The question is a vital one for Americans. Our generation faces a

challenge that dwarfs those offered by Germany in 1917 or by Germany,

Japan, and Italy in 1941. Communist dominion stretches from the Elbe

to the Pacific, from the arctic to the jungles of Indochina. Nearly a

thousand million people serve tyrannical systems of government. Behind

the barbed wire and the empty-faced guards at the frontiers we can

hear the explosions of devastating weapons of war, we can discern the

ceaseless effort to achieve the world triumph of Communism.

To the leaders of all these millions, the United States is the enemy,

the people of America their principal obstacle in the march to world

power. As the most successful capitalist state, the United States is

now and will be in the future the principal target for the diplomatic

intrigues, the political subversion, and the economic competition of

the Communist bloc. The avenues of attack may be indirect, the means

may differ from place to place. But the enmity does not vary. America

is the enemy today, as it was yesterday, as it will be tomorrow.

Living at the apex of power and prosperity, it is easy for Americans

to be complacent, it is natural for them to fasten on hints of Russian

friendship. But it is folly to believe that the world situation is

improving because Nikita Khrushchev jests with correspondents in Moscow

or because a delegation of visiting farmers from the Ukraine is made up

of hearty extroverts. For the Communist challenge, as it has developed

since the death of Stalin, is as real as that which produced the cold

war of 1945-53. But because it is expressed in terms superficially less

belligerent than blockades and riots, violent speeches and editorials,

and overt instant and implacable opposition to Western policies,

the current challenge is far more insidious. Concepts and policies

developed to meet a purely military challenge will not suffice to

defeat it.

For a decade the United States has been busy "making" allies all over

the world. But you cannot "make" allies as you make Fords. You cannot

buy them as you buy bread at the baker's. Of course, in war, or at

war's approach, threatened nations will hurry for shelter under the

protecting wings of Uncle Sam. But we are facing a situation in which

every effort will be made to lure our friends away with protestations

of peaceful intent. Our real allies will be those who share common

interests and believe in the same principles of government and law.

Among these the British stand pre-eminent.

There was a wise old general commanding the United States Army in

Germany at the height of the cold war. At this time, early in 1951, no

one was sure what the next Russian move would be. Some of the general's

young officers were playing that engaging game of adding divisions of

various nationalities to assess Western strength. In the unbuttoned

atmosphere of after-dinner drinks they conjured up Italian army corps

and Greek and Turkish armored divisions. After ten minutes of this, the

idea that the Soviet Union might even think of a war seemed downright

foolish.

The general surveyed them with a wintry eye and then spoke. They were,

he said mildly, playing with shadows. If "it" came, the only people

to count on were the four divisions of British troops up on the left

flank. These are the only people on our side, he added, who think the

way we do and feel the way we do. These are the people who, in war or

in peace, in good times and bad, are going to stick.

This identity of broad political outlook is essential in American

assessments of Britain. It is more important in the long run than

concern over the power of the Trades Union Congress or competition for

overseas markets.

But, granting this identity of outlook and aims, we have the right to

ask ourselves if Britain remains a powerful and stable ally of the

United States in the leadership of the Western community. I believe

that the answer is in the affirmative, that with all her difficulties

and changes Britain will continue to play a leading role in the affairs

of the world, that she will not decline gradually into impotent

isolation.

Let us be quite clear about the future outline of British power. The

Empire is gone or going. The British know that. But the endurance, the

resolution, the intelligence that transformed a small island off the

coast of Europe into the greatest of modern empires is still there.

Beneath the complacency, the seeming indifference, it remains. The

best evidence is the series of social, economic, and political changes

that has transformed British life.

These changes, whatever individual Britons or Americans may think of

them, are not signs of complacency or indifference. They are rather

proofs that the society has not lost its dynamism, that its leaders

admit and understand their losses in political influence and economic

power and are determined to build a stronger society on the foundations

of the old.

Admittedly, the British make it difficult for their friends or their

enemies to discern the extent of change. They cling to the old

established forms. This is a characteristic that is almost universal

in mankind. When the first automobiles appeared, they were built to

resemble horse-drawn carriages. Men cling to the familiar in the

material and the mental. Think of our own devotion, in a period when

the nation has developed into a continental and world power, to a

Constitution drafted to suit the needs of a few millions living along

the eastern fringe of our country.

The changes in Britain have taken place behind a façade of what the

world expects from Britain. The Queen rides in her carriage at Royal

Ascot, the extremists of the Labor Party cry havoc and let slip the

dogs of political war, the Guards are on parade, and gentlemen with

derbies firm upon their heads walk down St. James's swinging their

rolled umbrellas. Literature, the stage, the movies, the appearance of

the visiting Englishman in every quarter of the globe has implanted a

false picture firmly in the popular mind.

"Mad dogs and Englishmen go out in the noonday sun." They also play

cricket and drink tea to the exclusion of other entertainments, live on

estates or in tiny thatched cottages, say "by Jove" or "cor blimey."

Their society is stratified, their workers are idle, their enterprise

is negligible. Britain itself is a land of placid country villages, one

large city (London), squires and lords, cockney humorists and rustics

in patched corduroy.

This is Britain as many Americans think of it. It is also, as I have

mentioned earlier, the Britain to which many of its inhabitants return

in their daydreams. But it is not contemporary Britain.

The real Britain is a hurrying, clamorous, purposeful industrial

nation. Its people, with a sense of reality any nation might envy, are

carrying out major changes in the structure of the national economy and

in the organization of society. The Welfare State may be considered

a blessing or a curse, according to political taste, but the nation

that first conceived and established it cannot be thought deficient in

imagination or averse to change.

The human symbol of modern Britain is not John Bull with his

country-squire clothes or the languid, elegant young man of the

West End theater, but an energetic, quick-spoken man of thirty-five

or forty. He is "in" plastics or electronics or steel. He talks of

building bridges in India, selling trucks in Nigeria, or buying timber

in Russia. In the years since the war he has been forced to supplement

his education--he went to a small public school--with a great deal of

technical reading about his job. His home is neither an estate nor a

cottage but a small modern house. He wants a better house, a better

car in time. Indeed, he wants more of everything that is good in life.

He recognizes the need for change--and his own pre-eminence in the

economy of the nation is a sign of change. But by tradition he opposes

any change so rapid and revolutionary that it shakes the basis of his

society. Politically, he is on the left wing of the Conservative Party

or the right wing of the Labor Party. When in 1945 he left the Army

or the Navy or the Air Force his views were well to the left of their

present position. The thought that Britain's day is done has never

entered his head.

The moderation of his political outlook expresses an important trend in

British politics. This is the movement within both major parties toward

the moderate center and a reaffirmation of the national rather than the

party point of view. The antics of the extreme left and the extreme

right in British politics are entertaining and occasionally worrying.

But under present conditions neither group represents a dominant

doctrine, although in London, as in Washington, governments must make

gestures in the direction of their more extreme supporters.

This movement toward the center seems to express two deeply felt

national attitudes. One is that further experimentation in transforming

British society should be postponed until the changes that took

place in World War II and the decade that followed it have finished

their alteration of that society. There will be--indeed, there must

be--further alterations in the industrial economy, and these, of

course, will affect society. But I do not believe the British people

are now prepared for further sweeping, planned changes in their life

or would support such changes if they were to be proposed by either

political party.

The second attitude is a growing determination to face up to the

national danger. Successive governments have attempted to drive home

the lesson that Britain's economic peril is very real and that it is

not a transient matter; that exports and dollar balances and internal

consumption will be matters of great importance for years to come. As

the memories of pre-war Britain fade, and as a new generation that has

never experienced the national economic security of imperial Britain

gains power, awareness of the nation's real problems should take hold.

And because the British are a sensible people bountifully endowed

with courage and resource, they should be able to meet and defeat the

problems.

But at the moment the percentage of those who understand the national

position is too small. They must eternally contend against two

psychological factors in working-class opinion which we have already

encountered. One is the political lethargy of the new industrial

worker who, after centuries of shameful treatment, has emerged into

the sunlight of full employment, adequate housing, high wages, strong

industrial organization, political representation, amusements, clothes

and food that for decades have been out of the reach of Britain's

masses. This new working class has shown itself capable of great

self-sacrifice on behalf of its class interests and, let us never

forget, on behalf of its country in the last fifty years. But now,

having reached the home of its dreams, it has hung a "Do Not Disturb"

sign on the gate. Apparently it has done with sacrifice and realism.

To a certain extent this attitude is encouraged by the big national

newspapers. The emphasis on sport, crime, the royal family, and the

trivia of international affairs leaves inadequate space for the grim

realities of the long politico-economic struggle with Russia, and the

new working class remains uninformed about its real problems. A Prime

Minister or a Chancellor of the Exchequer may expound the realities of

the national position in a speech, but if people are not interested

enough to listen or to read, what good does it do?

Such a state of mind in an important section of the populace seriously

impedes national progress. When dollar contracts are lost because

of union squabbles there is something radically wrong with the

leadership exercised by the trade unions. Would the contracts be lost,

one wonders, if the union leaders had given their followers a clear

explanation of the importance of such contracts not only to one factory

in one industry but to the entire nation?

Admittedly, there are plenty of others in Britain who do not understand

the importance of the economic situation or the changes that have taken

place. But the attitude of a retired colonel in Bedford or a stout

matron in Wimbledon is not so important to the nation's welfare as that

of the members of the working class.

The second factor affecting the response of this class to the nation's

needs is the effect upon it of the economic depression of the years

between the two world wars. Again and again we have seen how the memory

of unemployment, of the dole, of endless empty days at labor exchanges,

of hungry children and women's stricken eyes has colored the thinking

of the working class. It is too ready to see the problems of the 1950's

in terms of its experiences of the 1930's. Consequently, it adopts

a partisan attitude toward political development and a reactionary

attitude toward industrial innovation.

There are those who argue that these attitudes will change as the

working class becomes more accustomed to its new condition of life and

place in the national pattern. This may prove true. But can Britain

afford to wait until the union leaders understand that each new machine

or industrial technique is not part of a calculated plan by the bosses

to return the workers to the conditions prevailing in South Wales in

1936?

This partisan approach to economic problems is as important a factor as

complacency and lethargy in obstructing adoption by the working class

of a national viewpoint toward the British economic predicament. The

British political system is a marvelously well-balanced one. But the

balance is disturbed now and has been for some years by the tendency of

organized labor to think almost exclusively in terms of its own rather

than national interests. Labor can with perfect justice retort that

when the middle class dominated British society it thought in terms of

its own interests, too. This is true, of course. The difference is that

the present national position is too precarious for blind partisanship.

Much is made in public speeches of the educational side of trade-union

work. It would seem that the great opportunity for the unions now is

in this field. Someone or some organization that enjoys the respect of

the workers must educate them out of their lethargy and out of their

memories of the past. The popular newspapers will not or cannot do

it--and, naturally, as largely capitalist, they would be suspected by

many of those most in need of such education. But the job must be done

if Britain is to benefit fully from the enterprise and ingenuity of her

designers and engineers.

Certainly the educational process would work both ways. A traveler in

Britain in the period 1953-6 would notice that in many cases there was

a difference between the TUC leaders' views about what the workers

thought and what the workers themselves thought. Many of the unions

have become too big. Contact between the leaders and the rank and file

is lost. The Communists take advantage of this.

Can the working class awaken to the necessities of Britain's position

and sublimate its agonizing memories and fierce hatreds in a national

economic effort? This is the big "if" in Britain's ability to meet the

economic challenge of today. I do not doubt that the working class will

respond again, as it has in the past, to a national emergency that is

as real, if less spectacular, than the one which faced the nation in

1940. This response, I believe, will develop as firmly, albeit more

slowly, under a Conservative government as under a Labor government

because it will be a development of the trend, already clearly evident,

in the new middle class to take a national rather than a class outlook

on Britain's problems. But the response must come soon.

We have seen how the present political alignment in Britain has

developed out of the political and economic circumstances of the years

since 1939. What of the future?

The Conservative government since the end of 1955 has been engaged in

a gigantic political gamble. It has instituted a series of economic

measures to restrict home spending. These measures are highly unpopular

with the new working class from whom the party has obtained surprising

support in recent elections. At the same time the Tory cabinet has not

provided as much relief from taxation as the old middle class, its

strongest supporters, demanded and expected after the electoral triumph

of May 1955. These are calculated political risks. The calculation is

that by the next general election, in 1959 or even 1960, the drive

to expand British exports will have succeeded in establishing a new

prosperity more firmly based than that of the boom years 1954 and 1955.

To attain this objective the Conservative government will have to

perform a feat of political tightrope-walking beyond the aspirations

of ordinary politics. The new prosperity can be achieved successfully,

from the political point of view, only if the measures taken to attain

it please the old middle class without offending Conservative voters in

the new middle class and the new industrial working class. This will

mean budgets in 1957 and 1958 that will relieve financial pressure

upon the first of these groups without alienating the other two, whose

interests are mutually antagonistic. It will mean that Britain's

defense commitments must be reduced and adjusted to the extent that the

savings will cut taxation of the old middle class but not to the extent

that the reduction of defense construction will affect the employment

of either the new middle class or the industrial working class.

This book was completed before the government's course was run. If

its policy succeeds, then Harold Macmillan must be accorded a place

in history not far below that of the greatest workers of political

miracles.

Had there been a general election in the winter of 1956-7, the Labor

Party would have won, although its majority would probably not have

been so large as its enthusiastic tacticians predicted. The party

should be able to appeal to the electorate at the next general election

with greater success than in 1955, providing certain conditions are met.

The big "if" facing the Labor Party concerns not abstruse questions

of socialist dogma but the oldest question in politics: the conflict

between two men. The men are Hugh Gaitskell, the leader of the

Parliamentary Labor Party, and Aneurin Bevan.

Nye Bevan remains a major force in British politics. He is the only

prominent politician who is a force in himself, a personality around

which lesser men assemble. Like the young Winston Churchill, he

inspires either love or hate. Untrammeled by the discipline of the

party, he can rally the left wing of the Labor movement. Simultaneously

he can alienate the moderates of the party, the undecided voters,

and the tepid conservatives who had thought it might be time to let

labor "have a go." If the next general-election campaign finds Bevan

clamoring for the extension of nationalization in British industry,

beckoning his countrymen down untrodden social paths, lambasting

Britain's allies, and scoffing at her progress, then the Labor Party

will be defeated.

I have known Aneurin Bevan for many years. For the weal or woe of

Britain, he is a man born to storm and danger. A sudden war, a swift

and violent economic reverse would brighten his star. In a crisis his

confidence, whether that of a born leader or a born charlatan, would

attract the many.

Barring such catastrophes, a reasonable stability in government is to

be expected. The Conservative majority in the House of Commons after

the 1955 election probably was a little larger than is customary in a

nation so evenly divided politically. Despite the rancor aroused by

the Suez crisis, there seem to be reasonable grounds for predicting the

gradual disappearance of Tories of the old type and of the belligerent

Labor leaders surviving from the twenties. The development of a

national outlook by both parties seems probable.

Americans need not be concerned over the fission of the British

political system into a multi-party one capable of providing a

government but incapable of government. Stability means, of course,

that British governments will know their own minds. In the complex,

hair-trigger world of today this is an important factor. It is equally

important in charting the future course of Britain. Nations that know

where they want to go and how they want to go there are not verging on

political senility.

This political stability is vital to Britain in the years of transition

that lie ahead. For it is in British industry that the greatest changes

will take place.

Britain is moving in new directions, economically, politically, and

socially. The base of this movement is industrial--a revolution in

power. The world's most imaginative, extensive, and advanced program

for the production of electricity from nuclear power stations is under

way. This magnificent acceptance of the challenge of the nuclear age is

also an answer to one of the key questions of 1945: how could British

industry expand and British exports thrive if coal yearly became

scarcer and more expensive to mine? The answer is nuclear energy, 5,000

to 6,000 megawatts of it by 1965.

The program for constructing twenty nuclear power stations in Britain

and Northern Ireland is the most spectacular part of the power program.

As coal will be vital to the economy for years to come, more economic

and more efficient mining methods also are regarded as a matter of

national urgency.

Throughout the nation's industrial structure there is an air of purpose

and enthusiasm. Five huge new steel plants will be started in 1957. An

ambitious program of modernizing the railroads and the shipbuilding

industry is well under way. The new industries that have developed

since 1945 and old industries now delivering for the export markets

are pushing British goods throughout the world: radar, radioactive

isotopes, electronic equipment, sleek new jet aircraft, diesel engines,

plastics, detergents, atomic power stations. All are part of Britain's

response to the challenge of change.

To fulfill present hopes, production and productivity must rise,

management must grasp the changed position of Britain in the world.

From the courted, she has become the courter, competing for markets

with Germany, Japan, Sweden, and the United States. Such competition

existed in the past, but now, with the cushion of overseas investments

gone, such competition is a true national battle. There is plenty of

evidence that a portion at least of industrial management in Britain

fails to understand these conditions. Such complacency is as dangerous

to the export drive as the unwillingness or inability of the industrial

worker to grasp the export drive's importance to him, to his factory,

to his union, and to his country.

Due emphasis should be given to such failings. But we must not forget

that the British are a great mercantile people, eager and ingenious

traders ready, once they accept its importance, to go to any length of

enterprise to win a market. It is also wise to remember that, although

circumstances have made the British share of the dollar market the

criterion of success, the British do extremely well in a number of

important non-dollar markets.

The attitude of the industrial working class to wage increases is a

factor in the drive to boost the exports on which the nation lives.

The modernization of British industry to meet the requirements of

the nation's economic position, alterations in management and sales

practices, higher production and productivity will not suffice to win

export markets if the wage level in industry continues to rise. A

steady rise will price Britain out of her markets. Should this occur,

the question of whether organized labor is to take kindly to automation

will become academic. The country cannot live without those markets.

Early in September of 1956 when the world was worrying over the Suez

Canal, _The New York Times_ carried a news item from Brighton, the

English seashore resort, that surely was as important to Britain as

anything Premier Nasser or Sir Anthony Eden or Mr. Dulles might say.

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