BRITAIN: Callaghan: Winning the Battle

British Prime Minister James Callaghan 's Labor Cabinet is six weeks old, and "Sunny Jim " is still enjoying an early crest of popular approval. Some of that can be traced to his government's success in negotiating a second-phase pay increase limit with the country's trade unions that is designed to halve Britain's critical inflation rate to about 6% by the end of next year. Another Callaghan asset is his personal openness and ebullience. At his new official home at No. 10 Downing Street, he tells visitors that he feels like a cardinal who has suddenly been named Pope: "God...

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