The crisis that never was
LETTERS
From John Biggs-Davison, MP, Dr lames S. Frew, J. S. .Whittingharn, Lady Miller, Dr H. Stuart Hogg, Stanley Loh, P. E. Mallon, Mrs Yvonne C. R. Brock, Rayner Heppenstall, Harold Falconer. the Rev Wynne Jones, David Williams, D. J. Teagle.
Sir: Mr Enoch Powell (19 January) argues for a free exchange rate. That might be one way of balancing the nation's payments, Another method would be to regulate imports from countries with which our balance is persistently adverse.
It seems clear that fixed exchange rates combined with non-discrimination in imports (apart from EFTA, and vestigial Commonwealth preferences) make for balance of payments trouble.
The Government is ready to plan almost every- thing except overseas trade. At home they over- spend in the -public sector for -the sake of a controlled economy and a social welfare state. Abroad they pursue economic liberalism and re- sign themselves to generally unfavoimable- balances with the us, the USSR and other countries. Selective restriction of Imports would, they say, 'invite retaliation';, a more likely explanation is that creditors do not like to be excluded by their debtors from export markets.
Every Labour government puts the country in fee to international finance. Their 'International Socialism' becomes the acceptance of international scrutiny and supervision of the exercise of national sovereignty. Labour policy becomes a squalid bargain between the blackmail of the left and the promptings of the nation's creditors.
But you cannot govern with 'package deals.' In the end something will have to give. Let it be the Government!
John Biggs-Darison House of Commons, London SW1
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