In the general sketch which I gave last time of Britain’s progress since the war, I naturally had to say a good deal about her problems of overseas trade and payments. In this and the remaining lectures I want to concentrate more intensively on the prob­ lems of her external economic relations-with the other countries of the Commonwealth, with Europe, with the United States. It seems natural to begin by calling attention to the curious double position in which she finds herself as a country, so to speak, in her own right and as the centre of a group of coun­ tries now described in official language as the Scheduled Territories but commonly spoken of as the Sterling Area. This is both rather a tricky matter technically, and opens a window on to very large questions of political and economic policy.