4.2.4

International Relations 1947-1967

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International Relations and the Commonwealth, 1947-1967

Britain's power was declining after World War Two. The USA and Soviet Union (USSR) emerged as the world's two global superpowers.

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The Cold War

  • By the 1950s, the USA and USSR had emerged as the world’s superpowers.
  • Britain received 26% of the Marshall Plan's funding from the USA (worth $3.12bn).
  • This showed Britain's economic dependence on the USA, but this also meant that the USA could influence and censure British foreign policy (see the USA's condemnation of British conduct during the Suez Crisis).
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The strength of Europe

  • Europe began to emerge as a power.
  • In 1958, the EEC was a free trade area including Germany and France. This would later evolve into the European Union.
  • In 1960, Britain created the EFTA with Austria, Portugal, Sweden, Denmark, and Norway as a competitor, but these nations did not really trade much with each other.
  • Britain applied to join the EEC but Charles de Gaulle of France vetoed Britain's entry.
  • Finally, in 1973, Britain was allowed to join the EEC, but Britain's manufacturing industries had declined materially by then.
  • By 1956, 63% of Britain's imports and 58% of Britain's exports went to Western Europe (Tomlinson, 2004).
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The strength of the USA

  • The US Dollar became the world's reserve currency after the Bretton Woods Conference after World War Two. This, combined with Britain's balance of payments deficit and wartime debts made the USA more and more influential.
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The Commonwealth

  • The meaning of Commonwealth evolved in this period.
  • The Commonwealth expanded outside of the white Dominions to include most previous members of the British Empire. Burma refused to join, but India and Pakistan both joined the largely symbolic organisation.

Jump to other topics

1High Water Mark of the British Empire, 1857-1914

2Imperial Consolidation & Liberal Rule, 1890-1914

3Imperialism Challenged, 1914-1967

4The Wind of Change, 1947-1967

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