"une plan consists OI SIX maIn L1n08 01 0o-0ng

The Government has roduced from 12% to 10% the limit sot to the encours bankaire— i.o. the proportion by which total cradits advanced to industry aro allowed to rise during the yoar from Fotmary 1963 to Febnary 1964. By the ond of August these advances woro already 5% over the FPolruary levels during tho current siz months, therefors thsir rise will be limited from another saven to anothor 5b. Wire purchases terms haya bein etiffened, For cars, the minimum deposit goos up from 25 to 35%, and the maximum period of loans is reduced from 24 to 21 months, The deposit on television sats soes up from 20 to 25%, tut kitchen equipment such as refri: gorators, which have been doing badly, escapes the new restrictions..eere- 2. FISCAL MsASURSS. A reduction of the budget impasse from its Coiling of Fr 77,0001 to Fr 4,75Q@1 -—bringing the budget into surplus above the line,is planned. This is to be achiored by rastraints on public spending but also by new taxation, of which one now measure is unorthadox and important. A tax on _ capital gains from sale of real estate is boing imposed, for sales of property from the beginning of 1963. Tho amount by which selling pricos during 1963 have exceeded 1950 values, cver and above an average increases in value calculat— ed by the tax authorites, plus an allowance of 25%, is to bo taxable as income at the ordinary progressive tax rates. Presuming that this tax proves administratively workable, it should be a haavy one; real estate valu:s in France have rocketed in tha lest fo. years. In other dirast taxation, the highest rate of taxation on personal incomes is to go up from 65 to 70%.