Trade and Commerce 1947 - 67 - Post War Reconstruction

Question 1

Relationship with the colonies till the 1960s?

Answer 1

• Important to the british

- UK reserves limited in int. trade after WW2 - relied on Empire - or Commonwealth

Question 2

% of imports from Commonwealth 1954? vs Western Europe?

Answer 2

Commonwealth = 48% - £1,634million

W. Europe = 24% - £818 million

Question 3

% of exports to Commonwealth 1954? vs W. Europe?

Answer 3

Commonwealth = 48% - £1,333 million

W. Europe = 28% = £776 million

Question 4

How much trade was with Commonwealth in the 1950s?

Answer 4

1/2

Question 5

What % of overseas GB Investment went to commonwealth in 1956?

Answer 5

58%

Question 6

When did economic relationship with commonwealth become less important?

Answer 6

1960s

Question 7

Who did Britain turn to instead of Empire 1960s?

Answer 7

Western Europe and USA

Question 8

Why did this shift occur?

Answer 8

Europe was developing rapidly and Britain saw they could benefit - proximity less travel time and no tariffs

Question 9

In 1965, what % of British imports came from Commonwealth?

Answer 9

29.8% - decrease from 48% in 1954

Question 10

What % of exports went to Commonwealth in 1965?

Answer 10

28% - a decrease from 48% in 1954

Question 11

% of exports to Europe in 1965?

Answer 11

32.5% - 4.5% more then commonwealth

compared to 28% to Commonwealth in same year -

Question 12

Why did Britain become torn between trade and commerce with Empire and Europe?

Answer 12

They still trusted Empire to provide but trade with Commonwealth rapidly decreased from 1954 - exports to europe more then to commonwealth by 4.5% - signifies shift away from empire for economic benefit

Question 13

What kind of commercial goods became more profitable and favoured Europe?

Answer 13

Manufactured goods over raw materials (timber, cocoa, sugar, wool) - favoured industrialized Europe

Question 14

When did GB confirm shift to Europe by joining the European Economic Community?

Answer 14

1973 - had tried to enter before in 1967

Question 15

What happened to the pound sterling in 1967?

Answer 15

Its value decreased - devaluation

Question 16

Who devalued the sterling currency`?

Answer 16

Harold Wilson - Labour PM

Question 17

What did this do to the exchange rate between pound and dollar?

Answer 17

Lowered it to $2.40 per pound (from $2.80)

Question 18

By how much was the value cut by? in percentage?

Answer 18

14%

Question 19

What was this devaluation designed to do?

Answer 19

Cut UK deficit by making exports cheaper

Question 20

How did this negatively impact UK economy?

Answer 20

Destroyed the sterling area - once a sign of British international influence - weakened britain’s economic position

Question 21

Post War Reconstruction: 1947 - 67 - who was the main supplier of commodities?

Answer 21

USA

Question 22

What economic challenges for GB arose after WW2?

Answer 22

They needed to earn dollars and build foreign exchange reserves

Question 23

How did the UK react to this need?

Answer 23

Continued rationing - cut cost of food imports to save money
prioritised industrial production for exports to earn money
tried developing colonies particularly in Africa to build foreign reserves

Question 24

Development of Colonies: what act was passed in 1940 and 45?

Answer 24

Colonial Development Act

Question 25

What did the development acts of 1940 and 45 aim to do?

Answer 25

Expand agricultural practice and production, promote technology

Question 26

What was established in 1948 to aid colonial development?

Answer 26

Colonial Development Cooperation

Question 27

What was this body organised to do?

Answer 27

Organise colonial development projects and develop colonies ability to self sustain through developing industry, trade and agriculture

Question 28

What area saw the biggest economic growth between 1946 and 56?

Answer 28

Asia in exports - £624 million increase from 1946 to 56 (Malaya, Burma)

Question 29

Colonial Development schemes - was the Tanganyika groundnut scheme 1948 an overall success or failure?

Answer 29

Overall failure - abandoned in 1951 and cost £49million

Question 30

Why was the Groundnut scheme set up?

Answer 30

There was a global shortage of cooking oil after WW2, and GB thought they could benefit by exporting it

Question 31

What did Britain invest in the Groundnut sheme?

Answer 31

Tractors, equipement, railway, 5 million was to be cleared

Question 32

Why did the scheme fail?

Answer 32

The terrain was difficult to farm, local attitudes and farming traditions were not taken into account

Question 33

Where was one colonial development scheme successful?

Answer 33

Malaya - rubber production
Contributed to hard currency pool
- explains GB resistance to Malayan independence and aggressive attacks on communist insurgency 1948