France "We Have to Adjust"

Relaxing on a powder-blue Louis XV settee, Premier Laurent Fabius met with TIME Managing Editor Ray Cave, Chief of Correspondents Richard Duncan and Paris Bureau Chief Jordan Bonfante in his Matignon Palace office. During a ^ one-hour interview, Fabius strongly emphasized France's need to adapt to changing times. Excerpts:

On the cantonal voting. It is the sort of interim election that is not decisive in national policy terms; generally speaking, people in a period of crisis vote against incumbents in this kind of election. That was good for us when we were in opposition. It is different for us now. Also, we have an economic policy that is aimed at bearing fruit in the long term. That obviously is difficult.

On the 1986 parliamentary balloting. Do these elections mean the results will be the same next year? My answer is no. A year ago a majority of people were against us. Right now they are hesitant. We have obtained positive results. One of the most important issues next year will be: Do you want the people who are in charge to keep modernizing the country or not? This is not the same as the present question: Are you completely satisfied with what is going on?

On modernization. It is a permanent necessity. The driving force behind the idea is that while a number of countries went into modernization between '75 and '82, France fell too far behind. We have to do it intensely right now, which is not easy economically or socially. If we want to be in the vanguard of nations, we have to adjust.

On the U.S.'s Star Wars plan. In opening up new fields for weapons, you risk dismantling an already delicate military balance. The position of France is that peace depends on a strong military balance and on re-establishing it when it is upset. There must be a constant effort to bring this balance to a lower level. Regarding the prospects opened up by President Reagan's Strategic Defense Initiative, I think that it is too early to arrive at definitive conclusions. In any case, there is nothing there that could lead France to modify its own defense policy, which is based on its deterrent capacity.

On the strength of the dollar. A smooth decline is required. From the U.S., a more balanced budget and a better policy on interest rates would be helpful. As for us, we need a determined political and economic European will. Quite frankly, if we don't want to be overdependent on the dollar, our European economies have to be strong, and we need an alternative to the dollar, which means the yen and the development of the European Currency Unit.

On socialism. Is there really a trend toward conservatism? Or is there simply a trend against the people who happened to be in office during the economic crisis--between 1975 and 1982--and (who) were often Socialists or Social Democrats? In Germany, for example, you had Helmut Schmidt, and he was beaten. In periods of difficulty there is a feeling of selfishness. Maybe the traditional way the Social Democrats and Socialists had of intervening, with its emphasis on the state, was a bit too heavy. Our ways of thinking about our problems had to be questioned. It is true in France and it is true across Western Europe. But I do not think it is going to be a permanent tendency.

On his youthfulness. People are a bit fed up with the old images; therefore it's an advantage. At the same time, you must not get into a gimmicky situation: "I am young, so everything is possible." In any case, the problem will become less and less real--because I'm getting older very quickly . . .