UK Foreign Policy and the Joining of the European Community in 1973 - Case Study Example

STUDENTS FULL NAME PROFESSOR’S NAME AFFILIATED INSTITUTION DUE DATE OF ASSIGNMENT UK FOREIGN POLICY AND THE JOING OF EUROPEAN COMMUNITY IN 1973 Immediately world war ll was offer Britain enjoyed its powers as a super power, which placed it at the level it was in 1919. It enjoyed her powers on the international stage and played a strategic role as the main ally of the United States. The British Empire was one of the largest economic blocks in the world as a result its sterling pound was the most preferred mode of international money exchange. (Graham 1990) Britain enjoyed a prestigious position of being the superior militarily in European and by extension the world. Because it was an island and developed its navy way before other nation could build their own. Hence, Britain explored the world and conquered other nations on the process expanding the British Empire. Its industrial sector was also highly advanced than other nations in the world, though it was a net importer of agriculture commodities. (Sutcliffe 1997) The British foreign policy approach was based on, the fact that it was the only European country that was never invaded, and the policy makers thought that Britain occupied a special place in the world affairs, even though her influence had declined. By being undermined by United States, its most trusted ally, which intervened and forced the British government to withdraw from the Suez, but not until after it had placed sanctions on British government, that affected its currency, the British pound lost value and the country experienced stagnation and inflation. The emergency of European community (EC) whose economy was growing above the world average and resultant world economic crisis worsened the situation in Britain. (George 1994) Thereafter, United States withdrew from the world stage to concentrate on the Vietnam War, leaving the British to take charge, but because of the weakening of the influence of the British government on the world affairs. Britain was forced to concentrate on engaging the United States by persuading it from withdrawing from the international stage. As a result, it was preoccupied in making foreign policies that would prevent the United States from withdrawing. Through the influence of Winston Churchill, the British government changed its foreign policy to be the mediator between Europe and the United States. Churchill formulated “a policy based on three circles, where the United States was one of the special circles, the other were Europe and Britain as the centre of the circles.” This was in response to the growing EC powers, which the British government wanted to act as ago between the United States and the European economic block. (Camps 1964) Churchill’s speech at Zurich in 1946, he urged “France and Germany to take the leading role in forming a united Europe, but he was clear that Britain will not be a part of it” confirming what he had earlier indicated in an article. (Gilbert 1996) Britain never wanted to join the European countries in forming a united community, because it risked losing its status on the world stage if it did not become its leader. Because it was unlikely to its leader as the French president, Charles De Gaulle opposed the entry of Britain into the European community citing the power struggle that would rise between Britain and France. It aimed to strengthen its economic and political influence on the international stage, despite the fact that most of its colonies had declared independence, and due to the economic crisis that the government was facing, the government responded. In 1945, with massive reforms taking place in Britain to improve the economic situation, where industrial nationalization was so popular that it had support from the entire political divide. In addition, the following election of 1951, there was debate about forming the United Coal and Steel Company in Europe. Though the motion was defeated in the House of Commons with the support from both political parties, the motion was rejected because the British government never wanted to lose control over nationalized industries to Europe. In 1960, Britain was the largest industrialized country in Western Europe, but the introduction of, the National Health Service Scheme, proved too expensive for the government to maintain. It drained most of the revenues generated through industrial sector. However, this had an impact on foreign exchange reserve of Britain in turn the balance of trade was not in favour of Britain, as it was a large net importer of agricultural commodities and the non-cooperation of its former colonies in supplying it with cheap commodities. In 1967, there was a major deficit in the budget for the purchase of agricultural products, complicated by weak export base. (George 1994) In addition, in 1969, numerous strikes took place further weakened the economic power of Britain and the devaluation of the sterling pound by the government made the recover impossible in the short term without joining EC. Britain abandoned its role in the Suez conflict, further indicating its weakness to control its domestic affairs these lead to the decline of its influence in the international stage. Out of fear of being rendered irrelevant in the world arena it tried to form an alternative block as earlier as 1959, the British attempted to form European free trade area. This failed at its infancy, because the countries that joined it were not adding much value to British economy as compared to the European community. (Johnson 1969) Britain was in denial of its failures that it never wanted to join the EC, with the treat of the United States sidelining it in favour of the wider EC, Britain was in panic and started attempting to join the EC. By the end of January 1960, the Foreign Secretary, Mr. Selwyn Lloyd, told the Consultative Assembly of the Council of Europe “Britain had made a mistake in not joining the ECSC. Britain belonged to Europe, as well as to the Commonwealth and Atlantic alliance.” With the mood of pro-European gaining momentum, the United States supported the British government to join the EC. Therefore, in 31 July 1961, Prime Minister Harold Macmillan, in his speech to the House of Commons indicated the desire of Britain to apply for membership to the EC. (Weigall & Stirk 1992) The first application was submitted on August 9 1961, though the French president Charles De Gaulle vetoed the decision. In 1963, to reject the Britain application, As Anthony Sutcliffe put it: "Macmillan's main tactic was to establish an understanding with Charles De Gaulle ‘the French president since 1958’ whereby both countries, with the support of the USA, would sustain each other's sovereignty and establish themselves as the joint leaders of Europe. Macmillan's big hope was that an offer of nuclear weapons co-operation to De Gaulle would prove decisive. Unfortunately, before the end of the negotiations Britain had agreed to accept an American offer of Polaris missiles. With De Gaulle trying to establish French, and ultimately European, strategic independence from the USA, the British offer was now worthless.” (Sutcliffe 1997) When the labour party, came to power in 1964, Prime Minister Harold Wilson made the second attempt in 1967, to apply for membership, which again the French president Charles De Gaulle vetoed. Though in the year 1969, Charles De Gaulle resigned as the French President, Georges Pompidou assumed the French presidency, and in 1969, at the meeting in Zurich, the French president opened doors for new membership, which the British government took advantage of and applied. In 1971, at a summit the British Prime Minister and the French president struck up a good working relation, of which the government of the Prime Minister Heath took advantage of and thereafter applied for membership, which was accepted in 1973. (Young 1993) TWO GAME ANALYSIS LEVEL OF UK FOREIGN POLICY This model proposes the use of two approaches in making foreign policy, that is, the domestic concerns of the public, versus the political implications of joining the EC community. The British government faced the same dilemma as to whether to respect the views of its population or whether to join the EC. The domestic economic situation and the necessity to maintain its world affairs intact played a role in the kind of decisions the government took. At first, the political factors outweighed the economic factors for the British government to decline membership of the EC, but later as the international factors came into play like the isolation by its staunchest ally the United States, it became necessary to align itself with the rest of Europe in order to maintain its status quo with the United States. When the government decided to join the EC, the public opinion was against that move. Therefore, the government first, presented the situation as a political issue to win the support of the public but after it was granted membership, the issues changed to the economic problems that were facing it domestically, to address the needs of the British public. The EC common market presented an opportunity for the British government to use in boosting its economic agendas and as the economy of the six EC members, was growing above the world average at the time, the British government saw an opportunity to reap from this association, though it was reluctant to join it in the first place. Earlier before the economic crisis, the government was heavily engaged in a war at Suez, this had posed many challenges to the economy. This became even worse when the United States intervened by a show its military might in the region. In addition, its speculation on Britain’s currency leads to depreciation of the sterling pound and the eventual withdrawal of the British forces from Egypt. This events lead to the loose of its influence on the international stage, to safe face, and try to redeem itself from this embarrassing situation, the government thought of joining the EC to improve its world image. (Western Europe Since 1945) Through the collapse of commonwealth, Britain lost its major source of natural resources especially the cheap agriculture products that it enjoyed, these lead to high import bill, this affected its economic stability. Therefore, it is urgent need to join the European community to negotiate for concessions on agricultural products, the access to the EC market for agricultural goods weighed in on the British. Heath and Wilson both pressed for preferential access for New Zealand's dairy products and Caribbean sugar. Judith Hart, the Minister of Overseas Development under Wilson, also put fire behind the attempts to aid the developing world. Wilson's government negotiated a rebate formula in Dublin in March 1975. Britain was concerned with the development of a European Monetary System. It had three major components. An Exchange Rate Mechanism, a European Currency Unit, determined by a basket of Community currencies, and a European Monetary Cooperation Fund, which contributed gold holdings in exchange approved in 1978. In addition, implemented one year later, but Britain was alone among the community members not to fully participate, it retains its sterling pound and it does not use the Euro as other community members. (Kennedy & Paul 1981) First, UK was perturbed by the huge sum of its contribution to the budget of the EC. At the time, the qualifiers were that the country had to be a main contributor, had to be at least twenty percent below the average EC rate of growth, and needed to be running a balance of payments deficit. At first Britain was opposed to this criterion of contribution because it placed it as the highest contributor, the British government feared that they might not stand to benefit out of this contribution. Second, the Common Agricultural Policy was a continual affront to the UK, being a system that was purported to cause domestic food prices to rise, as well as sucking up an ungodly proportion of the EC budget, of which the UK was a main contributor. Fred Peart, Minister of Agriculture under Wilson, pursued a European-style policy of quiet concessions in return for real gains for the British consumer. Domestic concern also weighed heavily on the decision to join the community, with the declining economy, the growing public unrest, and the huge inflationary pressure on the sterling pound. This affected directly the living standards of the Britons therefore, the government was forced to apply for membership, so that they could use European as an excuse of their failures in managing the economy, and to stop the number of general protest that were witnessed in the period of 1969. (George & Stephen 1990) PROSPECT THEORY IN FOREIGN POLICY MAKING This model of foreign policy decision making involved a degree of risk taking, in the part of the state that was to make such a policy. In this case, Britain was faced with two choices, either to join the EC or risk losing economic benefits it would gain if it were in the EC common market. On the other hand, the British government risked losing the influence it had on the United States. The issue of Anglo-American relation played a huge role in the foreign policy of the British government, before the Second World War ll, British enjoyed her status as one of the super powers, when the Britain collaborated with the United States to fight the Germans, it hoped to continue occupying the same place after the war. Britain’s hope of regaining its international status were compromised further in 1956 when Britain was caught in the Suez crisis where together with France it seized control of Suez canal from Egypt in direct violation of international law. The United States intervened displaying its military might in the region, and instigate a run on the British pound, that weakened its economy. British were forced to withdraw from the Suez, by instigation on the run of sterling pound, which the government devalued after leaving Suez. Which was a clear indication that the United States did not recognize the especial relationship it had with Britain or would severe its relationship with the British government if it did not conform and respect the sovereignty of other nations. These events forced the British government to join the EC, with a possibility of improving its relationship with the United States and the world. While the United States hoped, its entry would strengthen Europe against the threats of the Germans and communism. In addition, that the British would stir the community toward a more liberal trading policies, which would help it to correct it balance of trade. It therefore supported the British government to join the EC. The status of commonwealth that was originally made up of the immigrant Britons, because of this there were a socio-cultural link between these colonies and Britain. But the collapse of the British Empire by 1970s most of them had been granted independence, where former colonies had been declared independent and the remaining ones were on the process of fighting for their independence. These reduced the work force the British government had at its disposal, which also directly affected the number of military personnel it had to fight its wars. This could be seen when it invaded Suez, the former colonies denounced its aggressions and declined to support it economically and militarily. The failure of its missile test further weakened it military powers, even though it had other nuclear powered missiles they were not enough to give it an edge against its enemies. With these losses, the British government wanted to maintain its status quo in Europe and the rest of the world, this desire leads to Britain government to apply for membership to the EC to maintain its status quo. (Jervis, 1989) In 1965, the tensions of the loss of sovereignty to the EC had eased the temptation toward such diversionary action enhanced by risk-acceptant attitudes in the domain of losses created by a deteriorating domestic situation. Prime Minister, Edward Heath’s government applied for membership to EC so that the modernization and expansion of the British economy would be passed onto the EC. Energy became a prime focus of all parties in the Community. The 1973 Arab-Israeli War was the impetus for the OPEC oil cartel to start an oil embargo, and then to jack up prices astronomically. This was a main cause for the general economic problems of the developed world. Most of the Community members wished to seek a common internal regulation of the Community oil market, a proposition anathema to the UK, which preferred a common external policy. Only just beginning to tap into the oil reserves of the North Sea, Britain had no wish to be forced to supply other fellow members with cheap oil. On the contrary, Britain wished to make as much profit from the world prices of oil as possible. (George & Stephen 1990) This newfound oil, made the British government to distance itself from European community, so that it will not be bound by the treaty agreements to supply subsized oil to the members. However, it desired to join the OPEC cartel and economically benefit from the oil embargo this in turn would help in balancing its trade deficit. COMPARISION OF TWO GAME LEVEL MODEL AND THE PROSPECT THEORY IN FOREIGN POLICY DECISION MAKING. The two level game models relied, on two levels that were, the domestic politics versus the international obligation of the concerned countries. This model suggested that when a state was about to make a foreign policy decision it had to take into considerations the situation at home, how the public would react to such policies and how such the policy would affect the micro and macroeconomics of the country. In this case, Britain was on recession, there was inflation, which affected the strength of the pound, and created a huge trade deficit, and the increased living standard. The attempts of Prime Minister Edward heath, to reform trade unions had caused a lot of upheavals and strikes. Britain’s economy was declining further complicating its problems, there were massive strikes in 1969, the public was protesting about the high rising inflation, the devaluation of the sterling pound, and the rising living standards. The government decided to join the EC in order to shift focus from domestic issues and concentrate on Europe hoping the protests and strikes would die down. The two game level models, takes into consideration the needs of both the public and the government, in that, the British government took all the views of the public and the government in formulating foreign policy. Like the domestic problems would be placed on the shoulders of EC, the modernization and expansion of the economy and the upheavals that were created by the government of Edward heath would be blamed on the EC and on the process ensure the political survive of the government when it came to voting. On the international, stage Britain hoped to maintain a status quo, when it joined the EC it would be the mediator between Europe and the United States. The collapse of the British Empire affected its source of cheap raw materials for its industries, especially the agriculture products, which consumed huge sums of foreign exchange and faced with growing international isolation it risked being isolated. The government took a risk of apply to join the EC with an aim of securing raw materials especially agricultural product on a concessional basis becoming which it would negotiate separately while in the other hand it offers industrial good to EC community. Domestic politics weighed rather heavily on the decision to apply for membership. Note that the Treasury was increasingly anxious that ministers should not choose accession to the EC as an easy escape route to avoid implementing any unpopular but necessary domestic measures to cure the British economic disease o. It was definitely preferred to shift responsibility from London to Brussels for "the inevitable, temporary discomforts which would accompany Common Market membership." Decisions on how to go about the modernization and expansion of the British economy would be forced upon the EC, taking the domestic and political issues off the shoulders of the government. The EC in this way, would make a perfect excuse for domestic ills that otherwise would have been taken out on the government at the ballot box. Joining the EC could also prove politically positive, to cover the attempted trade unions reforms of Prime Minister Edward Heath’s government, which caused great domestic upheaval. His reforms "became the main issues around which political and social divisions crystallized." Joining the community might have offered a new and more successful focus for his regime. "The question of British membership of the EC has been the plaything of party politics." Luckily enough for Heath, the right wing against accession in the Conservative party had been dying out, but the Labour party had no such good fortune. Labour split on the EC both left and right Wilson came out against Heath's terms of entry, but remained in favour of EC entry Heath’s attempted the UK's second application. The prospect theory suggested that whenever a state was to make a foreign policy decision, the risk factor was to major consideration, especially on what the country stood to loss or gain in making such a decision. For example in the case of Britain, the government was concerned with the public sentiments of joining EC, which at the time was negative the public opposed joining the EC for fear of losing their sovereignty. The government was worried about the implications that would occur on the international stage if it were to join and be just a member without taking the leadership of the group. The prospective theorists were worried about the loss of international status of British Empire, the declining of its international influence and the indifferent treatment from its ally the United States. While the prospective theory suggested that, the British government wanted to join the EC so that it could sort out its domestic problems, by passing them onto the EC absolving it from blame. In addition, ensuring its political survival and in the same time they would sort out their international issues by joining EC and becoming its leader, at least it would hold some bargaining powers in the international stage. The prospect theory was so prominent in the minds of the policy makers in that they had lost their international status post world war ll, the isolation by United States, and the former colonies denounced the government when it invaded Suez. The status of the commonwealth countries was rapidly changing, from being exclusively a white man club to being of mixed race. This made the Briton to loss enthusiasm of keeping it together. The British people began slowly to yield to the concept that the Commonwealth no longer belonged to them. Thus, the political elite became less resistant to an effectual distancing from the Commonwealth. Moreover, the United States after undermined it by intervening in the Suez crisis where it sided with the Egyptian government. The United States used its military might to force the British to withdraw from Suez, the international condemnation that followed its aggression, the declining influence of British Empire post war. It saw most British colonies and protectorates awarded independence from Britain, making matters worse for Britain, this was an embarrassing moment for the British government as a result they joined EC to safe face. Domestic fears of loss of sovereignty to the EC had eased as well. In 1965, De Gaulle had caused a stir by boycotting the Council of Ministers. He was trying to thwart an attempt to increase the powers of the European Parliament. By the time of the Luxembourg agreement, he decided that any member could still apply a veto, an important issue to the national-power-minded British, as well as other members. There were good reasons why political reasoning overtook economic rationale in being the primary motivator behind entering the EC, the sense of losing power became the major factor. An agreement reached in 1970 had set out new financial structures of tariffs and Value Added Taxes, which would turn the UK into one of the largest net contributors to the EC budget. The CAP would suck up most of its revenues, whose funds the British would receive little if any. Even before the UK had formally entered the EC, however, economic problems became the central focus of the UK, and this dictated its policies towards the EC for the remainder of the 1970's. Britain was entering just as the world economy was plummeting, and the rocketing economic growth of the EC countries was coming to a grinding halt. The early claims of the dynamic boost the UK would receive were too optimistic. Britain's economic growth was the lowest of the ten members. By the late 1970's, Britain had a persistent deficit with the Community, greater than that with the rest of the world caught in a continual cycle of stagnant growth and rising inflation. Works cited George, Stephen. An Awkward Partner: Britain in the European Community. Oxford: Oxford University Press, 1990. Print Western Europe, Since 1945 A Political History. Essex Longman Group Ltd, 1991. Print Graham A. Government and Economics in the Post War World Economic Policies and Comparative Performance 1945-85, Routledge, 1990. Print George S. An Awkward Partner: Britain in the European Community. Second edition Oxford, 1994. Print Camps M. Britain and the European Community 1955-1963. Princeton 1964. Print Gilbert M. We are with Europe but not of it, linked, but not comprised in the times. 1996. Print Johnson H.G, Pinder J, Swann D, vanMeerhaeghe M.A.G. Economics: Britain and the EEC', Longmans, 1969. Print George S. An Awkward Partner: Britain in the European Community. Second edition, Oxford, 1994. Print Young J. W. Britain and European Unity 1945-1992. Macmillan, 1993. Print Sutcliffe A. An Economic and Social History of Western Europe since 1945. Longman, 1997. Print Weigall D.E. Stirk. The Origins and Development of the European Community', Leicester, 1992. Print Read More