GB and the EEC

Question 1

What was the first step towards the EEC?

Answer 1

The Organisation for European Economic Co-operation 1948 -> response to Marshall Aid. Bevan took the lead in organising 16 European nations to draw up a plan for best use of Am. aid => encouraged trade by reducing restrictions

Question 2

Why did GB refuse membership of EEC?

Answer 2

1. Sovereignty -> GB would no longer be in control of its own economy instead at the mercy of European Commission in Brussels
2. Fear that GB’s relationship with Commonweatlh might be ruined if it were no longer possible to give preference to Commonwealth goods e.g. NZ lamb and butter
   - Around 40% of GB exports went to empire
3. Commonwealth with pop. around 800 mill seemed more promising market than EEC which had less than 200 mill
4. Fear that if GB too deeply involved in economic integration with Eu, it could damage special relationship with Am’s
5. Most GB politicians deeply suspicious that economic unity would lead to political unity of Europe

Question 3

Why did GB establish the EFTA?

Answer 3

GB and other Eu states outside of EEC were worried about being excluded from selling their goods to EEC members because of high import duties on imports outside Community. -> GB took lead in organising rival group European Free Trade Association -> agreed they would gradually abolish tariffs amongst themselves

Question 4

Why did GB eventually decide to join EEC?

Answer 4

1. Clear by 1961 that EEC was successful without GB
   - Since 1953 -> Fr production rose by 75%
   - G prod. increased by almost 90%
   - GB’s production rose by only 30%
2. GB’s economy stagnating by comparison
   - 1960 B of P deficit of some 270 mill
3. EFTA was not as successful as EEC
4. Commonwealth didn’t have the same purchasing power as EEC
   - Colonies gaining independence -> no guarantee that trade with them would continue at same level
5. Macmillan felt that there wouldn’t be a clash of interest between EEC + Empire since colonies such as NZ + Australia were more interested in trading in their own regions
   - signs that EEC prepared to make special arrangements to allow Commonwealth countries + some former Eu colonies become associate members
6. Belief that EEC would allow for greater competition which would stimulate GB industry to greater effort + efficiency