information:classification, stylistic:style_transfer
United Kingdom

There were political tensions between the two nations regarding Marshall plan requirements. London was dubious about Washington's emphasis on European economic integration as the solution to postwar recovery. Integration with Europe at this point would mean cutting close ties to the emerging Commonwealth. London tried to convince Washington that American economic aid, especially to the sterling currency area, was necessary to solve the dollar shortage. British economists argued that their position was validated by 1950 as European industrial production exceeded prewar levels. Washington demanded convertibility of sterling currency on 15 July 1947, which produced a severe financial crisis for Britain. Convertibility was suspended on 20 August 1947. However, by 1950, American rearmament and heavy spending on the Korean War and Cold War finally ended the dollar shortage. The balance of payment problems that troubled the postwar government was caused less by economic decline and more by political overreach, according to Jim Tomlinson.