Britain paid in the form of non convertible s terling

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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...
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