Accounts Franc Zone 70. France is the center and most important member of the franc zone. The franc zone includes Metropolitan France, Algeria, the other areas politically linked to France (except French Somaliland), and the independent nations of Morocco, Tunisia and Guinea. (See Appendix for complete list.) This area is surrounded by a common foreign exchange control (which, however, is administered independently by the associated independent nations). Current and capital foreign exchange transactions take place freely within the zone except for a control on movement of capi- tal instituted by Tunisia and Morocco in the last few months. The foreign exchange reserves of the area are held by the French Treasury's Exchange Stabilization Fund and the Banque de France. 71. The banks of issue in the rest of the franc zone maintain their French 'ranc reserves in accounts with the French Treasury held in the Banque de 7rance. In order to maintain free conversion within the area the French 2reasury grants the local banks of issue overdraft privileges as required. 72. The banks of issue are now all members of the Monetary Cormittee of he franc zone, which is supposed to coordinate the monetary policies of the :one. It was also decided at the French Community meeting in Paris in May .959 to set up a High Council of Credit to coordinate credit policies in the ommunity. In actual practice since most of the commercial banks in the rest f the franc zone are branches of French banks, monetary and credit policies we determined by conditions in the French money market. 3. Trade moves freely within the area under the protection of common rade and exchange arrangements. Most of the area is, in essence, in a ustoms union with France. The major exceptions are the independent coun- .ries, and the countries which are bound to non-discrimination by inter- ,ational agreement - the U.N. Trusteeship Territories and the states of Iquatorial Africa. The independent countries receive and give preferential Iariff treatment to other countries of the area. 74. About two-thirds of the trade of the rest of the franc zone (RZF) countries is with France. The share of the RZF in total French exports was over a quarter in 1938. Since the war, it has fluctuated a good deal from 30% to 44% of the total, depending apparently on the competitiveness of French exports elsewhere. In 1958 it was 37% of the total: the RZF ab- sorbed 53% of French exports of manufactured consumer goods, 40% of machinery, and equipment, and 47% of food products. 75. Imports from the RZF were around a quarter of total French imports in 1938 and since then have maintained this share. These imports are mostly foodstuffs (and provide about two-thirds of French food imports) but are coming to include a growing amount of minerals. Algeria continues to account for over 40% of exports to the RZF but its share in imports has declined from 40% to about 30%. The other significant developments since the war are the increased importance of West Africa and the greatly reduced importance of Indo-China. - 16 - 76. The large public investment effort made by France in the RZF since the war has already been mentioned and estimated at over 5 billion equiva- lent. Most of this has been in the form of grants or direct expenditure of public funds. There has also been a large flow of private capital but of considerably smaller total magnitude. Very little non-French capital has been invested in the RZF, although recently more interest has been shown both by non-French investors and the potential recipient areas in welcoming such investors. 77. The data are just not available to give a full picture of the economic relationship between etropolitan France and the RZF. There is no balance of payments, only partial data on monetary transfers within the zone. These show only a large volume of undifferentiated transfers of public funds from France to the RZF for investment, current expenditures, etc., and a large volume of private transfers in the reverse direction for remittances of salaries, profits, dividends, etc. (See table in Appendix). Including Algeria, public transfers to RZF in 1957 amounted to 640 billion francs; excluding Algeria, they amounted to 290 billion francs. 78. Since the RZF has consistently been running a balance of payments deficit with the world outside of the franc zone of I100-3C0 million equi- valent a year, France has had to supply the necessary foreign exchange to meet this deficit. Balance of Payments 79. With the close relationship between France and the RZF, balance of payments data are available only for transactions with the world outside the franc zone. Both Metropolitan France and the EZF have run a deficit on current account with the rest of the world in almost every year of the postwar period. Until 1955, U.S. aid, in one form or another, has been important in helping offset the deficit resulting from the other transactions. 80. The following table gives the broad outlines of the development of the balance of payments during the last few years beginning with 1955 when a temporary equilibrium was reached on France's current account. (The Indo- Chinese war was over and negotiations were well on the way to give Tunisia and Morocco independence. Fighting in Algeria was just about to start.) U.S. grants, military expenditures in France, and offshore purchases amounted to over $l billion so that France was able to meet the current account deficit of the RZF, repay long-term debt, reduce her EPU debit balances, repay the IMF, build up private assets abroad and still add $600 million to her foreign ex- change reserves. 81. The succeeding three years were years of difficulty. The increase in inflationary pressure led to an increase in imports, a stagnation of exports, an increase in the deficit on services account, and a flight of capital using the usual devices. With U.S. aid and expenditures in France rapidly decreas- ing, the deterioration had to be met using foreign exchange reserves, trade restrictions, devaluation of the franc and utilizing the EPU and IMF. In 1958 with special foreign help and other measures it was possible to scrape through the year and add +.200 million to the official reserves. - 17 - Balance of Payments of Frpnc Zone* (In billions of dollars) 1955 195 1957 1958 (Est.) A. Metropolitan France , Exports f.o.b. 3.2 3.3 3.3 3.2 Imports f.o.b. -3.1 -4.1 -4.3 -32 Trade Balance 0.1 -0.8 -0.9 -0.3 Net invisibles, excluding foreign government payments -0.1 -0.4 -0.6 -0.4 Balance on current account 1/ -1.2 -1.5 -0.7 B. Rest of Franc Zone Exports f.o.b. 0.5 0.4 0.4 n.a. Imports f.o.b. -0.5 -0.5 -0.6 n.a. Trade Balance -0.1 -0.1 -0.2 n.a. Net invisibles l -0.1 -0.1 n.a. Balance on current account -0.1 -0.2 -0.3 -0.1 C. Total Franc Zone Current Account Balance -0.1 -1.4 -1.8 -0.8 D. U.S. Aid 0.4 0.1 0.1 0.1 Expenditures by Foreign Governments in France 0.7 0.5 Q: 0.4 1.1 0.6 0.5 0.5 E. Official Loan Repayments -0.1 -0.1 -0.1 -0.1 Foreign Private Capital 0.1 0.1 0.2 0.1 Private Assets -0.1 -0.1 0.2 0.1 EPU Drawings or Repayments (-) -0.1 0.1 0.2 0.3 IYMF Drawings or Repayments (-) -0.1 -0.1 _.3 0.1 F. Sub-Total of D and E 0.7 0.7 j. 1.0 G. Net Change in Foreign Exchan&e Reserves 0.6 -0.7 -05 0.2 Items may not add to totals because of rounding. i/ Less than 50 million. ' Excludes transactions within Franc Zone. - 18 - Foreign Trade 82. More than half of French trade with foreign countries has traditionally been with Europe, but Europe's share in exports has always been larger than in imports. Imports from non-European countries (particularly raw materials from the sterling area) have always exceeded exports. Thus, the surplus in trade with Europe offsets part of the deficit with non-European countries. This pattern still persists. 83. France imports mainly raw materials, semi-manufactures and fuel. These made up two-thirds of her total imports 30 years ago and do today. The most important changes here have been the large increase in imports of oil (now 17% of total imports), and the relative decrease in textile raw materials imports. 84. Except for imports from the franc zone, French imports have been subject throughout the postwar period to quantitative restrictions. But, France parti- cipated, and at times led, in the movement of trade liberalization within OEEC. By May 1951 she had freed 75% (measured in reference to trade of 1948) of her imports from OEEC countries. With a flare-up of inflation, liberaliza- tion was temporarily suspended for a time. By April 1956, it was back to 82%. In June 1957 all liberalization was suspended. Then in January 1959 it was reinstated and raised to 90% (on 1948 basis) for the OEEC countries and their dependencies and to 56% for imports from the U.S. and Canada. QIZtas for im- ports from other countries of the European Economic Community of commodities not included in the liberalization lists were increased by 20% or to an amount equal to 3% of national output, whichever was greater. 85. There have been some striking changes in the relative importance of the various exports. In terms of volume it is probable that textiles and leather goods are now less than half of 1929 while steel, machinery, motor vehicles and chemicals taken as a whole are probably nearly three times as large as in 1929. It is likely that further expansion of French exports to foreign coun- tries will have to be mainly of the latter group. It is this sector that has benefited most from modernization and renovation since World War II. - 19 - III. PROSPECTS 86. In the immediate future, the economic prospects of France depend on the outcome of her latest stabilization program. For the longer term, special attention also must be paid to the possible financial burdens for Algeria, France's relations with the other countries and territories linked to her, her position in the European Economic Community, and her prospects for further economic growth. One important problem runs through all of these, however, short or long-run, and that is how to reconcile objectives and the economic means available. It appears that the constitution of the Fifth Republic does give sufficient power to the executive branch so that it should be able to do this successfully. Stabilization Programs 87. In 1956, as was mentioned several times above, renewed pressure on the economy developed. While some anti-inflationary action was taken, it was insufficient. Prices rose by 15%; exports did not grow while more im- ports were sucked in and foreign exchange reserves dropped by some ,1,200 million. More was done at the end of 1957 in a more comprehensive program supported by special financial assistance, totaling (655 million from the International Monetary Fund, OEEC, and U.S. government deferment of some debt repayments. The program included measures to curtail access to the Banque de France for financing housing and the nationalized industries and to hold down the government's cash deficit through cutting back expenditure plans and introducing drastic tax increases. 88. Uith the aid of this program and a successful long-term indexed bond issue it was possible to go through the year with practically no increase in Treasury borrowing from the Banque de France. Prices remained stable during the last three-quarters of 1958. However, the program was not suf- ficient to bring the economy into balance; import restrictions had to be maintained and, even so, the foreign assistance was mostly absorbed in financing a balance of payments deficit. In adcdition, since it was widely recognized that not enough had been done, large speculative flights of capital occurred in the last quarter of the year. With the European common market scheduled to begin in 1959, action to make possible the liberalization of imports was imperative. 89. As Jacques Rueff pointed out: in 1958 "... the game was up. However popular the expansion had been, no qovernment, whatever its aspirations or its political complexion, could any longer escape from the necessity of changing the policies which had made the expansion possible. A thorough- going reform of the public finances was indispensable." This was recognized by the de Gaulle government and a new stabilization program was initiated at the end of 1958 to reinforce what had been done a year earlier. 90. Subsidies were cut, the government's aid to the budgets of nationalized enterprises was reduced, tax rates were increased further. Provision was made for financing part of the capital needs of housing and nationalized industries through the budget, eliminating recourse to the Banque de France. The cost of the fighting in Algeria and the large investment effort contemplated for - 20 - Algeria, for which around 90 billion francs is initially being allocated this year, are both taken care of. As a result, while Treasury expenditures for 1959 are to be 650 billion francs more than in 1958, the increase in tax receipts is expected to hold the deficit to 590 billion francs. It should be possible to finance this amount without recourse to the Banque de France. 91. Action was also taken to introduce more economic pricing into the economy: postal and railway rates and the charges of most of the nationalized industries were raised, the exemption of some commodities from the "value added" tax was removed and rent control is being gradually eliminated. 92. "Indexing" of private claims and house rents was made void. The link between wages and the cost of living index was maintained only for those workers paid the legal minimum wage. Social security charges were increased which improved the financial position of the system and put it into surplus. 93. With all of these internal measures and the exchange rate depreciated from 420 to 494 francs to the dollar, it was possible to make a sweeping liberalization of imports and establish non-resident convertibility of the French franc. 94. To back up the program the French government obtained a three-month standby credit of ,235 million from the central banks of Belgium, Germany, U.K. and the Netherlands and the BIS and a (200 million standby for two years from U.S. commercial banks. The first standby was utilized only in part; that part has been repaid and the whole cancelled. The second standby is still open but the intention is not to use it. 95. So far, public finances are upt to expectations, the price level has increased less than 5%, the current balance of payments has improved dras- tically in spite of the trade liberalization. 96. There has also been a sizeable swing in the reserve position. In the first five months of 1959, the authorities acquired around 6:l billion of foreign exchange, mostly from reversal of "leads and lags" and other repatriation of legally-held balances and capital abroad. Some 350 mil- lion of this has been repaid to the commercial banks to allow them to rebuild their working balances abroad to the normal level of around 150C million, around (180 million went for debt repayment, and the remainder has gone to reserves. 97. There appear to be two major challenges to the continued success of the stabilization program. One is coming from labor in the public sector as a demand for higher wages, stimulated by the drop in real income sus- tained by the workers from a drop in their over-time earnings. The second is from pressures for more expansionary policies, stimulated by the slow- down in growth over the last year. However, barring any major catastrophe, the chances are good that no major breaches will be opened in the stabiliza- tion line. - 21 - Economic Growth 98. The current Plan of Modernization and Equipment (1958-61) lays down as an objective, growth at about the same rate as set by the previous plan: that is, to increase industrial output by 30-35% over the 1956 level and agricultural output by 20%. Private consumption is to increase by a quarter, investment somewhat more, but government consumption by only an eighth - on the assumption that peace in Algeria will make possible a cutback of military expenditures by about a third. The Plan expects that France by 1961 will be able to build up an annual surplus on current account of around 4370 million with the rest of the world, sufficient to meet debt repayments. 99. While the successful record of the previous plans in forecasting the major objectives reached create a presumption that this one will be equally successful there are several new doubtful factors. If a cutback in military expenditures does not come about during this-,period, something else will have to be cut. In the past similar circumstances would have led to a bout of in- flation; now, either private consumption or investment are more likely to be cut directly. If the latter, growth will suffer. 100. Another important new factor is the higher priority now given to stabilization. In the past, expansion had priority; if growth faltered internal demand was stimulated. Now France has recognized the importance of achieving external balance; indeed, the importance of achieving a large enough foreign surplus to service the large external debt payments coming due from 1960. Consequently, France will have to restrain her overall domestic demand temporarily and let the pace of expansion become dependent on the growth of exports - i.e. like the policy pursued by Germany, Italy and Austria in the past. 101. France has put herself in a position to export more; the degree to which exports increase will depend in large part on whether her markets are expanding themselves. In this respect, the timing of her stabilization may prove fortunate: she still has the benefit of lower primary products prices while her markets in Europe and the U.S. have entered a phase of recovery. If the return of confidence in the franc is sustained, repatriation of the large amounts of capital still held abroad and dishoarding of gold at home should at some point further strengthen the French external position. Relations with Rest of Franc Zone 102. There is little that can be said definitely on the future of France's relations with the rest of the franc zone countries. 103. The Saar has been in a customs union with France since 1948 but is to become a part of Germany at the end of this year. Lest Germany is al- ready paying the costs of administration. Almost half of France's trade with the Saar is in products covered by the Iron and Steel Community which flow freely in any case. Other adjustments have been gradually under way for several years so the transfer should not have major repercussions on France. - 22 - 104. Since World War II there has been a rapid evolution in the overseas areas. Indo-China, Tunisia, Yorocco and Guinea have become independent. Togo and the Cameroons are to become independent next year. The rest of the former French African territories south of the Sahara, except for French Somaliland which elected to remain an "overseas territory", have become autonomous republics and, in a free vote with universal suffrage, have associated themselves with France in a French "Community". The "Community" led by France has jurisdiction over foreign policy, defense, currency, common economic and financial policy. The institutions of the "Community" are still being established and the relationships between France and the autonomous republics are still being established and the relationships between France and the autonomous republics are still to be worked out. 105. It is quite likely that economic relationships between France and the new African states as a whole will remain close. The economies of the latter are so dependent on France that there will be a strong pressure in this direction. However, initially it is quite possible that the cost of the various measures of aid given by France to these countries will de- crease compared to the past: whereas African representatives used to have a voice in the French parliament in determining the volume and direction of aid, now, the decisions will be purely French. 106. The relations between France and Tunisia, Morocco, Guinea, Laos, Cambodia and Viet-KYam are still in flux. Then, finally there is the big question of future relations with Algeria with its nine million Moslem and one million European inhabitants. Financially, the French have now arranged to bear the drain of the fighting, at its current intensity, as well as a fairly large investment program there. Cessation of the mili- tary operations, however, may not mean a net reduction in the costs borne by France but their use for more productive purposes. France and European Integration 107. France has played a leading part in the movement towards European integration, both in establishing the Iron and Steel Community in 1952 and the European Economic Community in 1959. The first has removed restrictions on trade in iron, steel and coal and equalized freight rates on these commodi- ties within the Community consisting of France, Germany, Italy and Benelux. The High Authority of the Community also borrowed money in other countries, mostly the U.S., for investment in the industries covered by the Community, of which the French received a share. The Community has undoubtedly helped create a more economic environment for the industries covered. 108. The Common Market has just come into existence. It has had a useful impact in helping impress the need for carrying through the 1958-59 stabili- zation program and in adding a small additional measure of liberalization to the European Economic Community countries. This latter was, however, overshadowed by the liberalization of imports from the OEEC and dollar areas. All of this has pried open the door to a sizeable draft of competition from outside. The stimulus that this can give to an economy, as shown by Germany and Italy in similar circumstances, should be an important asset to France - 23 - in the immediate future. The fact that duties are to be removed on imports from the other common market members over a 12-year period is already casting its shadow before in spurring French industry to consider how to meet the increased competition. 109. The obligations which France has undertaken under the Treaty are far-reaching and call for a sustained effort to continue to modernize and rationalize production and to maintain internal and external stability. Such an effort, however, is needed in any case if the French objective of a strong and stable economy is to be realized and the fact that coordination, consultation and mutual help among the members is envisaged instead of rivalry should facilitate the French task. External Debt 110. France's debt record is excellent. Her present external debt is postwar in origin. The long-term debt totals 02.9 billion, of which (2.3 billion is in dollars and gold and the rest in European currencies. Of the dollar debt, 1.6 billion is to the U.S. government and its agencies. The U.S. government and the Export-Import Bank agreed to defer receipt of the principal payments and some interest payments on the bulk of this debt falling due in 1958-1960 as a means of aiding France's 1957-58 stabilization program. The Minister of Finance announced in May 1959 that France does not intend to take advantage of the possibility of deferring the remaining Export-Import Bank service payments in 1959 and 1960. 111. The service of $226 million on the total existing debt in 1957 was almost 5% of Metropolitan France's current external earnings outside of the franc zone; it was about 4-f% of Metropolitan France's exports to the whole world, including the franc zone. Private interest and dividends remitted abroad amounted to just under $100 million; these receipts from outside the franc zone were over 1`200 million. 112. France's debt repayments in the next few years are sizeable - largely due to the scheduling of repayment of her EPU debt over a maximum of seven years and the repayment in 1962 of the Export-Import Bank deferred principal payments. Debt repayments on the existing debt will be (290 million equiva- lent in 1960, 316 million in 1961, .323 million in 1962 and then drop off. (At the peak of 1962, making the ultra-conservative assumption of no increase in exports over 1958, total service on existing debt would be equivalent to almost 6% of 1958 total exports and 10% of 1958 total exports outside the franc zone.) Under her arrangements with the Fund, France is to repurchase y262.5 million in 1960 and "131 million in 1961 but this is, of course, sub- ject to change if the schedule proves impracticable. 113. In any case, the absolute size of the total repayments due in the next few years is large enough to justify France's considering borrowing abroad to aid in meeting the hump in amortization payments. But, France's postwar role of debtor is unusual and not fundamentally in character. It is true that she still has many grave problems to resolve but they are not beyond the capacity of France to meet successfully with her economy strengthened and with her firmer economic management. The ability of France to meet her external obli- gations, existing and contemplated, is not in question. LIST OF TABLES No. 1 Distribution of Labor Force, and Percent of Total 2 National Product and Expenditure at Current Prices 3 National Product and Expenditure at 1954 Prices 4 Treasury Expenditures by Major Categories; Geographical Distribution of Expenditures under 1957 Finance Law 5 1959 Budget and Treasury Investments and Capital Expenditures by Sector 6 Financing of Treasury "Impasse" 7 Money Supply and Its Determinants as of December 31 8 Commodity Composition of Imports from Outside Franc Zone 9 Exports Outside Franc Zone 10 Geographic Distribution of French Trade with Franc Zone; Exports and Imports 11 Geographic Distribution of French Trade Outside Franc Zone; Exports and Imports 12 Coal and Steel Community 13 Franc Zone 14 Payments between Metropolitan France and the Rest of the Franc Zone (RZF) 15 Franc Holdings of Banks of Issue of Rest of Franc Zone EXTERNAL PUBLIC DEBT APPENDIX APPENDIX TABLE 1 Distribution of Labor Forcei/ 193 1936 194 125L 1957 (In thousands) Agriculture 7,690 7,170 7,484 5,213 5,039 Industry 7,000 5,740 6,102 6,840 7,159 Transport 1,150 1,040 1,288 1,005 1,002 Other services 5,120 2,250 5,126 5,868 6,246 Activities not adequately described 200 200 520 240 - Unemployed 450 860 n.a. 32 _ 150 Total 21,610 20,260 20,520 19,493 19,596 Percent of Total 1931 195 1957 Agriculture 36 26.7 26 Industry 32 35.2 36.5 Transport 5 5.1 5 Other services 24 30 31.8 Activities not adequately described 1 1.2 - Unemployed 2 1.8 0.7 Total 100 100.0 100.0 1/ Differences in classification and the inaccuracy of some of the census figures may exaggerate the changes which have taken place during this period. While the census of 1954 showed a total of 19,169,000 in employment the official survey of employment based on questionnaires showed a total of 20,490,000. APPENDIX TABLE 2 National Product and Expenditure At Current Prices (Billions of Francs) 195 1952 195 1956 195 1. Private consumption 6,770 9,752 11,479 12,713 13,947 a. Food 2,821 3,810 4,339 4,718 4,956 b. Clothing 991 1,361 1,497 1,640 1,829 c. Rent 221 336 500 567 640 d. Durables 314 577 784 916 1,064 e. Other 2,423 3,668 4,359 4,872 5,458 2. Public consumption 1,265 2,185 2,204 2,691 2,986 a. Defense .. 981 890 1,251 1,413 b. Civil .. 1,204 1,314 1,440 1,573 3. Gross domestic fixed capital formation 1,515 2,322 2,881 3,256 3,765 a. Construction .. .. 1,589 1,739 2,052 b. Machinery and equipment .. .. 1,292 1,517 1,713 4. Change in stocks 210 193 125 208 174 5. Exports of goods and services 1,590 2,112 2,649 2,509 2,761 6. Less: Imports of goods and services 1.540 2,282 2,393 2_856 3.18 7. Gross national product at market prices 9,810 14,282 16,945 18,521 20,445 8. Subsidies 130 201 295 350 390 9. Less: Indirect taxes lZ¶Q 4.(2 2.811 3.07 3.462 10. Gross national product at factor cost 8,430 12,121 14,429 15,794 17,373 11. Net income to abroad 54 __ 95 108 120 12. Gross domestic product at factor cost 8,484 12,216 14,524 15,902 17,493 Source: OEEC Statistical Bulletin APPENDIX TABLE 3 National Product and Expenditure At 1954 Prices (Billions of 1954 Francs) 12L 1952 L95 1956 1957 1. Private consumption 8,995 9,921 11,353 12,077 12,778 a. Food 3,562 3,785 4,326 4,445 4,629 b. Clothing 1,169 1,308 1,498 1,622 1,733 c. Rent 409 420 459 472 498 d. Durables 418 556 797 900 1,004 e. Other 3,437 3,852 4,273 4,638 4,914 2. Public consumption 1,920 2,322 2,124 2,544 2,700 a. Defense .. 1,043 857 1,182 1,278 b. Civil .. 1,279 1,267 1,362 1,422 3. Gross domestic fixed capital formation 2,218 2,291 2,843 3,066 3,328 a. Construction .. .. 1,544 1,593 1,740 b. Machinery and equipment .. .. 1,299 1,473 1,588 4. Change in stocks 255 193 123 198 204 5. Exports of goods and services 1,755 1,924 2,639 2,416 2,503 6. Less: Imports of goods and services 1,682 2,100 2,410 2,747 2,884 7. Gross national product at market prices 13,461 14,551 16,672 17,554 18,629 8. Gross national product at factor cost 11,360 12,290 14,081 14,824 15,734 9. Net income to abroad 100 84 97 103 118 10. Gross domestic product at factor cost 11,460 12,374 14,178 14,927 15,852 Source: OEEC Statistical Bulletin APPENDIX TABLE 4 Treasury Expenditures by Major Categories Total Treasury Expenditures l/ (in billion Percentage of Total francs) Yilitary 2/Civil Current2/ Capital 1938 99 29 66 5 1949 1,968 19 41 40 1950 2,380 20 45 35 1954 3,840 31 46 23 1955 4,092 26 51 23 1956 4,617 29 51 20 1957 5,087 27 51 22 1958 5,537 26 53 21 1959 (financial law) 6,189 26 50 24 l/Includes "budgetary" expenditures, public investments outside of the budget and special accounts. 2/Pension payments and social security contributions made by the state for -the.military jrg inQ1udtd_uUdQr_1"CiZil u. - - - - - - - - - - Geographical Distribution of Expenditures under 1957 Finance Law (billions of francs) In In Rest Metropolitan of Franc France Zone Total Functioning of civil services 2,514 117 2,631 Functioning and equipment of military services 1,110 359 1,469 Capital Expenditures 890 130 1,020 Direct and subventions (303) (39) (342) Loans, advances, war damages (587) (91) (678) Balance of special accounts (except F.I.D.E.S.) 1 20 13 Total Expenditures 4,628 626 5,2541/ .1/ This is not strictly comparable with the figure for total expenditures given above because of a somewhat different coverage of the special accounts. Source: La Zone Franc en 1957. APPEN-DIX TABLE 5 1959 Budget and Treasury Investments And CaDital Exrenditures by Sector (in billions of francs) Budget Loans Capital and Special Sector Benefiting Expenditures Advances Accounts Total Agriculture 641/ 44 14 122 Energy and mines lOO / 238 - 338 Transport & communications 943/ 34 - 128 Industry & commerce 26 33 - 59 Housing and urbanism 123 166 1796/ 478 Cultural & social equipment 178 1 - 179 Administrative equipment 21 - 1 22 Investment outside metropole 213-/ 25W - 238 Miscellaneous - 1 - 2 Total 821 552 194 1,566 Details may not add to totals because of rounding. Only the net requirement for funds of the Special Accounts is a charge on the Treasury, 39 billion in 1959. 1/ Includes 15 for 10% subsidy on agricultural equipment. 2/ Includes 19 for Fund for support of hydro-carbon prices. 3/ Includes 28 for Road Fund. Z/ Includes 6 for Indo-China. 5/ Includes 8 for Housing for Algeria. 6/ Of which 160 is consolidation. Source: Annex VIII, Ministere des Finances, Statistiques and Etudes Financieres, April 1959, pg. 386. APPENDIX TABLE 6 Financing of Treasury "Impasse" (In billions of francs) 1254 1955 1956 1957 1958 (Est.) Treasury Deficit (Impasse) -664 -662 -1004 -l10l -695 Treasury Financing: Treasury depositors l/ 188 275 340 283 201 Other Treasury accounts 2/ 128 106 -24 106 - Long or medium-term borrowing 142 182 527 119 294 Treasury bills held outside banks 218 247 136 49 110 Claims on the government -100 -157 -101 - - Treasury bills held by banks 167 93 81 43 11 Treasury bills held by Banque de France -14 27 116 -11 - Advance from Banque de France -65 -111 -71 452 79-/ 664 662 1004 1041 695 l/ Caisse des Depots et Consignations, local authorities and various state agencies (P.T.T., Credit National, Credit Foncier, railways, etc.). .2/ Operations of banks of issue in overseas territories, changes in balances of the Treasury and miscellaneous. 2/ Of which 75 rediscounts of "obligations cautionnees" received by Treasury in payment of taxes. APPENDIX TABLE 7 Money Sumnly and Its Main Determinants As of Decceber 31 (In thousand billion francs) 1949 1952 195 12,56 1957 135 Money supply 2.7 4.2 6.0 6.6 7.1 7.6 Time deposits l/ .1 0.2 0.2 0.4 0.4 Total 2.7 L 6.2 6.8 78. Credits of Banque de France To Government 0.9 1.0 1.0 1.0 1.5 1.5 To Economy (advances and rediscounts) 0.4 1.0 1.3 1.8 2.0 2.2 1.3 2.0 2.3 2.8 3.5 3.7 Credits of Banks To Government 0.3 0.4 0.6 0.7 0.7 0.7 To Economy 0. 18 2.0 2.2 2.6 2.8 1.1 1.7 2.6 2.9 3.3 3.5 Private deposits with Postal Checking System, Treasury and Coinage 0.2 0.4 0.6 0.7 0.8 0.9 Net official holdings of gold and foreign exchange 0.2 0.2 0.7 0.4 1/ 0.1 2.7 _-3 6.2 6.8 2 8.0 Items may not add to totals because of rounding. 1/ Less than 50 billion francs. FRANCE VALUE OF EXTERNAL TRADE OF METROPOLITAN FRANCE (BILLIONS OF US, DOLLAR EQUIVALENTS) 5 5 WITH FOREIGN COUNTRIES -4 4 IMPORTS 3 3 EXPORTS 0 0 3 - 3 WITH- FRANC AREA 2 2 0 0 7 7 TOTA. 6 0 5 5 3 -3 2 2 0 O '38 49 '50 '51 '52 '53 '54 '55 '56 '57 '58 '59 6/10/59 1508 IBRD -Economnic Staff FRANCE VOLUME OF EXTERNAL TRADE OF METROPOLITAN FRANCE (INDEX, 1949 = 100) 250 250 WITH FOREIGN COUNTRIES 225 225 EXPORTS 200 200 175- 175 150 150 125 - IMPORTS 5 125 --- 125 100 e 100 75 75 17 5 175 WITH FRANC AREA 150. 150 125 125 100 100 75 75 50 150 200 200 TOTAL 175. 175 150 150 125 , 1 25 100 e100 75 75 '38 '49 '50 '51 '52 '53 '54 '55 '56 '57 '58 '59 6/10/59 1509 IBRD - Economic Stoff APPENDIX TABLE 8 Commodity Comnosition of Imports from Outside Franc Zone (In percentages) 1928 1955 1 956 1957 15 Foodstuffs 16 10 13 9 10 Raw Materials & Semi-Manufactures 59 9 L5 45 42 Of which: Textiles 26 15 13 13.5 11 Steel 0.4 3.0 3.0 4.0 5.0 Other 32.6 32.0 29.0 27.5 26.0 Fuel 8 2 2 26 26 Of which: Coal 7 7 8 10 9 Petroleum, etc. 1 16 15 16 17 Finished Manufactures 17 18 19 20 22 Of which: Equipment n.a. 13 13 15 17 Of which: Machinery 3.0 10 11 12 13 Motor Vehicles 0.4 1.4 1.8 1.6 1.5 Consumer goods n.a. 6 5__ 5 Total 100 100 100 100 100 APPENDIX TABLE 9 Exports Outside Franc Zone 1928 1955 1952 1958 Foodstuffs Alcoholic beverages 3.5 3.6 4.6 4.0 Cereals Negl. 4.4 4.6 2.0 Other 6.5 7.6 4.8 5 Total 10.0 15.6 14.0 11.0 Energy Coal 1.5 5.1 3.0 2.3 Petroleum, etc. 43 -0 4.1 Total 1.5 9.0 6.0 6.4 Crude Materials Hides and skins 2.5 0.7 0.6 0.6 Textile fibers 5.0 4.7 5.0 3.7 Iron ore 1.0 1.5 1.7 (5.7 Other 4.0 5.5 5.2 ( Total 12.5 12.4 12.5 10.0 Manufactured Goods Textile yarns 4 4.4 4.0 3.5 Textile fabrics 17 3.8 3.2 3.2 Clothing 4 1.7 1.8 1.8 Chemicals 5 7.4 8.5 8.7 Steel 7 18.0 17.7 17.5 Metal goods 3 1.7 1.8 2.0 Machinery 3.5 8.0 9.0 10.0 Motor vehicles 2.5 4.0 6.0 8.6 Leather and products 4.0 1.2 1.3 1.3 Other 26.0 12.8 1 16.0 Total 76.0 63.0 67.5 72.6 Grand Total 100.0 100.0 100.0 100.0 Manufactured Goods 76 63 67.5 72.6 Semi-manufactures 28 35 34.5 33.4 Finished manufactures 48 28 33 39.2 Equipment 7 13.0 15 17.2 Consumer goods 41 15.0 18 22.0 APPENDIX TABLE 10 Geographic Distribution of French Trade with Franc Zone Percent of Total E=oorts 1928 1938 1956 1957 Algeria 44 46 40 45 Tunisia 10 12 9 6 Morocco 14 10 14 10 Indo-China 11 11 4 5 French West Africa 9 9 14 14 Other 12 12 19 20 Total 100 100 100 100 Im-oorts Algeria 41 39 29 29 Tunisia 9 7 5 6 Morocco 8 7 18 15 Indo-China 10 15 4 3.5 French West Africa 11 12 20 19 Other 21 20 24 25 Total 100 100 100 100 APPENDIX TABLE 11 Geographic Distribution of French Trade Outside Franc Zone Percent of Total Exports 1928 1938 1956 1957 Western Europe 74 74 68 67 Germany 13 8 15 16 Belgium 19 18 11 11 U.K. 19 16 9 8 Switzerland 7 8 10 8 Other 16 24 23 24 Eastern Europe 256 .5 U.S.A. 7 8 7 7 Other 16.5 12 21.5 22-5 Of which: Middle East oil producing countries - - Total 100 100 100 100 Imoorts Western Europe 47 43 47 46 Germany 10 9 13 14 Belgium 9 9 7 6 U.K. 11 9 7 6 Switzerland 2 3 3 3 Other 15 13 17 17 Eastern Europe a 2 2 2 U.S.A. 13 16 16 17.5 Other 12 8 34 33.5 Of which: Middle East oil producing countries Ne1. Nepl. 12 11 Total 100 100 100 100 APPENDIX TABLE 12 Coal and Steel Community Fillion Tons i21957 1958 I. Coal Production 238.9 247.9 246.4 (provis.) Of which France 55.4 56.8 57.7 " Output per manshift (Kg) 1,590 1,541 1,570 France (Nord-Pas-de-Calais) 1,228 1,506 1,499 Trade within Community 16.3 19.8 15.1 (11 mos.) Of which French imports 4.9 6.6 5.7 " exports 4.5 4.5 3.1 " Trade with third countries: Imports 22.3 44.0 29.4 " Of which France 5.4 9.7 4.6 " Exports 4.4 5.1 3.5 Of which France 0.5 0.9 0.8 Stocks at pit-head 7.1 7.3 24.7 Of which French 4.2 4.6 7.6 II. Coke Production 62.4 77.2 74.4 (provis.) Of which France 9.2 12.6 12.5 " Trade within Community 8.1 9.3 7.7 (11 mos.) Of which French imports 4.3 5.0 4 " Exports to third countries 5.2 5.0 3.0 " III. Iron Ore Production 65.3 87.4 Of which France 41.2 58.5 Trade within Community 9.4 14.3 Of which French exports 8.9 13.7 IV. Crude Steel Production 41.9 59.8 Of which France 10.9 14.1 V. Finished Steel Products Production 28.5 40.9 Of which France 7.6 10.0 19154 1957 Trade in Steel and Steel Products Within Community 4.2 5.7 Of which French exports 1.3 1.6 imports 0.03 1.2 With third countries Exports 6.4 9.4 Of which France 2.1 2.5 Imports 1.0 1.6 APPENDIX TABLE 13 Franc Zone The Franc Zone is a monetary concept. Included in the Franc Zone for the purposes of this report are those countries or territories which make their international payments through the Paris foreign exchange market or the French Exchange Stabilization Fund, maintain their foreign exchange reserves in French francs and whose transactions are considered to be in "resident" French francs. "Metropolitan France" Continental France and Corsica The Saar (to the end of 1959) The principality of Monaco Lleria Overseas Departments of the Relublic French Guiana Guadeloupe Martinique Feunion Overseas Territories of the Republic Comoro Islands Saint-Pierre and Miquelon New Caledonia French Polynesia .The Condominion of New Hebrides, *(French Somaliland) The Autonomous Republics Sudanese Republic State of Senegal Maretanian Islamic Republic Republic of Niger Voltaic Republic Republic of Ivory Coast Republic of Dahomey Central African Republic Pepublic of Chad Gaboon Republic Republic of the Congo Malgash Republic U.N. Trusteeships Cameroons Togo Associated Areas Guinea Morocco Tunisia Cambodia and Laos for the part of their payments made through the foreign exchange market of Paris (Viet-Nam to May 1, 1959) * Non-member of Franc Zone but transactions of zone members with it are considered internal and not external transactions of the zone. APPENDIX TABLE 13 Payments Between Metropolitan France and the Rest of the Franc Zone (RZF.1/ (in billion francs) 195 3 195.4 1955 1956 1957 Exports to RZF, c.i.f. 530 570 590 610 720 Imports from RZF, f.o.b. -360 -400 -400 -420 -470 Net invisibles 5Q 90 120 330 230 Bilateral Balance 210 240 320 520 460 Net RZF foreign exchange transactions - 10 - 3 60 Total Private Transactions 240 250 320 550 520 Public transfers of funds to RZF -250 -270 -2 -570 -640 Net change in EZF franc holdings (-) increase - 10 - 20 - 50 - 20 -110 l/ Excludi.n7 Indo-China and Successor States. Details may not add to totals because of rounding. Source: La Zone Franc en 1957 APPENDIX TABLE 15 Franc Holdings of Banks of Issue of Rest of Franc Zone (in billions of francs) 1952 195 1956 1957 Morocco 2 14 -22 41 Bank of Algeria and Tunisia 26 99 139 183 French West Africa and Togo 19 16 29 35 French Equatorial Africa and Cameroons 12 10 7 12 Madagascar and Comores -3 2 3 -3 New Caledonia & French Polynesia 3 6 7 7 Overseas Departments & St. Pierre & Miquelon -1 2 7 8 Total 58 148 170 283 Source: La Zone Franc en 1957. Table la: FasNCE - SUiiiakY OF LXTLRN-.L PUiBLIC LEBT OUTaTANING DECiEMBLR 31, 1958 (namounts expressed in thousands of U.S. dollar equivalents) Page 1 Total National and govern- Debt of political Item ment guaranteed debt subdivisions Amount Amount Amount TOTAL EXTERNAL PUBLIC DEBT 2,922,186 100.00 2,918,794 100.00 3,392 100.00 Disbursed and still outstanding 2,853,178 97,64 2,849,786 97.64 3,392 100.00 Undisbursed 69,008 2.36 69,008 2.36 - - U.S. DOLLAj\S 1,951,896 66.80 1,951,896 66.87 - - Disbursed and still outstanding 1,887,896 64.61 1,887,896 64.68 - - Undisbursed 64,000 2.19 64,000 2.19 - - Privately-pl- ced debt 33,000 1.13 33,000 1.13 - - Disbursed and still outstanding 15,000 0.51 15,000 0.51 - - Undisbursed 18,000 0.62 18,000 0.62 - - Loans from international organizations 270,673 9.26 270,673 9.27 - - IBRD 244,079 8.35 244,079 8.36 - - Coal and steel community 26,594 0.91 26,594 0.91 - - U.S. Government loans 1,648,223 56.41 1,648,223 56.47 - - Export-Import Bank 8529706 29.42 8,59,706 295 - - Disbursed and still outstanding 813,706 27.85 813,706 27.88 - - Undisbursed 46,000 1.57 46,000 1.57 - - Other 788,517 26.99 788,517 2702 - - LEBT FAYABLE IN GOLD (Consolidated EPU debt) 33,604 1.15 33,604 1.15 - - DEBT P-YYBLL IN GOLD 0ti U.S. DOLLARS (Consolidated LPU debt) 118,000 4.04 118,000 4.04 - - G.NkDIi N LOLL±R6 (Government loan) 166,545 5.70 166,545 5.71 - - POUNLS ThLING 157,143 -537 157,143 5.38 - - Publicly-issued bonds 8,851 0 30 8,851 0.30 - - Government loans 148,292 5.07 148,292 5.08 - - Shlbo FRtANS 112,108 3.84 108,716 3.73 3,392 100.00 Publicly-issued bonds 26,405 0.90 23,013 0.79 3,392 100.00 Privately-placed debt 11,607 0.40 11,607 0.40 - - Government loans 74,096 2.54 74,096 2.54 - DEUTSCHE iWRKS (Consolidated hPUdebt) 167,386 5.73 167,386 5.74 - Table la: FnaNCE - SUMMARY OF 'XTNATL AUBLIC DEBT OUT:TzNDING DEChiBER 31, 1958 (CONT.) (Amounts expressed in thousands of U.S. dollar equivalents) Page 2 Total National and govern- Debt of political Item ment guaranteed debt subdivisions Amount 1 Amount 1mount kUSTRIAN SCHILLINGS (Consolidated EPU debt) 8,732 0.30 8,732 0.30 - - BELGIAN FRANCh (Consolidated EPU debt) 58,321 2.00 58,321 2.00 - - DANISH KRONER (Consolidated EPU debt) 14,545 0.50 14545 0.50 - - ITALIAN LIRE (Consolidated EPU debt) 24,659 0.84 4,659 0.84 - - NOR;JLGIAN KRONER (Consolidated EPU debt) 12,424 0.42 1_2,424 0.43 - - NETHERLeNDS GUILDLRS (Consolidated EPU debt) 54,254 1.86 54,254 1.86 - - SEDISH KRONOR (Consolidated EPU debt) 30,437 1.04 30,437 1.04 - - PORTUGUL6L ESCUDOS (Consolidated EPU debt) 3,603 0.12 3,603 0.12 - GREEK DR. CHMAS (Consolidated EPU debt) 3,759 0.13 3.759 0.13 - - ICELAiNDIC KRONUR (Consolidated EFU debt) 849 0.03 849 0.03 - - PhLETAB (Publicly-issued bonds) 1,739 0.06 1,739 0.06 - - DEBT FAYABLE IN GOOLD (Privately-placed debt) 2,182 0. 2,182 0.07 - - IBRD - Economic Staff May 29, 1959. Table lb: FRiTCE - EXTER1I7AL PUBLIC DEBT OUTSTI1TDING DCEBER 31, 1958 National and Government Guaranteed Debt and Debt of Political Subdivisions (In thousands) Page 1 Debt outstanding Item December 31,1958 In currency In U.S. dollar of payment equivalents 'CL 'XIT,RIT FUBLIC DTBT 2,922,186 L TIONAL AND GOV7?1MENT CUAANTEED DEBT 2,918,794 U.S. DOLLAR DrBT 1,951896 1,951,896 Privately-placed debt 9 33,000 33,000 15,oco,oco U.S. Banks loan to Air France 5 3/8% and 51%, 1957 /2 15,000 15,000 :,8,OOO,OOO Boeing and United Aircraft loan to Air France -5-,, 1957 /2 ? 18,000 /3 18,000 Loans from international organizations 270,673 270 673 IBRD loans )250,000,OCO loan to Credit Nat. )4%, 1947-1977 /2 Held by IBRD 219,153 /A 219,153 Hold by 3rd parties 10,037 10,037 97,091,567 loan to Central Office of French Overseas Iiys. )41 , 1954-1966 /2 Held by IBRD 4,933 /5 4,933 Held by 3rd parties 640 7W 640 10,000,000 loan to Electricite et Gaz d'Algerie, 4 3/4', 1955-1972 /2 Held by IBRD 8,450 /6 8,45o Held by 3rd parties 866 / 866 "),OC0,CCO Kirrh Hi .uth. of European Coal & Steal Co-m. loan to Ch-rbonnages de France 4.1', 1954-1979 /2 /7 _ 1 9 1349) 13,000,CC0 EighKuth. of European Coal & Steel Comm. loan to Therborarea de France 5 5/80, 1958-1978 /2 8-- 1222 -IL900 U.S. Government loans 4 1,6)8,223 1,648,223 Export-Import Bank loans I6 950,000,000 2 3/8/, 1947-1976 /9- current 325,229 325,229 4 1/2,, 1958-1963 - deferred 9 9,167 9,167 )65o,000,0OO 3Z, 1946-1971 /9 - current 464,815 464,815 4 1/25, 1958-19-3 - deferred 9 14,495 14,495 3o46,o0o,oo 5 1/2%, 1957-1965 46,coo /3 46,ooo Other U.S. Government loans 788,517 788,517 j653,300,000 SP and COG (State Dept.) 27%, 1946-1980 /10 - current 512,645 512,65 2%, 1958-1981 - deferred ' 27,664 27,664 32,438,857 OFLC 2%, 1947-1980 /10-current 25,576 25,576 2%, 1958-1981 - deferred 1,448 1,448 )6,040,216 GSA 3 1/2%, 1948-1963 /11 3 1,947 1,947 MISA loans 9172,000,000 2 1/2/%, 1948-1983 2 166,000 166,000 .io,)4oo,c0o 2 1/2%, 1950-1983 10,037 10,037 9)3,200,000 2 1/2%, 1952-1987 43,200 h3,200 See footnotes at end of table. Table 1b: FRANCE - EXTERNAL PUBLIC DEBT OUTSTANDING DECEMBER 31, 1958 (CONT.) National and Government Guaranteed Debt and Debt of Political Subdivisions (In thousands) Page 2 Debt outstanding Item December 31, 1958 In currency In U.S. dollar of payment equivalents NATIONAL AND GOVERNMENT GUARANTEED DEBT (CONT.) DEBT P.;iABLE IN GOLD u/a 33, 604 33, 604 Consolidated EPU debt u/a 1,604,000 debt to Turkey 2 3//,/,1, 1958-1965 u/a 1,604 /12 1,604 u/a 32,000,000 portion of u/al0, 000,000 Special credit 4j%, 1958-1962 u/a 32,000 /12 32,000 DEBT PAYABLE IN GOLD OR U.S. DOLLARS wi/a 115,000 118,000 u/a 118,000,000 portion of u/al0, 000,000 Special credit )v, 1958-1962 u/a 118,000 /12 118,000 CANADIAN DOLLAR DEBT Can4253,hb6,312 Can. Govt. loan 3%, 1946- 1977 Can4 160,550 166,545 POUND STERLING DEBT F,56,123 157, 143 Publicly-issued bonds 3,161 8,851 £3,068,000 Cie. des Chemins de Fer du Midi 4%, 1935-1975 /13 t 1,919 5,372 £1,990,000 Cie. des Cheins de Fer de Paris a Orleans ho, 1935-1975 /13 Z 1,22 3,479 Government Loans £ 52,962 148,292 £100,676,581 U.K. Govt. loan fi, 1925- 1961 t 25,737 72,063 £27,224,684 EPU consolidated debt to U.K. h, 1958-1965 £ 27,225 /12 76,229 SWISS FRANC DEBT SwF 470,137 108,716 Publicly-issued bonds SiF 99,1o 23,013 SwF 420,875,000 Rep, of France hfo, 1939- 1969 /14 SwF 71,348 16,562 SwF 40,700,000 Ch. de Fer du Maroc 5%, 1938-1978 /2 /15 SwF 27,792 6,651 Privately-placed debt SwF 50,000,000 Swiss Banks loan to French Natl. Rys. 4 3/8%, 1954-1960 SwF 50,000 /16 11,607 Government loans SwF 320,997 74,096 SwF 120,000,000 Swiss Federal Rys. loan to French Natl. Rys. 4%, 1954-1979 SwF 120,000 27,856 SwF 80,000,000 Swiss Federal Rys. loan to French Natl. Rys 3%, 1954-1979 SwF 80,000 18,570 SwF 120,996,870 EPU consolidated debt to Switzerland 3 7/8%, 1958-1964 SwF 120,997 12 27,670 See footnotes at end of table. Table lb: FRANCE - EXTERNAL PUBLIC DEBT OUTSTANDING DECEMBER 31, 1958 (CONT.) National and Government Guaranteed Debt and Debt of Political Subdivisions (In thousands) Page 3 Debt outstanding Item December 31, 1958 In currency In U.S. dollar of payment equivalents NATIONAL AND GOVERNIFEN1T GUARANTEED DEBT (CONT.) DEUTSCHE MARK DEBT Consolidated EPU debt DM' 703,022,599 debt to Germany 3%-4f , 1958-1965 DM 703,023 /12 167,386 AUSTRIAN SCHIILING DEBT Consolidated EPU debt S227,036,550 debt to Austria 3 3/4%, 1958-1963 S 227,036 /12 8,732 BELGIAN FRANC DEBT Consolidated EPU debt BF2,916,022,0 debt to Belgium 2%-4f%, 1958-1965 BF 2 22 /12 58,321 DANISH KRONE DEBT Consolidated EPU debt DKr 100,,461,050 debt to Denmark 3.8%, 1958-1964 DKr 100, 5461 /2 16,5) ITALIAN LIRA DEBT Consolidated FPU debt Lit 15,409,1538,207 debt to Italy 3-14%, 1958-196, Lit 15,09,538 /12 2),659 NOREEGIAN KRONE DEBT Consolidated EPU debt NKr 88,744,357 debt to Norway 4%, 1958- 1964 NKr 88,744 /12 12,12) NETHERLANDS GUILDER DEBT Consolidated EPU debt f.206,163,289 debt to Netherlands 3Z%- 41fo 1958-1965 f. 206,163 /12 5)4,254 SLEDISH KRONA DEBT Consolidated EFU debt SKr 157,459,131 debt to Sweden 2 3/4/o, 1958-1961 SKr 157,459 /12 30,437 PORTUGUESE ESCUDO DEBT Consolidated EPU debt Esc 103,599,130 debt, to Portugal 3(%, 1958-1961 Esc 103 599 12 3,60ji GREEK DRACHMA DEBT Consolidated EPU debt u/a 3,758,839 debt to Greece u/a 3,759 /12 3,759 See footnotes at end of table. Table lb: FRANCE - EXTERNAL PUBLIC DEBT OUTSTANDING DECEMBER 31, 1958 (CONT.) National and Government Guaranteed Debt and Debt of Political Subdivisions (In thousands) Page 4 Debt outstanding Item December 31, 1958 In currency In U.S. dollar of payment equivalents NATIONAL AND GOVERN1ENT GUARANTEED DEBT (CONT.) ICELANDIC KRONA DEBT Consolidated EPU debt u/a 849,163 debt to Iceland u/a 849 /12 849 PESETA DEBT Publicly-issued bonds F101,124,000 Empire of Morocco 5, l9lo-1985 /2 Pts 73,526 1,739 DEBT PAYABLE IN GOODS Privately-placed debt SwF 60,000,000 Emprunt des Charbonnages de France by$, 1953-1959 /17 SwF 9,400 2,182 DEBT OF POLITICAL SUBDIVISIONS 3,392 SWISS FRANC DEBT Publicly-issued bonds SwF 62,400,000 City of Paris 5%, 1932-1)62 /18 SwF 14,614 3,392 Exchange rates: The following exchange rates have been used: Par value: £1 = *2,80; Fl = '0.0020255 or F493.7 = l.0. Current market values: Can:1 = 1.0373LL as of Dec. 31, 1958; SwF 1 = (0.23213 as of Dec. 31, 1958; Pts 1 = 40.02365 as of Dec. 31, 1958. (The dollar equivalents of Consolidated EPU debt were given in the contracts.) 1 Does not include the following: 1. Temporary arrangements to back-stop stabilization program of 1958-59: ,235,000,000 stand-by agreements with European central banks of Belgium, United Kingdom, Netherlands, the Federal Rep. of Germany and the BIS. In Dec. 1958 France borrowed q80,000,000 from the BIS and by March 31, 1959 she had repaid it andhad renounced the remaining agreements. W0,000,000 U. S. private banks stand-by credit signed Jan. 20, 1959, available until Dec. 31, 1960. France had not utilized this credit as of Mar. 31, 1959 and it is unlikely that she will do so. Table lb: FRANCE - EXTERNAL PUBLIC DEBT OUTSTANDING DECEEBER 31, 1958 (CONT.) Page $ /L (Cont.) 2. Other: Amount outstanding Dec. 31, 1958 (In thousands) Emprunt Hellenique 2)f, 1898 F 415,000/a & 841 Austrian Internatl. Guar. loan %, 1934-1959 Ab British tranche F 676,863 $ 1,371 Belgian tranche F 6,912 $ 14 Netherlands tranche F 12,836 $ 26 Swiss tranche F 112,564 $ 228 Swedish tranche F 38,509 $ 78 French tranche F 7,899 $ 16 /a This loan is an obligation of Greece jointly guaranteed by France and the U.K. The amount shown represents bonds drawn but not yet redeemed. /b This loan is an obligation of Austria and Austria has resumed service on the loan, /2 Guaranteed by the Government of France. /3 Completely undisbursed as of December 31, 1958. A The status of this loan as of Dec. 31, 1958 was as follows: Total (all U. S. dollars) 6250,000,000 Disbursed and still outstanding 229, 190,000 Held by IBRD 219,153,000 Held by 3rd parties (non-guar.) 10,037,000 Repaid at-, 810, 000 To IBRD 35,000 To 3rd parties 20,772,000 /5 The status of this loan as of December 31, 1958 was as follows: Total (r'l U. S. dollars) & 7,500,000 Disbursed and still outstanding $,573,000 Held by IBED 4,933,000 Held by 3rd parties (non-guar.) 64o,000 Repaid 1,518,567 To IBRD 599,567 To 3rd parties 919,000 Cancelled 08,433 Table lb: FRINCE - LXThNAL PUBLIC D.LBT OUTSTjNDING LLCEBZER 31, 1958 (coNT.) Page 4 16 The status of this loan as of December 31, 1958 was as follows: Total (all U.S. dollars) $10,000,000 Disbursed and still outstanding 9,316,000 Held by IBR 8,450,000 Held by 3rd parties (non-guar.) 866,000 Repaid (all to 3rd parties) 684,000 /7 All investment loans were made in dollars and are repayable in dollars. The risk on the exchange rate is borne by the borrower, and the governments concerned have guaranteed that they will make the dollars available for the purpose Uf interest and sinking fund payments. Of the $26,000,000 allotted to France (and the Saar), $14,000,000 was disbursed to Charbonnages de France and the balance was disbursed to private companies in France and in the Saar. /8 After July 1, 1964, repayable in High Auth. bonds 5 , Series 11, 1958 also. /9 According to agreement with the Export-Import Bank France may defer those semi- annual principal instalments due between July 1, 1958 and January 1, 1960, inclusive. The principal so deferred will be repaid in four equal semi-annual instalments beginning January 1, 1962 and will bear interest at the rate of 42 p.a. payable semi-annually. The Minister of Finance announced in May 1959 that the remaining right of deferral would not be used. The amounts involved are: Amount iaturity Loan #382 Loan #404 7/1/58* $ 9,167,000 $14,495,000 1/1/59* 9,167,000 14,755,000 7/1/59 9,167,000 14,950,000 1/1/60 9,167,000 15,145,000 Total $36,668,000 $59,345,000 *Has been deferred. /10 The agreement provides that the United States may elect to accept either real pro,perty and improvements to real property or local currency up to a maximum dollar value of $25,000,000 instead of U.s. dollars for repayment of this ob- ligation. Such payments are to be used for U.S. government purposes, including cultural and educational pro6rams. recording to further agreement with the U.S. Government, France may defer the seimi-annual instlments of principal and interest due on July 1, 1958, July 1, 1959 and July 1, 1960 to the dates July 1, 1981, July 1, 1982 and July 1, 1983, respectively. The payments so deferred will bear interest at the rate of 210 p.a. payable semi-annually. Table ib: FRANCE - EXTERNAL PUBLIC DEBT OUTSTANDING DECE1BER 31, 1958 (CONT.) Page 7 /10 (Cont.) The amounts involved are: Amount COG & SP 2%, 1946-1980 OFLC 2%, 1947-1980 Maturity Prin. Interest Prin, Interest 7/1/58* 417,050,975 410,612,735 4 918,507 4 529, 886 7/1/59 18,369,494 10,261,412 936,877 511,515 7/1/60 19,170,384 9,885,522 955,614 492,778 Total 454,590, 853 '30,759,669 $2, 810, 998 $1,534,179 *Has been deferred. /11 The agreement provides that the United States may elect to accept either real property and improvements to real protprty or local currency instead of U.S. dollars in repayment of this obligation, to be used for U.S. government purposes, including cultural and educational programs. /12 After liquidation of the EPU and the distribution among member countries of the EPU's accumulated surplus, France's total net debt (excluding the u/al50,o00,oo Special Credit of 1958) amounted to u/a 48)4,472,198. This amount is to be re- paid through bilateral settlement under the E1MA, all agreements to be settled in 1959. The Special Credit of 1958 (u/al5C,000,000) is repayable in 30 monthly in- stalments of u/a5,ooo,000 equivalent beginning January 1960 with interest of 4% p.a. in gold, or at the option of France in U.S. dollars at the official price for gold of the United States Treasury. In agreement with the receiver, however, payments may be made by France in any other currency. The recipient countries and amounts due them are as follows: Bilateral distribution of u/a 150,000,000 Special Credit granted by Union to France Amount due Country (In EPU units of account Total u/a 118,000,000 u/a 32,000,000 /a Austria 2,175,692 555,451 Belgium/Lux. 109116 3,2 1,98 10mrk5,912, 154 3240, 985 Denmark 5,537, 909 1,501,805 Germany 26,714,801 6,977,116 Greece 1,277,978 346,570 Iceland 425,993 115,523 Italy 6,447,653 1,600,483 Netherlands 10,081,829 3,102,629 Norway 5,679,904 1,540,313 Portugal 1,987,966 539,110 Sweden 7,383,875 2,005,888 Switzerland 7,850,783 1,925,391 Turkey 1,419,976 385,078 United Kingdom 30,103,490 8,163,658 /a Most likely payable in gold. Table lb: FRANCI - EXTERNAL PUBLIC DEBT OUTSTANDING DECE1BER 31, 1958 (CONT.) Page 8 /13 The terms under which this company was nationalized provided that the French National Railways supply sums for service of this loan and that the French government guarantee the payments of principal and interest. /14 Payable in guilders or Swiss francs at the rate of f. 1 = SwF 2.405. Now being serviced in Swiss francs. /15 Payable in guilders or Swiss francs at the rate of f.1 = SwF 2.40. Now being serviced in Swiss francs. /16 Of this amount, SwF 28,426,246 (46,598,584) was disbursed and still outstanding and SwF 21,573,754 (%5,007,916) was undisbursed as of Dec. 31, 1958. /17 This loan is guaranteed up to 80% by the Swiss Finance and Customs Dept. Principal and interest are payable by the delivery of 150,000 tons of coal and coke annually. If these deliveries are not met, the loan is repayable in Swiss francs. /18 Payable in guilders or Swiss francs at the rate of f. 1 SwF 2.08. Now being serviced in Swiss francs. IBRD - Economic Staff May 29, 1959 Table le: FRANCE - EXTERNAL PUBLIC DEBT REPAYABLE IN LOCAL CURRENCY OUTSTANDING DECEBER 31, 1958 (In thousands) Debt outstanding December 31, 1958 Item In currency In U.S. dollar of payment equivalents TOTAL 5,906 U.S. Government loan F 2,638,000,000 Mutual Security Deficiency loan 5-, 1953-1978 5,906 IBRD - Economic Staff May 29, 1959 Table ld: FRANCE - PURCHASEG FRO1 INTERN1ATIONAL HONETARY FUND AS OF DECE4PER 31, 1958 (In thousands of U.S. dollar equivalents) Item Amount IF purchases 393,750 Al U.S. DOLLARS 348,750 DEUTS CHE AARKS 5,COO /1 Includes Stand-by Arrangement of January 1958 of which i.86,500,o00 was d rawn in U.S. dollars and -45,000,000 was drawn in Deutsche marks. The schedule of repurchases is as follows: Amount due Date (In U.S. dollar equivalents) 1960 February 40,000,000 March 60,000,000 April 60,000,000 May 60,000,000 June 42,500,000 '262,500,000 1961 March 65,000,000 June 66,250,000 l13,250,000 IBRD - Economic Staff May 29, 1959. Table 2: FRANCE - INTERhLT AND Ai'O1tTIZA TION PAYVaNT3'5 ON EXTERNAL PUBLIC DEBT; ESTIrATLD ACTUAL PAYMAENTS 1946-1958 AND ESTIMATLD CONTRACTUAL PAMENTS 1959-1973 ON DEBT OUT'.TNDING AS OF DECTBEh 31, 1958 National and Government Guaranteed Debt and Debt of Political Subdivisions (In thousands of U.S. dollar equivlents) Total debt Debt payable in U.S. and Canadian Other debt dollars and gold Year Debt out- Payments during year Debt out- Paylents during year Debt out- Pyments during year stJnding 1 morti- In- Total standing Amorti- In- Total standing Amorti- In- Total JL_nuary 1_zation_terest_J_nu_ry_1_ation_terest January 1 zation terest 1946 1,289,291 227,256 6,654 233,910 573,704 17,021 2.525 19,546 715,587 210,235 4,129 214,364 1947 2,787,763 29,060 37,649 66,709 2,284,464 24,115 33,613 57,728 503,299 4,945 4,036 8,981 1948 3,028,847 38,768 63,467 102,235 2,510,349 33,506 59,518 93,024 518,498 5,262 3,949 9,211 1949 3,057,400 44,037 69,098 113,135 2,656,031 33,991 65,067 99,058 401,369 10,046 4,031 14,077 1950 2,969,028 61,782 69,437 131,219 2,516,646 29,321 63,685 93,006 452,382 32,461 5,752 38,213 1951 2,932,263 81,097 75,905 157,002 2,506,620 47,846 62,920 110,766 425,643 33,251 12,985 46,236 1952 2,863,761 108,917 71,102 180,019 2,467,561 76,171 64,687 140,858 396,200 32,746 6,415 39,161 1953 2,833,527 135,863 72,817 208,680 2,444,502 103,502 66,086 169,588 389,025 32,361 6,731 39,092 1954 2,811,231 269,164 69,331 338,495 2,440,683 151,998 63,352 215,350 370,548 117,166 5,979 123,145 1955 2,797,580 164,106 72,049 236,155 2,311,856 103,884 61,003 164,887 485,724 60,222 11,046 71,268 1956 2,637,152 142,830 67,244 210,074 2,211,677 79,133 58,842 137,975 425,475 63,697 8,402 72,099 1957 2,501,524 154,138 72,374 226,512 2,139,816 82,176 57,772 139,948 361,708 71,962 14,602 86,564 1958 2,421,206 94,318 62,374 156,692 2,131,710 40,961 44,723 85,684 289,496 53,357 17,651 71,008 PROJECTEL 1959 2,922,186 151,053 70,752 221,805 2,270,045 42,590 52,565 95,155 652,141 108,463 18,187 126,650 1960 2,781,906 217,189 73,068 290,257 2,238,228 129,653 53,503 183,156 543,678 87,536 19,565 107,101 1961 2,575,095 237,449 78,078 315,527 2,118,953 161,091 60,977 222,068 456,142 76,358 17,101 93,459 1962 2,337,646 254,171 69,251 323,422 1,957,862 162,940 54,584 217,524 379,784 91,231 14,667 105,898 1963 2,083,475 222,411 60,447 282,858 1,794,922. 134,783 49,466 184,249 288,553 87,628 10,981 98,609 1964 1,861,064 194,444 52,605 247,049 1,660,139 112,121 45,216 157,337 200,925 82,323 7,389 89,712 1965 1,666,620 174,180 45,817 219,997 1,548,018 113,998 41,744 155,742 118,602 60,182 4,073 64,255 1966 1,492,440 119,582 40,311 159,893 1,434,020 118,7'0 38,128 156,858 58,420 852 2,183 3,035 1967 1,372,858 118,101 36,676 154,777 1,315,290 117.212 34,529 151,741 57,568 889 2,147 3,036 1968 1,254,757 112,563 33,387 145,950 1,198,078 111,634 31,279 142,913 56,679 929 2,108 3,037 1969 1,142,194 114,683 30,149 144,832 1,086,444 113,712 28,082 141,794 55,750 971 2,o67 3,038 1970 1,027,511 121,587 26,876 148,463 972,732 115,933 24,849 140,782 54,779 5,654 2,027 7,681 1971 905,924 123,814 23,359 147,173 856,799 118,112 21,541 139,653 49,125 5,702 1,818 7,520 1972 782,110 85,620 20,077 105,697 738,687 79,872 18,472 98,344 43,423 5,748 1,605 7,353 1973 696,490 87,034 17,649 104,683 658,815 81,237 16,258 97,495 37,675 5,797 1,391 7,188 IBRD - Economic Staff