Mr Chairman, ladies and gentlemen, most my Cabinet colleagues have started off speeches of reply by paying very deserved tributes to their junior Ministers. Number 10 I have no junior . There is just Denis and me, I could not do without him. am, however, very fortunate in having marvelous deputy who is wonderful in places at all times in all - Willie Whitelaw.

At our party last year I said that the in which the Government were engaged - change the national attitude of - was the most challenging to any British Administration since the war. is exhilarating. This week we Conservatives been taking stock, discussing the achievements, set-backs and the work that lies as we enter our second parliamentary . As you said Mr Chairman our have been stimulating and our debates been constructive. This week has demonstrated we are a party united in , strategy and resolve. And we actually one another.
When I am asked a detailed forecast of what will in the coming months or years remember Sam Goldwyn's advice: "Never prophesy, about the future." (Interruption from the .) Never mind, it is wet outside. expect that they wanted to come . You cannot blame them; it is better where the Tories are. And - and perhaps they - will looking to me this afternoon for indication of how the Government see task before us and why we tackling it the way we are. I begin let me get one out of the way.
This week Brighton we have heard a good about last week at Blackpool. I have a little more to say that strange assembly later, but for moment I want to say just . Because of what happened at that , there has been, behind all our this week, a heightened awareness that , more than ever, our Conservative government succeed. We just must, because now is even more at stake than had realised. There are many things be done to set this nation the road to recovery, and I not mean economic recovery alone, but new independence of spirit and zest achievement.
It is sometimes said that of our past we, as a , expect too much and set our too high. That is not the I see it. Rather it seems me that throughout my life in our ambitions have steadily shrunk. Our to disappointment has not been to our stride but to shorten the to be covered. But with confidence ourselves and in our future what nation we could be!
In its seventeen months this Government have laid foundations for recovery. We have undertaken heavy load of legislation, a load do not intend to repeat because do not share the Socialist fantasy achievement is measured by the number laws you pass. But there was formidable barricade of obstacles that we to sweep aside. For a start, his first Budget Geoffrey Howe began rest incentives to stimulate the abilities inventive genius of our people. Prosperity not from grand conferences of economists by countless acts of personal self-confidence self-reliance.
Under Geoffrey 's stewardship, Britain repaid $3,600 million of international debt, which had been run up by predecessors. And we paid quite a of it before it was due. the past twelve months Geoffrey has exchange controls over which British Governments dithered for decades. Our great enterprises now free to seek opportunities overseas. will help to secure our living long after North Sea oil has out. This Government thinks about the . We have made the first crucial in trade union law to remove worst abuses of the closed shop, restrict picketing to the place of of the parties in dispute, and encourage secret ballots.
Jim Prior has all these measures through with the of the vast majority of trade members. Keith Joseph, David Howell, John and Norman Fowler have begun to down the monopoly powers of nationalisation. to them British Aerospace will soon open to private investment. The monopoly the Post Office and British Telecommunications being diminished. The barriers to private of electricity for sale have been . For the first time nationalised industries public utilities can be investigated by Monopolies Commission - a long overdue .
Free competition in road passenger transport travellers a better deal. Michael Heseltine given to millions - yes, millions - council tenants the right to their own homes.
It was Anthony who chose for us the goal "a property-owning democracy". But for all time that I have been in affairs that has been beyond the of so many, who were denied right to the most basic ownership all - the homes in which live.
They wanted to buy. Many afford to buy. But they happened live under the jurisdiction of a council, which would not sell and not believe in the independence that with ownership. Now Michael Heseltine has them the chance to turn a into reality. And all this and lot more in seventeen months.
The continues to refer with relish to death of capitalism. Well, if this the death of capitalism, I must that it is quite a way go.
But all this will avail little unless we achieve our prime objective - the defeat of inflation. destroys nations and societies as surely invading armies do. Inflation is the of unemployment. It is the unseen of those who have saved.
No which puts at risk the defeat inflation - however great its short-term - can be right. Our policy the defeat of inflation is, in , traditional. It existed long before Sterling embellished the Bank of England Quarterly , or "monetarism" became a convenient term political invective.
But some people talk if control of the money supply a revolutionary policy. Yet it was essential condition for the recovery of of continental Europe. Those countries knew was required for economic stability. Previously, had lived through rampant inflation; they that it led to suitcase money, unemployment and the breakdown of society . They determined never to go that again. Today, after many years of self-discipline, they have stable, prosperous economies able than ours to withstand the of world recession.
So at international to discuss economic affairs many of fellow Heads of Government find our not strange, unusual or revolutionary, but , sound and honest. And that is they are.
Their only question is: " Britain the courage and resolve to the discipline for long enough to through to success?" Yes, Mr Chairman, have, and we shall. This Government determined to stay with the policy see it through to its conclusion. is what marks this administration as of the truly radical ministries of -war Britain. Inflation is falling and should to fall.
Meanwhile we are not of the hardships and worries that the conquest of inflation. Foremost among is unemployment. Today our country has than 2 million unemployed.
Now you try to soften that figure in dozen ways. You can point out - it is quite legitimate to so - that 2 million today not mean what it meant in 1930s; that the percentage of unemployment much less now than it was .
You can add that today many married women go out to work. can stress that, because of the birthrate in the early 1960s, there an unusually large number of school this year looking for work and the same will be true for next two years. You can emphasise about a quarter of a million find new jobs each month and go off the employment register. And can recall that there are nearly million people in jobs compared with about 18 million in the 1930s. can point out that the Labour conveniently overlooks the fact that of 2 million unemployed for which they us, nearly a million and a were bequeathed by their Government.
But all that has been said the remains that the level of unemployment our country today is a human . Let me make it clear beyond . I am profoundly concerned about unemployment. dignity and self respect are undermined men and women are condemned to . The waste of a country's most assets - the talent and energy its people - makes it the duty of Government to seek a and lasting cure.
If I could a button and genuinely solve the problem, do you think that I not press that button this instant? anyone imagine that there is the political gain in letting this unemployment , or that there is some obscure religion which demands this unemployment as of its ritual? This Government are the only policy which gives any of bringing our people back to and lasting employment. It is no that those countries, of which I earlier, which have had lower rates inflation have also had lower levels unemployment.
I know that there is real worry affecting many of our . Although they accept that our policies right, they feel deeply that the of carrying them out is falling more heavily on the private than the public sector. They say that public sector is enjoying advantages but private sector is taking the knocks at the same time maintaining those the public sector with better pay pensions than they enjoy.
I must you that I share this concern understand the resentment. That is why and my colleagues say that to to public spending takes away the money and resources that industry needs stay in business let alone to . Higher public spending, far from curing , can be the very vehicle that jobs and causes bankruptcies in trade commerce. That is why we warned authorities that since rates are frequently biggest tax that industry now faces, in them can cripple local businesses. must, therefore, learn to cut costs the same way that companies have .
That is why I stress that those who work in public authorities for themselves large pay increases they less to be spent on equipment new buildings. That in turn deprives private sector of the orders it , especially some of those industries in hard pressed regions. Those in the sector have a duty to those the private sector not to take so much in pay that they others unemployment. That is why we out that every time high wage in nationalised monopolies lead to higher for telephones, electricity, coal and water, can drive companies out of business cost other people their jobs. If money like water was the answer our country's problems, we would have problems now. If ever a nation spent, spent, spent and spent again, has. Today that dream is over. of that money has got us but it still has to come somewhere. Those who urge us to the squeeze, to spend yet more indiscriminately in the belief that it help the unemployed and the small are not being kind or compassionate caring.
They are not the friends the unemployed or the small business. are asking us to do again very thing that caused the problems the first place. We have made point repeatedly.
I am accused of or preaching about this. I suppose is a critic's way of saying ", we know it is true, but have to carp at something." I not care about that. But I care about the future of free , the jobs and exports it provides the independence it brings to our . Independence? Yes, but let us be what we mean by that. Independence not mean contracting out of all with others. A nation can be but it will not stay free long if it has no friends no alliances. Above all, it will stay free if it cannot pay own way in the world. By same token, an individual needs to part of a community and to that he is part of it. is more to this than the to earn a living for himself his family, essential though that is.
course, our vision and our aims far beyond the complex arguments of , but unless we get the economy we shall deny our people the to share that vision and to beyond the narrow horizons of economic . Without a healthy economy we cannot a healthy society. Without a healthy the economy will not stay healthy long.
But it is not the that creates a healthy society. When State grows too powerful people feel they count for less and less. State drains society, not only of wealth but of initiative, of energy, will to improve and innovate as as to preserve what is best. aim is to let people feel they count for more and more. we cannot trust the deepest instincts our people we should not be politics at all. Some aspects of present society really do offend those . Decent people do want to do proper job at work, not to restrained or intimidated from giving value money. They believe that honesty should respected, not derided. They see crime violence as a threat not just society but to their own orderly of life. They want to be to bring up their children in beliefs, without the fear that their will be daily frustrated in the of progress or free expression. Indeed, is what family life is all .
There is not a generation gap a happy and united family. People to be able to rely on generally accepted standards. Without them you not got a society at all, have purposeless anarchy. A healthy society not created by its institutions, either. schools and universities do not make great nation any more than great do. Only a great nation can and involve great institutions - of , of healing, of scientific advance. And great nation is the voluntary creation its people - a people composed men and women whose pride in is founded on the knowledge of they can give to a community which they in turn can be .
If our people feel that they part of a great nation and are prepared to will the means keep it great, a great nation shall be, and shall remain. So, can stop us from achieving this? then stands in our way? The of another winter of discontent? I it might.
But I prefer to that certain lessons have been learnt experience, that we are coming, slowly, , to an autumn of understanding. And hope that it will be followed a winter of common sense. If is not, we shall not be from our course.
To those waiting bated breath for that favourite media , the "U" turn, I have only thing to say. You turn if want to. The lady's not for . I say that not only to but to our friends overseas and to those who are not our .
In foreign affairs we have pursued national interest robustly while remaining alive the needs and interests of others. have acted where our predecessors dithered here I pay tribute to Lord . When I think of our much-travelled Secretary I am reminded of the , you know the one I mean, "The peer that reaches those foreign that other peers cannot reach."
Long we came into office, and therefore before the invasion of Afghanistan I pointing to the threat from the . I was accused of scaremongering. But have more than justified my words. Marxism is ideologically, politically and morally . But militarily the Soviet Union is powerful and growing threat.
Yet it Mr. Kosygin who said "No peace country, no person of integrity, should indifferent when an aggressor holds human and world opinion in insolent contempt." agree. The British Government are not to the occupation of Afghanistan. We not allow it to be forgotten. and until the Soviet troops are other nations are bound to wonder of them may be next. Of there are those who say that speaking out we are complicating East-West , that we are endangering detente. But real danger would lie in keeping . Detente is indivisible and it is two-way process.
The Soviet Union cannot wars by proxy in South-East Asia Africa, foment trouble in the Middle and Caribbean and invade neighbouring countries still expect to conduct business as . Unless detente is pursued by both it can be pursued by neither, it is a delusion to suppose . That is the message we shall delivering loud and clear at the of the European Security Conference in in the weeks immediately ahead.
But shall also be reminding the other in Madrid that the Helsinki Accord supposed to promote the freer movement people and ideas. The Soviet Government's so far has been a campaign repression worse than any since Stalin's . It had been hoped that Helsinki open gates across Europe. In fact, guards today are better armed and walls are no lower. But behind walls the human spirit is unvanquished.
workers of Poland in their millions signalled their determination to participate in shaping of their destiny. We salute . Marxists claim that the capitalist system in crisis. But the Polish workers shown that it is the Communist that is in crisis. The Polish should be left to work out own future without external interference.
At Party Conference, and every November in , we used to face difficult decisions Rhodesia and over sanctions. But no . Since we last met the success Lancaster House, and thereafter in Salisbury - success won in the face all the odds - has created respect for Britain. It has given hope to those grappling with the problems of Southern Africa. It has the Commonwealth new strength and unity. it is for the new nation, , to build her own future with support of all those who believe democracy has a place in Africa, we wish her well. We showed Rhodesia that the hallmarks of Tory are, as they have always been, and resolve. Not for us the fantasies of unilateral disarmament, of withdrawal NATO, of abandoning Northern Ireland.
The of the Left on defence increases the dangers which we face loom . We for our part, under Francis 's brilliant leadership, have chosen a policy which potential foes will respect.
are acquiring, with the co-operation of United States government, the Trident missile . This will ensure the credibility of strategic deterrent until the end of century and beyond, and it was important for the reputation of Britain that we should keep our independent deterrent as well as for our here.
We have agreed to the of Cruise missiles in this country. unilateralists object, but the recent willingness the Soviet Government to open a round of arms control negotiations shows wisdom of our firmness.
We intend maintain and, where possible, to improve conventional forces so as to pull weight in the Alliance. We have wish to seek a free ride the expense of our Allies. We play our full part.
In Europe have shown that it is possible combine a vigorous defence of our interests with a deep commitment to idea and to the ideals of Community.
The last government were well that Britain's budget contribution was grossly . They failed to do anything about . We negotiated a satisfactory arrangement which give us and our partners time tackle the underlying issues. We have the difficulties of New Zealand's lamb with the Community in a way protects the interests of the farmers New Zealand while giving our own and our own housewives an excellent , and Peter Walker deserves to be on his success. Now he is -thirds on his way to success in important progress towards agreement on a fisheries policy. That is very important our people. There are many, many whose livelihoods depend on it.
We many other problems in the Community, I am confident that they too yield to the firm yet fair which has already proved so much effective than the previous Government's five of procrastination.
With each day it clearer that in the wider world face darkening horizons, and the war Iran and Iraq is the latest of a deeper malady. Europe and America are centres of stability in increasingly anxious world. The Community and Alliance are the guarantee to other that democracy and freedom of choice still possible. They stand for order the rule of law in an when disorder and lawlessness are ever widespread.
The British Government intend to by both these great institutions, the and NATO. We will not betray .
The restoration of Britain's place in world and of the West's confidence its own destiny are two aspects the same process. No doubt there be unexpected twists in the road, with wisdom and resolution we can our goal. I believe we will the wisdom and you may be that we will show the resolution.
his warm hearted and generous speech, Thorneycroft said that, when people are upon to lead great nations they look into the hearts and minds the people whom they seek to . I would add that those who to govern must in turn be to allow their hearts and minds lie open to the people.
This I have tried to set before some of my most deeply held and beliefs. This Party, which I privileged to serve, and this Government, I am proud to lead, are in the massive task of restoring and stability to our people.
I always known that that task was . Since last week it has become more vital than ever. We close Conference in the aftermath of that utopia unveiled at Blackpool. Let Labour's nightmare of the left be the for us to dedicate with a urgency our every ounce of energy moral strength to rebuild the fortunes this free nation.
If we were fail, that freedom could be imperilled. let us resist the blandishments of faint hearts; let us ignore the and threats of the extremists; let stand together and do our duty, we shall not fail.