The prolonged conflict between employers and employed and among the great trade unions is the most serious friction within British society. Its critical effect upon Britain's present and future has been emphasized. I do not believe, however, that in the long run the men on both sides who hold their opinions so stoutly will be unable to compromise their difficulties in the face of the continuing national emergency. In the twenties and thirties such great convulsions in industrial relations as the General Strike were harmful but not catastrophic. The British economy was buttressed by overseas investments and by the possession of established export markets throughout the world. That situation no longer exists. Anything approaching the severity of a General Strike could break Britain. In the end, I believe, the extremists of both sides will realize this and will find in themselves the mental toughness--for it takes a hard mind to accept an armistice short of final victory in exchange for the promise of future benefits--to compose their differences and move toward a national rather than a partisan solution. Of course, Britain's difficulties are not confined to the home front. But I have consciously emphasized the importance of her internal problems because they reflect the nation's present position in the world and help to determine how Britain will act abroad. Just as the last decade has seen drastic changes in industrial direction in Britain, so the coming decade will witness changes equally great in the development of Britain's international position. Britain cannot, and would not if she could, build a new empire. But it is evident that the country intends to replace the monolithic concept of power with a horizontal concept. We will see, I am confident, a steady growth of Britain's ties with Europe and the establishment of Britain as a link between the Commonwealth nations and Europe. The British have fertile political imaginations. They are adroit in discussion and debate. After years of uncertainty a number of politicians of great influence are moving toward closer association with Europe. At the moment the Grand Design (a rather grandiose title for the British to use) is endorsed by Prime Minister Harold Macmillan, Foreign Secretary Selwyn Lloyd, Defense Minister Duncan Sandys, Chancellor of the Exchequer Peter Thorneycroft, and President of the Board of Trade Sir David Eccles. Given a change in government, I think we can assume that the idea would be supported, although enthusiasm would be somewhat less great, by the leaders of the Labor Party.