Britain: Maybe a Surplus-- Some Time?

At long last, the British balance of trade deficit is showing substantial improvement. Almost everyone was pleasantly surprised last week when the Board of Trade announced the August totals of imports and exports. Exports rose $70 million to $1.33 billion. Imports, under the government's austerity program, have decreased from $1.58 bil lion to $1.56 billion since July. The deficit, therefore, was a mere $229 million, the best Britain has done in 14 months.

Crossbows and Coffins. The rise in exports can be largely attributed to the fact that last November's devaluation of the pound is finally taking effect. Meanwhile,...