Section Four-Trade and Commerce & Post-War Reconstruction

Question 1

How did Trade and Commerce change post-war?

Answer 1

The Empire and commonwealth had before been essential for Britain, however, from 1960s, other parts of world, and especially Western Europe became more important to Britain

Question 2

What are statistics showing that the Empire and Commonwealth reduced in importance for Britain (imports)?

Answer 2

Imports 1948
Commonwealth: £933m
Western Europe: £427m

Imports 1965
Commonwealth: £1720m
Western Europe: £1762m

Question 3

What are statistics showing that the Empire and Commonwealth reduced in importance for Britain (exports)?

Answer 3

Exports 1948
Commonwealth: £757m
Western Europe: £407m

Exports 1965
Commonwealth: £1365m
Western Europe: £1593m

Question 4

How did European economy recover quicker than expected?

Answer 4

• Marshall Aid which continued offering support by the US
• Advances in science and technology as well as changes in industrial relations
• Growth rates high and living standards in West were rising rapidly

Question 5

Why did Britain eventually join the EEC?

Answer 5

Britain had previously wanted to stay in trade with the commonwealth however due to the Sterling Devaluation of 1967 it weakened the sterling and international faith in the value of the sterling and hit at Britain’s global imperial pretensions; causing Britain to succumb to the EEC

Question 6

What were the Colonial Development and Welfare Acts of 1940 and 1945?

Answer 6

Used to expand agricultural production and promote new technology in the colonies

Question 7

What was the Colonial Development Corporation?

Answer 7

• Set up in 1948 to co-ordinate major projects and develop self-sustaining agriculture, industry and trade
• Renamed Commonwealth Development Corporation in 1963

Question 8

What colonial development scheme was unsuccessful?

Answer 8

Tanganyika Groundnuts Scheme launched in 1948 was an abject failure

Question 9

What colonial development scheme was successful?

Answer 9

• Malay rubber proved a crucial dollar earner
• Became major contributor to Hard Currency Pool
• Explains why British would not countenance immediate independence for Malaya and responded so fiercely to the communist terrorist attacks

Question 10

How else did Britain attempt to rebuild after the war?

Answer 10

• Rationing at home, to cut cost of food imports, and prioritising British industrial production for export rather than domestic market
• Also tried to develop productive and export capacities of colonies particularly in Africa where under-development of local resources offered huge opportunities for growth