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It was intended to remain in force until April 1962, thereby providing the government with ‘a breathing space’, during which a more permanent wages policy could be formulated. Macmillan was determined to avoid a policy which involved further deflation, as favoured by the Treasury, the Bank of England, and some backbench neo-liberals. Not only did Macmillan disagree with the view that wage inflation could be cured by a general, orthodox policy of deflation, as ‘slavishly’ followed by successive Chancellors in the inter-war period; he also clearly remembered his early political career, when he was MP for Stockton-on-Tees during the ‘Great Depression’ of the 1930s.

Nothing would have been more damaging to the Conservative Party’s attempt at building bridges than introducing legislation to regulate the activities and affairs of the trade unions. By avoiding trade union legislation, the Conservatives’ parliamentary leadership hoped to gain the trust and confidence of the trade union movement. Second, the Conservative Party was compelled to accept that the Labour Party was now a major political and electoral force, enjoying substantial working-class support.

Or, as Macmillan remarked, the involvement of the TUC in the NEDC ‘would at least lead them to greater understanding of the real problems with which the nation was confronted’ (Harold Macmillan 1973:51). Indeed, by this time, some senior Conservatives had become convinced of the necessity of a permanent incomes policy, Macmillan and the Chancellor, Maudling, being two of the most prominent proponents.

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A Comment on the Statement of the Communist Party of the USA by Renmin Ribao editorial

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