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This hardly looks like an economy in chronic decline.

Of course a great deal depends on what now happens to world prices : but there are encouraging signs that

their rise has been checked. Perhaps even more depends

on our ability to contain our internal costs : and in

the last resort it is the British people themselves who will decide whether we do or don't succeed in doing so. Nobody owes Britain a living. But I personally hold very strongly that in such a situation any British Government of any political party is entitled to look for public support in

Britain for a resolute effort to check inflation : and that

Britain in turn is entitled to look for the goodwill and the

support of all its traditional trading partners for a policy whose success is surely almost as important for them as it

is for herself. And here may I add, with great respect, and fully understanding how important the sterling balances issue is for Hong Kong, that after all that has happened since the war, Britain is entitled to ask that Hong Kong should not add to her balance of payments problem in the

critical months ahead.

The prize is great.

the war

Something we have never achieved since

sustained expansion with stability of prices : and it is within our grasp. Moreover anyone who thinks that

Britain is inescapably gripped by some chronic decline should

remember that now just round the corner there is an entirely new element which may have dramatic consequences for our economy. In a world energy crisis Britain will very

soon produce at least half of her greatly increased requirements

of oil from sources already known and there may well be a

lot more to come : to say nothing of our huge reserves of

good and workable coal. This is an immense advantage of which

we ourselves as yet seem hardly conscious.

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