Nasty but Necessary

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Dispassionate Manner. The presentation of such bitter fiscal medicine might have scarred the career of many a public figure. It actually seemed to have enhanced the prestige of Jenkins, 47, who, in the wake of Foreign Secretary George Brown's resignation, has become the unofficial No. 2 man in the Labor Party behind Wilson, 52. A graduate of Oxford's Balliol College, Jenkins has a genial academic air about him. Financiers in the City regard him as a dependable, realistic economist, while both Labor and Tory M.P.s, many of whom have grown weary of Wilson's often devious tactics, like Jenkins for his straightforward manner.

Some Labor M.P.s, mindful that the party faces four by-elections this week, were unhappy about having to defend Jenkins' austerity budget before the voters. But Wilson passed the word that the Cabinet was solidly behind Jenkins and that no less allegiance was expected from the rank and file. Beyond any doubt, Jenkins' budget impressed the people who mattered most—the International Monetary Fund executives and the European central bankers. As news of his severe budget spread from one financial center to another, the value of the pound rallied on world markets. Clearly, Jenkins has undertaken the most impressive rescue operation yet for the pound—and for Britain.