I have told Mr Powell that I consider the speech he made in Birmingham yesterday to have been racialist in tone and liable to exacerbate racial tensions. This is unacceptable from one of the leaders of the Conservative Party

The conclusion of Mr. Powell's latest speech as I understand it—certainly its implication—is that we should do nothing to help boroughs and cities like Birmingham and Wolverhampton that have these problems, in the hope that if only we let the housing get bad enough, the schools overcrowded enough, and the social services overburdened enough, the immigrants will go away of their own accord, and the problems will disappear. It is an example of man's inhumanity to man which is absolutely intolerable in a Christian, civilized society.

We may be a small island. We're not a small people... For the last six years the Government of this country...have let us be treated as second rate. They even plan for us to stay second rate. Because that's what Labour policies mean... Now I don't intend to stand by and see this happen... Do you want a better tomorrow? ... That's what I will work for with all my strength and with all my heart. I give you my word and I will keep my word.

I am sometimes accused of being oversensitive about unemployment. I do not believe that that is possible, certainly not for anyone who lived through the 1930s and saw the political consequences of high unemployment throughout Western Europe and what happened in 1939.

This would, at a stroke, reduce the rise in prices, increase production and reduce unemployment.

[I]ncreasingly the use of violence has become not the last resort of the desperate, but the first resort of those whose simple unconstructive aim is anarchy. That we must all surely resist. Anarchy is not a prescription for peace, justice and progress. It achieves nothing but the suffering of innocent men and women.

You mustn't expect prime ministers to enjoy themselves. If they do, they mustn't show it – the population would be horrified.

Please don't applaud. It may irritate your neighbour.

The Pax Americana has gone the way of the Pax Britannica ... The implication for us in Europe is twofold. First, we shall no longer be able to enjoy the luxury of urging the Americans to put right anything of which we disapprove anywhere in the world and then of criticizing them for the way they do it; and secondly, we shall have to undertake a proper share of the burden of Western defence if American support for the Western Alliance is to be sustained. That share can be underpinned only by a strong and expanding European economy.

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This was a secret meeting on a secret tour which nobody is supposed to know about. It means that there are men, and perhaps women, in this country walking around with eggs in their pockets, just on the off-chance of seeing the Prime Minister.

I don't think that modesty is the outstanding characteristic of contemporary politics, do you?"

In excluding me from the shadow cabinet, Margaret Thatcher has chosen what I believe to be the only wholly honest solution and one which I accept and welcome.

The time has come to speak out. Britain is now locked in a vicious spiralling interest rates... The net result of completing the vicious circle is that prices have increased, the rate of inflation has gone up, the money supply has increased, unemployment has gone up, the rate of bankruptcies has increased, the industrial base has been further eroded, the Government's borrowing requirement has increased and as a result there is more pressure to raise interest rates yet again, to be followed inevitably by the same vicious circle. It is this that must be broken.

I am sure that entering the exchange rate mechanism was absolutely right and is still right. I regret that we did not do so five years earlier, but that is history. Economic monetary union must come as soon as possible, and with it the single currency. Industry wants the single currency, and we must pay attention to the requests and demands of industry.

The British government and the British people have been through a searching debate during the last few years on the subject of their relations with Europe. The result of this debate has been our present application. It was a decision arrived at, not on any narrow or short-term grounds, but as a result of a thorough assessment over a considerable period of the needs of our own country, of Europe and of the free world as a whole. We recognise it as a great decision, a turning point in our history, and we take it in all seriousness. In saying that we wish to join the EEC, we mean that we desire to become full, whole-hearted and active members of the European Community in its widest sense and to go forward with you in the building of a new Europe.