Economic Problems The European Democracies: Great Britain

• Lost status as economic power • Nat’l debt – Borrowed from U.S. during the war – A debtor rather than creditor

Chapter 2, Part 2

Textile Imports to Kenya

• Lost much of their foreign trade – To the U.S. & Japan – Made it more difficult to repay debt

100% 50% 0% 1930 From UK

Economic Problems • Factories were outdated

1931

1932

From Japan

1933 From Other

Economic Problems • Formation of Labour Party

– 1st nation to industrialize

– Promised to move toward socialism

• Many factories built in that early era

• Gov’t ownership of business

– Compared to the U.S. & Japan • Who both industrialized later • Were modern and more efficient • Could produce goods at lower cost

• “Red Scare”

– More difficult to reclaim markets

– Fear of the expansion of communism

• Unemployment

– Karl Marx • “Father of Communism” • Believed revolution in

– Many factories closed. – 2 million unemployed by 1921. – General strike in 1926

spread world wide

• Involved all of a nation’s workers

Defensive Strategy

one state would

– Communist revolution in Russia in 1917 and formation of USSR in 1922

Balance of Power • Britain tried to maintain balance of power in Europe.

• Britain is an island.

– Distribution of power so no one becomes too dominant

– Built strong navy to rule the seas – Only small, mobile army needed

• Britain played the “swing” nation.

– Mostly anti-French alliances before 1870s – Pro-French, anti-German alliances after 1870s

• Yet the French and British still hated each other

• Demobilized army after WWI • Washington Naval Conference – Weakened Britain’s domination

• Protected by the Channel – But planes could now fly across

ORIGINS OF GERMAN IMPORTS (1913) France 6% Others 47%

• Made Britain rethink a weak Germany

Russia 13%

– May upset balance of power

United States 16%

• France may become too powerful • “Red Menace” from Soviet Russia

– Had been largest pre-war costumer British Empire 18%

• Needed to revitalize British industry

– Allowed Germany to ignore some of the provisions of Versailles

• Germany was receiving mixed signals.

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British Empire

Irish Independence

• Weakened b/c of self-determination rhetoric • Commonwealth of Nations

• Irish Republican Army (IRA) launched

– Assoc. of nations w/ common culture/economy – Put former colonies on equal footing w/ Britain

guerrilla war in 1919 against the British. – Using unconventional, hit-and-run tactics

• Britain partitioned the island in 1922. – Divided

– Only the “white” dominions • Canada • Australia • New Zealand • South Africa

– Irish Free State (Eire) – Northern Ireland (Ulster) • 6 counties in N. Ireland • Remained part of United Kingdom (UK)

• IRA continued campaign to unite all of Ireland.

Mahatma Gandhi

Middle East

• Leader of the independence

• Ruled as mandates for the League of Nations • The “Thrice-Promised Land”

movement in India • Began his non-violent resistance

– McMahon Agreement – Sykes-Picot Agreement – Balfour Declaration

• Encouraged a boycott of British-made goods

– Including textiles – Making the spinning wheel the symbol of resistance

McMahon Agreement Oct. 1915

Sykes-Picot Agreement May 16, 1916

• Sir Henry McMahon – Convinced Arabs to revolt against the Ottomans – Kept the Ottomans from helping in Europe – Used T. E. Lawrence to make the deal • Lawrence of Arabia

• Secret agreement to divide the Middle East – France—Syria (including Lebanon) – Britain—Palestine (Israel & Jordan) & Iraq

• Arab state limited to Arabian Peninsula

• Promised land to form an Arab state – Believed they would get all of the territories

2

Balfour Declaration Nov. 2, 1917

• Arthur Balfour

– Britain’s Foreign Secretary

• Balfour Declaration

– Supported the creation of a Jewish state in Palestine

3