1.
SV.POLICEMEN OUTSIDE FRONT DOOR OF NO.10
0.03

2.
SV.PAN...UNION LEADERS LEAVING
0.14

3.
SV.PAN...DITTO
0.23

4.
SV.MR. GREEN, N.U.R. SECRETARY LEAVING
0.27

5.
CU.MR. GREEN TALKS TO PRESS
0.37

6.
SV.PRESSMEN
0.39

7.
SV.MR. GREEN LEAVES
0.44

8.
SV.MRS. BARBARA CASTLE, MINISTER OF TRANSPORT, MR. RAY GUNTER, MINISTER FOR LABOUR, LEAVING NO. 10 FOLLOWED BY MR. WILSON
0.53



Initials PB/SB/MGT/JG



Script is copyright Reuters Limited. All rights reserved

Background: THE BRITISH PRIME MINISTER, MR. WILSON, EARLY THIS MORNING (SATURDAY) SUCCEEDED IN AVERTING A NATIONAL RAIL STRIKE WHICH WAS TO HAVE BEGUN AT MIDNIGHT TOMORROW.

MR. WILSON SUMMONED LEADERS OF THE NATIONAL UNION OF RAILWAYMEN TO HIS RESIDENCE AT NUMBER TEN DOWNING STREET YESTERDAY EVENING AFTER EARLIER ATTEMPTS BY TWO MINISTERS TO PERSUADE THEM AGAINST STRIKING HAD FAILED.

THE RAIL STRIKE WAS CALLED TO PROTEST AGAINST THE GOVERNMENT'S REFUSAL TO BOW TO UNION DEMANDS TO BRING A PAY INCREASE FORWARD FROM OCTOBER UNTIL APRIL. MR. WILSON AND HIS MINISTERS MADE IT CLEAR THE GOVERNMENT WOULD NOT GO BEYOND THE CONCESSIONS IT HAD ALREADY OFFERED.

THE DECISION BY THE UNION TO CALL OFF THE STRIKE IS INTERPRETED AS A VICTORY FOR MR. WILSON AND HIS GOVERNMENT'S INCOMES RESTRAINT POLICY, A VITAL PART OF THE GOVERNMENT'S ECONOMIC PLANNING PARTICULARLY IN BRINGING THE BALANCE OF PAYMENTS TO A STRONGER POSITION.

THE REVERSAL OF THE STRIKE DECISION IS ALSO CONSIDERED AS A BOOST FOR THE LABOUR GOVERNMENT AND COULD PROVE VALUABLE IF MR. WILSON DOES AFTER ALL DECIDE TO HAVE A GENERAL ELECTION NEXT MONTH OR IN APRIL, AS IT HAVE BEEN SUGGESTED HE WILL, IN A BID TO INCREASE HIS PARTY'S SMALL PARLIAMENTARY MAJORITY.

THE PRIME MINISTER IS UNDERSTOOD TO HAVE OUTLINED TO THE UNION LEADERS THE LONG TERM CONSEQUENCES THEIR STRIKE COULD HAVE ON PRODUCTION AND THE BRITISH ECONOMY.