The Ancient Geek
Nothing wrong with your memory Mr Geek, it was a BA 74 which experienced a problem on departure from LAX, I believe an engine surge, so it was shut down. After talking to Ops continued Eastbound, reviewed the situation and continued, due to fuel planning, to Manchester.
As you say, UK CAA, BA and Boeing all agreed it was acceptable and I entirely concur. In the extremely unlikely event of a further engine problem they had the fallback of re-starting the surged engine.
Pilots get excited about engine out flight but remember the Americans went to the moon and back on only one engine and that was with 1960 technology.