But it is a fallacy, if one is examining the methods by which security can be attained, to start upon the assumption, as so many hon. Members do, that we get security by an increase of air armaments or an increase of any other form of armaments.

We will have nothing to do with Imperialist or capitalist wars. If the time comes, as we hope it will, when the workers of this country own England as they do not own England to-day; if their policy is a policy of international socialism, then it may be that we may have to defend the system and the country against the marauders of some capitalist Power...the majority of the workers would be prepared to defend the system, but so long as they were being asked to defend something with which they profoundly disagreed, something which they believed to lie at the root of the dangers of the world to-day, then it was their duty to say that they would have nothing to do with the armed forces or with war. It was no exaggeration to say that to-day we were far more in danger of a holocaust than we were in 1913...in 1931 Lombard Street determined that it was time to finish the life of the Labour Government. It was finished not by the traditional method of a hostile vote in the Commons, but by means which [I] dared to mention in Nottingham—and caused a considerable uproar in the Press—the Buckingham Palace influence.

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Production, and production alone, can find us relief in our immediate situation. It is no part of the British character to resign ourselves to such difficulties or to fail to take the measures, however hard, to overcome them. It has been truly said that by our faith we can move mountains. It is by our faith in ourselves, in our country, in the free democratic traditions for which the people of this country have for centuries fought and battled, and for which they must fight again as willingly on the economic front as upon the oceans, on the land and in the air, it is by our faith in the deep spiritual values that we acknowledge in our Christian faith, that we shall be enabled and inspired to move the present mountains of our difficulties, and so emerge into that new and fertile plain of prosperity which we shall travel in happiness only as the result of our own efforts and our own vision.

The Government decided...to reduce the dollar exchange value of the pound sterling. In the last few days we have settled what the new rate should be and now I have to tell you of that decision; it is that in place of the present rate, fixed in 1946, of $4 3c. for the pound the rate will in future be $2 80c. to the pound.

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I do not believe in private armies but if the Fascists started a private army it might be for the Socialist and Communist Parties to do the same. When the Labour Party come into power they must act rapidly, and it will be necessary to deal with the House of Lords and the influence of the City of London. There is no doubt that we shall have to overcome opposition from Buckingham Palace and other places as well...There must not be time to allow the forces outside to gather and to exercise their influence upon the Legislature before the key-points of capitalism have been transferred to the control of the State, and I look upon these two key-points myself as being the land and finance. If other people become revolutionary, then the Socialist Government, like any other Government, must take steps to stamp out the revolution. The Socialist Government must not be mealy-mouthed about saying what they mean. They must make it perfectly clear that it is their intention to carry out the mandate they have been given by the people.

In 1919 we pledged our honour as a country that we would disarm as soon as possible, and other countries did the same. In the face of that Germany accepted the Treaty of Versailles. We had done nothing. We had offered a Disarmament Conference which might well make the gods laugh if they desired the destruction of the human race. We had got to realize the extraordinary gravity of the European situation—the pass to which the National Government had brought the world. The worst Foreign Secretary for 200 years had led this country into folly after folly in the international field. They ought to warn the Government that in no circumstances would they break any of the pacts they had made not to go to war. There was only one effective way in which they could make that threat effective...and that was to call a general strike. It was for the people of this country, in answer to that call, to put themselves behind the trade unions and to compel the trade unions to draw up plans immediately for that great resistance.

...we must avoid a competitive raising of wages and conditions in a scarce labour market, which raises prices. ... If we allow prices to rise because of internal costs rising, we shall lose and not gain our overseas markets, or at least not be able to gain new ones in the competition. Therefore, incentives must be strictly limited to increased production so that more earnings mean more production. We cannot in any circumstances afford to pay more for the same or less production. We must await the further raising of the levels of earnings until we can provide the goods upon which those earnings can be spent. In the same way, let me point out, that large profits drawn from industry today are just as inimical because they, too, raise the price levels and, furthermore, they offer an immediate temptation for the demand for greater salaries.

The [Labour] Government's first step will be to call Parliament together at the earliest moment and place before it an Emergency Powers Bill to be passed through in all its stages on the first day. This Bill will be wide enough in its terms to allow all that will be immediately necessary to be done by ministerial orders. These orders must be incapable of challenge in the Courts or in any way except in the House of Commons.