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:… - Geoffrey Howe

In this case, the United States had particular reason to consult most closely with those Caribbean countries which had called on it to help resolve the crisis. Nevertheless, their lack of consultation was regrettably less than we would have wished.

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.

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.