Britain: The Next-to-Last Defense

Prime Minister Harold Wilson's ninemonth-old austerity program has already cut Britain's trade deficit by almost half (to $72 million a month), but the pound remains very much under siege, and talk of devaluation early next fall still persists. Bankers from diverse parts of the world—Red China, Europe, the Middle East—have been converting their pounds into gold so rapidly that demand for bullion on the London market has soared to a post-Korean War high.

Last week the 21-nation Organization for Economic Cooperation and Development dismissed Britain's export performance as "consistently unsatisfactory." Seeking...

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