The Speeches of JohnEnoch Powell

POLL 4/1/5Speeches, January-December 1969, 4

filesPOLL 4/1/5 File 1, November-

December 1969

Image C The Literary Executors of the late Rt. Hon. J. Enoch Powell & content K7 the copyright owner. 2011.

7/11/1969 The Economy/Industry ‘Balance Of Payments’ Wolverhampton and District Branch, Institute of Cost and Works Accountants Nov-Dec 1969 Page 96

12/11/1969 The Economy/Industry Cardiff Cardiff Stock Exchange Assoc. Nov-Dec 1969 Page 90

14/11/1969 The Economy/Industry Strikes YC’s Meeting, Southborough, Tonbridge Nov-Dec 1969 Page 73

21/11/1969 The Economy/Industry Nationalisation YC Rally, Leigh-on-Sea Nov-Dec 1969 Page 65

26/11/1969 The Economy/Industry Balance Of Payments Wellingborough Bye-Election Nov-Dec 1969 Page 64

28/11/1969 The Economy/Industry Germany's Balance Of Payments East Renfrewshire Cons Assoc., Glasgow Nov-Dec 1969 Page 55

29/11/1969 The Economy/Industry State Compulsion S. Ayrshire Cons. Assoc. Nov-Dec 1969 Page 47

2/12/1969 The European Union E.E.C. Southgate Cons. Women’s Luncheon Club Nov-Dec 1969 Page 36

3/12/1969 Education and Literature Violence And Lawlessness - Teachers’ Strike

Holborn and St Pancras South Cons Assoc. Nov-Dec 1969 Page 30

9/12/1969 The Press Journalistic Presentation Institute of Journalists Nov-Dec 1969 Page 20

12/12/1969 Education and Literature Higher Education Public Meeting, Keighley Nov-Dec 1969 Page 12

13/12/1969 The Economy/Industry Prices And Incomes Policy Stonecastle Cons. Assoc., Skegness Nov-Dec 1969 Page 3

Extr:.3ct from se1by the ..u. Hon. .r. :lnochi:-Oell, L-P, et t':-e Arruel 3UPPer of the..:.torecsstle Corzerv9tive 1,,ssocistion st theImoerisl Csfe, 31::.eress, Lincs,et 7.30 pm, J-,:sturdef, 13th Liecember 1969

S,Te hsve nt-.) enteed uoor te concluding

Fceres of the comedy knon es Prices erd Irces

Policj. It seems to heve s fet,31 fssciretior for

:Nvernmerts srd politicel nerties. -.2his is rotAi

t.Ye first time -e. ve seer the ...m.r1. It is the

second complete ohosJin. Trlet I err, concerned

sbout is tt vJe do not hsve to see the 1-:::H)e fiLe

7'ourd Jet s, third time. It Killed the previous

Conservstive '.".]-overnent. Ithe., kiled tl:=

preentbour ::iovernmert. i''02 'eler'..= Lkd let

us resol d 1:1-- t 1--; rext Conseristdve

overm,rt hes rothin:7 ,-Jo do it.!-: it; for it is

as cleeJly t- .2:,ove2rs:ents -es the nenrIeFz of the

,--e tree ere to cettle, srd just :es irresistibli

sttrsctive. ,-,: r. Uri,/ bODO it tO put ,,:,p

stout fence ,e,rourd it consistims, of so much

ridicule .r-d refuttior tiet sil future

CYsrcellor,z of the i.xc'ceuer srd .-rime —iristers

l'.1.1.1 be- ::erned off.

Let rne fnind Jou of the fnel sto7v.

There es ,3 spot of bother it the bdlence of

nyients in the suIrrner of 1931. 7:e said: 'Let'

ve incorres 7Do1icy; but 35 '.';e a O no t

kno het t.,Let is, let' s h?)ve oey free-ze ir

3o 7...re 1)-1(.1 bay freeze - not by le-r,) but by belly-

:.eching - -drd r-rird you, there' s no difficulty ir

Ic.ro 7...;h9t )3 bey freeze i s, beceuse nouzht e

nought. The Orly troubl e it tht it c='t 1.zt .er%)

1on4; but et :s to fbliot- TToboy but

t-Let did rot .r.evert us broducin,-,-; 3 'Mite Pbber

cslled "Irccfr es '2olic;y: the ilext 3ten it being

gerer?)1 rule en in ry to put out 3

hite beber end cell it "The 7ext 3teb" -

keebs 0t be.y for .9 fe,;)-).)e,e,',-;:s. The idesit

heve , 'norm' of 27t, beceuse

if the netiori-il ircre-H);edty :noderte

L, -rd eL incorer irc 0 ; b„ then, b s

your uncle, there ,-;ould be no infis `Lion; rint':

1:1r3 ,ou , tu se --;oras 311 it 061:2_,..3: "7.L: rter

becuse it could rot •)e denied uI t sur).e

- 3 -

would a,nd shoui,d increase by more, much more, only

that correspordir4y others should i•crease by less,

rnuch less, or rot et ill. ler,/ .00d so fer; but

then the -fuestior arose: -;,;hlich, and do ye

kno, and ho?J do re‘ make them? That irdeed vlals the

incomes Tpolicy 'Jhlich, in the bhrae of the

were 'sec, rching". -7e ,ere still "serchin7' viher

Selyr Lloyd decs,rte'l and ,irrived;

but then ae hf -1 the srl'mdid idea of cettinsome—

Cod, else to r,'/Ork Lo do the ',,,e3rchina:' for u--7,

that --Nas the National incomes Com2iasior, thet

The norm mehile =:ot itself increa,=ed 7-,d then

foro_ter olterether, an(-°,

as diliently es -ever whEn x aent out of

office in October 1984, once aoir with ;11obirs

deficit on the brce of r"..yments.

Th=t shoir,7 of the film la:sted just over

three yere, from July 1961. to Octuber 1964, it

put to thirteen diorious yers of Toy

Halin seen it throu5rt nd come into office '33 the

benefici,aries you .uiM ‘r.L:ve thouh, the -Lbour

h7 't 'HiOide=1

S.

- 4 -

concentrF,ted on c ea! follie tic! c7,

fot bit of it. Tey nlured in Hth both frret

just es if nothin 1-1:3d hp:opened. "-;:.=.:orbre on

strted off -,tith t're Bec1-3rTition of Intent, '::here

:.;elyr Lloyd hP:d :lore tree 377.d 9 1-'31 f ers

before, follo.:.!ed it up 1t r. version of

the Ya.,tior3l Incomes Comr_ission, clled the Prices

snd Incomes iord - the Only inrovItion

include prices this time 3s ell 2.s incomes, on

th bsi tht if ore c3r.'t disover Tin incomes

Policy it illbe no h32de2 tO disco ver 9 prices

165 th Ttion1Pim hich

to hJ,,ve boosted the increPse in ti-e r.tion91

income to re .721y 4 er cent ye both c 3me d

':!ent; but P:her the 15 election d been on, the

overnm.ent p:ere es f3r :3s ever from discoverin;f

crices 9nd incoes policy, , thou::;h, of course, they

too •r1.9d Ihite feper ll bout it ,3nc7 3 "norm".

Hoever, there continued to be ho-Alin2 deficit on

tho bJ13nce of o,rrto rd omethir h:7?.d to be

done. Jo emid scenes -:%hich tore the t 2171.-iert7.,ry

- 5 -

Le Cour Party to oieces end from hick it h3s never

recovered end berhabs in its own old. form never

'All, the D)vernment forced throu- -:jnfr r-,ct of

Perliamert, a Prices 3nd Incomes Act, to ..-!hich the

hite.2sper itself :.33 solemnly aboerded es 3

schedule, like the ArF,licTn brsyer book lias a

schedule to Llizabeth It s ct of'brniformity. The

reasonin,7 -,:es evidently thst if ‘moiR#ii but it into '3.r,

-act of barli.:iment `,"Qe rust understand ..,h3t it ine3r s

CrI aniv,,ey it will then be :3ornebod;i's buz,iness to

m3ke i ork. I for s5t, by the to mention the

new "norm". The ne,J Thom 3es nil.

from th3t day to this tlere has nomin3ily

been control by 1.3w over es, prices 3r1 dividerds

- son ethir unkror in this courtry in time of

peece.for centuries. In reality it h en beer

control by bluff 3rd scores of arices

ard heve beer referred to te rices 3.rd

Incomes 3u3rd hich bontific3tefLon tuS. in es

reborts; industries 3rmi. firms h ye reEoti ated ith

the .:je.,-,3rtment of rntioyment 3rd Productivity; -3nd

,EThiernmert hes b:-‘er ;hirJ rty

• - 6 -

oacround t ll neotiJ2,tions beten emblo e2s

3nd emblo;:ees - ith results fa2 inalustrial

relations .jlich an. severl occasions h.:,Lve

rs.diF:ast4rous.:',3crcely ever Ikx have tho leal

20-:e2s hich barliament conferred been used. Liut

here is the supreme irony of it all. Prices h*ve

1.i.ster, not sloer, than before and

that has accelerted tuxixg S3 the 'ears hve bpssed.

lhe effect of the -ihole oberati.or upon .:hc..t it .:pq

suPoosed to control -:77J: r=ely, inflation,

has been ex9ctly nil.

ab,n2opch of ere -227:1election

the decks are bind cleared of the rJrec:a:..rejrd bll

that is left of the Act of 1966 il1 be a ocer to

delaf increases for tree months, 30 thi=;f3 the

.1.overr.17:ent can s,ay to the unions ir te eLer:

"Mold hard for just ,3 little, comrdes, until e

zet the eiection tu ,1.7et the election out of the

-.:ay; then -.pa cn 11 thir

and orices Policy L,;oes out "rot -ith a but ±,

-sver findir cut :,h3t it

- 7 -

-01.9 after •11..744fmZe

I c,ust sdlrit tet, like tirzaz..s Tati's

comedies, I found the film much furrier te second

time round. One ,,,Jes or the lock-out for the firer

Points, snd kne, hen to ,:.,et ready to lauh. 3ut

I trust thst le sre 1esvin7 the cirems ::ith the firtn

resolution never, never to hsve it over sain. Let

me briefly recspitulste -Ahy.

First, i seneral d.emand is increasing fssteri

then supply, no coer or. es:2thcsr. crev-ent prices

(includins±; the bricesof lsbour) from risin. - st

least, ir ary economy Ahere prices have s f.:-,eanin:z:

3rd function st sil. Tfhe principal cause of such

ar incresse ir g.enersl demand, 7.'"'dthe only cause

Ahich is not self-correcting,, is ..:cve=ment

finrc jd of excessive gvernfaert exsenditure.

Therefore, '3 prices srd incomes policy is either

superfluous Or ineffectiie: it is superfluous if

the government is rut forcing up totsl de-ind by its

oAn actions; It is doomed to pe ireffectlie if the

overnment persists in doing just that. In practice

the only result of a )rices and incses policy is to

••- 8 -

en,ole the p:overnment to divert 9ttention 9nd

from tl7e conse-ioences of itc,

I' ti e sec.ori. pl9ce, 3 7)rices incomes

policy is rot (..:!.pable of bein so defined tl-i3t it

c,-3n be put into effect. .2here i. 'o mefir,-, of

k:no,,Jirf- in the cYise of v::ry rticuLir price

increose]etberlend if so to ,:t :-:::Ktent, it

reflects inflation ,:zererl incre-]eP in

prices) and to -,'hst extent it reflects a ched

reltior of su-)oly 9nd leinard for thet >:;ood o r

Nor can '-Tyore predict ho7: prices .:ould

ch9rge in rel-,itior. to one :'=.rother in tl.e :;:isence of

inflotion. C:,orse uently non c orescrib -., or

I-ay do:.in rules for nrecribir.2, il t'f-e

price ch.-]n,L:es 3 hole ill confo'Ir

ziter 'norm", vihether th.it no2,h3per

cent or 2-:t .:,er curt 0-2 4 per cent. nrices d

inc()mes policy involves kro':in:

1hirdly volunt:ry 7.Y2ices r]rd incol:es

is Tts ble s 7olEori one

9 bsurd. .2h e 1: no rto

voluntorily th'..in under duress, the c'.--,nceof

.AbIL - 9 -' II,

311 the attempts to do so oroducinz. e Predetermined

result is even more remote, it they are volurt3ry

J.and inde n pendent the i they are enforced. '2.here

is ro room in loic, es L,here is no basis or

justification in exeriencelfor o rices ?nd

incomes Policy. Let us, at any rate in te

Gorservgtive Partylresolve to lee this Pi.kce of

h4political esC92iSM betirAin te 160's '-7r,a fce

the re decede and e ne7i period of administration

-,ith oper snd hole—heortef: acceptance by 2.0vernmert

of IpreF,Ton.Fibilit," for te conse uences of

Eovernment actions.

• MPExtract from speech by the Rt ion.J.Enoch Powell,at a public meet ing in the T rance

at 7.30 p.m., Friday,12 h December,1969.

We now know that in twelve years' time the num-

ber of young people leaving school with the pre-

sent qualifications for entry into higher educa-

tion will be about double what it is to-day. Stag-

gering though that fact is, there is nothing in it

for regret; on the contrary, it is potentially a

cause for sat isfact ion and hope. Nevertheless,

the prospect has to be faced now, not only because

the increase will be continuous during the inter-

vening period but because, if a major change in

our approach to the provision of higher education

is to be made, the sooner that change is debated

and initiated, the better.

Hitherto it has been assumed during the last

twenty years that virtually all extension of

higher education, university and other, must come

about on government init iat ive and be impleme nted

by means of the yield of taxation. The universit

and other institutions of higher educat ion have

2

not grown or expanded: they have been created, ot

they have been expanded - passive voice. The form

which the institutions would take31 their location,

and to a large extent the nature and content of

the education itself, was decided by authority -

basically by the same authority by which the size,

location and composition of the armed forces is

dec ided.

looking back over the period, we can see that

this policy rested on two unexpressed assumptions.

One was that the right form and nature and volume

of higher education could be predicted and foreseen,

bpd (what is more) predicted and foreseen by

government. The other assumption was that this

higher education would not get itself provided

except under compulsion. Many of us would now be

disposed to question both those assumptions, and

even if we must accept what has been based upon

them so far, to question whether they should be

accepted for the fut ire. Hitherto, they have been

3

tegarded as too obvious even to need stating.

In reality they are much more like paradoxes than

axioms.

There is, for example, no reason to suppose

that if the rumbers of school-leavers with two

A-levels increase twofold, or fourfold, or tenfold,4pbeleer

therefore the number going on to loot4imoes4'‘i, edti-

cation ought ideally to increase in the same propor

tion. There simply is no logic in such a rule-of-t

thumb. The most desirable consequence might be a

lesser or a greater increase: we ew4ee4, do not know

Likewise there is no reason to assume that the pro-

portion of students in universities to students in

other forms of education ought to remain the same

while total numbers double or quadruple. It might

be so, or it might not; again, we simply do not

know.

It is not even certain that the proportion of

school-leavers go inF on to any form of higher edu-

cation should remain constant: perhaps it ought,

but it is only guessing to assume so.

Then look at the second ass'Impt ion - that it al

has to happen by compulsion or it will rpt happen

at all. Nothing could be less probable. Here is on

of the sumpreme good things of life, both in an

economic and a non-economic sense. Here is a popu-

lation increasing in well-being and in cultivated

aptitude for higher education. Are we serlously

invited to believe that they will sit passive and

will not produce both a demand for higher educatio

and the means of satisfying it? There are certainly

some who woi 1 d say so; but they are the same people

who would also say that the other activities of the

citizens, their other investments of effort and

leisure and surplus, bust be _compulsorily directed/447 Act

for them by the state, if 14-443. to be directed

aright, or at all.

I suggest we must therefore refuse, here and no

to make the apparently obvious and natural, but in

reality irrational and dangerous deduction which

we are being invited by many voices to make. It is

to deduce that because the number of qualified

school-leavers will double over the next twelve

5

years, therefore the public provision for higher

education - not provision, hit public provision -

must also double.

Let us conduct here to-night a little experiment

and watch what happens under(as it were) laboratory

conditions: it may be helpful in envisaging the

range of possibilities which exist in the real worpublic

Suppose that the volume of/Provision for higher

educat ion remains constant while the number of

qualified school-leavers increases. What will then

happen? We know what will happen. The competit ion

for the public prov ision will increase, and conse-

quently the standards which have to be demanded w

rise. Bat the consequences will not stop at that

point, not by any means; for there will be an un-

datisfied demand, and that unsatisfied demand will

also increase. Like all demands not satisfied from

one source, it will elicit other means of getting

itself met.

Where the ability and desire to pay or to borrow

exist, it will itself bid for additional resources,

and pull them over from elsewhere into the pro-

vision of higher education. Bit there is more to

than that. Here is valuable and Erowing potential-

inve stment opport lnity. The future prospect ive

users of that potential, on behalf of the ultimate

consumers, the community as a whole, will bid for

that potential as a capital investment. It happens

on a small scale at the moment; but there is no

natural limit to the scale on which it coulrl hap-

pen.

So we would see growi.ng up by the side of the

public provision - which of course eal life

would not be by any means static, as we have as-

sumed for the purpose of simplifying our experi-

ment - a whole new non-public (call it better,

non-compulsory) provision of higher education.

The two would certainly not remain separate and

watertight, but would interpenetrate one another.

We can envisage whole areas of higher education

tending to move across into the voluntary sectorstate

from the retlake sector,while conversely the state

7

sector, as often happens elsewhere, would learn

and acquire from the voluntary sector. Men, methods

and even institutions woad move both ways; but the

total result would be a system of higher education

which in form, volume and content reflected the

della nds and needs of the community in a way impos-

sible if public provision were automatically to be

multiplied by rule-of-thumb. What is equally im-share

portant, the area of compulsion would have been

diminished instead 02 continuously increasing, and

the a rea of spontaneity and choice would have

and me and, no less, for those among the

immigrants whose future does lie here, of thatpolicy of assisted repatriation and resettlemed4which Sir Alec Douglas-Home as Leader of our

Party adopted almost four yenrs ago. Toproclaim that policy and, when we have theopportunity, to put it into effect withgenerosity, with huvanity, set vith determina-tion and with hope, is a duty which we owe toall, white or coloured.

oo often today people are ready to tellus: "This is not possible; that is notpossible". I say: Whatever the true interestof our country calls for is always possible.We have nothinf to fear but our own doubts.

Paper vesented to the Institute of journalists by the Rt Hon.V.Enoch Powell, MP, at the House of Co -ons, Committee Rocm 109

at 6.30 p.m., Tuesday99th December91969.

In speaking to the Guild of Newspaper Editors at Scarborough40-4p.41-19-46in April 19689 Iord Hill of Luton, the Chairman of the 13.6.C.F

used words which are more important and significant than perhaps even

he himself realised. "In talking", he said, "abolt the B.13.C's obli-

gation to be impartial, I ought to make it clear that we are not im-

partial about everything. There are, o i st nc (my italics), tux)

very important exceptions. We are not impartial about crime, nor are

we impartial al-out race hatred.* The way in which "crime" and"race

hatred" are linked in this statement reveals more Nate the more one

studies it. "Crime" denotes domethinierfectly objective. To ascerta4_n

what is and is not crime one resorts to the law, to its definition by

s tatute and its interpretat ion and applicat ion by the courts.Whether

a person is or is not guilty of crime is established by process of law

and neither the 13B.C.nor a 77 other medium could with irnpunit - state

that A had committed crime B unless that had been established by legal

process orl at Rost, by way of making an allegation intende(7 to be

proved or disproved by process of law. Ignite obviously n-) citIzen has

the right to be impartial" about "crime": by definition we are all

necessarily, like the preache- and sin, 'agin'

With this perfect y objective thing, "crime", the Chairman of the

B.B.C. places on the same plane what he calls "race h tred", which is

perfectly subjective. "Hatred.", though a sin, is not a crime. It can,

indeed, result in crime, and it is in certa'n circumst nces a crime tobe

promote or encourage it . It cannot however/the criminal consequences of

"sacs hatred'" or criminal acts involving it which are meant here, be-

cause "crime" has already been de5lt with. so the "race hatred" about

which the B.B.C. disclaims impartiality is someth'ng not criminal and

something not objectively ascertainable. The B.B.C. has iven itself

a charter 0 partiality at its own discretion: wherever it, or its ser-

vants, or rep rters on its behalf, form the opinion that hatred due t

difference of race is Present or involved in any matter under 'llscuss

or report, they are thereby released from"the obligation to be impar-

tial". I.:ow wide this charter is, may be gauged if, fo- "hatred") we

substitute other, equally reprehensible sir= such as "greed" or

"envy", and reflect what a range of subjects -would be ,,'ithdrawn from

impartiality if' the B.B.C. were declared rpt impartial about these.

It will be observed, however, that the B.R.C. does not object in

th is way to "hatree, any more than to other non-criminal bat sinful

states of mind A good hater, provided he hates his employer or hisnot-

mother-In-law or the Tory Party.> is asrured of impartial covera e øöw

withstanding, like all other sin ers. Oly where the 11.13.C. detects

not hatred as such but h--Itred in one particular context, and arising

from one particular cause, does the R.B.C. withdraw its impartiality.

This absurd and indefensible c.ontradiction - whch is aggravated raihe

'bility of undisclosed extensions - reflects one of the phenomenathan renoved by those naughty words "for instance", implying the

poss

of our time: a preoccupation, accompanied by avowed slanting of/the

organs of communication, 1,:ith what is called "race"- a ter-, in itsel

of extremely various and un ertain meaning.

This is brought out clearly by a state-ent of Sir Fugh Greehe,whic

Lord Hill quoted with approval in the same context:"A man who speaks

in favour of racial intolerance cannot have the same ri7hts as the

man who condemns it". Since the identificatio: of "r- ial intolernnce

is purely subjective, this means no less than that a man of whose

opinionsSir Hugh di approved on any subject to which Sir Huf!,h chose tc

regard as relevant whatever Sir Hugh chose to mean trf "race" ought tc

be denied (in the B.P•C• or, for that matter, anythere else the right:

yr. ch others enjoy. For examp15, it could pc lectly well be interpret

to mean that those who suor:orted in Parliament or elsewhere theCom-

morweolth Iomigraton Bills of 1961/2 and 1968 are not t- have the

3

same rights as those who spoke against them; for many people did in

fact regard those Bills as evidence of "racial intolerance".

Given what I have called this 'phenomenon of our time', the preoccu-

pation with race" and the assertion of the right and even the duty to

mispepresent one side in any debate where "race" is thought to be in-

volved, it is not surprising that the main methods of misrepresentat tor

generally can be exemplified in classic form in thi= c-ntext; and as I

have made a hobby of collecting specimens in the last year or two, I

would like to put before you some of the favourites, both grave and ga3

from my private cabinet.

The first is an example of the "Archbishop-and-the-New-York-night-

clubs" method. You all `,-,:now the alleged news items"Archbish-T's first

question on landing in New York0Are there any night clubs here?'" It

was, of course, in reply to the questlonCWill Your Grace be visiting

a night club?". I picked up a beauty of this sort when I vent to Brist(

in July, and read next day, under a row of pictu es of myself,on the

front page of the W t Dai P s 9 tne notice, in heavy type:"Page

8:My Rivers of Blood Speech". Sure enough, there was the headline on

page 8:"My rivers of blood spcechlby Powell". Immediately under the

by-line was the introduction to the report:"Er Enoch Powell last night

explained his fa ous 'river of blood' comment". Only then did the

reader, his appetite thus whetted, antive at the hard news item itself

in the smaller print below:" 'I never di...! use the phrase "rivers of

blood" 11, he told a quest toner".

While we are on headlines, I would like to examine a much more seri

ous an', I am afraid, more typcial specimen, where false headlining

perverts an entire report and runs into flat untruth. Crap 19th July

the Daily Mail carried a double-column heading, fo-Ir inches deepOr

"Powell:they'll never be "inglish". The clear implication of such a

headline is that thel are an attributio-aivery reader is Eoirw to reac

them as a direct and literal quote, and would be justified in asFuminf

that I had said not merely that in sense but that in terms. The head-

line in itf3elf is a foul; but instead of being corrected by the text,

in this case the text aggravated the offence:"Coloured people born in

this country could never be English, Mr Enoch Powell told a Conservative

rally in Bradford yesterday". He"ire is a direct attribution of some-

thing which was not said and was not implicit in what was said. Theof

key word, of course, on which the effect Obfk4 the headline and of the

report depended, was the word"never",which imports a meaning and a

dimension wholly new and different. How gross the misrepresentation) can

perhaps be gauged from the con luding words of a speech made by me

less than six weeks earlier:"there is no limit, over the years and theor to

generat 'Ons to the changes we can undergo - yes, switel the strangers

whom we can abso:l, - and still remain, throughout it all, oursclves".

Subconsciously, perhaps, the introduction r) the word and meaning

"never" in the case I have just been examining arises from the pheno-

menon_pf "typing", that is, creating a type, identifying certa' n indi-,

viduais as belonging to it, and then assuming that they must' therefore

display the characteristics atd hold theopini-ns attribute-I in the firt

place to the type. All language is ultimately metaphor, and it might

be a) more than a pardonable exaveration to say that all journalistic

language is type. As in certain for-s of dramatic and other art, from

to the Greek tragedies, there are a limited nu'ber of

stock types which are recognised as appropriate to the genre, and the

art consists in the marver in wl-ich these a d their interactions with

one another are envisaged and poIrtrayeds the audience expect them and

the prod/leers provide them. This is no cr ,icism of an art form, and I

do not suppose that the storyteller's art, vhcch is surely part of

is" can ever dispense with them. The trouble comes when they

influe ce not merely the communication but the perceptio - of what ett-r-

-pe-rts to be reporting of words and deeds, and :r_=rticrilarly whe- the

selectiol and use of: t7pes takes place under acknowledged licence and

4 5

invitat ton not to be impart ial.

Let me take a recent report Irehia.a Parliamentary Corresnonden- of

a debate on Rhodesia, actually on 16th October last, under the head-

line:"Sir Alec swings Tory M.Ps aga'nst Smith". I have only time to

study one paragraph, though the whole report is a rich repository of

misrepresentat ion through"typ ing"

"In the present mood of the Tory party and faced with a strong rightwing revolt over Rhodesia, only Sir Alec could have so successfullydoused the brushfires that were being lit all over the Commons by thewild men of the right. fie was listened to in respectnil silence byM.ps of everAhade of opinion as he said that if' the proposed thodesicontitution were accepted "of c'urse Britain could not be a partnerto it". There was not a aurteur of dissent from either side".

Notice not merely the wildly metaphorical language("brdsh fires being

lit 1 v th Co rn n - surely mtn, but the persistent use of

"typing":"right wing revolt", "wild men of the right". Yet the par-i-

graph ends with the admission that"there was not a murmur of difSent

from either side". No wonder, seeing that every speaker, whethr or

not "right° or "wild", held and expressed that view - including,tho

there was no necessity for this to have been mentioned, the rt hon.

itamber for Wolverhamptois South West. Even Mr Noyes was uneasily aware

of a contradiction here; so he explained thatIthough "unable to quell

completely the revolt on his back benches," Sir Alec"did succeed in

wresting statements on the unacceptability of the regime's proposed

new constitution from almost every Tory speaker". This attempt to re-

concile undeniable fact with the preconceived typing imPorts a false-

hoodsit saysi and intends to be understood as saying, that subsequent

speakers in the debate were forced by Sir Alec's words to aker what

they had inte!Ided to say. Any competent parliamentary observer knows

that this does nnt, and did not, hanpen; and in any case it is his

business to be aware that the speake-s in quest ion had said the -ame

thing before inside or outsi e the House, when it was not wrested"

from them by Sir Alec.

That is not the only falsification. "Sir Alec's speech", the repoi

46

concludes,"brought immediate dividends. Mr Duman Sandys said that his

first inclinatioe had been to vote against the order. Ravine listened

to Sir Alec he woe id abstain". A stranger sitting in the Public Gal-

lery for the first time might have written that; bu the veriest tyro

in Parliamentary report toe would know that Mr Sandys was using a well-

understood formula(which even so evoked a titter from the benches)for

reconciling an intended npn-vote with a hostile speech; and anybody in

the liebby knew that (and perhaps also, why) he had never inteneed to

vote.

The net result is that the render is not only deprived of the servi4

ces of a qualified eye-witness, bet Presented with a report falsified

beyond the point of caricature in order to confdrm with precorceived

"typing". No worder the editer, in answering the expostulations of a

member of the public, explained that"when our Parliamentary Correspen-

dent writes a piece in the paper,it is not intendee to be a fectual

account of what took place". He can, as the phrase ist'say that again',

!nine ie that instance was purely generalllike the type villain of

melodrama - "the weld men of the right". It is carried a stage further

when the type is given the name of a real person, let us say - purely

for purposes of illustration - "Enoch Powell", whether without adjec-

tival terminat ion or with such inflect tons as "-ite", "-ism" , lean".

(Incidentally, why has ".esque"gone out of use? Perhaps too baronue?)

The reselt is that the characteristics of the type must be attributed

to the individeal; for is me the type actu-,lly nemed after hi ? -su-unsuspect ¶ ng

ally the tnakirig of the attribution can be left to the/reade-, against

whose assuel)tions the eponymous hero has no means of protecting hie-

self, since the explicit false ae.: ertion has not teen made. Occasio ---

ally, however, the writer himself becomes the victim of this reverse

reasoning process and betrays the falsity of the deductions.

I say and amusing instance of this recently in a report of the pro-

ceed ngs in the const'tuency of my frd.end and colleague, Mr Nigel

Fisher. Who, the public might wish-to know, ard the people who do notwish his association to readopt him as candidate? "The rebels", Mr

Cashinella told them, - and, I-7 the way, note the typological word"rebelr

again, which we trive just seen in anot' er context - "disagree ,:rith

Fisher's v Lews on race relat io as, immigrat ion, Kenyan Asians and Biafra,and demand in his place an M.P. who su-ports Mr Powellis views on these

questions". Four subjects, you sre; though it needed,Considerable in-genuity to make the first three out of one, rat'er like our friend,Bishop Spacely Trellis(another type, but not one, as far as I have no-

ticed, who features in the news columns of the Dail Te e a h), who

inserted "race"' three times over in his programme for talks-in to repla-ethe Anglican liturgy. However, as regards this trin't-, I will observe

only that on "Kenya Ssiars" what are called "Mr Powell's views"are those

not only of the vast majority of the Conservative Party but of the Houseof Commons as a whole, on the 7inimpeachalle evidence of their voice andvote on the Comnon-,,ealth Immigrants Bill 1968.

The really fascinating thing is the refer,2nce to "Bizafra.". Now,this

is a question on which I have never, so far as I know, been publicly

teported and on which there has been, so far as I know, no public refe-

rence to my opinion; but as a matter of fact my opinion on it happensto be thesame as that expressed by Mr Fisher, as any lo'Thy journalist

could have ascertained si7ly by askin7 me, since I have never made a

secret of it, either amng colleagnes or in correspondence. Thus thewriter, having "typed" the "rebels* as "supporters of Mr Encc h Powell",

proceeds to deduce from his own harkliwork that I must therefofe hold

cert ,in views and states as a fact trat I do hold them.

Another branch of "typing" is to dramatise the preconceived types

and then report the result as hard news, mnch like the British general

serving all h's ife in India in the nineteenth century, who was con-vinced that the novds of Dickens and Thackeray were descript Loos ofactual persons and used anxiously to enquire of visitors from England

8

whether they had any news of Little Nell or Colonel Newcome, in whose

welfare he was deeply interested. Here is a report, doted from

Wolverhampton on 6 Febriary this year snd published in a national

newspaper, about a number of immigrants there who have prospered

through hard work. Of the first the report says: "In winning

acceptance by all but the highly prejudiced he has made himself the

victim dtf unusual jealousy". This is a statement not of the individu

state of mind - that he sees himself as the victim of jealous, - but

of an alleged fact, namely, that others, who are "highly prejudiced,"

envy him. The irix evidence and the description of the type is the

following statement attributed to the immigrant:

"A parking warden who works around here really hates me for doingwell. You can hear his mind saying 'Jaguar plus nigger equalsprostitutes or hempe. The problem wit that warden is ignorance.He just cannot imagine that I work hard, he has been told thatniggers are lazy and he believes it".

Thus a subjective view, attributing thoughts and beliefs to a

character who has not opened his mouth, becomes, not evidence of the

state of mind of the speaker (which, of course, it is) blit evidence

of the state of mind of members ef the indigenous population (which it

is not).

We are back to that subjectively defined area in which some hold

that impartiality can and should be disclaimed by the media. Impart-

iality lies, notoriously, as much in selection as in presentation;

and the last case I want to examine is one in which selection is the

issue.

On Monday 21+ November the Wes e Th3I P s carried rd.ght

across its front page the story: "Racial Riot in t,Test: Police are

attacked, car tyres slashed". The first few paragraphs of the report

ran as follows:

'Seven policemen were beaten up vhen racial violence erupted inGloucester yesterday. Gangs of West Indians went on a rampage ofdestruction when police moved in to search a hou7e in Vauxhall Roadshortly after midnight. As the search squad filed the lightssuddenly went out. In the darkness the policemen 'Vere pummelled,kicked and beaten. The fighting spilled into the street . . . the

seven injured polidemen were taken to the City Geoeral Hospital fortreatment. Six were allowed home, but P.C. Vincent Castle wasdetained for observation overnight . . . four men will apeear Incourt in Gloucester this morning on assault charges. More troublestarted after the police had cleared Vauxhall Road. Nearly eVerycar belonging to a white person in the surrounding streets wasseverely damaged."

Later in the day the Glouce ter Citi en carried a police statement

confirming the injuries to the police and the arrest of four persons,and other reports confirming widespread damage to cars under the

heading "Seven policemen hurt in Gloucester 'battle'". while I have

not examined the whole national press for Vonday 21+ Noverrber and

Tuesday, 25 November, so far as the principal papers which I haveconsulted are concerned, these events which, whatever rnieht be theother circumstances, involved seven policemen beine taken to hospital,

did not come to the knowledge of their readers,ethough an inspectionof the ir columns of those days reveals many items recort ing inc identswhich by any standard were cf less public interest and importance.Nor is this a unique example in recent months.

It is reminiscent to me of something which a Pinch reviewer said

in commenting on the paperTback publication t Lis year of some of my

speeches and articles. I quote it in extenso lesnerm for its signific-ance as an expression of a particular frame of mind:

"Mr. Powell's collected speeches make very eood readine indeed.He brings to the problems of our day a clarity of view unadulteratedby party loyalty or tradition or any ether irrelevant factor - tothe problems of liberty in a socialist state, of the real nature ofcapitalism, of the trade unions, of defence, of Commonwealthimmigrat ion.

"On paper, it all makes sense. Yet, as we have seen, his views onimmigration have been seized on to jusiify all sorts of unjustifiableanti-immigrant activity that must distress Mr. Powell no end. So thequestion must arise, even when there are things thet have te be seid,is it always wise to say them broadcast? Truth in the wrong handscan be as dangerous a weapon as lies."

There it is: "truth in the wrong hands", and the duty ef somebody

therefore to be the judee what hands are ritrieht" and to he the guardlawho ensures into whose hands truth can come. Vh elee 1,s the

10

duty of journalism, it cannot in a free country be the duty to be that

judge and that guardian. Once this principle vas accepted, there woul

be no stopping point short of tyranny, intellectual and, no doubt,

physical also. It is implicit in the kmx assertion, which I began by

examining, that the media of communications have a right and a duty

to eschew impartiality in the reporting of lawful acts and opinions

within certain areas to be defined for this purpose by the media

themselves.

Extract from speech by the Rt. H on. J. EnochPowell, MP, at the Annual Dinner of the HolbornSt. Pancras South Conservative Association,

at the Bloomsbury Centre Hotel WC1, at 7.45 p.mWednesday, 3rd December, 1969.

We live in an age when ome of the basicpresumptions of civilised life is under incessant

attack, not only in this country but throughout

the Western world and perhaps more widely still.

I refer to the presumption in favour of oursiing

interests and purposes by lawful and peaceful meansDay and night the sap2ing and mining goes on, to

subvert respect for law and to discredit the

observance of rules and agreements voluntarily

accepted. The object of some of this activity,it

and the results of all of itshould/succeed, is

the replacementbf lawful authority by anarchy

first, and then by tyranny, which is anarchyls

heir apparent. The method everywhere is to make

violence and lawlessness respectable and to put

those who condemn and oppose them into the pillory.

• —2—

We should, in my opinion, be guilty

of foolish optimism if we imagined that the trend

in this direction has yet nearly reached its

limit and h-gh water mark. On the contrary the

tide is still perceptibly rising. From time to

time, however, as is the habit of incoming tides;

it seems to make a big and sudden advance. One

of these occurred only just now, and it is right

that it should be recognised and stigmatized for

what it is.

The teakng profession in this country haS/6

dealt a shattering blow for lawlessness and anarchy

by the course of strike action upon which they

have engaged. It is hard to imagine an actionAport-t

fraught with aitilfioPe conseuences for this country's

future by reason both of the nature 40ilig of the

action itself and of the personsby whom it is

committed.

Here we have a profession which, with the

possible exception of the priesthood, preeminently

exists to set an example to those entrusted to it.

• —3—

Schools have rules, like the world outside; and

0 those rules it is the teache?s business to

secure willing and rational obedience. Children

have duties, as they will have duties in adult

life; and the recognition and performance of

duty is an essential part of what society expects

the teacher to instill. That law is better than

force; that bargains are made to be kept; that

service undertaken must be performed — if these

are not among the lessons taught, by example as

well as precept, it is hard to think that the

rest will be profitable.

In the face of this the teaching profession

have deliberately undertaken to set an example of

lawlessness, in—faith, and indiftrence to duty,

and to bring that exa-mple home to their pupils in

the most direct, impressive and personal manner.

Every one of the teachers on strike is in breach

of his duties and obligations, no less than one of

his pupils who absents himself from class or flouts

• -4-a rule of the school. This is not a strike wherea body of employees, while fulfilling their

contract, give notice to terminate it, with theintention of not renewing it unless the employerwill enter into it on higher terms. There might be4debate about the morality of even thisprocedure being applied by the teachers' unions,after the unsuccessful completion of protracted

negotiation. But that is not what is happeninghere. Here we have the dishonorable methods ofthe bully and the tough, who break the rulesdeliberately and rely on force and numbers to get

away with it.

After: this event it will take many yearsfor the teaching profession in this country to

recover either its own self-respect or the respectof the public. They have betrayed their essentialtrust in the most specific manner, by providingthe children under their instruction with a charter

of indiscipline, signed, sealed and delivered.

"Sir", says the pupil to the master, (supposing

that antiquated mark of respect should be still

in use,) "Sir, you absented yourself from your

duties,for which you were paid and which you had

promised to perform; you deliberately interrupted

the course of instruction at this school; you did

this in order to force your employer to pay you

more than you had agreed to take; you did it in

a manner which would cause your employer and the

community maximum inconvenience and embarrasment.

For what offences against discipline can you now

reprove or punish us? I see how it is; this is

evidently the way of the world, and I thank you,

Sir, for teaching us so well that it pays to break

any rules provided there are enough to brazon/the

offence. Good afternoon Sir; and by the way,

the Sixth will not be attending school tomorrow

morning. We shall be too busy arranging a

demonstration on Friday against compulsory P.T.

and andioccupation of the Headmaster's sit study

in relays until the curriculum is altered to suit

our wishes. You will be proud to see how well

$

-6-

we have learned our lesson. It will be an excell—

ent preparation for our time at university".

I see they are saying it will all be settled

in the end for thirty bob a week or thereabouts.41,

I foresee 444 time when the teachers will wish

they could have thrown those thirty pieces away,

sooner than have made their contribution, and a

powerful one too, to the cause of anarchy.

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'

illExtract from speeCh by the Rt. Hob. J. EnochPo-;:ell, 1:.. at a Social EveninLref the Southi'lyrshire Conservative ssocitior t The 1.1-rand, (Aryan at 7 p.m. Ssturday./106q.

0r 1 ,; *,- -' L_)Lci i4ove:Lcer.

The law makes it advisaole for me to avid

referrin to any $4.-1-4-0-z.a posibility that there

might perhabs be a Parliamentillect;;on in tilscr-r

constituency the next fe't Fortunate77airli,

does not forbid me to fo-f'ecE:st thatef

there will be a deneral EJ.ect—n In Lnz-, next

seventeen muths or *,-o robbesy ,hat assaults wIll/

be made -t).iitte:i*A;t==.1-±Trre upOb the intelli:ence of

,) the electors 3f t'hio„4-1.37.ituenc7.' 7;

jhe case that the Lab9ur )ut

is in essence a si one. It

be t-ne sa‘Le in t"is ccnstituency as eloev:h,2re in

tne KondoL, but it will be ur.:ed vcith s)ecisl

emphasis in Scotland. The ct_:se is that ' ,

are not satisfied v,ith your (..:ndi_tions, v:ith your

circumstances, standaTh of life, -,:oo need

is,[verni:ient which v;ill exercise L:Icre

.-.;ou71_,.7on lies at the hert of Labuf

-2-

Is the rste of economic advance slower in Eritain

thsn elsevdaere? Then the j:.,svernment must be

ct:iven20P12S to ensure that we 'E,Trot -flaster.

Is there leso investment in 3ritin than in

comoarsble in:7.ustriel countries? Then the :i7overn-

ment must obtain mone copulooril:: by taxation

and direct it to the investment of' which it ..-,)approves. _lc, there lesF security in old ae,

less Ledical core, less education than mi:Jit be

desired? (It v,ould be hard to say no,

our C,esi:e for the,:e thin75 is virtJ11:i unlimited)

l'hen the 7overnent mu.ot tae, reatel. shLJte

o-r incoLies, so thot it ce,n be devoted to

these 2L+2::)Oses. 3o ono coo' s.Jint.tever

the oroble, vteveo the disstioct:Lon, socibl-

ism 1:1:3 en oiclsv:or for St;',./cf the ;:.:Fr is

sloEç's (Iore

snsv;er L, be

-Jut .ftrward, ._uite, irrespective f the results

of eoerience. is chedli:t vrere to

continue to teoc 1o-,o4r÷!-Lte-h 7:eoe cc,,ostnt7:::/

;

orefutedeentL_. •

hve t-zied the Lleti.ed of coDulsion Luru t'he

15st five In ev,.-ry c,::e the res'e7 te

heve tee:: ntve. / ?he :2's..te eaen:raio

Eft, e. been lov!er, , ltrer b,y, n e , thsn in the

precedin.7 oerot vciue f invest.lent in

nu -fa ctu n du et ry hs s1ut-.1p ed. e

incresce rsonel.„sevin hes teen heltect.14. • 3

3h3rt;es en insdeuscies more

.,s,sinfully felt thsil 50. Such e-ee„

'2esults of the , 4hez:

v:het el ye been predicted

Compulsion (meansAlever it is ep.).."._-ied, thet the_

fovernft.ent ib of' with IL,,)

the grsin sf humsn nature rnh IeircGt:17etenceS.

It is :redictbOle thst the best Va-- scSieved b.

peole' s 17 s snd wishes snd vioriny

in the ssLie airection.9 and O7 -LI.)rovin[;;; t ,e

aQyCt s5Cu C5iC Cui atifer ins_tesd of

t•t to in-, •.4.;

v;hich do not es1 tinit ;re

is the Selective Eni..plo-LF:--dent ?ax, of v:hich tho

oi.Deot 7;as to force f- 'force', you will notice,

is thl 3ra - j3:oo3r &?:ff)3_:1 from services intn

anufecturing,, / 21:c,:.ervese, since41/L iat, L„1,4...-u; -7 7

/V4-- eff_f;kt 4 ,

less into ,:„,,,c.,;:sic31 Lorc-over,

the object, - erverse or not, 4,c not ottDined: the44. 744 tt.“.tA, t. / -;/`-"" .4

I ratio) 3nd'the oth= -

Sothenettresusica-tense v:aste of effort

in futile ::,;n4 resist3nce to

.human n3ture a.nd_ economic forces4

Ths; o 'Icy of ccy:1)ulsiDn vd11 be coendedr:t-

frce 3nd vigour to those v:ho 7,ive

, in Scotland. The:; vii.7.1 be invitEJd be'lieve

t'nat stond to bc,nefit if riore coiT)ulsin

brou:fnt to be:3r on tneir fellow citirens.in.

other ports of the Until fiftu Liears

ao economic forces h3d combinedo i tt;Lae

ond teGlperaLent of the peoole of Scotl3nd to

t •,--;ut, ti

•pronote intense economic activity 10 tuis count',,y:

resources, ravi materiels, comunica:tions,

s17 consired toet'cler to this result.

the economic forces the cul-rents bein

to flo';-; in different chinnels onc. the r)ositi:m

relactive to other parts of ,27.re‘,:it ritin y.as

reversed: vihat had been e,dv-Liniades turned into

dravic3cs. su,ch e bPC:round the a,:))e:31

of the L-dvoca tes of csiulsion is p,r3rticuler17

speci:,us and .Tirticularly dan:erous, It is st

first f)7essant to be told tht the 2oer of F-::.svern-

uent be to te—e froT, st.lers in srder to

ive to ;vou• that ,Lon==:z: 1,7-].11 re:ised in tax-- , r,

. /atic:In 5'rder tc)-oe s:)ent b:..-.3vel'n:Lent in Scot-

land; thot e:.oloyers elseere 's111 hbVe the r

frzok4444'4.1, Ar 14114164,,,pvi4(....-04h0'42....ftiar- . 42.e, /.costs increesed in order thai ;-4 peo.,-)le v;hs ,:;nt to

strt or ex a-nf ousinesses in ot',:l orts v;ill be

forbidden to do as, on te off-ch,unse that tneu

decide to stsrt or es,a, d in Scotl instesd,

?here is one -:.:eness, but it is 3

4 r tH4, r-ese at tl-ae L,dvs,stes

• -6-

sion to benefit the inhabitants of Soa -and., There

is no more reason to suppose tht,401.10 w6uld be

successful or effective or beneficial than the

coPpulsion Ivhich was supposed to be ::.oin:„77 to benefit

the econom;,7 as a whole. There is no m-.11e reason

why the reional employment premium should work

thsn the Selective Er,:F)loyment tax: th,„ are similar

essays in futility, and t e objections to the one

are the sa-e, and as valid)ss tie ob;-jections to the

other. lhere is no more reason to supoose that th

,qovernment can sot the economic 'winners' in

Scotland than in Enfjsnd: the rrincile of the

Industrial..,:eorp'anisation Corporation and the

Industrial Expansion 2=ct, -which we condemn in

England as perverse and harmf lidoes not becoe

sound and laudable by crossini, the iots. The

idea that ,)tle c-n be made to pro, - oneself

holding other peop e back_ is as fallacious in

economics, snd oiens,:) lied to the econorLy of

Scotland, isin every , er sonere of human

Theri, is no gr-,und for thintin7 tnst

-7—

•Illsame policy and ',7overn:;lent which have shown them,-

selves unable to oroote *Oft-economic 3-rowth and

wellbeing in theination as a whole - and tbat is

a very yenerous understateu-ient - are endowed, by

some curious freak, with the ability to dr', so in

Scotland.

The policy of com:pulsion is a non-starter

for the basic reason that iirv;orl(s against, and not

with, the human and material circucstnoes. It is

simply no use expectinz thL,t the trends fJ.ndforces

which are transfin the .-)atte -fn of economic

activity here end throu;7hout the v;nrld will be

halted or turned bck u-Jon theselves 13:: force:

the nett result will onTy be fetele exenditure

of effort and th isin ,a of ezpectations doomed totL

disappointment. Ihe'inhabitnts of Scotland have

most, not least, to lose by etteizt,-„, g33-111. For

their securitu and their future it is es,)eciall-,,,

L.Iportant to '04-41v-locesketr pattern of economic,

i,v,„t4 4sctivzty cpti,ndieffJrds :oc est -7):23S-ect

beiny pr,ofitable and sustinable v,ith:)ut oo)ul-

sion. This oottorn they can only. discover and

work out if there is freedom not onl:i in Scotland

but throufnout the United Kin7dot:i for people

to ma'ke theireconomic choices 6nd decisions

unbiassed ancl unconstrined by covernment.

economj 'which de2ends on coulsion to maintain

it is the least secre. To proaice )0,31e

secrity by ,;:leens of coaoulsin is the most cruel

deceotion./,

•

,

, 1 S2eech by the Rt. Hon. J. Enoch Powell 1:,P,to u Dinner of the Last Renfrev:sinire Conser—vative .Association, at the Conservative_Clubjlas.crow 3 o.m. F'rida7 23th llovember -19bc

Ey heart Meayt for joy this week when my

wakin eyes fe7" u:.)on a headline. 1 ho,)e you will

have seen it too; for, understood ariht, it brin:z

L;ood tidings to ell of us. It v/as tlams: "'Jest

Germany to mae 500 million dollar drain on the

Internationa7 Loneta-ry Fund.' So there it was

at last, in blacl,:—and—white: Germany Eoes a—borro

in. Irld iny? Lecauze she is lacin a dellcit

on her balance of paym.ents, a deficit — did you

hear that I thou7ht baca over all the yers

durinE which the sterlin ,ua7its ol-: the GertLan

workers have been extolled in contrast to'-2 ovin;

the laudable 2ropensity of the Gernns tu 87 ahd

invest has been paraded before our eyes; th

wonderful 7ruth rate of the Germn econpmy has

teen held u2 to us as a nliracle,:.:11 that — and

then suddenly, vihsn: e-:7 face,-,.: deficit .cic go

a—birrov:in,..iu.st like those _21tin, hitnel't3

—2—

des7)ised as 7eyebouts, thriftless, unentery_oisi,,

an effete. "est ssid theort from

"whse currenc.j has lon been the

strenest curency in the -';')rid."

.ihat then has ho encdto4the str:;:n:_;et

currenc7 in the --:orld"? Have the '-:Jermans suddenly

lost their vunted notional chDracteristics of

industry end thrift? Heve tee etc ei investin,

from one wee'K—end to the next? He-, their cele—

brated overseas sdles effDrt, beced such pleni—

tude of credit, seddenl eched u2'-: You rec.:.Abei.,

how the sorcerss, 3 v,ave 1-1e12 V1, trans—

forr:ned the co:Ipnions of Lia:.:ss fre. :der, into

animels. h-)n(1 is it tht n

euelly swift -of: the

Ger-:danCane nd t-heir ecdnoLly I can t11.1 you,

because zlt for ye3I's I n=Jve Toin round ,offer—

inL; to do the ver:7 se cc,nurin

me" I renie,:cer sa:;in.: "the str..-..nest

eccnm.:7 in the WOr7f,. and T '0

reduce it in six onths to a citin snivelLn

•incdmpetence." Hov? 3y one sim2le act: by

alerinE the exchnze rate of its currency so that

instead of bein',7 valued too it was valued

too hln. usual, I WSS of understatin.;:

the c:ase when 1 saTL:ested that as lon as six

taanths v,ould be necessary. '21-le jermans have

needd less sbn siK vieeks to convert tl.,emselves

from 3 creditor nation to a debtor rition.

heartily sorry fp:: the '-ermans; theu

have been rmost ,h,nfartunate. few wes 570,

you 1:Jill recll, t y floated the detschma, so

that it vi.as free to itself ains,t othe:2

cufrencies ar:aihst o1ri in the o)en c.iar'Let.

In fact it fIctuted. at about •cet bV3 itS

prevics fixed Da,It.:his ±.11TE i

nPither the:: nal- an:.; ....;ne else

ah:,7 hL:rm thereby. t'ne jouinal t'rleof

nfederation io icitish indiustr-,7

s)ecblta25 somethih ts v,.072-27 tfo: oLLn

and meant -LI..ntio Mve.2.ment

-4-take a holiday frorll the impc)ssible taso of tryin[)

to.)reserve an obsolete eche rate'

woJld the Sercnns have oeen if they had co

continued, eotr neither a serplus nor a deficit,

and folfillin). the inuncti,en -)f Polonius 'neither- c.ir a lende he'. Tinfortintely they

had forsv,arn this paadise reained and were

oblihed to aban(5on this sothatic rezulat-ion

their balance of as,yments, eat.:;TH2ny

to the Euroloean -.1,cencLic Corimunit, v;hose economic

snd particols:ly arfd_-17.turs1 policies are reduced

to chaos by chsnr7es in e]:chahe rates betveen the

currencies of the mehber countries. Jas

sie,p1-y had to itsrency a-zain & soon bS

possible in order to 7o on playin the Co.hon

So the probleL. arose: an That

fi.:7,ure were they 7 don't 1.:nov:.

whether at that a touch of v:hich

is not ubkno..vn in the J;-7,r1.:Lsn chor:acter, dEtttlt

felt, or whether other inflL:ences

• —5—

it Ls natural anyhow that n country vihose

currency has been 2ersistentl:; underriced should

exc)ect tht it would continue to a2:;reciate in

relstion to others. ILit ail events, the:: decided

to fix the rate not at the level at which they

hod beenfloatinE, but consideratly hiL:her — almost

half as hi:m agin. before -you co,uld S3:j. la

'Jack ',;:o-einson:', they had joined the ranks of

the borroer

There are at least two lessons for us in

Brillion in thes events. One is aerhs:)s technical

thouh not uni,:Loortant. The atl-ier is of out—

stsndin irtoortonce. :he opinion is ro4dly

zainin:1 Eraund that e::,:ch..-n7e rstes 'u'Lat to be

used, like sny other 2rices, to balance suaply

snd de:aand without continual intervention b:7

authority; ,:ut still there are 1.ny .Lpeople who,

while now con7;ineed that a fixed echn*;e rate is

inherently da.haging anci.that an echane rate

fi-xed too hi7h has been st the root of. msny of

Brtain's diffdculties since the 'war, nevertheless

.,' III•

_0_hesitate to tae the plunge into freedom, sayin:

"This is a move that can only be liade f'rom

strem7th: it ',-as alri:ht for the mark, because

the mark is a 'stran. cencY". `2he more

recent stor of. the jeran ark shoulf have tauht

us that there is no such thin -:, ',,,tron7

currencLT' or a T7i:ea:,:r currnc-7'. 1he're is only

an underpriced csrrency or an overpriced currency.

A cu'ff nc-,y v:hich finds its cn level in the mdar',,,et

is stren7thened by doin so if, like sterliu.7., it

has been overpriced, and weakened by doinT: so if,

like the mark, it has been underpriced....•-it t.:-..e

point at o:hich suly and feahd for it balancefit

is neither 'veak.' nor 'str..:.n:-:; it is rt,

Which i 3 the Treat, and indeed the only, vi:tde

of z.,ny )rice. -..'here is therefore no .Lo're reason

to delay r hesitate td abandon 1..iKed rstes in

favour of e f7.o..-)tin...: rate %hen tHe initiL:l

conse.i:,sence woul.d be to flodt davv.rirds to the

ri7ht point than 7,-; elE, it 7,-:o..:.7..d be to float uowards

to the riF:ht ooint.

'. 6 —7—

This lesson, hoever, is as nothin7 in

iortonce compred '.::ith the co015.r3tion that

Brit=,in's exaeriences v:ith her ba7nce of )a-i-ients,

which have held her u.'..) to c‘7)nteLpt as tbe Isicl-ci

an of Euo)e' L-nd hd;ve been used to brLiino:1-ish the

3ritish 2eople theselves into 1- belief in their

own shortcominE:s and their need ic--r verblent

,-1,1idsnce finc] control, nave taii notin to do either

v;ith the j'ualities of her peo.ple or Tith the real

cno,racteristics of her/ economy. It isLosJ,,rd to

suose tn.st the i'oolities :if the :(7::r[f3ns scaden-17

deteriorated between Septeef and :-.-,veber; it is

ecjuolly 9bsurd t-:. s3iose that the .:J.;31t1-:s o-r

thr,'frtio,11 occont ft,r the behsviour of 3ritn's

b37ance of ppu:..lehts. t2he sh.,h nnd the h3r,:L h3sa overvilued

been th3t/oertoich3lly/ehrrenc:y h3s e.:::oosed the

3ritish for 'ears ft 3 ticie to th,: strictJres of

the outside world Linf..i :rown:: lo)s,,, .Thf sel.-1'-

confidence 3n3 foith in toeselyes. t2heoe were

as ondeserve:i 3n til ,3ttrion of the 000Tite

,J,lities t.;) t, -.,:efns -w3::: undoerved.

•They have been ::de thE leF,s'is fT)r per

ent and dams:in7 interfe-2ence tLy jovernent nith

the processes of the british econoy itself. In

the endeveu: to fit the ec,::)nomy itself into the

bed of : f3lse but fi:-,-ed interntic)nab

rate for the pound sterlinve2nents have acted

orbitra,rily :::nd unol'edictsb7.y. They have Thte2ed

hire—u: chose rnles r-id credit co—nditions, -o1,,,st

this viay and then that; thou hve :)ut si)eoll

taes on and taen the off 6sin; the;y hsve

deanded imcort de2osits, and then rothod theu.

after it 1-1,3d been pr:“nised th-:.t they ,,oi:Ild be

released; they have distrted the hoLi :r':.ot by

2efli : :Sh izd)orts anl] co'etrol7i•: investent. .1:.

‘47.1/1,1this has ipumte.i a vhale new ei::,ension hf

uncertLlint snd 2.:Le into the '2.,e1 -„Dii.-lh

is th,..e i'snt7ou o-' bhF, r]....snt -hnteod y,d_th. ?he

iusihess:::3n h!us to co2e on;'eos 1:,_th the -ejactuatio

of sudoly snd dend, and ,ith the unforeseen dh:-:nL:

es of ecoucrItio life. ..hen he is drevehted

— —it. •Icrom discharqin7 this function, fer v,hich he is

trained and for 7hiCh he exists, b. the inter—

positon of et at ever stsge, then

real deiae and losT: vihich are

aone the less •.,..7_ous beocuse, in the ni.N.Jre of

thj_ngs, is impossible to elrluate them 'ire(.,:isel'y

And so a fictitious cause cl,oduces pal;pable evil.

Yet I do not knov: if, 5fter all, the 2f.:coloi2al

da.,nage h3S not outweighed the materiel. -.or years

at a stretch Devi the peoole of this country have

been r:lade to labour under a sense of insufficiency

and failure. -J.,;.o nation, not even the stron;7est

can survive such a diet indefinitely. -;Hor toa laa

long we nave learnt discouraement frol- the

experience of 3'24f continental nei7hJeurs. It is

time we 3e:7.3n to draw frovi it the opposite less,.)ns

of self—assurence.and hope.

fixtract from speech by the Rt Hro.J.Enoch Powellat the Wellingborough bye-election,Conservative Club, Raunds,

p.m. Wednesday,26th November,1969.

When the Government come andtell you that they

have pot the balance of payments right, ask them:"Who put it wrong eine kept tit wrong through five

years in succession, a thing never known before?"When the Government come and tell you they are

gl.Vpg to end the comulsory control of wages,

(which they promised never to introduce,) ask them:

"What good has it done anyhow, as prices have Pone

on ris!ng faster than before?" When the Government

tell, y0.2 that you can nov seelthe light at the end

of the tunnel', ask tkemeWto led us down the

tunnel in the first place?" When they coma to you

with undertakings and pnomises and prot stations

for the next five years, ask thems"What happened

to the promises of 1964 and 1966?"

.0 Extract frcy,:i s.,)eech by the Rt. Hon. J. l'rinchPowell, EP, to a Youn7 Conservative Rally atSt. Clement's Hall, Leir,:h—on—Sea, Essex,

3 c.m. Friday 21st 1Toverilber iq57,•

There is no proverb less true in politics

than the Biblical sentence: 'In vain is the net

soread in the sitszht of the bird'. On the

contrar in politics one is reinded of -(7jar Men

Poe's story where a docui.nent is concealed fron the

police investi7tors by bein,77 hung up in the r:iost

prominent place pos',ih 7e. The one thin in which

it seems iflpossible to 7et the oul-c to t,,-;he t'oe

slightest interest are the publicly declared

intentions of a political party. I don't lean

the slogans that 70 on the posters; I don't mean

the brief 1.ossyofferin4d7 the election

campains; I mean the pro.T-ra,mes and policy

documents in which a political party thins ,s1D(7J

in the years between. Those are the ones worth

listening to.

reember how before ic64, ,-.inc-i before 165,

one used to cparound readilw '..)assawes fro i a

• —2—

Labour Party oublication called Si7noosts for the

Sixties and pointin7 out, for instance, that, if

it meant anythin7 at all, it meanestate cnntrol

of prices and wewes. The assertion, 1411 recall,

was received with polite incredulity, as much as Lo

say: "That's a very afflusing theory; but of cours

we know thGt even a Labour xovernrilent wouldh't

dream of such a thing." Then millions of electors

thouht theselves hard done by, when it was

precisely what hap)ened to them and speedily, as

soon as the Labour Party 7ot a subst,ntial majority.

The sa'ne riillions are lininf up a7ein, to be

hoodwinked once 1-iore bv the sa:':e soit ,,-)f political

'double—take'. "Don't Pa:f:!e to us," we hear them

sa7in:,?; alreadu, — and Tiore will be heard in this

strain 8s the y:Jonths ;7o bu — "Don't coe te, us and

tan abot a Labamo co-vernent in the f'uture push—

inn ahead v,t-1 nationlisation at an acceTerated

pace and iuyoein tiThter (.-:ntrol a than evel'. They

qloU have tried al-7. that a few years moo, bUt nPL,

soon learnt their leson in.,,raotice and ,ron't do it

- •again. 'i7hy, they are actually taldnE controls

off as fast as they. can 70:"

So the,y are. A LabsufovenTient always

does that in the year before a General il,lection.

Harold. ';;:ilson himself did it at the Mard of Trade

in 1950-51, and claied cred4,t for il. Then

people with short siTht and short rfieJboriF-s ben

to think to theciiselves that oerhoss there ,ssLght

not now be so much bsrs after all in votinr aain

for a Labour -Prtr./ which the7 is.Aaine has ceased

to be socialist ond hos becouie a nice, cosy, fusz.ily

liberal affair, with Food intentions, 5nd plenty of

and tax reliefs for everbody. The answer

to this is: "Listen to hut the Labourr1::! are

sa;"!in theselves." If .,7cu do,you will learn tht

they are resslved upon cprehenoive ntionalis—

tion and control. The:: ..)rcLe to provie the—

selves 7,ith ::i] intru-:1---nt VhiC"-.1 i3 SUffiC:ieDt to

eli'riinte Lvrivfr,te enerise frcy„ t}:i.i7 =ritish

ec.)nomy. It is sirfiple; it i.7. -2f,cctiv.:;

I teT1 -LT.:Du 'ahoct it, '7,,,Et .:3c: of ucu -;sill 1:..- ao

incredulous ao .eale wee in ilT.7),I.

• - 4 -

It lorks li(e this, and you fird it

set out in the econoriA.c section of Into the

Seventies, the highly im9gintite title of

Siroosts for the Sixties, ter years later. The

hesdir is "Prices erd investment".

A great pert of industriel irvestert ir

this country consists of the plouFting beck of

brofits. Profits in turn depend, nf course, or

prices in relation to costs. Corse..„uently, by con-

trolling prices 9 socielist 7,overnmer

sutometicelly secure e upon investn-nt. -41

forcibly holding don the brices)dnd conseuentlyc.

csr lw de7,,riviii* of

the surplus for re investment. There ulil e

little or no possibility of bprro:Arg

the m-?,:ckeL,, since the priv',=te in.restor is unli'Kel,i

to put his money into , concern m ich is being

brerented from mekirg ede-;uete profits or ever .1-v

profits 9t -3.11. It is -tu use 7;r- et increeeei

efficienc, fir:'s to minti- their

profit -ithout i-cresi-g nrice,s. Intl :tip- - the

the profits of en industr/

- 5 -

:greet 91ly of socialism - put peid to that

possibility. Thu s te industri,a1 rut iill be held

firm bet7.^)eer the rutcrecicer jss of infle tion or

the one ITend end price cortrol or the other.

Of course it is not the int,-rtinr of the

eocielists so to use price control thet investment

is brevented 9lto,7et}-er. It is their intention to

use it for t7io concurrent purposes: first to ensure

th.it the investmert dOe S te 015CC is thp-,t

%,Jhich they, the socieli st ..,.overre.rertjsbprove of;

secondly, to eplsce any te onersbio by stete

ovmers1-..ip. Le Cd9Ssic ,4entence, the fulcrum of

the -:;hole oner, 71tion, is this; "Ur' it is the c'se

et s corrip`P.ry must r9:i qe coOit l th rouT,,:b incre

its brices, then the co=uniti es S hole hve

riqtt to dem.,-;:rd SOMe sh7:re in te -]gets Id

for by the hi.Eher Prices". Tbi s th,it r,er-

rLis:::ior to set srices

produced for reinvestment :rill be condition/4

the st--:te c.=.7led h esity tke

in tLe com,:ry."

— 6 —

more simple yet subtle i.echsrism of

exoropristior rsrely 1-ive beer devised.

profits hich sre earned by the esoitsl

to private bersors :rd reinvested by those privte

persons — remember,this is after tsx, not before —

ar.e., to be pertly confiscsted cr. the pretext thst

the stste trsde the -profits Posible by suthcrisir;::

thebrices. It is sn -assertion s.lhich comes, like

the Esst ,.tind E-sex, str'?.is"‘.t frOM the Jite,:oes

of Tt is the bure principle

-tt-let the freits of t1-.e citicers' i osr , tbe

brouct of his cspitsl, if he is silo e d to 171-sve

srv, belon,T in the firQt irQtcrc:-.. to the stTte,

i;hichErsciously 7ermits hi:.-re to dispose of such

Portion of th-- cc it deet-:s fit.

"Are uity ot:ake"; it eouri's cc re?sor 'able

and e—.Luitsble. 3.st os.)0ershi,p of e Jlity :.[..eT!ns

shere ir control of sEe:nert; it rr.e'..ars

director cr the bo'ard. He ill rot git

otber diIrectore sit; 005 s!ill the ct,at,- e.!-.?

ir psrtner, s it, is ir itjsh et em. 'he

stsu:e of the :;i7J-Jer--Trent) ctste

director or directors or the board, there to

exerci se cont rol4 the po-..e-r of

bPhird thern, the1 A_11 be the mosters. rihe ot'ner

sh-9 -r‘eholders kro:.; ths t business is rc

zoir.:;; to be no-ducted for th.eir benefit -

to brin:.: thern the 'o)st return C, r t'-oir

it to be onduct-d sceo rd7ynce iththe

v e snd tu2tC uC F.) :se o h o :1 the le e 3

e sttu. i hich'

ird blorrs, cut tLPI.r .Lo csee oat:

rptior 1iuctio' iiihrsve i evee s7ift but

silent stsi*es. It is the euthsr-.si.-. criL9te

enterprise: s course of injectior E of price con-

trol d thuJictirr si :t in to slee f ron: i p's

destins-.! not to ri Pe.

e , e r , ill Cst

-.Nell or r.il profits berm]. Sted .srofi ts. e

Ls:boznfoo . r'cos tern..'tive Procedure fsr

c3ses

rer.

- rtc.1-21y those00,0 rrre ;10s1 t,,u she

Qt.snaH'OC o f the Cri;. ofths peoble' e

•C 3e.'S ri c e r e s <3,/.. o.oretec. :31 tu e tl. e r

but te csri uisite for re,': ir..vest:Ter..t iLlPrir/a-a4

oiidiby t s te t self . 2rex.: s -are

t'hese: I Dl orius i ese. sectii."46•.s.

7C) t bi t(-) ire .-rse their 7)21c,

heould t h.e to ek

17-,restt firc tothei

Here the irfusior of stte otpi Drder to

keep V.- e busiress ljve?.h:d '2.)a.L

uto2T-tic911y tDi tote cortrol of

t!-.e erterp-ise

theessets._

Archirred es used tu

the S ro rit to the --,rourt.., of

levero -e th't ruulU be Xeoto. tIIJ 1 te

to s: he, j.-=ed tc ,LII

e .1.1;

- -ire cc-- 7_ e

rot ir/02

i e i.-

,J; •••••.:L 7"7 C)

Extract from speech by the Rt. Hon. J. EnochPowell, MP, to a Young Conservative heetingat the Royal Victoria Hall, Southborough,Tonbridge, Kent, at 8 p.m. on Friday, 14th

November 1q5q•

A week or two ago I was amused to read the

letter of a correspondent the CBI's journal

Industry Week. Referring to the plethora cf

strikes, he wrote: "I believe that the CBI,

together with such purposeful men as Lord Stokes,

Vic Feather and Robert Carr — and, may I add,

Enoch Powell and Ray jui]ter — could rise nowabove ell other considerations and lead Britain

out of this mess as surely as Churchill did from

1940." Naturally, I was delihted to find myself

placed, even half apologetically, in the company

of such distinguished and in highly respectable

gentlemen. Vvhether they would be similarly over—

joyed, is of corse npt for me to guess. Hoc:;ever,

I fell a—musing on what so e or all of us would

do when called upon to save the nation. What

is this essential act of almost superhuman courage

and deci-ion, that is needed to solve (as it is

• -2-

called) the problem.of strikes?A)--rdwe

I do not exoect4/My colleagues on the

involuntary panel would agree with me; but

the conclusion that I came to is that the courage

needed, at any rate on the part of governments

and ooliticians, is that rarest and most difficult

kind of courage: the courage to do nothing.

Don't 7et me wrong. I am not saying that

government is not concerned with the st te of the

law; of course it is, and I happen to believe

that the state of the law governing trade unions

and trade disputes recluires to be refonied in the

interest of justice between man and :J.an and betwe

the individual and society, a thin7 which is pe-

culiarly the care and chare of legislation and

government. I am also not saying that a reform

of the law relatin to trau- unions could not

contribute, over a substantial period of time, to

a fall in the indidence of trade disputes and of

the aniount of productive potential wasted throuj(1

strikes; I hope, and wish to believe, that this

• —3—could be one result of the right sort of reform.

What I am saying is that the fault of governments

and politicians has not been that they were too

little concerned with strikes and industrial

relations, but that they have taken far too muchfl

notice. They have fussed too much, not too littl

They ;lave assumed that a dispute between tne buyer

ana sellers of labour in a oerticular industry was

self—evidently their, the covernment'5business.

:he true presu 2tion is 17holl3T the other way.

If a buyer and 5 seller cannot a2;reeupon

the price for what they wish to buy and sell, that

is too bad; they- must, 5S the ohrase is, "do the

other thinP"." It is nc concern of zjours or mine,

and in particular no -oncern of the state.

Ad-:littedly, the law of trade disutes enables,i1-7-14

indeed oblizes, aining about the price (pi'

labour to tal:le place under sp,ecial conditions:

so:ne of thelQ, "collective bargainin ",7_,PAI: r 1-'4>

and others involve a eree of deres t to4_

• -4-bear by some citizens upon others which may, or

may not, be unconsciona'le.''? Still I say, givenjut' 'A- &

these conditions, given:that frameworW, it is up/ ;--,

to them to get on with it,and if they cannot aree

without messing up their business and their lives,

so much the worse for them. If so be there is

widespread oropensity ong our fellow men to

behave foolishly, then neither Laws nor politics

nor preachinc7 will ma,k.e them wise. They will be

schooled, if at 511, only by hard reality, by the

conseeuences of their acts; and thfthese conse—

cluences are not sufficiently harsh or unpleasant

to mak.e them deist from their folly, then perhaps

they were riL;hta::d we were wran after all.*Ks

Hoever, I do n,.atbelieve that imen ts prowrity

to respond irrstionally to circumstances. On the

contrary, my observstion is that those involved

in any situation are ecerally behaving morc'

rationally th5n the onlook.ers f7ive thea credit for.

Still, iLy proposal "just t1,7.eno notice"

must, I 5.m aware, sound psrado:Kical to tbe point

• -5-

of whimsy. It is worth askin7 why it should

see so strle• 1T,F,ttept to answer Nay yield

valuable clues to our problem. _After all, live

2and let live is 6 sound enouZhLand indeed an

esoecially :ritish do we so sinally

abandon it in this case? ':ecause', the comuter

says, 'thej interfere with my journey home and

cause tiz'esome and sT:fden interru.,tions to the

even tenour of my life'. '3ecause', the

customer says, 'I find I crinot yurchase what

I had intended at the time I intended'. :hese,

4ndeed, are annoya,nces, and i,ore irrit. tiuf tnan

sume of the othechan7es and chsnces of this

mortal life bF:cause they see.(n to h.Jive 9 kind of

personal malevolence and be aiqied deliber2.tely at

us — of cnorse they are not. host of us,

however, laveithe sense to know. that if we invoke

compulsion aaint others to .)revent their actions

frcyo OSUSn. ; urinconvenience — if they ore to be

bbliged to iro on drivin trains, or (Dtor

car batteries when they choose not - the cor:loulsion

Till not stop there but will presently be exercised

ag.ainst us. Besides, we have the consolation of

knowing that when the customer is irritated or

disaopointed, so(nebody else too is sufferin some-__

where and has a very special interest in terminat-

inc:. the irritation or avoidirv,7 a repetition of the

disappointing events. If the life of the nation,

or a part of it, is literally brou,xht to a stand-

still or endan-ered, te government has power to

act and should and will act; 'but that is a cats-

gory as narrow as it is/e-144442, and is not what the

ar7u-cilent is abeut. So, l face it, when people

say 'the 7overnment dust do sociething: about this

problem of strikes', the reason they have in (And

has little to do/with'private and personal incon-,..

venience.

"Yes of course," comes the rejoinder, "we

are thinking aboat the national interest. Look at

all the loss to the nation's econom,:, snd look at t

S.

the do to our balance of eyents." There,

-7-

indeed, we get to the heart of the matter. All

privacy has been lost. Nobody's income is any

longer his own; nobody's production is any lon(l'er

his own business. It has become an item in the

national income, a diit in the Gross rational

Product, I don't think we realise tow .L-cussified

we have become: there is far less difference

than most of us suppose between the outlook into

which we have been brainwashed throuh the years

of socialis7i and s -.ni-soCialism, and the mentality

of the 200 million inha,,itants of the Soviet Union

So we p.o7gle, open-mouthed, at the headlines v:hich

tell us how- many million pounds worth of product

ion has been "lost" in this or that strike, just N

as if we were obliged to arrive at a particulbr

annual total, like the Israelites in 1]vpt making

theirAuota of bricks bad dash it: somebody has

t some of the straw again. If the ewloyers

and the eLployees in the motor industry canxike

manae their affairs so as to azree upon the terms

on which they will toTlether manufacture cars -

-8—

alright then, so much the worse for them, and you

and I will either buy cars_from those who canZrt,

manage to a%) on producinc, or/will find something

else to soend our money on'. ene oottom hasn't

drop,.)ed out of our world yet, and the statist—./icians can look after the jolly old G.N.P. and tel

us about it when they've done their SUMS.

"But you've forgotten the balance of deo:—

Fents: ',That about exports?" The olain man's

voice rises almost to a shriek o irritation.

No, sirl I have not forgotten the balance of

payments. On the eontrary, I am willing to make

you a concession that you don't deserve. I will

let you off bein7 told that the majority of our

trading partners and oarticularly such celebrated

competitors of oura, as the Jaoanese are just as

troubled with strike: I mill say nothing aboutPao: a.//1.4ia'razthat at all, swiddwill aSSume instead tnat because

of our industrial reletions our exports oecor::e

prorressively less des red in the rest of the woe.

-0-

- and notice, Sir, your armament reuires these

words, "progressively less". 'Jell, then, the

demand for pounds to buy our exports will fall

corresoondinly and the exchange rate of thepound will decline. As it does so, two things

automatically happen; exportim7 becomes more

profitable, so that higher wae rates can, if

desired, be paid in the exporting industries; and

imports beco(rie dearer, so that we ta'ke the conse-

guences of our own behaviourlin terc:Is Gf a stand-

ard of livinc7 with slihtly less of the foreignes

products, which we should have liked to h:we, L:n1

oliahtlg mo-r:e indi7enous products. "Bat," says

the respondent, "the ,_)()Ind sterTin is hot free to

behave like that - the exchane rate is fixed".

Here at lvt we arrive c:t one of U.-3e

c; thouL:h b: no LJ=1:ina, avol;:

one, for the fateful and feverish peoccuption

of Travernent ar:d alar.7 therefore of

,p)ublic a:Anion, v:ith tbe interruption of indust-.ria7 oroduction by .11,-,,t*-!.../7t-r7T

the

—iC—

blessed rate of exitune. This it is 7ihich makes

the Government potentially a party to every nego—

tiation, every dispute; for every item of prod—

uction for export — and all production affects

exports one way or another — is an item in that

arithmetical computation, ite TIK trading account,

which purports to show how- we are managin7 our

balance of osyments. There is s direct link

between the fixed rate of exchange and ;;hat is

called "the problem of industrial relations."

When I said that the sot of courage which is

Aktessary is the courave to do nothing, that, for

governments and politicians, means the courage to

make it possible to do nothing. ,A free exchange

rate, like other free orices, is the condition of

governments and politicians bein,, able to do

nothing. is are called upon to divest ourselves

ef that ..arment to which politicians clin7 as

though it were the lest veil of modesty — the

excuse for interfering.

I hsve the ipression that opoositon to

-11—

the free exchang:e rate is crumblin7 fast. It is

always a good sin.n when rational arvument is

abandoned for ridicule. Today no serious

intellectual atteeTiot is made to argue the case for

rigidly fixed rates of exchange, and the opponents

of flexible or floating exchanges are resortin7

to the last devise of desberation — to treat an

economic principle against which they have argu4,d

in vain as the exclusive personal foible of Enoch

Powell. When that happens the end is not fari

off, and the episode with the Geran mark has

broup.ht it rabidly nearer. It was in that

connection that in the sae issue of the CB1

journal from vhich I have already -uoted, the

floating xuhd, attained edf,toxial benedittioll:

!.r "The one oeriod -when the2e were no crises,

when everyone could l'elax, was in the three

weeks before official revaluation when the

mark was left to float. Economist pundits

who defend the Bretton ':-Lods system had always

predicted that flo,ating rates would cause chaos

and panic. Yet just as their judgent over

the virtues of Bretton -4400ds looks misplaced,

so their misgivings about floating proved

7roundless. floatincr makk took,,,the heat off,

,J7ave soeculators soethin7 to worry aboet for

-1 2- -/I7e.

a change and meant/frantic Government exchangedealers could take' a holiday from the imposs-ible task of trying to preserve an obsoleteexchange rate. The real lesson of the mark'slong overdue revaluation is that the 'eholesystem is peobably worse than the alternative,:those three weeks e.ave everyone a elimpse ofthe stability a floating world might bring."ere- !

It vould be wrong to suppose that the balance

of payments is the only cause of the fateful

involvement of the government in the terms and

conditions on which private citizens afTree to buy

and sell their labour. If we were the only

country in the world, and had therefore by defin-

ition no balance of payments, there is still

mechanism which would tilLike the ',:overnment a death's

he d at every bargaining It is perhaps

the most subtle and devilish mechanism which the

politicians have evee invented, and yet/simple to

boot. The government causes inflation: by its

own expenditures, and the way in wnich it finenc s

them, it causes all prices (includin we , which

are the price of labour) to rise and 70 on risin

Having done this, it blames everyone else for the

-13—

consequences: it blaeles the sellers of goods and

services for puttincT up their prices; it bla es

the workers and the unions for putting up their

wages. To clinch it all, the government plays

what is Perhaps the greatest con idence trick of

all time, by producing somethin7 celled a prices

and incomes policy, which is supposed to tell

everybody what the prices of their zoods and

services and labour ought to be. Every time a

price or a wage is fixed, the qovernment is, or

may be,tn on the act". gefore the citizens can

agree among themselv s, they have to resort to

the government to ret approval. The damaye which

this third hand in the rame has done to indestrial

relations in recent years is beyond computatio :

that elusive undefined, tyrannous concept of

"the public interest" has been spatchcocked into

the private right of citizens to aree or disagree.

You may be wratified to know that the Prices

Ir.comes 3oard have produce6 131 reports in the

last three and a half years — there's "product

• -14-ivity" for you - and I will satisfy your curiosity

by telling you that the last two are on "Plaster-

board Prltes" and the "Pay of Certain 2,mploye s

in the Film Proc ssing Industry". Ch this

principle there could be 1151 reports, nd stillLi t-.1j-

no limit to the subjects *444c1 untouched. Rem-

emberfithst everMOne of those reports is an

arroqation to the state of the cower to know what

agreement the "public interest" recduires between iki./tws)

those who have,goods or services or labour to buy

or to sell. In the end the whole thing

contraption, desined to conceal the true causes pr

the increase in prices from which the public are

suffering, and divert their irritation onto the-

selves and their fellow citizens. It r Ands oneve

of those idols whose are sup osed to

respond to the pravers of the worshippers but

which in realitL; are ma -pulated from be ind b:;

the 2riests with res and levers. If the

government creates new 'Loney to meet its expend-

itures, prices and waes will rise if trade unions

-1 5—

had never been invented. „c7f the overnment keeps

the increase in total demand broadly in line with

output, then no union that ever existed, however

stron and no monopolist4however avaricious, hes

the power to cause inflation: they can do no more

with their utmost efforts than shift a little

purchasing power from one point to another, some

wares and prices a little up, but others down.

So it does call for a greet rd continuing effort

of government, a performance of the essential duty

of government, in order to render superfluous that

mighty charade which has bedevilled the industril

scene for -ye:aro.

This is not ell. Government is lso a

party to industrial relations as an em.ployer.

Some employment by ;overnme'')t is inseparable from

government itself: the state must have ,ts

serv-nts, civil and ci.ilitary, rut must afford.

them that remuneration which will secure the

numbers and zueii ty it has ̂ cided that it

-16--

needs. -2,,Jt the Tiodern Socialist state is a

voracious emploLer, and a dishonest one, v,hat's

more, in a sense vihich I will )resent]u explain.

From the nationalised provision of medical care„)

end of tuition from infant to post—gradute level)

right th-r.ough to the nationalised industri_

providinc: power and transport or producing coal

and steel, the modern, encroacnim; state is a"*" ...e..'-i

gigantic employer; but t f.L.Lg the state an&ared

with the 2ower of the state, it is nnt pure

emplo;yer, not pnre pluchaser ct 1,50401-4.-- dr—cA71

politician at the sa:::e tIrP..14"1 4. ng politician,-

it endeavours to promise the nnimum c-,n VcieAksafreyAZ stm " I frbezz4c‘ G "i4. 07 6 A'Aet, .44tG

popular side) fiere EI conflict beten its4

profese:ion of intentions,wnich ore boundless, and

its reans, or taxation capcitu, which ,s,re limited

.Tieing- politiciian, it cl::ines tile industries which

it ovins, not for pureip cot=ercia: ends, obe-,.ying

commercial criteria, but for politicsl e-d, to

subsidise, to infloence, to :i.l'i votes or avoi

-.17—

1osing them. To its e:Aployees, especially its

industri,fa.leffiployees, there is the stnd i nj - contrgt

beteen the theoreticalyunlirnited resources of' the

state ss eployer or banker and its apparent

unwillinness to 2ay the :-cirke 4; 1.,te for the

labour it tries to 2urchase 4t is not Tithout

reason that th strike record in n&:tionf=lised

industry can compare v:ith nn'thind in private

industry. So this double character of the

government as er:;Iployer not only involves it

directly in the market for industrial 1J-;bourai

under unfavourable conditions, bet makec, it

impossibly difficlt for it to ply its proper

role of disinterested arbiter in the relationships

between citizen and citizen.

,

1,xtract from speech by 2he Rt. hon. J. 2.nochPowell, ..P., proposing the toast of "TheCity and Port of Cardiff" at the InvestitureDinner of the Cardiff Stock 1,,xchan-e .,1ssoc-iation at the ,,ngel Hotel, Caidiff, o p.m.,

ednesda-i12th Nove,lber le60.

If I said that Cardiff and that remarkableit#2.04. 41 .C2 vfe-are, the industrial West hidlands, from which Imyself come, embody the same economic excerienceand teach the same colitical lesson, I mi7ht seemto speak in riddles. True to a considerable extent it was -,elshmen who built the industriesof the West Lidlandsi-and their n.:,mes remain tothis day as evidence - but I not thinkin ofthat fact. I mean that both were created by causes which have largely or wholly disap)eared;yet both have proved to have a vitality ano a

4., r growth which is far bejon4 what

would have been credicted andlowes little ornothing to those h'.Lstorical origins.

The West 1.idlands rose to wealth and

populousness thro 11 the trinity of coal, iron

and limestone. Not one of those remains today;

• —2—

yet there is no area in the kingdom which is more

prosperous or contributes more, in pr000rtion to

its size and population, to the nation's wealth.

Cardiff', as a great city and port, is the creation

of coal. It was the torrent of coal from the

valleys which converged upon the mouth of the Taff

and was carried from here over all the oceans and

continents of the world, that made the name of

Cardiff famous and built its docks and its street

Yet althouwh coal has long since been in retreat

and is fast vanishing from the scene, Cardiff not

merely remains but is larger and more prosperous,

the metropolis of a happier hinterland, than

in the days when King Coal reipmed suoreme.

What is the explanatl:n of the paradox:„Ik

Aimply this, that a large and concentrated

Population is itself a magnet and a dynamo,J:4

expecially whe'lnicriarried to position. It cant

leave the trammels of its past behind it and

t-et.:zz a :icyaentum of its o, n. .iloove all in

3ritain we a-le sin;Jf larly fortunate that such

• —3— eLiettconcentrations of TxDpulation -,re never far from

one another or from the sea, /44-topOiCardiff is at

one of the corners of a trianglqkthe other point

are London and the industrial 'Iest Lid-

a geometrical fir7ure on a maplands.

is not enough: the trian:fle must be drawn in

teie:Is of transport, snd this above all, in our

age, means roads. Past private enterprise has

beueathed to us the railway triangle; and I do

not doubt that future orti-e-i,Lro-re will learn to

get far more out of it in speed and traffic than

we yet imagine; - Hut today it is the roads, the

mo to r-ro ed, that is life - and-death.

1411-147-14 "' different - caeitalism and enterprisel'?"7 at '

would have given us the eotvor road too,L'!;e are

committed, for our time at least, to the rosd as

the creation of the state. •ell then, so te it;

let us put the eower of the state and the rethle

e- of the state to 'eork. To ril;e-mind we waste01-41.644,,-,/!41

too much time and enery inicslculetions of cost-

benefit snd iinickye444 -4...4.1.testo meet all theaei, 0144

• -4-

aualments. The decisions are croinc-r to be

arbitrary anyhow; so let us do what the Romans

would have done, and what the Romans did7 out

down a qrand but simple system, and le 4people

get on and mak.e the best of it. s it was, the--

Romans :2,ot it right,— as near as msk_es no matter —

1900 years ago(' and of course they came straight

throu7h Cardiff. I say it is far too long we

have been waitin7 for two of the three sides of

that vital trisnl to be completed

The other factor is that great common factor

of everything 7.:ritish, the sea. Cardi-Pf is s

city because it is a 2ort; but also, ever since

cosl began to die, it is a port because it is a

city. 2-nd here I have another wish for you, a

wish that will bring .:Tie riht to the perilous

vere of politics, :),,eihps -oeyond. .2sason

why a great J.:tass of L?.eople living in 5 concentrated

area becomes, as I said before, a msj:net of a

dynamo is that everyone of them is lookin, is

forced to look, for ',2n outlet .Lor their energy;

—j—

and the larger the reservoir of human capabilities

which they have among them, the more successful

and productive each is likely to be. It is the

sarde with a port. I have no idea — but E.,f1

consoled by the fact that neither has anybody

else — what traffic froL, what places in britain

and overseas the port of- Cardiff can transit

,Ath 47reatt or greater advantae, than anu other

port. but this I do know: it must be under

compulsion, continuing compulsion, to find out.

I do not care so :1-uch whether in form the aort

is owned by shareholders, or by the city -I'the

or by 8 public authority, or even by 6 ':-Iuess.

at ls essential is that it be able, anf be

oblied, to fight fc-r its traffic aiainst all the

possible alternatives. s ir mm secnd v,dsh

for your city pot: the spirit ok.k. of rivalry,

and the opportunity, indeed the necesity)to

exercise it. by "-t I do not mean rvslry in

the corridors of Thitehall, or rivairo in bifdin

• - 0 -

for larese from the taxpayer, or rivalry around

the planning board of a suoer-bureaucracy.

mean fair and open rivalry to borrow t:Ioney from

investors for the best return, and fair end openagalit41-:ivalry those who o,::n and mana7e other ports

to get their traffic and cut their throats if

you can.

Above all beware of those who would try to

tell you what Cardiff can do =--nd be ,t-Jd v;hatit

cannot do and be. They would have been wrom,

disastrously wrong, if they had told you fifty

years ago - no, twenty-five years ao. The,y will

'still be just as wrong today.

I lilce the motto on your crest: DEF1,a3 LA7

DYDD. It is an excellent one. But the day cannot

always be dawning; one surely needs somethinc: mar

So I presume to offer you another, a more defiant

motto, for t'he city and port of Cardiff. It is

from the first Epistle General of St. John.

ETO BETH iBDI, "it doth not :jet appear

what we shall be."

Speech by the t. Hon. J. Znoch Pov)ell, LP,to the Annual Dinner of the Wolverhampton&: District branch of the Institute of Costsnd Works Accountants, at the DunstallSuite, 'Wolverhamoton Racecourse, 7.45 p.m.

Friday th .L'ove-aber

I have rarely felt so strong a sense of the

House of Co.:,mons bein insulated from the real

world outside 5S I did when listenins. to this

week's debate on the balance of pastpents. By

all accounts - and this was what it felt like in

the chamber - the Chancellor cf the Excheqluer

won a famous victory, triumphantly demonstrating

that his opponents were vron7 in challen in his

trade fiE;.res, and announciny that this country

is in fact at this moment runninh a whopainiz

surplus pn its balance of payments.

t,e8soar's P.randson miht have asked the

same tuestion: 'what they g each atier for'.

It would have been as difficult to give hi. the

answer aS to explain to him the reasons for the

battle of Blenheim - and just as unsatisfying;

for the whole thing is a tissue of mystification.

4

—2—,

It may amuse accountants in a licThthearted hour

when they relax, to contei plate the comedy of

errors which is pla:yed when politicians try to ka

balance the nation's books. I would therefore

like to take you behind the scenes for a fewminutes anrf, shov: you s methinJ: of what hao)ens

off stae so that you may be able to derive the

maximum amusement from the tragi—comedy entitled

1-3alance of Payments," which is going

to be staged in the next few months..

First of all then, payments do balance,

always, automatically, arni inevitably, because

payments bre made by buying and selling pounds

and the number of pounds bou7ht is always, auto—

matically and inevit bly ehual to the number of

pounds sold. It is as true of pounds as it is

of potatoes.Our rulers,however, are not satisfied with

this vonderful disoensation of providence. They

are determined that the balance shall be struck at

-3-

a particular, gedetermined orice — or rate of

exchange. This determination is the Pandora's

Box, from mhich have issued a great port of the

ills by which we have been plagued and of the

nonsense to which we have had to listen. In

order to achieve their object, our rulers must

obviously buy pounds themselves to force the

price u2 when they have fixed it too hi.c1h, and.

fibrePsell pounds theselves to rinfIr the price down

when they have fixed it too low. 7;hen they have

to buy pounds, they tell us that we have a deficit

on the balance of payments. This mak..les us feel

very poorly and asha ed of ourselves, ,iorse than

that, our rulers, in order to buy pounds, have to

use up our stocks of gold and forein currency

and go and borrow from our neifhbours.

no mistake, however: a surplus on the

balance of pay!nents, which akes s Chancellor of

the Excheguer crow like a cock, is just as big a

nonsense as a deficit. It is as silly to buy

and hoard other people's cuL.rency as it is to

-4-

borrow other oeoples currency to buy back one's

own. You will recall that the Germqns have

recently got tired of that particular lark.

leither of course can go on for ever, which is

why it is as silly to telk or boast about a

continuing surplus as about a continuing deficit.

The one is as impossible, and for the same reasons

as the other. This is why our rulers engwge in

their adventures in accountancy. Having prevented

payments from balancinz of their own accord, by

fixing the rate too hi7h or too low, as the case

may be - they are embarrassed by the invitabe

'cap' and ima;:ine that they could get rid of it(/

' buyiot (or sell/pg) their own currency,

itatr-by altering the other ites in the balanue

so as to eliinate the 'gap' itself.

So they labo iously atte pt to copile

accounts of all the individual transactions -

the reasons for all the ,)urchases of sterling

and sll the sales of sterling - which have added

up to the grand total. inyone could hsve

- 5-

predicted before they started that the attec-pt

was doomed to fail. Just look at the items.

First, there are the pa ments for all the imports

and all the exports, which they try , co ,ile

by identifying the individual imports and exports.

I have in my possession a co.:)y of a letter from

a customs official in October tryin.7 to chase up

the statistics of a. consinment of 50 cardboard

boxes of En;7lish 6heddar cheese exported to France

the previous February: in view of the importance

in national affirs of the trade statistics",

says the official, "you will appreciate it is

vitally necessary th,t there should be no delay

in the lodgement of export ent s." I wonder

when the payent for the Oheddar cheese hot itself

added into the computationof our balance oi

ments.

Then there is a separate attet to estim ,e

- again from the component ite s - the sales and

162X1EiZEN purchases of services - the so-called

'invisible account". But this ls child's

,^—0—

play com7,Dared with the trouble when it comes to

the capitol oart of the sum. Here oir.ain an

effort is rfiade to esti_ate the capital invested

in Eritain by people dutside, ond outside Britain

by oeople inside it. -,hat there is no means of

controlling or estimating is the .Aove!rient into and

out of Britain& aioney nct o.;:ned by its residents,

a Llovement vvhich can te lar7e and rapid and

unpredictable. Well, 7Inen all the oluses and

minuses that can be identified have been added up,

the result of course turns out to be miles adrift.

There is a 7cp, often s yawninc ;rap, tetv:een the

realit Mich hos to be accounted — the

amount which is spent by the :7overnent in buyin7

pounds — and the co:-:iplicated sum which is the

attempt to account for the soc:-,770d

This is stuffed up _ith a fizjure called the

"bala,.]cin7 item," a delici..Dus expression, so much

essiec on the ear then "error.s and omissions"

and so much better calculated to cunvey that,

'fhen all's said and done, Pi7ovidence has come to

• .

—7—

the rescue of the .3rit:Lsh and given theu a

haloncin:7 itec:1 which (ii,=',ies their sums coine true.

For the year I jg the "clancing iteo started as

Then the Treasury revis,,d cli the

fi:zures for the different parts of the sum, and

the balancing itei cae out at ::1-50m. instead.

The year before it =173 riilthn — in the other

drection! Tha balancin is, in reality,

an adTiission of ncJisense; it is the peretual

reminder that all these laborious or:iputations

are a phoney way of accounting for a sitmple and

oredictable fact: that if you fix the rate too

ni;th, the govermilent must buy pounds; and ii you

fix it too low, the government oiuct sell pounds —

how many, nobody cantell in advance: bow :iany,

is all thst anybody I-moos afterwards.

The accounts are phoney, not because anyone

has deliberateT:: fuded the figures, but because

25xyxxxxtuus they purport tc exlain what in fact

they do not explain. all phoney occou ,nts

they lead to trouble, and look -at trouble they

-

have led to.

Because the trade fiizures were port of the

phoney accountinp:, P7overnments h d tried to push

and pull them, in order, as the- said, "to get

the balance of payments right." They put sur-

charges on i: ports and demanded deoosits; they

gave subsidies to exoorts and medals to exportg.t4

At least this is what we did in Britain: in

Germany they taxed the exports and subsidised the

imports, which is the saTie nansense the other way

round. Then they moved on to t'e capital section

of the fphoney account4, and tne2e tne;7 forbade

or restrained the British from investing overseas

and encourag-d the nationalised industries to

borrow money on the continent. But all this was

the lesser oart of the harm. In order "to cTet th

the balance of oayments ri.ght" 7overnments have

tugged 5nd strained at the economy itself, forcino:

it now this way and no-- that, like on osteopath

gone berserk - autting purchase tax up and then

putting it down, c)utti - hire purchase restrict-

, :110ions on sod then t akin them off, putting a

sciueeze on credit and bank k lending and then

(what is called) "reflating" again.

It is, I say, a great tragi-comedy: one

dbes not know whether to laugh or cry. I think

lau;;Thter is better; for l ughter is a potent

destroyer of pretensions. 'o 'hen you hear in

comin 7:ont s that the "problem of the balonce

of payments has been solved';or that we hAre Mxam

"earnedra surolus" so many hundred million

pounds, or that our external account has now

turnd permanently into crdit, I suf-zest yau

give a 7,00d, hearty chuckle. If other people

dverhear you, they may ask why; and then

you can explain.

_0_