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LV NO. 11 DOWNING STREET
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CU MR JENKINS SOF: "NOW THERE MAY NOT....."
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TRANSCRIPT: JENKINS: NOW THERE WAY NOT AT FIRST SIGHT SEEM MUCH DIRECT CONNECTION BETWEEN PAYING A CHARGE FOR YOUR PRESCRIPTIONS WHEN YOU GO TO THE CHEMIST AND SELLING MORE GOODS IN CHICAGO OR SYDNEY OR TURIN. BUT, IN FACT ALL FORMS OF ECONOMY AT HOME AT A TIME WHEN OUR EXPORT HAVE BECOME MORE COMPETITIVE MAKES THIS MORE POSSIBLE. WE HAVE HAD A LOOK AT A WHOLE VARIETY OF UNPLEASANT BUT NOT UNFAIR METHODS BY WHICH THIS COULD BE DONE. THIS PRINCIPLE OF NOT TRYING TO DO TOO MUCH AT ONCE APPLIES WITH SPECIAL FORCE TO THE OTHER BIG CHANCE IN POLICY WE HAVE MADE. WE ARE WITHDRAWING MORE QUICKLY FROM THE FAR EAST AND THE MIDDLE EAST AND MAKING BIG CONSEQUENTIAL SAVINGS IN DEFENCE EXPENDITURE. WE ARE RECOGNISING THAT WE ARE NO LONGER A SUPERPOWER. BECAUSE OF OUR HISTORY THIS IS A MOST DIFFICULT FACT FOR BRITAIN TO ACCEPT ABOUT ITSELF, AND FOR SOME PEOPLE OUTSIDE TO ACCEPT ABOUT BRITAIN. BUT THERE IS NO GREATER RECIPE FOR DISASTER THAN THE PERSISTENT REFUSAL TO FACE UNWELCOME FACTS. WE SHALL CONTINUE TO PLAY AS MUCH PART AS WE REASONABLY CAN IN WORLD AFFAIRS. BUT IT MUST BE UNDERPINNED BY ECONOMIC STRENGTH AND NOT UNDERMINED BY ECONOMIC WEAKNESS. OUR PRESENT ECONOMIC POSITION IS EXTREMELY SERIOUS. FEW OF US CAN ESCAPE SOME RESPONSIBILITY FOR THIS; IT IS A CULMINATION OF MANY YEARS OF ECONOMICS WEAKNESS. BUT IT CAN BE REPRIEVED, NOT OVERNIGHT BUT FAIRLY QUICKLY. THE GOVERNMENT CAN AND MUST PLAY A MAJOR PART. IT WILL SEEK NO EASY WAY OUT, AND COURT NO QUICK POPULARITY, BUT IS DETERMINED TO ATTACK THE ROOT OF THE PROBLEM. THE GOVERNMENT CAN SOLVE NOTHING ON ITS OWN. IT CAN ONLY DO ITS OWN DUTY AND PROVIDE THE RIGHT FRAMEWORK FOR THE EFFORTS OF THE NATION. WITH THAT WE CHANGE THE WHOLE PROSPECT OF BRITAIN WITHIN A FEW YEARS.




Initials BHH/SGM


TELERECORDING/SOUND ON FILM

Script is copyright Reuters Limited. All rights reserved

Background: THE NEW CHANCELLOR OF THE EXCHEQUER, MR JENKINS, MADE HIS FIRST MINISTERIAL BROADCAST TO THE PEOPLE OF ??? TONIGHT; AND REMINDED THE BRITISH PEOPLE THAT BRITAIN COULD NO LONGER REGARD ITSELF AS ONE OF THE WORLD'S SUPER POWERS.

SPEAKING ABOUT TODAY'S ANNOUNCED CUTS IN DEFENCE EXPENDITURE, AND THE INTRODUCTION OF AUSTERITY MEASURES IN BRITAIN, MR JENKINS SAID BRITAIN WOULD CONTINUE TO PLAY AS MUCH PART AS IT REASONABLY COULD IN WORLD AFFAIRS, BUT SUCH SUPPORT MUST DEPEND UPON ECONOMIC SOUNDNESS AND STABILITY.