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Full Text



Oct '44

WINSTON CHURCHILL, Prime Minister, June 6, 1944.
The Invasion.

OLIVER STANLEY, Secretary of State for the Colonies, June 6, 1944.
The Colonies During and After the War.

HUGH DALTON, President of the Board of Trade, June 7, 1944.
Location of Industry.

ERNEST BEVIN, Minister of Labour, June 21, 1944.
Organizing Full Employment.

OLIVER LYTTELTON, Minister of Production, June 20, 1944.
Mutual Aid.

J. J. LLEWELLIN, Minister of Food, June 9, 1944.
The Food Front.

RICHARD LAW, Minister of State, June 14, 1944.
The Conditions of Freedom.

LORD WOOLTON, Minister of Reconstruction, June 23, 1944.
The Crusade Against Ill-Health.

Vol. II, No. 7 July 1944

NEW YORK 20 .. ... 30 ROCKEFELLER PLAZA . . Circle 6-5100
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r4o. T

Prime Minister
House of Commons, June 6, 1944
The House should, I think, take formal cognizance of the liberation of Rome
by the Allied Armies under the Command of General Alexander, with General
Clark of the United States Service and General Oliver Leese in Command of the
Fifth and Eighth Armies respectively. [Hon. Members: Hear, hear.] This is a
memorable and glorious event, which rewards the intense fighting of the last
five months in Italy. The original landing, made on 22nd January at Anzio,
has, in the end, borne good fruit. In the first place, Hitler was induced to send
to the south of Rome eight or nine divisions which he may well have need of
elsewhere. Secondly, these divisions were repulsed, and their teeth broken, by
the successful resistance of the Anzio bridgehead forces in the important battle
which took place in the middle of February. The losses on both sides were heavy-
the Allies losing about 20,000 men, and the Germans about 25,000 men.
Thereafter, the Anzio bridgehead was considered by the enemy to be impregnable.

The Italian Campaign
Meanwhile, the great re-grouping of the main Army had to take place before
the attacks could be renewed. These attacks were at first unsuccessful, and Cassino
still blocked the advance. On the 11th May, General Alexander began his present
operation and after unceasing and intense fighting by the whole of the Armies,
broke into the enemy's lines and entered the Liri Valley. It is noteworthy that,
counting from right to left, the whole of the Polish, British Empire, French and
United States Forces broke the German lines in front of them by frontal attack.
That has an important bearing on other matters, which I shall come to before I
sit down.
At what was judged the right moment the bridgehead force, which by this
time had reached a total of nearly 150,000 men, fell upon the retreating enemy's
flank and threatened his retreat. The junction of the main Armies with the
bridgehead forces drove the enemy off his principal lines of retreat to the north,
forcing a great part of his army to retire in considerable disorder with heavy losses,
especially in material, through mountainous country. The Allied Forces, with
great rapidity were re-grouped, with special emphasis on their left flank, which
soon deployed against Rome after cutting the important highway. The American
and other Forces of the Fifth Army broke through the enemy's last line and
entered Rome, where the Allied troops have been received with joy by the popu-
lation. This entry and liberation of Rome mean that we shall have the power
to defend it from hostile air attack, and to deliver it from the famine with which
it was threatened. However, General Alexander's prime object has never been
the liberation of Rome, great as are the moral, political and psychological advan-
tages of that episode. The Allied Forces with the Americans in the van, are driving
ahead, northwards, in relentless pursuit of the enemy. The destruction of the
enemy army has been, throughout, the single aim and they are now being engaged
at the same time along the whole length of the line as they attempt to escape to
the north. It is hoped that the 20,000 prisoners already taken will be followed by
further captures in future, and that the condition of the enemy's army, which he
has crowded into southern Italy, will be decisively affected.
It would be futile to attempt to estimate our final gains at the present time.
It is our duty, however, to pay the warmest tribute of gratitude and admiration to
General Alexander for the skill with which he has handled this Army of so many
different States and nations, and for the tenacity and fortitude with which he has

British Speeches of the Day

sustained the long periods when success was denied. In General Clark the United
States Army has found a fighting leader of the highest order and the qualities of
all Allied troops have shone in noble and unjealous rivalry. The great strength of
the air forces at our disposal, as well as the preponderance in armor, has
undoubtedly contributed in a notable and distinctive manner to the successes which
have been achieved. We must await further developments in the Italian theatre
before it is possible to estimate the magnitude or quality of our gains, great and
timely though they certainly are.

The First Landing in France
I have also to announce to the House that during the night and the early hours
of this morning the first of the series of landings in force upon the European
continent has taken place. In this case the liberating assault fell upon the coast
of France. An immense armada of upwards of 4,000 ships, together with several
thousand smaller craft, crossed the Channel. Massed airborne landings have been
successfully effected behind the enemy lines and landings on the beaches are
proceeding at various points at the present time. The fire of the shore batteries
has been largely quelled. The obstacles that were constructed in the sea have
not proved so difficult as was apprehended. The Anglo-American Allies are
sustained by about 11,000 first-line aircraft, which can be drawn upon as may be
needed for the purposes of the battle. I cannot, of course, commit myself to
any particular details. Reports are coming in in rapid succession. So far the
Commanders who are engaged report that everything is proceeding according to
plan. And what a plan! This vast operation is undoubtedly the most complicated
and difficult that has ever occurred. It involves tides, wind, waves, visibility, both
from the air and the sea standpoint, and the combined employment of land, air
and sea forces in the higl-est degree of intimacy and in contact with conditions
which could not and cannot be fully foreseen.
There are already hopes that actual tactical surprise has been attained, and we
hope to furnish the enemy with a succession of surprises during the course of the
fighting. The battle that has now begun will grow constantly in scale and in
intensity for many weeks to come and I shall not attempt to speculate upon its
course. This I may say, however. Complete unity prevails throughout the Allied
Armies. There is a brotherhood in arms between us and our friends of the United
States. There is complete confidence in the supreme commander, General Eisen-
hower, and his lieutenants, and also in the commander of the Expeditionary
Force, General Montgomery. The ardor and spirit of the troops, as I saw myself,
embarking in these last few days was splendid to witness. Nothing that equipment,
science or forethought could do has been neglected and the whole process of
opening this great new front will be pursued with the utmost resolution both by
the Commanders and by the United States and British Governments whom they
serve. House of Commons Debates]

Secretary of State for the Colonies
House of Commons, June 6, 1944

It is difficult for all of us to bring our minds back from the dramatic statements
which have just been made, and from the thoughts which must be occupying all
our minds, concerning the struggle going on so close to us. But we are dealing

The Colonies During and After the War 3

today with a problem of the greatest importance and one to which, I know, even
under these difficult circumstances, hon. Members will be prepared to give their
attention. . Once again I am in the difficulty which always faces a Colonial
Secretary of being able to deal only with a few of the immense number of
interesting points and questions which hon. Members would want to discuss.
One is under the necessity of omitting many points just as important as those
with which one is able to deal, and all one can do is to leave it to hon. Members
themselves to raise the other matters in which they are interested ....

M. P.s Acquire Firsthand Knowledge
There is one point that we might note since the Debate last year, and that is
that in the twelve months quite a number of hon. Members of all parties have
had an opportunity of visiting the Colonies. I refer particularly to my right hon.
and gallant Friend the Member for Kelvingrove (Lieut.-Colonel Elliot) and my
hon. Friend the Member for Shipley (Mr. Creech Jones), who spent no less than
three months in what, I know, was an arduous, what I believe was an interesting,
and what I hope will prove to have been a successful, visit to West Africa. Four
hon. Members have also been to the West Indies. It is satisfactory that even that
small number should be able to go in wartime. I hope that when easier days return
with peace, this precedent will be followed by many and that ample opportunities
will be given to Members to visit the Colonial Empire. As a matter of fact, since
the Debate last year, I, myself, have had the opportunity of making quite an
extended tour. I know how much value that visit was to me, and I can appreciate,
therefore, how much value similar visits would be to other members. Of course,
I recognize with an unselfishness which I hope does me credit, that these visits do
mean more participation by hon. Members in Debates, more questions from
them and very likely more criticism. But I welcome criticism of that kind. It is not
only instructive, but it is constructive. It is exactly the kind of criticism which any
Minister ought to be glad to receive because it does not hamper but really helps
him in his work.

Colonies' Part in the War
I should like to start by saying something about the Colonial war effort, first
because I think it only right when we are thinking today of the part that we are
playing that we should also acknowledge the great part being played by the
Colonial peoples. There is a second reason and that is that, unless we realize the
great extent of the Colonial war effort, the great impact which the war is having
on Colonial territories just as on us here, we lose our sense of proportion with
regard to what it is possible to do in planning for the future. We here, on all
sides of the Committee, are anxious to do what we can in preparing for the future
after the war, but all of us realize that there are limitations in this country during
the war which prevent rapid progress being made, and I would impress upon hon.
Members that similar conditions prevail, sometimes with almost equal intensity in
the Colonial territories, and have the same effect upon planning.
It is not, of course, very easy to give to the Committee a full account of the
military participation of the Colonies. That same security veil which prevents
us knowing the reason why a match at Lord's comes to an end early in the
afternoon, or why there are no cherries in Kent in May, prevents my giving to the
Committee details of the numbers of men from the Colonial territories now serving
in the Armed Forces. But hon. Members do know that their participation in the
war is widespread. There are troops from East Africa in Ceylon, troops from
West Africa in Burma and-to take the smaller places-troops from the Seychelles
and Mauritius in the Middle East, and troops from Cyprus taking part in the

British Speeches of the Day

Italian campaign to which the Prime Minister has just referred. There are large
numbers of Colonial people serving as air crews or ground staffs in the Royal Air
Force of whom a big contingent come from the West Indies, and in a number of
Colonies there are naval units, some of which have already been taken over as
Royal Naval Volunteer Reserves.

Africans in Burma, Fijians in the Solomons
There are, however, one or two interesting stories which I can give to the
Committee about the war services of the Colonial peoples. As hon. Members
already know, the West Africans have been engaged in the last few months in
the Burma operations on the Arakan front, where according to all reports, they
have conducted themselves with a high degree of courage and discipline, not only
in an advance but what, as every hon. Member who has been at war will agree
is much more difficult, in a retreat. But what hon. Members do not yet know is
that there are West Africans as part of the Chindit forces who were landed by
air behind the Japanese lines. It is rather striking to think that a Nigerian from
some of these very primitive territories in Nigeria, which the right hon. and gallant
Member for Kelvingrove has so recently seen, was one of the first troops in the
British Empire to take part in an airborne landing. Something, too, has been
said, I think, about the records of the Fijians in the Solomon Islands. In the old
days, the inhabitants of Fiji held the reputation of being the best fighters in the
Pacific. They have certainly proved themselves to be among the finest jungle
fighters in the world. A Fijian commando has been fighting in the Northern
Solomons, and in one series of patrol clashes against the Japanese, the score was
300 Japanese killed for four Fijians killed and four wounded, which is a striking
testimony to their degree of skill.
I have an even more interesting story to tell about the Solomons. Recently, I
had the opportunity of talking to several members of the Colonial Administrative
Service who stayed behind in the Solomons when those islands were occupied by
the Japanese. All through the Japanese occupation, they had a complete organi-
zation for watching and for passing news out to the High Command. They had to
take to the hills. Their presence was known to the Japanese, because the wireless
transmission could not be concealed. Their stores had to be brought to them by
submarine or dropped in remote places from aeroplanes. Their headquarters were
were always liable to search by the Japanese and to sudden moves. They are able
to tell a series of marvelous stories which testify to their courage, their tenacity
and their adaptability. They had to be able to turn their hands to anything; they
were guerilla leaders, naval officers and, in two cases which must be quite excep-
tional, were temporarily commissioned in the American Marines. The theme of
all their stories is the profound loyalty of the native population in the Solomon
Islands-not just a mere passive loyalty, not merely a failure to betray, but active
help in extremely dangerous operations. One of those officers told me a story of a
Solomon Islander whom he had sent out to see what the Japanese were doing in a
particular village. When the man came back he reported that there was a Japanese
there operating a wireless. The officer was not quite certain from what the man
said whether he had been close enough to see whether it was a wireless or a
telephone, so he sent him back. He returned confirming the fact that it was a
wireless, and as proof that he had been sufficiently close to judge he brought back
the trousers of the Japanese wireless operator, which had been hanging on the
tent pole.
This story of the really courageous loyalty of the inhabitants of the Solomon
Islands takes one's thoughts to another part of Colonial territory which is in the
occupation of the enemy, and that is Malaya. All of us remember the bitter

The Colonies During and After the War

comments which were made with regard to Malaya at the time of the disaster,
comments which led to widespread criticisms of the whole Colonial system. Much
that I have heard since led me to doubt whether those comments were fair or
were true. Personally, I believe that when Malaya is recaptured, when we are able
to get the evidence in full, they will be disproved; but Malaya now is in the
occupation of the enemy, the evidence is not procurable, and final judgment can
bnly be possible after the recapture. Here in the Solomons, however, we have
the first evidence from a place where British territory has been completely recap-
tured-all the evidence is available-and there we find that the full story is not a
story of treachery or indifference, but a story of loyalty and courage, and I believe
the same will be found to be true of Malaya.

A Silly Story
While dealing with this area I hope the Committee will allow me to refer to
a story which appears to have had widespread circulation in the Pacific area. It
certainly had widespread circulation among American troops, it was reproduced
in a Hawaiian newspaper which, I believe, has a big circulation, and has been
reproduced, too, I think, in the United States of America. It is a story in lineal
descent from the story of the last war which all hon. Members will recollect, of
Russian troops going through England. We remember how people used to see
their beards, used to hear them talking Russian and see the snow which they had
left in railway carriages. That story was only silly. The trouble about the story
I am referring to now is that it is not only silly but also harmful. The story is
that the United States of America are being charged for every palm tree which is
destroyed by their troops in the battle to recover our possessions in the Pacific.
All the stories agree on the price-70 dollars a palm tree-but there is some dis-
pute as to who is making the claim. Some say that it is a great soap-making firm.
Others say it is His Majesty's Government. I hope the Committee will allow me
to waste their time just long enough to say that, of course, there is not one word
of truth in such a fantastic story. No claim has been made, or ever will be made,
on this account to the United States either by His Majesty's Government and still
less by any individual or individuals. I hope this will have some effect in putting
a stop to this ridiculous story, a story so silly that it could only have been repeated
by knaves and believed by fools. Unfortunately, there are enough of both in the
world to do quite a lot of harm.
Finally, with regard to military service, I would like to say one word about
the Caribbean soldiers. Owing to the geographical position of the West Indies,
it is difficult for them to participate in active service to the same extent that, say,
East or West Africa have done. Of course, many individuals have left the West
Indies and volunteered to come over here either to join the Army or the R.A.F.,
or to work in industry, but a great desire has been expressed in the West Indies
that its whole youth should have an opportunity of active service. Thanks largely
to the help and co-operation of my right hon. Friend the Secretary of State for War
that has now been arranged. A battalion of the Caribbean regiment has left its
own home area en route for a military theatre, and I am sure the whole Commit-
tee will wish them success in their enterprise.

Colonial War Economy
Remarkable as has been the contribution of the Colonies, in man-power, to
actual military service, the demands which have been made on them for production
have been equally big. The advent and progress of the war have had two effects
upon Colonial life. The first was that the Colonies were obliged, owing to the

British Speeches of the Day

difficulty of obtaining many supplies on which they had previously relied for a
great part of the feeding of their own population, to institute, to a very greatly
increased extent, the growing of their own food. At the same time the loss of the
Far East has forced the United Nations to find substitutes elsewhere for the essen-
tial materials we lost in those areas. Rubber, for instance, was one of the key
commodities, and we have had to try, as far as we can, to make up the loss, not
only by speeding up the production in a natural rubber-producing country like
Ceylon, but by bringing back to life old plantations in other Colonies in East and
West Africa which had been allowed to go out of production years ago when com-
petition from the Far East first became acute, and even, as I am sure that the hon.
Member for Shipley (Mr. Creech Jones) probably saw in his tour of Nigeria, to
spend a great deal of time, trouble and effort in getting supplies of wild rubber
from the various Colonies.
With regard to tin, we have, of course, had to put increased pressure upon
Nigeria. Pyrethrum, that most valuable base of all insecticides, of which 85 per
cent came from the areas now occupied by Japan, has had to be developed in Kenya.
In regard to sisal, the only substitute for Manila hemp used for naval cording, we
have, again, had to put immense pressure upon East Africa to make up the loss.
In addition, there has been the necessity to grow more of our own food and to
make up some of the losses we suffered in the Far East and, with certain excep-
tions, the demand for the Colonies' own normal production has not been relaxed.
Sugar is just as vital to us-even more vital since the loss of Java-than it was
before the war. The oil products-palm kernels and ground nuts from West
Africa now form over 40 per cent of the fat ration of people in this country. The
result is that there has been the impact on Colonial economies of this greatly
increased and varied demand. It has meant a tremendous call for labor and, above
all, it has meant a tremendous call for organization. The hon. Member for Shipley
will know the number of cases in which men who would normally be doing ad-
ministrative work, who would have been district commissioners, have had to be
taken off that work to become labor controllers and leaders of a drive for ground
nuts or palm oil and all this, of course, has increased the pressure upon already
depleted staffs. It is against that background of the great efforts that the Colonial
territories are making in the war and the great strain that has been put upon their
administration and manpower that I want the Committee now to turn to the other
side of the picture-to review the planned possibilities for development when the
war comes to an end.

The Three Shortages
In my Estimates speech last year, I dealt very fully with the political side. I
tried in that speech to explain our objectives and I gave numerous and, I think,
impressive instances of the advance which had been made during the last year.
That advance still continues, but political advance spread over this enormous range
of territories is not always spectacular. It will not, and should not, always progress
by dramatic bounds from one constitution to another. The fact that a municipal
council is now elected instead of nominated, that the powers of native authorities
in certain areas have been extended, and that in some Colonies the franchise has
been lowered, is just as much an important part in the advance towards self-govern-
ment as the more spectacular events such as the Jamaica Constitution to which I
referred last year. If I do not spend so much time this year on the political stage,
it is not that I minimize its importance. However interested we may be in social
and economic development, all of us must and will recognize the natural urge of
humans to share in their own government, an urge which is always present, but
which has been greatly stimulated by the war and the activity of thought and enter-
prise which war creates.


The Colonies During and After the War 7

If I deal, as I say, less fully with the subject this year than I did last year,
it is not because I minimize its importance, but because I want to give more of my
limited time to the plans on the social and economic side. You cannot really dis-
sociate the social and economic side from the political side. An improved health
service, a scientific agriculture and the creation of new industries are just as essential
to real self-government as any new constitution or extended franchise. I was given
the opportunity by the hon. Member for Dewsbury (Mr. Riley) in a Debate on
the Adjournment last month, to deal with some of the difficulties which stand in
the way of the immediate development of the scheme. I tried to point out that
the impact of the war on the Colonies is, in its effect, not noticeably less than it is
on this country, and that it is impossible to progress more quickly in the Colonies
than we find it possible to progress here. I referred to the three shortages which
the war had caused-the shortage of material, of labor and of technical staffs. I
pointed out that we did not necessarily get all three shortages in every Colony. In
the West Indies, for instance, there was a great shortage of imported materials
and technical staffs, but not, as in some of the Colonies, any shortage of labor.
Unfortunately the hon. Gentleman the Member for Seaham (Mr. Shinwell),
whose words are hung upon by Members here and reverberate outside, is able not
only to propagate great and beneficial new ideas, but also to spread a fallacy. The
little bit he threw into his great Empire speech, in which he said he could not
really believe the story of shortages holding back development when he read of
labor in the West Indies going to the United States, ignored the fact that the real
shortage in the West Indies is not labor, but imported material. That fallacy has
been very difficult to kill. I tried to kill it in the Debate last month, but I was
very disappointed when I went to a meeting last week and heard it repeated once
again. I ask hon. Members to believe-and I am sure they will-that this is not
just a smoke screen we are trying to put up to prevent these things being done.
Frankly, we think it is the opportunity of our lives and we will welcome any
suggestion from hon. Members about how, in view of these difficulties, we can
speed up development. But hon. Members, in their turn, I hope will admit that
difficulties do really exist.

Colonial Development and Welfare Act
In spite of these difficulties, however, there has been quite a substantial advance.
The actual expenditure under the Colonial Development and Welfare Act last
year was four times that of the year before. Since the Debate in May, a White
Paper* has been published showing the schemes approved under the Act for last
year, which now total over 4,000,000, or not so very far below the 5,000,000
a year allowed under the present scheme. That White Paper, I may interject, does
give a very interesting list of various projects which is quite well worth studying
by hon. Members. I would like to make just one other point. We are beginning
to fall into the idea that the Colonial Development and Welfare Act is the only
source from which expenditure on social services in the Colonies can and does
come, and to measure the expenditure of the Colonial Empire on the social services
by the amount which is spent under that Act.
I need not point out to hon. Members, of course, that the whole idea of that
Act is that the money under it shall not be in substitution of normal expenditure
by the Colonies, but in addition to it. As a matter of fact, as a result of the war,
many of the Colonies have had improved revenues. They have had better markets
and higher prices for their main exports, and the necessity for higher taxation in
order to deal with the danger of inflation has given many of them greatly in-
creased revenue. Therefore, in many Colonies, quite apart from the work of the
Cmd. 6532.

8 British Speeches of the Day

Colonial Development and Welfare Act, there has been, and is, a continued in-
creased expenditure upon social services. I will not weary the Committee by quoting
a large number of examples, but one is that in Northern Rhodesia, since 1939,
the expenditure on African education has gone up from 42,000 to 128,000, or
trebled itself in that time. Of course the increased expenditure of Colonial Govern-
ments meets the same difficulty as expenditure from the Colonial Development and
Welfare Act to which I have referred. They have not always been able to spend
their increased revenues on improved social services. That means that they are
amassing surpluses and that in several Colonies there will be substantial balances
available after the war for expenditure on development. Therefore, they have the
three channels for expenditure on social services-the normal revenues of the
Colonies which are expanding, the balances which the Colonies themselves are
building up, and the assistance which comes from the Colonial Development and
Welfare Act.

Three Principles for the Post-War Period
I feel that the really important thing, apart from pressing on as hard as we
can with the execution of what schemes are practicable, is that we should be ready
for the post-war period. We should be ready for the time when these limitations
will disappear, not suddenly, of course, but gradually as things improve. What we
shall want by that time will be not just general ideas, but actual plans c.ipable of
being put into effect immediately. This is necessary not only from the point of
view of the development of the Colonies. It is essential for the demobilization
S period, as a means of reabsorbing into civilian life the many hundreds of thousands
of Colonial people who are now in the Forces. I have during the last year tried
to set up and get working the necessary machinery to insure that that planning is
going on in all the Colonial territories. There are certain principles v.hich we
have to have in mind with regard to this planning. The first, I should say, is that
there need not be uniformity between Colonies, and it is not for us to insist that
every Colony should try to do exactly the same thing. There must be co-operation
between them and an avoidance of overlapping. The second principle is that de-
tailed planning must be done on the spot. On practical grounds it cannot be done
from London. We have to remember that these people are growing into nation-
hood, and they are entitled to plan for themselves. We cannot impose on them
in that way, although we may advise and assist with plans drawn up in London.
The principle is, therefore, that the planning should be done on the spot and that
here in the center we are entitled to supervise the plans to make certain that there
is no one-sided development and that in a particular Colony not too much attention
is being paid to one branch at the expense of another; or, as between one Colony
and another, one which has a more active driving force at the head is not going
further ahead than one which is more supine.
The third principle is that there is need for new organs. We are asking
Colonial Governments to take an interest in things which before the war were
considered largely outside their concern. There was very little machinery before
the war for economic planning or the encouragement of industry, and that is a
S deficiency we have had to fill. In discussing this machinery, I would like hon.
Members to realize that it is of recent growth. For a long time in the Colonies,
as here, the instructions were that all official work was to be centered on the war
effort. Only comparatively recently-for El Alamein, the turning point of the
war, is still only 18 months ago-has it been possible to relax that and to give
encouragement to provide time to planning of peacetime development. Even
though that encouragement is now given, it is still against the background of the
additional war work and the depleted staffs to which I have already called attention.

The Colonies During and After the War

Machinery for Peacetime Development
The basis of the planning machinery which I have tried to set up is, first of all,
a Colony Development Committee. That is now in force in nearly all the big
Colonies, and it is by far the most important organ of planning. Its make-up must
vary in each Colony, but there are certain desiderata which I have laid down. The
committee must include the heads of the various Departments, because they are
the people who will put up the detailed planning, it may be of health services or
of agriculture. It must also include a number of unofficial people because not only
will they have much to contribute, but we have to carry them with us in schemes
for the development of their own country. Finally, and to this I attach the greatest
importance, there must be one senior man, whether he is an official or a man
brought in from outside, with nothing else to do. It is no good having on a com-
mittee extremely busy men who have a great deal to do in their day-to-day work.
We must have some man whose only job is development and whose only interest
is to follow it through ....
I said either a permanent official or, as in some cases, experts from outside.
The second point is that we want these plans to be comprehensive and long-term
-real five-or-ten-year plans covering the whole development of the Colonies, and
not just a new hospital here and a new road there. If there is something immedi-
ately practicable, they are at liberty to put it up for immediate approval, but I do
want to have as a result of these committees general comprehensive schemes, how-
ever long they will take to put into effect, so that each bit of work that is done
fits into the general picture . .
In most Colonies it is a social and economic committee and it deals with general
expansion on both sides. I do not think that in a Colony we can really separate
the two. In nearly every Colony the biggest economic plan you can make is the
improvement of agriculture, and in any plan for agriculture an improvement in
education and health must be one of the most vital factors. Therefore, we have
adopted the plan that it is the same committee that surveys the whole field. In
many Colonies, in order to meet the difficulties of economic planning, we have
tried to provide experts from outside to assist and advise.

Regional Co-operation
I did not use the word "industrial," but I will now, because it really leads me
on to the next point, that is the necessity, when we have the Colonial planning
unit, to have some form of regional co-operation. That is necessary for those
problems which really transcend the boundaries of one particular Colony. It is
particularly necessary in the . setting up of secondary industries, in order to
prevent overlapping. There may be room in one region for a particular industry
and there might be a market in the country capable of sustaining a plant of eco-
nomic size. If, however, we found each of three or four colonies in the region
saying, "We are going to set up that industry to serve the market of the whole
region," we would get hopeless overlapping. There must, therefore, be some form
of regional co-operation to prevent overlapping of that kind. ....
The great example 'we have had up to now of this machinery for regional
co-operation is the Stockdale Commission. We have discussed that in the House
and the Committee is familiar with it. What I want to emphasize is that what is
suitable for the West Indies, a number of small Colonies, with small technical
staffs, is not necessarily suitable for regions containing bigger Colonies with bigger
and more highly trained staffs and perhaps, therefore, more technically skilled
advice already available to them. In West Africa we have already available as the

British Speeches of the Day

machinery for regional co-operation the Civil Members Committee, that is, the
Governors under the Chairmanship of Lord Swinton, with, of course, a permanent
secretariat. We have adopted the plan of attaching to Lord Swinton's staff experts
who will be available to the Colonial Governors to supplement their own resources.
For instance, we have appointed Professor Noel Hall as development adviser.
In Professor Hall, whose record as an economist and whose war work in connection
with the Ministry of Economic Warfare members of the Committee are acquainted,
the Governors will have at their disposal an expert on the wider questions of
economic development, the trend of world markets and the chances of new pro-
duction. We have also attached another specialist, a town planning adviser, Major
Maxwell Fry, who will be able to advise Colonial Governments, not only on town
planning, but on what everybody who has been to the Colonies will agree is most
important, namely design. I wish we could get some better designs for houses
of all descriptions in the Colonies than some of the examples we now see. In
Central Africa, that is, in Nyasaland and Northern Rhodesia, we are trying to
get this close co-operation by appointing the same development adviser to both
Colonies. Mr. J. C. Clay will be joint adviser for Nyasaland and Northern Rhode-
sia. In East Africa we have a Governors' Conference with its secretariat which calls
the conferences on technical matters. In addition, they have set up an East African
Industrial Council, whose business it is to prevent overlapping in the plans for the
development of secondary industries . .
I would add one word about the Pacific, where, alas, the most important of
the British territories are still in enemy occupation. There, I am afraid, there can
be no question at the present moment of planning development, but at least, the
Committee will want to know that we are planning for reconstruction. The diffi-
culties are naturally much greater than in other Colonies, and we can have no idea
what the conditions will be when finally we re-occupy; but there are already, under
the War Office, and largely recruited from the Colonial service, staffs who are
preparing plans on such information as they have got, for the reconstruction of
those areas upon their recapture.

Function of the Secretary of State
I have dealt with planning in the Colonies and with co-operation in the re-
gions. The third point is the part of the Colonial Office. I do not think that any
Secretary of State can delegate his central responsibility to any board or council.
He is responsible for the Colonies to the House of Commons, and he alone can
discharge that responsibility. Obviously, in doing so, he must have, and he does
have, the advice of the proper expert opinion. We have now at the Colonial Office
a very full system of advisory committees with a membership-as I think the hon.
Member for Shipley will agree, since he is a member of one of them--of the
highest caliber. One of the most remarkable things is the response which I have
had to invitations to serve on committees or commissions relating to the Colonies.
I have asked people of the highest eminence in their professions and with many
other calls on their time, and in almost every case I have had an enthusiastic re-
sponse. It shows the immense interest there is in Colonial development and the
realization of its tremendous importance in the future.
As I see it, I have as Secretary of State, two real functions with regard to this
Colonial development. The first is, that I should stimulate and assist the formula-
tion of plans, and in that task I can be helped, and am helped, by reports and
investigations on general lines by those various committees. One of the best
examples is the report of the education committee on mass education.* It makes
Mass Education in African Society, Colonial Office.

The Colonies During and After the War

no pretence to lay down detailed plans for a particular Colony. That must be done
in the Colony itself. It tries to set out the broad principles and to urge the broad
necessities, as both a stimulation and an assistance to the individual Colony to
make its own individual plan. Secondly, apart from stimulation and apart from
the routine function imposed by the White Paper of checking details and satisfying
myself of the financial aspect of particular plans under the Colonial Development
and Welfare Act, my duty seems to be to make certain that there is no one-sided
development, and that the idiosyncrasies of people in a particular Colony who are
more interested in health, perhaps, than they are in industrial organization, shall
be corrected, and a proper level maintained; and, above all, that energy in one
Colony or lethargy in another shall not produce disparity between the development
plans of the two.
As a result of this machinery, I hope in time to get full planning, covering
all aspects of these Colonies for a considerable period ahead. When I get it, I
shall have some measure of the expenditure involved. My own belief, which I have
never concealed, is that the 5,000,000 a year under the Colonial Development
and Welfare Act will he quite inadequate for the needs which these plans will
disclose, but when I have got those plans I, or my successor, will be in a position
to put before the Government of the day and the House of Commons of the day
what the real needs of the Colonies are, and it will be for the House of the day
to decide. Needless to say, I believe it is essential that they should meet the needs
of the Colonies fully and generously. ...
I do not want to exaggerate the progress that has been made. There is a real
shortage of staff-I am sure that the hon. Member for Shipley will bear me out
in that statement-and of technical assistance. I know how often I am not able
to* fulfil the requests of the Colonies for particular individuals with particular
knowledge to do a certain aspect of planning work; but still, progress is being
made. Certain plans have already been published. I believe that the one relating
to Kenya is in the Library. That for Gambia, an extremely interesting document,
was published locally, but I am not sure whether it has been published here. We
will press on with this. I am doing so and I have the fullest support of all the
Colonial Governors. I can assure the House that every Governor I have talked
to-I have had an opportunity of personal discussion with 18 Governors in the
last year, either in their own Colonies or over here-regards this time as a golden
opportunity. Not always being certain of what future Parliaments may bring, they
are only too anxious to push on with their planning policies, and to "cash in" on
the present good will. I tell them that they need have no fear, that the interest of
Parliament is now fully aroused, that the normal changes of election adventure or
misadventure will make no difference, and that Parliament is determined to im-
plement the policy which is now started.

There are two most important subjects which I must leave for another day.
We are discussing, Colonial Affairs under great difficulties today and I hope that
hon. Members will remember that. If hon. Members feel, as I do, that this sub-
ject of the Colonies is worth at least two days' Debate later in the Session, one of
the questions which obviously needs full treatment when that time comes is the
question of research. The Colonial Development and Welfare Act not only pro-
vided for development, but for research. There have been a number of interesting
developments, as will be seen in the second Report of the Hailey Committee, which
will be issued as a White Paper.* I am also issuing as a White Paper the report
Cmd. 6535.

British Speeches of the Day

of the Colonial Products Research Council.* It contains some very interesting
material. I think we might also discuss before very long what is quite a novel
departure. Before the war there was no central office or body for research in the
Colonies at all. A great deal was done in the Colonies themselves, but it was done
with very little co-operation, and the result was overlapping and gaps, and we were
not always in a position to make the fullest use of our material. I would certainly
welcome the opinion of hon. Members of the very elaborate plans which, thanks
to Lord Hailey and his colleagues, are now being laid down.

The Colonial Medical Service
The second point which might be discussed when there is time is the whole
question of medical policy. Last year we discussed education at considerable length;
medical policy is its twin pillar in the new Colonial foundation. There is just one
question on the medical side to which I must refer today, but I am in this difficulty:
I want to refer to a speech which was made by the hon. Member for Rochdale
(Dr. Morgan), who is not in his place. I confess I thought he was so interested
in Colonial development that it never struck me that he would not be in his place.
Therefore, I never gave him any notice; but I think a wise compromise is that I
should relate the facts and postpone the comments which otherwise I should have
felt myself entitled to make. The hon. Member, speaking in quite another Debate
-a Debate, as a matter of fact, on the National Health Service-without any
warning to me and for no reason at all that I can see and certainly for no reason
that he gave, suddenly told the House:
"I can tell hon. Members that the Colonial Medical Service is a disgrace."
Well, of course, we all know the hon. Member for Rochdale. He, I always
think, is rather like his famous medical predecessor, Dr. Jekyll. At times he offers
quite cogent and constructive suggestions, but there are intervals when his inter-
jections are, to say the least of it, irrelevant and irresponsible. This occasion was
a case with the hon. Member, I would say, of the Hyde side out. Words spoken
in this Chamber go out to an immensely wide circle. His remarks went out with
no explanation or justification, and they caused, as I know, great bitterness of
feeling among many people who are themselves affected in this matter. I want to
say categorically, and I hope subsequent speakers will feel prepared to support me,
that there is no justification whatsoever for a statement of this kind. The Colonial
Medical Service has had many difficulties to grapple with and it has often been
shorthanded and short of funds, but that is not their fault. It is the fault of the
Administration, of the Colonial Office, of the Government possibly and even of
Parliament itself, but for the Members of the Colonial Medical Service I have
nothing but admiration and gratitude for their self-sacrificing efforts on behalf
of the Colonial territories. ....
In conclusion, I do emphasize the need, if we are to achieve the objects which
the whole of this Committee have in view, of real partnership between ourselves
and the Colonies. We shall succeed only if we work together. On the one side,
it is true that, however enterprising and enthusiastic may be the people of the
Colonies, they cannot succeed without' our help, whether that help is financial or
technical. Equally, however elaborate the machinery, however comprehensive the
plans, or however generous the finance, these plans can only be made to live by the
enthusiasm and sense of service among the people of the Colonies themselves. I
am firmly convinced that there is, on both sides, enough good will and common
purpose, to build a partnership which will endure and prosper.

[House of Common Debates]

* Cmd. 6529.

Location of Industry

President of the Board of Trade
House of Commons, June 7, 1944
I have said that we are not concerned today with the whole of the White
Paper.* I propose to speak about that section which begins in Chapter III on
page 10, "The Balanced Distribution of Industry and Labour." and the proposals
of the Government which are set out in paragraphs 20-30. I propose to defena
the proposals, for which I am jointly responsible with my colleagues. The prin-
cipal proposals which I desire to submit to the Committee, and to get their views
upon, are those for securing that the Special Areas, or the Distressed Areas as we
called them before the war, shall in future be removed from the map, and that
Development Areas, as I myself have christened them, are properly developed by
industrial reinforcements and additional developments, and are duly diversified as
regards their industrial composition, so that they are no longer left dependent,
as they have been in the past, on one or two or a small number of industries, like
coal, shipbuilding, iron and steel, and so on.
The Government's view is that in order to achieve full employment in these
areas, as well as in the rest of the country, it is necessary to proceed along three
lines of approach. The first is to do whatever we can to assist the basic prosperity
and the full employment afforded by those industries on which these areas par-
ticularly depend. I do not speak of that today, because that is not the location of
industry, but anything we can do to assist the coal, the shipbuilding, the iron and
steel and other industries to achieve full employment, each in its own field, will
help us in this problem. In the second place, it is clear that the general policy of
the Government to maintain the purchasing power of the community will have
beneficial effects throughout the country, including these areas which we are con-
sidering; but that is general financial policy and I am not speaking of that today.

How to Influence Location of Industry
What I wish to direct attention to is the third line of attack, intended by the
Government, and found in Paragraph 25 of the White Paper:
"By so influencing the location of new enterprises as to diversify the industrial
composition of areas which are particularly vulnerable to unemployment."
That is the essence of the whole matter, and it is upon that and upon me
measures designed to achieve it, that I suggest the Committee should focus their
attention. In Paragraph 26 are set out a number of separate proposals, and I will
briefly summarize them and comment upon them. Here I may perhaps, make a
rather obvious point. When we talk about "the location of industry" unfortunately,
for good or ill, most of our industry is located already. It is only in the field of
the construction of new factories, or extensions to existing factories, that the
Government can influence the location of industry at all. Existing buildings, until
they either fall down or become obsolescent, must remain located where they are
now. The power of influencing location is confined to new factories and exten-
sions, and the Government in future will expect industrialists who have any im-
portant schemes in mind-I am not now talking of small extensions to factories,
but of large extensions or the erection of new buildings-to let us know before-
hand what they propose. I hasten to add that so far we have not been disappointed
Employment Policy, Cmd. 6527.

British Speeches of the Day

and that industrialists are accepting this new attitude of the Government. The
Government will expect industrialists to come and discuss in a friendly way with
them what they intend, and the Government will be able in many directions to
offer advice, guidance and suggestions as to the future location of their in-
dustries. . .
The Government will expect them to do it, and, if they do not do it, the
Government will take other measures. I wanted to put it diplomatically. Indus-
trialists will in future be required to tell the Government what they intend to do
and to discuss it with them. What is stated in the White Paper can be read by
any hon. Member. In the future the Government are going to take permanent
power to prohibit the establishment of a new factory in any district where they
consider that serious disadvantage would arise from further industrial develop-
ment there. That power we have now. We have it under two heads: in regard to
small areas we have it under the Town and Country Planning Powers, and par-
ticularly under the Act of 1943. In addition we have powers through industrial
building permits and of those I shall speak later. No industrialist can build a
factory today, or make extensions without getting an industrial building permit
which is granted by the Ministry of Works on the advice of the Board of Trade.
Therefore, we have now this power which the Barlow Report recommended we
should take. I will say more on the Barlow Report in a moment, but that will
come in more conveniently later. On the other hand, when industrialists consult
in a friendly manner with the Government as to their future plans the Govern-
ment will be able to use their influence, which is of many kinds, to steer new
factory development into the areas where, on a broad view of the national interest,
new industrial development should take place. That is a most essential power
which, in the past, has been lacking.
Let me add this in relation to Defense. In future we must never allow an area
which is essential to the defense of the country to fall into a state of decay, misery
and mass unemployment, an area on which we should depend in the event of
further threats to our security. I refer to areas upon which we are dependent for
shipbuilding, munition making, or iron and steel, or for coal, which is a funda-
mental munition both of peace and war. We must never allow such areas again to
fall into a state of decay, unemployment and depression. It is stated in the White
Paper that the Government, in deciding to which areas to steer new factory develop-
ments, will take account not only of industrial and social but also of strategic and
defense considerations.

Arms Factories
Let me now run over briefly the further means by which the Government
intend to assist these Development Areas. It is the intention of the Government
that factories engaged in arms production in the Development Areas, where this
arms production will be required as part of the permanent defense arrangements
of the country, shall, so far as that is practicable, continue to produce munitions
after the war. evidently how much can be done under this head will depend upon
the total armaments program which it is necessary in the circumstances at the end
of the war to set on foot and to carry on as a permanent part of the defense of
the country; but, so far as it is practicable, we shall keep arms factories now in
the Development Areas working to full capacity. I am not talking of keeping them
on a care and maintenance basis or of their working only to partial capacity, but,
in so.far as they can be kept working to full capacity as part of the permanent
program of arms production, a preference will be given by the Government to
these areas in the planning of post-war arms production. Where, on the other hand
-and this is important-it is clear that an arms factory ip a Development Area

Location of Industry

will not be required as part of the post-war arms production program, then the
sooner it is released from the arms production the better. The more quickly it can
be turned over to production for civilian purposes, ahead of comparable arms
factories in other areas, where the danger of unemployment is less, the better it
will be not merely for that Development Area but for the country as a whole.
Therefore, in summary, our policy with regard to arms factories in Development
Areas, in so far as they can be embodied in the arms production program, is to
give a preference to those areas, and otherwise to give them the quickest possible
release in order to enable them to switch over to production for civilian
purposes. . .
For security reasons I shall not mention the names of factories in any particular
places and I hope that hon. Members will recognize the wisdom of that. This is
not the time when we should parade the names of factories, particularly of new
buildings, which would be of as much interest to the enemy as to ourselves, and
therefore, I ask leave to be excused from saying anything about particular places....

Control of Industrial Building
The next point to which I wish to direct attention concerns the Industrial
Building Permits. So far as new building is concerned,
"To the extent that existing factory buildings, are insufficient to secure a proper
balance of industry in the Development Areas the Government will give priority to
these areas in the grant of licenses for the building of new factories and extensions
of existing factories."
That will be found in Sub-section (c) of Paragraph 26 on Page 12 of the
White Paper. I repeat what I said on 8th December, that this is the most power-
ful lever which the Government dispose of with regard to the future location of
industry-that no new factory can be established without a license from the
Government. We have a proposal under (d) regarding factory premises for
smaller firms. This relates to the trading estates. The Government will continue
the policy of erecting in Development Areas factories in individual or collective
units for sale or lease. The trading estates were one of the developments of the
inter-war period. In my view they were never carried as far as they should have
been, but they afford great advantages, particularly to small men who do not want
to sink a large part of their capital in bricks and mortar. The Government have
put up in different parts of the country trading estates of varying sizes in which
standard factories, modern, well-designed, well-lighted, have been built, and into
those factories a number of new businesses have gone, and it is our intention that
there shall be more trading estates in those areas, and more widely-scattered trading
estates. So far the tendency has been to have one for each area, but we do not
think that is enough, and we shall aim at a larger number and a wider dispersion
of trading estates.
References are also made to the placing of Government contracts in those areas
and to financial assistance for new businesses establishing themselves there. I need
not dwell more on that at this stage. Detailed particulars of the financial assistance
and the manner in which it will be furnished will be given to Parliament later.
These are at present under discussion between my right hon. Friend the Chancellor
of the Exchequer and certain of my colleagues and myself. It would be premature
at the moment to say anything further on this matter. .. Perhaps that can be
debated when we take the White Paper as a whole. But I would leave no doubt
in my hon. Friend's mind that this is a specific proposal for Government assistance
for firms which show good prospects on a commercial basis and are set up in
Development Areas. That does not mean that they will be set up at the expense

British Speeches of the Day

of other people, and no one would think that, unless a very old-fashioned, pessi-
mistic and restrictionist view of the position were taken. We have all, I hope, gone
beyond that now.

Barlow Commission's Divided Opinions
At this stage I wish to say a few words about the Barlow Commission's Report
because they reported in the early days of this war, and there has been much
discussion about their various proposals. I want to say, briefly, what the Govern-
ment's attitude is towards the Barlow Report, but, first, I would like to pay my
tribute to the work done by that Commission. They produced a grea: deal of
very valuable statistical information and drew attention not merely to the narrow
economic, but to the wider social and strategical, considerations in regard to the
distribution of industry, and they made a valuable contribution to national thought
on this matter. The Government accept-I use my words carefully here--the main
ideas of the Barlow Report, but we shall apply these ideas rather differently from
the manner suggested in that Report, for a very obvious reason. We are now
dealing with quite different conditions from those which the Barlow Commission
had to consider. They wrote their report in time of peace, although in the shadow
of an impending war. We have now to act in time of war, though with a prospect
of peace and post-war conditions. We have at our disposal today far more powerful
weapons than the Barlow Commission could have contemplated would have been
in the hands of the Government, for influencing industrial location. More than
this, we are now working within a widely different industrial pattern from that
which the Barlow Commission had before them, inasmuch as a large number of
Government factories have been built in various parts of the country since they
reported, and these factories have considerably altered the balance of industry in
the different areas ....
I will indicate to the Committee in a moment some of the ideas contained in
the Barlow Report which the Government accept and intend to apply. I do not
know how many of my hon. Friends have read the Barlow Report, but some,
perhaps, read it some time ago and have not lately refreshed their minds with it.
Others, no doubt, have read it more lately. The Barlow Report is not a unanimous
Report. There was a majority report by ten of the members and a minority report
by three of the members. Of the majority of ten, three put in a separate note of
reservation; and of the minority of three, one put in a dissentient memorandum-
so that, in truth, it would be right to say that there is not one Barlow Report, but
four. The members were not unanimous, but none the less, there are certain
matters on which they all agree.

Barlow Commission's Points of Agreement
First of all, none of them believed that we had now got the best distribution
of industry and population in the country that was possible. None of them took
so complacent a view as that. In the second place, none of them thought that we
could get the right distribution of industry in the country without continuous and
well-directed Government intervention. There is no comfort in the Barlow
Report-in any section of it-for anyone who thinks that, if you leave things alone,
all will come out for the best. That is rejected by all of them unanimously, what-
ever their other differences. The minority Barlow Report asks for a new Govern-
ment Department to be set up to look after the planning of these matters. The
majority do not ask for a new Government Department; they ask only for the
setting up of a Board. I think the minority were right and the majority wrong.
This new Department has already been created. The Ministry of Town and
Country Planning is a response to the proposal of the minority on that matter,

Location of Industry

and let me here say that my right hon. Friend the Minister of Town and Country
Planning and I, and our staffs-and I say this particularly to the right hon.
Baronet, the Member for South-West Bethnal Green (Sir P. Harris), who raised
this point at Question Time the other day-work very closely together, and I do
not think there is any ground of divergency between his Department and mine as
to what is necessary to be done in this field.
The two main ideas in the Barlow Report were first of all, what is sometimes
called the "decongestion of congested areas"-the spreading out of those very
congested areas over wider areas. The second main idea was the encouragement
of a reasonable balance of industrial development as between the various regions in
the country and the suitable diversification of industry within each region. These
two ideas are accepted by the Government. The first is primarily a matter for the
Minister of Town and Country Planning and he is dealing with it, and could
give account to this Committee of what he is doing in the matter. But that is not
primarily an industrial matter and, therefore, not primarily my concern. The
second point is much more the concern of myself and some of my other right
hon. Friends in the Government. It is the reasonable balance of industrial develop-
ment in the country. How to establish industrial stability and steady employment
is particularly the concern of the Board of Trade and the Ministry of Labour.
The Barlow Report also proposed the imposition of a ban in certain areas. I
have already spoken of that. We have powers to enforce that ban now and we
reserve the right to use those powers, after proper consultation, as I have already
indicated, by declining to give industrial building permits in any particular areas.
These industrial building permits must continue for some time to come. It is idle
for anyone to think that this particular form of Government Regulation can be
swept away over night, or can be swept away when we have merely got the
surrender of Germany. It cannot, perhaps, be swept away even when we have the
surrender of the Japanese enemy also. I would like, as clearly as I can, to put
to the Committee why that must be so. For some time after the war building
labor and materials will be in very short supply in relation to the immense demand
there will be for new buildings of all kinds and, therefore, it is essential that we
should have a national plan and be able to determine priorities in regard to the
use of building labor and materials in the national interest. All over the country
there will be an urgent need for new houses. That will be a predominant need
in the minds of the soldiers returning from the war, and of their wives and
relatives, and of many others, who have been living under cramped and miserable
housing conditions for many years past. All over the country, in rural and urban
areas, in Development Areas and other areas where industry is well diversified now,
there will be an urgent need for new houses.

Location of New Factories
But in many parts of the country there will be no such urgent need for new
industrial development and the question we have to ask ourselves is where, in
what parts of the country, can we justify the use of some of our scarce building
labor and material for-new industrial buildings. I think the answer to that is
pretty clear. Generally speaking, we should, after the war, build new factories
only in regions where there are not enough factories to furnish employment for
the population. In those regions we should build factories as well as houses, but,
elsewhere, where there is sufficient factory accommodation to furnish employment
for the population, there, surely, we should concentrate on the building of houses
and not factories. In those areas where there is sufficient factory accommodation
to employ the population, the problem will be to secure, as munition work falls
off, that in those factories already built and now existing, there shall be other work

British Speeches of the Day

available. The problem there is not to build new factories, but to see that the
existing factories are kept. working at full capacity ....
I am thinking in terms of building factories and houses in the right places.
There will be a great shortage of new houses and, in some areas, of new factories.
That, surely, is clear. There will be a shortage in relation to the demand which
will be urgent and nation-wide . .
I am anxious not to get on to local instances, even in London, because that
would incite all Members to rise and put questions. I have stated in connection
with bans or restrictions on new factory development that that power would be
used by the Government with great care and discretion. The Barlow Report
recommended the prohibition of new factory development in London. We do not
accept that as it stands. We shall consider each case on its merits, but I say,
quite frankly, that London is not one of the areas where there is urgent need for
factory development. The most urgent need is elsewhere. I would add that it is
no solution merely to provide new houses for unemployed people. You must
provide work for these people as well. Therefore, it would be wrong, in areas
where there is need for factory development, to concentrate unduly on the building
of houses and to ignore the need for new industrial buildings. ...

Need for Improved Communications
I want to say a word about communications by road, rail and sea, to and
through these Development Areas. Paragraph 27 is a useful one, to which I would
direct the attention of hon. Members. Reference is made to many ways of stimu-
lating development in those areas and of improving communications, including
docks and harbors, as well as roads and railways. I myself, having studied those
areas in the past in some detail, am convinced that one of the most necessary
measures to be taken to get full employment and prosperity, in the areas of which
we are speaking, is the improvement of communications by road, rail and sea, and
through harbor development, and so on. I am in touch, particularly since this
White Paper has come out, and I have had discussions with, my Noble Friend
the Minister of War Transport, and I am asking him to give special consideration
to these matters. He has promised to do so, and his officials and mine are in
The new bridge across the Severn has already been announced as having a
high priority in the Government's post-war road program-the new road bridge
to be constructed well below Gloucester. I think that will have very great
importance for South Wales and it will be a big new inducement for industries
to settle in South Wales. It will help to break down that isolation which has
necessarily existed in the past, for geographical reasons, between South Wales and
England. This is a very important step forward. I will give my Noble Friend
my full support in pressing on that subject. There are many other developments
in communications, into which I will not go in detail, but I attach very great
importance to them, and the Government will do their utmost to press them
forward. There is also great need to improve communications between South
Wales and the Midlands; there is too much isolation between them. I am not
prepared to discuss the actual lines of roads and so on, but I am discussing with
the Ministry of War Transport methods by which we can improve communications
between South Wales and the Midlands and put each of them upon the other s map.
I will not go further into the details beyond saying that each of the Development
Areas has its own urgent problems for improving communications, and that this
matter must be actively pursued. . .
I would now draw attention to paragraph 28 ... which indicates that the
measures required in order to bring about full employment in the various areas

Location, of Industry

concerned will vary, according to the character of the area, and from time to time.
It is definitely stated here that there can be no final list of Development Areas,
because areas which have regained their prosperity by the aid of the measures
we are contemplating will be able to be removed from the list-and what a happy
day that will be for all those concerned in those areas-while other areas which
we have not thought of in the past, perhaps, as needing special stimulus and
development, will come into the list for economic reasons, perhaps only for a
short time, in order that a stimulus can be provided there. There can be no fixed
and final list. The aim of the Government is to develop any of those Development
Areas which, for the time being, is in need of additional stimulus. The test of
the success of the Government's policy will be that unemployment in any particular
area concerned shall be brought down to whatever is the national level for the
time being, and that it shall not have abnormal unemployment, in excess of the
national average, while that average must be reduced to the very lowest figure
which the general policy of the Government can bring about. It is with this level
that the Development Area will have its unemployment figures compared over a
period of years.

Old Measures Compared with New Proposals
I will now pass on to answer a question which is sometimes asked by some of
my hon. Friends, that is, whether the policy set out in the White Paper is new,
and whether there is anything in this policy which is different from, and better
than, the policy pursued in the Special Areas, policies which achieved not very
much, as compared with our hopes, between the two wars. That question is often
asked. There were, as Chief Commissioners in the special areas, several very able
and devoted men. Sir Malcolm Stewart said many wise, true and forceful things,
and later on Sir George Gillett did his best, in the years before the war. Those
commissioners made appeals to industrialists-"appeals' is the right word-but
they were only able to offer inducements which, to be quite frank, were of no
interest to large firms employing large numbers of people. The inducements they
offered were of more interest to small concerns, particularly on trading estates. In
those years before the war, industrialists used to be able to put up a new factory
anywhere they liked-that is the plain truth-in spite of all the appeals made by
the Commissioners and Ministers in this House . .
That is not the case today, and it will not be the case during the currency of the
powers to which I have been referring. The situation, from that point of view,
is completely changed. I would remind the Committee briefly of the trend of
industrial development in those years during which Special Areas legislation was
operative. I am quoting figures from the Board of Trade Annual Survey in 1936:
551 new factories were built, of which only eight were in the four Special Areas, in
spite of all the appeals that were made; in 1937, there were 541 new factories,
only 17 of which were in the Special Areas, and there were 237 factory extensions
in that year, of which only five were in the Special Areas. ....
I am quoting figures to show that, in fact, the vast majority of these new
factories and extensions to existing factories were made outside the Special Areas,
in spite of the inducements and in spite of the powers under the Special Areas
Act. If I may quote from the Barlow Report a very striking figure, five-sixths of
the new factories established between 1932 and 1936 were in Greater London ...
That was a very bad state of affairs and I am sure that no one will defend the
facts which I am now summarizing. . .
There was a very slight improvement in later years, but the broad trend was for
a new factory development to by-pass the Special Areas altogether. There was a

British Speeches of the Day

tendency for an enormous concentration of new development in the London area,
so that, if there is even now a shortage of factory accommodation in London, that
must be due to the unnecessary entry of new labor to London from Special Areas.
There is a vast difference between the situation between the two wars and now, in
two respects. First, the Government is committed, in this White Paper, to a new
far-reaching policy designed to secure employment not only for the country as a
whole but in these Development Areas also. No Government previously has com-
mitted itself along these lines. In the second place, although I am not going to
mention names, new factories are today being built predominantly in the Develop-
ment Areas. That is where new factory construction is taking place and will
continue to take place predominantly.

Feeding the Lean in Wartime
We are seeking to weave all our new industrial development into a national
pattern. My right hon. Friend the Minister of Production is here, and I wish to
pay a tribute to him for the new policy he was responsible for instituting in 1942.
He instituted it for war reasons, but it has great value also for peace purposes. My
right hon. Friend found in his duties in connection with production for che war,
that there was a very acute shortage of labor in a number of industrial areas in
the Midlands, London and elsewhere, in spite of all the direction of labor that was
taking place under the great powers of my right hon. Friend the Minister of
Labour. Certain areas were becoming congested with war production. There was
an acute shortage of labor. On the other hand there were other areas-again
substantially the old Special Areas, the Development Areas we are now speaking
of-where there was labor available. Therefore my right hon. Friend gradually
instituted a scheme whereby contacts, and such new industrial building as could
be carried out at this time, should be steered towards these areas where there was,
not a surplus, but a less acute shortage, of labor than in the older industrial
regions. . .
The turning of the tide, the change from feeding the fat and starving the lean,
began in 1942. It began for war reasons under the impulse of my right hon.
Friend, and I am paying my tribute to him for that important turning point. We
are now going further along the same road and are going to carry this policy on
into the peace. We are going to continue to steer new factory construction into
areas where it is necessary to furnish employment for the people in those areas.
That is the whole essence of the policy I am defending today in the Committee.
Apart from the reasons you have given, Mr. Williams, for not mentioning
particular places, there is another reason, that of security, why is it undesirable.
I have a list here in order to refresh my own mind, but it would be most undesirable
for me to give names of places where new industrial development has been taking
place under the scheme instituted by my right hon. Friend and myself, as that
would be an indication of suitable targets for what is left of the Luftwaffe. But
I will say this, and I say it with full knowledge of the facts, and with full knowl-
edge of some facts which cannot be made public at present, that there is a steadily
lengthening list of new standard factories, some of which have already been built
and already in production, some of which are going up now on the sites, and
others which have been quite definitely scheduled to go up on other sites. These
standard factories are being built in accordance with the principles I have indicated
to the Committee, of putting the factories in the places where it is most necessary
to furnish a balanced and diversified employment after the war. This is where
war interests and peace interests coincide. My right hon. Friend in the action
he has taken in this matter was thinking of getting the maximum production of
munitions in the shortest possible time, and getting the most effective use of

Organizing Full Employment

available labor and productive capacity. The building of these new standard fac-
tories is part of our war effort. The location of these factories is part of our peace
effort as well, and will have great importance in years to come.
I have no doubt that these modern factories will be fully used after the war.
They are very much more attractive for the purposes of modern industries than a
number of the older factories situated in some of the older industrial areas. I have
no doubt they.will be fully used by industrialists in the future. I shall be working,
or anyone who subsequently holds my office as President of the Board of Trade
will be working, in close association with my right hon. Friend the Minister of
Production or any successor to him, and with my right hon. Friend the Minister
of Labour or any successor to him, in the period when war production is tapering
off, which will be a very delicate and difficult adjustment to make. The President
of the Board of Trade will have to work very closely with the Minister of Labour
and the Minister of Production, as I explained in the Debate on 8th December,
in order to see that, when we get the releases of labor turning over from war
-production to peace production and of industrial capacity turning over from war
production to peace production, we get those releases in those areas and trades
which are most necessary in the national interests, having regard to employment as
a whole, to civilian needs and to the needs of the export trade.
[House of Commons Debates]

Minister of Labour
House of Commons, June 21, 1944
I beg to move,
"That this House takes note of Command Paper No. 6527 on Employment
Policy and welcomes the declaration of His Majesty's Government accepting as one
of their primary aims and responsibilities the maintenance of a high and stable level
of employment after the war."
I think that this Motion is one of the most important that has been debated
in this assembly for many years. It embodies the most important principle that has
come before the House for a very long period. In laying down that it is the
primary responsibility of the Government to maintain a high and stable level of
employment, we are turning our back, finally, on past doctrines and past conceptions
and looking forward with hope to a new era. Unemployment has been the subject
of many Debates in this House. We have had many marches of the unem-
ployed. ...
We have had these marches of hungry men, demonstrating their poverty in a
highly civilized society, during a century in which wealth has accumulated at a rate
unprecedented in the history of the world. From 1886, when the late John Burns
led the London unemployed through Pall Mall, onwards to the Northampton
bootmakers, right down to the miners, between the two wars, we have had this
horrid spectacle of unemployed men, not refusing to work, but asking that society
should so organize itself that work might be provided and their families main-
tained. During that period, all through the end of the nineteenth century and the
first part of the twentieth, there was a tremendous agitation and disturbance. It is
difficult to convince a great many people that, prior to the introduction of the

British Speeches of the Day

employment exchanges and Unemployment Insurance, there was the assumption
that unemployment did not exist to the extent that it did afterwards. It did, but
it was not known. Statistical knowledge was not available, and the public was not
aware of the intense suffering that ensued. But during that period the House of
Commons and the country became conscious, and realized that the State could not
be inactive when faced with the evils arising from mass unemployment.

Eradicating the Evil
If we take the period from the Seventies right up to the outbreak of this
war, we have only had really full employment under three conditions-the making
of armaments for impending war, during war, or on the discovery of more gold
fields and the expansion of credit. On other occasions, unemployment in cycles
has arisen from time to time. The problem became so acute that the State had to
decide to introduce our social services, and an attempt was made, following on the
work, which I am sure the House has been pleased to see honored, even late in
the day, of Sidney Webb and Mrs. Webb in the break-up of the Poor Law, and
the attempt to regularize assistance in its various forms. It was followed by new
measures, which were tried out during the depression. There was a tentative
public works policy, training, transference schemes and, lastly, the Special Areas.
But all these were merely measures to minimize the effect of unemployment, not a
recognition that unemployment was and is a social disease, which must be
eradicated from our social life. The State's job up to this date has been to deal with
the after-effects of the disease, and not to take active measures itself to promote and
maintain economic health. This Motion is an assertion that, while there will still
be difficulties to contend with, and the social services must continue to play their
part, the first consideration must be the way to remove the cause. Having tried
relief in all its forms, we now propose to diagnose, and we hope to cure.
The Government welcome the fact that Parliament is-I hope irrespective of
party, and with widespread agreement-at last facing this problem as a funda-
mental issue. We are indeed grappling with the problem which is uppermost in
the minds of those who are defending the country today, at home, overseas, and
in those bitter fights across the Channel. With my right hon. Friend the Prime
Minister, I had an opportunity of visiting one of our ports and seeing the men
of the 50th Division, among others going aboard ship-gallant men, brave men
with no complaint. They were going off to face this terrific battle, with great
hearts and great courage. The one question they put to me when I went through
their ranks was, "Ernie, when we have done this job for you, are we going back
to the dole?" . It was put to me in that way, because they knew me personally.
They were members of my own union, and I think the sense in which the word,
Ernie, was used, can be understood. Both the Prime Minister and I answered,
"No, you are not." That answer of "No" to those brave men, going aboard those
ships to fight, was an answer which, I hope, will be supported by the House, and
I hope that policy will be directed towards making that answer a fact, not only for
them but for future generations. There is an obligation on all of us to bend our
abilities and our energies to finding the right solution, and an obligation not to
dissipate energy merely in destructive criticism.
The Government have come forward not only with a statement of their
objective, but with an outline of the practical measures for attaining it, which,
with the support of Parliament, they intend to operate with full vigor. I am
convinced that although the Governments may change, and I hope, will change-
I should not like this job forever-any party which faced the people of this
country at a General Election and refused to accept the principle of full employ-
ment, would not be returned to this House. It may be argued that we ought to

Organizing Full Employment

have laid down a carefully:designed blueprint, a plan worked out for every phase
which might conceivably arise. But I suggest that in a changing world, such a
course is impracticable. It is in the attitude of mind, the direction of Government
policy, in the whole of Civil Service, as well as Ministerial support, that this
problem must be faced with a view to adjustments being made, from time to time,
in order to achieve the objective.
The Government do not claim that the White Paper is the final solution of
this problem. The proposals do not raise the question, for instance, of whether
industry will, forever, be privately or publicly owned. Some say that all benefits
of enterprise arise from private industry, and some say they arise from public
ownership. Well, I have seen a bit of both. I have seen enterprise absent from
public ownership and I have seen enterprise completely absent from private
ownership. Therefore, the question of how you can give effect to decisions as to
who will own industry, is not prejudiced by this White Paper. The proposals
of the White Paper will operate, whatever the ownership of industry may be.
There are those who have gone "cock-a-hoop" in certain parts of the Press,
because they think that we who represent the Labour Party in the Coalition Govern-
ment-and I do not apologize for it-and who have made our contribution to this
White Paper, and to all the other great social changes which have come before this
House, have abandoned our principle concerning what we think the right owner-
ship for industry ought to be. What we have tried to do, is to devise a plan which,
however you may decide the ownership of industry by adjustments which may have
to be made, seeks to attain the objective.
The main purpose of the White Paper, and the Motion, is to declare war on
unemployment, and to indicate how our resources should be harnessed for that
purpose. Our monetary system, our commercial agreements, our industrial practices,
indeed, the whole of our national economy, will have applied to them the acid
test-do they produce employment or unemployment? Under the system which
governed our economic life from the industrial revolution onwards, unemployment
and deflation were regarded, in the main, as automatic correctives for the lack of
equilibrium in our financial and economic position. Incidentally, it was just 100
years ago, after the passing of the Corn Law Act and the Bank Act, that that
automatic control was introduced. This meant that industry and human beings had
to adapt themselves to the working of the financial system, instead of the system
being adapted to the needs of the individual. The need for adjustment was thrown
at industry. Revisions of rates of wages or production had to be made from time to
time, very suddenly, and as a result the two sides in industry were set in conflict.
Strikes and lockouts followed, there was lowered production and the national
income was cut down still further. We had, moreover, to buttress the old system
with our social services, as I have already indicated, and directly this was done, the
automatic adjustments which were the basis of the old system could not be made
in the way intended under the doctrines of laissez-faire. The stronger the trade
unions became the more the resistance to change in money wages. With the
buttress of the social services, the weapon of starvation and bankruptcy did not
operate quickly enough, in order to make the old system work, and it was doomed
from the day when the right hon. Gentleman the Member for Carnarvon Bor-
oughs (Mr. Lloyd George) introduced his social services into this House.

The Waste of Energy
It is worth while briefly to call attention to what had to be done between the
two wars, leaving out the temporary boom, and beginning with the time when the
first adjustments under deflation were made. These are very striking figures. From
1922 to 1939 we lost 250,000,000 days of production through strikes and lock-outs

24 British Speeches of the Day

alone. Over 60 per cent of those disputes arose from the need for adjustments due
either to deflation or Gold Standard adjustment, and were outside the control of
industry. Therefore, you set two parties to settle a dispute that someone else has
created which they have no power to settle. That is a most unfortunate situation
to create, and the way things work in arriving at it, is unjust.
I may be forgiven for referring to the General Strike, for which I have never
apologized. What happened? In 1921 there was an adjustment of 40 per cent.
Many of us trade union leaders had to spend three solid years in making new
agreements and, when we had made them, within a year we were thrown out by
121/2 per cent. No industrialist ifi this House will get up and say that you can
adjust industrial efficiency to make up 121/2 per cent in one year. No one can do it,
however he may try. Yet that was thrown at us. And how was it proposed to
deal with it? It was sought to take 2s. 6d. a ton off coal, which meant so much
off steel, and so much off other things, all the way up through industry. And so,
the people who suffered were one class of the community. I make the assertion,
and this is a basic principle of this White Paper, that if either exchange or financial
adjustments had to be made, they must be made over the community as a whole,
not singling out one particular industry or class. [An Hon. Member: And by this
House?] And by this House certainly; but if the House had understood it, we
should never have had the General Strike.
What happened? With all that loss of 250,000,000 days, wages went down,
wages went up, went down again and went up again. What was the net result
at the end? The change in money wages over the whole field of sheltered and
unsheltered industries, which I admit did not suffer equally-the unsheltered
trades suffering more than the sheltered trades and professions-was only five
points. In the 17 years from 1922 to 1939, we had all these fights and struggless
going on throughout the country, with all the consequent difficulties, and the
adjustment was five points. I suggest that the House ought to find some better
remedy than that. There will be strikes, there will be disputes, but they ought
not to be on this issue, which those concerned cannot settle of themselves. In that
same period of 17 years, we had an average of 1,700,000 unemployed, and we
paid out a total of 1,260,000,000 in benefits and unemployment assistance. That
payment helped to keep the consuming market going and, to that extent, probably
prevented unemployment from being worse, but we had not a single pennyworth
of production for all that expenditure. I do not think that that was good for the
country. That state of affairs reflected itself in sickness. There cannot 1'e long
periods of unemployment without malnutrition and a weakening of physique; and
then what did we get? During that period just over a week in every year for
every man and woman in industry was lost owing to sickness. That is a terrific
loss. I do not know how much of it could have been avoided, if there had been
good employment, good health and a reasonable standard of living, but all of
us with experience know how the one thing reacts on the other.
Another very difficult thing arises from this awful business, which I would
ask every hon. Member who has had a reasonable income during all his lifetime
to remember. One of the most demoralizing accompaniments of unemployment is
that people run into debt, which becomes a millstone around their necks. Further,
if there are 1,700,000 unemployed people on an average, there are not far short
of about 6,000,000 people who are suffering from unemployment. The 1,700,000
are not always the same people. Therefore, over a wide area of our social life,
this difficulty is constantly recurring, and the total loss of production and national
income is incalculable. We shall be facing a very difficult situation at the end of
this war, and apart from all sentiment that one might impart into this proposal,
we cannot afford that loss of production this time. It would be unsound economi-

Organizing Full Employment

cally. We shall have to carry the aged on the new pension scheme-good luck to
them. We are raising the school-leaving age in order that our children may have
a better chance in life. That is right, but if we are to do this, then we must employ
every able-bodied man to the full during the best productive part of his life and
under recent conditions.

A Concerted Attack
Therefore, we are dealing with the situation through the education proposals,
the health proposals, the policy of this White Paper and the housing policy, and
I want the House to view it as a concerted attack, and not as being dealt with in
isolation by the White Paper alone. The coming of the State into the arena, full-
blooded, as is now proposed, must mean the writing of a new code of conduct for
industry, a new set of rules in our economic life, which must me respected and
respond to the will of Parliament, if the problem is to be solved. Let me say, in
passing, that no one can look at the astonishing variety of products which we
have produced during this war, without realizing that they are far more varied
than our production in peace, and our technical development has far outstripped
anything we had done previously. What has done it? The pressure of all towards
a common objective-to win victory. I ask the House whether a common objective,
nationally, cannot be adopted to carry us, not only through the transition period,
but into a better economic state after the war . .
In industry there are certain standards that are accepted, and I think a new
code, a wider code and a better code will have to be written for the conduct of
industry generally in this country-a code of conduct and relationships in carrying
on the business of this country. We have made great strides in this war in the way
of Production Committees and all sorts of things. The whole thing is growing
up, but it is really only beginning. It has been introduced under the pressure
of war.
Now I would like to turn to the basic features of the White Paper itself. The
White Paper naturally draws distinctions between the measures proposed for the
aftermath, of war, and those for application later when we have arrived at more
stable conditions. The basic problem of the post-war period will not be the main-
tenance of demand and a high level of employment, but the orderly change-over
of our productive capacity. There will be an enormous demand. It will outstrip
supply for a time. To this I shall refer later. I propose, in the first instance, to
deal with the long-term side and return to the transition period. Under the long-
term proposals, we proceed in chronological order, and it may be an advantage if
they are looked at with minds attuned to a normal period, because that brings out
more clearly the approach to the problem on the whole economic front. It will
be seen in paragraphs 39 and 41 that the Government whole-heartedly accept the
proposition that total expenditure on goods and services must be maintained at
the level necessary to prevent general unemployment. This involves a complete
reversal of the policy of the years between the wars, when it was held that the
onset of industrial depression must be met by cuts in public expenditure and
economies in all directions. Diminished purchasing power was diminished still
further, and the depression thereby accentuated, with results which are only too

Ironing Out the Trade Cycle
In future the Government's policy will be to meet the onset of any depression
at an early stage by expanding and not contracting capital expenditure, and by
raising consumption expenditure and not reducing it, by such means and devices
as may be found most effective. Paragraph 62 declares that this is a policy directed

26 British Speeches of the Day

to the deliberate ironing-out of the slump and the boom, but that it will involve
more economic control by the State than has hitherto been experienced. There are
three elements to be considered in this matter; there is capital expenditure, both
private and public; there is consumption expenditure, both private and public;
and there is the foreign balance. In the case of private investment, one has to admit
that this covers the greater part of the field at the present moment, because it is
the most subject to fluctuations and is, admittedly the most difficult to control.
Various devices, such as variations of interest rates and that kind of thing, have
some effect, but we cannot rely on that, because the policy of the Government
is to maintain our policy of cheap money. That must be the set purpose and
direction of our effects. I will leave that to the Chancellor to deal with tomorrow.
It is impossible to see very far ahead, but, in any case, as at present advised, cheap
money is our policy.
Nothing, by itself, will stop a slump. It is necessary to have a combination of
activities to stop slumps. Private enterprise will be encouraged to follow the
Government's line in timing investment. Then we want submitted for further
consideration a proposal of deferred tax credit, or similar devices. I do not object
to an equalization of Budget Finance. It is not an uncommon thing today, in
every business in the country. The practice hitherto in local authorities and in
the Government has been to reduce taxation when we are doing well, and to increase
it when we are hard up. I would rather pay it when I am doing well, than when
I am hard up. There is nothing wrong in that, surely, and the fundamental
principle behind this is to use every possible device, in order to check any possible
slump. The public investment is more easy of control and it can be more easily
organized, but if we are to encourage local authorities and public utilities, to submit
their plans in advance, that would involve a change of procedure in this House.
One of the great troubles hitherto when these things have come upon us, and public
works and other things have been advanced, has been that the procedure is so
long, that the effectiveness of the thing is lost before you have your Bill through
to remedy it. I submit, therefore, that in considering this matter and encouraging
local authorities and public utilities to advance their plans and have them ready
to be turned on, Parliament must adjust itself to some new procedure in order
to be effective.
The idea is that these plans will be co-ordinated and that a target will be set
each year for performance in the following year. This is not to be regarded as a
public works policy, as understood in the old sense. I well remember when
Ministers sent round to the Departments to show how few people could be
employed in public works. The works then envisaged were either the building
of a dock or the cutting of a road, but this is intended to include the whole
range of public activity, using developments of all kinds-just as when there is a
slow-down in industry, every wise management turns on the maintenance for the
next turn of the wheel and improves the productive capacity of its undertaking.
This sort of thing is being translated into this public works policy-to turn on
national capital at the right moment to improve our country, and improve our
health and efficiency for future developments. It is in that sense, that we should
use the Public Works Funds, and we want to adjust it in order to meet these
ebbs and flows which are, to a very large extent, outside our control.
The ebbs and flows of overseas trade, harvests and such things are very largely
outside Governmental control. We cannot control the harvest failure in the
Argentine, or something of that kind. The Coalition can do a lot of things, but
not that. Past experience has shown, however, that speed is essential and we want
to urge the House to help in carrying out this program in that sense, and to be
parties, with the local authorities, the utilities, and the Cabinet of the day in

Organizing Full Employment

giving effect to it. The other advantage is that it will be a continuous process. It
will not be sporadic. The State will know what is needed, and will have available
the plans for development which I have already mentioned. It does not mean,
however, that we shall hold back every kind of public building, waiting for the
slump, or waiting for the fall. Schools, hospitals and similar amenities and
all urgently-needed work following the war, will have to be tackled, together with
certain housing. I cannot enumerate every item, but there are wide developments
of public enterprise far beyond these.

Consumption Expenditure
The second line of defense is consumption expenditure. If we are not
successful in preventing a decline in capital investment, purchasing power for
consumers' goods will inevitably decline, and we must avoid the vicious downward
spiral. It is important at this moment, to realize that the methods of adjusting
money wages and production, which have obtained in the past were very uneven
in their application. I have already mentioned the effect on the export trades,
when adjustments are made in coal, and it is worth repeating that the method of
avoiding a fall in consumption, is one of the vital things which has a bearing on
many problems, including the distribution of industry. When people tell me that
there is a great population in London, with a great purchasing power, what they
are really saying is that between the two wars there was not the purchasing power
in certain other areas with an equal population. Therefore, the adjustment of
these things on a vast scale has a very big effect, from the point of view of
purchasing power, and a greater equilibrium over the whole areas.
We venture to suggest that there might be a variation in social insurance
contributions. In the past, when these events overtook us, the only way has been
the cutting of wages, which affects the whole family. Contributions under the
social services, as we have seen from the Beveridge proposals, will be raised, and
spread over the whole community universally. After further study, it may be worth
while making an actuarial calculation of which carries the greater load in good
times because, if you can work it successfully, it has the effect of lowering the
cost on the employer's portion, and increasing the consumption on the man's
portion, by leaving greater purchasing power in his pocket. That is a device well
worth studying and I hope the House will give it careful consideration. There are,
-f course, variations of other arrangements, which I will leave to the Chancellor
tomorrow, because he is the expert on these things. I want to express very sincere
thanks to the rhuch abused Treasury officials. No one has been more helpful than
they, in trying to evolve the plan of the change-over we are now proposing.
I believe in giving credit where it is due. If we had not had the help and
experience of these men who, for years, have never had very much kudos, I,
doubt if the Papers could have been produced. Therefore, I pay my tribute
to them. Of course, there will be the turn-over of labor, and I hope, in the
future, to devise a method which will distinguish between the ordinary turn-over
of labor and unemployment. I think the two things need to be segregated. I do
think-and I will refer to it again in a moment-that in the social services plan,
in connection with unemployment, the method of using social service benefits as a
subsidy to wages, and as an excuse for inefficiency in industry itself, is wrong.
It should be designed for the special purpose of unemployment, and industry must
undertake the other obligations. We must treat our economy as a whole. What-
ever we do internally, we cannot leave out the foreign balance and export trade.
This element of our economy is largely dependent on the policies of other
countries. The importance of restoring and expanding our export trade to make
up for the loss of our overseas investments, is generally recognized, but Govern-

British Speeches of the Day

ment action to this end cannot be taken in isolation. I have said publicly before
that if the creative ability of the State is really brought out now, and we act as
firms and individuals, and are all governed by the great objective that I mentioned
just now, the worry that might arise from the loss of overseas investments and
living on interest might well be limited. I think there is a great future for this
country. It is not only going to survive in war; I believe it will survive well in its
economic life.

The International Aspect
The amount of production entering into what is called the foreign trade of
the world is not a very large proportion of the world's total production and
consumption. It is very small in comparison with the total production and
consumption. We must have foreign trade because the raw materials are outside
our country. We must buy them, and other countries must buy goods from us,
if we are to have the raw materials, and we must do so under conditions which
will ensure that our internal economy is not brought near disaster with every
storm that blows. Before the war, the number of people actually employed on
what are called exports in this country, was about 2,000,000 of our total working
population. Unless there is a method of insulation, there is always the danger
of the whole economic structure being upset by this comparatively small number.
Therefore, in association with other countries, we must try to agree on measures
which will prevent the appalling fluctuations in the international p ice level,
which characterized the years between the wars and which, if there is a reasonably
stable international price level, make for expansion all over the world and give
security and confidence. I am hoping that the negotiations now being carried on
throughout the United Nations will lead to that end. We have wholeheartedly
committed ourselves to this in the Atlantic Charter, the Mutual Aid Agreement
and the Hot Springs Conference. We welcome the initiative taken in the employ-
ment field by the International Labour Organisation. Attention should be par-
ticularly directed to the resolutions passed at Philadelphia on the economic
policies for the attainment of social objectives which are broadly in line with
the policy of this White Paper. Therefore, international discussions will proceed
on a wide range of subjects and Parliament will be informed of their progress
as in the case of the monetary proposals. There is one great field that must call
for special attention, and that is the development of the Colonial Empire. It
must have a proper place in our expanding overseas trade. It must be systemati-
cally organized and have as its objective the raising of the standard of life of
the 66,000,000 people in the Colonies. They can gain and we can gain It is a
common effort achieving a common purpose. Success in maintaining a high level
of employment at home will in itself assist the export trade. The more products
sold on a good home market the more they carry the overheads and assist in a
reasonable price to meet competition.

Mobility of Labor
All these efforts will be nullified unless industry itself concentrates on raising
its efficiency. I have noticed in the public discussions that everybody's mind turns
on the efficiency of the workers. Efficiency must be meant in a broader sense than
that. It is not even efficiency in the finishing end of industry or part of an
industry. If you take the metallurgical industry as an example, and want to study
efficiency, you must go from the raw material, coal, right up to the finished product,
and see whether in each stage you have an efficient and well-conducted operation,
just as much as on the horizontal basis you study the product at a particular stage.
When we discuss efficiency we cannot have somebody just butting in with a lot
of out-of-date selling price arrangements, carrying redundant capital, paying each

Organizing Full Employment

other levies and all the rest of it, and adding them on to the price and creating a
moribund attitude to the whole development of their industries. That is not
efficiency. While efficiency will be applied generally, there is the difficulty of
localized unemployment. It may develop in particular industries for particular
reasons. Last week there was a long discussion in the House on the distribution
of industry and I do not propose to refer to it, but perhaps I may be allowed to
refer to the distribution, transfer and training of labor. Large-scale transfer of
labor is not, in my view, the answer to localized unemployment. Certain grave
social disorders arise from it. One is that it denudes the areas concerned of their
most valuable resources, their young man-power, and results in appalling waste of
social capital which would be better spent on developments.
We do not, therefore, regard large-scale transfers as the solution. At the
same time, we must have mobility of labor; that is an essential condition. An
expanding economy entails a certain degree of mobility of labor as well as of
industry. I have not found in the war, given the right conditions, much difficulty
in transferring labor. (Interruption.) I know that difficulties have arisen from
those I have taken, but there has not been much difficulty. If I had to direct people
to jobs that were inferior, they very properly objected, but where the conditions
have been pretty good I have not had very much trouble. There are other reasons
why they may object-home reasons, and so on. I do not regard the transfer of
women as I have had to do it in the war in the same category. It is a different
problem altogether. One of the first things we must do is to establish training
under Government auspices and no longer regard it as remedial action for long-
term unemployment. It must be part and parcel of our economic system. It must
be part of our permanent arrangements, and industrialists or anyone establishing
an industry can help in this respect. I have seen works going up, and I have seen
the unemployed standing about in the neighborhood, but nobody has thought of
beginning to train the unemployed while the works were actually being built.
In very few cases have facilities been there, and my predecessors have had to go
to the employers and say, '" have 10,000 unemployed and you must give them
a preference in this area," or they have had to use persuasion, and all that kind
of thing. There has been no organized attempt to have training programs arranged
in advance so that no time would be lost when the equipment and premises were
ready to start up.
There will be an enormous lot to be done in that direction, and there must be
a scientific approach by employers and trade unions. We must pay the trainees
better than unemployment pay. It must be a step up to the full wages they will
get in industry. We must have full co-operation with both sides of industry. I
know how hard craft prejudices die, and there are good economic reasons for them
all. If the State comes in in the development of full employment and the fears
that have helped to produce these prejudices are removed, I think it is possible
to get greater flexibility than we have hitherto had. One great trouble is that of
housing. If a person has to move from one area to another and the only way
he can get a habitation is to take up a mortgage and get his furniture on the
hire-purchase system, it acts as a dead-weight round him. Therefore, houses for
rent are enormously important in order to get mobility of labor.

Wages and Prices
The White Paper also makes it dear that the Government's policy for main-
taining expenditure cannot succeed unless there is reasonable stability of prices
and wage rates. The fundamental issue is simple. It is little use injecting pur-
chasing power to keep up the volume of employment if the additional money all
.goes in profit. It is equally useless if it all goes in wages and you get no pro-

British Speeches of the Day

duction for it. If the effect of making more money available, for example, for
housing, is simply to put up the price of houses and not to get more houses and
more workers employed, the Government's policy will fail. The adjustment of
wage rates must go on through the ordinary processes, but the general level ought
to be related to productivity. I do not object to that principle. If we had had
through the nineteenth century a rise of wages comparable to the productivity
of the working people, the standard of living in this country would have been
about double. The people were not organized then.
We have to discuss it with the parties and work out the methods, just as
Parliament, I hope, will work out the legislation as we go along. I have not worked
out the precise methods, but I have asked my trade union friends, industry, and
everybody to realize that this is an essential thing that must be done. If it is to
be done, we have to alter the old catch-as-catch-can methods'that we have had in
the past. I am glad my hon. Friends behind me cheer. No one has had more
throws in the wrestling system with wages than I have had, but the catch-as-catch-
can method was not always on one side. I would like to see that old system in
wages go. We want to relate wages to efficient production. There are many
industries which I have had the honor to represent which were on this basis. The
result was that our wages came out of the sweated level up to a decent standard.
The adjustment of prices will also go on, but there must be no action on the
part of any sectional interest to force prices to an artificial level. The test of good
management and distribution, if this scheme is to work and consumption is to be
maintained, is how near the cost of production the producer, when he comes
home and becomes a consumer, can buy his own goods.
We want to get rid of casualization of labor. I will not elaborate that point
now. The House knows enough about it and how demoralizing it is. The less
casualization there is, the more efficiency you get in industry. As one great
industrialist once said to me, "Keep a steady pressure up; by a steady pressure
on wages you will make the man on top use his head." Nothing promotes efficiency
more than a steady pressure on organized industry. Another matter that enters
into this problem is the hours of labor. This, again, will need to be very carefully
and scientifically studied. The growth of mechanization makes for the right use
of the organization. If I may offer a predilection of my own, it is that if I had a
choice between a few minutes off a day, or an extension of the annual holiday, I
would prefer the annual holiday. . .
When you are reducing on the one hand, you must not reduce to a point which
makes it difficult, whereas longer holidays give an opportunity of bringing your
maintenance up to date and rejuvenating your industry while your main productive
workers are off. That may be a real economic asset, while serving two purposes.
That is the point I want to make. I am open to argument and conviction but
these are points, I think, in the new economic adjustment. Indeed, the new
responsibility of the State develops important machinery at the center. We must
have the analysis of a great deal more information about our economic life. I
hope there will not be too much talk about forms. We must have the information,
in order to arrive at a right judgment. There must be a systematic review of our
resources at home, so that we can use them, with our exchange position, to the
absolute maximum, both material resources and human.

Importance of Statistics
It is proposed to establish a small central staff of experts, which will not
be like the old Economic Council, of which I used to be a member and which
met once a month. It never knew what it decided, or perhaps did not decide any-
thing. We shall need continuous examination of evidence, papers and statistics,

Organizing Full Employment

upon which the Ministers can come to their conclusions, and not from some
outside body, but with Ministerial responsibility. There are five broad categories
which we shall need. There is the financial survey-and my right hon. Friend the
Chancellor of the Exchequer will deal with that side of the matter in his speech.
There is a very important survey which will be charged to my Department in
future, called the Man-power Budget. This proposal we regard as absolutely vital.
The Ministry of Labour hitherto has come in after the event, and paid the benefit.
It was a misnomer to charge the Minister of Labour with responsibility for unem-
ployment. He can only persuade. It is now proposed that there shall be supplied
to the Ministry of Labour all the information necessary so that the Minister can
predict pretty well where employment will rise or fall, and it is not difficult to do.
There is the credit position of the various industries, the forward bookings, the
rise and fall of markets and so on. I would say to the employers of the country
that I really believe if they have to sit down and make for us this forecast of their
forward orders, that it will make them think what their forward orders really are,
and it may cause a different approach altogether to this problem. When the infor-
mation is in and the Budget is prepared, it will be for the Minister of Labour to
hoist the danger signals at once to his colleagues in the Cabinet ....
The returns of the human budget will be compulsory. We did not put down
compulsion of this and that in the White Paper, but we have projected it for the
Debate. The intention of the Government is that this kind of return, with the
Census of Production, should be obligatory. You must have it or you cannot work
the system, just as we get returns of people who are discharged, and the rest of it,
at the present time.
Before the war, we had about 15,000,000 people insured against unemploy-
ment, of whom I have already said 1,700,000 were,'on an average, unemployed.
This total of 15,000,000 will be affected in a variety of ways at the end of the
war. The raising of the school-leaving age will affect it, and so will increasing
longevity. We have talked about the sixty-fives hitherto, but all the evidence goes
to show, thank heaven, that we sixty-fives are much younger than we used to be.
One cannot tell exactly what the numbers will be, but I estimate, taking the same
categories that were insured before the war, with the women who will remain in
industry and in the professions, that the number will be about 16,000,000. It will
be almost sure to go up another 1,000,000, representing those who will be looking
for employment or going into the Services. We shall have to estimate what the
basic industries, such as agriculture, coal, cotton and so on, need and can carry;
they are the staple industries. We shall have to estimate how many will be
absorbed by those industries, in relation to the increase in consumer goods.
The main purpose of the human budget is to be looking to the future all the time,
and not merely registering facts that have occurred. We have gained great experience
about this during the war. This long-term policy will, as I have said, depend upon
stability and the right adjustment of taxation and insurance and all those com-
plicated but co-ordinated needs. I join with the Chancellor of the Exchequer in
saying, particularly at this period, that the Budget should be balanced over a period
of years. I have seen some criticism in some of the weeklies because of this state-
ment. I am not myself going to depart, any more than he is, from the principle of
reasonably sound finance. I think all these other measures can be supplementary
and contributory to it, but I do not believe in using the wrong instrument for the
purpose. After all, our credit position in the world will be a very important factor
at the end of the war, and I would not like to pass this point, or let it be assumed
that any other colleague-the Chancellor of the Exchequer or anybody else-is
not, like I am, a party to this proposal. I should like to hear the views of hon.
Members upon it during the Debate.

British Speeches of the Day

The Problems of Transition
Nowl turn to the special measures for the transition. As I said at the outset,
the transition is an entirely different problem. We shall have to exercise extra-
ordinary care in the transition period. If we do not adopt the right measures then,
we may not be able to adopt them at an early date. One must feed into the other.
That is vital. To do it, there has to be national discipline. I do not suggest that
we shall need all the controls that have operated during the war, but let me men-
tion one or two. Let us assume for a moment that everybody is agreed that the
export trade has to be revised. The home market will be clamoring for goods;
are we to start on the export trade when we have satisfied the home market? I
suggest that if we wait, we shall have lost our export market. Therefore, we shall
have to ration supplies for the home market, to reserve a proportion, and to begin
building up good will and trade for our exports. It is no use people turning this
thing into a political conflict. It is a question of absolutely essential measures.
The same thing applies in the home market. One of the things that have car-
ried us through this war is that people accept the view that if we have not always
been fair we have done our best to be fair. This deferred buying means a pent-up
purchasing power. Millions of women will still go to work while lots of others
will have time on their hands when they are released. If you want to keep peace
in this country and not have disturbance, the woman who goes to work and has
not the same advantage in shopping must be able to get her sheets, blankets, and
other domestic utensils on exactly the same terms as those who have plenty of time
on their hands. These are simple domestic things, and some form of -ationing
will be absolutely essential until the market is full. We do not know what the
food situation will be in Europe for a considerable time after the war. No one
can foresee it. There may be a great strain on the foodstocks of the world. Who,
then, would be foolish enough to say, immediately the balloon goes up and the
Armistice is signed, "away with controls." You must keep order by maintaining
these things, and a sense of fairness right throughout the community.
Then we have to make a selection, according to our use of raw materials for
home production of the industries we can start up and develop. We have not
foreign investments from which to buy anywhere. We have to get from abroad
things that we can turn into finished products which will maintain our purchases
of foreign materials. Therefore, control of raw materials is absolutely vital for a
considerable period after the war. In that, there may be difficulties about patches
of unemployment, but I can assure the House that we shall utilize all the ex-
perience we have gained during the war in order to get over them. I have been
asked whether this will involve the direction of labor. It may not, but I do not
believe I should have any difficulty, if it takes a long time to re-tool an industry
in a given place and if I have an industry 20, 30 or 40 miles away, in making
temporary arrangements, to develop where I can develop, during this interim
period. The working people of this country are not unreasonable. They have
common sense like everybody else, and I am certain that, handled properly, this
thing can be got over without any very great difficulty . purely in the transitional
period. You cannot switch over. There will be co-operation among all parties to
maintain stability and order while we get on to a more stable level and can see
where we are. Another very important thing we must do during this period is to
keep up the savings effort, to maintain the surplus savings of the country. That
must be done. We must control the use of capital and access to the capital market.
All these devices are intended to give the Government of the day a stable, steady
position during the transition, so that they can devote their minds and attention
to working out by an ordinary method, the more permanent conditions.
I conclude by commending the Motion to the House, with this word: It is not

Mutual Aid

final, it is pioneering, it is blazing a new trail. It is turning our backs on the old
system. It is introducing, as against automatic control, conscious direction. It
places a great responsibility upon Parliament and upon the Government of the
day, and the integrity of its action: to have in its hands the direction of the eco-
nomic life of the country as it wills is not something to be taken lightly. But
having taken on that responsibility, then with the great standard that has been
built up in our Civil Service, with the standard of our public conduct in dealing
with these affairs, and with our great traditions in public life, both local and
national, we can with safety start out on this road this week and begin to say
that we have left the old vexed disease of unemployment behind us.

Minister of Production
To American Chamber of Commerce in London, June 20, 1944
It is perhaps interesting to know that the munitions supplied to British Armed
Forces are: as to 60 per cent manufactured within this island; as to no less than
25 per cent imported from the United States under Lend-Lease; as to 10 per cent
obtained from Canada on the most generous terms; and as to 5 per cent from the
rest of the British Commonwealth. The apparent smallness of this last figure is
partly due to the fact that Australia and New Zealand have very ready use for
munitions they make themselves and, in order to kill an enemy, they had not got
to export them to Britain as Canada does. The range of supplies included in these
truly vast figures are weapons, such as aircraft and tanks, food, raw materials, oil,
ships and shipping services, and other essential supplies. .

Reverse Lend-Lease
I now turn to the second part of my subject which I think it is equally necessary
to ventilate, and that is, that Lend-Lease has not flowed all one way. By reverse
Lend-Lease to the United States we have made a very substantial contribution to
the sum of our common war resources of which Lend-Lease itself is only one
aspect. The Military Forces of the United States, presently engaged in France,
and to be engaged in France have been preparing here, some of them for as long
as two years, and it has been our privilege and pleasure to do everything possible
to see that American Forces are properly housed, equipped and maintained to put
them into the best fighting trim. Most of their actual weapons have come from
the United States, but shelter, fuel, and the great proportion of goods and services,
which are needed by a modern army, have been provided free by the British
Government as reverse Lend-Lease. The total amount of reverse Lend-Lease given
by this country here and abroad to the United States to date is estimated at over
five hundred millions sterling, which is well over half the national debt of Britain
before 1914, and the present rate of expenditure on reverse Lend-Lease is now
running at over twice the rate at the beginning of 1943.
Altogether, American Forces in Britain received under reverse Lend-Lease
without payment, additionally to the use of barracks and airports and other mili-
tary facilities, one-third of all their current requirements for military supplies. I
must say also, that glad as we are to give this reverse Lend-Lease, it is not done

British Speeches of the Day

without hardships to our own population and I know that everyone who has been
long in this country knows that our moblization of men, money, and materials has
reached a higher percentage than has ever been reached by any poeple in any war.
It is, for example, far above the mobilization which Germany has been able to
achieve. Therefore, when these large sums are expended, and they are expended
on the whole at low prices, they do not represent the mere giving of a surplus,
but something which we are glad to give from a very strained, attenuated economy.

The Kind of Help
I have dealt with the amount expressed in money. Let me deal for a moment
with the nature of these supplies we are giving you. Apart from construction, in-
cluding, for example, over one hundred aerodromes on which the expenditure is
little less than one hundred millions sterling, we have provided camps, hospitals,
workshops, repair depots, storage accommodation on the largest scale, essential
equipment such as hospital trains and telephone communications, and we have
aided the United States very substantially in transporting their troops across the
Atlantic. The two largest, fastest liners in the world, the Queens Elizabeth and
Mary, have been for a long time at the disposal of the American authorities for
transporting troops.
A large number of aircraft, including five hundred gliders as well as many
squadrons of Spitfires, have been handed to the U.S.A.A.F., and quantities of
howitzers, anti-aircraft and anti-tank equipment, and signal stores. We have, of
course, been supplementing the food rations brought here by United States Forces.
We have supplied them with one-fifth of their food from supplies grown here
or in the Dominions and Colonies. That has partly been made possible by Lend-
Lease imports of seed and agricultural machinery.
Typical of the kind of help we have been able to give is a United States naval
base in Britain, which the late Col. Knox, then Secretary of the Navy, announced
had been operated for a full twelve months without the United States being
called upon to make a single cash payment.
Drop fuel tanks are another small but significant instance. We developed
here the drop fuel tank out of substitute materials. Towards the latter half of
last year a telephone call came from a large American assembly depot in this
country. The United States Air Forces, we were told, was urgently needing a one-
hundred-and-eight gallon tank for their Thunderbolt fighters so that these fighters
could escort Fortresses and Liberators on daylight missions to Berlin and on other
long-distance raids.
We had a one-hundred-and-eight gallon tank design ready, made entirely of
paper with wooden baffles, and one of the leading firms of paper makers produced
samples in a week or two which were tested by the Royal Aircraft Establishment
and the United States Army Air Force. The results convinced our American
friends, and we started production for them immediately. At the end of last year
the American Air Force suddenly found themselves requiring a very much larger
number than had been foreseen. They asked us to step up production two and-a-
half times, which we did, and on two later occasions the program was again
stepped up, and we have always exceeded the target figures asked for. I won't
worry you with further details of the wide range of services which are predom-
inently of a civilian character, such mundane affairs as laundries, dry cleaners, boot
repairs, pianos, billiard tables, hair pins, tooth brushes. But I am afraid I must
still go further and refer to what I think is more important even than this very
large range of supplies, namely those aspects of reciprocal aid which cannot be
expressed in money or tonnage. I am thinking particularly of the field of scientific

Mutual Aid

research and development. Just as the United States claimed no monopoly in
scientific discovery so we have freely made available to your country every sort of
technical information so as to promote the joint development of weapons and
When you were attacked by'the Japanese we had already been at war for a
considerable time and had accumulated a great deal of battle experience and made
many researches under the pressure of urgent necessity-in fact under the present
of the need to survive.
All this experience and the research which accompanied it have been made
available to you. Most of it must, of course, remain secret; I must not weary you
with the details, but I think it is interesting, to refer to some items ....
The results of all research in submarine detecting devices, radiolocation, and
all other branches of scientific development applied to naval warfare have been
made immediately available to the United States Navy. As this scientific research
has been conducted in Britain on a very large scale for many years, the British
contribution to the exchange of information is of incalculable value ....
I need not remind you that we have given unconditionally the complete in-
formation by which the Rolls-Royce Merlin engine can be built in the United
States for our mutual benefit. Again in the jet-propulsion field the Whittle engine
is already in manufacture in the United States, and the first jet plane to fly in
America used the Whittle design of engine. We are, of course, at the same time
benefiting from American aeronautical research generally and I am told we are
likely to follow your ideas, for instance in relation to turbo-superchargers. ...
The emergence of the Mustang as an outstanding fighter plane has largely been
due to British initiative in its design, and to the installation of the Merlin engine.
We placed the first orders for the Mustang for cash and laid out the aircraft to
our own requirements. ...
We have given the United States development data in the form of the Mark II
gyro sight, which promises to be the most outstanding gun-sight yet devised. This
sight is going into large-scale manufacture in the United States practically in its
British form....
British scientists have been experimenting with rocket weapons of all types
during the seven years before the Battle of Britain in 1940-4. A vast amount of
knowledge has been acquired, and was entirely handed over to your countrymen,
who proceeded to order a large quantity of British anti-aircraft rockets
for study and development, and formed a special rocket organization using the
best scientific brains in America. As regards rocket propellant, the use of solvent-
less cordite for this purpose was developed at Woolwich Arsenal in the Thirties.
In August, 1942, a United States technical mission was sent to the United King-
dom to obtain all operative data on our manufacturing process. Subsequently
British equipment and experts were sent over there and since then the propellant
has been developed considerably in America. Furthermore, several types of fuses
for rockets embodying many novel principles have been handed over. Rockets
based on a British design are now being used with great effect by American Forces
in the Pacific ....
One American radio set has been developed directly from a British set. An-
other British set has been widely used in American-built tanks for Britain and
Russia. A recent British design embodies revolutionary features in communications
technique, and a special mission, including representatives of the United States
Army, visited Britain to inspect its construction and operation.
Other items, details of which cannot be revealed, include a new insecticide of
unprecedented effectiveness, a host of anti-submarine devices, research on dehy-

British Speeches of the Day

dration. A mass of new production techniques, including entirely new methods of
pressing sheet metals for aircraft have been handed over to our American Allies
as a matter of course. I shall say nothing of items such as research on penicillin
ammonia, explosives, plastics, mine detection, and dazzle.
[By Electrical Transcription]

Minister of Food
House of Commons, June 9, 1944

When last I spoke in this House as Minister of Aircraft Production, I was
able to report that things went well. What I then said, has been borne out, by our
finding that the Allied Air Forces now have a superiority on every front, and by
the figures given by the Prime Minister earlier this week. We hear our aircraft
going overhead, by day and by night. Many of these aircraft, of course, are made
in the United States but many are our own. As, then, I reported that things went
well on the aircraft production front, so now I can report to the Committee, that
things go well on the food front, too. I should like to pay a high tribute to those
who launched this ship, the Ministry of Food, to those who were concerned in
the early days, ii the Food Defense Plan Department, and to those who equipped
it, as they did, and set it on its course. My Noble Friend, Lord Woolion, was
rightly popular in this country. He did a great job of work as Minister of Food.
He left the ship on a good course, on an even keel, and he left me with a first-
class crew. However, careful navigation and a good captain are still needed.
When I led a Parliamentary delegation to the Empire Parliamentary Association
Conference at Sydney, I remember on the voyage talking to the captain of the
ship on the fact that he was seldom on the bridge, when the ship was on the high
seas. He said "The ship is safe enough on the high seas; it is when it is coming
near land, that you have to be careful of the navigation."
This country has been through difficult waters in the last four and a half years.
Now, we hope that we are reaching our haven, but we can in no way relax either
our vigilance or our efforts, and certainly, towards the end of the war, there will
probably be more restlessness on the food front than there has been in the midst
of wartime. The way in which the food front has been handled, so far, has, I
believe, materially contributed to the solidarity of our people in the intense war
which this country has to fight. It is well, therefore, that I should report to the
Committee and through it to the country what the position now is.

I will deal first with stocks. During the latter part of last year, we built up
our stocks, knowing that shipping and port facilities would be largely employed
on the operations which are now taking place. The policy of the Government was
both far-sighted and wise. In consequence, in spite of great demands on shipping
for these military operations, I can assure the Committee and the country that our
stocks of food are good. Here, I should like to pay tribute to the work that has
been carried on in Washington, and in Ottawa as well, by the British Food Mis-
sion in North America, and especially I should like to pay tribute to Mr. R. H.

The Food Front

Brand, who was head of the Food Mission since its inception in 1941. He has
now, as the Committee will have observed, become Treasury representative in
Washington, but I am concerned to pay tribute to his work while in the Food
Mission and as British member on the combined Food Board. I know that that
work was good. During eleven months of last year I worked in Washington with
him, and his work and that of his Mission largely enabled our stocks of food to
be built up to the satisfactory point at which they now are. Indeed, he and those
who have worked with him have deserved well of their country.
As far as I can see, looking at the stocks and having taken a careful estimate
of the outlook, we shall be able fully to maintain existing ration scales in every-
thing for the remainder of the year. When I say "in everything," I must, of
course, except milk, which has a seasonal flow. There may be temporary difficulties
at the moment due to transport difficulties. Now that the invasion has been
launched there will, of course, be a large military follow-up, but, so far, our food
supplies are getting through well. That reflects great credit on the Ministry of
War Transport, on the railways and on the road hauliers, and it reflects great
credit, if the Committee will allow me to pay them a tribute, on our divisional
food organizations and our local food organizations up and down the country.
During the past few months, my right hon. Friend the Parliamentary Secretary
and I visited the emergency food stocks which we have accumulated in the country
against the events that are now taking place. Perhaps the Committee will allow
me at this point to say how lucky I am to have my right hon. Friend with me as
Parliamentary Secretary. For the last two years he has borne the brunt of the
burden in this House alone, and he has done it as far as I can make out remark-
ably well. The great point is that he knows the background of the various prob-
lems that arise, and I must confess that he knows much better than I do what you
can and what you cannot do under our food Regulations. I am however begin-
ning to learn. As I said the Parliamentary Secretary and I inspected those prepara-
tions and were fully satisfied with them.
The Committee will be glad to learn that as yet we have made no call on the
emergency food supplies which we laid in. My Ministry is responsible for the
procurement and delivery of food to the Service authorities-food for the Navy,
Army, Air Force, for the Dominions and European allied troops in this country,
and needless to say, our first aim is to meet these requirements in full. Also it is
hardly necessary for me to say that they have been met in full and that our Army,
Navy and our Air Force have in full the supplies that they need. We are also
providing, under reverse Lend-Lease, the United States Forces here, with many
of their needs. For instance, we let them have potatoes and other fresh vegetables,
apples, milk, flour, coffee, sugar, tea, jam and marmalade, and we have, of course,
met these requirements also.

Dehydrated Herrings and Potatoes
While dealing with Service requirements perhaps the Committee would allow
me to say a word about dehydration. It is a horrid word for a wonderful process.
It enables armies in remote parts of the world to have what are indistinguishable
from fresh vegetables. It has been a great boon to the Royal Navy, and to the
Merchant Navy, and we are now providing, in full, the requirements of the
Services. When my right hon. Friend spoke a year ago on these Estimates, none
of our factories were then working; now we have 14 factories working on drying
vegetables. Last year, my right hon. Friend gave the economies thereby effected.
He said that 1,000 tons of raw cabbage occupies 140,000 cubic feet. If you reduce
it by drying, that 1,000 tons is reduced to 40 tons and the capacity is reduced to
15,000 cubic feet. Now, however, we have learned to compress it as well, and,

British Speeches of the Day

when compressed, a cubic capacity in the raw of 140,000 cubic feet is reduced to
a capacity of only 2,727 cubic feet. You can see what a saving that makes in any
transport of supplies to our Forces.
The Committee may be interested to know that we have an entirely new prod-
uct, mashed potato powder. . The potatoes are cooked and mashed and then
dried, and they turn into a powder which is contained in a tin much like cocoa
powder. All that has to be done is to take a few teaspoonfuls of it, pour hot
water on it, and you get an extremely good mashed potato without ar y cooking
in the home at all. .. I have tried it, and if he had not seen it mixed, I do not
believe that any hon. Member would know that it was not ordinary maslied po-
tato. . In this drying field, we are moving our experimental plant to Scotland
for experimental work on the dehydration of herring.

U. K. Contribution to European Relief
The Armies need to take with them a certain amount of supplies not only for
themselves but for the people they may liberate. The Committee knows, I think,
that I had the privilege of leading the United Kingdom Delegation to the first
council meeting of U.N.R.R.A. at Atlantic City, and at that meeting it was decided
that the military should take responsibility for providing during the initial period,
food supplies after any occupied country had been liberated, until that task could
be handed over to U.N.R.R.A. or to the duly recognized national authority. For
South and Western Europe that responsibility rests, of course, on the United States
and upon ourselves. I have accordingly, undertaken during the early part of that
period, and, so long as my stocks allow it, to make a generous contribution towards
the foodstuffs which the combined military authorities have assessed as necessary.
These stocks are the nearest sources of supply, and relief in the form of food may,
of course, be needed quickly. For any long-term provision of foodstuffs, it would,
of course, be absurd for this country to send them-we are large importers of
foodstuffs ourselves-nor would it be right or reasonable to cut down our reduced
standard of living, in order that this provision should be made. I said that I was
at Atlantic City and there were 44 nations represented there. Subtracting the nine
who had all or parts of their countries occupied, and ourselves, that left 34. In
the great majority of those 34 countries there is no rationing at all, and where
there is rationing, it has neither been in existence so long, nor is it so thorough
and restrictive as our own. In my view, therefore, it would be wrong, both in
principle and in practice, for the people who have borne the heat and burden of
the day, to bear any more.

Civilian Priorities
This brings me, naturally, to the next thing I want to speak about, the food
supplies available for civilians here. I speak as one who comes fresh to the
Ministry of Food, and I have come to the conclusion that the Ministry has done
a great job on nutrition. The policy has been, as hon. Members know, that vul-
nerable classes-mothers and expectant mothers, infants and children--should
have large extra rations of various sorts; that those doing long hours of work in
factories and canteens-and the Committee will be glad to know that canteens in
factories have gone up by 300 a month during the last 12 months-get millions
of meals now served in those industrial canteens. For the agricultural laborers,
apart from the extra cheese ration, the rural pie scheme now sells no le.s than
1,300,000 pies a week through a large number of villages up and down this
country. So the policy is to put the mothers and the children first, then those
doing the work in factory or field, and then to give the rest of the population an
adequate diet.

The Food Front

The evidence available shows that the national health has been well maintained.
There is no sign of a general loss of weight; in fact, adolescents are showing an
increase. There is some sign of the loss of the "middle-age spread," but I think
that is a loss which most of us welcome if it happens to ourselves. There is no
sign of any impaired resistance to infectious diseases. Infant mortality reached its
lowest rate in 1942, and maintained the same rate last year. Nevertheless, we have
been on a somewhat unvaried diet for some time and more variety would certainly
be good. I have been endeavoring, quietly, to get more variety, and some hon.
Members may have noticed a little more ham about. A soldier certainly noticed it.
One of the chief officers of my Department, while changing trains the other day
at Crewe, came into contact with two soldiers who had just come out of a res-
taurant, and heard one of them say, "By Heaven, it is ham." He seemed very
surprised to get it. At any rate, we are getting more of these picnic hams into
the shops, and I believe that they have been extremely welcome. We have also
in most grocers' shops at the present time what I believe are termed in the trade,
"American fat bellies," and that is an acquisition which we have been able to put
into our diet.

Milk and Fruit Shortages
In regard to milk I am afraid that I shall shortly have to reduce the milk
allowance, not, of course, to priority consumers but to ordinary people like you
and me, Major Milner, from four pints to three pints a week. This will take place
this year on 18th June: last year it did not take place until 4th July. There are two
reasons for this-the dry weather arnd increased Service requirements. The dry
weather we cannot help, indeed, it may have been helpful to have it during this
invasion period. I am sure that nobody would wish me not to fulfill Service
requirements for condensed milk to the utmost. They are large; we intend to
fulfill them, but it does mean giving up two pints of milk over a fortnight because
of this earlier cutting down of the four pints allowance. I hope, however, to
restore the cheese ration from two ounces to three before winter comes. I believe
I shall be in a position to do so. In other ways, I am trying to get more variety
into our diet. Fruit crops will not be as good as they promised to be. Our climate
sometimes lets us down rather badly. To have nice warm weather, and then three
nights in succession of severe frost is just about letting us down as badly as our
fruit crops could be let down. Soft fruits, therefore, will be short. People who
like strawberry and black-currant jam, will not get as much of it as they did be-
fore. In fact, I do not think there will be sufficient black currants to make jam.
They will all go into black-currant puree. We have had some complaints about
jam, and we intend to improve the quality of two kinds, strawberry and goose-
berry, by raising the fruit content. The total quantity of these jams will be slightly
less, but the quality will be noticeably improved.
I am afraid it is impossible in present transport conditions to carry fresh fruit
about the country and distribute it evenly. Even distribution can only be done in
the form of a nonperishable commodity such as jam. As I have said, our own
fruits will be short, and we made a considerable purchase of apricot pulp in Spain,
which will be used to make jam. To increase our supplies of fruit, I hope again
to get oranges from Palestine, South Africa and Spain and again to get bitter
oranges from Spain. ... We have brought in, or are in the course of bringing in,
17,000 tons of lemons, and I hope to keep up that supply next year. These mainly
come from Sicily and I think we ought to thank our Armies if we are able now
to have a lemon occasionally. Two years ago we imported apples from Canada,
and I am again hoping to get supplies from there this year. We have bought all
the exportable surplus of dates from Iraq, all the raisins from Cyprus and we have
bought 32,000 tons of Turkish dried fruit, so that we are trying to do what we

British Speeches of the Day

can to bring more variety into the diet of this country, which was impossible before
the Mediterranean was open. The tomato scheme last year was a great success,
Twenty million containers were circulated throughout the country, each containing
12 Ibs. of tomatoes which went to 117,000 registered retailers. We are very much
indebted, for the working of this and other distribution schemes, to the voluntary
efforts of the various trades which undertake them on our behalf. I am very much
obliged to them for the way they do this; they know the trade, they work it fairly
for us; they do it far better than less experienced people, and we should be very
grateful to them.

Bread and the Canadian Farmer
Before leaving the immediate supply question, there is one other food to which
I should like to refer, and which is so often taken completely for granted. I refer
to bread. It has never been rationed. The price throughout the war has never
exceeded 9d. per 4-lb. loaf, and we eat 4,000,000 tons of it per annum. The fact
that the Canadian people give us large quantities of wheat, as part of their con-
tribution to the war; that farmers and farm-workers work long hours in those
far-off Provinces to produce it; that our farmers and farm-workers have succeeded
in growing wheat on land which would not have been considered fitted for it in
pre-war days; the fact that they are now providing us with half the wheat we are
now using in our bread; the fact that despite the bombing of flour mills the supply
of flour keeps up, and that when I wanted, two months ago, to build up an extra
flour supply for an emergency reserve, men willingly worked two or three week-
ends; the fact that 55,000 bakers worked long hours with much depleted staffs,
under blitz and blackout conditions to make the bread in large plant bakeries and
little shops throughout the country-all these facts are often overlooked. We are
inclined to take them for granted. I should like to thank all these people, if I
may, on behalf of the House. They have done well by us all. Through their
efforts we are provided each day with our daily bread, and it is better bread now
than it was formerly. The oats have gone, the rye has gone, the barley has gone,
and now the only cereal in the loaf is wheat, and that is an achievement which
we could not have performed, except for the services of the Canadian farmers and
our own. Last year we gave an extra ration of sugar of one lb. for domestic jam
making. That was not given until July. I do not quite know when we shtdl make
it available this year, but it is going to be made available for the same purpose
this year as last.

Providing for Long-Term Shortages
Now I want to deal with the long-term position. When he spoke on the
Estimates in 1941, my right hon. Friend the Minister of Fuel and Power, then
Parliamentary Secretary to the Ministry of Food, said there was no shortage of
food in the world. The difficulty was to get it here. That picture is now changing,
and, certainly for the next four years, we are in for a period of shortage in several
essential foodstuffs, in dairy products, milk, butter, cheese, in meat products, beef,
mutton and lamb. In addition, the foreign exchange position may not be too easy.
We must, therefore, produce at home as much of these products as we can. I want
to see the National Milk Scheme continued; I want to see the milk in schools
scheme continued, and I want to be able to discontinue milk rationing, as soon
as possible after the war. We shall also want to manufacture in this country the
maximum quantity of condensed milk, milk powder, butter, and cheese and, if
we are to accomplish this we shall need 360,000,000 gallons more milk each year
to be produced in this country. I want also to get rid of meat rationing as soon
as possible after the war. To do that, we must increase our meat herds and our

The Food Front

sheep flocks here. The Minister of Agriculture is asking farmers for the next few
years to apply their minds and energies to this new task. While they are doing it,
we shall still want large cereal crops, we shall still want large potato crops, and
we shall still want large crops of sugar beet; but the farmers and farm-workers
have done the country proud during these years of war, and I am sure they will
do equally well by the people of the country in helping us to release them from
rationing restrictions.
The Government have decided that the producers in this country of milk, beef
cattle and fat sheep should be given a guaranteed market for their output of milk
and meat up to the summer of 1948, at price levels not lower than those now
operating. My right hon. Friend the Minister of Agriculture has announced this.
But, as far as supplies from overseas are concerned, the Committee would like to
know that I have started negotiations for the conclusion of long-term contracts for
some of the principal imported foodstuffs. This will enable overseas farmers to
plan their production for a period ahead, and will ensure supplies to this country
during a difficult period. So the Government have invited the Australian and New
Zealand Governments to consider a proposal that we should purchase the beef,
mutton and lamb surplus to their own requirements, and all the surplus dairy prod-
ucts that they may have available for export up to the end of June, 1948. This
proposal has been accepted in principle by those Governments.
Negotiations have also been in progress for some time with the Government
of Canada for the extension of the current bacon contract, which covers the years
1944 and 1945. We have offered Canada a bacon contract covering four years in-
stead of two, up to 1947, providing for minimum deliveries totaling 1,850,000,000
Ibs. of bacon during those four years. This would have the effect of guaranteeing a
market for a considerable part of the output of Canadian farmers, who have done so
much for this country during the war. Our proposals also provide for the inclusion
of a clause for revision, in the event of unforeseen circumstances, which make the
contract unduly arduous on either side. I hope that agreement on this matter will
soon be reached. An agreement has been concluded with the Canadian Government
for the purchase of 125,000,000 Ibs. of cheese, in each of the two years from 1st
April this year, to 31st March, 1946. The Ministry of Food has also undertaken
to purchase the whole exportable sugar production of the Dominions and Colonies,
up to the end of 1946, at prices which will be determined from year to year.
Another matter to which I have been giving my attention is the question how
far we are going to be able to continue this concentrated orange juice, which has
been such a success with mothers and young children. The orange juice scheme
is an excellent one. The take-up is now well over 50 per cent, and I want to see
this kept up after the war. We now get nearly all the orange juice under Lend-
Lease, and at the end of the war, those supplies under Lend-Lease may, of course,
not be available to us. We are, therefore, encouraging the production of concen-
trated orange juice in Palestine, in Jamaica, in Southern Rhodesia and in South

Fish and the Fishermen
I have spoken about the farmers, and I think it would be appropriate here to
say a word about the fishermen. The fisherman, like the farmer, has a patriotic
duty to perform. He plays an important part in food production. I have taken the
opportunity to go recently to two of our large fishing ports, Fleetwood and
Grimsby, to impress this upon them. In the last few months, I am glad to say, fish
landings have substantially increased. I would like to thank the masters of those
vessels and the crews for what they have done. I know they will continue the good
work. In the coming winter in particular, we want more fish, and I am sure they

British Speeches of the Day

will do their best to get it for us. I was rather impressed to see how quickly they
turned their boats. A master of one of these craft had been invalided out from
the Navy and had won the Distinguished Service Cross while in it. Now he comes
back to his fishing, taking his boats to sea and bringing fish to our shores. It is
men like that who are doing this work for us, and I am certain that we can rely
on them to continue to bring this essential food to our people. The initial troubles
of the fish distribution scheme have been overcome; it has at any rate saved one-
third of the train mileage formerly employed on taking fish about the country.
I now want to say a word about herrings. They are not included in the
Ministry's scheme of allocation. The opening of additional fishing grounds in
July, 1943, yielded a glut of supplies that, for some time, seemed likely to over-
whelm the normal distributive machinery of the trade. I have taken some steps,
which I hope will go far to help solving this problem. Its solution must be sought,
not in the restriction of fishing, but in the provision of means of dealing with
herring surplus by curing. I have, accordingly, undertaken to purchase the total
output of the salt herring curers at a number of ports, and have arranged to hold,
for relief purposes, any balance that cannot be sold in the home market. Proc-
essors are being encouraged to cure and kipper larger quantities this summer.
These arrangements should enable the fleet to continue regular fishing, so that the
maximum quantities of fresh herrings and kippers will be available, both to the
people of this country and to those of the liberated areas ....
When the war ceases, and before these fishing grounds [in the North Sea]
can be reopened, there will be a great deal of mine-sweeping to be done and the
crews will have to return. But there is a good prospect for the fishermen in the
North Sea. We shall need more protein foods-and fish is one of them-and
there are parts of the North Sea in particular, which are out of bounds now,
which will then abound in fish.

Enforcing Food Regulations
There are one or two other matters with which I should deal. One is the
question of enforcement. I see the reports of cases brought in the courts. The
problem of control falls into two parts. The first is: Are all the orders necessary?
In considering that, two factors have to be borne in mind. On the one hand,
there is criticism of the fact that there are too many Orders, or that the Orders are
unnecessarily complicated, or that they interfere unduly with the elementary rights
of the citizen or the trader. This, I suppose, is part of a campaign called "the
campaign against the rising tide of red tape." On the other hand, and almost
simultaneously by the same people, there are agitations called on the Ministry to
make more and stricter Orders to deal with specific problems, to secure, perhaps,
a more precise distribution of oranges, to ration fish or tomatoes, or to control the
distribution and price of spirits and wines, and so on. The fact that Orders dealing
adequately with these problems would necessitate considerably larger staffs is often
overlooked. So I have to hold the balance between these two. I do not want more
Orders than are essential. We have recently reduced the number of Orders cur-
rent on food matters from 650 to 430. I am now having a review made of them
all because I think it is a good thing from time to time to look back at what was
done in the past and in different circumstances and to see whether it cannot be
modified as things are at the present time.
The second, if not more important part, is the reasonable and proper enforce-
ment of these Orders. My predecessor delegated to local food control committees
the duty of instituting prosecutions under practically all the Ministry's Orders.
That is not an easy task. Speaking generally, these food control committees have
exercised their powers admirably. I have caused a circular to be sent to all food

The Conditions of Freedom

executive officers urging upon them to avoid the initiation of prosecutions in any
case which is open to reasonable criticism. It is not too easy for the shopkeeper
or a member of the public to know exactly what he can do and what he must not
do, and we are very much indebted to shopkeepers, large and small, and to shop
assistants up and down the country, shorthanded as they are, for the way they are
distributing our food supplies. I should like to thank them for what they are
doing. People are sometimes ill or for one reason or another have to leave work,
and the shops have to carry on in these times without any replacements. They
have a lot of work to do, and I am the last person to want to see any of these
people prosecuted because they have made some innocent mistake or have not
understood one of the Orders. In those cases an explanation by the local food
executive officer or one of his staff, and, if it occurs again, then a warning, is
normally sufficient to ensure future enforcement of the law. This does not mean
that where we find a real blackmarket offender or a person who persistently offends,
though warned, a prosecution will not descend upon him energetically and hard.
The persistent offender must be ruthlessly brought to book.
[House of Commons Debates]

Minister of State
United Nations Luncheon, June 14, 1944

This war is about Freedom, how to secure it, how to maintain it and how to
extend it. We are fighting for freedom, for ourselves, for our fellow men and
for our heirs. Freedom to live at peace. Freedom to speak our minds. Freedom
to develop our own institutions. Freedom to labor and to enjoy the fruits of our
labor. That is the freedom that we are fighting for.
What are the conditions of freedom? I think that the first condition of free-
dom is that men should learn how to live together. In our own lives we are free
because we are members of a national society. By seeming to surrender part of our
liberty of action to the society in which we live, and to its laws, we increase the
sum total of our liberty. The same considerations apply in the field of inter-
national relationships. We can only enjoy our freedom as nations, that freedom
which, during this war, has been wrested away from so many of us in this room,
if we can create an international society which gives to the nations of the world
the same kind of security and the same kind of liberty that we, as individuals,
derive from our national societies.

International Order
That is why it is so vitally important to create, when the war is over, some
kind of world structure such as that which was outlined by the Prime Minister in
his recent speech in the House of Commons, or by the United States Secretary of
State in Washington-the kind of world structure which was looked forward to
in the Moscow Declaration. It is only through some kind of world organization,
some kind of world society, that we shall be able, in the final analysis, permanently
to restrain the aggressor and to establish conditions of real freedom over the whole
field of human affairs. Thirty years ago, when the first World War broke out, we
were taught a bitter lesson, the lesson that the world had grown too small for the

British Speeches of the Day

international anarchy of the past and that we must substitute for it an inter-
national order-and we half-heeded it: it went in at one ear and out at the other
as the saying is. And now again the lesson is being repeated. This time we had
better pay attention. If we do not, I do not doubt that fate has further: bludge-
onings in store for us from which, it is very likely civilization as we understand
it could never recover.
There is much that we can learn from the experience of the last quarter of a
century. There is much that we can learn from the great experiment of Geneva.
In a speech, to which I have already referred, the Prime Minister said that un-
doubtedly the new world society would "embody a great part of all that was
gained by the structure and formation of the League of Nations." But there was
one weakness in the Geneva system which will not, I trust, be repeated. Under
the League system there was no real relationship between responsibility, on the
one hand, and power, on the other. Responsibility was diffused. Power was con-
centrated in a very few hands. That is one of the principal reasons why the
Geneva system broke down.
That is why it is essential, in any system that we may build for the future
that the Great Powers should have responsibilities which are commensurate with
the physical force which is at their disposal. This does not mean that the Great
Powers should become the new dictators of the world. God forbid! It does mean
that the Great Powers must accept a responsibility for action to keep the peace,
such as they were not prepared to accept in the years between the wars. It does
mean, too, that there must be between the Great Powers a degree of co-operation
such as did not exist in the years before the war. But it seems no more than that.
Neither His Majesty's Government nor, so far as I am aware, the government
of any other country, has any desire or ambition to dominate Europe, or, indeed,
any other part of the globe.

Britain in Europe
This is mid-June in 1944. I can remember a day like this, four years ago-
in 1940. I was making a tour of the coast defense of South-East England. It was
a summer evening, of painful beauty. One could see the cliffs of France, that
France which today is opening her arms to the forces of liberation. All around
the coast were the mastheads and sometimes-for the tide was low-the funnels
of merchant ships which had fallen to the stealth of the U-boat or the treacherous
swoop of a dive-bomber. All along the coast were the beach defenses so pitiful
in retrospect, so formidable as they would have been in reality, with British hearts
behind them-so much more formidable, I do believe, than the vaunted West
Wall of the barbarian. I can remember so well, as I drove through the lovely
evening with the shadows lengthening across the sea and the young corn and the
hop-fields-I can remember so well my thoughts. And I can remember talking to
the commanding General. I see the tears of anger in his eyes when he said "To
think that they may be here tonight, to desecrate and befoul this lovely land." I
recall this now, not only because it is agreeable to reflect upon a great change in
our fortunes. Chiefly I remember it because it makes me understand that a nation
so jealous of its freedom as this nation could never seek by force to impose its will
upon the free peoples of Europe. We are a part of Europe, and Europe, I think,
can trust us not to betray her-or to seek to enslave her, or to be parties to her
I have been talking of freedom in a political context. But there is more to it
than that. I spoke a few minutes ago of the freedom to labor and to enjoy the
fruits of one's labor-Freedom from Want. Unless we can secure that freedom,
too, our plans for political and military security, no matter how carefully we lay

The Conditions of Freedom

them, will go awry. Political order and economic anarchy cannot exist in the same
How, then, is Freedom from Want to be achieved? How are we to be rid,
here and in all our countries, of the melancholy cycle of boom and slump which
was characteristic of the years before the war? How are we to rid ourselves of
the scourge of mass unemployment which covered our economic system like a blight
during those years and which, if we allow it to recur, will bring to nothing the
ardors and endurances, the glories and the triumphs, of this war?

Planning for Expansion
These are not questions to which we will find an answer except over a period of
years. Certainly I will not attempt to answer them now. Here and now I will
say two things. First, I will express to you my conviction that we shall not find
an issue out of our difficulties, here or in any other country, if we go back to the
expedients of restrictionism which sprang from the abnormal condition of world
trade after the last war, and which led through competitive currency depreciation
and aggressive dumping to stricter quotas and higher tariffs, to lessened consump-
tion and increased unemployment. It may be that the folly of man is such that
we shall be driven in the end to those expedients. But let us at least recognize
it for the folly that it is-and for the danger that it is. Let us admit that it will
be but a qualified victory that we win, if we get rid (as we shall) of Hitler only
to lie down beneath the feet of Dr. Schacht. And let us realize, too, that that
ingenious German would not have been as successful as he was had it not been
for the fact that he was part of a vast system of aggression which was never coun-
tered until it was too late. The weakness of the Schachtian system is that it only
operates when there is one Dr. Schacht-and when he has it all his own way.
Secondly, let me say that we shall not get a secure peace after this war unless
we can co-operate in the economic field as we co-operate in the political field,
unless we work together, the nations of the world, to develop for our mutual
benefit the resources which science and modern techniques of production made
available to us and unless we understand that the prosperity of other peoples, the
maintenance of a high level of employment in other countries, is as important to
us as prosperity and full employment in our own country. It is fashionable in
some quarters, I know, to jeer at the idea of an expanding world economy, just
as once it was fashionable to jeer at the railway, the motor-car or the aeroplane.
But the plain fact remains that unless we can find means vastly to increase the
production and the consumption and the exchange of goods, far above the level of
the pre-war years, there is very little hope of peace and no hope at all of plenty.
This is United Nations Day. A year from now, perhaps, many of us in this
room will be scattered. Let us hope that many of your guests who are with us
this afternoon will be back in their own homes when next we celebrate United
Nations Day-back in Norway, back in Poland, back in Czechoslovakia, back in
Belgium and Holland and France, building up once again their own national life.
And let us hope that they will remember-and that we shall remember-this
great comradeship in arms which has carried us so far along the road to victory.
Let us determine that our comradeship shall not be broken after the victory is

The Spirit of France
This is United Nations Day. When I look back upon the stirring events of the
past week, I cannot help thinking of one in particular of the United Nations. The
first battle of France was ended four years ago. The second battle of France has

British Speeches of the Day

just begun. This time we need not fear the outcome, and the day will come when
we can look across the Channel again to a free France in a free Europe in a
free world.
In more senses than one France is the epitome of Europe. France has suffered.
France has resisted. And France will be free. The spirit of France was never
touched by the German conqueror. It is burning today as brightly as ever it did.
And once again it will shed its effulgence over Europe as it has done for centuries
I wonder whether you read a day or two ago, the story of the two men of
Bayeux? One was a priest and one was a schoolmaster, and they had been sworn
enemies for twenty years. When the British troops were moving through the
town two men, wearing the arm-bands of the Resistance, met on the steps of the
Cathedral. "You?" said the priest. "You?" said the schoolmaster. And the two
old enemies discovered that, after all, they did not hate each other. I think that
there is a moral there, not only for France but for all of us. Whatever may have
divided us in the past, those who have been united in resistance to the tyrant
must never be divided again.
[Oficial Release]

Minister of Reconstruction
School of Hygiene and Tropical Medicine, June 23, 1944

During these war years, the scientist has regained his rightful place in the
confidence of the nation. He has indeed saved us from disaster and servitude by
the application of his knowledge to the production of the weapons of war.
But we must remember that while the benefits of scientific work may be
demonstrated through the engineering shops, the chemical works, or the manu-
facturing processes of the pharmaceutical chemist, these practical results are all of
them derived from the patient study and research of the men engaged in the
pursuit of pure knowledge, often without thought of the practical application that
will flow from it. The study of the fundamental sciences is the essential ground-
work on which the applied sciences build the superstructure that is seen and
In the past, science, like art, has been left to grow strong in poverty, it was
not always a purifying process, and I trust that the new age will have greater
wisdom in this regard and will realize that generosity of purse and position is a
stimulant to learning.
Dr. Mackintosh has referred in passing to various White Papers with which,
as Minister of Reconstruction, I have been concerned and which the Government
has submitted to Parliament as parts of a plan for the days to come.
These plans are simple in their conception. One of them aims at providing for
all the public all the benefits that a great and skillful profession has learnt about
the treatment and the prevention of disease.
I understand that the practitioners in that profession have some doubt about
the conditions of their service under such a plan. I hope they won't be unduly

The Crusade Against Ill-Health

fearful: "terms" are matters for negotiation-but the end at which we aim cannot
be a matter for controversy.
To every man, woman and child in this land all that is best and beneficial in
medical skill must be made available. Medical need can have no concern with
capacity to pay. The medical profession has a long and glorious history of
benevolence and public service. In spite of all their past endeavors there remains
in our midst much suffering and much physical incapacity which is preventable.
Common humanity demands that we should address ourselves to this problem and
seek and find a solution to it.
On grounds of sentiment and for the economic health of the nation, we must
deal with this issue of physical health, and I invite the practitioners of this great
profession to refrain from any friction that will engender heat rather than light,
and to join with us in seeking the ways that will open up even larger fields for
their healing skill. The public good must be served-and the doers of good must
have both opportunity and just reward.
I was glad to hear Dr. Mackintosh give a wide definition to social medicine.
There are ills of the economic body that are as important as those of the physical
body. In fact, I believe there is much causation between them.
Reconstruction must be a war against poverty and all the causes of poverty and
all the accumulated results of past poverty.
For the waging of this peacetime war, science must be mobilized with a
determination no less virile and sustained than that which inspires it now.
I want to see a crusade started in this country against ill-health and disease,
against malnutrition and underfeeding-here and throughout our Empire; against
inadequate housing and against unemployment.
These are ills that afflict our social life and demoralize it.
I do not believe them to be inevitable ills. With courage and with conscience
they will yield to treatment. Many of them are subjects within the purview of
Public Health, and for my part, I, as a public administrator for the time being,
find encouragement and hope in the broad conception of social medicine which
Dr. Mackintosh has commended to this School of Learning and Research today.
[Official Release]

Other Material Available from the
British Information Services Includes:

Britain. A monthly magazine. 10 cents a copy or $1 a year.

Information Division Circular. A fortnightly bulletin of
current background news on Britain. Free on appli-

Labor and Industry in Britain. Monthly. Free on appli-
Information papers on wartime Britain covering Taxation,
Education, Rationing, Women's Work, Industry, etc., may
be obtained free on application.

Britain Looks Ahead (Official Statements).
Post-War Planning (Unofficial Statements).
50 Facts about India.
The British Commonwealth and Empire.
The British Constitution.
Britain and the Common Pool.
John Britain.

(All available free on application.)

For catalogue of Films available, terms of hire, etc., apply
to any office of the British Information Services.

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