5 per cent it is, and I have told the unions that they have all the weapons. We are naked in their presence and we need their co-operation. - James Callaghan

[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?

Jim said he was more depressed as a trade-unionist now about the future of this country than he had been for fifty years. He never believed it would come to this.

We have had a tremendous battle over the past 12 months. Sterling is safe. That battle is won.