Rethinking the Australian Dilemma: Economics and Foreign Policy, 1942-1957 (Studies in Transnationalism)

This book explains how and why, Australian governments shifted from their historical relationship with Britain to the beginning of a primary reliance on the United States between 1942 and 1957. It shows that, while the Curtin and Chifley ALP governments sought to maintain and strengthen Australia’s links with Britain, the Menzies administration took decisive steps towards this realignment. There is broad acceptance that the end of British Australia only occurred in the 1960s and that the initiative for change came from Britain rather than Australia. This book rejects this consensus, which fundamentally rests on the idea of Australia remaining part of a British World until the UK attempts to join the European Community in the 1960s. Instead, it demonstrates that critical steps ending British Australia occurred in the 1950s and were initiated by Australia. These Australian actions were especially pronounced in the economic sphere, which has been largely overlooked in the current consensus. Australia’s understanding of its national self-interest outweighed its sense of Britishness. Cover Table of contents List of Figures List of Figures Preface Acknowledgements List of Abbreviations and Acronyms Used Part I: Kinship Introduction – The Anzac Dilemma The Dilemma Major Themes Australia and the British World The Importance of Economics Periodisation and Turning Points Structure 1. The Dependent Dominion: Australia in 1941 Introduction Australia’s Britishness The Impact of Ottawa The Dependent Dominion Australian Prime Ministers and America Australia through the Eyes of American Diplomats Conclusion Part II: Estrangement 2. The War Economy Introduction U.S. Trade and Article VII Industrial Expansion Changing Relative Stature of the American, British and Australian Economies The Role of Larger Government Conclusion 3. “Australia Looks to America,” 1942–43 Introduction The U.S.-Australia Relationship – Mutual Expedience The Lack of U.S.-Australian Affinity The Revival of Anglo-Australian Relations Lend-Lease and Economic Tensions Conclusion Part III: Reconciliation 4. “Recovering Our Lost Property,” 1943–44 Introduction Britishness and Australian Self-Interest The Benefits of Acting through the Commonwealth Australia’s Economic Links to Britain Anti-Americanism Commonwealth Institutional Ties The ANZAC Treaty British Involvement in the Pacific War Commonwealth Planning for Bretton Woods Conclusion 5. The Chifley Government: Policy Motivation Introduction The Benefits of the Sterling Area The Commonwealth as an Institution for Australian Interests Industry Policy Defence Policy ALP and Anti-Americanism The Risks of Appearing Anti-British Conclusion 6. Post-War Reconstruction and Economic Choices, 1945–49 Introduction The Risks of Reliance on Britain The 1947 Sterling Crisis Australian Reaction to the Prospect of a Western Union Self-Interest and Anti-Americanism Petrol Rationing Conclusion Part IV: Separation 7. Percy Spender: The Interconnection of Economics and Foreign Policy, 1949–50 Introduction Spender as Minister for External Affairs Economics and Foreign Policy Anglo-American Differences Spender and the Australian Dilemma Spender and the Colombo Plan Korea ANZUS Conclusion 8. National Development and the Sterling Bloc, 1951–52 Introduction National Development and Defence The 1952 Commonwealth Finance Ministers’ Conference “Dealing with an Enemy or a Friend?” The 1952 Commonwealth Prime Ministers’ Conference Could Only Menzies “Go to China”? Conclusion 9. Aligning with America, 1952–57 Introduction Economics – Continuities and Turning Points Australia’s Trade Relationships with Japan and Britain Defence Alignment – Managing Anglo-American Differences The Radford Bombshell Defence Reviews Menzies and Suez The British Reaction Conclusion – The Dilemma Resolved Menzies and His Britishness Choosing with Whom to Trade Choosing Whom to Fight Alongside Britishness, Economics, and Self-Interest Index "This book explains how and why, between 1942 and 1957, Australian governments shifted from their historical relationship with Britain to the beginning of a primary reliance on the United States. It shows that, while the Curtin and Chifley ALP governments sought to maintain and strengthen Australia's links with Britain, the Menzies administration took the decisive steps towards this realignment. There is broad acceptance that the end of British Australia only occurred in the 1960s and that the initiative for change came from Britain rather than Australia. This book rejects this consensus, which fundamentally rests on the idea of Australia remaining part of a British World until the UK attempts to join the European Community in the 1960s. Instead, it demonstrates that critical steps ending British Australia occurred in the 1950s and were initiated by Australia. These Australian actions were especially pronounced in the economic sphere, which has been large-ly overlooked in the current consensus. Australia's understanding of its national self-interest outweighed its sense of Britishness"-- Provided by publisher Introduction: The ANZAC dilemma -- The dependent dominion : Australia in 1941 -- The war economy -- "Australia looks to America," 1942-43 -- "Recovering our lost property," 1943-44 -- The Chifley government : policy motivation -- Post-war reconstruction and economic choices, 1945-49 -- Percy Spender and the interconnection of economics and foreign policy, 1949-50 -- National development and the Sterling bloc, 1951-52 -- Aligning with America, 1952-57 -- Conclusion: The dilemma resolved