T+C 1947-67 Post War Reconstruction

Question 1

Reasons why economy recovered fairly quickly

Answer 1

Marshall aid
Liberal democracy which favoured private enterprise
By mid 1950/ full employment in Europe
Living standards rising

Question 2

What was the sterling devaluation? What did this destroy? What did Britain join?

Answer 2

1967
Harold Wilson labour gov lowered exchange rate- cut of 14%
Designed to cut Britain’s deficit by making exports cheaper but imports got more expensive
This destroyed the sterling area leading to Britain joining the EEC in 1973

Question 3

How did Britain intend to save reserves of dollars

Answer 3

Devel productivity of colonies eg Africa to increase colonial sales and supply Britain with goods from sterling area

Question 4

Why do Britain need dollars?

Answer 4

USA are the main supplier world wide Britain need dollars to build up foreign exchange reserves to pay for imports

Question 5

1948 colonial development corporation

Answer 5

Co ordinate major projects and develop self sustaining agriculture

Question 6

The success of colonial development: Malaya

Answer 6

Rubber crucial dollar earner

Also in sterling area contributed to hard currency pool

Question 7

The success of colonial development: Tanganyika

Answer 7

Groundnut scheme 1948
FAILURE
Terrain too difficult to cultivate
Abandoned 1951 cost £49m and land made uncultivable

Question 8

Summary of British trade up to 1967

Answer 8

Remained heavily reliant on trade in empire and commonwealth until the 1960s however Britain’s trade with Europe and USA grew strongly by 67 showing a clear shift away from empire

Question 9

What was the main reason for Wilson’s election loss

Answer 9

Devaluation

Question 10

Changes in imports from commonwealth 1954-1965

Answer 10

1954- 48.3%

1965- 29.8%

Question 11

Changes in imports from Western Europe 1954-1965

Answer 11

1954- 24.2%

1965- 30.6%

Question 12

Summary of 60s trade with Western Europe and commonwealth

Answer 12

Commonwealth trade decreased Western Europe increase

Question 13

Which industries continued to shrink 1964-70?

Answer 13

Coal mining shipbuilding textiles and railways

Question 14

Unemployment rises from 1964-1970

Answer 14

400,000- 600,000

Question 15

What caused a change in imperial policy 47-67

Answer 15

Changes in the international scene

Question 16

What was this change in the international scene?

Answer 16

Cold War

Question 17

The Truman doctrine

Answer 17

$400m in military and economic assistance for Greece and turkey to resist communism

Question 18

Changes in the American tone

Answer 18

Turn a blind eye to post war re imposition of colonies as wanted strong Britain to help resist communist advances

Even indirectly financed through low interest loans

Question 19

Us marshal aid

Answer 19

1948-52

$3.3b for British

Question 20

NATO

Answer 20

1949 Britain relied on for defence

Question 21

Example of USA/uk co operation over defence

Answer 21

Polaris sales agreement 1963 where USA supply Royal Navy

Question 22

Examples of British reliance on USA

Answer 22

White dominions began to turn to USA for safety

SEATO 1954- acknowledgement of need for an American led protective alliance

Question 23

What kept Britain away from EEC for so long?

Answer 23

Hope of preserving empire

Question 24

What event was symbolic that Britain’s days as world policemen is over

Answer 24

1968 Wilson announced British troops would be withdrawn from SE Asia