Monday, Apr. 29, 1946

Steel Ramp?

Big Ben tolled a quarter after three when dapper John Wilmot, Labor's Minister of Supply, rose in the House of Commons. Confidently, he announced that the hour for Britain's third-largest heavy industry had struck. Said he: "The position of the steel industry and its importance in the national economy necessitate a large measure of public ownership. . . . For [the transition] period I propose to establish a control board. . . ." He gave no further details. It was Labor's vaguest policy statement to date. It was also Labor's greatest blunder.

Winston Churchill rammed his heavy glasses on his nose and rose to the attack. "It is quite clear that the Government have no plans of their own," he snorted. "Is this business or politics? This statement wears the aspect of a . . . thoroughly disreputable performance. . . . This whole affair is nothing but a political ramp!"* When harassed Prim& Minister Attlee refused to promise full debate before nationalization steps were taken, a Tory backbencher flung an excited "Hitler !" across the House at him. In one hour of hectic debate, Winston Churchill was on his feet 25 times, plainly relishing every minute of it. He had a good case, and worried Laborites knew it.

A Matter of Timing. Superficially, nationalization of Britain's steel looked easy,, A few big firms employed most of the half million workers. But those firms had grown into huge vertical combines, in which it would be difficult to divorce ownership of vast iron-ore mines, limestone quarries, brickworks, diesel-engine works, nut-&-bolt plants. Just what parts of the steel industry did Wilmot propose to nationalize?

Last December, at Government request, the British Iron and Steel Federation, had prepared a special report on re-equipment and reorganization of their industry. They had agreed to accept a considerable measure of Government control. Some Ministers, led by cautious House Leader Herbert Morrison, favored this compromise. But socialist planners, like capitalist governments, are susceptible to pressure groups. Nationalization of steel would appeal to the powerful Amalgamated Engineering Union, a key organization in the Labor Party's fight against the infiltration of British Communists; so Labor walked halfheartedly into a highly exposed position.

Steel was not one of the sick industries, like coal and textiles. Even Labor critics of the industry admitted that it had done a good job in 1939-45. Now, asked the Tories, how can the industry reconvert amid the uncertainty created by the Wilmot statement?

Wilmot and the less patient Laborites began to realize that socialism's clock had been a little fast. There was still plenty of fight left in the Tories. Before the Easter recess they won their first victory: Minister Wilmot announced that the Federation's special report, until then a cabinet secret, would be published.

*A coercive effort just inside the rules.

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