The British Prime Minister, Mr. James Callaghan, suggested on Monday (25 October) that the United?
The British Prime Minister, Mr. James Callaghan, suggested on Monday (25 October) that the United Kingdom may have to reconsider its attitude towards western defence if it were forced by creditors into a massive deflationary policy. He was speaking after a massive run on sterling, which forced the pound to its lowest ever level -- 1.57 U.S. dollars. The pound recovered later in the day to 1.59 dollars. The drop followed a report in the London Sunday Times newspaper that the International Monetary Fund wants to see the currency depreciate further to help British exports. Mr. Callaghan also commented on how wealthier countries could help Britain.