§ Now I turn to exports. Here, it will be said, we face a buyers' market and other difficulties overseas. To that the answer is that in a competitive world Britain must be competitive; we must keep our prices down. We have had nothing to complain of recently about the cost of imported raw materials; so we must look to our costs at home.
§ The biggest factor in home costs is wages and other incomes. Both sides of industry have a responsibility here which I know they accept, but the issue is too important to be lightly passed over. We still need the continued co-operation of all concerned to see that higher wages and higher profit margins do not push up costs and price us out of our export markets.
§ But some of these markets are difficult, not because of our prices, but because other Governments have felt it necessary to impose restrictions and other obstacles to trade. We understand the reasons for much of this; indeed, we had to take action of this kind ourselves. To break out from these restrictions needs a great international effort. That is why the Commonwealth Economic Conference laid so much stress on a practical and international approach to freer trade and currencies. That is why Her Majesty's Ministers have put so much time and labour and drive into our external commercial and financial policy
§ To this end the Foreign Secretary and I opened discussions with the United States Administration and with O.E.E.C. last month, and at the meeting of O.E.E.C. we announced measures to liberalise a further portion of our trade with Europe. I am sure the whole Committee will be thinking of my right hon. Friend in his illness and will wish him a speedy return to our midst. Our drive will continue to be directed towards the freeing of trade as far as possible from restrictions, and when circumstances are right attaining the convertibility of sterling. But there are clearly difficulties in the way of attaining all our aims quickly. An international effort on this scale must take time to mature. In the United States the new Administration is setting about the problem, but they must have time.
§ We shall get results, but meanwhile we must make the best use of the situation as we find it, and be ready to meet any 49 further changes in the world climate. The international barometer to-day still stands at "changeable weather"; we may hope to see it climb to "fair" but if it drops to "stormy"—a possibility which we must have in mind—we must be ready.