1 APRIL 1966, Page 14

The Big Lie

SIR,—Mr Sherman asks how I reconcile approval of the Government's public spending cuts with their pledges on the social services before the 1964 election. Leaving aside that the full gravity of the payments deficit wasn't known at the time, Mr Sherman really ought to re-read The New Britain. This stated quite clearly that, apart from some extreme priorities like pensions, the long-term social programmes would de- pend on major improvements in the economy. Per-

haps the warnings should have been stronger. The fact remains that on countless occasions Harold Wil- son, George Brown and others stressed that the early going would be difficult, and indeed tough.

You now preach two panaceas—the Common Market (but our entry. however desirable, will de- mand tough talks and time); and 'planned devalua- tion,' this latter with no careful analysis, no scrutiny of the international implications. Yet neither plan is a substitute for the harsh truth that only by funda- mental, boot-strapping reconstruction at home can Britain win through.

For all its faults this administration has at least begun the arduous, uphill fight. Many of its long- term measures—prices and incomes policy, indica- tive planning, import substitution, regional develop- ment, spurs to greater competition in many fields, industry-by-industry reorganisation—are, or ought now to be, matters of national consensus. Some were started, albeit lamely and belatedly, by the Conserva- tives, and were indeed urged by yourself. Others may be needed—e.g. export subsidies and careful rationali- sation of the unions. However, it is because of this serious start over the last eighteen months that sen- sible people in the centre, not least in industry and management, will surely decide that the country's present leadership ought to have a fair five-year chance to show what they can do.

JONATHAN S. BOSWELL

17 York House, Turks Row, London, SW3