You will see a state of prosperity such as we have never had in my lifetime - nor indeed in the history of this country Harold Macmillan, British Prime Minister

"Indeed let us be frank about it - most of our people have never had it so good.

"Go around the country, go to the industrial towns, go to the farms and you will see a state of prosperity such as we have never had in my lifetime - nor indeed in the history of this country."

The main issue was how to maintain growth and employment but keep prices steady - what he called the "64,000-dollar question".

His answer was to increase production in a combined operation involving not just the government but also industry and the public.

"What we need is restraint and commonsense - restraint in the demands we make and commonsense on how we spend our income."

He took the opportunity to attack the "doctrinaire nightmare" of socialism and its policies of nationalisation and central planning.

He reminded his audience not to forget "rationing, shortages, inflation, and one crisis after another in our international trade" under a Labour government.

On the question of colonialism, Mr Macmillan said people of the Commonwealth looked to Britain for leadership and were gradually gaining their freedom.

In March, Ghana became the first Black African nation to gain independence from the UK. Other British colonies are expected to follow suit in the next few years.

"The pattern of the Commonwealth is changing and with it is changing Britain's position as the Mother Country. Our children are growing up."

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