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Showing posts with label France. Show all posts
Showing posts with label France. Show all posts

1942: France

Up to the last month of the year 1941 the Vichy régime, which had been set up in the unoccupied zone of France with the approval of the victorious Germans, seemed firmly established and durable. Vichy was still in the hands of the reactionary group, militaristic and Catholic, that had ruled for more than a year, and many people found little fault with it. Marshal Pétain was widely respected and in December 1940 had forced the resignation of Laval. His great slogans were religion, family and work.

But with the entrance of the United States into the war in December, two new currents of thought and action were set in motion in France which were to lead in the course of the year to the disintegration of the Vichy régime. The first found its expression in the series of acts of sabotage and revolt that began as hope came back to the hearts of many who had deemed resistance impossible. During that period of terroristic, rebellious activity which spread through the last months of 1941 and the early weeks of the new year, nearly every day was marked by attacks on German sentries, bridges mysteriously blown up, or 'accidents' to trains bearing troops or munitions. The authors of such provocative acts were never found, the public being ready to protect its heroes at any cost. But reprisal was swift and terrible and the execution of innocent hostages began in France.

The other new element to be noted was the wave of doubt that swept over some of the masters of Vichy as to Hitler's chances of final success. Some of those officers who began to question his military potential as against that of the United Nations reinforced now by the United States, grouped themselves under the name of Libération Nationale and sought to return to the traditions of the French army, ever opposed to Germany. These officers were reactionary in their opinions but became once more French patriots in attitude.

The decline of the Vichy régime thus portended by these straws in the wind showed itself increasingly throughout 1942 along three essential lines: (1) the failure to obtain the allegiance of the workers and organize them on the side of the government; (2) the dwindling control over what remained of French military power; and (3) the loss of political prestige, and led at last to the disappearance of even the semblance of authentic legal existence and of the last hope for 'peaceful collaboration' with the Germans.

Labor and Liberation.

Hitler had need of French labor to work in factories, both for the production of weapons and to provide the minimum indispensable to sustain what remained of French life. Vichy was counted on to prevent dangerous friction between the authorities and the immense majority of workers, by persuading them that they were contributing to a solution for France and the working-out of her destiny.

Since Pétain and his aides knew little about the workers, Vichy had appointed a quisling, one of the former directors of the CGT (French Confederation of Labor) named Belin, to organize the projected collaboration and enunciate a 'labor charter.' Belin knew the workers; but unfortunately for Vichy they also knew him, and considered him a traitor to both his country and his class. All his attempts to organize labor around himself as center were vain.

Yet during the same period, the end of 1941 and the first quarter of 1942, labor had been quietly organizing itself, quite independently of Vichy's influence. The old legal trade unions which had existed for many years under the Third Republic, had indeed been dissolved by the dictatorship instituted by the Nazis, but they formed again as underground groups, which obtained the allegiance of the workers. These soon began to publish their own illegal newspapers, which were more and more widely distributed, each copy often passing through the hands of twenty readers.

The first and perhaps the most important group was Libération, founded under the influence of the unions but helped and to a large degree directed by intellectuals, among whom were some professors. Its great inspirer was André Philip, professor of law at the University of Lyon. In March, after preliminary contacts had been made, this group sent emissaries to London, to make an agreement with the Free French there, which marks a date in the history of French resistance. Up to then its two branches had been unconnected. On one side of the Channel soldiers and administrators under the leadership of Gen. Charles De Gaulle, with the approval and help of the Churchill Government, were openly members of the Allied armies; while on the other, French civilians in the occupied and unoccupied regions of their homeland were struggling as best they could. Gen. De Gaulle, a great military officer who had been kept too busy with his study of strategy and the use of armored divisions to develop much interest or skill at politics, had no great following in France. His attitude of resistance to the authorities-in-being made him a sort of anomaly in the army, and he had never been in contact with the people. They respected him as a patriot, but as a military man and a noble he was suspected of reactionary tendencies and they could not consider him as one of themselves. Nevertheless, in their ardent desire to liberate France, the delegates arrived at a complete understanding with the Free French in London. All that was asked of De Gaulle was a renewal of his pledge that after victory he would consider himself as merely one of the forty million Frenchmen who would hold free elections under the laws in existence before the invasion, to decide on a political régime. In this way was accomplished the union of all the French forces working for the liberation of France. And since those who had stayed behind in their invaded country were obviously far from free, the name 'Free French' gave way to the inclusive and unifying name of 'Fighting French.'

Another group calling itself Franc-Tireur was formed by some elements of the old Radical-Socialist Party and began to publish a secret newspaper under its name; while in view of the example of these two liberal groups the Libération Nationale started by the disaffected officers, took on a broader character. It purged itself of certain Vichy elements which tried to join and direct it as their doubts of German victory grew, changed its name to Libération Française and founded a clandestine paper with the significant title: Combat.

So while Vichy was making its blundering attempts to implement its 'labor charter,' the unions and other independent groups were escaping from Vichy's leadership. The resistance in France thus had its origins mostly in labor, to some extent in the army, and of course largely among the liberal-minded intellectuals.

Military and Political Disintegration.

The whole Vichy set-up rested chiefly on the amazing prestige of Marshal Pétain. But the Riom trial did much to shatter that prestige. The case opened at Riom Feb. 19, 1942. The defendants were Léon Blum, Edouard Daladier, General Gamelin, Pierre Jacomet, General Commissioner for all army supplies, and Guy La Chambre. Paul Reynaud and Georges Mandel were not included in the indictment, perhaps because they knew too much. The first three named had practically lost their reputations, and it would have been wiser of Vichy just to let them be forgotten. For these men who had shown little courage or decision when they were in power at the head of the French state, now that they had lost all and their lives were in danger, displayed real dignity. On the first day Blum said: 'It is really the French Republic that is on trial here.'

This was true. But what surprised everybody was that against all odds the Republic won. The judges, though they were now accountable only to Vichy, had been trained under the French legal system which accords freedom of expression to the accused. The accused at Riom now became the accusers. It appeared that the defects laid bare by defeat bore a direct relation to the incompetence of the military chieftains and their unwillingness to listen either to the specialists or to the dictates of common sense. On Feb. 27 Daladier rendered public homage to Gen. Charles De Gaulle, the specialist who never was listened to. And since Pétain himself had been President of the Supreme War Council and the chief influence in the General Staff or High Command during all the pre-war period, he was morally the real culprit. By trying Daladier and Blum, both politically dead, Pétain revived their reputations and resuscitated their parties. Hitler put an end to the trial before a verdict could be reached.

Three events which took place while the Riom trial was going on also tended to accelerate Vichy's decline. These were: (1) On Feb. 28, in the midst of the trial the first spectacular and important Commando raid was made by the British at Bruneval, on the Normandy coast. (2) On March 4, the Renault works at Billancourt, a suburb of Paris, were bombed by the British, who thus gave warning to the great French industrialists, who had been quite ready to 'collaborate,' that France was not going to be as safe for their business undertakings as they had supposed. Besides, French industry was already weakened by Germany's frequent refusal of raw materials and transfers of essential machinery, as well as by the avowed German intention of turning France into an agricultural country geared to German industry. The manufacturers thus finding themselves threatened, began in March and April to open branches in North Africa. Foreseeing now the eventual occupation of all France, they commenced an unobtrusive withdrawal. (3) What chiefly accelerated the fall of Vichy, however, was the raid on St. Nazaire and its consequences. The British made a powerful Commando raid March 27, wreaking havoc upon the quays, canals and naval works, and then — their task accomplished — re-embarked. But the French population, believing the hoped-for invasion had begun, attacked the Germans with all sorts of weapons, real and improvised, springing from every alley-way and doorstep, and fighting with a tenacity and courage that amazed the Nazis. The Nazis exacted severe reprisals, but they knew from that day how much collaboration they could expect from the people of France.

German uneasiness after St. Nazaire showed itself clearly in several ways. General Karl von Rundstedt was sent to take charge of the 'invasion coast,' and a little later General Oberg was entrusted with the repression of political activities in France. But the most important result was the increased pressure upon Pétain to recall Laval.

The return to power of Pierre Laval, on April 15, was the death blow to the prestige of Pétain who had been lauded earlier for dismissing him. Yet Laval had now only the civil power, a new fact of immense importance. Many officers, persuaded by this time that Hitler might lose, were quietly attaching themselves to the star of Darlan, one of the first to feel the turn in the wind. So when Laval came back he was to find that what was left of the French army and navy had in large part transferred its allegiance from Vichy in general to Darlan in particular. Laval tried to conciliate public opinion by throwing on the market some food-stuffs that had been withheld by his predecessors, and the Germans helped him by promising to free some of the French prisoners of war.

General Henri Honoré Giraud's escape from his prison at Koenigstein in Saxony, on April 21, gave the Germans an excuse not to keep this promise.

On a signal from London a large manifestation of organized resistance was carried out by the French populace on May 1, traditional Labor Day in France. And as a pendant to this internal action, the troops of the Fighting French were to cover themselves with glory about a month later at Bir-Hacheim. But soon the German pressure on Laval increased still further. On June 4, 1,300 French factories were closed down, and on June 22 Laval said it was the duty of French workers to go to Germany.

The United States followed two divergent courses by negotiating with Admiral Robert of the Vichy régime as to Martinique, and (July 9) by sending military delegates to the Fighting French in London.

At Lyon, on July 13, there was a ceremony inaugurating a sort of French S.S., called the Service d'Ordre Légionnaire (SOL), destined to carry out repressive measures and defend Vichy in case of civil war. Next day the people of Paris, disregarding the most explicit prohibitions, marked the national holiday, July 14, by vigorous demonstrations. Three days later, General Michel, German economic and financial dictator in France, closed 1,600 more French factories.

The Vichy police began to arrest Jews in Unoccupied France and to turn them over to the Germans. This provoked strong opposition among the French people, who often protected the Jews at great risk to themselves, as well as among the French clergy. Labor demonstrated against the Relève (the manpower barter of French workers for Germany against returned French prisoners), and the entire month of July was marked by throwing of bombs into the meeting-places of Doriot's French Fascist party.

On August 11, Laval took occasion on the arrival of the first trainload of returned prisoners at Compiègne to announce that the rate of exchange for the Relève would be one prisoner for every three workers. This was a great disappointment; and it was later found that, although the workers had to be fit, the wasted prisoners sent back were only those whose health was definitely broken.

There was a Commando raid at Dieppe on Aug. 19 in which the French, warned not to take part, followed instructions given by radio.

The first concentration of foreign Jews at Lyon preparatory to their deportation to the East drew a protest from the Pope, followed by protests by the Archbishops of Toulouse and Lyon. This further tarnished Pétain's waning prestige among his Catholic supporters, while Laval felt himself cornered between the German exigencies, the workers resistance, the hierarchy's disapprobation, the disaffection of officers and clergy, and Doriot's increasing favor with his Nazi masters. At the end of August, in a gesture of desperation, he dissolved Parliament — or what remained of it.

Internal Difficulties.

As a thundering retort to this action came, on Sept. 8, an open letter to Pétain signed by Jeanneney and Herriot, the dismissed presidents respectively of the French Senate and Chamber of Deputies, withdrawing the power that Parliament had conferred upon the Vichy government by its General Assembly of July 10, 1940. This made a great impression throughout France, although a month later Herriot was placed under arrest. On the same day the open letter was published, Laval announced the 'labor draft' of men and women for compulsory labor, and unrest grew.

Meanwhile Laval was losing with men in his own cabinet who belonged more and more to Darlan; men such as Jacques Guérard, the trusted man of the French industrialists, and Jacques Benoist Méchin, head of the 'Tricolor Legion' founded to fight against Russia. And on Sept. 17 Charles Vallin, the brains behind the Croix de Feu, left Vichy for London.

Minister of Labor Hubert Lagardelle resigned rather than enforce the compulsory labor draft. But Laval answered demonstrations against this measure by threatening to withdraw the workers' food-cards. The Germans, seeing Laval's internal difficulties, extended the deadline for delivery of French workers to Nov. 1.

In the meantime Admiral Darlan was preparing his own cards. On Oct. 22 he left for his imperial tour of the French possessions in Africa. He returned to Vichy and made his report, but departed again immediately for Algeria. On Nov. 7 (9:00 P.M. New York time — Nov. 8, 3:00 A.M. French time), Vichy received the news of the most important event of this important year, as important perhaps for France as Dec. 7 had been the year before to the United States. American troops with heavy British support had landed in French North Africa, having been preceded two weeks before by the secret and successful expedition of Gen. Mark Clark, who had managed to confer with some French generals then in North Africa who were friendly to the undertaking. This time it was not a mere raid as at St. Nazaire and at Dieppe, no hit-and-run tactics; but the largest amphibious expedition in the history of mankind. A convoy of 850 ships from Britain had quietly brought American troops in massive numbers with all the equipment they needed, and these had come to stay.

The French people were overwhelmed with joy; but for Vichy it meant that North Africa was lost, probably irretrievably, and that it no longer had the halo of the Empire to brighten its shattered prestige. One of the beauties of the setting up of the Vichy régime from Hitler's point of view had always been that ships, under cover of an unreal but diplomatically recognized neutrality could ply between Algiers and Marseille under the nose of the British blockade, bringing for re-exportation into the Reich Moroccan phosphates, valuable ores, and all the fats and foodstuffs of Algeria and Tunisia, which even in the days of ancient Rome were a granary of Europe. The pompous device of Pétain's court and government at Vichy, respected during two years and more by the Allies at whatever cost to themselves, was now no more than a shadow and could not protect Africa.

On Nov. 8 an appeal was promulgated from General Giraud, whose presence in North Africa was thus revealed, urging the French troops to join the Allies. It was also learned that Admiral Darlan was in Algiers, and had received orders from Marshal Pétain to organize resistance for all North Africa. But that same afternoon word came that the fighting had stopped at Algiers, that an armistice was being negotiated, and that, as the news phrased it, Darlan was being 'entertained' by General Eisenhower under conditions 'suited to his rank.'

Vichy was completely at a loss. De Gaullists at Casablanca, under General Béthouard, were beginning to revolt against General Noguès, Governor of French Morocco, who was organizing resistance to the Allies. At the same time, following an appeal from General Giraud, a revolt which was soon quelled, was being staged at Montpellier in Southern France by General Jean de Lattre de Tassigny.

The complete occupation of France by Germany took place on Armistice Day, Nov. 11. Whereupon Pétain made a declaration by radio giving every Frenchman the right to defend himself, a declaration which was not repeated, and it was supposed that Laval had suppressed its repetition. Still, this news seemed to give color to Darlan's contention that he was acting according to the Marshal's wishes. Admiral Darlan ordered the 'Cease firing' throughout North Africa and, since Pétain was now virtually a prisoner, Darlan claimed all authority for himself as his appointed successor. Pétain, however, had in the meantime taken all the form of Darlan's powers again into his own hands, in order to re-delegate them to General Noguès.

The next day news came that the Germans had refrained from occupying Toulon and that the great sea-base was not to be under their control. Darlan took charge of all Africa in Pétain's name, acting on his own authority and on the authority of Pétain re-delegated to him by General Noguès. The first use he made of his new powers was to declare he had rallied to the Allied cause, in complete understanding with Lieut.-Gen. Dwight D. Eisenhower, commander of the Allied forces in North Africa.

Yves Chatel, Governor of Tunisia, Alphonse Juin, Weygand's successor as commander of the French armies in Africa, together with General Noguès, were all discovered to be in Algiers, and to have announced their loyalty to Admiral Darlan. (Weygand himself was arrested in Vichy.) On Nov. 15 Giraud was named chief of all French military forces in North Africa. He was already in Tunisia, organizing the French troops that were struggling alone there against the German armies while waiting for the Allies.

In London, the De Gaullists were resenting bitterly the arrangement with Darlan and their own exclusion from all participation in the North African undertaking. However, on Nov. 17, President Roosevelt in a statement to reassure those believers in the Four Freedoms who in all countries feared that the alliance with Darlan marked a change in America's declared war aims, said in unequivocal terms that the arrangement with Darlan was a temporary expedient, due to military necessity only, and promised that after the war was won the French people alone should establish the government of their choice.

After the above events Marshal Pétain must be considered as entirely deprived of power, never even leaving the Hôtel du Pare without the escort of a German officer. Surprising and often contradictory statements continued to emanate from Vichy. Darlan speaks in Pétain's name, saying he is the expression of the Marshal's thought and that they are in direct contact, while the Marshal publicly outlaws the Admiral without the Admiral's taking any notice of it. At the same time Laval, whom Pétain has declared his heir at a cabinet meeting in Vichy, and who is actually in close contact with him there, insists that it is he who speaks in the Marshal's name and is 'the expression of his thought.' So the various Vichy intrigues and personages became visibly divided into the two sets of opposed forces which had long existed confusedly at Pétain's 'court.'

Darlan's first act as High Commissioner for Africa was to establish a Bureau of Economics. This fact seemed to give color to the belief held by certain persons generally well-informed, that Darlan had been called to North Africa in the first place by French heavy industry, that is, the Comité des Forges. It was supposed that he was expected to supervise the sale of large blocks of shares in those immense enterprises to anyone able to buy them. On Nov. 23 Darlan announced that French West Africa (whose governor, Pierre Boisson, was his intimate friend) had rallied to the Empire and had submitted itself to him — that is, as he stubbornly maintained, to the Marshal.

On Nov. 27 the French fleet scuttled itself at Toulon, after Hitler marched in on the heels of his warning that he was going to demobilize what remained of the French army and navy.

For an incredibly long time Vichy had been able to force the Allies to countenance the pretense that it was a free power, by applying what may be called the blackmail of the French fleet. Part of it was still interned at Alexandria; some units were held immobile at Martinique under Admiral Robert; part had been damaged or sunk at Mers-el-Kebir; part was still at Dakar. But the bulk of it lay at Toulon, and seemed strong enough to weigh heavily on the fate of the Mediterranean. For more than two years that Toulon fleet, with its Vichy-inclined officers and its overwhelmingly pro-Allied crews, remained a dangerous enigma as well as a strong bargaining asset in Vichy's hands. Since the news of the scuttling emanated from Vichy it was suspected, yet the three French Havas journalists responsible for sending it out were all arrested.

Public opinion the world over was struck by the suicidal heroism of commanders who while remaining aboard had blown up all their ships, and took that feat of legendary courage to mean that the word honor had again its full meaning in France.

Soon after negotiations as to Dakar begun in Algiers resulted on Dec. 7 in an agreement to give the Allies the use of the naval and aerial bases of that key point.

In Vichy, however, favorites of Admiral Darlan and of the former Vichy Minister of the Interior, Pierre Pucheu, were slowly weeded out, a series of resignations on the part of alarmed Vichy officials began. On Dec. 14 Laval made a statement, boasting of having arrested more than a thousand persons prominent in French political life; stating that he had parted company with parliamentary methods, and hoped for a German victory 'because it will prevent our civilization from foundering in the communistic chaos, whereas an American victory will bring in its train the triumph of the communists and the Jews'; and threatening the use of force if necessary to bring about complete collaboration.

Announcement was made that up to date France had sent 108,000 workers into Germany.

About the middle of December, in another theater of war, Madagascar was officially turned over by the British to the Fighting French under General Paul Le Gentilhomme, their commander-in-chief in Africa. The British promised to withdraw completely as soon as the French should feel able to carry on the administration alone.

Darlan, however, continued unaffected and on Dec. 14 named a French Imperial Council, styling himself now 'High Commissioner for the French Empire,' thus causing a violent resurgence of the protests which the Roosevelt declaration had momentarily quieted.

General Giraud, making a tour of inspection of the Allied armies in North Africa, said at Casablanca: 'The only way to unite all Frenchmen is to build a great French army in Africa. We do not wish the Allies to liberate France; we desire to liberate France with the help of the Allies.'

On Dec. 16 Admiral Darlan made his first statement to the foreign correspondents. His speech, affirming his belief in a German defeat, was evidently intended to give the Allies all they were asking, and to silence the criticism against him in England and the United States. He recommended the maximum joint military effort against the Axis; asked for the unity of all French citizens regardless of opinion; announced an 'amnesty' for all anti-Axis elements in Africa, declaring he had begun abrogation of such anti-Jewish laws as Vichy had sought to impose in Africa; cited General Giraud's military activity; stated that North African shipping like all other resources was entering the service of the Allies; declared that the French people and the French Empire would decide freely their form of government after victory; and solemnly averred that he had no personal ambitions but would, after the liberation of France and the French Empire (his sole aim) retire to private life 'with the hope that the future leaders of France may be selected by the French people themselves and by no one else.' He omitted all economic questions and dodged the labor issue by saying that there is little industrial development in North Africa.

Admiral Darlan also declared that the French fleet units at Dakar and Alexandria, as well as those in North African ports, would join the British and United States fleets to fight the Axis.

On Dec. 19 Laval took part in the last session of a conference at Hitler's headquarters, attended by Count Ciano and Marshal Caballero, Italian ambassador to Berlin, on behalf of the Italians, and Foreign Minister von Ribbentrop, Field Marshal Keitel and Marshal Goering to represent the Germans. Laval, accompanied by Charles Rochat, Secretary General of the Foreign Ministry, Jean Bichelonne, Secretary for Communications, was called in to hear the 'verdict' upon the French situation and to receive his instructions as to future French collaboration. Hitler was reported to have asked from Laval that France formally enter the Axis, raise a new army under existing French obligatory service rather than by voluntary methods, join the war against the Anglo-Saxons, furnishing an immediate contingent of 250,000 men for an 'African Phalanx,' and return the government from Vichy to Paris.

On the afternoon of Dec. 24 Admiral Darlan was shot as he entered his office, and died on the way to the hospital. His assailant, a young Frenchman twenty-two years old, was captured on the spot, was tried next day by a French court-martial in Algiers, and on Dec. 26 was executed at dawn by a firing squad. Strict secrecy was maintained as to his identity and the motive for his act.

General Giraud was named as Darlan's successor by the Imperial Council, consisting of General Giraud, General Jean-Marie Bergeret, General Noguès, Gov.-Gen. Boisson of West Africa, and Yves Chatel, Governor of Algeria. The Council's statement read: 'We the members of the Imperial Council unanimously decide: General Henri Giraud is designated to exercise the functions of High Commissioner in French Africa and Commander-in-Chief of the French army, navy and air forces.'

A few minutes after taking office General Giraud issued the following Order of the Day: 'Assuming the functions of High Commissioner of French Africa after the tragedy that cost Admiral Darlan's life, I ask all to stand united behind me to assure the support of our allies and the success of our arms. Only one thing counts: France and her Empire. There is but one aim: Victory.'

It was revealed in London that General De Gaulle recently took the initiative in trying to reach a political and military agreement with the North African group by sending his personal emissary, Air Marshal D'Astier de la Vigerie, to North Africa. It was believed that the appointment of General Giraud as High Commissioner would make possible the union and consolidation of all Frenchmen desiring the liberation of their country.

The year 1942 will remain in French history as the one that marked the end of the Armistice of 1940 and the official re-entry of France into the war of liberation on the side of the United Nations. Whatever may be the enigmas of the future, the striking fact is that for the first time since 1917-18 the regular armies of Britain, the United States and France are fighting together against the same enemy as before. This fact alone should be enough to bring together in unity all French patriots. And while 1940 and 1941 have shown the descending curve that follows shattering defeat, the autumn of 1942 marks the starting-point of a new and reascending line that will lead to the resurrection of France.

1941: France

The year 1941 marked the moral partition of France, something which had not occurred since the kingdom of France was divided by the Plantagenets. What, during the preceding year seemed the unavoidable outcome of French defeat at the hands of the German armies, now appeared to be the logical development of a well-conceived and precisely carried out plan aimed at a permanent lowering of the potential strength of France. An indemnity for the costs of occupation, nearly double that demanded of defeated Germany in 1918, to be paid by a population half the size of the German population; a fixed rate of exchange between the franc and the mark amounting in fact to a system by which goods can be purchased without compensation from the French; a systematic rationing of all foodstuffs, accompanied by the withdrawal from the market of as much as 80 per cent of the available supply of certain vital items; the tightening of restrictions on travel between the two zones; these are the main devices through which the illusory freedom of the government at Vichy, the center of Unoccupied France, is controlled, and its efforts towards reorganization of the economic processes nullified. The division of French territory and the French population, is further accented by the division which now exists between France itself and outlying parts of her Empire.

Free France, directed by a National Committee seated in London, by contrast with Occupied and Unoccupied France, has now grown to the size of a nation. It has territories, an army, an air force, a navy, and representatives abroad. Whereas, in the course of the year, Cabinet ministers have often changed in Vichy, the political system of Free France, although undergoing evolution, has shown a tendency to consolidate rather than to change its leadership. While the government of France proper fades from the political chessboard as the influence of Germany is felt more heavily in all political circles, the administration of Free France emerges as a powerful factor in all international consultations. The last independent unit of France, North Africa, still provided at the end of the year an element of speculation. Its importance grows with the strengthening of the Axis hold on Cyrenaica, and the increasing concern of the United States over the possession of Dakar.

France and Germany.

France is bound to Germany by a temporary armistice signed at Bordeaux on June 22, 1940. This document, although unchanged, has been three times re-evaluated, once in 1940 at Montoire, the second time in May 1941 at Berchtesgaden, and the third time in December, at the historic meeting at Saint Florentin in France, when Marshal Pétain was received by Marshal Goering.

All other developments in France are overshadowed by the inescapable fact that whatever the government attempts to do to rebuild the country is subject to its being acceptable to the Master-Man of Germany.

Financial System.

The dominant financial factor in the relations of the two countries is the question of indemnity for occupation costs, set at 400,000,000 francs a day until May 1941, with reduction to 300,000,000 a day thereafter. Out of this it is believed that not more than 100,000,000 francs a day go towards the upkeep of the German Army of Occupation, the rest being used by Germany in a systematic buying up of supplies needed for the conduct of the war, investments in French industries, and finally the building of new war factories on French soil. Although considerably reduced in size, the government in Vichy still must assume the load of a daily expenditure of 450,000,000 francs for civilian and military services. The pre-war national income of France was placed at 250,000,000,000 francs a year; the yearly indemnity for occupation added to the total budgetary expenditures now adds up to more than 310,000,000,000 francs a year, a sum sixty billions in excess of the normal income. Since French industry and French agriculture are no longer geared to capacity production, since French foreign trade, except that monopolized by Germany, no longer exists, since there is now no influx of money from transportation of goods, the implication is that France is now drawing heavily on her capital to meet expenditures which would normally be paid out of income. The political consequence of such a disastrous financial and economic policy is that France is more bound to Germany by economic dependence than she would be by even the most drastic international treaty.

During the year 1941, only 68,000,000,000 francs of public expenditures were financed through taxation; the rest, 211,000,000,000 francs, was covered by the sale of short-term bonds to the public, or by the opening of credits on the Bank of France. Although there has been no change in the gold reserve of the Bank of France, which is still evaluated at 84,000,000,000 francs, the amount of money in circulation has reached 270,000,000,000, the amount deposited in banks reaching 120,000,000,000. This is the result in part of the clearing system between France and Germany. The indemnity is paid for in francs; these francs are then used by Germany to buy in the French market what is needed for the German economy; the money thus returns to circulation in France. This creates an increasing flow of currency which is not easily invested, as no new enterprises are developed. The only possible outlet is the stock market, where trading in stocks has been extremely brisk.

Cost of Living.

The effect of the forced sale of products to Germany has been an increase in the cost of living. Although no official figures are published, a German source gives the following percentages of increase over 1939:

Foodstuffs

Meat: 30 to 60 per cent.

Milk: 60 per cent.

Eggs: 80 per cent.

Industrial Products

Iron: 60 per cent.

Aluminum: 40 per cent.

Copper: 48 per cent.

Textiles: 100 per cent.

Rubber: 165 per cent.

These figures are understood to be prevalent in the open market; they do not, however, represent the full increase on the so-called 'black market' — the increase actually paid when it becomes necessary to obtain a certain product or foodstuff item. For instance, although a decree in May 1941 set the price of a kilo (two pounds) of green peas at 16 francs, the price paid on the market was often as much as 40 francs (nearly $1.00 at the pre-war dollar-franc ratio). The current 'black market' price for eggs was 4 to 5 francs apiece, that is 60 francs a dozen, nearly a dollar and a half at the pre-war parity. The average earnings of a typical family could be placed around 15,000 francs a year, while the maximum unemployment compensation is now 5,200 francs. The amount of money to be spent in a day, therefore, varies from 10 to 45 francs. Even though there are enough foodstuffs available, the average daily earnings are in the vast majority of cases insufficient to provide for all the food necessary.

Rations at the end of 1941 were as follows:

Fats: 1 lb. 2 oz. a month.

Meat: lb. twice a week.

Coffee: 2 oz. a month.

Tea: 1 oz. a month.

Sugar: 1 lb. a month.

Bread: 4 oz. for children daily, 1 lb. for workers daily.

Cheese: 2 oz. per week.

Rice: from to lb. per month, not available to all categories of persons.

German Requisitions in France.

A dispatch to The New York Times on March 27, 1941, reveals the extent of Germany's hold on the French agricultural market: because of the shortage of wheat in France, the French government has agreed to give Germany 190,000 head of cattle, 600,000 of small livestock, 36,000 tons of oil, 100,000 tons of salt, 60,000 of green vegetables, 8,000 tons of cheese, and 13,000,000 hectolitres of wine, in order to obtain a much-needed supply of wheat, in the amount of 8,000,000 quintals, 100,000 metric tons of bran, and 300,000 metric tons of potatoes. This is but one instance in which France gave Germany more than she was receiving.

French Industrial Resources.

If in the field of agriculture the policy of Germany is to maintain the diet of the population at a point where without causing the spread of disease, it nevertheless weakens the moral fiber and lessens body resistance — this as a preventive against possible revolt — in the field of industry the German position is to encourage collaboration. The airplane and automobile industries were the first to be favorably affected by new agreements. On May 4, 1941, it was announced in Paris by Francois Lehideux, delegate general from the Vichy government, that a tripartite agreement had been signed between France, Italy, and Germany in order to pool the resources, engineering skill, and means of production of the three countries. The French airplane industry, using French labor, is now working at full capacity.

But, apart from the artificial silk industry, all other industries are working at about 35 per cent of their normal capacity. The coal mines of the Lorraine basin, flooded by the retreating French troops, have been partly reclaimed by German engineers. The normal needs of heavy industry were from 400,000 to 500,000 tons of iron monthly; this was fulfilled only to the extent of 85,000 tons a month.

The fertilizer industry cannot furnish French agriculture its normal quota. Out of a needed 2,500,000 tons of phosphates, only 250,000 were obtained for national use, while only 230,000 tons of nitrate fertilizers were available against the normal consumption of 1,000,000 tons a year.

Effect of the Armistice on Labor.

Again, as in the case of the financial and economic state of the country, an extraneous factor dominates the whole question of labor; corresponding to the huge daily monetary indemnity, the labor contribution of 2,000,000 prisoners, most of them men in their productive ages, influences the whole labor situation.

It helps eradicate non-employment. The normal prewar figure for unemployment varied between 300,000 and 500,000 at the end of April 1941, and reached a residual 205,000 at the end of the year. Simultaneously, the German authorities embarked upon a policy of lockouts to accomplish transfer of workers from industries non-essential to the war effort to war industries. Furthermore they offered bonuses and equality of pay to those workers willing to transfer to industrial plants in Germany.

Diplomatic and Political Developments.

While a 'modus vivendi,' that of passive hostility, has been reached with Great Britain, the two active fronts of diplomacy are the Franco-German and the Franco-American. Strangely, the military clash between France and England on the Syrian front, seems to have had little effect on the diplomatic status quo.

On the political stage, stabilization and strengthening of existing elements marked the year 1941. The Cabinet was overhauled for the fifth time in January. Then the resignation of General Weygand in November and his replacement by General Juin as commander of all French forces in North Africa marked, for some time, the end of all hope for continued resistance of the French government in North African territory, in the event of a break with Germany. At the same time, following the final agreement between France and Japan on March 12, 1941, by which France relinquished to Thailand parts of the territorial rights in Indo-China, Rear-Admiral Jean Decoux embarked upon a policy of complete collaboration with Japan. Collaboration with Japan is not an empty word, and with the help of Japanese equipment, French output in Indo-China has been greatly stepped up.

Parliament ceased to be a power in France after a decree promulgated on August 29, 1941. This measure followed closely a series of meetings of a 'rump parliament' of 100 members, at which the government of Marshal Pétain was severely criticized. Members of Parliament may not henceforth meet in 'semi-official' gatherings, while permanent officers of Parliament are relegated to a nearby watering place, Chatel-Guyon. Leaders of resistance to this policy are Jules Jeanneney, president of the Senate, former Prime Minister Edouard Herriot, and representative Louis Marin, leader of a parliamentary group of the Right.

Civil Resistance to Army of Occupation.

The most outstanding individual overt act of rebellion was the attempt on former Premier Pierre Laval on Aug. 28, 1941. Paul Colette, a volunteer in a legion of 15,000 men, recruited among French youths to join the German armies on the Russian front, shot point blank at Pierre Laval and Marcel Déat, a political writer of the Occupied Zone, and ardent advocate of collaboration. This is far from being an isolated case of resistance. Altogether the known number of persons arrested by the Germans in the Occupied Zone was in excess of 20,000, while those detained for questioning in a single week totaled 76,500. At the end of the year 206 Frenchmen had been executed, while the fate of 100 more hostages was still undetermined.

On April 4, the town of Moulins was fined 400,000 francs because public buildings were plastered with de-Gaullist inscriptions. On July 18, 6,200 persons were reported arrested in Paris for scrawling V's on walls, sidewalks and vehicles. On July 28, it was revealed that more than a hundred thousand Parisians had sung the Marseillaise under the windows of the German Commandant's headquarters on Joan of Arc Day, June 11. On August 15, in the course of an anti-Vichy demonstration in Paris, six persons were killed and nineteen wounded. The following day, a sharp warning applying to all of Occupied France was issued by the German military authorities that the entire population would suffer if Communist outbreaks continued. This was immediately followed by an offer of the Paris police to pay a reward of 1,000,000 francs for information leading to the arrest of train wreckers. On September 2, General de la Laurencie, commander of the 8th Army Corps in the battle of Dunkerque, was arrested for defying Vice-Premier Darlan. The accusation mentioned specifically the expression of pro-British leanings on the part of General de la Laurencie. On October 13 the Paris police arrested 7,750 for illegal possession of firearms. On October 20, General Holtz, German Commandant of the Nantes district was shot to death in the center of the city. During the month of November, it was reported that in the course of an R.A.F. raid over the mining districts of northwestern France a British plane was shot down, killing all three airmen. Seven French workers were killed as the plane fell to earth and exploded; and the widows of the workers attended the funeral of the British flyers the next day. In reprisal for the execution of 100 French hostages, 6 Gestapo agents were killed by bombs at Villejuif, a Jewish suburb of Paris. This resulted in added German reprisals and a fine of 1,000,000,000 francs was imposed on Jewry in the Occupied Zone.

France and Free France.

Opposition between the government of Vichy and the administration of Free France during the first quarter of the year was mostly verbal. Denationalization was pronounced by the Vichy government against leaders or followers of General de Gaulle. Youths were forbidden to leave France to join the ranks of the Free French forces. Yet the very fact that a large proportion of the French population, both in the Occupied and the Unoccupied Zone, were in sympathy with the Free French Movement made it difficult for the government in Vichy to go farther in their condemnation of the so-called rebels. On March 8, it was disclosed that because of the large numbers of men of military age crossing from the Occupied into the Unoccupied Zone to enlist in de Gaulle's armies, no men would henceforth be allowed to cross the line of demarcation, unless they were above military age.

Conquest of Syria.

By the end of May 1941 and at the successful conclusion of the Iraq campaign, it had become apparent to the Allies that Germany was using Syria as a base to disrupt the union of Arabic nations protecting the Suez Canal and the road to India. General Dentz, appointed to Syria as government representative was under the surveillance of the Italian and German Control Commission; the German representative, Herr Roser, was able to observe from a splendid vantage point all the Allied moves in Arabia. It was further learned that the Germans were maintaining a crew of 200 aviators at Aleppo, and that the number of German airplanes landing there was constantly on the increase. Prime Minister Winston Churchill declared on Sept. 9 that General Dentz 'was doing his utmost to further German interests.' Three ammunition trains left Syria on May 23, to supply the Iraqi rebels with arms.

There was no choice left. On June 9, 1941, an Allied force consisting of British and Polish troops, together with New Zealanders and Free French forces, mostly recruited among the members of the famed Foreign Legion, crossed the border from Falestine and Iraq. Damascus fell on June 18, with almost no loss of life. On July 11, Syria was completely under Allied control and an armistice was signed on July 14 at Saint Jean d'Arc in Palestine between General de Verdillac, the representative of the Vichy government, and General Catroux, representative of the Free French, assisted by General Sir Henry Maitland Wilson, British representative.

Syria and Lebanon were then placed under the administration of the Free French, and following General de Gaulle's proclamation on the eve of the Syrian Campaign providing for political freedom, General Catroux was named General Delegate, and Representative Plenipotentiary with the mission of discussing the reestablishment of Syrian and Lebanese sovereignty. Free France was to maintain an ambassador to the Syrian Republic, while other nations could appoint only an envoy of a lower rank. The armies of Syria would be those of the Free French while a Syrian army was being trained. The peril on the northern border, and the imminence of a German thrust at Turkey made this decision imperative, while it did not in any way lessen Syrian independence. Similar agreements with Lebanon followed within three weeks. After the signing of the convention, more than 11,000 soldiers of the Vichy forces joined the Free French army.

Free France in 1941.

The territories over which the Council of Defense of the Empire now rules are those of French Equatorial Africa, an area which includes the former German colony of the Cameroons, and extends in the north to the frontier of Libya: the whole of the French possessions in the Pacific, including the vital island of New Caledonia, from which nickel and chrome ores are being shipped to America; and the five French trading towns in India. To these were added in the course of the year the territories of Syria and Lebanon, placed under Free French protection, and the two North American islands of Saint Pierre and Miquelon, off the coast of Newfoundland, seized by Free French forces on Dec. 23, with the acquiescence of the inhabitants. (See below.)

Land and Air Forces.

The Free French Government started out in 1940 as an army, devoted to the reconquest of French territory. The army took part at the beginning of the year in the operations ending in the conquest of Tobruk. On Jan. 22, armored French units penetrated 4 miles within the city's defenses. More spectacular were the operations conducted in Southern Libya; the first raid ended in the capture of the fortress of Mourzouk in the Fezzan range. It was immediately followed by a successful attack on the oasis of Kufra. The raiding expedition started out on Jan. 17 from Lake Tchad, on Free French territory, and arrived at its destination on Jan. 30. On Feb. 5, the Italian aerodrome in the oasis was bombed and rendered unfit for possible landings of relief parties. Two crews failed to return to their base. The last bombardment of the small fort of El Tag in Kufra took place on Feb. 10, and enabled the Free French to land forces to occupy the position.

After the completion of the Kufra operations, the Free French forces moved then to the new theater of war, Italian Eritrea. They took part in the successful assault on Massawa, on April 10, 1941, where they took a large number of prisoners, totaling 3,786 men, of whom 360 were officers.

The Imperial and Allied Forces forming the VIIIth Army, which launched the expected offensive in the western desert of Libya at dawn on November 18, included a Free French Air Force Squadron. The communiqué issued by R.A.F. Headquarters in the Middle East, on Nov. 24, mentioned Free French participation in the Tobruk sector against German panzer units.

General Sir Archibald Wavell wrote about the growth of the Free French was effort in the Middle East as follows:

'As Commander-in-Chief in the Middle East, I have watched from its inception, the growth of the Free French movement in the East.

'In the Summer of 1940, the first contingent of officers and men from the French armies in Syria began to arrive.... Though they consisted of a relatively small group of men, they were inspired with a fierce determination. They formed a motorized unit which played a distinguished part in the Libyan campaign, fighting from Sidi Barrani until the fall of Bengasi. This unit was attached to the famous 7th Armoured Division.

'Meanwhile, other Free French troops arrived in the Middle East, coming from West Africa. They went immediately into action in the Sudan and fought a way for themselves from the southern frontiers of the Red Sea provinces to Asmara and through Eritrea.'

Free French Navy and Merchant Marine.

While the Navy totals thirty naval units, to which must be added about 200 service ships, the merchant marine boasts a hundred ships. The total number of enlisted men in the navy is now in excess of 5,000.

Heading the list of naval units is the Surcouf, world's largest submarine, which figured prominently in the seizure of the islands of St. Pierre and Miquelon.

The famed Ile de France now heads the list of Free French merchant ships. The new thirty-thousand ton, Pasteur, designed for the South-American route, is also one of the largest units. About 60 per cent of the ships are manned exclusively by French sailors, while the rest are manned by mixed crews.

Government of Free France.

The seven million people, now living under the sign of the cross of Lorraine in all corners of the globe, are ruled from London, and Brazzaville in French Equatorial Africa, by a French National Committee of eight members, headed by General de Gaulle, and assisted by a Council of the Defense of the Empire, composed of the governors of the various colonial territories.

This Committee is now recognized as the lawful ruling body by the British, Russian, Belgian, Netherlands, Polish, Yugoslav, Luxembourg, Norwegian, and Greek governments. Other recognitions are now imminent, while the United States, although committed to a policy of full recognition of the Vichy government, yet acknowledges both the existence and the necessary importance of the Free French government. A letter of President Roosevelt dated Nov. 11, 1941, to Edward R. Stettinius, lease-lend Administrator, reads 'I hereby find that the defense of any French territory under the control of the French volunteer forces (Free French) is vital to the defense of the United States.'

St. Pierre and Miquelon.

At the end of the year 1941 the question arose as to whether or not the Havana Convention was applicable to the two islands of St. Pierre and Miquelon.

On the morrow of an agreement between Admiral Robert, High Commissioner for the French possessions in the Caribbean area and Rear Admiral F. J. Horne, United States Navy, guaranteeing to the French possessions in the Western Hemisphere a neutral status, a Free French naval squadron, consisting of four corvettes and the submarine Surcouf, seized the two islands of St. Pierre and Miquelon, off the coast of Newfoundland. Although the Vichy-Washington agreement as to French Western possessions had been officially denied in Vichy, diplomatic representations were made by Washington to the Free French government in London. Immediately after the seizure of the islands, a poll had been taken on Dec. 24, showing that 98 per cent of the islanders were in favor of the Free French administration.

A wide divergence of opinion immediately arose between the British and Canadian governments on the one hand, and the United States government on the other hand. While the British government apparently was taking the view that the poll was legally taken, and therefore binding, the American government expressed its concern over two counts: first, the occupation of the islands without previous consultation with the American Republics constituted a violation of the Havana Act of 1940; secondly, the American government was committed to a policy of tolerance towards the government of Marshal Pétain, and could not without straying from this policy, recognize an occupation which achieved a territorial transfer; furthermore the seizure might drive the Pétain government towards wholesale cooperation with the Berlin government.

Following the address of Prime Minister Churchill before the Canadian House of Commons in Ottawa on Dec. 30, the State Department reversed its original position, and negotiations were inaugurated with the representatives of the Free French to lay the basis for the definite status on the islands.

Conclusion.

While it is not possible to say that the French government has during the year accepted a policy of collaboration with Berlin, this policy is being daily implemented; although it is clearly evident that it is opposed by the vast majority of the French population. The French people, by all the means at their disposal, have expressed their hope for the final victory of the Allies, seeing no prospect of survival in the constitution of a German-dominated Europe.

1940: France

Condition at the Close of 1940.

The year 1940 saw not only the fall of France on the military front; it also marked the temporary eclipse of the century-and-a-half-old tradition of Parliamentary procedure, which even the two monarchic interludes, and the Second Empire to some extent, had respected. Curtailment of civil liberties imposed by the victor, is, we know, unavoidable; voluntary curtailment of freedom, and a permanent estrangement from the French Bill of Rights are the indication of a more profound change than the one brought about by the upheaval of a defeat. The trend could be noticed before the capitulation at Bordeaux on June 24; decrees passed on July 28, 1939, had already curtailed the liberty of opinion in time of war; more decrees were to put a restraint on an unchecked expression of opinion during the year 1940; it was in fact one of the consequences of the new method of warfare as practiced by the totalitarian powers: the Fifth Column defeated even in peacetime the principle of free expression of the democracies. A carry-over from the year 1939, the drive against the Communists in France marked the beginning of the year 1940 and was by far the most important manifestation of the first quarter.

Later in the year, the reawakening of a stronger national feeling, blunted by the long months of inaction, coincided with a change in the Government, and the coming to power of energetic and clearsighted Paul Reynaud, a strong advocate of timely and necessary retrenchments. Unable to check an already too-well established current of defeatism, and often at odds with his closest collaborators, eager to impose new methods of warfare while in midstream, his premiership culminated in the defeat of France. He was replaced by a Cabinet headed by a World War hero, Marshal Philippe Pétain, who negotiated the dual Armistice with the German and the Italian Governments. Then, it was agreed that no permanent terms of peace would be discussed until the war in Europe was over; for this reason alone, the basis on which the 'state' of France was to be run is as unstable now as it was at the time of the signing of the Armistice. The year closed in France on a picture of severe restrictions and painful moral retrenchments. The territory of France proper was divided temporarily in two, while two provinces were permanently detached from the territory and the fate of one or more was still undecided. The French Empire, nearly a hundred million souls strong, was no longer a well-knit whole; one fourth was still wholly free from the Axis, under the leadership of General deGaulle, backed by large French forces and a sizable portion of the French fleet; the rest of the Empire was partly relinquished by France, as in the case of Syria, partly under the control of an Italian Commission, while there was a strong possibility that Indo-China would fall under the domination of Japan, unless there was a joint Anglo-American intervention in the Far-East.

This prospect failed to materialize as the year drew to a close. Northern Africa, at one time the hope of a number of the members of the French Government, who felt that the struggle of the nation against the Axis Powers could be carried on from there, was for a time forgotten, only to come back into prominence as it seemed a not too remote possibility that the stiffening resistance of the Pétain Government might lead to a reconsideration of the original plan, in the face of more insistent German demands. There is no reason, however, to believe that such resistance will reach the point where relations will be severed with the German Government and the territory can be abandoned definitely. Economically, France would, under the new régime, shift from a fairly well-balanced industrial and agricultural state to one overwhelmingly agricultural, supplying the needs in foodstuffs of the Central Powers, and where mass production of the American type would be abandoned in favor of small-scale production of the artisan type, allowing for a decentralization of production centers. Turning her back on the methods adopted at the close of the World War, France would then become entirely dependent upon her neighbors for needed products of heavy industry. It is yet too early to even foresee what changes the new régime would bring to the Empire system: from articles appearing in the German-controlled Temps of Paris, there seems to be a plan afoot for the pooling of the colonial resources of the new Europe to provide free access to the raw materials of Africa and Asia; nothing so far has been said as to the quotas allotted to the defeated nations. Whether France would retain at least a nominal title to her former holdings is a question that must await an answer until the final decision of the war.

It is doubtful that in the case of an Axis victory, France would retain her army and her navy. So far, she has been allowed a small force of 100,000 men, an army not unlike the one permitted Germany after the World War.

Period of Stagnation on the Eastern Front.

Life in France was not much disrupted in appearance during the first quarter of 1940; if it had not been for the absence of all able-bodied men, only subtler signs would have revealed to the casual observer that a life-and-death struggle was on. Yet this period, sometimes referred to as the 'phony war,' was one of restrictions, and of efforts to prepare for the test which was to come in the spring. There was a drive for the intensification of armaments. As the resources in manpower reached exhaustion, industry turned to women; a decree was passed on Feb. 28, 1940, widening the scope of women's work in wartime; it became compulsory to employ women in a number of trades, professions, and public administrations. The decision in each case rested with the Ministry of Labor. Manpower, made available through the employment of women, was placed at the disposal of the Ministries of Armament, Air, Navy. Pending appointment, the workers were allowed to find employment. A census was taken of all women available for industrial and trade work, and training centers were opened by the Ministry of Labor.

On the other hand, unemployment was fought through the inclusion in each 'département' of the head of the state employment bureau among the members of the commission charged to pass upon the applications for relief; it was hoped that the data collected at the time of the investigation of the need could help in the rehabilitation of a number of workers.

Civilian Rationing.

As the war went on, the Allies were faced with the necessity to direct, if not restrict, more severely the supplies permitted to civilians and to organize under government control the consumption of vital goods.

For instance, late in the year 1939, it had become clear that the normal supply of paper pulp would no longer be available, as it came partly from overseas and shipping would be diverted for the transportation of less bulky loads, or of more essential war material. The Northern European source of supply, Scandinavia, would soon become less and less accessible, or would require an increased use of the convoy system. On Dec. 9, 1939, a decree was passed making it compulsory to turn over to the local authorities all stocks of papers or rags weighing over 250 pounds, suitable for the production of paper pulp.

This was followed by a series of decrees rationing more and more strictly the consumption of bread and meat on the one hand, and the supplies of fuel for civilian use on the other hand.

A decree dated Jan. 12, 1940, established that meat shops would be closed two consecutive days a week and that no meat would be served in public places on those two days; the ration per person was fixed at all times at 100 grams, or 150 grams with a bone.

As for bread, an edict dated Feb. 29, 1940, provided for both the restriction of consumption and the protection of the consumer, as it was decreed that no flours, but those enumerated in the edict could be used; bakery shops were closed on Tuesdays, Wednesdays, and Fridays. At the same time the maximum allowance of bread served in restaurants and public eating places was set at 150 grams if the meal cost 15 francs or more, and at 300 grams if the meal cost less than 15 francs.

More severe and more painful was the husbanding of the nation's resources in fuel oil and coal. Gasoline for civilian use could no longer be obtained in large quantities without due justification of the need. Coal and the use of coal were made the object of a decree dated April 1, 1940. No public or private building could be heated after April 1, or before October 15. In case of severe cold weather exceptions could be made by the local authorities for periods no longer than fifteen days.

Also started at the same time, a drive against the consumption of alcoholic beverages, spirits and 'apéritifs,' so dear to so many middle-class French people, provided for the closing on Mondays, Thursdays and Saturdays of places selling liquor to the public (decree of Feb. 28, 1940). Beginning July 1, the sale of liquors was restricted to quantities not less than two liters, a little more than two quarts. The penalties ranged from small fines to the withdrawal of the liquor license.

Attempts to Strengthen Morale.

These measures could be roughly divided into three kinds: tax exemptions; special premiums for the first child of a family, designed to combat the declining birth rate; subsistence allowances of 12 francs a day for the dependents of a soldier, reduced to 10 francs outside of Paris in towns of 10,000 inhabitants or more, and 8 francs in towns of less than 10,000 inhabitants (decree of March 1, 1940) — would make up the first group.

The second group included those measures which offset the feeling that there was a discrimination in favor of foreigners and refugees. The outstanding measure of the group was the decree of Jan. 13, 1940, establishing a measure of common duty for foreigners and Frenchmen alike in time of war. Service in time of war became compulsory for political refugees up to the age of 48, with active service enforced up to 40 years of age and the possibility of enlisting above the age of 40 and below the age of 20.

In time of peace, the period of service required of foreigners would be equal to that required of Frenchmen, although the service would not be of necessity military in nature; the training they were to receive would enable them to be of service to the state in time of emergency. The period of service would be two years for men below the age of 36, the same as for French youth; between 36 and 40 years of age, it would be only one half as long, and one fourth as long above the age of 40. Timely as the measures were, the circumstances of the moment defeated their ends; many willing aliens spent the duration of the war in isolation camps and the decree was little more than a way of offsetting the criticisms often leveled at the administration for admitting too many aliens.

The last group of measures were meant to discourage those elements at home who, through either ignorance or interest, were undermining the confidence of the population. Thus a decree of April 8, 1940, struck at all public servants, or employees of a corporation performing services for the state who engage in propaganda of such nature as to be detrimental to national defense or to further the aims of an outlawed political organization.

But the most serious problem existed in the persons of the 74 Communist Deputies and the two Senators, whose first allegiance, according to the Constitution of the Communist party, was to the Comintern. First to take action early in September 1939 was the Confédération Générale du Travail (French Labor Union). This was followed by government action, hampered however by the inviolability of person of a representative while Parliament is in regular session. A special law forfeiting the mandates of the former members of the Communist Party was passed by the Chamber of Deputies on Jan. 16, 1940, by a strong majority and by the Senate on Jan. 19 with no dissenting voices. In accordance with the provisions of the law, the forfeiture was to be proclaimed by the Senate or the Chamber of Deputies at the request of the Government, the vote was followed by a request to both the Senate and the Chamber of Deputies that 67 members of the lower house and one member of the upper house, Marcel Cachin, be unseated. Another decree proclaimed André Marty, former French Communist leader, and Maurice Thorez, deprived of their citizenship (Jan. 30-Feb. 21).

Action was also taken by the local authorities against their members who had been at one time members of the Communist Party. Some members of the party disclaimed their allegiance to Moscow, but as a ruling provided that membership in the party should have been severed before Oct. 26, 1939, they could not stay the judicial action entered into by the government.

Financial and General Economic Conditions.

Having faced the most urgent problems on the social front, the Government had to solve the increasingly difficult financing of the war. Whatever measures would be taken would have far-reaching consequences in the future; they would involve more than the immediate economic adjustments necessary to pay for the mounting cost of armaments. While they still diverged as widely as before in their underlying philosophies, the war economies of the Allies and the totalitarian Powers came to resemble each other more closely in their methods as the conflict swung into its second year. The currencies were controlled more drastically than at any previous time; France required that all exports of money be cleared through a central office which at the same time exchanged for French currency all drafts coming from foreign countries. The control of labor resources got under way as a means to eradicate unemployment; and the budget, financed out of tax returns, added to the extraordinary armaments appropriation, nearly reached the figure representing in pre-war years the national income; the whole industry of France was put on a wartime footing. The law of January 1, 1940, set an 80,000,000,000 figure to the regular budget for France proper (in francs) and a 2,500,000,000 francs figure to the budget for Algerian expenditures. Again it was decided to finance the cost of the war out of borrowing to the extent of 200,000,000,000 francs. Strictly speaking the regular budget was to cover only the non-military expenditures, while military expenditures were to be financed out of loans. Yet the very impact of the war on the normal economy of the nation swelled the usual figures to much larger proportions. Thus the Ministry of Education received 4,250,000,000 francs more than in 1939; the Ministry of Health received an appropriation of 16,000,000,000 francs, ten times the normal peacetime figure; the War Veterans Pension office received as much as in peacetime. Among the Ministries receiving less than in peacetime were the Ministry of the Interior, the Ministry of Commerce, the Labor Office, the Ministry of the Colonies — which received only one fourth as much as in peacetime — the Ministry of Merchant Marine; the newly set up Ministry of the Blockade received 38,000,000 francs for 1940.

The increase in the sum granted to the Ministry of Health is explained by the fact that the subsistence allowances of the dependents of soldiers are distributed through this Ministry.

Receipts from taxation were expected to reach the following amounts:

Taxes proper: 66,023,667,000 (8,000,000,000 above 1939)

State Monopolies: 717,670,722 (111,000,000 above 1939)

Income from State holdings: 476,094,000 (3,000,000 less than in 1939)

Balances from former budgets: no income expected.

Various sources of income: 12,720,246,390 (3,000,000,000 above 1939)

Emergency resources: 8,000,000 (no corresponding taxes in 1939)

It was deemed that income from the turnover tax would remain approximately on the same basis as in previous years, regardless of the impact of the war. But other taxes assessed on transactions were expected to yield from 15 to 35 per cent less than in previous years.

However, larger returns were predicted from direct taxation — through two emergency taxes: a special tax (personal) on wages and salaries, which alone was expected to yield 1,500,000,000 francs, and the armament tax which was expected to yield 7,000,000,000 francs, although its initial rate was low.

The new taxes were a national emergency tax (rate 5 per cent) assessed on the same basis as the income tax — and a special tax of 15 per cent on certain assets of the taxpayers.

Cost of Living in Early Months of 1940.

As most statistical data became unavailable at the beginning of the war, and the services of the 'Statistique Générale de la France' were curtailed, the figures given herewith are based on estimates made by the staff of the 'Centre Polytechnique d'Etudes Economiques.' The basis adopted was that of the price index of August 1939, computed on the monthly wholesale value of '45' products, both raw material and finished products, of national and foreign origin. In December 1939, the index had reached 131 as compared to 100 in August, then went to 136 in January, and 140 in March where it stood; there was a sharper rise in the cost of raw material than in foodstuffs, in imported products than in national products. Compared with the price rise during the first few months of the war of 1914-1918, the tendency to rise was much sharper than it was then, but the curve evened up in both cases at about the same level; it was reached more quickly in 1940 than in 1914. The greater freedom of the markets in 1939 explains to some extent this quicker adjustment.

The effect of the rise of the cost of living on wages was expected to be offset to some degree by the increase in working hours; they both rose in the same proportion, with a spread of not more than 10 per cent in most cases. The increasing rationing of foodstuffs also tended to keep the prices on a more even level as it discouraged undue speculation. At the same time, a number of restrictions on agriculture, inaugurated in peacetime to maintain the prices of farm products, were removed; surpluses reappeared, a most desirable feature.

Anglo-French Relations.

At the time that the Government was seeking to make its position secure at home, it was also seeking to consolidate its partnership with England on a broader basis to meet the increased demands of the war and to match the tightening of the bonds uniting the Axis Powers. France at Munich had lost the support of the Danubian Powers, up to then a counterbalance to Germany's military power in Central Europe; with the fall of Warsaw disappeared the last hope of checking Germany's advance through a diversion in the East. Therefore the alliance with England was of paramount importance as the nation was now entirely dependent on its sea lanes of supplies for all its wartime needs. The first step in that direction was taken late in 1939: the agreement of Dec. 9, 1939, provided among other things for a close relationship of the two currencies and for a greater measure of economic interdependence; this particular point was again emphasized in February 1940 with an agreement designed to lower or offset the customs barriers on products needed for the conduct of the war. Having thus paved the way for a more efficient collaboration of the two nations, freely entered into, and to be renewed by mutual consultation at the end of a period of six months, one further step was taken toward the union of the two countries with the joint issuance of a note, dated March 28, 1940, defining the political relationship of the two Powers in any future international settlement: 'The Government of the French Republic and His Majesty's Government . . . also undertake to maintain after the conclusion of peace a community of action in all spheres for so long as may be necessary to safeguard their security and to effect the reconstruction, with the assistance of other nations, of an international order which will insure the liberty of peoples, respect for law, and the maintenance of peace in Europe.'

This trend toward a greater amount of joint deliberation between nations, which was then prevalent in Europe as in the New World (to wit, the pact between the United States and Canada for exchange of information on military measures of defense), exemplified since by the recent accord with Czechoslovakia, was to culminate shortly before, and to be reversed at the time of, the collapse of France, with the proposal for federal union between Great Britain and France, the terms of which will be given later in this article.

Through the winter, Anglo-French relations remained on the same footing; they were not profoundly affected by the reverses in Norway, where the British Navy was instrumental in the safe removal of the French army units fighting with the Allied expeditionary forces. Both in France and in England, the failure to attain a reasonable measure of success in the Norwegian campaign was responsible for the shift in policies which brought to power Paul Reynaud in France and Winston Churchill in England.

Reversal of the Policy of Anglo-French Collaboration.

A number of charges were made by French political circles at the close of the battle of Flanders, after the evacuation at Dunkerque; it was then claimed that the British Government had failed to furnish its quota of troops and had also failed to press Great Britain's war effort to meet the industrial needs of the Allied forces. The British Government has since made public the number of troops sent to France to strengthen the front in Flanders, and on the Somme: 415,000 men had reached the front at the end of May 1940; this falls somewhat short of the 26 divisions which the French Government claims were promised at the beginning of the war. Yet it was lower by only a very small margin than the promises made then. On the other hand, British air squadrons fighting in France were at all times in excess of the quota promised to the French High Command at the outset of the war. The British Government also explained that were it not for the swift rate of advance of the German armies in France, a larger number of mechanized divisions would have reached the front; but that, in view of the failure of the Allied forces to make a stand, it had seemed inadvisable to jeopardize the safety of these troops and they were routed back to England.

French Navy.

It was only after the publication of these charges, on the 25th of July, by the Government at Bordeaux, that the relations between the two Allies took a permanent turn for the worse. Counter-charges were published and broadcast in London, and attacks were made on both sides against the heads of their respective governments. This exchange became more bitter after the engagement at Mers-El-Kebir where a unit of the French Navy was given a choice by Admiral Somerville of the British Navy, to follow the British squadron to a British port, with or without their full complement, to join actively the British forces, or to sail under escort to a port in the French West Indies; only if all proposals were rejected would the British forces open fire. A short battle ensued on July 3, 1940, during which the bulk of the French ships were either sunk or put out of commission, with a few escaping to Toulon; as the exact terms of the ultimatum, delivered to Admiral Gensoul of the French Fleet, were not made public, the public protest in France reached tremendous proportions and diplomatic relations were severed.

Almost simultaneously, French vessels in British waters had been boarded by British seamen, and their crews interned. At Alexandria, the crew of a French warship lying at anchor in the bay had chosen internment for the duration of the war. What was left of the French Navy was divided between Toulon and Dakar. On Sept. 23, a French landing force, under the command of General de Gaulle, lay at anchor in front of Dakar. An ultimatum was sent to Governor Pierre Boisson, of French West Africa, who rejected the terms. During the night a landing was attempted at Rufisque, a beach near Dakar. For two days the town was under fire of British guns and defended by strong shore batteries. The resistance, however, proved to be more obstinate than the commander of the 'Free French Forces' had been led to believe from confidential reports; as it became obvious that the town would not fall without important losses in manpower on both sides, the landing party withdrew, after sinking two French submarines. In retaliation, French planes bombed Gibraltar for two days in succession.

Changes in Anglo-French Relations.

Since then, there has been a period of slight improvement, which led observers to believe that a sub-rosa Franco-British collaboration through General Weygand was not a wholly remote possibility. What is known, however, is that the restored faith in the eventual victory of Great Britain, both on the part of some of the French officials, and the rank and file of the French people, had more than military considerations swayed the French Government to a more friendly attitude toward Great Britain and a stiffer one toward Germany. But again toward the end of the year, as the effect of the British blockade became more acutely felt, the tone of the press both in Vichy and in Paris shifted to resentment toward the former ally. As France moved toward a greater measure of subjection to the victorious Nazis, its official foreign policy was bound to become more anti-British.

French Forces in Finland and Norway.

On Jan. 2, 1940, in a telegram to the League of Nations, Premier Daladier gave assurances that all the help that France could then afford would be sent to Finland. Whereas no troops were sent to Finland during the month of January, it was revealed in Parliament on Feb. 17 that France had sent early and substantial help to Finland in the form of war material, mostly ammunition and specifically hand grenades. Again on March 12, it was made clear that France had sent more war material to Finland than any other nation and that the sailing of a French expeditionary force on March 5 had been delayed only by the refusal of Sweden and Norway to allow Allied troops to march through their territory in the absence of a formal demand to that effect on the part of Finland. The landing forces then were obliged to wait in port for further developments on the Scandinavian front and were ready to embark a few days after Norway was invaded.

The invasion of Norway began during the night of April 8; demands were made upon the Norwegian Government while German troops were already landing at various key points on the southern coasts of Norway. The first help sent by France began to arrive on April 17, continuing to April 23. The main body of the French troops, mostly Alpine Chasseurs, commanded by General Audet, were landed in the northern ports of Norway on April 19.

On May 26, French, Norwegian and Polish forces supported by British naval units, made a landing at Narvik, from which German troops were driven on May 27, 1940.

But as a result of the Battle of Flanders, and the incipient Battle of France, also of the entrance of Italy into the war, Narvik and the outlying areas, seized by the Allies on May 29, had to be abandoned; the troops were recalled on June 10, and the withdrawal from Narvik, accomplished under enemy fire, remains one of the great pages of the war. The next day, the Norwegian Government officially announced that all fighting was to cease.

As the result of a secret deliberation on the conduct of the war, the failure of the Daladier Cabinet to adopt an aggressive attitude in the Finnish campaign resulted in fall of the Cabinet on March 20.

French Navy in Early Months of War.

Inaction on all fronts had a dangerous effect on the morale of the population which suffered most of the inconveniences of a nation at war seemingly without justification; the feats of the Navy were therefore all the more welcome since they contributed to break the full in land warfare. The French Navy was extremely active in its operation on the high seas and managed to convoy safely ships flying the national as well as the neutral flag; it also succeeded in keeping the Mediterranean free from enemy submarines. Alone, or together with the help of the British Navy, the French Navy convoyed 3,400 merchant vessels.

Until the signing of the Armistice, individual acts of gallantry were performed by units of the Navy, such as the capture of the freighter Rostock, a 5,000-ton German merchantman, accomplished in record time by a French warship, thus preventing the scuttling of the ship by the crew. Following the early successes of the destroyer Sirocco which had sent three submarines to the bottom within a few days, the destroyer Simoun of the same class as the Sirocco rammed a German submarine during January. Later the French submarine Orphée cruising in the waters of the Skagerrak on May 6 spotted two enemy submarines; two torpedoes were fired, one successfully hit one of the two submarines, which was sunk. Thereafter the Orphée fortunately eluded the search of airplanes and destroyers and regained her base after submerging 14 times in 48 hours, remaining under water for 37 hours altogether and going through a number of mine fields. It was the first time that one submarine succeeded in hitting another one. The spotting and destruction of enemy submarines was considered then of paramount importance as it was estimated at that time that the Axis Powers had disposed of approximately 420 to 520 submarines.

The last instance of collaboration of the two fleets was at Dunkerque, during the evacuation of the British Expeditionary Forces and the remains of the French Seventh army. (See also GREAT BRITAIN.)

Political Developments.

Parliament met in the first sitting of the regular session on Jan. 9, 1940. Daladier who, the day before, suffered contusions in a motor accident, did not attend. Almost immediately, on Jan. 11, Chautemps opened the Government's fight against the Communists by the introduction of a bill which would make it possible for Parliament to pronounce the dismissal of Deputies and Senators who were members of the Communist party. The only important political debate centered around the control of the news channels and the information office by the military authorities. The debate in the Chamber of Deputies during which strong criticisms were leveled at the Government made inroads in the majority. The office was reorganized and put under the guidance of L. O. Frossard, assisted by M. André Février.

The efforts of the Cabinet on the international front tended during this period to keep the neutral nations of Europe on the best terms with the Allies. The policy of cooperation inaugurated by Léon Bérard with Madrid culminated in the signing of a commercial treaty between France and Spain on Jan. 18; the treaty provided mostly for exchange of wheat needed by Spain against various ores used by the French war industry.

Franco-Italian relations were still apparently tolerable. The peaceful character of Italy's industrial effort was stressed. On the other hand the first sign that Franco-Japanese relations were taking a definite turn for the worse was found in the bombing of the Yunnan railroad in Indo-China, through which, it is alleged, a great proportion of the war supplies reaching the Chinese Republican Armies is shipped.

Up to then the Cabinet had received the almost unmitigated approval of the Chamber of Deputies. On Feb. 10, it received a vote of confidence with no dissenting voice. Another vote of confidence was obtained on March 15. Yet there was, in Government circles, and in the nation at large, criticism of the conduct of the war and of the policy of the Government in its dealing with war news. On March 20, after a discussion of the campaign in Norway, the Daladier Cabinet failed to receive the approval of the Chamber of Deputies, and resigned. Paul Reynaud was asked to form a new Cabinet, dedicated to a more aggressive policy in the conduct of the war; its members were mainly drawn from the ranks of the 'Radicaux-Socialistes,' some 'Socialistes,' and the Center. It could not be called a cabinet of National Union; subsequent changes gave it a wider coverage of the numerous political shades represented in Parliament; on March 20, Paul Baudouin, who had been for years prominent in banking as well as in industrial circles was brought in as assistant secretary to the Presidency of the Council; and with the inclusion of Louis Marin, and Jean Ybarnégaray, both from the parties of the Right in the Chamber of Deputies, the Cabinet took on the appearance of national union. Under the pressure of events, Marshal Pétain became Vice-Premier, displacing Camille Chautemps, who became Minister of State, along with Louis Marin and Jean Ybarnégaray. The feud between former Premier Daladier, now Minister of National Defense, and Paul Reynaud became more acute as it became evident that a drastic change should be made in the conduct of the war; it resulted in the shift of M. Daladier from the post of War Minister to that of Minister for Foreign Affairs on May 18; at the same time Mandel was made Minister of the Interior instead of the Colonies. A new reshuffling of Cabinet posts on June 6 resulted in the complete elimination of Daladier, of Anatole de Monzie, Minister of Public Works, and of Albert Sarraut, Minister of Public Education. Reynaud then consolidated the two offices of War and Foreign Affairs; Baudouin became Secretary of Foreign Affairs, while General de Gaulle became Under Secretary of War. To speed up decisions, the War Cabinet was restricted to 11, then to 8 members.

Question of Refugees.

When on the morning of May 24 the German armies entered Belgium, whole villages left their homes and fled toward the comparative safety of France; when ten days later the invading forces had also entered Northern France, after having overrun Belgium and Holland, refugees from all over the north had filled Paris to overflowing, more than a million strong, and were being directed toward the central districts of France. On May 31, there were 1,000,000 Belgian refugees in France, and 70,000 from Luxemburg who joined 2,500,000 French refugees from the Nord, Pas de Calais, Aisne, Ardennes, Meurthe et Moselle and Meuse departments. The latter were all evacuated toward Brittany, the southwest, and central France while the Belgian and Luxemburg people were sent exclusively to the southeast and the south of France. Dutch refugees, numbering 50,000, were evacuated toward Nantes. All those able to work were sent to farms and industries, while those who had had military training joined the French or the Belgian forces. Refugees received an allowance of 10 francs a day for adults, and of 8 francs a day for children; they were cared for in barracks and fed by their own national organizations or by the French authorities.

As the invasion proceeded and the German forces advanced into northern France, new waves of terrorized inhabitants left their villages or cities, and swelled to nearly 10,000,000 the total uprooted population. These went first toward Bordeaux, Toulouse and Clermont-Ferrand, then later grouped around Clermont-Ferrand. Since the middle of October, it is estimated that about half of the total number have been repatriated by groups of 40,000 to 50,000 a day. Although October 15 had first been set as a deadline, the lack of rolling stock on the one hand, and the use of the refugee question as a bargaining point by the Germans in occupation delayed the return of these refugees to well into the middle of December. While this movement was in progress, the peoples of the provinces of Lorraine and Alsace were given a choice between being removed to Poland or resettled in eastern France.

Resumption of Active Warfare on the Eastern Front.

At various times during the winter, there were reports of troop concentration on the borders of Holland and Belgium. When on the morning of May 10 the German troops simultaneously poured over the borders of Holland, Belgium and Luxemburg, the Allies, although prepared for such an eventuality, were not in a position to counter the offensive by immediate troop movement. For one thing there was the question of the neutrality of the Low Countries; there was also a delay of a few days before the first motorized divisions of the Allies rolled through the plains of the north. As it was, they were unable to reach and bolster the Belgian defenses before these cracked and were thrown back on their second line of defense; there was then no homogeneous shield to hold the Nazi advance. And so a war of movement for which the French staff was not prepared was started. Even then, a motorized division, commanded by General Giraud was able to reach its position in Holland and to hold it. The reaction of France was that though dangerous in the midst of battle a change of methods was imperative. Premier Reynaud, opposed by Daladier, who had entire confidence in the strategic conceptions of General Gamelin, threatened to resign if a new Commander-in-Chief were not appointed. The matter dragged on until May 19 when the disaster in Flanders made it appear obvious that any further delay would be fatal. General Weygand had been recalled from Syria and was available on the 19th of May. On May 21 he flew over enemy lines to confer with the French headquarters in the now almost completely closed pocket of Flanders and, through General Billote, with the Belgian High Command. Plans for a counterattack were made in order to close the gap forced open by the German armies, but could not be carried out before the complete breakdown of the French Ninth Army and the decision on May 27 of King Leopold, the Commander in Chief of the Belgian Armies, to surrender. The retreat which ended at Dunkerque, was protected by small forces of British soldiers holding Calais, in order to divert part of the forces directed against the former port. In Calais only 30 of a garrison of 4,000 were safely recovered. While the total figure of the forces carried across the Channel were in excess of 335,000, approximately 60,000 French troops reached England.

With the completion of the main drive against the Channel ports, on June 4, the German armies now turned southward toward the Seine River, finding on their way the hastily consolidated lines of General Weygand's armies. The first contact was soon made; German units filtering across the lines reached the Seine on June 9 at the same time that a new offensive was launched on the Eastern front. On June 13, 1940, Paris was declared an open city to save it from bombing.

Fascist Italy entered the war with forces of 1,600,000 strong on June 10, and on the 17th the main battle of the war on the Southern Front occurred at Menton, where the Italian forces suffered a severe setback.

After the failure of the counterattack on the Somme the French forces were never in a position to reorganize and to consistently hold their ground; most of the fighting was local according to the resources and the pluck of the particular units engaged; indeed fighting remained sporadic until the Armistice was signed, and a small number of units kept fighting on in the east after the signing of the Armistice.

Unable to reach a unanimous decision as to the advisability of carrying on the war from Africa, the Cabinet of Premier Reynaud resigned. A small group of politicians boarded the Massilia, bound for Casablanca in French Morocco. There they were held to be handed over to the new French Government of Marshal Pétain, and interned at the Chateau Chazeron, near Riom, while awaiting trial.

Cabinet Changes Preceding French Surrender; British Offer of Union.

At this time a choice of momentous importance was offered to the leaders of France; whatever the decision, it involved the abandonment of some of the tenets of France's traditional policy and a decision to embark on a policy of closer collaboration with one nation or another. The Reynaud Cabinet had resigned on June 17. There was some rumor that former Premier Laval would be head of a new Government, but as a matter of fact he declined to be associated in any other capacity than that of Minister of Foreign Affairs with a Cabinet which would be linked with the task of surrendering France; as the Ministry of Foreign Affairs had already been given to Paul Baudouin, M. Laval chose to remain outside the Cabinet, which was then headed by Marshal Pétain. As a former Ambassador to the Franco Government in Spain, Marshal Pétain was in a very good position to obtain the good offices of this Government in making contact with the German authorities. The other members of this first Pétain Cabinet were nearly the same as in that of M. Reynaud, with the exception of those who had been in favor of continuing the war. Camille Chautemps was Vice-Premier, Pomaret was Minister of Labor, and General Weygand was Minister of Defense.

A plan offered the French Government was that of a closer cooperation with Great Britain, as suggested in the proposal for a union which would join the two War Cabinets, presided over by a Frenchman, unite the two economic systems, and give double citizenship to all the citizens of Great Britain and France. This plan was presented to Premier Reynaud by Sir Ronald Campbell, the British Ambassador on June 16. It was rejected; the only course left open was that of closer cooperation with Germany.

The Armistice.

The two armistices signed were not as drastic as had been feared; they ended the struggle with Germany on the 22nd and with Italy on the 24th of June. They provided, being similar in their terms, for the cessation of fighting, the occupation of a large portion of France until the signing of the peace, disarmament of French forces, the turning over to Germany and Italy of all political refugees of their nationality.

Effect of Defeat on French Political System.

Less than a month later, on July 10, the two houses of Parliament, convened as a National Assembly in the Casino at Vichy, surrendered to Marshal Pétain all its constitutional powers and prerogatives. The new Constitution, enacted through decrees, does away with a political Parliament, withdraws from a new assembly to be elected at an undetermined time all supervisions of the nation's expenditures, and practically gives a one-man rule to the head of the new French State. The motto 'Liberté, Egalité, Fraternité' was erased from public buildings and stress was laid on the idea of nation, family and work. For a time Pierre Laval, now Vice-Premier, was designated as the successor of Marshal Pétain; however, dramatic events on Dec. 14 culminated in his forced resignation and his appointment as an advisor to the German Administration in Paris. The Cabinet of Premier Marshal Pétain has been revamped several times in order to make it more compact and to eliminate some of the elements most opposed to a collaboration with Germany.

Colonial Reactions.

Morocco, North Africa and Syria seemed to be slated to become the center of resistance of the Empire: both General Noguès and General Mittelhauser had announced that they would resist any attempt to take over their territories. This event, however, did not materialize and the center of resistance was shifted to Equatorial Africa which declared itself for General de Gaulle, together with a number of smaller French colonies in the Pacific, such as the New Hebrides and New Caledonia. No news came from Madagascar for a time, then it was announced that it would remain faithful to its allegiance to the Vichy Government. (See FRENCH INDO-CHINA; JAPAN.)

Effect of the Defeat on the Standard of Living.

After the Armistice, the accumulation of troops and refugees over less than one-half the area of France proper, combined with the almost total lack of adequate transportation for a period lasting more than three months, created conditions in which food supplies were nowhere abundant, sometimes nearly absent where large numbers of refugees congregated. To make matters worse, the central highlands of France, with the exception of a few areas, mostly around Clermont-Ferrand, and in the southeast, are neither wheat-producing countries, nor are they adapted to the cultivation of vegetables in quantities larger than those needed for the normal needs of the inhabitants; neither are they adapted to the large-scale development of dairy products. Finally the requirements of the German army of occupation practically stripped this section of France of such stores of supplies as did exist at the time of the Bordeaux Armistice. Such a condition was expected to improve as the various factors which created it were removed; it was in fact relieved to some extent by the repatriation of some of the million refugees in central France and also by the equalization of the existing supplies with the slow resumption of railroad and road traffic. It could also be alleviated to a large extent by agreements with the German army of occupation reducing the quota of food supplies removed from the area. France before the war as well as in normal times was almost self-sufficient in foodstuffs; there was even enough surplus to warrant exports of butter and dairy products as well as vegetables to England. Although in normal years the wheat harvest would fall a little short of the country's needs, there had been in recent years an accumulation of wheat, conducive to government buying to maintain artificial price levels. France imported less than 1 per cent of her total supplies of potatoes, 4 per cent of wheat, 5 per cent of barley, and 12 per cent of sugar — a larger importation of sugar being offset by re-exports representing half of the imported supply — France also imported 27 per cent of her total consumption of olive oil, most of her supply of rice from Indo-China, less than 3 per cent of her meat supply, less than 5 per cent of her egg supply. Altogether, French economy was self-sufficient to the extent of 83 per cent of the needs of the population. In the light of these figures, it appears that any serious shortage of food can be traced to extraneous conditions, such as the removal of supplies from French territory, the destruction of food supplies as a military operation, the disruption of farm work, and the delay in resettling the refugees.

Most prominently lacking after the Armistice and since, were milk, butter and cheese; also lacking was sugar; vegetables were irregularly distributed. The regulations passed by the Government of the Third Republic remained in force throughout the rest of the year as regards food rationing, meatless and breadless days having been left unchanged. Occupied France fared a little better for a time than the south; there were the granaries of France, the vast plains of the north and of the Beauce, south of the Seine, the rich cattle countries of Normandie and Charôlais and the industrial centers of Lille and Paris. Yet regulations as to the distribution of food were the same as in the south; and the same staples were missing: soap, tea, coffee, rice, wine, chocolate, potatoes. Other commodities were restricted: the ration of sugar was 500 grams a month; that of cheese 200 grams a month; the weekly allowance of fats or butter was 90 grams. Meat, to be had only six days a week, was rationed at 60 grams a day. Bread alone was nearly as plentiful as it was before the war with a daily ration of 350 grams. Yet with the coming of the winter it was expected that the rations would be reduced or else that the supplies would not permit the quotas per person to be reached.

Measures Passed by the Pétain Government.

The most dramatic measure enacted by the new Government was a Constitution to replace the Constitution granted to France at the close of the Prussian War. The preamble of the new Constitution stressed the fragility of the new set-up: 'At the most cruel moment of its history, France must understand and accept the necessity of a national revolution. It must see in it the condition on which its present safety and its future security depends . . .' At a time when the French people were given little if any choice, the Constitution promptly did away with the constitutional guarantees of democratic liberties inaugurated sixty-five years before; the two Chambers voted themselves out of existence on July 10; a series of constitutional decrees vested in the person of Marshal Pétain the power to convene new assemblies, the power to set the budget with the help of a small commission, and the power to lead the nation's forces. Even if new assemblies are convened the head of the state will have the power to make decisions without previous consultations. On July 12 a decree nominated Pierre Laval as successor to Marshal Pétain. On July 30, a new institution, a Supreme Court of Justice competent to pass on political cases, was installed by decree; its members are M. George Ripert, Admiral Herr, General Watteau, M. J. Benoist, M. A. Tannon, and the President, M. Caous. Its first task was to review the conduct of the leaders of France at the time of the defeat.

Subsequent measures taken included the reorganization of the veterans' associations into one single unit on Aug. 25; the suppression of penitentiaries for minors; the revision of the press laws in the direction of greater control; the installation of labor camps patterned on the German ones to take care of demobilized youths and unemployed workers; a new charter of education which reinstates religious education in the schoolroom. Measures of exclusion were taken on Sept. 10 against all persons of foreign origin in public service or working for public corporations, regardless of their length of stay, and regardless of the date on which they acquired their French citizenship.

As the year closed, the government-inspired anti-Jewish policy was toned down, as there was little popular response; the sending of an American envoy helped bolster the resistance of the more pro-British elements in Vichy; General Weygand was dispatched to North Africa to await further developments in the course of Franco-German negotiations; the trials at Riom, after going through the period of preliminary investigations, reached a standstill. The stage was set for the second episode of the struggle between France and the Axis Powers, to be terminated in complete defeat on the battlefield or by submission at the conference table; it became clearer that a change has occurred in the mind of the leaders of France, and that the final form of government and the alliances of France are going to become more and more contingent upon the outcome of the struggle on the Channel.