A natural harmony? Government, Business and British Interests in Southea4 Asia, 1945-1951

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This thesis seeks to illuminate the nature of the British national interest in Southeast Asia (SEA), as defined and pursued by the Attlee government, 1945-1951. The analysis is undertaken by examining the relationship between government and business in the region, identifying areas of consensus and conflict. It is established that the British government intended to do its utmost to aid British firms in SEA to re-establish their businesses after the disruption to production and trade caused by the war, as a means of protecting its own subjects and assets, and also of furthering British political and commercial interests in the region. However, this was at a time when the need to divert resources to reconstruct and support the domestic British economy made the task of assisting business overseas problematic, to the extent that government's ability to provide material support was limited. Whilst such logistical difficulties were real, it can also be said that differences over the level of assistance to business were heightened by ideological division between businessmen, on the one hand, and government officials, on the other. These themes are explored through an analysis of the interactions of British enterprises which had business interests in Siam (Thailand), Indonesia and Malaya, with the British government and the local British authorities in these countries. This examination takes place against the background of a readjustment in Britain's relations with these countries in the aftermath of the war. Given the urgency of reconstruction at home, the Attlee government was lessening Britain's overseas commitments. In SEA the British government firmly believed economic and social betterment to be pivotal to the task of quickly establishing stability and also, later on, in protecting the region from Communist expansionism. Therefore US cooperation was sought as a source of necessary resources, but at the same time the British were bound to protect Britishbased business interests against US competition, not least because of their valuable impact on the value of Sterling. The Attlee administrations' endeavour to obtain US cooperation however often proved to be ineffective because of the US government's reluctance to be involved in this particular part of Asia. In practice, government assistance to and protection of business were not always possible in the aftermath of the war and firms needed to transform themselves to adapt to new times. Despite this, the two worked closely together and the British government often showed a great willingness to provide moral and practical support for British enterprises. In retrospect, this cooperation only worked where the demands of business did not conflict with the interests and policy of government, and under such circumstances, business was seldom satisfied. Those firms that did survive achieved this primarily by implementing their own strategies and some accomplished a great deal throughout the 1950s and beyond.

Author(s): Jung Young-joo
Year: 2002

Language: English
Pages: 341

Introduction
Chapter 1. The British Government's Assessment of the Value and
Significance of Southeast Asia for the National Interest
1.1. British Interests in Southeast Asia in relation to Britain's National
Interest
1.1.1. Strategic Significance
1.1.2. Economic and Financial Importance
1.1.3. Political Importance
1.2. British Policy in Southeast Asia 1945-47: the Objectives and Aims
1.3. Forms of Cooperation with Other Powers
1.3.1. Resumption of the Colonial Powers and the South East Asia
Command
1.3.2. Cooperation with the United States of America
1.3.3. Expectations towards the Asian Countries and the Commonwealth
1.3.4. Cooperation between the United Kingdom, the United States of
America and the Soviet Union
Chapter 2.
2.1.
2.1.1.
2.1.2.
2.1.2.1.
2.2.
2.2.1.
2.2.2.
2.3.
Regional Policy-Making and Business/Government Relations
The process of Regional Policy-Making
The Metropole: the Colonial Office and the Foreign Office
The Process of Regional Policy-Making in the Periphery
The British Territories: the Malayan Government
Britain and Regional Cooperation in Southeast Asia
The Colonial Office and Regional Cooperation
Regional Cooperation in the Post-War Period: the Foreign Office,
the South East Asia Command, the Special Commissioner, the
Commissioner-General and the Colombo Conference
The Culture and Process of Government/Business Relations
V
Chapter 3.
3.1.
3.2.
3.2.1.
3.2.2.
3.2.3.
3.2.4.
3.2.5.
The Work of Rehabilitation in Malaya
Japanese Occupation and Its Effects on Malaya
The Work of Relief and Rehabilitation in Malaya
The Rehabilitation Work of the British Military Administration for
Malaya
Social Policy and a New Social Partner
The Malayan Union and Rehabilitation Work
Rice Supplies and Goods on a Regional Basis and the Role of the
Special Commissioner
Rehabilitation Work and the Resurgence of the Trade Union
Movement
Chapter 4. Interactions between State and Firm in the Early Years of the
Post-War Period
4.1. Dependencies First Policy
4.2. Interactions between State and Firm with Regard to Early
Resumption of British Business Interests in Southeast Asia
4.3. Rehabilitation of British Business Interests in Malaya
4.3.1. Wartime Planning for the Malayan Extractive Industries
4.3.1.1. State's Wartime Planning in Malaya: Reconstruction,
Rationalisation and Efficiencies
4.3.1.2. Firms' Own Post-War Planning
4.3.2. Rehabilitation Period
4.3.2.1. Inspection of War Damage on the Malayan Extractive Industries
4.3.2.2. Assistance by the British Military Administration for Malaya for
the Rehabilitation Work
4.3.2.3. Rehabilitation of Malayan Extractive Industries and Malayan
Dollar Earning
4.3.2.4. An Examination of Issues Related to Rehabilitation: Lack of
Finance, High Taxation and Provision of Supplies
Chapter 5. State and Firm: The Malayan Case
5.1. Dollar Deficit in the United Kingdom and Colonial Resources
Development
5.2. Interactions between State and Firm during the Emergency
vi
6.1.
6.2.
6.3.
6.4.
Chapter 6. Interactions Between State and Firm During the Attlee
Government: A Comparative Studies on the Cases of British
Business Interests in Indonesia and Siam
The Historical Relations of Indonesia and Siam with Foreign
Business Interests
The Japanese Occupation in Siam and Indonesia
The Case Study in Indonesia
The Case Study in Siam
Chapter 7. Diversification and Flexibility: The Survival of British Firms
in Southeast Asia
Conclusion
Bibliography