Trading Relations 1947-67

Question 1

Two different eras

Answer 1

Up to mid-50s

After mid-50s

Question 2

Up to mid-50s attitudes/patterns

Answer 2

Empire still very important in maintaining Britain’s international trading position, esp post-WWII where Br needed food and raw materials
US economic dominance meant Br needed to earn dollars

Question 3

How did Br try an earn dollars up to mid-50s?

Answer 3

Would prioritise production for export rather than the domestic market
Eg in Africa they used colonial development schemes
BUT these were often unsuccessful- cash crop exports declined in Borneo, bauxite production proved shortlived and imports of rice increased

Question 4

Stat re overseas investment in the UK 1956?

Answer 4

By 1956, 58% of all overseas investment in the UK were in Empire companies and governments

Question 5

Post- mid 50s attitudes?

Answer 5

Interest in Empire was declining as Britain found empire markets very touch with recovery producers eg Japan and W Germany
In 1954, Tories rejected imperial preference
Macmillan’s attitude re a ‘loss and profit account for colonies’ gave him assurance that the empire could be dismantled without economic hit

Question 6

Stats re fall of importance of empire?

Answer 6

Exports to colonial markets fell from 39% to 33% 1953-8 and imports fell 31-23%

Question 7

Macmillan economic attitude to decolonisation?

Answer 7

‘A loss and profit account for colonies’

Question 8

Br’s growing interest in Europe?

Answer 8

Joined EEC in 1973 after being rejected 2x
Exports to Europe outstripped those to Europe in early 1960s
Sterling devaluation of 1967, where Wilson lowered the exchange rate, destroyed the Old Sterling block