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The Economy

Although still a powerful economic power, Britain had gone into relative decline against the new economies of Germany and the US

The economy was growing very slowly although she continued to be the banking capital of the world. British shipbuilding boomed during the period especially on the Clyde and in Belfast.

Much of British industry had failed to modernise and many factories were slow to use electricity. For example by 1910 German steel production was double that of Britain and US output of coal had overtaken and was greater than Britain.

Traditionally the basis of British economic power had been based on Free Trade. As most of her competitors erected tariff barriers, Britain found her industries shut out from many markets.

By the early twentieth century the demand for tariffs increased in Britain. This demand was led by Joseph Chamberlain who felt that Protectionism would protect British industry and help to unite the empire. His demand was opposed by many in his own party and helped to split the once invincible Conservatives. This division paved the way for the Liberal victory in 1906.

#50 British foreign Policy before World War I

British foreign policy during the greater part of the 19th century was dedicated primarily by a desire to avoid closer relations with other European Powers and to concentrate upon colonial aggression. This policy of ‘splendid isolation’ of Britain served her interests well. She avoided a whole series of continental wars. The Navy was still its sure and sufficient shield, and for a hundred years after Trafalgar no Power attempted to build a rival fleet. During the Franco-Prussian War in 1870, Gladstone had announced Britain’s intention to take arms against French or German violation of Belgium’s neutrality, and on that occasion the warning was enough.

With the new century the period of “splendid isolation” came to an end. The first steps were taken by Lord Lansdowne as Foreign minister under Balfour. By the time on the Continent the Dual Alliance between Germany and Austria had been expanded into Triple Alliance by the adhesion(с согласия,путем присоединения)) of Italy in 1882.An understanding with America would have been preferred by Britain but her traditional policy of isolation rendered it out of the question.

During the last twenty years of the 19th century Britain had been in constantly recurring danger of war with France or Russia, owing to the clash of interests with their s at various doings in Asia and Africa. So Britain tried to make German Entente, but her attempts had been rejected by Germany. There was no alternative и вуа ля – in 1904 the Anglo-French “Entente cordiale” was signed and their colonial disputes settled. France recognizes British control over Egypt, while Britain reciprocates regarding France in Morocco. France drops exclusive fishery rights on the shores of Newfoundland and in return receives an indemnity and territory in Gambia (Senegal) and Nigeria. Britain drops complaints regarding the French customs régime in Madagascar. Spheres of influence are defines in Siam (Thailand). Issues regarding New Hebrides are settled in 1906.

1911 - Reciprocity treaty lowering tariffs between Canada and U.S. fails on surge of pro-British, anti-American se 1914 - Britain and its Empire declare war on Germany and Austria. Stalemate on Western Front, but Britain & dominions seize the overseas German colonies

1915 - British passenger liner RMS Lusitania torpedoed without warning off Irish coast by German submarine and sinks in 18 minutes; 1,200 dead. Germany violated international law by not allowing passengers to escape.

1917 - 7 April. U.S. declares war on Germany and Austria; does not actually join Allies and remains independent force; sends token army in 1917

1918 - Britain accepts the Fourteen Points, the American statement of war aims

1918 - November. Britain and Allies defeat Germany, Austria-Hungary and Turkey; their empires dissolved (along with Russian Empire)

1919 - Treaty of Versailles Prime Minister David Lloyd George was a key negotiator. It forced Germany to pay large reparations (which in turn were used to pay debts owed the U.S.).

1919 - League of Nations formed, with Britain an active member ntiments led by Conservative Party