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LONDON—At least four people died and more than 40 were rescued after a small boat crowded with migrants began to sink in the frigid waters of the English Channel, prompting the U.K. and French governments to launch a joint rescue mission. 

The deadly incident came a day after the U.K. government outlined a new plan to try to stop a surge in migrants crossing the channel on small boats, a wave of illegal immigration that has overwhelmed the British asylum system.