This preview shows page 1. Sign up to view the full content.
Unformatted text preview: m of non-convertible s terling
balances , which m ounted s wiftly. The conqueror was paying the conquered, undercutting the profitability on
which all em pire is founded. Churchill oppos ed this , and wanted to tax India rather than owe it m oney. But he
was overruled by India hands who s aid India would res is t paym ent, and paralyze the war effort. Leo Am ery,
Secretary of State for India, s aid that when you are driving in a taxi to the s tation to catch a life-or-death train, you
do not loudly announce that you have doubts whether to pay the fare. Thus , World War II converted India from a
debtor to a creditor with over one billion pounds in s terling balances . Britain, m eanwhile, becam e the bigges t
debtor in the world. It's not worth ruling over people you are afraid to tax.
6. Why didn't Britain tax India to finance its World War II efforts ?
a .Au s tra lia , C a n a d a a n d Ne w Ze a la n d
h a d o ffe re d to p a y fo r In d ia n tro o p s .
b . In d ia h a d a lre a d y p a id a s u fficie n tly
la rg e s u m d u rin g W o rld W a r I.
c.It w a s a fra id th...
View Full Document
- Summer '14