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2M Wars and Welfare: Britain in Transition, 1906–1957

Britain's Post-War Debt and the Export Drive

  • 4 things to know
  • Component 2

Overview

Recall questions on demobilisation and controls, the export drive, war debts and sterling balances, the American Loan and the convertibility crisis of 1947, the fuel crisis, Cripps's austerity, Marshall Aid and the 1949 devaluation.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Key term

What system controlled construction after the war?

Key term

Who negotiated the American Loan of 1946?

Key term

How was Marshall Aid used in Britain?

Process

What debts burdened Britain after 1945, and why did it launch an export drive and devalue sterling?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    Why was demobilisation after 1945 carried out gradually?

    Model answer

    To prevent mass unemployment.

  2. 2

    Why did rationing continue after the war ended?

    Model answer

    Due to severe shortages of goods and the need to manage limited supplies.

  3. 3

    What system controlled construction after the war?

    Model answer

    The building licence system.

  4. 4

    Why did Britain launch an export drive after 1945?

    Model answer

    To earn foreign currency needed for essential imports.

  5. 5

    How had Britain funded the war effort in a way that damaged its post-war finances?

    Model answer

    By selling overseas assets.

  6. 6

    What were the accumulated sterling balances that contributed to Britain's post-war debt?

    Model answer

    Debts owed to Empire countries for wartime supplies and services.

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