Section Three-The Value of Imperial Trade Between The Wars

Question 1

What did imperialists such as Lord Beaverbrook argue for?

Answer 1

Argued for a return of the idea of ‘imperial preference’, ending Britain’s historic policy of free trade

Question 2

What did the dominions say to the idea of ‘Imperial Preference’?

Answer 2

The Dominions opposed and protested this as they wanted to protect their own growing industries

Question 3

What occurred as a result of this opposition?

Answer 3

A compromise was reached at the Ottawa Conference of 1932:

• The British introduced a general 10 per cent tax on all imports but the Crown Colonies were exempted
• Britain and the Dominions gave each other’s exports preferential treatment in their own markets

Question 4

What did this compromise show?

Answer 4

It reinforced the important role of the Empire in supplying foodstuffs and raw materials to Britain

Question 5

What are some statistics showing the importance of the Empire as a crucial source of imports?

Answer 5

-Total value of British imports from the empire (£m) 1913;191m 1934;257m

-Imperial imports as percentage of total British imports
1913;24.9% 1934;35.3%

• Wheat Imports 1913; 48.5% 1934; 63.3%
• Cocoa Imports 1913; 50.9% 1934 90.7%

Question 6

What was the value of imperial trade and commerce for dominions in the Empire?

Answer 6

• Australia and NZ in particular experienced serious economic problems; the cost of their imports from Britain outstripped the income from their exports and both countries ran up debts with Britain
• Burma and Malaya were especially hit- Malaya relied on exports of tin and rubber; Burma on exports of rice