For 338 paragraphs the Franks report painted a splendid picture, delineated the light and the shade, and the glowing colours in it, and when Franks got to paragraph 339 he got fed up with the canvas he was painting and chucked a bucket of whitewash over it.

[D]espite the indignation and horror with which most of us regard the actions of the Provisionals, we must not allow our policy to be dictated by revenge or by passion. If we do, we shall not only behave in an immoral way; we shall lose the battle.

[Callaghan] said that President Pompidou had made it clear that where differences existed between Britain and the French-dominated EEC, "Britain must subordinate them to the extent of a complete rupture with our identity". He asked if Mr. Heath's offer to participate in a European spirit, which signified a French spirit, meant that "we are honour bound not to try to upset the principles of the common agricultural policy?" Had Mr. Heath made it clear that no one believed it made sense to give up buying cheap food from New Zealand to buy dear food from France?

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Well, that's a judgment that you are making. I promise you that if you look at it from outside, and perhaps you're taking rather a parochial view at the moment, I don't think that other people in the world would share the view that there is mounting chaos.

[T]here is the unease felt by parent and others about the new informal methods of teaching which seem to produce excellent results when they are in well-qualified hands but are much more dubious when they are not. They seem to be best accepted where strong parent-teacher links exist. There is little wrong with the range and diversity of our courses. But is there sufficient thoroughness and depth in those required in after life to make a living? These are proper subjects for discussion and debate. And it should be a rational debate based on the facts. My remarks are not a clarion call to Black Paper prejudices. We all know those who claim to defend standards but who in reality are simply seeking to defend old privileges and inequalities.

Now we must get back to fundamentals. First, overcoming unemployment now unambiguously depends on our labour costs being at least comparable with those of our major competitors. Second, we can only become competitive by having the right kind of investment at the right kind of level, and by significantly improving the productivity of both labour and capital. Third, we will fail – and I say this to those who have been pressing about public expenditure, to which I will come back – if we think we can buy our way out by printing what Denis Healey calls ‘confetti money’ to pay ourselves more than we produce.

James Callaghan: ...I am not pro, nor am I anti...
Robin Day: What are you doing on this programme?
Callaghan: I'm here because you asked me.
Day: You're here to advise people to vote 'Yes' aren't you?
Callaghan: ...I am here, and the Prime Minister has taken the same line; it is our job to advise the British people on what we think is the right result. Now there are a lot of other people who've always been emotionally committed to the Market. A lot of other people have been always totally opposed to the Market. I don't think the Prime Minister or myself have ever been in either category and that is not our position today. I'm trying to present the facts as I see them and why we have come down in favour of – now Britain is in, we should stay in.

The power structure in Britain is changing. Authority is no longer obeyed for its own sake. There are severe limits on what government can do, so the way to win the battle against inflation and unemployment is not to try to dragoon the country. If we do we shall fail. We must secure its consent. We are playing for high stakes. In a real sense, adherence to the social contract puts on trial whether our society has the will and determination to solve its problems by democratic means.

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David Rose (ITN reporter): Industrial relations and picketing. What about the TUC putting its house in order?
James Callaghan: The media's always trying to find what's wrong with something .. Let's try and make it work.
Rose: What if the unions can't control their own militants? So there are no circumstances where you would legislate?
Callaghan: I didn't say anything of that sort at all. I'm not going to take the interview any further. Look here. We've been having five minutes on industrial relations. You said you would do prices. I'm just not going to do this .. that programme is not to go. This interview with you is only doing industrial relations. I'm not doing the interview with you on that basis. I'm not going to do it. Don't argue with me. I'm not going to do it.

A leader must have the courage to act against an expert's advice!