430: Trade and Commerce 1947-1967 Flashcards
Generally, why was the Empire so economically important to Britain pre 1960?
- Britain lacked the foreign exchange reserves to source large amounts of imports from other parts of the world.
- Therefore the empire provided vital imports to Britain, especially of food.
In 1956, what percentage of all overseas investments from the UK were based in Empire governments or businesses?
60%
How did the percentage of total British imports compare between commonwealth countries and Western Europe in 1948?
Imports from the Commonwealth (44.9) were over double that of imports from Western Europe (20.5).
How did the percentage of total British imports compare between commonwealth countries and Western Europe in 1965?
Imports from Western Europe (30.6) were marginally larger than those from the Commonwealth (29.8).
How did the percentage of total British exports compare between commonwealth countries and Western Europe in 1948?
Exports to the Commonwealth (46.1) were almost double those to Western Europe (24.8).
How did the percentage of total British exports compare between Commonwealth countries and Western Europe in 1948?
Exports to Western Europe (32.5) were greater than those to the Commonwealth (27.9).
What do the import and export figures for Western Europe and the Commonwealth show in the years 1948-1965?
The percentages show a simultaneous rise in economic interest in Western Europe, and a decline in interest in the Commonwealth.
What were 3 reasons for Western Europe’s relatively speedy financial recovery from WW2?
- US Marshall Aid loans
- Advances in science and technology
- The new climate of liberal democracy which favoured private enterprise.
What general economic state was Western Europe in by 1950?
- Almost full employment
- Rising living standards
- High growth rates.
When was the EEC created?
1957
Why didn’t Britain want to join the EEC when it was first created in 1957?
Britain trusted its ability to rely on trade with Empire, as it had been doing.
What group did Britain set up to rival the EEC?
The EFTA, European Free Trade Association
How successful was the EEC? What did this mean for Britain?
The EEC flourished. Britain was forced to decide between having its trading future in the empire or in Europe.
How significant was Europe to British trade in 1960? What did this mean for Britain?
European exports outweighed those to empire, so Britain applied to join the EEC
What happened to Britain’s applications to the EEC? Why?
Britain was rejected in 1963 and again in 1967
- This was partially because Britain asked for special concessions to be made for British trade with the Commonwealth.
When was Britain allowed to join the EEC?
1973
Why did Britain need foreign reserves? Which one was most important?
To pay for imports, especially foodstuffs, the most important was dollars.
What domestic policies did Britain implement to help increase foreign reserves?
- Continued rationing.
- Prioritised industrial production for export rather than domestic use.
What did Britain do in its empire to help increase its foreign reserves?
Developed production capabilities of the empire, especially Africa.
- This increased dollar reserves from sales, and also allowed for more imports from inside the sterling area.
- Meaning Britain could save its foreign reserves.
What were the Colonial development and Welfare acts? When were they passed?
Acts used to expand agricultural production in the colonies, and promote new technologies.
- Passed in 1940 and 1945
What was the Colonial Development Corporation? When was it created?
A board which co-ordinated major colonial projects and develop ‘self sustaining agriculture, industry, and trade’
(later renamed: Commonwealth Development Corporation).
- Created 1948
What was the hard currency pool?
A collective pool of any dollar reserves earned within the Sterling Area.
Why was Malay so economically significant during the period 1947 to 1967? Why did this impact Malay independence movements?
Malay was crucial for earning Britain dollars
- This is an explanation for why the Malay independence movement and communist groups were fought so hard by the British.
What is an example of a failed colonial development scheme?
The 1948 Tanganyika groundnuts scheme
How was Britain’s post war economic policy damaging to some colonies?
- Some colonies were kept reliant on a small number of exports.
- These colonies therefore did not diversify their export sector and remained reliant on Britain even as Britain turned to the European market, damaging their export sectors in the 1950s and 60s.
(E.g. New Zealand)
What did the Labour government do in 1947 which destroyed the Sterling Area? What was the wider effect of this?
Announced a lowering of the exchange rate to dollars by over 14%.
- This destroyed any pretence of Britain’s imperial power.
