Britain: Heath's First Week

Champagne glasses clinked and beaming smiles were exchanged behind the doors of clubman's row on London's St. James's Street. Inside such traditional Tory haunts as White's and the Carlton, the good cheer was positively palpable. Board rooms in the City took on renewed bustle, and shopkeepers from Mayfair to Manchester exuded an air of optimism. Britain in general seemed overlaid with a vaguely comfortable feeling that the old masters were back in power.

While the Conservatives celebrated their unexpected victory, Prime Minister Edward Heath formed a government with great dispatch. Between a...

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