The Industrial Promotions Board was soon to be replaced by the Economic Development Board and James was touted to be the Chairman-designate (Straits Times 12 july 1959). But by this time differences between them over the role of private capital in economic development soon led to James’ marginalisation. Although James continued to remain in the Ministry of Finance until August 1961, he did not solicit trade union support for the development plan and the rift between James and Goh became irreversible.
The major sticking point between him and the moderates was the continuation of detention of those who had been detained under the Lim Yew Hock government. According to Seng Guo-quan, “while Puthucheary was willing to compromise with Goh on the question of capital’s role in development, it proved harder for him to concede on limiting political freedom in the nation’s political development”
James also came into conflict with the left. He would later relate how his vision of social democracy also differed from Lim Chin Siong’s understanding of democratic politics. [ oral history interview reel 6. See also his statement in straits times 21 August 1961]
