trade and commerce 1914 1947

What was the overall impact of World War I in Britain?

Economically exhaustive and Britain was in severe debt. Much of their overseas investments have been wiped out, and the pound sterling had to be removed from the gold standard for the duration because the gold reserves ran so low

What happened to Britain's markets?

War production was prioritised, so Britain's competitors were able to win markets that were traditionally dominated by british exports, and not all of these were regained afterwards

What happened to the traditional industries such as textiles, shipbuilding,, coal and steel?

They all suffered between the Wars as they faced overseas competition, for example from Japan in textile production

What happened to Britain's financial sector during the inter war period?

as economic burden of the empire grew, their ability to pay for it diminished. This problem intensified during the great depression, which saw a collapse of international trade.

What pushed Britain off the gold standard in 1931

Financial crisis

What was the impact of coming off the gold standard in 1931

Reduced earnings from overseas investments again

How much did India contribute to the first world war effort?

£146 million, the country experienced inflation shortages during the war as a result

What proportion of imports of British to India?

1914:2/3

Why did British imports to India decrease?

Wartime production and international competition. This actually benefited the Indian economy because Indian manufacturers began to capture more of the domestic market.

What did the British do to Indian imports after the war?

Placed higher taxes on them to generate revenue to bolster their control during the rise of the nationalist movement, from 11% in 1917 to 25% in 1931.

What was the effect of placing taxes on Indian imports

Gave Indian industry protection against its competitors, and it grew accordingly

How did Canada benefit from the waR

Emerged as an industrial power. Britain lost ground in their markets and Canada became increasingly close with the USA for investment and markets.

What was the effect on Australia and New Zealand after the war?

They relied heavily on the British market, and were hit hard by the disruption of trade caused by the war and the great depression

What was the policy towards imperial trade during the 1920s?

They tried to recreate the economic system prior to 1914, no imperial preference. They return to the gold standard in 1925 to stabilise international trade.

What was an exception to the policy of "no imperial preference" in the 1920s

Colonial development act of 1929 which provided Treasury fund to support colonial development projects

What was the policy towards imperial trade post-1929?

Due to the great depression, there was a much greater emphasis placed on the importance of empire for British commerce and imports from the empire increased although exports to it did not do so well.

How did the Empire proved to be a great asset when Britain had to abandon the gold standard in 1931

Most of the countries of empire fixed the value of their currencies to sterling and kept their national reserve in Sterling which gave access to the British markets to countries in the sterling area while ensuring profitable outlet for British overseas investments

What ultimately marked the change in policy

The promotion of imperial trade rather than its total volume

What was the difference in the proportion of British imports that was from Imperial exports from 1913 to 1934

37% to 44%

What position did the textile industry have in the interwar period?

Remained an important part of the Empire even in the face of increasing competition from foreign markets until the 1930s

Why were the dominions opposed to Imperial preference?

They wish to protect their own growing industries, so a compromise was made at the ottowa conference

What was agreed on at the ottowa conference in 1932

Britain introduced a general 10% tax on imports, but the crown colonies were exempt; Britain and the dominions gave each other's exports, preferential treatment in their own markets

Which produces saw a sharp rise from 1913 to 1934 in imperial imports to Britain

Wheat, Coco, raw cotton, and raw rubber

Which produces did not change much (but were already significantly imperial trade produces) in terms of percentage of trading within empire

Raw jute, tea and wool

What did Australia and New Zealand experience during interwar period?

The cost of their imports from Britain outstripped the income from their exports, and so both countries run up debts with Britain (Australia more so) and imperial preference became very important for them when international trade halted in the 1930s

What was the result of Australia's financial situation?

Britain saw this as Australian mismanagement of financial affairs, but Australians believed it was from colonial exploitatiOns. This helped fuel a sense of resentment, which gave rise to desire for independence.

How did other British colonies deal with the Great depression?

They suffered: Burma and Malaya especially hard-hit, as well as African colonies that were relying on food and raw material produce. Incomes fell, bringing poverty and even starvation which fuelled dissatisfaction with colonial rule

What was the economic impact of World War II compared to World War I?

Hit Britain even harder, as the economy entered the war in a much weaker position to 1914, and major defeat in the first three years proved crippling expensive

How did Britain's Navy suffer in World War II?

German U-boat attacked led to Britain losing 1.7 million tons of shipping and 45% of the country's merchant fleet strength

What disrupted trade in south-east Asia during World War II?

Loss of major colonies to Japan, such as Singapore and Malaya

How did they become in trade deficit by the end of World War II?

Diversion of industrial production meant there was less produced for export. They tried to reduce imports through Home production of food rationing campaigns but they were unsuccessful in stopping the trade deficit.

What proportion of overseas investments were sold to pay for ww2

One third

What role did the Empire play for import during World War II?

There was an increased dependence on the Empire for import and considerable investments by colonial governments

How were the colonial reserves held in Britain (sterling balances) used during World War II?

They were used to help pay for the war effort, which damaged the Empire

What was the Lend-Lease Act?

a policy allowing the president to provide arms to certain foreign countries, in particular england

How did Britain's position become worse in late August 1945?

The USA ended lend lease as it was not prepared to support a revived British empire financially

What did John Keynes negotiate with the USA?

A loan of £3.75 billion in 1945, but one condition was that the pound sterling had to be made freely convertible to dollars by the spring of 1947, which led to a sterling crisis then

What had become apparent about the cost of Empire after World War II?

That the cost of re-establishing Britain's world powers threatened to exceed the benefits

What was the dual approach after World War II?

When the costs massively outweighed its actual potential value imperial control was relinquished (e.g. India, Burma, or Palestine); however, if colonies were regarded as an economic benefit to Britain, new emphasis was placed on colonial economic development (e.g. rubber and tin industry in malaya could command national markets and so received heavy government investment)

What did the colonial development and welfare act of 1940 do

Wrote off some colonial debts; provided colonial grants or loans up to £5 million per year

What did the colonial development and welfare act of 1945 do?

Increased aid available to colonies to £120 million over 10 years; required each colony to produce a 10 year development plan showing how it would use such funds