Title: Compare the role of the U.S. in helping economic recovery of Britain and Japan after the Second World War. Forced with the high casualties expected in an autumn invasion of Japan, US President Harry S. Truman decided to use the atomic bombs that had been developed too late to use against Germany. 1 Many countries suffered most during the Second World War, especially in the economic aspect. Heavy economic loss caused the countries cannot have sufficient capital to recover their countries. Like Britain and Japan, they sent lots of armies and navies to join the war. During the war, most of the infrastructures are destroyed and many people are killed in the war. It needed time and money to recover from destruction. U.S. thus provided aids to several countries in order to help to recover against the widespread of communism in U.S.S.R. U.S. provided economic aids to Britain and Japan. Of course, there were some reasons behind. For Japan, the reason behind was to keep Japan as a buffer zone to counteract the communism spread from Soviet Union. As there was the Cold War occurred after the Second World War, due to the heavy destruction, the situation was much easier for the spread of communism. As Japan is closer to Soviet Union, U.S. worried about Japan would be the next communism state. Thus, U.S. provided aids to Japan in order to help Japan s recovery. For Britain, U.S. wanted to make use of this chance to strengthen the status of super power among the European countries. As before the Second World War, Britain was one of the powerful countries in the world. U.S. wanted to replace Britain s status. Thus, in the post-wwii economic recovery, U.S. assisted Britain in the recovery and helped Britain recovered in the worse situation. From the role of U.S. in helping Japan, politically, the main aid was the ruling of S.C.A.P. During 1945 to 1951, S.C.A.P. was lead by the American soldier, General Douglas Macarthur, to carry out reforms recovering Japanese s economy. The important assistance was the signing of the Constitution of Japan. The Constitution was to assist Japan to form a democratic government. By this way, it can help Japan to recover more rapidly instead of the ruling of the Emperor. The constitution also stated that the Emperor as a symbolic leader of the country only and the real power was taken away from the Emperor. Thus, Japan can set up a democratic government in order to facilitate the economic recovery. The S.C.A.P government carried out economic reform to dissolve the zaibatsu, which once dominated Japanese economy. It adopted the Deconcentration Law 2, 1 P.189 Reischauer Craig, Japan: Tradition & Transformation 2 P.221 Exploring World History 4
which helped to prevent monopoly and capital accumulation. During the S.C.A.P. period, U.S. actively interfered in Japan s economy. Fist of all, U.S. provided a stable supply of raw materials. In 1947, Japan imported large amount of oil and cotton from the U.S. Secondly, U.S. issued Nine principles to stabilize Economy. It was to curb the inflation. Moreover, in 1949, U.S. announced the Dodge Plan, which fixed the exchange rate between Japanese yen and US dollars at about 360 to 1 3. A stable exchange rate helped to create a good investment environment in Japan. Lastly, U.S. provided a large sum of loans of about US$2 billion for rebuilding Japan. This laid the good foundations for Japan s future economic recovery. In Britain, there was no direct aid in the political aspect. U.S. mainly focused on the economic aids to Britain. For example, U.S. had set up some economic plans to help Britain s recovery. Like the Marshall Plan and European Union. U.S. aimed to help these countries to recover. They had minor aid on the political aspect to Britain. Unlike Japan, Britain was the allies to U.S. and there was no need to interfere the internal political structure. During 1945 to 1951, in the economic aspect, the SCAP government carried out agricultural reforms. The Farm Land Reform Law was passed, under which the government bought lands from landlords and sold to tenant peasants at a cheap price. By 1950, 90% of peasants in Japan had their own land 4. The US also introduced new farming techniques and chemical fertilizers to Japan. Agricultural production thus increased much before. In Western Europe, U.S. set up a Marshall Plan to assist Britain through the economic aspect until 1951. Marshall Plan is the European Recovery Program that founded by the U.S. to rebuild and create a stronger foundation for the allied countries of Europe and repelling communism after World WarII. In the war, all the European countries suffered the huge damage by the other countries. They were difficult in recovering the economy by cooperating each other because they needed to concern the individual s recovery. With the setting up of Marshall Plan, it erased the tariff trade barriers and set up a organization to cooperate the trading activities among the countries. 5 They also adopted the lassiez-faire policy to let the industrial activities to enjoy a better freedom to gain more without any restriction. U.S. would spend about US$13billion on helping the European countries and the countries receiving US aid would buy a certain amount of American goods. The control of foreign exchange should also be cancelled or relaxed. 6 It can help you to rebuild the economics and 3 p.222 Exploring World history 4 4 p.221 Exploring World history 4 5 P.187 Exploring World history 5 6 P.187 Exploring World history 5
raise the living standard. The production rate can be increased. Thus, Britain could enjoy a rapid economic growth in this period of time. In the post SCAP period after 1952, U.S. provided military assistance to Japan in order to aid Japan s economy. U.S. had signed the Mutual Security Pact with Japan that Japan could not form a national army. It was to prevent the idea of militarism would grow up again and the Japanese s army will invade the other countries. U.S. army thus continued to station in Japan in order to protect Japan against any attack. On the other hand, Japan could save the cost in building up her own army and buying weapons to strengthen the force. The agreement also stated that Japan could only set up a Self Defense Army to maintain safety in their country. The Self Defense Army could send to international places to work for peacekeeping force. The scale of the army also restricted in the agreement. Japan thus can put the money in recovering the economy instead of the military uses. In Britain, U.S. provided indirectly aid through UN organizations. Even before the end of the Second World War, the Allies had already set up some organizations to offer financial assistance to the countries in need. These organizations, such as the UNRRA, the IMF, the World Bank, became parts of the UN later, and they provided much help for the European countries. 7 During the post-wwii period, while much of Britain and France lay in ruins and the USSR had problems of her own, the aids given by these organizations mainly came from US. U.S. also set up NATO in Europe to aid in economic and military aspects. By carrying the cooperative alliance, U.S. can share the burden of the NATO power. 8 The European countries needed not to focus on the military recovery instead of focusing on economic recovery. It hoped to bring another Golden Summer in Europe. U.S. also exported some technology to Japan and developed as a trading partner. Due to the technology innovation in the U.S., they successfully discovered many new technologies that can be used in the military and production aspects. Like in military aspect, it discovered the atomic bomb. On the other hand, the production aspect, it founded the massive production and other scientific innovations to limit the release of toxic pollutants. There were also some domestic products like cookers, refrigerators, TVs, and computer s production technologies were exporting to Japan. Japan not only can enjoy a higher standard of living, but also can use the technology to discover more diversified products to export to other countries so as to earn the income. With the continuously trading activities and no tariff barriers, both of them can enjoy a high return at all. U.S. helped Japan to change the living style with more modern technology are imported. Japan s economy can be thrived again. 7 P.186 Exploring World history 5 8 p.176 Jack & Watson M.A, Success in British History since 1914
Britain also cooperated with the U.S. to develop as a partner to compete with the European countries after 1951. The Marshall Plan ended in 1951. Afterwards, the role of the US changed from an aid provider to both a trade partner and competitor. On one hand, US capital continued to flow into Europe, as many American companies set up their branches there. European countries continued to import goods and advanced technology from the US. On the other hand, some European countries formed the European Economic Community in the 1950s. They both can gain from each other. Britain can receive U.S. capital aid and be a trading partner with U.S. More countries joined to strengthen the effectiveness of this organization. U.S. provided an overseas market for Japanese s goods to sale. Due to the economic recovery in the other countries, they imposed a high tariff on the foreign goods in order to protect their local products as well as gained more income. Japan also suffered from the high tariff rates. As Japan s commercial and industrial activities developed very rapidly, large amounts of products did not have a market to sale. At this time, U.S. allowed Japanese s products to enter their market in a lower tariff rates. It was to support Japan s industrial development. U.S. paid many efforts to revive Japan s economy. However, this action aroused some local American producers discontented. In Britain, she cooperated with the European countries to carry out the Marshall Plan. After the launch of the Marshall Plan, Britain, France and other European countries held a meeting to discuss how to make use of the financial aid from the US. They set up the OEEC to distribute the aid, and to encourage trade and reduce tariff barriers among themselves. Thus, both U.S. and Britain cooperated fully with the OEEC to distribute the aid. Britain can receive aid from the U.S. There are some internal reasons for Japan and Britain to recover from the heavy destruction in Second World War. In Japan, Japanese people were widely known as hard working and willing to acquire new knowledge. They had been keen on absorbing foreign cultures and new knowledge. For example, they used the knowledge in order to develop the industries of chemical products, cars, semi-conductors, and television games. In addition, they had a own style of management that a life long employment system. The employees were more willing to work and increased the work efficiency. In Britain, Britain not only received the aid from U.S. but also cooperated with the European countries. Britain joined the European Economic Community in 1973 to remove tariff barriers between its member states and impose a unified tariff on all foreign trade. Also, she joined the European Free Trade Association in 1960 after she signed the Convection of Stockholm 9 with the other European countries. In 1973, 9 p.199 Exploring World History 5
Britain had joined the European Community and thereafter joined the European Union in 1993 to cooperate with the European countries to build up a strong and wealthy Europe. Comparing the US in aiding Japan and Britain, both received much assistance, especially Japan, the setting up of the SCAP. US aimed to keep Japan as a base to counteract the communism from USSR and North Korea. On the other hand, assisting Britain is wanted to show the great power of US and found a trading partner. From the other point of view, without US, the Western Europe and Japan would not recover so quickly. US paid many efforts in recovering these countries despite the communism threat. Bibliography W. F. Wong, New Essential Certificate History Theme A W. F. Wong, New Essential Certificate History Theme B LING KEE, Exploring World History 4 LING KEE, Exploring World History 5 Reischauer Craig, Japan: Tradition & Transformation Jack & Watson M.A, Success in British History since 1914 Comment: The report reflected eagerness to tackle the key word role, but comparisons were generally weak. Irrelevancies such as discussion of reasons and functions, and factual errors could be easily found. 評語 : 有意回應關鍵詞 角色, 惟所作比較一般較弱 原因 作用等與題旨不相干的內容俯拾皆是 評級 Level: L2 評分 Marks: 7