SIR: The UK is currently running its biggest trade deficit since 1990. This deficit mainly reflects higher imports. The trade deficit in goods and services almost trebled between January and February to a figure of £1.7b. These statistics expose the incompetent economic strategy of chancellor Gordon Brown. The chancellor's decision to give the Bank of England operations responsibility for setting short-term interest rates was politically unwise. The results of that decision are manifested in the loss of trade, jobs, and reduced investment by manufacturers.

In his letter to the governor of the Bank of England (May 6, 1997) Chancellor Brown wrote that: "The legislation will provide that if, in extreme economic circumstances, the national interest demands it, the Government will have the power to give instructions to the Bank on interest rates."

Now is the time for Chancellor Brown to give those instructions and bring down interest rates. Currently Britain's interest rates are the highest of any industrialised nation. Chancellor Brown should stop trying to cultivate an image for himself as an iron chancellor and instead should face reality. Without a cut in interest rates more trade, more jobs, and more homes will be lost. The Chancellor must act now!

Anthony Makara

Broadwalk, Westhoughton

Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.