Obviously the movies made in America have had an enormous effect on

the British way of life. For a number of reasons the effect has not

been altogether good. Accuracy in portraying the American scene is not

one of Hollywood's strong points. A couple of generations of young

Britons matured nursing an idealistic view of the United States as a

wonderland where hippy stenographers lived in high-ceilinged houses,

wore luxurious clothes, drove big, powerful cars, and loved big,

powerful men. There was almost invariably a happy ending to the minor

difficulties that beset hero and heroine of an American film.

Realism was restored to some extent by the advent of the American

soldier. Very few of the GI's resembled Mr. Robert Taylor, and their

backgrounds were quite different from those portrayed on the screen.

There were, of course, some fast talkers who could and did make a pig

farm in Secaucus sound like a ranch in California, but, on the whole,

the American soldiers came from civilian surroundings no more exciting

than Leeds or Bristol. The movie-going public now views pictures about

home life in America with a more skeptical eye.

The series of American films about juvenile delinquency, drug

addiction, dipsomania, and other social evils created a problem for

those interested in presenting a balanced view of the United States

to Britons. Great efforts were made by the United States Information

Service to demonstrate that the ordinary American did not begin the

day with a shot of heroin or send his boy to a school that would make

Dotheboys Hall seem like a kindergarten.

These efforts were inspired to some extent by the manner in which the

Communists exploited such films as genuine reflections of life in the

United States. Both the comrades and the USIS were wasting their time.

The British public can be agonizingly apathetic, but it is not stupid.

I never met anyone who thought these films represented the real America

or who believed the Communist contention that they did. The fact is

that the ability of the United States to make and show such pictures

testifies to the strength of America. When the Russians produce an

epic about the slave labor that built the White Sea-Baltic canal or an

exposé of the corruption that riddled Soviet industry in the war and

immediate post-war years, we can begin to worry.

The theater since the war has exercised an important influence in

bringing America to Britain. Starting with _Oklahoma_, a series of

Broadway musical shows dominated the London stage for a decade. One

of the minor occupations of British critics is grumbling about the

shortage of "real" British musicals. But even the grumpiest have been

won over by the music of Richard Rodgers and Irving Berlin and the

lyrics of Oscar Hammerstein II.

British taste is not always in accord with our own. _South Pacific_ was

not the critical success in London that it was in New York. The British

loved _Guys and Dolls_--they had lost their hearts to the late Damon

Runyon in the thirties--but they did not like _Pal Joey_, in which John

O'Hara gave a much more realistic picture of the seamy side of American

life.

But the accent has been on musicals. Very few serious American plays

have successfully invaded London. In this field the traffic seems to be

the other way.

The comics, invariably described in left-wing publications as "American

Horror Comics," have been another medium for the spread of American

culture in Britain. Like the movies, they have their critics, and,

like some movies, they are used by the Communists to demonstrate what

fearful people the Americans are.

The reader will notice that British Communism, although of almost

negligible importance as a political party, is active in promoting

differences between the two nations. The Communists know very well that

the relationship between the United States and the United Kingdom is

the strongest link in the Western chain; if they can break it, the rest

will be easy.

I have been at pains to point out the issues over which governments and

peoples on both sides of the alliance differ and those aspects of our

national behavior which occasionally worry and concern the British.

It should be emphasized that the areas of ignorance in the British

attitude toward the United States are of minor importance compared to

the ignorance of the average Frenchman or the average Indian. British

misconceptions about the United States can be corrected and Communist

attempts to exploit these misconceptions defeated because the British

public does know something about the United States. This knowledge may

be slight, but it is enough to build on.

Over the years there has been a change in attitude on the part of

young people which I find disturbing. When I first came to England

in the late thirties I encountered a good deal of curiosity about the

political and social aspects of the American system. Young people

wanted to know about American opportunities for education, about

technical schools, about the absence of a class system. Today such

interest as is displayed centers mainly upon the material factors in

the United States.

Perhaps what I encountered nearly twenty years ago was the lingering

afterglow of that period in our history when we stood as a promise and

a hope to the peoples of the world. Certainly many of the egalitarian

aspects of American society admired in pre-war Britain have been slowly

introduced into British society. A cynic might even suggest that they

know us better now. At any rate, I meet fewer young people who are sure

they would like to live in America and be Americans.

Ignorance of the United States lies at the root of many of the

criticisms of our country one hears in Britain. This is being overcome

to some extent by the work of the USIS, but the task is a serious one.

Beyond such obvious difficulties as the shortage of newsprint which

limits the amount that responsible newspapers can print about the

United States, there is another important obstacle to better relations.

This is the fact, that although Americans travel to Britain each year

in tens of thousands, the prospect of the average Briton seeing our

country is remote. The British treasury doles out dollars with a sharp

eye on the gold and dollar reserves, and a large percentage of the

transatlantic travelers are businessmen selling British exports to the

United States. This is something, but it is not enough.

The industrial working class is the most numerous and politically

important in Britain. It is also the least informed about the United

States. Scholarships for Oxford and Cambridge students at Harvard

or Princeton and visiting professorships for English dons do not,

as a rule, help this class. The ideal would be an exchange system

under which hundreds of working-class men and women from Bradford,

Manchester, Liverpool, and the back streets of London were given the

opportunity to see America plain. The English Speaking Union in the

United States and the United Kingdom is attempting to bring this about.

Only through such contact, I believe, could the picture of the United

States built up by some Labor Party politicians be erased. There

remains a dangerous lack of understanding not only of our political

system but of what mass production and greater productivity in the

United States have done for the average workingman here. Newspaper

articles, television series, books help, but it is a thing that must be

felt as well as seen. It can be felt only in the United States.

The attention paid to differences and difficulties should not obscure

the value that Britons place on their relationship with Americans.

Materially, Britain's interest in maintaining the relationship is much

the greater; undoubtedly they need us more than we need them. But here

we must remember the national character of Britain. The British have

been an independent people for a thousand years. Even when the fortunes

of the nation have been at their lowest ebb, the people have been

outspoken in defense of what they considered their rights. The earliest

Continentals who traveled to England lamented the blunt independence of

the yeomen and the absence of subservience among the noisy city crowds.

Some sociologists have concluded that all this has changed and that

the industrial revolution and other social changes have transformed

the British from the rowdiest and most belligerent of nations into

law-abiding conformists. The national boiling-point, they report, is

high.

Certainly a superficial view of the British working class in its high

noon of full employment, security, high wages, and new housing would

seem to confirm this conclusion. Personally, I doubt that the turbulent

passions which sent Britons out to singe the beard of the King of Spain

and to make rude noises when Hitler proposed peace in 1940 are spent.

Phlegmatic, often apathetic, sentimental but not emotional, they are

a people capable of great outbursts of political action. They should

not therefore be considered a people prepared to follow docilely and

blindly where the United States leads. The failure to recognize the

presence in British character of this fundamental, unruly independence

even when it was flourished in their faces is one of the principal

reasons why President Eisenhower and his administration were surprised

by Britain's intervention in Egypt in the autumn of 1956. Granted that

the President was involved in the election campaign, it is mystifying

that a man of his experience in dealing with the British failed to see

the signs pointing toward independent action.

As early as August of that year letters in _The Times_ urged an

independent course for Britain and France in the Middle East. One

letter signed by Julian Amery, then a Conservative back-bench Member

of Parliament, ended with the reflection that if the two countries

followed such a course and took action independently of the United

States, it would not be for the first time. That _The Times_ would

give space to letters of this sort was a sign that the Establishment

recognized the ideas they contained. In September, when the Chancellor

of the Exchequer visited Washington, he made it clear to the most

important of his hosts that Britain would not take the Egyptian seizure

of the Suez Canal lying down--that if this was to be a struggle for

Britain's existence, his country would prefer to go down with the guns

firing and the flags flying. During that same month Sir Anthony Eden

had written to President Eisenhower in terms which to anyone familiar

with British official phraseology said that if Britain did not get a

satisfactory settlement of its difficulties over the Canal through

the United Nations, other action would be necessary. In speech after

speech, especially at the Conservative Party Conference on October

13, the leaders of the government carefully stated that they did not

exclude the use of force as a means of settling the Suez problem.

The British government badly miscalculated the Eisenhower

administration's reaction to intervention in Egypt. It expected

benevolent neutrality from a trusted ally. It got pressure and

criticism. But this miscalculation may have been natural under the

circumstances, for it can be argued that Britain did not expect the

United States administration to be surprised. It had, after all, given

abundant direct and indirect warnings that force might be used as a

last resort. How much of the administration's anger, one wonders,

was based in the realization that it had been told what was going to

happen--if only it had stopped to read again and think?

British diversions from co-operation in policy over Suez or anywhere

else are, to a considerable extent, the result of the circumstances

governing the existence of the United Kingdom--circumstances that are

as different from our own as could be imagined. Here is an island

absolutely dependent on world trade. Westward lies the continental

United States, with a continent's natural resources at its disposal--an

almost completely self-sufficient power. The difference is inescapable

and permanent. We must expect the British to react sharply whenever a

vital part of their trade is endangered. In 1956 the harsh equation was

"Suez equals oil, oil equals British production, British production

equals the existence of the United Kingdom." Likewise, we must expect

the British to expand, within agreed limits of strategic restrictions,

their world trade. This is particularly true of trade with Communist

China.

In this connection we might remember that, to the British, diplomatic

recognition is not a mark of approval, and that if there is a

possibility of dividing the Soviet Union and the Peiping regime, it

can be exploited only through diplomatic channels. Diplomatic attempts

to wean China away from Russia may fail. But they are worth trying.

Can they be tried successfully without the co-operation of both the

United States and the United Kingdom? I think not. In any case, the

task this generation faces of preserving Western freedom in defiance

of the Communist colossi is difficult enough without discarding this

diplomatic weapon.

An alliance flourishes when it is based on realism. Realism involves

knowing your ally and understanding his motives. In war the strategic

reasons for an alliance are laid bare; the motives are there for all

to see. In peace, when international relations are infinitely more

complex, the task of maintaining an alliance is consequently more

difficult. In this chapter I have cited salient aspects of American

political life and government policy which have irritated and angered

the British. The differences over the Suez crisis were the last and

most important of these. That issue generated a great deal of anger,

and some harsh and brutal truths were spoken on both sides. I think

that from the standpoint of the future of the alliance this was a good

thing. It forced the British, I believe, to adopt a more realistic

attitude toward the United States and United States policy, and it will

lead them to take more, not less, diplomatic initiative in the future.

There will be other differences in foreign policy between the two

countries, for differences are inevitable in the relationship between

two parliamentary democracies. Indeed, they are a strength. It is

because the British are an independent, outspoken, hard-headed people

that they are good allies. It is because British governments think for

themselves and enjoy the services of an experienced, incorruptible,

intelligent civil service that their support is welcome and necessary

in the contest with the East.

And we know--at least, we should know--that if the worst comes the

British are stout fighters, ready, once every effort to preserve peace

has failed, to fight with all they have and are.

I carry with me as a talisman the memory of a conversation at Supreme

Headquarters, Allied Powers Europe, during the darkest days of the

war in Korea. An American general officer, a man of the highest

professional qualifications, suggested to a small, intimate group

that, with more and more American power diverted to the Far East, the

Russians might jump in Europe.

"It will be pretty tough for you people," he told a British lieutenant

colonel, an amiable, rather rakish character. "They'll offer you a

chance of getting out. If you don't take it, they'll tell you they'll

blow London and half a dozen other cities off the map. They'll probably

tell the French the same sort of thing. What do you think your people

will do?"

"What do you think we'll do?" the lieutenant colonel answered. "We'll

tell them to go to hell."

Beneath the political bickering, the unrelenting self-criticism, the

pessimism there exists now, as there did in 1940, a fiery spirit. The

British will never be vassals. Nor will they ever be easy allies. But

if this alliance fails, there is little left on which an enduring peace

can be built.

[Illustration]

X. _The British Economy and Its Problems_

_Annual income twenty pounds, annual expenditure nineteen nineteen

six, result happiness. Annual income twenty pounds, annual expenditure

twenty pound ought and six, result misery._

CHARLES DICKENS

_It would be madness to let the purposes or the methods of private

enterprise set the habits of the age of atomic energy._

HAROLD LASKI

[Illustration]

We must now take a closer look at the British economy as it is today.

This is a big subject, one well worth a long book. It is my purpose

in this informal estimate of our ally to sketch the fundamentals of

the present economic situation and to deal briefly with some of the

factors in it. Earlier we have encountered the Trades Union Congress

and the emergence of a new working class. We have seen that Britain is

changing behind the mask of tradition. In this chapter we will see that

the change in the national economy is progressing perhaps even more

rapidly than the change in the structure of society and politics. And,

of course, all three changes are closely related and interdependent.

The British Empire, which half a century ago stood at the apex of its

economic power, was built on coal. Largely because of the extent of her

coal resources, Britain got a head start in the industrial revolution,

which originated in England. An organized coal-mining industry has

existed in Britain for over three hundred years, or three hundred years

longer than in any European country. Not only was there enough coal to

make Britain the world's workshop, but until about 1910 British exports

dominated the world export market. In the peak production year of 1913

the industry produced 287,000,000 tons, exported 94,000,000 tons, and

employed 1,107,000 workers. Contrast these figures with those for 1955:

221,600,000 tons produced, 14,200,000 tons exported, 704,100 workers.

Three centuries of mining means that the majority of the best seams

are worked out. Each year coal has to be mined from deeper and thinner

seams. Each year the struggle to raise productivity becomes harsher.

There are huge workable reserves; one estimate is 43,000,000,000 tons,

which, at the present rate of consumption, is more than enough to last

another two hundred years. But this coal will be increasingly difficult

to mine. Moreover, certain types, such as high-quality coking coal,

will be exhausted long before 2157.

In the reign of King Coal all went well. Britain built up a position in

the nineteenth century which made her the world's leading manufacturer,

carrier, banker, investor, and merchant. By the turn of the century,

however, other nations, notably the United States and Germany, were

challenging this position. Nevertheless, Britain was able to withstand

competition up to the outbreak of World War I through her huge exports

of coal and cotton textiles and through her ability to take advantage

of the general increase in world trade.

Coal and the industrial revolution, it should be remembered, gave

Britain something more than a head start in production: they enabled

her to train the first technical labor force in the world. The traveler

in Eastern Europe, the Middle East, and Asia will soon realize that

the British Empire and British influence of half a century ago were

built not on gunboats and redcoats but on the products of British

factories and on the bewhiskered expatriates, many of them Scots, who

tended locomotives in Burma and sawmills in South America. They, too,

as much as the booted and spurred heroes of Kipling, were builders of

empire. This advantage, at least, Britain has not lost. Today she still

possesses a large force of highly skilled labor.

The economic problems that developed into a whirlwind in the forties of

this century first became serious in the years after the close of World

War I. British textiles had to compete in Asia with textile products

from India and Japan which were produced at a much lower cost because

of low wages. Oil and coal from new European mines challenged Britain's

lead in coal exports. At the same period there was a fall in the demand

for many of the heavy industrial products that British factories had

supplied to the rest of the world; locomotives, heavy machinery, cargo

ships. The politico-economic dogma of self-sufficiency developed

in nations that for long had been British customers. They began to

protect their own growing industries with tariffs, quotas, and other

restrictions.

But the effect on the British economy of this decline in exports was

cushioned by income from investments overseas and by a substantial

improvement in the terms of trade. During the twenties and early

thirties British industry began to contract for the first time in

centuries. Unemployment averaged 14 per cent between 1921 and 1939.

By September 1939, however, the economy, stimulated by the armament

program, increased production, and greater industrial investment at

home, began to improve. Britain faced the Second World War on a secure

economic basis. Indeed, there were persuasive gentlemen in the London

of that Indian summer of peace who tried to persuade you that economic

strength alone could win the war.

When Americans think of the effect of World War II on Britain we are

apt to think in terms of bomb damage and ships sunk. Certainly these

were important parts of a generally disastrous picture, but the whole

is much more impressive than the parts.

The inability to continue industrial maintenance and make replacements

under the hammer of war, shipping losses, and bomb damage ran down

the British economy by about £3,000,000,000. At the present rate of

exchange this amounts to $8,400,000,000. The present cost of rebuilding

ships and houses and factories is, of course, infinitely higher due to

the upswing in labor costs and material prices since 1945.

This loss was accompanied by a drastic change in Britain's world

trading position. To begin with, she lost almost all her overseas

assets--those investments which had cushioned the shock of the

falling export market and whose income had largely paid for imports.

The terrible appetite of war--a ship torpedoed, a division lost, a

factory bombed--devoured them. Over £1,000,000,000 worth of overseas

investments ($2,800,000,000 at the current rate of exchange) were

sold to pay for war supplies. Of this amount, £428,000,000 (about

$1,198,400,000) represented investments in the United States and Canada.

Yet even this expenditure of the carefully husbanded investments, the

results of thrift and financial foresight, did not suffice to pay

for nearly six years of war. Britain also accumulated overseas debts

to the amount of £3,000,000,000, or, at current rates of exchange,

$8,400,000,000. When the money was borrowed, the pound sterling was

pegged at $4.03 and the dollar equivalent of the external debt was

closer to $12,000,000,000.

The emphasis on armaments and the priority given arms-producing

industries, the arrears of industrial maintenance and replacement, the

concentration of manpower in the services and industries of national

importance for the winning of the war, and the shortage of shipping all

reduced Britain's export trade during the war years. By 1944 exports

had fallen to less than one third of their 1938 volume.

This meant that, in some cases, nations whose economy had been less

strained by the war were replacing British sellers in these markets.

In other instances, nations long dependent on British exports began to

make their own products. When the British were prepared to return to

normal export trade, the markets were not so extensive as they had been

before the war.

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