WHEN the definitive history of post-war Britain comes to be written,

Harold Wilson must be recognised as the outstanding Prime Minister of

the period. His policies, had they come to fruition, stood a better

chance of producing ''a nation at ease with itself'' than anything

devised by the present Prime Minister.

Wilson's legacy to the country should have been a strong economy

founded upon technology and full employment; a humane social policy

overseen by a respected public service sector ensuring that there could

never be, in this country, the sort of social and industrial wasteland

with which we are only too familiar today; a nation protected by a

realistic defence policy fully compatable with Britain's changed status

in the world order. He even made a more than respectable attempt at

reforming industrial relations.

James Callaghan frustrated Wilson's efforts in this field. It was

poetic justice that the downfall of his administration was, in part,

brought about by the intransigence of the unreconstructed trade-union

movement. He had to drink from the chalice he poisoned. James

Callaghan's place in history is assured as an unwitting architect of

Margaret Thatcher's victory in 1979.

Those who dispute my forecast about Harold Wilson's place in history

by claiming it for Margaret Thatcher misunderstand recent events. Her

period in office will be seen as a destructive throwback to the

political economy of Sir Charles Trevelyan and Sir Charles Wood, both of

the mid-nineteenth century, and of Neville Chamberlain in his

incarnation as Chancellor of the Exchequer in our century.

We must never lose sight of the fact that she would have lost her

first General Election fought as Prime Minister because of the havoc she

wrought on our industrial base, had it not been for General Galtieri

whose occupation of the Falklands enabled her to embark on her

Palmerstonian frolic in the South Atlantic.

The irony of the whole Falklands episode was that one discredited

leader in seeking to retain power by military opportunism enabled

another discredited leader to save her Government by the very same

means.

John W Elliott,

19 Gordon Avenue,

Bishopton.