The Speeches of JohnEnoch Powell

POLL 4/1/3Speeches, July 1966-July 1975, 5 files

POLL 4/1/3 File 3, March-May 1968

Image C: The Literary Executors of the late Rt. Hon. .1 Enoch Powell & content '1(:, the copyright owner. 2011.

1/3/1968 The Economy/Industry Exports/Imports Manchester Junior Chamber of Commerce

March-May 1968 Page 89

2/3/1968 Law and Order. Labour/Socialism/Trade Unions . Trade Union Law CPC Conference on Trade Union Law,

DarwenMarch-May

1968 Page 82

15/3/1968 Defence and Foreign Policy Nuclear Deterrent Defence Debate, Conservative Central Council, Bath

March-May 1968 Page 76

19/3/1968 The Economy/Industry Business And Politicians British Refrigeration and Air Conditioning Assoc.

March-May 1968 Page 72

22/3/1968 The Economy/Industry Statutory Wage Control Public Meeting, Bletchley March-May 1968 Page 67

30/3/1968 The Economy/Industry Productivity And Earnings Wales and Monmouth YCs Conference Llandrindod Wells

March-May 1968 Page 60

1/4/1968 The Economy/Industry Exchange Rates Annual Conference, FCS March-May 1968 Page 55

5/4/1968 The Economy/Industry Price Of Gold Burslem Cons. Club Centenary Dinner March-May 1968 Page 52

17/4/1968 The Economy/Industry Industrial Specialisation Aircraft-Marine Products Factory, Bideford

March-May 1968 Page 47

18/4/1968 The Economy/Industry ‘Business For Profit’ Bradford Junior Chamber of Commerce March-May 1968 Page 43

19/4/1968Health and the N.H.S. Education and Literature. Government and Nation.

National Census Businessmen’s Lunch, Wolverhampton S.W. Cons. Assoc.

March-May 1968 Page 37

20/4/1968 Immigration and Social Cohesion Immigration West Midlands Area CPC AGM, Birmingham

March-May 1968 Page 31

3/5/1968 The Economy/Industry Investment And Consumption Liverpool Luncheon Club March-May 1968 Page 26

11/5/1968 The Economy/Industry . Labour/Socialism/Trade Unions . Unions And Inflation Public Meeting, Chippenham March-May

1968 Page 13

24/5/1968 The Economy/Industry Inflation - Government and Nation Blackmail Public Meeting, Gedling, Notts March-May

1968 Page 3

Extract from speech by the Rt Hon.J.EnochPowell,MP, at a public meeting at Carlton-le-WilIows Grammar School, Gedling, Notts

at 7.30 p.m.Friday,24th May,1968.

I recently described the whr,lc, prio*

nr,.7P=' policy as a sustained and succesTul

conspitacy against the common sense of the

public. Unfortunately it is not without pre-

cedent for a small group of intevnted people

to succeed in hoodwinking the vast majority of

their fellow-citizens and thus bringing them

undier their own control. One of the devices

employed is the principle of "divide and rilleV

It is the oldest dodge in the repertoire of

politics, and one cannot help according the

practitioners who have engineered all sections

of the pubdic into acceptance of the need for

prices and incomes control a certain grudging

admiration for the skill and success with whic

on this occasion they have used the old device

Like all artful dodges, it is hasicaily

simple. You tell the consumer and the worker

that the real object is to keep down prices,

which the wicked producers are trying to raise,.

-2-

Then you pop round and tell the producers that

the real object is to keep down wage costs; and

of course they are pleased to hear this, because

that implies higher profits. So the buyers of

labour hope to do the sellers down, and the

consumers hope to do the producers down; and

while they are glaring at one another, the true

culprit, the cause why wages ;:md prices generall)

keep on rising, the government itself and its

expenditure, gets away with murder scot free.

This is the method by which tyrants have

often risen in the past - they make each class i

the community unpopular with the rest, so that

they can always command a majority of support fo

each step in the usurpation of power. This

explains the apparent paradox that a labour

government has put the trade unions in the dock

for causing what is called "wage infltion", no

less than they have put the producers and dis-

tributors in the dock for causing what is called

"price inflation". By tacking nyi the words

-3-

"wage" and "price" onto the simple word "infla-

tion", they have persuaded each class in the

community that the other is to blame - while,

for the benefit or all the rest, there is the

expression "wage-price spiral" to sucgest that

really both of them are to blame alternately.

Of course when there is inflation, prices

rise, including wages, which are the price of

labour. That is what inflation means; the

statement is a mere definition. But it is as

absurd to say that inflation occurs because pric

rise as to say that it rains because the ground

gets wet. You cannot have rainfall without the

ground becoming wet: the one is inseparable from

the other; but we do not mistake the result for

the cause. Yet a prices and incomes policy,

which tries to prevent inflation by forbidding

people to receive h gher wages or obtain higLer

prices, is like supposing that, if one could only

find a way to stop the ground from getting wet,

that would hold off the rain and ensure fine

-4-

weather.

As I say, the spokesmen of the sellers and

of the buyers of labour - the trade unions and the

employers' organisations - have both fallen for

this,Simple trick and admitted their own share of

the imputed blame out of delight at seeing the

blame attributed to the other side as well. But

it is the employers whose capitulation has been

the more disgraceful in itself, and much the

more dangerous in its consequences, because they

have thereby thrown away the entire case, of

which they ought to be the chief exponents, for

a free economy as against a state-managed econom34

Unless the owners and managers of capital

aim at what appers to them to be the best return

obtainable from it, there is no sense or justifi-

cation in private capital and a free economy at

all. The claim that private enterprise in a

competitive economy always tends to direct

resources and effort to the usewhich will give

people generally the greatest satisfaction, can

only be sustained if maximum return - measured o

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course over a reasonable period of time - is the

objective of the producer. Otherwise the machine

does not work. The moment private enterprise con-

sents to "justify" a price except', by saying "I

judge this to be the price whichkill yield me the

best return", at that moment private enterprise

commits suicide. To governments which ask a

producer to "justify" the price he charges for

his goods or services, there is one answer and one

only, which is not self-destructive. It is,

(using the words in the literal, not the abusive,

sense): "mind your own business". The speaker

might add: "If of course you make a law which lays

down the exact price I am to charge, I shall obey

it, and you will be responsible for th conse-

quences, which will be highly unpleasant. Until

then, good-day!"

I am sorry to say that with rare, though all

the more commendable,exceptions this is not the

reply which British firms have been giving. Still

less is it the reply which the secretaries,

directors, chairmen, and all the rest, of their

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so-called representative associations have been

giving. On the contrary, whenever a politician

or a minister or an official has the impudence to

qu4stion them about their prices, they immediate

begin to whine and whimper in a way which would

disgrace the victims of a revolutionary tribunal,

faced with the firing squad. Not a word do they

breathe about maximising profits, or getting the

best return on capital employed. Instead they

talk about costs (as if the cost of an article or

service were an# reason or explanation for the

price); they plead that they haven't raised their

prices for so-and-so many years (as though that

mere something to be proud of); they talk about

their need to finance new investment (as if they

had some self-evident right to exptand); and they

probably finish by burbling something about

exports. In short, they talk about anything but

the sole justification for their cucn ex steuce:

maximum profit.

Many of them do not even wait to he interle-

lrogated, but ero round to the Ministry t'irt and

ask for permission - as though the Ministry had

any right or power to give or to withhold per-

mission - to charge a particular price; 441,4 then

they flourish it at their customers as justificaP

tion, when the mere idea of "justifying" a price

is a contradiction of the private enterprise

system itself. As for dividends, which the

government has never yet had even the shadow of

an enabling power to control or interfere with,

we have been treated for two years now to the

humiliating spectacle of the great household name

in private enterprise going crawling to the

Treasury, to ask what dividend they may be allowe

to distribute, and then pretending to their

share-holders that they are bound by the delphic

oracle df Great George Street.

It would be bad enough if the only reason

for the disavowal of the central principle of

private enterprise by those who profess to

practise and preserve it were fear. No doubt fear

is one counsellor and, as usual, a bad counsellor.

-8-

The industrialist or business man, turned amateur

politicianx for the nonee persuades himself that

it would be"unpopular" or "might be misunder-

stood" or whuld lead to who knows what "diffic-

ulties" with the government if he talked the

plain, straight-forward language of private

enterprise. So he talks the language of social-

ism instead, thus committing two cardinal errors.

ne is to suppose that by standing up to govern-

ment and holding one's ground, one comes off

worse, whereas in fact al) government is a bully

and like a bully takes full advantage of those

who a-e frightened but runs away from anybody who

squares up to it. The otheistake is to suppose

that it is unpopular to state plainly and fear-

lessly the principles on which one acts, whereas

in fact the public has a very fine nose for hum-

bug, and is unimpressed by private enterprise

when it talks the language of socialism. So the

only result is to prompt the thought that if the

very people who represent private enterprise and

make their living by it are read to

it, there must be precious little to be urged in

its favour. Thus they cut the ground from under

the feet oe its exponents.

As I say, fear is a great motive; but it is

not the only one. The prospect that the same

policy which subjects his prices and his dividend

to influence and control will do even more to

keep don the price of labour is the bait with

which the producer, as employer, has been hooked.

He is as unwilling to concede to his labour as he

is to assert for himself the principle of seeking

the best market. Yet the urge of a man to get

the best price for his brains and h's abour is as

essential a driving force in a free economy as th

determination of management to obtain the maximum

return on capital employed. It is t-

ard as ambift self-defeating for private

enterprise to try to deny labour the highest price

the market can offer as to disavow for itself the

maximum profit that can be obtained. The two are

inseparable aspects of one and the same system.

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I am afraid that historically employers,

and above all employers' associations, are very

prone to this temptation. Only last week the

retAring President o the C.B.I. told the annual

meeting that he "hoped no company would consider

withdrawing from their employer organisation in

the belief that acting on their own they could

negotiate a more favourable deal for themselves".

The plain English for those last words is:"pay

their employees a higher wage than 4444 their com-

petitors were able to pay". It is hardly an

advertisement for the private entaprise system

when its leading spokesmen reveal Vlis attitude o_

mind, and hardly calculated to identify private

enterprise with a high wage economy in the mind of

employees and the public. The devilish cunning of

the government is that they have succeeded in

making the employers' associations their accom-

plices in the plot to hold down the price of

labour as part of the guilt-transfer mirmbux

mechanism of the prices and incomes

Extracts from speech by the Rt. Hon. J. Enoch Powe

• M.P. at a public meeting at the Girls' High School,Chippenham, at 3.30 p.m., Saturday, 11th May 1968.

We Live in an age of conspiracies. They are

far more successful and well managed,conspiracies

than the conspiracies ise history. Perhaps th4V

improvement in efficiency is one of the benefits

which we owe to the technological revolution.

At any rate, the age of the o/d-fashioned

conspirator is no more. He no longer gathers

with his fellows in tiny groups, admitted by

paas-word to huddle round a dark /antern in a

dingy garret. Today the conspirators sit in the

seats of the mighty, at the desks of Ministers

and editors; they live in the blaze of continual

publicity; their weapons are the organs of

opinion themselves.

The politics of the last few years have been

little more than a series of conspiracies

conducted by the politicians and the Press againat

the common sense of the public. They have for

the most part been brilliantly, audaciously

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411successful. Opposition, criticism, questioning

have been beaten into the ground, not by force

but by something much more efficacious: by

tacit agreement on the part of those who speak

and write to speak and write the same kind of

nonsense, year in year out, until ordinary men and

women no longer dare trust their own wits but give38up the struggle and deliver themselves paiavely

to the guidance and domination of their betters.

The Higher Nonsense is a mightier instrument of

mass repression than machine-guns, grapeshot

and cavalry charges ever were.

The success has been so complete that we fail

not only to be astonished at it, but even to

perceive it.

A fortnight ago people were hailing it as a

unique and paradoxical event that trade unionists

in various parts of the country dow44itoola in

order to show their agreement with what one Tory

politician was understood to have said. The most

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laughable and far-fetched explanations were

invented to account for a happening which seemed to

many people so improbable. The adjeetive out of

all those applied to it which I personally found

the most attractive was vsurrealie*". Yet all

the time something far more paradoxical and 114a-e-umd

was going on, as it had been going on for years,

and the very same trade unionists and their fellow

employees throughout the economy wa were the

examples and the victims of it.

The entire trade union movement has been

brought to accept that the trade unions are

responsible, wholly or partly, for rising prices

and the falling value of money. It is really an

astounding spectacle: the trade unions have

clapped the handcuffs onto their own wrists,

gone into the dock, and pleaded guilty to causing

inflation. Mind, I Gm not blaming them. ae are

al/ lenient when the captives of the 670.4.0m, after

weeks of imprisonment, long interrogations, noise,

blinding lights, lack of rest and nameless

threats and tortures, are brought into court and

4 -

Ilivoluntarily confess to whole catalogues of crimes

against the state. That is nothing to what has

happened to the trade unionists. Al/ the economists,

(almost), all the newspapers (almost), the

political parties and, especially strident/y and

confidently, the party which had been regarded as

their sown", the Labour Party, are at them day

after day declaring that they, the workers, the

men in the street, are to blame for inflation by

doing too little and asking too much.

Everybody around them seems to accept it.

The public at large apparently believes it; the

parson in the pulpit preaches it; unkindest cut

of all, their own trade union in most cases, and

certainty the Trades Union Congress on behalf of

all the unions, admits the accusation and mereltd

argues about who e/se is to blame and about how

their own members are to be "restrained" -

the same word as ona applies to a dangerous madman.common

dho shall complain, then, if even the sturdy/sense

of the British working man gives way at last under

the onslaught? "I suppose', he murmurs, wit must

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110be my fault, since everybody says so. I don't

understand how it possibly can be but apparently

I ought to try to be ashamed of myself and to mend

my ways in some unexplained manner,

Yet al/ the time the common sense qf the

people tells them that it is not so. Everyone has

heard the story of how Galileo, as he rose from his

knees after recanting the heragy that the earth

moves round the sun, was heard to remark softly to

himselp 'But all the same it does'. A dangerous

situation builds up when an accusation which they

feel in their bones to be false is fastened mx upon

whole classes of men and women, indeed upon a whole

people. They become resentful, and not without

reason, feeling that everyone is leagued in a

conspiracy against them to pretend that black is

white and innocent i8 guilty.

This indignation qf ordinary people at being

made the butt and aka scapegoat for evils from

which they themselves are the first and principal

sufferers has already gone far to destroy the

Labour Party whose offence in their eyes was not

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mere/y conspiracy but betrayal as well. In itseU,

would not regard the downfall of the Labour Party

as tragically as Mr. Shinwell does. The evil is

that the thing does not stcp there. The who/e

atmosphere of industrial relations, the whole

attitude sf the citizen to his country and its

future.has been poisoned for years by this

unanimous determination of the -vocal organs of

opinion to pin the blame for our financial and

economic ills where it does not and cannot belong.

To resentment is added frustration.

3xperiments are sometimes carried out on animals,

which, by subjecting them to contradictory

stimuli at the same time, by telling them to

perform incompatible actions, reduce them to a

state of destraoted helplessness. For years past,

Britain has been2e-great laboratory for this sort

of experiment, and her population has provided the

material. They have been told that they ought to

make more profits, that profit is an excellent

thing, and at the same time that they ought not to

receive more profits, because that is against the

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national interest. Thew have been told that they

ought to oftudiotizthe economic achievements of other

3uropean nations; but when they seek the best price

obtainable for their goods or their labour, they are

told that they are wreching the economy.

remember three years ago happening to say that

man who did not seek for himself and his family what

seemed to him the best return for his effort or his

savings was guilty of economic sabotage; and I also

remember that I was denounced in Parliament and

called a traitor for daring to say such a terrible

thing. The end result cf this process is that

people give up trying to understand what it is all

about, and also give up feeling that it is worthwhil

to try at all. The fashionable word for this

result is "alienation° . The citizen feels alienate

from all parties and all government; for alL of

them seem to be 'agin' him'.

Let it therefore be said, loud and clear,

in the simplest, plainest terms available: the

°trade unions do not cause rising prices, because the

trade unionscannot cause rising prices. Neither

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can any other section or individua/ in the

community cause rising prices - neither the

workers outside trade unions, nor the employers,

nor the manufacturers nor the distributors, nor

the shopkeepers nor, for that matter, the

Old Age Pensioners. Inflation, with all its

attendant consequences, comes about por one

reason and one reason only: the Government causes

i t.

To say anything as plain as that is to arouse

a chorus of imprecation. All the c/ever people

start ta/king at once in a loud voice about

'cost push', 'demand pull', and 'monopo/y power'.

But look who is doing the talking. If it is

true that governments cause inflation and that

the citizens are the innocent victims, whose is

the vested interest in denying it? Answer:

governments themselves, and a// those who thrive

on an increase in the power and expenditure of

governments. Governmentecand their attendant

host of commentators and propagandists, have

executed what is perhaps the greatest confidence

• - 9 -

trick of all time, a conjidence trick on a

gigantic scate: they have caused inflation year

after year, and at the same time persuaded

everyone that somebody else was to blame. It is

equivalent to stealing a man's wallet and then

locking him up for thejt. The achievement is

all the more remarkable because the facts are so

blatant.

Whose claim on the national income has been

rising? That of the employees? No: their

money income since the war has barely kept pace

with the rise in prices and in production.

In fact, every year since 1961 the income of

employees has been falling as a proportion of

production, and that proportion is considerably

lower than it was in 1938. What element in

costs has been rising? Wages? Again, no.

In fact, the share of wages in the cost of

turning out a unit of production has been

falling over the last ten years and more.

Whose claim has beerL rising, then? Answer:

the Government's. The Government's claim on

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production now is haU as large again as it was

in 1938; and although it fell in the ear/ter

half of the 50's, it has been rising again ever

since, until today it is right back to immediate

post-war levels. The effect on costs is even

more startling. If one looks at the money cost

of producing a unit of output, it is the tax

element which has increased over three times as

fast as the payments to employees. Looked at

in real terms, the proportion of costs which is

accounted for by tax has doubled in the Last ten

or twelve years, while the other items have

remained the same or fallen. There is no doubt

who and what has been doing the pushing and the

pulling: it is public, expenditure.

YetAW the unanimous din.year in year out,

lehre574 has been proclaiming the drowses)falsehood

that al/ this.is the fault of the people

themselves, they have been cowed into a condition

of passive acquiescence in the absurd charge.

In that condition, they are vuLnerable to the next

stage of the operation, which is to subject them

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to contror—to a dictatorship, benign,

bureaucratic, even parliamentary, but still a

dictatorship, which is to prescribe and enfarce

the whole content of their lives - prices, wages,

production, the lot. This is the operation of

which Mrs. Castle has been put in nominal charge;

but the same machine will be working at full/'

e.1usle churning out the Higher Nonsense, like

some mightli Wurlitzer, chanting: 'Prices and

in-omes poloc,d. We need a prices and incomes

7/e've got a prices and incomes policy.

Our prices and incomes policy works' ...and so

on ad in,finitum.

prefer however, this afternoon not to enter

the gloomy tunnel of that prospect. Let us

instead make the opposite assumption. Let us

suppose that the people of this countru were

somehow to wake up out of the mesmeric trance

in which they lie and with one mighty gust of

Homeric wrath were to shout tc the politicians

ana the economic priesthood, to the planners and

the leader-writers: ' top tc:lking nonsense at us:

It is ljour fault - yours, not curs". Yhat would

- 12 -• they then want some party in the state, and

surely the Tory Party, to say on their behalf?

Theid would want us to say that 1-;overnment hence-

forth will not ride on the backs of the people

but will keep its demands within the growth of

the nation's genera/ wealth. This is something

the electorate cannot do for themselves; they

do not make up the Budgets and estimates, nor do

they frame the programmes of expenditure. Let

the Government do but this, and the sermons and

threats, the controls and boards, the prices and

incomes acts, the dreary apparatus of punitive

Budgets - all can be shot into the dus bin.

Next weals, this Government will publish,

and the week afterwards they will tru to force

through second reading in the House of Commons,

uet another Prices and Incomes Bill. It ought

to be entitled, ° An Act for blaming the British

people and interfering in a// their affairs in

order to dfstract attention from the real causes

and the true remedy of this nation's financial

predicament"; but I suspect the actual wording

will be a shade less candid. This is our

opportunity. This is the Tory Party's

opportunity to speak out „for the people as a

whole. It is not a time to hum and ha, or to

blur the issue by talking about "voluntary" this

and watstunon-statutory° that. These subtleties

are not understood, and for the very good reason

that they are not intended to be understood and

are not capable qf being understood. What we

have to say is that the Government ought to

conduct its affairs, and that we as a Government

will conduct our affairs, in such a way that

the excessive demands qf public expenditure, the

sole ultimate cause of irmflation, cease to plague

the people qf this country and to interfere with

all their plans and alt their actions. Let us

give that promise. Nothing less will do.

•Extract from Speech on "Saving and Taxation"by the Rt. Hon. J. Enoch Powell M.P. to theLiverpool Luncheon Club, at the CarltonMasonic Club, Eberle Street, Liverpool. At

1 p.m. Friday, 3rd May 1968

Viewed from the standpoint of the economy

as a whole investment and consumption are

descriptions of the kinds of work which people(- r i jz

are doing, ' 'By these terms we classify their

work as devoted to providing on the one hand

for future consumption or on the other hand for-

current consumption. As you see, the terrils413rt',C

very misleading; for the true contrast is not4.

between consumption and something else, but between(e/,f

present and future consumptioni. Thus, the

statement that a country is investing, say,

20% of its gross national product is a

description - but a highly abstract, rarified

and over-simplified description - of how its

people are occupying their brains and their

hands. Unfortunately, like many other abstract

over-simplifications, the politicians have got

hold of this one and made a fetish of it.

- -,

one wishes to look into the

future. The amount of ialk consumption here

and now which we are prepared to give up for

the sake of future enjoyment depends not only

on how much larger that future enjoyment will

be, nor on how much less certain it is, but

also on how distant it is in time. Few

would be interested in giving up a

satisfaction now in exchange for dead

certainty- (the pun was unintended) of twice

as much 200 years from now.

I hav used anothe tricky littlp word,

even shorter than that word, "given". It is

the word "we". Who is this "we", that chooses,

and how does this "we" do its choosing? My

anwwer is that the "we" is all of us,

choice is the upshot of all our individual

choices, acting and reacting upon one another,

and that humanity happens to possess a

wonderfully delitate and sensitive instrument

for doing this sort of choosing. I refer to

the rate of interest - in the widest sense of

that term, including all forms of return upon

• investment. .)-71

When anyone says that there is note

enough investment in an economy; he is

making one of two assertions. Either he is

saying that the collective choice of "we"

ought to be set aside in favour of somebody

else's choise, usually his own or the

Government's; or e±owe he is saying that

somebody or something is playing about so

as to make the,rate of interest lower than

it would naturally be. In thiscase, the

obvious answer is just to stop playing about,

and let the capital market through the rate

of interest perform its function of expressing

our collective choice as between present lwart

and future consumption. On the otherhand,

if the intention is deliberately to set our

choice aside, then we are faced with a bid

for domination, no matter how innocently it

may be concealed under the form of a

proposition about what the national percentage

of investment "ought" to be.

_ 5 _So far, however, we. have been looking

at the wt-n-C/3""tina quantity of investment;

but this is just where the over.simplification

of talking about investment in percentage

terms jipts so ludiabus. Anyone can see that

it is better to have less investment in

what produces more satisfaction, than more

investment in what produces less satisfaction.

Indeed, it is easily possible to conceive

that a nation could be worse off absolutely

as a result of increasing its investment

ratio*, In short, what we want is not only

the righta...maunt of investment but invest-

ment of the right sorts; and once again

there are the two meantings of "right" -

right, in the sense that it is what we

collectively choose, or right, in the sense

that it is what someone else, i.e. the

Government, decides we ought to have. If

the choice is to be th.tt

?

',then the same instrument-, but this time

geared to profit, which signifies the

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consumer's sIgicitt approval, ,y-

-.4.474-44-e-151---amt once again4 those who

wish to substitute someonce else's judgment

for ours will wish to damage the profit

mechanism and throw it out of gear altogether.

No wonder that the fetish of more investment

has been so remarkably ineffective in the

hands of the politicians, and that all

attempt..cto produce any correlation between

the percentage of investment and the growth

of national 3,Tell-being have proived

successful&

Speech by The Rt. Hon. J. Enoch Powell, M.P. to tho Annual General Meetingof the West Midlands Area Conservative Political Centro at the Midland HotelBirmingham, 2.30 a.m. Saturday, 20th April 1968.

ei.WA jyy1,4A SC-1‘,64,144Th 11,1",21The suprome function of statosmanship is to provide against preventable

evils. In seeking to do so, it encounters obstacles which aro deeply rootedin human nature. Ono is that by the vcry order of things such ovils are notdemonstrable until they have occurred; at each stage in their onset thoro isroom for doubt and for disputa whether they bc real or imaginary. By thcsame token, they attract littlo attention in comparison with curronttroubles, which are both indisputable and prossings whonce the besottingtomptation of all politics to concern itself with the immediate present atthe expense of the future. Abovo all, people arc disposed to mistake pre—dicting troubles for causing troublos and oven for desiring troubles; "ifonly", they love to think, "if only people wouldn't talk about it, itprobably wouldn't happen". Perhaps this habit goes back to tho primitivebelief that the word and the thing, the name and the object, arc identical.At ail events, tho discussion of future grave but, with offort now, avoidableevils is the most unpopular and at the same timo tho most necessary occupationfor tho politician. Those rho knowingly shirk it, deserve, and not infro—quontly receive, tho curses of those who come after.

A week or two ago I fall into conversation with a constituent, a middle—aged, quite ordinary working man employed in one of our nationalisodindustries. After a sontonce or two about the weather, ho suddenly said:"If I had tho money to go, I wouldn't stay in this country". I made somedeprecatory reply, to the effcct that even this government wouldn't last forover; but ho took no notice, and continueds "I have three children, all ofthem boon through grammar school and two of them married now, with family.I shan't bo satisfied till I have soon them all settled overseas. In thiscountry in fifteen or twenty years time the black man will have the whip handover tho white man".

I can already hoar the chorus of execration. HOT dare I say such ahorrible thing? How dare I stir up trouble and inflame foelings by repeatingsuch a conversation? Tho answer is that I do not have the right not to doso. Hero is a decent, ordinary follow Englishman, who in broad daylight inmy uwn town says to me, his Member of Parliamont, that this country will notbo worth living in for his children. I simply do not have the right to shruFmy shouldors and think about something clse. What ho is saying, thousandsand hundreds of thousands aro saying and thinking — not throughout GroatBritain, perhaps, but in tho areas that aro already undergoing tho totaltransformation to which there is no parallel in a thousand years of Englishhistory.

In fifteen or twenty years, on oresentt-onds, there will be in thiscountry A million Commonwealth immigrants and thcir descendants. That is notmy figura. That is the official figure given to Parliament by the spokesmanof thc Registrar General's office. There is no comparable official figure fort year 2,00C# but it must be 3 region of 5-7million, approximatoly

r

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ono-tenth of thc whole population, and approaching that of Greater London.Of course, it will not bo evenly distributed from Margate to Aberystwyth andfrom Ponzance to Aboydeen. Whole areas, towns and parts of towns acrossnEngland will bo occupiellby different soctions of the immigrant andimmigrant-descended population.

As time goes on, the proportion of this total who arc immigrant-descendants, those born in Pix,gland,Lwho arrived hero by oxactly the sameroute as tho rest of us, will rapidly increase. Alroady by 1985 the native-born would constitute the majority. It is this fact above all which createsthe extromot-:rgency of action now, of just that kind of action which ishardest for politicians to take, action whero the difficulties lio in thepresent but thc evils to be prevented or minimisod lic several parliaments

.)Fahead. 19"e'ce-4'/A-(" ,1"`•il -The natural and rational first quostionwith& nation confronted by such

,a prospect)is to ask: "how can its dimensions be reduced?" "Grantod it be notwholly preventable, can it be limited, bearing in mind that numbers are ofthe essencellle significance and consequences of an alien element introducedinto a country or population are profoundly different according to whether

-.1-that elemont is 1 per cent or 10 per cont. 'rho answers to the simple andrational Question are equally simp;.e and rationalt by stopping, or virtuallystopping, further inflow, and by promoting the maximum outflow. Both answersare part of the official policy of the Conservative Party.

It almost passes bolief that at this moment twenty or thirty additionalimmigrant children are arriving from overseas in Wolvorhampton alone everyweek - and that means fifteen or twenty additional families of a decade ortwo hence. Those whom tho gods wish to destroy, they first make mad. We must be mad, literally mad, as a nation to be pormitting the annual inflowof some 50,000 dopend'Oxits, who are for the most part tho matorial of thefuture growth of the ithmigrant-doscended population. It is like watching anation busily engaged in heaping up its own funeral pyre. So insano axe wethat we actually permit unmarried persons to immigrate for the purpose offounding a family with spouses and fiances whom thcy have never seen. Lot

APolle:41 (11:14-44" 4—no-one suppose that thf4flow of dorondonts w-i-±- ,u cma ica Joy tail of t Onthe contrary, even at the present admission rate of only 5,00C 0 year byvoucher, there is attfficiont for a further 25,000 dependents per annumad infinitum, without taking into account the hugo roservoir of axistingrelations in this country - and I am making no allowance at all for fraudulententry. In these circumstances nothing will suffice but that the total inflowfor settlemort should be reduced at once to negligible oroportions, and thattile nasessary legislative and administrativo measuros be taken without delay.I stress the words "for sttiemont". This has nothing to do with tho entryof Commonwoalth citiztns, any mcro than of aliens, into this country, for thepurposes of study or of improving their cualifications, l e (for instance)the Com onwealth doctors who, to tho odvanti- of their OWE countries, havo

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enabled our hospital service to be expanded faster than would otherwise have

boon possible. These are not, and never have been, immigrants.

I turn to re—emigration. If all immigration ended tomorrow, thd reto of

growth of the immigrant and immigrant—descended population would be

substantially reduced, but the prospective size of this element in the

population would still leave the basic character of the national danger

unaffected. This can only be tackled while a considerable proportion of the

total still comprises persons who entered this country durin thc lest ton

years or so. Hence the urgency of implementing now the second element of the

Conservative Party's policy: the encouragement of re—emigration. Nobody can

make an estimate of the numbers which, with generous grants and assistance,

would choose either to return to their countries of origin or to go to other

countries enTious to receive the manpower and the skills they represent. No—

body knows, because no such policy has yet been attempted. I can only say

that, oven at present, immigrants in my own constituency from time to time

come to me, asking if I cam find them assistance to return home. If such a

policy Toro adopted and pursued with the determination which the gravity of

the alternative justifies, the resultant outflow could appreciably alter the

prospects for the future.

It can be no part of any policy that existing familiss should be kept

divided; but there are two directdons in which families can be reunited, and

if our former end present immigretien laws have brought about the division of

families, albeit voluntar- or semi—voluntarily, we ought to be prepared to4arrange for them to be re—united in their countries of origin. In short,

suspension of immigration and encouragement of re—emigration hang together,

logically and humanly, as two aspects of thc same approach.

The third element ofthe Conservative Party's policy is that all who are6.7.0..

in this country as citizens 45,A..er be equal before the law and that there

shall be no discrimination or difference made between them by public authority.

Is Mr. Heath has put it, we will have no "first—class citizens" and "sucond—

class citizens". This does not mean thet tho immigrent and his descendants

should be elevated into a privileged or special class or that 1=Icitizen

should be denied his right to discriminatelin th,e management of his own

affairs between one fellow—citizen and anothor)or that ho should be subjected11^44-4 -A-Vat.414to ,!Ga:-,1••---1 as to his reasons and motives for behaving in one lawful manner

rather than another.

There could he no grosser misconception of the realities than is

entertained by those who vociferously demand legislation as they call it(e

"against discrimination", raether thev be lea-'er—writers Of the same kidney

and sometimes on the same newspaperrhich year after year in the 1930's tried

to blind this country to the rising peril -which confronted it, or archbishops

who live in palaces, faring do1ioatclwith tho bedclothes pulled right up

over thoir -Heads. They have got it :exactly end diametrically -wrong. The

discrimination and the deprivatien, the sense of alarm end of resentment,

lie* not with the immimrant population but with those among whom they have

come and are still coming. This is why to enact lemislation of the kind

before Parliament at this moment is to risk throwing a match onto gunpowder.

The kindest thing that can be said about those who propose and support it is

that they know not what they do.

Nothing is more misleading thanncompard4 n bo491w4;en the Commonwealth

immigrant in Britain he American negro. The nemro population of the

United States, -which was already in existonco bofore tho United Statos became

a nation)started literally as slaves and wore later given the franchise and

other rights of citizenship, to the exorcize of which they have only

gradually and still incompletely come. The Co:monrealth immigrant came to

Britain as a full citizen, to a country which know no discrimination betTeen

one citizen and another, and he entered instantly into the possession of the

rights of every citlzen, from the vote to free treatment under the National

Health Service. Whatever drawbacks attended tho immigrants - and they wore

drembacks which did not, and do not, make admission into Britain by hook or by

crook appear less than desirable - arose not from the law or from public

policy or from administration but from those personal circumstances and

accidents which cause, and always will cause, tho fortunos and experience of

one man to be different from anothor's

But while to the immigrant entry to this country was admission to

pr vileges and opportunities eagerly sought, the impact upon the existing

population was very different. For reasons which they could not comprehend,

and in pursuance of a decision by default, on which they were never consulted,

they found themselves made strangcrs(in.tleir own country. Thoy found thoir

7ives unable to obtain hospital beds in childbirty their children unable to

obtain school places, their homes anl neighbourhoods changed beyond recogni-

tion, their plans and prospects for the future defeated at work they found

that employers hesitated to apnly t the immigrant workor the standards of

discipline and competence rewired of the native-born worker; they began to

hear, as time rent by, more and more vcicos which told them that they wore now

the unwanted. On top, of :leis thrw now laa r that a one-way prviloge is to

be established by act of parliament a law, which cannct and is not intendod,

to operate to protect th.em or redress their griovancos, is to be enacted to

give the stranger, the disgruntled and the agont nrovec,7;tcr the power to

pillory them for their private actions.

In the hundreds upon hundreds of lotterm I received -zhen I laet spoke

on this subteot tmo or three months P.27o, therc was ono strikina feature whichwas largely nor and which I fir1,1 ominous. All Iiembers cf Parliament arc usd

to the typical anonymous correspondent; but what surprised and alarmed me was

the high proportion of ordinary, docent, Sensible people, writing a rational

and often oll-ednoated letter, who believed that they had to omit their

address bocauso it van dangerous to have conilLitto-.: thesciwco to paper to a

hember of Parliament a _ecinm with the 70073 1 'cL-y1ox=essod, and that theyo ald riak iDthcr penalties or reprioals if ,ney 07..rr_ known to hove done so.

The sense of being a porsecuted minority which is growing among ordinaryEnglish people in the areas of the country which are affectod is somethingthat those without direct experience can hal-4.1y imo#Lno. I am going to alloy: just ono of those hundreds of ocobie to speak for me. She did give hername and addross, which I have dotached from the Jotter which I nm about toroad. She was writing from Northumberland about something which is habeeningat this momert in my own conatituency

"Eight years ago in a respectable stroet in Wolvorhampton a house was sold toa negro. Pow only ono white (a woman old-age pensioner) lives there. Thisia her story. She loot her husband and both her sons in tho war. So sheturned her seven-roomed housel her only ascot, into a boarding house. Sheworked hard and did well, paid off her mortga#e and beat to put something byfor her old ago. Then tho ihmmigrants MO-Ted in. With growing fear, she sawone house after another taken over. The quiet strcet became a place of noiseard confusion. Regretfully, her white tonants moved out.

Olho day after tho last one left, she was a:nakoned at 7 a.m.by twonegrocs who wanted to use her phone to contact thoir ombloyer. When shorctfused, as she would have refused any strangor at such an hour, she Wasabused and feared she would have boon attacked but for tho chain on her door.Immi0Tant families have tried to rent rooms in her house, but she alwaysrefused. Hor.little store of money wont, and after paying her rates, sho hasloss than £2 per week. She wont to abrly for a rate reduction and was soonby a young girl, who on hearing she had a soven-roomed house, suggested sheshould let uart of it. When she said the only people oho could get worenogroes, th,..) girl sail 'racial erojulice won't get you aJnywhere in thiscountry'. So she wont home.

U l'he telephone is her lifeline. her family ray the bill, and help her outas best they can. Immigrants have offered to buy hor house - at a price whichthe prosoective landlord would bc able to recover from his tenants in weoks,or at most a few months. She is bocoming afraid to go out. Windows arebroken. Sho finds oyercta pushed through_ her letterbox. When she goes tothe shops, she is foilowel by children, charming, wide-grinning picc4nies.They cannot speak Englioh, but ono thG7 know. "Racialist", they chant. When the now Race Rolotions Eill is bassed, this wogan is convinced cfft wil7go to briscn. Lrd is sh so 7ironp7? I begin to wonder."

Eno other dangorous dolusion from .!:hioh tnoso who. are wilfully orotherwise blind to roalitios suffor, is summed ur ih the wo1-1 "intcgration".To bo intograted into a population moans to become for all practical purcooesindistinguishable from its other 1TOW, 7t on ioles, where there aro marked ph7sical differences, osbocially of colour, integration is difficult,though, ovr a period, not impbssiblo. Tncre are among tho Commonwealthimmigrants 7;L:: tc, li7 neTe in the last fifteen years or so, many thousands whose wish and 1-::.-.77.2Dc;is to be integrated 'ci whose everythought and endeavour is 'ont in that diroction. •E't to inrgine that such athing enters the hoads of e groat and .72,ToNingmajirity of i=j7canto and their

—4—

descendants is a ludicrous misconception, and a dangerous ono to boet.

arc on the voryge hare of a change. Hithorto it has boon force of

circumstance: and of background which has rorderd the vory idea of integration

inaccessible to the :greater part of the immigrant population — that thcy never

conceived or intondod such a. thing', an: that thoir numbers and physicalA4v4'

concentration meantkthe pressures to7ards integrtion which normally bear apon

any small minority did not operate'. 1.077 7o are seeing tho growth of zpositive

forces acting against intomration, of vested interests in the preservation and

:sharpening of racial gnd ifferonces, ,cith a viow to the cacrciso of

actual domination, first ovor follow—immigrants and thon over the rest of the

population, The cloud no bi,ggor thmn a man's hand, that can so rapidly over—

cast the sk7T, has been visible rocontly in Wolverha=ten and has shown signs

of sproading cuickly. The words I aro about to use, rarbatim as they aPpoared

in the local press on 17 February, are nott mine, but those of a Labour Membor

of Parliament who is a hinister in tho brosont Government. "T'ho Sikh

community s campaign to maintain customs aar --ro'--rio tu in _Britain is much to

be regrcAtesi. Tiorking in Eritain, particularly in ths public services, thoy

shoali be propared to accept tho terms and conditions of their employment. To

claim special communal rights (cr should onc say rites?) loads to dangerous

fragmentation within society, This communalism is a canker whether practised

by ono colour or another s is to be strongly condemnel." /Ili credit to John

Stonohouse for ha-ging lid the Insight to poTtivo thot, and tho courage to say

it,.

For these dangerous and divisive eloment the logisabion croposod in the

Face Foltions Bill is the very oabulam mhey nan t flouris4. Fore is theirmeans of thoc::nn that the immigrant communitico can cranise-sto consolidate

thoi-c members, to aitate and camp,a4n ainst their follow citizens, and to

esorawe and deminato te.) rest 71th tho lesal 7oapeho igion the ignorant and

the ill—informed h,:vo TrOni let. Lo I lock ahead, I am filled with foreboding.

Like tne Roman. T soom to 7-s:eo "tlle 17miver Tiber foaming with much blood".

That tragic and intractable phenomenon ThiC?L 72-.-'6o'n with horror on tho other

sidc of the Ltlantic but which the're is interwovon tith tho history aMevistonco of the States ftsolf, is coming u_pcn us harc by our own volition

and our 0,7)n nolcos. Inieed, it has all bat come. In numerical terms, it

will bo _of Lmerican proportions long before ths ciod •f the century. Cn17

rosolute and grgont actlon t;lll avert it ovon f107. 7nether there will bo the

v;ill to demand and obtain that action. I dc net know. JILT , know is

that to see, and not to speak7 would be tne great botrayl.

Extract from speech by the Rt. Hon. J. EnochZowell at a Businessmenls,Lunch of.theoolverhampton soutn—wes ...onservativeAssociation at the Moline-1.x Hotel, Wolverhampbn1 p.m. Friday 19th April 1968.

"77-77,644 j'IWCt77-- The mania of the questionnaire bids fair

to be one of the curses of our age. T#e

amount of time which people who hare something

better to do spend in completing perfectly

futile forms and answering utterly fatuous

questions would, if put to better use,

represent a considerable addition to our

>"--

nat'onal inc

There are signs of this mania spreading

to the general register office, which conducts

the national census. I don't know whether any

of you was fortunate enough to be selected as

a recipient of a recent communication from the

Registrar General, enclosing a questionnaire

which I hold in my hand. If you were, and

have not yet completed it, you rill have

received a further request, dated January this

elling you that "the response has

been excellent", and that "most -f the people

approached have sent in their completed forms".Assuming tl-,at this information lakes youthorouFhly ashamed of your f'Olure --s far to

cooperate, you will I hope address yourself to

filling in the questionnaire.

It starts off swimmingly: "Have you ever

had an operation for i?:allstones?" to which

most people should have little difficulty inreturning a straight affirmative or negative.

Things soon begin to thicken however. You

have to write down 'how many cups of tea,

coffee and other hot beveraes (cocoa,

chocolate, 'Ovaltine' — is that advertising!? —

etc.1 you consume before breakfast, at

breakfast, morning break, midday meal, tea—

time, evening meal, bedtime and other". I

like "other" presumably that is for the

people who brew up at 2 in the morning. Butthat's just for a start. en the ney.toage

we get down to business. "How many tea—

spoons of sugar do you take" in eachbeveraEe, and "are the spoons level or

heaped?" (Ore can't be too careful what one

does in a modern state!) Then comes a bit

of personal history: "have you alwaz,,s taken

the same amount cf sugar in these beverages?"

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We then turn to solids. On an "averageday" how many slices of bread do you eat': Anddon't just imagine you can slap down any oldfiEure. You have to pick youx way through"average slice", "extra thick" and "extra thin'cut off "large loaves" and "small loaves"; soit's lucky fcr you if you only eat "rolls ".

The candidate is now in a position toapproach the more advancedparts of the paper.For instance: "how many fizzy drinks., non—alcoholic" by the glass do you drink per week,or, if you take sugar on your breakfastcereals, are the spoons you use tsa s000ns ordessert spoons, and are the spoonfuls level crheaped? Don't fill that in if you are like me,and prefer porridge; for there is a separateentry on its own for those who taLe porridge.

Now I am sure yon ne ' to knowt7qat the coot of this lark is being out ofthe research funds of een ali:,:abet7a Colle7e, and that you Th7e been partioi'

in a diet ar. 'urve:for to ,,,:nefit 2,f

leet yeu not 'oe so e:eeased if ,y71:. 7St

allothr form, dated Larch of this also

from the ceneus office, which aeks (hold it:)

for details af your earnings in the financial

year Apri1 19-66 4 Larch 1967. All quite

confidential, of CoUr30; guaranteed nc leaks

even to 'other government deoartments" (RUE34;1

whichl); and you really cught to feel

flattered, because this is a servey for the

Derertment or Education and 3oince on the

earnings 4' 2eople with particular academic.,

profeseional or vocational qualifieations'.

The questions include, for instance, whether

one had "selosidieed or free housing cr car

for own dee previdild by the employer" and

"what was the total net profit before tax

,but after dedIcting expenses, from aelfa

ployment in the financial year 1966/7.

T.;ow, I have it on the aethority of the

Registrar General that "sugveys ef this: tyee

are a relatively new development of ear een-

sus work". "Each ene," he eays, "hao so far

been jaiged on its eerite". fhie ie jest as,4e11; for •f these are e

exee-1..

—

the "merit", then this promising new .7rewth

of volunteer bureaucracy had better be stamped

on here and now. A glimpse of what will

otherwise be in store for us is eforded by th

complaisant self—satisfaction of the authors.

"We feel", says the Re,,zistrar General, "that

to use the census as a sample frame for this

kind f enquiry is a valuable deve.Lopment and

a step forward in making the fullest use of

the material we have. ae approach to the

public has to be made by as because we cannot

give anyone outside the census organiatioh a

list of names and addresses".

ometimes it is a minor detail which

casts a flood of light upon the malaise f a

whole scciety. 7ais inciDient 1:ervereion of

he cenTae machinery deril'es from the 7ery

same general assumption which is ervadirig and

stranling our life and oar economy, nee:y,

he conviction that tlie citizen is perfectly-

aff;Ilo:

unlos nxia-.7:ad controlled,

nlanned and (.).,7i;:anis ,

frc

which 'Dureaucrats have condut‘ted intc hisbenihted behavitqr. he Hatin=,1 Econol::ic

Plan cf the — 7:e are threatened ',vithancther, kno7 — and the Diet and helth

Survey cf the 'ae: eral 2e7ieter Cffice, they areail branc'f:es, scme tiny, s=e larize, of this

sas, ;ervasive, tciscncus uirae treecsntemlot for the inds-,::endence, liizn-lty and

cam2etence 32 the individual.

'.2cu have maie ''•-)uoineeo -7or rfiYtheme. fm•..-,•. have not done oo from ahv nar,:-ow

motiveo of self-interaat. In-deei, I know thh,t

:oany pf your metnbere. ara ".en,-7a.zod Ln

'fc.. have taken thIo t'oeo-,e

hecaee Lbt"on7'.;:ction that the 1,rofit

ir.ore than, ah7 other 7yote:7; devLool

-.7i7ao" evezvhoi7, rich ah.•7 oort

available cnance tf hat the;,, -:•ohoLb 7stOin7 it. If yo,..1, "dld not 'oel1e7e t'at

"..-:sineoo for jor,ofit ,i;ac Ln tha

intereot, :fohl wt-_,11,1 not otand '+

Of co.,r':.e :ao do n-)t '"ay that.

motive al""Nayo -"oado to the -:':eet aoonoL-Oo

man 1:911.1 ,H.i0•2that. dc

you mwet zay-,

ethci mi 7111 7_oad to azythin,:'" och 7ooi

economic deod--,7"no _-,00n the 7,,ha'.e.

(1;az2t IJIck toe "!;inhere', ,1,•Tou - ahd

- then '„ertain7,::- noo• d.•.• eloe can':

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choices only criterion vhich a od

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instance, that undefinable yet insistent im—perative known as "fairness". 3at beca„zsea counsel is a counsel of perfection, that 4sno excuse for imoring it and doing the exactopoosite. e ought to strive to get as near to the ana tainable as possible; and you,whose theme is "business for profit', oa.27ht

to keep us up to the mark by demanding t#eutmost neutality in the tav system andscrutinizingevery departure from neut7-alityto see if it is unavoidable or can beeliminated.

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NEWS SERVICEReeasetiam 20.00 Hours/5th pril, 1968

309/68

Extract from a speech by the Rt. Hon. J. EnochPOWELL,M.B.E., M.P.,(Wolverhamton S.W.),Opposition Front Bench bpokesman on Defence,at the centenary dinner of the Burslem Conser-vative Club, an Friday, 5th pri1 , 1966.

Throughout this week the brice of gold on the London

market has fluctuated around 37 or 36 dollars an ounce.

This may seem a strange observation with which to celebrate

the centenary of a Conservative club in the Potteries.

Yet that fact carries a message of immense encouragement

and cheer to all of us in the Conservative Party. Rightly

understood, it is one of the best pieces of news that has come

our way for quite a time.

Yoa probably know the story of the man who grabbed a

rope while falling down a dark shaft and just managed to

hang onto the end of it. Hour after hour he swung there,

enduring agonies of fear and exhaustation, screaming in vain

for help. .Lt last his fingers could maintain their hold

no longer and he fell three inches. The bottom had been

there all the time, dry and firm, just beneath his toes.

Three weeks ago do you remember the fateful Ides of

March, the gold crisis, the blateing headlines round the

world, the Chancellor of the Exchequer coming down to Parlia-

ment at three in the morning in an atmosphere like Chamberlain's

announcement of war with Germany. Then the financial pundits

of the nations lushed helter-skelter to aahingtrIn,,and the

world held its breath while their deliberations continued.

/hat was it

issued by Pubhcity Department, Conservative Central Office, 32 Smith Square, Locdon SW1.01-222-9000

309/68 POWELL - 2 -

What was it all about ? bimply this (please try not to laugh

while I tell you): for twenty-two years W'estern mankind had

been convinced that utter disaster and confusion would ensue

unless gold was worth.35 dollars an ounce, no less and no

more. In order to maintain that sacred equation, called

"the key-stone of the world monetary system", the United

States (which looked upon it with much the same-reverence as

the star-spangled b:ssmep itself) continued to sell gold at

35 dollars an ounce until the huge accumulation in Fort Knox

was in sight of exhaustion, while it plared one set of rest-

rictions after another upon the freedom of .Lmerican citizens

to travel and invest.

To the .Lmericans these hardships were novel; but of

course to us they have long been familiar. We affect to

look with horror upon earlier centuries when it was a crime

to dispute a tenet of orthodox belief. 1i4e do them an in-

justice. Here and now it is a crime for an Englishmen to

dare to put the proposition that one ounce of gold equals

35 dollars to the practical test by buying and selling. You

had better be caught with hard drugs on you than buying or

selling gold.

time went on, the most extravagant ex-,Dectationsmounted.

The more stubbornly the central banks maintained that gold

was worth no more than 35 dollars an ounce, and the more it

cost "dmerica to maintain the assertion, the more people dis-

believed it and the higher they -pitched their estimates of

the true or free price. .t last the rope-hanger had to

loose. The United States itself could not cling on any

longer. In future they would only sell gold at 35 dollars an

ounce to other central banks: the rest of us scrAtle for

what we wanted in the open market./This week

309/68 PaivELL - 3 -

This week in London the open market price was two or three

dollars.up - yes, sir, just two or three dollars. All that

agony all these contortions, all the pretences and protestations,

all the restrictions and the regulations and the criminal

offences - all for two or three dollars, a margin of well

under 10 per cent.

'-hat a lesson there is for us here. If once you stop

price from working, there is no end to the difficulties into

you which elunge deeper and deeper. "Oh what a tangled web

we weave, when we first practise to deceive •.. The inSidious

thing is that when reality is left behind, when genuine price

is abandoned, eeople begin to fear the truth and want to be

protected from it. They become a prey to all sorts of nameless

dreads and superstitions. That is the path on which this

country is set by socialism to-day. The Socialists say:

Vie dare not have erices and wages op nly and freely fixed

in the market; that wpuld be too dangerous; they must be

controlled: Then people begin to imagine that the gap between

the true ;Tice and the artificial price - between the mans

permitted earnings and his market worth - must.be very g-reat,

and so more pressure builds up, and more controls are called

for, more criminal offences are created, more antagonisms

arise between different interests. V4e have to come to facts

in the end. In the end they force their way through and make

themselves effective. How much better to face them steadily

and continuously, by letting Price - genuine, com;etitive,

market price - tell us the truth. If we did, we shoud

often find how narrow is the intervening sap, which sel,arates

our controlled, confined and tildid existence from the self-

assurance and the unfettered choices of free men.

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BRITISH REFRIGERATION AND AIR CUNDITIONIUG ASSOCIATION

S esch by the Rt. Hon. J. Enoch Powell M.B.E. M.F'. at the Annual Luncheon oe 1 March 1968 at the Euro a Hotel London.

Mr. Chairman, my Lord, Ladies and Gentlemen,

I am often surprised that you people in industry have any patience at all

with us in politics. The fact that you continue to associate with us - ney, more

- that you are so generous from time to time as to make us your guests on an

occasion like this is a standing paradox. For do we not spend our time alternately

thwarting you and patroniaing you by our acts and by our words. Nothing is a more

popular activity for politicians than telling industry how to run its own affairs.

We seem to be convieced that unless we form councils and committees amply staffed

with bureaucrats and academics you wouldn't be able to get on at all in the hard,

practical world where you have gained your experience and made your way. It

doesn't occur to us that you would haee made arrangements for the reforms of

education and teainiee wheel necessary in your respective industries; it doesn't

seem to occur to us that you have been buseeas the Chairman has juat mentioned,

about training within your own specialities. Ana so we pass legislation, we,set

up boards, we impose levies and we multiply the paper and the bureaucracy. We

don't seem to think that you have the intelligence to identify the facts which

are important to you in your business and to set about acquiring them. Your

Association has, and here again the Chairman has referred to this, has devoted

effort on behalf of its members to securing and aasembling that information which

you know is relevant and which you think it worthwhile paying to get. But we,

knowing nothing af all this, have set to work to establish censuses of production

and to send out questionnaires which add to the labour of industry and to its costs

whilevery often contributing little, if enything, to its illumination. And then look

at what we do with tilt!economy - At some times we heat it up so that air conditioning

is urgently called for! And then again quite suddenly we plunge it, we plunge down the

scale of the thermometer with a speed which the most efficient refrigeration system

night envy. 'Stop - (k)1 has been part of our special contribution to the world in which

you have to live. And so we come around and approach you in fatherly fashion and

exhort you to do those thinge which ought to be done in the nutionel interest. ae

appeal to your patriotism to get the nation out of the difficulties into which the

politicians have brought it • and we offer the cold comfort cf pe1it1eF1 commendation

to those who do, in response to our invitation, thing') which they woularat dream

of doing on sound commercial principles. I say ull this, while it renders it

inrinitely gratifying to a politician that he should still find himself kindly and

even honourably treated by your industry, adds up to a veey substantial paradox;

the paradox expressed in the simple question 'Why do you put up with it?'

• 2 •

Now I think that those who are invited to an occasion such as this as guests, whilethey're duty bound to refrain from telling their hosts their business ought to seeif there is anything from their own profession which might shed light upon questionsthat may be puzzling their hosts. So I should like to offer to you the explanationof this paradox - of this strenge fact that despite the goiegs-on of the politiciansyou still seem to be linked together with them in an almost aiemese twin relationship.Why, I notice that amongsithe objeots of your Association, admittedly subject toconfirmation at ennual General Meeting, March 1968 but no doubt the Chairman willtell me if you failed to confirm object number 3, object number 3 is to providethe government eith facilities for conferring with thomengaged in the industryand you know what that means. Why is it, why is it then that you can't keep awayfrom usl...that you are like moths around the political flame. Let me offer youmy explanation.

Prom the earliest times of our human species aen has felt the necessityfor methods of escaping, if only for a short time, from the harsh realities of thereal world as it was actually created. Some of these mcIthods are of a physicalcharacter. Many of them are amongst the most pleasant of our minor vices. Othersare psychological appliances. But there is a whcle raeae of these methods whidhmankind has adopted to soften the impact upon himself of the ineluctable faotsof the inhuman world and resort to politicians is one of those methods. Youuse us from time to time, and the present age is a supreme example of this, youuse us to deoeive you. You use us to help you to believe that the le:possible ispossible. To believe, for example, and this has been the aepiration of human naturefrom the very start, to believe that one can have the cake and eat it. Now we havebeen ready with our devioes for doing tnis. The politicians have devised methodsfor spending without taxing, believe it or not, and of borrowing when no-one loans.And for a time, az _with any other narcotie, the effects are pleasant, if notstimulating. But there is always, with this narcotic, as with others, a kick backor a hangover and in that particular instance the hengover is keown as inflation.Another deep yearning of humanity in for stability. Lan liven in a eorld of constantand unforseeable change. And to all living organisms, however successful they maybe ia adapting themselves to change, the necessity of doing so is in itself demandingand often highly unpleasant. So we all resort to means of believing that there can,in this changing world, nevertheless be contrived - stability; that et .1:/rate

the thinge which affect US can,by some magical process, be held absolutely stationaryso as to relieve us of the impact and the consequences of alteration. And for thisyou apply to the politicians. And the politicians have been ready to oblige ty,ypresenting a megical procese, by telling a fairytale designed to evoke a world inwhich, unlike the real world, there is stability of those thinge that, if fact, areconstantly changing. how we have just seen the payoff, the hangover from teis narcotic

- 3 -

in the last five days. The greatest nations upon earth have made it an act - had

made it an act - of faith that the relative supply and demand for gold and for their

national currencies was exempt from the general law of change and had henceforward

become one of the unalterable facts of the universe. The American people regarded

it as part of their national honour to assert that the price of gold In 1934 must be

the price of gold in 1968 and forever. But, at last, reality broke in. Chaney had

to be acknowledged but not until the attempt to pretend the chanee was not taking

place had cost the American nation and other nations very dear indeed over a series

of years and had imposed quite unnecessary limitations and hardships upon their

industry, their commerce and their citizens. But hardly is one pretence abandoned than

you expect your politicians to present you with another. And in the vere moment in

which at last that pretence was given up, the nations proceeded to assert with

undiminished vigour the equally absurd proposition that the relative supply and

demand for the principle paper currencies of the world was destined to remain

unaltered and unalterable. And no-one can predict the hardships to which you end

others are destined to be subjected before we are brought to admit thatchange,

inevitable Change, applies to this human relationship as it applies to all others.

And that the effort to pretend chaege away from the real world, only recoils at the

end of long periods of growing discomfort and inconvenience upon those who attempt

it. Sometimes we resort to an entirely unreal world to some new invention to achieve

this purpose and in that class falls the now international currency which men to-day

are imagining. They are doing so because it enables them to go on believing that if

they can invent something n•w then they can endow it with those characteristics

of changelessness which they have found to be imposeible in the old things that they

know already. Now as I was saying we are living throw;h a veey bad period for the

narcotic use of politics. It is the addiction, the drug eddiction of our time,

the almost universal addiction to implorethe politician to wishaway the real world;

and we are suffering correspondingly. You in industry suffer correspondingly. And

I am, therefore, here toeday to give you sound advice - to get yourselves cured of

this addiction; and to offer you, to suggest to you a useful and simple anti-narcotic

which, if taken and if persisted in over a course of time, will liberate you from

your addiction to the politician and will render you independent of his fairytales

and his magical practices. For mankind has devised a method, not of preventing

change but of coping with change. It has devised a method very germane to the life

of industry and commerce, of expressing all the changes that aan happenin a wey that

makes it possible to cope with them and to hendle them. And this device, this method,

is known as price. For the function of all price is to tell those whom it concerns

about the changes which are taking place. As long as we let price do it's work in the

- 4

world then Change, though it will continue, though it will not be deprived of it's

unexpected and unpleasant characteristicsowill have no power permanently to harm us.

Observe, that always the politician, when you employ him to deceive you, starts

by falsifying price. He rigs the international price of money; he rigs thedomesticprice of money; he manages the price of articles; he conrols the price of labour.

This is itself the sign and the proof that where price works, delusion cannot be;

that the restoration of price is always the end of delusion. And so, I offer you

to-day the simple remedy for your addiction to the politician, and for all that you

suffer at his hands. Hold fast to price. Let him keep his hands off prices of all

kinds. Make yourselvys the champion of price in all its forms from free exchange

rates,to profits, interest rates and the rest. Grapple price to your bosoms and you

will be free from the evils which otherwise will come from asking the politicians

to erect for you a wish fulfilment world in which those things would be made possible

which cannot be possible to man. here is an industry which, I believe, is destined

to climb into spheres and to spread into areas as yet barely suspected. Its guide

and its stimulus in doing that, its evidence of those changes in the world which will

create the demand and the opportunity for its work lies simply in price. So. If you

and we, industry and politicians, are to live together in a fruitful co-operation

and not in this nightmare embrace which has held us together in recent years let

it be the businese of both of us in our respective spheres to respect the truth,

and particulaxly, to respect the truth as it is expressed by price. If we do that

then we can have true friendship together. You can do your work the work which

you know how to do and I can be set free from pandering to the delusions of the public

to do the real work of government and such real work there still is to be done.

F4411•

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e cceptarC. I iht suni-:-.arize it ir7. se7t ehce

Cr ra' s stat ement to C or..zress t mor!ths

"the threet of ocreio1e dction tE o t

ti 7e (-1,- te-^rept".

It is im7ossioLe to e...,1a.7Ee-2:] the.

is ch...-77.ge for ourselv,,- both .3s in islana

nation The„.

have been the first beriod for three ed ea:rs

ariti e f:-..)res of 1-; country hale rot

it as t'eir prime obje t

prevent 9r enem:2 from bloc:K,73d1:7 these islands or

airi .Jis.cess to them sea. 2 hi s s ha

bec.,ause e rsuade4i iurselves 1s7,-Lg '"Jar

at se., sc ion 3;3 e he to 'Ho 3e-v.e ,1-2?:. times

in 0:42 history, ':33 lo-Le:

2he .rer, 3jhllt. scout ed: 01-_1,k, secureI

2 (.7., 1-

'rjyeg of no oar or ucle--,r aicide. 2. is

7 tien - ;ofoorse, tO do

ith u`' e erfeo1 T3tional t'eor;" -0c1:3.ar

dete--r,,rt qucie 3r "?.21' or 5iac:=11].. — aa;.1 a•Li 3

. diffic

0,$ T17-`..4-.3 0-<1 170, I.n4

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i:TTP zuno::(71 pa uo pus cm u 9o,

• 4

and the .;,arsaw Pact, an(.7'. that, thouEh the bal.nce

7“)1l5 first •7,e, -?.,y then the other 2fter

mobilisation, it Dd'd n9t berrran:ently incline

TTr'-onderis nopreciation

implies the possibilit- not Orl'i of a Y5 -7:t sea.

but of o2olongecl. covati nal onerations the

Continent.oo-1

.The political b,,.ck_round of

the :arsa,N l'act forces has to oe te.c.ren into as-

coun-6. The joviet divistons i ast Crer:Lany are

there 2t least :7Is much .ith Est J-eri3nj itself

ir iea o confront O. 2he forces of the

Iron Curtain countries cannot simn.:f ho to

those of ti.e ..;oviet Urion. T.here are circumstrce

increetrElyisonsle, hen it

..ould be r'Irer tbe truth to subtr2ct them. fhere

is a ,T,)roverb aoout the r.ar.ho held a.a:Dlf b the

'21ae tSa1S ecLj_vA.ant of th,=.t proverb must

oftcr occur%c-.) i7 &din.

deep frbst acn nas can5raeaster

Europe f or t:.ent,/ years rot ed,Ire for ev-er.

Joon_er or later t'.7e ice fioec be-irl "to mr:;-ve

• 5

and tiTe pLeces of the European kaleidoscope to

reassemble themsaves ir re,:v n:atterns.

All this is immediately relevant to I.iritish

defence policy; for it meen2 that, if ErIttain is

to have an influence in theurocean balance of

cover, eo vital to her safety und even he2 exist-

efl C e e :Lust have an arr4 that can be da.3cribe.

in talls often receated b.; the Ocoosition, Thich-

make no apolog,,, for reee,stl r a "

"an army in being, eTual ir arr,-ao:ent, trairinr:and philodophy to iLny other in Europe, and of suckdimen sions and structure, and sopoortei ..11c‘7 reserves, as to be able, end to be seen to be ob:L'

plo," 73n importaInt C ti;n pert in con-tinental ',*-:,9rfsre, ever - part

n-la'ke it th cerc ant fulcrui- of the in -dis7_,

All tirnuh these ..::reat c'a touct

directly the ,7;7 e :octore of ritair' defen.ce

:.ostare, the ..",4,,,,c-eary of tte for Jefence 1-pzi

blind and de-af to repl

lsuna ard djdb1i:, or the front

bonen. .2he fact fo,J,7: of tis oar succe2sive

defence policie hale collac.braL.-isdocio OH

0

o3sert3 the rtightnes3 of hi fifth. --E,uit

tiie C-ov ef-Ine t Q. re e _re r o r e 1/;_n_ e 2 he r t

"ITATC eJ, ±L o on.

It ii t•••-•_ t j ift

`.2rrI tit 1 ,•?,r

-•J, it left

ever farther behl_r:d

shfUt t-

cocoon. cf :Je1lciD7

'r"

t • /

Extract from sbeecki by the tt. Eon. J. EnochPov:ell, Y.P., at -- -_ ,

41.. e ' c 1(...;,-v4--L L-Ct-,c2 ez,t.I. rrel-Aee ‘1444.-t- z. ALI-1) AU_ Aaw oe.m../ X.-d, 4117,

/ner..-La,There is probably no more difficult area for

legislation than that 7whdch opens before parliament

in approaching the reform of trade union la. There

a branch of the lav; is directed toserds specifically

defined purboses, it con oe e%amined in the light of

its efficiency for achieving thoge purposes,

.hen the nurposes themselves chan:2e or become

obsolete, the leislation can be altered or repealed

accordingly. Trade union lo,J is not of this sort.

The trade union is at bottom a social p,e. amenon,

and its prevalence in so many different societies

and economies bears ,A.tness to the depth cf its

social roots.

it is a social phenomenon 7Nhich inevitably

enters into relationship 7iith the general law. In

our ton country this relationship has pased through

several phases: there ')e-F. the chase in ':;hich the

trade union 7Jas combatible with the gen:J.ralla,;

this wos succeedea by ..,nother in it ceased

-2-

be compatible; finally, in the last hundred years

we have lived throup:h a period when the trade union

has been 2iven a place of its own ,:)ithin th.e genera

law.

In this last phase it could be said that the

trade union was a creation of law, and certainly the

trade union as -ive kno'. ,J it exists by vtrtue of

certain statutes which confer privileges and

immunities, without which it would be something

very different. There is here 3 double meaning of

the same term, which, 93 usual with double meanings,

can be the cause of mucti misunderstanding and

animosity. In one breath when :,;e say 'trade union'

we refer to somethiruz that exists 3nd functions by

reason of a specific set of statutes; in ti-e next

breath, by 'trade union' we refer t t17e basic

social phenomenon, the association of persons

engaged in the sal e occupation or emoloyment. Hence

tlre freuently meaninless arguments whether such

and such a nerson or policy or oarty is anti trade

union".

7

Yet in spite of 4-ts legal clothin the tradeunion remains obstinately social by nature.such it is not surprising that its practice andbehaviour is not deducible ir advance from its

legal garments but reflects the assumptions and

habits and outlook of its own 4t-Tillet society. Thiexplains a paradox vvhich has often been oointed out.Comparison of the ITN of trade unions in thiscountry on the one hand and in, say, ;estern (;ermanyor the United 3tates on the other, '.Jould lead theobserver --ho simply looked t the respective i3W5

to conclude th.=:t the trade union aias more restrict-ionist and co servative in mentality tn Clermany orthe 'UnitedJtates than in 3ritain. fet the oayosit

is the case. The member of ,.-erman.or Americantrade unionsl-hich 3re legally far more institutionalised a-d entrenched, can barely be Orouht to

comprehend the ork-snreading, profit-hating,

almost Luddite attitude of tlieirLiritish namesakes.In practice, the trade union reflects the society;

not the legislAion. It is a f-ct the le,=_L7islator

does .v.)e 1 to .ras,J;for t-le extent to ,',hich

(AAAA44 4-14/1;

(4,-..)

illleislation can change and mould society is strictly"eti.t) -

limited. 21-41- /1,11-4914"-- • IA- tl kt•-41-4.--kvi-

eecea4,t,t-,4" OY PIA-CC74-“ikz-a 4-14,t)ea.ft o q C6/2

If more evidence -,4ere needed of the profoundly

social character of trade unionism it is afforded

by the persistence of characteristic traits

independent of marked cang.es in lao and environ-

ment. Those ';:ho point out the characteristics of

the i-3riti h trade unions yThich I have just mentioned

are apt to assume th-opi te—be of recent occurrence,

untypical of the 'bad' or 'good' old days, ho,:4ever

one looks at it. '2his is only the rev,rsed tele-

scope throuh vqhich most people, for their con-

verierdi or their comfort, vieo t1-.e unprotestng

past. In fact, the ssme contrast, do-;Jn to t1-.e

actu-1 vords, bet7,=Ieen the attitude of tie L>ritish

and the -kmericen trade unions -ere a commonplace a

century or a century ,Jin:d a half : the strenth

of the IJritish trade union and its resistnce to

change 7Jas a by-word oefore the rAddle of the nine-

teenth century, before .any of the suose7oent trade

n leAslation ,'aS thought of.

-5-

• In the fundarrental.V social n--ture of trade

unionism lies the explanation of the central

problem ;:thich besets all trade union le,is1:-ation:

the difficulty of identifying an economic object

hich can be 7:]...ade tena`nle, con .::,.-stent

asioectahle. 'fhe difficulty is accounted f or,

,-4;,u-gia----n&t. • rernovel, if the underly ing sy chologt-

rrotivetion of trade unionism is not itself economic' - • '

since the environment of the tr9de union 1.2

economic and the I •inguage in 7;hich its dialogue is

conducted is economic , it ';,,,as natural .1nd indeed

inevitable th-at the mythology, so to sneak, of trad!

unionism should consist of v:ht a:yoear to be

economic propositions. .:.very social organism needs

a myth to qccount for its existence nd its

behaviour. It is not surprising if economists and

Lioy al Oommissions from 1.86c on:a rds - perha ps the

one due to report this ye':un •;111 be no exception -

h3ve found theLselves nonplussed by the economic

myths of trade unionism.

ith the app.arently si

ror ex-mole, if Je st-rt

pro po aition tuat oh e

-6-

111function of 3 trade union is to secure for its

members higher remuneration th:an th ;';ould other-

-.Nise receive, e im.medistely find, ourselves lost in

a jungle of difficulties. fe not only nave to

axcount for the fact that no dventage in t Matter

of remuneration can be shown actually to accrue to

those in unionised as compared ith non-unionised

emblo;iment s. have to explain Itny the buyers of

labour should be oermitted to combine to counter-

balance the combination of t'le sellers.e b e to

explain ;:hy, if hi.,:her price of labour th.3.n :Jould

otherise obtain is ia the buolic interest, this

ought not to be secured by the oper-tions of the

p.:eneral law or of the governirent, ind also ho. it is

to be kno'n b„ ho. rnuch the price of lsoolr. ouht

- irtificially to be r.u9ed. have also t-; attempt

to justify the ftct t -t if the ,rice of labour is

raised .3bove that Ahich: ''cle'iirs the market", tie

result, as the Gummi -,;sion of 1889 already pointed

out, is to reduce dem_-,nd, in other ,ords to cause

uneruployment.

-7—

2his is only a small snecimen of the

difficulties in vihich 7Ne become involved if ,Ne are

tempted by popular mytholoEy to Treat combination 9S

an economic instrument and not rather aS a social

fact, 3S a phenomenon of society rhich haq to be

kept in harmony 'td_th sener ,3l opinion and the

oresumptions of the p:enc.ral 21e business of

the reform cf tr3de union laa is brecisely to restor

th9t tca ony .

•Extract from speech by the i-tt. Hon. T. _:;noch

at the •nnual lAnner of the lanchester ',TuniorChamber of Commerce, at the -:,.anchester Club,

Yanchester 7 o.m. Frida- 1st 1,.arc 188.

It is my experience not infrecuently to have

the -Nord ':;.anchester' thron 9t me 9s a term of

abuse. =di over the ,.vorlfi the Y4ord 1::anchester

continues to be rat:cie44-ite -tlord. It is linked for

ever i.th an idea ,Nhich l,;93 once fashionable and is

unfashionable. 12his is the ide,a that

Individuals in different countries throughout the

globe ouht not to be prevented from exbhanging

their goods and their services viith one another if

they judge it advantaeous. lhere is morye-t-c—i-t

t4t-4r/-41.1..e-t. It is )1 -so the ideal thLat individuals in

different countries ouFht not to be prevented from

1eriin mirroin,: from ono another if they judg

it advantageous. 4- ,'2oday this 4-9-an outlandish -41$41, -t

the thoughtieas laugh, as tYou:ghtless people

alays -i:ill laugh at saTethin unfamiliar. o it

ccces that the -ord el:anchester' clr oe 1-eard 35 a

...,,,,

fi '

term of mockery and derision.On-familiar cert,3inly_ ,

/Lsuch freedom i . in this country -:e aye A.44 knoln'-,;-4,ything approaching it for ne:Jrlythixty years. -in

—f the ..orld it is -tsii-ejexception, though

there are some parts of -Ourobe -;here 4,4944 of it is

--ei:qttra,717.17to be found. America 3iso 'Aas in many

respects an exception until recently; but there the

administration in the last to 32 three years have

made rabid strides in abolishing &44"4.-7.7F.—.':-/ .

,citizens the freedom to exchange goods and services,-., ..or to lend and borr&N across the frontiers 12.04.44-e-

major ir,lastry. 2he totAl manbo,er consumed in

this -ork of crejention is stub ndous, and much of

that m-;npo',er is not of an, means unskilled. raKe

te ..)ank of zn.-2,-land and tl-e 2reasur, alone: it ,ould

be interesting to kno':) hon many man. hours per teek,O4Yp#:1/

are cbnsumed in €0.i.i.9.0i44- ,4r7,2,- anblic.7.ti-e-ns from the

humbl,est individuals to the lare_t corportions.'•h

-;ant to spend Or lend their ci money - their own

not somebody else's - abroad. ,e ?re .:3t) used LC)

In most countries the bsiness of denyin;t thei

—3—• - 1-

this, ,t .2,ives it a thought: Of

those jho do o7ive it a thou,zht, the majority probably

say: 'erie tlem right , too, for bein,7, sc un-- W

patriotic 3S to .-7,ntto do such a thin. -;.,,,a4.14, goslap

ro.;nd 31-1,] stxxX a 31L_ILIIIJIsticker on to the boot

of thei,- car'. •

o drenched are :Le -Jith economic nationalism —

and this, ironically,Hhen pl-,rases like -±,.uropeen Free

2r3de Area, North Atl5ntic Free 2rade Area 3re on

everybody's lips. For se have forgotten a -imple

but infinitely importnt fact: interrtional trade

is not trade beteen nations; it is trace tet-iJeen

individu3ls. Ho ever lon,or aril complex the steps in

the transaction, tle reality is tht n individual

in one country and an individual in another country

are exchangin.: the 7:or1c of tl-eir hands or brins

because it has seemed good to them, freely and

spontaneously so to do, eacL believin tat t'neoeby

they ::ill be beter off. in doing so, ;s in rr.king

similar exchanges mith their cn fellov, citizens,

e y

• -4-

they are assisted by a great variety of profession-

als and experts - merchants, insurers, financiers,

wholesalers, warehousemenletc. etc. - but all is

designed to serve the basic act of individual chdic

How far sway from this 'Ne aret -11.'overnments Y:3Ve

stepped in 3nd appropriated vThat should not belong

to them: "our exports", they say, "our imPorts",

and they institute policies to "increase exports"

or "xeduce imports". It is only because e 3re so)

..Li.a.ikd to this language that e do not laugh out loud

, hen we hear ..9.-44:T :By definition there are to-

sides to every exchan:ge snd cannot increase one

s—e without increasing J:his onl, appea0 -

to happen because governments have conspired to

deprive their citizens of freedom of choice - bi

them lend ii-44- 414reTTe'rrtoanother country or by

making them accept in exchange for their o7,)n g.00ds

or services somethng which they do rot wsnt, such

as gold or foreign money, and then loci:ing it up in/--a vault.--

Only a state here individual choice has been/-,, /, , 7.";„ 10-ite :#

r

-5-•eliminated can logically soy: "I intend to

increase

0.44-4my exports-gy imoorts;,'that iso-i haie deci

ded

e t.

exchange of oroduce ,lahour itr;- t

that of other nationa1s7 l'he state-trading

oraanisations of the communist countries do just

thatj .4749 they are discovering, in their present

exploration of the possibilities o2 economic

freedom intorniy, , that freedom of the citizen to

exchanae ilcross;the frontiers is a no.tural41.Q.44.ter-

-.7t-errt e . 41cbody Tfih-e-t-Wer If

the individuals in a country are free to choose,

-=4-e-tF14.e-r they decide to exchane more with

foreigners next year" than this year, nor if so, ho%

much, more. 3t111 less can anybody pre-/yr-1,i) /e1A-6 (02- ' I-

diot 4titeltoor ood s .,3nd services.i t'7ey nill ctooQe

to sive and to receive in excllange alli be crde un.

Unless the state is to deci:le ni t ;e shall do anr.

consume , there is no trik7ht' I evel of exports and

imports except the one th t oens.,

fr. . freedom of coice can e tsken rco people

openly and violently. It c3n also, 7:i orY1M6 frore

-0-

dangerously, be taken fram them by stealth. If I

may LiSe 9 metaphor, they may 'be chsine. to,7ether and

dragged do'An a certain road b1 force. Alternatively

the signposts on all the roads can be removed or

altered, so that ;4.4ec tl-ey cannot find their ';ay

.th.ey. submit toguidance and direction, to f;hich

indeed there then seems to ce nu alternative. :2his

is the method ,hich ,estern countri6s freedom

to exchandrefis denied. Ihe lidecost of the4%-

individual choice is artificially altered,9 t"e price of an article

,xchange rate of a c,-rrency tl'e rest tl-en

folio .7Js inaLorably.

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