I believe that the situation has now gone so far that it is impossible to conceive of an effective long-term solution in which the agenda at least does not include consideration of, and which is not in some way directed to finding a means of achieving, the aspirations envisaged half a century ago, of progress towards a united Ireland...A substantial term of years will be required before any concept of unification could become a reality, but the dream must be there. If men of moderation have nothing to hope for, men of violence will have something to shoot for.

This country cannot afford now—if it ever could afford—unofficial strikes, wasteful stoppages, long, weary arguments about industrial demarcation, any more than we can afford out-of-date industrial methods, industrial promotion based on influence and connexion rather than technical ability, or management attitudes which give a higher priority to tax avoidance or the earning of quick, uncovenanted capital profits than to modernization and innovation in industrial production methods, or aggressiveness in exports.

The answer is to increase industrial efficiency, to build up our exports, and to substitute home production for imports wherever this can be achieved competitively and economically, to broaden the base of our economy with capital investment, through the training of skilled manpower and the encouragement to accept change, to enable us to expand without running into strains and stresses such as have revealed themselves in past periods of expansion.

The last two years show that what Enoch [Powell] says today Edward [Heath] will be proclaiming as Tory policy anything from three to six months later...Selsdon Man is not just a lurch to the right, it is an atavistic desire to reverse the course of twenty-five years of social revolution. What they are planning is a wanton, calculated and deliberate return to greater inequality...The message to the British people would be simple and brutal. It would say, "You're out on your own".

We all know perfectly well why the Government are standing by their policy of the independent deterrent. The reason is simply prestige, keeping up with our nuclear neighbours. Frankly, we cannot do it. The Americans spend on research alone £2,500 million a year, which is half as much again as our total defence budget, and it is rising rapidly. We can only be a nuclear Power if we can afford the means to produce twenty or more alternative weapons as an assurance against the many which are certain to fail. Out of our resources, we were able to afford only one intercontinental ballistic missile, and that was Blue Streak. The failure of Blue Streak was the moment of truth for this country so far as the independent deterrent was concerned. To cling to the policy after that was...like the action of a rather pathetic sort of man who cannot afford a television and who cannot bring himself to admit the fact, so he puts up the aerial instead.

I have stated these Commonwealth problems in terms of hard economic facts, but I should be the last to disagree with those hon. Members on both sides of the House who put the problem in yesterday's debate in terms more of sentiment, kinship and bonds of a less materialistic character than those that I have been describing. … I submit to the House that we cannot consistently with the honour of this country take any action now that would betray friends such as those. … if there has to be a choice [between the Commonwealth and Europe] we are not entitled to sell our friends and kinsmen down the river for a problematical and marginal advantage in selling washing machines in Dusseldorf.

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The nation yesterday was awaiting a clear, statesmanlike call from the Chancellor of the efforts and, if necessary, the sacrifices that are needed to lift the country out of the perpetual series of crises and near crises that have dogged us ever since the war. That was what we were led to believe would happen. What did we get? We had a shambling, fumbling, largely irrelevant and, at one point, degrading speech. The Chancellor told us that the Budget was prepared under the piercing eye of Mr. Gladstone. There was one passage that was quite obviously written under a portrait of Horatio Bottomley.

Traders and financiers all over the world had been listening to the Chancellor. For months he had said that if he could not stop the wage claims, the country was "facing disaster". Those were his own words. Rightly or wrongly these people believed him. For them, 5th September—the day that the Trades Union Congress unanimously rejected the policy of wage restraint—marked the end of an era. And all these financiers, all the little gnomes in Zurich and the other financial centres about whom we keep on hearing, started to make their dispositions in regard to sterling.

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