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moving toward arms standard–
ization, and the Frencb would like
to capture a big share of that mar–
ket. Figures vary, but one source
says sales could run as high as $3.5
billion over the next few years.
Third, renewed French coopera–
tion in the military sphere would
complement President Valery Gis–
card d'Estaing's new political initia–
tive of relaunching the near
dorrnant move toward West Euro–
pean political union. The close per–
sonal relationship between Giscard
and West German Chancellor Hel–
mut Schmidt is viewed as a positive
sign in this direction. As reported in
a recent issue of
L'Express:
"An aide of the President sums
up the current state of thought: 'The
essence of this affair is political.'
You can't cooperate with Germany
and at the same time mistrust her.
You can' t desire to build Europe
and lean toward neutral nation–
alism."
L 'Express
continues:
"Mr.
Gis–
card d'Estaing has concluded that
the theory of a 'national sanctuary'
no longer holds up. France is not
Switzerland. Its destiny cannot be
isolated from the destiny of the
other countries of Western Eu–
rope. . . . The new President feels
therefore that any strategic decision
founded on the hypothesis of the
solitude of France
in
a divided Eu–
rope is in error."
Western Europe as a whole fears
being passed over by U. S.-Soviet
détente and is worried about pos–
sible U. S. troop pullbacks from the
Continent. It is believed by sorne
that Presidenf Ford, whose adminis–
tration appears to be based on con–
ciliation and cornpromise with
Congress, may find it harder to re–
sist Congressional calls for troop
cutbacks. France is beginning to re–
alize that in a world of two super–
powers arrned to the teeth with
nuclear overkill, a "lone wolr' de–
fense policy isn't realistic. Western
Europe must "stick together" - es–
pecially
if
the prospect of U. S.
troop cutbacks ever becomes reality.
lt should be stressed that even
10
though Giscard appears to be in fa–
vor of French forces participating in
the defense of Europe, France's
eventual reinsertion into the frame–
work ofNATO
is
very unlikely. Gis–
card will probably p1:opose the
creation of sorne type of cooperative
organization to coordinate Euro–
pean defense policy, possibly a
council of defense ministers. And, in
addition, possibly sorne type of Eu–
ropean Armament Agency to over–
see the standardization and
purchase of arms.
In light of these new rnoves, one
trend is increasingly evident. Eco–
nornic pressures might bring about
previously unacceptable political
proposals - even an all-European
nuclear defense force.
..
lnflation Soars
Worldwide
Injlation and its corroding social
effects are by no means limited to
Western Europe, the United States,
or those perennial in.flation cham–
pions, the nations of Latín America.
Now
it
is
striking home in Australia
as well. Dennis Luker and Don Abra–
ham report from on the scene.
Sydney:
Australia is facing the same diffi–
cult and intractable problem con–
fronting most modero nations -
double-digit inftation.
Although Australia's rate is notas
high as Japan's, Britain's or Italy's,
the current 15 percent spiral is seri–
ous enough to cause considerable
disruption to the nation's economy.
Projections that it could go as high
as 20 percent by early next year,
rising to possibly 30 percent or
higher by 1976, have done little
to bolster the nation's sagging mo–
rale.
The effects of inftation are seen
everywhere. Confidence in the gov–
ernment's economic policies and in
its ability to cope with the situation
has been shaken. Business leaders
are expressing concern over the con–
tinuing erosion in the purchasing
power of the Australián dollar. Re–
tail prices are rising at an almost
unprecedented rate, making life
particularly difficult for those on
fixed incomes.
Sorne of Australia's largest build–
ing and construction cornpanies are
finding their financia! solvency
threatened by a credit squeeze.
Labor union militancy has greatly
increased, reflecting the genuine
concern many union leaders are
feeling over the hardships their
members are experiencing. Strikes
are becorning more nurnerous and
protracted.
Further compounding the prob–
lem is that Australia, a rnajor trad–
ing nation, must pay continually
inflated prices for its needed im–
ports.
To make matters worse, there are
indications that the government is
deeply divided on how to handle the
problem.
Meanwhile, Australians have
been given a sobering warning by
one of Australia's leading academ–
ics. Professor R.
l.
Downing, eco–
nomics professor at Melbourne
University and chairman of the
Australian Broadcasting Commis–
sion, has stated: "Unless income re–
straints and social reforms can be
achieved,
1
believe we face the pos–
sibiJity of economic collapse and the
destruction of our form of dernoc–
racy."
Regional editor Dexter
H.
Faulk–
ner takes another look at in6ation -
this tiine from a highly personal
perspective.
Washington:
Half of all living Americans were
boro before 1946. Since that time
the value of the dollar has shrunk 60
cents. This shrinkage nas taken only
28 years. At this rate, the 1946 dol–
lar will be worth only
16~
in another
28 years.
If - and experts expect little or no
change - inftation continues and
the dollar shrinks at the sarne rate
for the next years, what is in store
for the average American citizen?
What will you have to earn - or pay
PLAIN TRUTH October-November 1974