Sir: Mr West should learn about the economic history of
France before pon- tificating about it (23 April). It is standing the truth on its head to say, as Richard West does, that France's economic expan- sion came because de Gaulle introduced a hard currency.
The fact is that France's growth was great under the Fourth Republic and this laid the basis for prosperity in the Fifth Republic. And that growth came just because the governments of the Fourth Republic were weak and could never impose British-style 'stops'. De Gaulle devalued the franc when he came to power to a level which meant that it was undervalued for some years and this helped growth to continue until 1962 or so. In 1962 de Gaulle succeeded in imposing a 'stop' — the first one in post-war France, and did himself and France a lot of harm.
It is absurd to say, as Mr West does, that foreign investment and new technology came to France because of a supposed strong currency — not that an undervalued currency can be regarded as strong. No one invests in a country in productive industry because of strong currency. They invest if there is growth. There was considerable growth in France because governments did not impose 'stops' and did not care about inflation. Investors did not touch Britain in 1980 when the pound was strong, any more than they touch it now that the pound is weak, because they know that Britain was not growing then, is not growing now, and as long as the 'strength through misery' lunacy persists, will never grow.
George Stern 6 Eton Court, Shepherds Hill, London N6
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