1J British Empire Chapter 15 v2

How did Britain help to support the rise of Indian manufacturing during the interwar period, and also increase it's tax revenue?

Raised import tariffs (taxes) from 11% in 1917 to 25% in 1925

How had Britain Empire reached its greatest extent after the post WW1 treaties?

Reached its greatest extent with the addition of 1,800,000 square miles and 13 million new subjects. Colonies of Ottoman Empire and Germany distributed to the allied powers as League of Nations mandates. Gained control of Palestine, Transjordan, Iraq, parts of Cameroon, Togo and Tanganyika.

Examples of British Empire attempting to return economy back to pre-WW1 conditions?

Returning to the gold standard in 1925 to try to stabilise its international trade and setting up a range of initiatives to try and achieve this normalisation of trade: The Empire Development Parliamentary Committee (1920), Empire Development Union (1922), Empire Industries Association (1924)

What did the economic demands for defence increase during the interwar period?

Rise of aggressive nations such as Nazi Germany, Imperial Japan and Fascist Italy

How much was given to Britain from the USA to pay for WWII war material as part of the Lend Lease Act?

$31.4 billion

What % increase of British exports went to the Empire during the interwar period 1919-39?

37 to 44%

How much was loaned to Britain from the USA in 1947 as part of the Marshall Plan?

$3.75 billion

Between 1925-9, the Empire was taking how much of all British exports?

37.2% of all British exports - chiefly manufactured goods and Britain was importing from the Empire - mainly of food and raw materials - 32.9%.

How was defence spending reduced after WW1?

Biggest cuts in army and navy - defence budget was cut by 42% in the space of 1 year. - Civil Service numbers cut by 35% - mostly female staff hired during the war.

What did Frederick's Lugard' Dual Mandate Book argue?

Br had a duty to both develop a colonies' resources, but also improve the lives of the native peoples.

Why was the Second World War far more crippling to Britain than the First?

- German U boat attacks ravaged the merchant fleet and trade - Loss of South Asian colonies meant lack of vital raw materials such as rubber - War economy meant less was produced for exports whilst imports remained high (trade deficit) - British overseas investment sold to pay for the war - Lend Lease Act loans from the USA - sterling reserves used to pay for war

What were the consequences of the Ottawa Conference (Imperial Economic Conference) in 1932?

- abandonment of free trade principles which had guided the British Empire from its inception - 10% tax on all imports from non-Empire countries - Britain and Dominions would give each other preferential treatment in their markets

Why did the British Empire want abandon free trade in 1932 and establish 'imperial preference'?

- high US tariffs in 1930 ended many Canadian export markets - economic impact of the Great Depression - desire to foster imperial unity in Dominions and colonies

Why did India continue to be a key exporter of cotton, tea and jute but overall less economically important for British exports during the interwar period?

- rise in local Indian manufacturing - competition from Japanese exports

Why did WWI have a negative effect on the economy of Great Britain?

- war economy focused on production of war material and not trade goods - public expenses directed towards the war effort - competitors acquired lost British overseas markets - international capital investment was lost - GB removed from the gold standard in 1914 (returning in 1925)

How far did imports of raw cotton to Britain from Empire increase from 1913 to 1934?

1913: 3% 1934: 17%

When was the Imperial Wembley Exhibition?

1924-5

When was the Sterling Area established?

1930. In response to the Great Depression.

How did the Wall Street Crash in 1939 impact imperial policy?

An even clearer move to focus more on the imperial aspect of trade, encouraging people to buy imperial products; though the advertising was more prominent than the results ever were.

Facts of the impact of Wall Street Crash?

British exports to China fell from £71.25 million in 1929 to £300,000 in 1936. GB's overall share of exports to India fell from 75.2% in 1928-9 to 48.7% of in 1932-3. India's imports from Japan rose from 18.4% of total imports in 1928-9 to 47.3% of total imports in 1932-3.

What was the proof of Britain's growing reliance on the Empire during the interwar years?

British exports to Empire: 37.2% in 1913 and 44% in 1934. Imperial imports: 1913-24.9%, 1934-35.3%. Cocoa imports from Empire: 1913-50.9%, 1934-90.7%. Motor vehicle exports to Empire: 67.4-71.7%. Railway carriage exports to Empire: 58.4-68.3. Imperialists such as Lord Beaverbrook, the newspaper magnate asked for the return of 'imperial preference'. It was decided at the Ottawa Conference of 1932 that: A general 10% tax on all imports except from the Crown Colonies Britain and Dominions gave each others imports preference

How did British exports to the world compare to the Empire in 1913 and 1934?

British exports to world 1913:£525m 1934: £378m. British exports to Empire 1913: £195m 1934: £166m A rise of imperial exports from 37.2% to 44%

What was the balance of trade in British manufactures by 1924?

By 1924 the balance of trade in British manufactures showed a surplus of £262 million with the Empire as a whole.

What was the economic impact of WW1 on Britain?

Cost over £35 billion (13x Boer War) = $4 billion borrowed from USA. Pound Sterling had to be removed from the gold standard as gold reserves ran so low. Britain lost its traditional markets to competitors to produce for the war, some of which were never recovered. British textiles faced great competition from Japan. The Great Depression in the 1930s collapsed international trade for British markets and forced the country off the gold standard again.

What happened to the Empire economically after WW1?

Costs of war drained GB of its investments and dried up its markets - became increasingly reliant on empire to supply the agricultural and mineral resources it consumed and to purchase manufactured the manufactured goods it produced.

Why did India's domestic manufacturing sector improve during the FWW?

Decline in international trade led to 1/3rd less British foreign imports and a rise in Indian manufacturing

Which parts of the Empire became more significant interwar markets and sources for import to Britain?

Dominions / Commonwealth Nations

What was Britain's 'dual approach' about?

Dual approach was created where Britain abandoned imperial control of colonies which were not cost effective to run but invested heavily in colonies such as Malaya for its rubber and tin industry which could benefit the Britain's international trading system and bring in foreign currency like the much needed dollar. The Colonial Development and Welfare Act of 1940. Wrote off some colonial debts. Provided colonial grants or loans of up to 5 million a year Second Colonial Development and Welfare Act of 1945. Increased aid to £120 million over ten years. Required colonies to produce a ten year development plan to show how they would use the funds.

How did the Great Depression in the 1930's change British economic policy?

Emphasis on trading and investment within the Empire and the creation of a Sterling Area (many nations pegged their currency to sterling or kept reserves in sterling).

What was the Empire Settlement Act of 1922? Was it successful? Why was it done?

Empire Settlement Act of 1922 committing £3 million a year for empire migration. - By 1929 - 67% of migrants chose imperial destinations.- to ensure a friendly attitude in those places and also to help the economics of the empire as these feelings would result in a prosperous relationship.

When was the Colonial Development Act 1929 and what was it?

Established a fund that colonies could draw on to fund their own commercial ventures (and the idea that as colonies grew richer, so would the strength of the empire and the intra-imperial trade).

What were British imports and exports to India and Burma in inter-war years?

Exports: *1909-1913 - 11.9% *1925-29 - 11.6% *1934-38 - 8.0% / Imports: *1909-13 - 7.3% *1925-29 - 6.1% *1934-38 - 6.5%

What were the British imports and exports to Dominions in inter-war years?

Exports: 1909-1913 - 17.5% 1925-29 - 20.6% 1934-38 - 25.9% Imports: 1909-13 - 14.3% 1925-29 - 16.9% 1934-38 - 24.4%

By what percentage British imports from the Empire increase during the interwar period 1918-39?

From 27 to 41%

For imperialist supporters, what did the trends of trade seem to be tracking towards?

Imperial self-sufficiency they had long advocated.

How did pro-imperialists influence government policy about the empire?

Imperialists persuaded Parliament to give an official recognition of Empire Day in 1916. They established the Empire Resources Development Committee (1916) to encourage investment in and exploitation of imperial resources. They convened the Empire Settlement Committee in 1917 to draw up plans to provide ex-servicemen with free passage to the empire after the war. They steered the Imperial Conference of 1917 into endorsement of empire settlement by veterans and a trade policy based on imperial preference. They responded to Dominions' complaints about the lack of consultation in the war by creating the Imperial War Cabinet, which gave the dominions premiers quasi-ministerial standing in the government.

What were British economic weakness after WW1?

Imports rising (2.1% from 1929-1931) but exports falling. International trade grew by 37.5% from 1913 to 1929 but Britain had not regained its 1913 levels. British global manufactured goods fell from 30.2% in 1913 to 20.4% by 1929. Merchandise deficit - 1924 imports above 1913 levels but exports 25% below. Slump depressed government revenues but led to extra social expenditure.

What was Britain's economic policy straight after WW1?

In the 1920s Britain tried to recreate the trade system which existed in 1914 and thus returned to the gold standard in 1925. The Great Depression however made Britain realise the importance of its Empire to sustain its trade and was forced to abandon the gold standard in 1931. Most Empire countries fixed their currency to the value of the sterling. This created the Sterling Area which Britain could trade and soften the blow of the Great Depression

What was the economic impact of WW1 on India?

India contributed almost £146 million and experienced inflation and shortages. The decrease in British exports from the 1/3 ratio in 1914 however gave rise to Indian domestic industrial growth, accelerated by the increase of Indian import taxes in the UK to 25% in 1931.

What colonies were abandoned post WWII because their economic benefits and potential was outstripped by the cost of controlling them? (INTERPETATION)

India, Burma

Why was Britain's financial sector (banking services) in decline during the interwar period?

International competition which reduced profits from lending money and investment.

What is an example of a colony that received extensive British colonial investment?

Malaya due to its rubber and tin industry

What is Kennedy's argument effects of WW1 on the Empire?

It created a greater awareness among the establishment for a need for imperial self-sufficiency (imperial preference). Evidenced by the reforms that arise in the Inter-War period where imperial self sufficiency and promoting imperial bonds were often a key aim for the survival of the Empire.

How did the Great Depression of the early 1930's multiply Britain's interwar economic woes?

Led to the collapse of international trade and a decline in demand for British industrial exports.

What was an economic consequences of Canada emerging as an industrial power from the First World War?

Less desire for British imports and a closer relationship with the USA for markets and investment.

What was the Geddes Axe 1922?

Lloyd George appointed Sir Geddes to head the new committee on National Expenditure which was dubbed 'The Great Axe'. Between 1921 and 1922 it recommended reducing expenditure by £87 million, about 10% of the country's entire GDP.

Which imperialist and which conference argued for 'imperial preference' as a way to support Britain's economy and create unity within the Empire?

Lord Beaverbrook, Ottawa Conference

What was the economic impact of WW2?

Lost 11.7 million tons of shipping in the war, 54% of its merchant fleet at the start of its war. The loss of colonies in South East Asia to the Japanese from 1942 cut off supplies of vital materials such as rubber from Malaya. Britain's balance of trade was heavily in deficit during the war despite campaigns to reduce imports (Dig for Victory). A third of British overseas assets were sold during the war and Britain borrowed from the USA from 1941 using the Lend-Lease Act.

What British naval bases were lost in the 'Destroyers for Bases' agreement with the USA in 1940?

Newfoundland, British West Indies, British Guiana

Was the Ottawa Conference 1932 successful?

Ottawa agreements were an undoubted success. Inter-Imperial trade was very significantly increased between 1932 and the outbreak of WW2. Between 1929 and 1938, Britain improved its position as easily the most important trading partner of the dominions, with the exception of Canada with its intimate trade connections with the US. Britain's trade with the Empire overall substantially increased with the Empire during the period 1931-1937. The total of British imports from the Dominions, India and the colonial empire increased from 24% of total overseas trade in 1931 to 37% in 1937.

Why were Britain's traditional industries (textiles, shipbuilding, coal, iron, steel) in decline in the interwar period of 1918-39?

Overseas competition from industrialised powers such as the USA and Japan

What was the motivation behind the Colonial Development and Welfare Acts?

Strengthen colonies as imperial trading partners

What was the motivation for the Statute of Westminster 1931 (Commonwealth) and the Ottawa Conference 1932?

Such political freedom was clearly in response to a fear that the Empire would otherwise acrimoniously break up, and so the creation of the Commonwealth was seen as the best way to maintain imperial goodwill and unity. Likewise, the move to this form of imperial preference under Ottawa was seen as an attempt to keep the Empire together, by making it more economically reliant within itself, so reducing the temptation of breaking up the Empire.

In 1919 what did the Colonial Office create? Who was chair?

The Overseas Settlement Committee to promote imperial emigration- Leo Amery

What was the British guiding principle for the Ottawa Conference (Imperial Economic Conference) in 1932

home producers first, empire producers second, and foreign producers last

What was the Sterling Crisis of 1947?

The USA ended Lend-Lease and John Maynard Keynes negotiated a massive US loan ($900 million) but the conditions were tough and the sterling had to be freely convertible to dollars by the spring of 1947. Britain had run out of its dollar reserves within six weeks of 1947 and had to suspend the free convertibility thus revealing how weak the British economy had become.

How much did the government allocate a year to promote the sale of imperial products?

The government allocated £1 million per year to the Empire Marketing Board (established 1926) to promote the sale of imperial products.

Why did Australia and New Zealand run up large interwar debts with Britain and what was the consequence?

Their main exports to Britain (foodstuffs such as wheat and dairy and raw materials) were unable to pay for the more expensive manufactured goods they were importing from Britain. Seen as being exploited by Britain which led to alienation and further calls for independence from the newly elected Australian Labour Party.

What fact reflects in part the success of the Indian nationalist campaign to boycott British textiles?

Trade in manufactures with India suffered a very sharp decline - falling from a surplus of £75 million in 1924 to £23 million by 1937

What were the positive aspects of Empire after WW1?

Was able to use colonies to soften economic blow. Took 59% of its investment and 43% of its exports in 1927. Increased Canadian trade due to protectionism and slump, from 3.9% in 1929 to 8.8% (exports). Britain imports rose 2.1% from 1929 to 1931 which meant primary producers were reliant on sales to Britain and with tariffs it meant the colonies had something to bargain for.

How much was offered to the colonies as a part of the Colonial Development and Welfare Act in 1945?

£120 million in aid over 10 years

How much did money did India contribute to First World War

£146 million

What was the cost of the First World War for Britain?

£35 billion (13x Boer War)

How much was offered to the colonies as a part of the Colonial Development and Welfare Act in 1940?

£5 million per year in loans

How much was loaned to Britain from the USA in 1945 as part of a deal with economist John Maynard Keynes?

£900 million