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TOP SECRET
- 2-
The President
March 13, 1950
ployment in more productive activities. This pol-
icy finds expression in holding superfluous employ-
des in nationalized industries and in the influen-
cing of exports as well as home consumption of cer-
tain industries where business slackens.
Thus, in the political menoeuvering shead, we
can undoubtedly expect the Labor Government to
shape its policies to keep people in their jobs at
all costs. It will tend to make them less cooper-
ative in further liberalization of trade and pay-
ments with the Continent since such steps might
cause some temporary dislocations.
All agree also that the marked increased
strength of the Conservatives came in the first
place from the far better organization of the party
under the direction of Woolton. They got their
votes out. Woolton described to me the conduct of
the campaign along the following lines: He said
that they were successful in making the iesue a.s
between social advance and the socialization of
the State. They attempted to take credit for BOC-
ial progress R.S finding its origin in reports adop-
ted by the wartime Coalition Government. In any
event they made it clear that if in power they
would maintain the social programs already adopted
but would make them more efficient and less waste-
ful, thus being able to reduce taxes and increase
incentives. They hammered at nationalization as
an expanding interference with every private ac-
tivity - eventually the farms. In the middle of
the campaign they switched emphasis to attsck on
the housing shortage and the inefficiency and in-
capability of the Labor Government to take care
of this widespread need.
As to
F "NATIONAL
AND
TOP SECHET
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"ocrText": "TOP SECRET\n- 2-\nThe President\nMarch 13, 1950\nployment in more productive activities. This pol-\nicy finds expression in holding superfluous employ-\ndes in nationalized industries and in the influen-\ncing of exports as well as home consumption of cer-\ntain industries where business slackens.\nThus, in the political menoeuvering shead, we\ncan undoubtedly expect the Labor Government to\nshape its policies to keep people in their jobs at\nall costs. It will tend to make them less cooper-\native in further liberalization of trade and pay-\nments with the Continent since such steps might\ncause some temporary dislocations.\nAll agree also that the marked increased\nstrength of the Conservatives came in the first\nplace from the far better organization of the party\nunder the direction of Woolton. They got their\nvotes out. Woolton described to me the conduct of\nthe campaign along the following lines: He said\nthat they were successful in making the iesue a.s\nbetween social advance and the socialization of\nthe State. They attempted to take credit for BOC-\nial progress R.S finding its origin in reports adop-\nted by the wartime Coalition Government. In any\nevent they made it clear that if in power they\nwould maintain the social programs already adopted\nbut would make them more efficient and less waste-\nful, thus being able to reduce taxes and increase\nincentives. They hammered at nationalization as\nan expanding interference with every private ac-\ntivity - eventually the farms. In the middle of\nthe campaign they switched emphasis to attsck on\nthe housing shortage and the inefficiency and in-\ncapability of the Labor Government to take care\nof this widespread need.\nAs to\nF \"NATIONAL\nAND\nTOP SECHET"
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