  The effects of chain disorder on superconductivity in YBa_2Cu_3O_{7-\delta}
are discussed within the context of a proximity model. Chain disorder causes
both pair-breaking and localization. The hybridization of chain and plane
wavefunctions reduces the importance of localization, so that the transport
anisotropy remains large in the presence of a finite fraction $\delta$ of
oxygen vacancies. Penetration depth and specific heat measurements probe the
pair-breaking effects of chain disorder, and are discussed in detail at the
level of the self-consistent T-matrix approximation. Quantitative agreement
with these experiments is found when chain disorder is present.
