HC Deb 10 December 1964 vol 703 cc1813-4
Q2. Mr. Ridley

asked the Prime Minister whether, in view of recent economic developments, it is still the intention of Her Majesty's Government to carry out the policy contained in the White Paper, "The Economic Situation".

Mr. George Brown

I have been asked to reply.

Yes, Sir.

Mr. Ridley

Is the right hon. Gentleman aware that the Government's economic policy has been shot to pieces? Does he really believe that the Government have consulted the interests of our partners in the European Free Trade Association? Do the Government still maintain that they have rejected any solution of our problems based on stop-go policies after what they have done in the past seven weeks?

Mr. Brown

It was because the hon. Gentleman made exactly that type of speech when he was recently on the Continent that our difficulties have been greater than they should have been.

Mr. Hirst

Is the right hon. Gentleman aware that if the policies to be carried out in the next 50 days are anything like as damaging as those already carried out in the first 50, our economic position cannot hope to recover?

Mr. Brown

The hon. Gentleman should cheer up. We shall be out of this trouble very soon as a result of the Government's policy.

Mr. Heath

Can the acting Prime Minister say whether the lecture delivered yesterday to the American Chamber of Commerce by the First Secretary really represents Government policy? What on earth did he mean by saying, as he was reported as saying, that the letter sent round by the Governor of the Bank of England was the same as that which is always sent round at this time of the year? This was not a Christmas card or a New Year greeting sent round by the Government. Has not the First Secretary looked back and seen that this was exactly the same letter as was sent round in 1961 and 1957, with exactly the same request, phrased in almost exactly the same terms, and that whether he knows it or not he is in fact enforcing the credit squeeze?

Mr. Brown

A lot of midnight oil went into that one, but, unhappily, one premise is wrong. What the right hon. Gentleman hopes I said yesterday I did not say.

Mr. Ridley

Is the First Secretary aware that I have made no speeches on the Continent on economic subjects since the election? Therefore, will he withdraw the statement he made about me earlier?

Hon. Members

Withdraw.

Mr. Brown

The phrase "It is not British but it is good business" is now being rewritten the other way round.

Mr. Heath

Does the right hon. Gentleman agree that the letter which he was discussing yesterday in his speech to the American Chamber of Commerce is the same as was sent round in 1961 and 1957 and is, therefore, the imposition of the credit squeeze? Why, when he is doing something to strengthen confidence in sterling, does he have to deny it?

Mr. Brown

If the right hon. Gentleman had wanted to ask me what I said yesterday, I would, of course, have informed him. Before he asked this question he might have done me the courtesy of having a look at what I said. I repeat that he has got it all wrong.