chapter 21: 1947-1967 trade and commerce Flashcards
Between 1947-1967 how was there a dramatic shift in the importance of Empire as a supplier of British imports and a market for British produce?
Until the 1960s , the Empire and Commonwealth were extremely important for Britain’s international trading position. They provided essential imports of food and raw material at a time when Britains reserves of foreign exchange were too limited to source imports from many other parts of the world. A great deal of British investments also went to the Empire. In 1956, approximately 58% of all overseas investments in the UK in shares and securities were in Empire companies and government.
By 1965 what percentage of exports were going to Western Europe and Commonwealth?
Western Europe= 32.5
Commonwealth= 27.9
this illustrates that trade with other parts of the world were more important after the 1960s.
how did the European economy recover from war quickly?
The European economy recovered from the war much more quickly than expected due to the Marshall Plan, advances in science and technology as well as industrial relations.
why did Britain choose not to join the EEC in 1957?
They trusted their traditional reliance on the Empire and instead set up their own rival trading bloc of European non EEC members- the EFTA. However, the EEC flourished and more exports went to Europe than the Empire in the early 1960s so Britain applied for membership to the EEC in 1963 and 1967 only to be rejected.
What was the sterling devaluation 1967?
In 1967, Harold Wilsons Labour government announced that it was lowering the exchange rate so the pound became worth 2.40 down from 2.80 which was a cut of 14%. This was due to a payment crisis of Britain spending more on imports than it was gaining on exports. This tried to make British exports cheaper.
what were the Colonial Development and Welfare acts of 1940-1945 used for?
they were used to expand agricultural production and promote new technology in the colonies
what was the Colonial Development corporation set up to coordinate?
It was to set up and coordinate major projects and develop self sustaining agriculture, industry and trade. It was renamed the Commonwealth Development Corporation (CDC) in 1963.
what were some failed schemes?
The Tanganyika Groundnut scheme launched in 1946-1951was an abject failure.
how was Malaya cruical?
It was a crucial dollar earner, and as a member to the Sterling Area, Malaya became a major contributor to the Hard Currency pool. This helps explain why the British would not countenance immediate independence for Malaya and responded so fiercely to the communist terror attacks from 1948?
How much was exports from British colonies worth in 1946?
£319 million
How much was exports from British colonies worth in 1956?
£1485 million
