The Pacific Dominions and Sterling

Abstract

Australia and New Zealand were little burden on Britain financially during the Second World War. Britain showed a great willingness to support the two economies in 1939–1941, a policy that paid rich dividends when, after American troops were stationed there, the Pacific Dominions became an important source of US dollars. Australia and New Zealand repaid British loans and took on disproportionate Reciprocal Aid (reverse Lend-Lease to the USA) provision, all of which redounded to the UK’s benefit. Furthermore, this chapter demonstrates how a prevalent perception that the UK was always the provider for the poor Pacific Dominions was slowly eroded during the conflict. Johnston argues that the Pacific Dominions had a hitherto unrecognised role of significant importance to Britain’s financial war effort.