Churchill and Britain's 'Financial Dunkirk'

At the end of World War II, the UK, on the verge of bankruptcy,was threatened with ‘a financial Dunkirk’. WinstonChurchill was eager to help the new Labour government tacklethis crisis. However, his ability to give such help, in hisposition as Leader of the Opposition, was constrained by importantdivisions within his own party. These caused him considerablepolitical difficulties as 1945 came to a close, prompting amajor Conservative rebellion against his leadership on the questionof the proposed US loan to Britain. Yet, in spite of his discomfitureon this issue in the domestic sphere, he went on, during his1946 trip to the USA, to play a key role in overcoming congressionalopposition to the loan. Moreover, he did so in close collaborationwith Clement Attlee’s government. In reciprocating thespirit of unity that Labour had showed in 1940, Churchill revived,during Britain’s ‘financial Dunkirk’, thespirit and the ethos of the original. Using previously unpublishedevidence, this article tells the story in full for the firsttime.