THE ECONOMIC WEEKLY July 31, 1965 opposed to the present Mysore min­ It has neither the vision nor the cadres camps and to the "very intelligent" istry but ceaselessly propagate that the to engage the ruling party on economic advisors and civilians. All that matters country is not safe in Shastri's fumb­ issues or on ideological-political is that the final decisions taken should ling hand's. Their charge is the familiar grounds. It can only bank on parochial- not irritate too many people ton much one that none of the Prime Ministers ism and the general popular belief and too soon. So lone, as popular nerves decisions are really his own. It is al­ (more justified than not) that every are not ruffled too much the local most invariably the decision of the one Congress Minister is corrupt. For ihe Congress bosses could not care less. who has shouted the loudest and where Congress Ministry it is not too difu- And so it turned out that at the meet­ sonic pressure cannot be judged there culi. to call the PSP's bluff on the latter ing of the highest policy-making body is the famous consensus, which almost count as many of its leaders have far of the ruling party national problems always means everything to everybody. from savoury reputations. And as for figured only marginally. And the people In the Goa decision, following upon the parochialism, Nijalingappa has now of Bangalore, at least the more resticve Visakhapatnam report, they thought demonstrated that Mysoreans can find sections, demonstrated their anger over they had a wonderful opportunity to him as vociferous as the next person. Goa and not over national bankcaptcy pull down the prestige of both the All this excitment created exactly or the looming food crisis, kamaraj's Prime Minister and the Chief Minister. the right atmosphere for the AICC re-election is, of course, only to he Nijalingappa's threat of resignation meeting. Kutch, foreign exchange, food, welcomed but unless he goes out of rather pulled the carpet from under Fourth Plan size all these seem to be his way to build a group around a their feet passing out of the consciousness of programme he will not be more than The PSP opposition is really hard to most Congressmen. They are left to a powerful machineman. He has yet to demarcate from a dissident Congress chance, to counter-vailing pressures make the transition from bossdom to group. In this it is true to its origin. from the American or the socialist leadership.

FROM THE LONDON END Struggle for Tory Leadership

ALTHOUGH the struggle for the the new leader time to play himself this lead, a second ballot will be held leadership of the Conservative in before the election actually took where an overall majority for any one Party has been going on behind the place. candidate will he sufficient. The 15 scenes ever since Sir Alec Douglas- While many people have commented per cent lead will not be required. Home's appointment as the -compro­ on the fact that nothing has become If there is a deadlock on the second mise candidate after the Blackpool le- Sir Alec's political career so well as ballot, a third ballot will he held bacle, Sir Alec's announcement that his manner of leaving it, and have immediately. Only the lop three can­ he was relinquishing the leadership of pointed out that he is the first Con­ didates from the second baliot will the Party certainly came as a surprise servative leader in living memory who appear, and voters will have to cast to most observers. Indeed, only a little voluntarily decided to retire in the a second as well as a first preference. while before, Sir Alec had been say­ public interest, the political corres­ The candidate with the fewest first ing that he intended to lead the Party pondent of the Times points out quite preference votes will be eliminated, to victory in the next election. A rightly that the full truth is that Sir and the second preferences of his sup- number of factors finally decided Sir Alec is the first Conservative leader porters will be distributed aiming the Alec's mind, among them the National in peacetime to have been driven out other two so that a victor will finally Opinion Polls which rated his perfor­ by a Labour leader. "Sir Alec's resig­ emerge. mance, as opposed to that of Wilson, nation is now the bravest feather worn This article is written before the so low. That, coupled with the dis­ in Wilson's cap during the nine months first ballot on Tuesday (in which satisfaction and unrest within the of his Prime Ministership. Almost Edward Heath was chosen leader Ed). Conservative Party and the general single handed Wilson forced a large There are now" three contestants for belief, though never too openly part of the Conservative Party, in and the post, of whom Edward Heath and voiced, that the only hope for the outside Parliament, to accept that Sir Reginald Maudling have been in the Party was a change of leadership, must Alec would never be a match for him running for a very lone, time. Indeed, have convinced Sir Alec that now, if as a leader in the Commons or in Maudling was one of the possibilities ever, was the time to retire grace­ the country; and once he saw 'hat in 1963, but his flat and unemotional fully from his position and set in plain, Sir Alec brushed aside his ad­ speech at Blackpool ruled nim out of motion the new method of elect- visers and resigned". that time. Both Heath and Maudiing ing the leader of the Party—a method After the apalling scenes at the are said, at the moment, to be neck which had to be created largely to Blackpool Conference in 1963, the to neck, with the odds a little in wipe away the most unfavourable Tories are determined to behave like favour of Reginald Maudling because impression which had been created by gentlemen, in public at any rate, des­ of rumours that it was the plot of the way in which Sir Alec himself pite the private backbiting and push­ Heath's supporters during the 1922 had been selected. The fact that ing for place that has been going on. Committee meeting to push their own Harold Wilson had recently announc­ The new method of electing the Party candidate, which finally forced Sir ed, quite categorically, that there leader requires that at the first ballot, Alec's hand. At one time it was would be no autumn election, must the successful contender has to win thought that, it would be a contest have prompted Sir Alec to feel that by a 15 per cent lead over all other between Maudling and Heath who re­ in the circumstances, this would give candidates. If no candidate obtains present very much the new public 1195 July 31, 1965 THE ECONOMIC WEEKLY image that the Tory Party wishes to House of Commons, and that someone foreign bankers who hold Maudling present, as opposed to the old "grouse with his cut and thrust would be a responsible for the large deficit Britain moor' image, although their persona­ belter choice Labour leader than the built up during his period as Chancel­ lities are so completely different. How. amiable Maudling. Although both can­ lor of the Exchequer. ever, a new element has entered the didates stand for modernisation, many While last minute canvassing for simple in "the form of Enoch Powell believe that Heath is the more pur­ votes is going ahead, there is no doubt who has now come forward as !he posive of the two and would get more that the choice the Conservative Party third candidate. This makes it likely things done. They point, for example, is now facing is indeed a fundamental that no decision will be reached in the to his success in pushing through the one. While it is true that Sir Alec was first ballot and a second may become Resale Price Maintenance Act against never a success as Prime Minister, and necessary. strong opposition. They believe that that his resignation gave the Stock Enoch Powell is a very different ket­ what, is needed is a Prime Minister Market a shot in the arm, the present, tle of fish from both Heath and Maud- who is strong enough to take action, election is of crucial importance to the ling. He has sometimes been described however unpopular, since if Britain is Conservative Party since the man who as the keeper of the Conservative to emerge from the economic doldrums is elected at this ballot, particularly if Party's conscience. Powell has his own it is necessary that very unpopular he is one of the younger candidates, particular spartan brand of free-enter­ measures will have to be taken. Be­ will be the leader of the Conservative prise theology. It is understood that cause of the very nature of his per­ Party for perhaps some 20 years, It is, Powell agreed to stand for nomination sonality, Heath inspires fervent admir­ therefore, essential that the new leader because of ids high-principled desire to ers and bitter enemies, whereas the must, in view of Britain's present eco­ allow the Party to vote on his brand image projected by Maudling is much nomic situation, have a firm under­ of conservatism. Personally he is a man amiable and easy-going. It is said that standing of economic problems, and of great probity. He resigned with ly behind Maudling, together with the not, like Sir Alec, rely on matchsticks Thorneycroft and Birch. He is, how­ Tory ladies who see in him a more cosy to understand these. He must also be ever, a believer in. almost undiluted image. Both men have connections in able to match the supreme professiona­ laissez-faire. He is entirely opposed to the City. Heath is a director of the lism of Harold Wilson and stand up any kind of incomes policy and certain­ merchant bankers, Brown Shipley, while to the cut and thrust of parliamentary ly to all kinds of planning, He Maudling is a director of Kleinwort debates. In many respects, from the believes that unfettered private enter- Benson. Heath's appeal is mainly to Tory Party's own point of view, the prise is the best solution, and that the the young up-and-coming professionals wisest choice would perhaps be Edward man in Whitehall is almost invariably and white-collared folk, 'while Maud- Heath. wrong. On other matters, however, he ling's appeal is to the women and the is to the left of many Conservatives, as establishment. Some believe that Maud- evidenced by his speech on Hola and ling with his deceptive soft-sell appro­ his views on the abolition of the death ach will get better results for big busi­ Calico Mills penalty. His brand of conservatism has ness. Again, Maudling has the advant­ THE Polyvinyl Acetate plant of been labelled "Powellism" and it is. age of being married and leading a Ahmedabad Manufacturing and understood that he has won many con­ happy family life, whereas Heath is a Calico Printing Company, commonly verts among the younger MPs. Of bachelor (Though one of England's more known as Calico Mills, was commis­ course, some senior Tory backbenchers successful Prime Ministers was the sioned in February last. According to are upset by this intervention which younger Pitt who himself was a bache­ the 85th annual report of the directors, they feel will only delay the question lor!) the emulsions and solutions of PVA of the leadership and undo the good While Maudling gives the impression and copolymers placed on the market that the new democratic open election of someone who is perhaps more ex conform to the same quality standards as those of the well-known brands of procedure could have brought. Indeed, perienced and can take a wider long- the company's technical collaborators, some of them believe that his candi­ term view than Heath, he docs not Vinyl Products of the UK. Another dature may be the equivalent of "Gold- give the same impression of uncom­ significant feature of the company's waterism" in British politics. promising zeal and energy, or the pic­ working during the year to March ture of an activist who will do all he The two favourites, however, re­ last was that it was able to expand can to achieve results, and many re­ main Heath and Maudling, and .J- exports by 15 per cent to Rs 2.2 crores. lieve that what the Conservative Party though newcomers may enter the held It had the distinction of being the needs, particularly in view of the dif­ if the first ballot proves unsatisfactory largest exporter of cotton textiles to the — possible candidates may include ficult economic situation ahead, is an quality-conscious market of West Ger­ Thorneycroft, Selwyn Lloyd and Quen- active, zealous uncompromising leader many. lin Hogg--it does seem likely that. who will be able to take unpopular eventually either Heath or Maudling actions and will have the energy and The company secured from ICICI a will be elected. drive that is necessary to see them loan of Rs 24 lakhs in foreign cur­ through. Maudling's term as Chancellor rency to meet the foreign exchange It is difficult to judge the exact sup­ of the Exchequer in 1964, by economic component of the capital expenditure port that both these candidates at the standards, was certainly a disaster. Al­ of the Trychlor-Perchlor-Ethylene pro­ moment command. It is known that in though the balance of payments deficit ject. Plant and machinery for the pro- the industrial North, Heath is much was known to be devastating large in ject was ordered during the year. In more popular because of his hard-hit­ relation to Britain's reserved, Maudling spite of higher costs, the company was ting methods and his indomitable did nothing to arrest the domestic able to increase profitability as a result energy. Many believe that he would be boom or stop the external outflow of of the sustained efforts of the manage­ the ideal opponent of Wilson in the funds. Heath is more popular among ment. 1196