“…As shown elsewhere, Anglo-American co-operation in a number of highly sensitive areas continued despite British defence cuts, in particular, co-operation on Polaris and intelligence sharing. 11 However, what existing accounts have not highlighted is that the defence cuts were to have longer-term consequences. Most notably, when Callaghan succeeded Wilson as prime minister in April 1976 and confronted the International Monetary Fund (IMF) crisis of 1976-1977, the tactic of threatening further defence cuts to achieve financial support from the United States proved ineffective.…”