How on earth are the Chancellor and the Governor of the Bank of England, commending the 'Hard ECU' as they strive to, to be taken as serious particip… - Geoffrey Howe

The well-being of the British people and the health of our economy are far more important than any government's commitment to a particular strategy, but to change course now would be fatal to the whole counter-inflation strategy.

Britain's future depends, above all, on mastering inflation. That can be done, as the right hon. Member for Leeds, East (Mr. [Denis] Healey) well knows, only if we bring the money supply under firm control, progressively reduce the rate of monetary growth over the years and pursue the most rigorous restraint on public spending. The supposed alternatives to these policies are a delusion. None of those alternatives would be responsible and none would be sustainable. The action that I have taken today underlines the Government's total and continuing commitment to getting inflation down.

Denis Healey: Can he assure us there is no question of American military intervention as this could only make the situation worse?
Sir Geoffrey Howe: There is no question of that.